ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 195 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ESR Annual Report 2019 25. CASH AND BANK BALANCES As at 31 December As at 31 December 2019 2018 USD’000 USD’000 Cash and bank balances 816,487 502,056 Non-pledged fixed time deposits with maturity period over three months 881 15,318 Restricted bank balances 21,038 19,294 Pledged bank deposits (note 26) 45,800 44,711 884,206 581,379 The Renminbi (“RMB”) is not freely convertible into other currencies, however, under The PRC’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business. Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances and deposits are deposited with creditworthy banks with no recent history of default. The carrying amounts of the cash and bank balances approximate to their fair values. As at 31 December 2019, the fixed deposit of USD881,000 (2018: USD15,318,000) had a maturity period of over 180 days. The balance was principal-protected and carried the rate of return of 1.56% (2018: ranging from 2.00% to 3.70%) per annum. All pledged bank deposits at 31 December 2019 was denominated in RMB (2018: RMB). Pledged bank deposits earn interest at interest rates stipulated by the respective financial institutions. The pledged bank deposits represent the amounts pledged to secure bank and other borrowings granted to the Group (note 26). As at 31 December 2019 and 2018, cash and bank balances and deposits of the Group and the Company were considered to be of low credit risk and thus the Group has assessed that the ECL for cash and bank balances was immaterial under the 12-month expected credit loss method.