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Glorious Property
128
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
16 Restricted Cash
Restricted cash comprises (i) funds borrowed under specific borrowings that are subject to restriction of use until
certain prescribed stages of construction works are achieved, (ii) guaranteed deposits for the mortgage loan facilities
granted by banks to purchasers of the Group’s properties, (iii) guarantee deposits for bank loans, (iv) bank deposits
of Shanghai Penghui Property Development Co., Ltd. (“Shanghai Penghui”) for which the usage of funds is subject
to approval requirements under the Shanghai Bay Arrangement (as defined in note 20(a)) and (v) other bank deposits
that are restricted in use for daily operational needs. The components of restricted cash as at 31 December 2011 are
as follows:
GROUP
RMB’000
2011
2010
Restricted funds under specific borrowings and guarantee deposits
for mortgage facilities
218,843
683,204
Guarantee deposits for bank loans
1,900,000
—
Restricted funds under Shanghai Bay Arrangement
—
945,600
Other restricted funds
26,412
55,076
Total
2,145,255
1,683,880
The Company’s restricted cash amounted to RMB200,000,000 as at 31 December 2011 represented the restricted
funds that were placed as guarantee deposit for certain bank borrowings of the Company’s subsidiaries. The
Company has no funds that are restricted as at 31 December 2010.
17 Cash and Cash Equivalents
GROUP
RMB’000
2011
2010
Cash at bank and in hand:
Denominated in RMB
3,139,099
5,784,136
Denominated in US$
21,018
46,681
Denominated in HK$
6,236
4,483
3,166,353
5,835,300
Less: Restricted cash
(2,145,255)
(1,683,880)
1,021,098
4,151,420
Maximum exposure to credit risk
3,106,832
5,833,051
As at 31 December 2011, the Group’s five highest bank balances amounted to RMB2,202,245,000 (2010:
RMB4,947,422,000), representing 69.6% (2010: 84.8%) of the Group’s total cash and bank balances at the balance
sheet date.