MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 311 MISC BERHAD ANNUAL REPORT 2018 310 29. DEFFERED TAX (CONT'D.) Deferred tax assets of the Group: Other payables Tax losses, investment tax allowance and unabsorbed capital allowances Others Total RM'000 RM'000 RM'000 RM'000 At 1 January 2018 (1,765) (152,064) (17,510) (171,339) Recognised in income statement: In Malaysia (18,040) 6,604 (4,899) (16,335) Outside Malaysia 1,373 - - 1,373 Currency translation differences 467 - - 467 At 31 December 2018 (17,965) (145,460) (22,409) (185,834) At 1 January 2017 (7,938) (104,133) (12,912) (124,983) Recognised in income statement: In Malaysia 8,786 (47,931) (4,598) (43,743) Outside Malaysia (482) - - (482) Currency translation differences (2,131) - - (2,131) At 31 December 2017 (1,765) (152,064) (17,510) (171,339) Deferred tax assets have not been recognised in respect of the following items: Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Unused tax losses 6,469,490 6,587,735 6,385,229 6,544,723 Unabsorbed capital allowances 29,773 29,773 - - Others 13,680 13,680 - - 6,512,943 6,631,188 6,385,229 6,544,723 In Malaysia, the unused tax losses can be carried forward and available for use for 7 years starting from the year of assessment 2018. The unused tax losses of the Corporation relate to the loss making non-resident ships and can be utilised to offset against future taxable profits. The unabsorbed capital allowances are available indefinitely for offsetting against future taxable profits of the respective entities within the Group, subject to tax law and tax guidance issued by the tax authority enacted at the reporting date. Deferred tax assets have not been recognised for certain subsidiaries with recent history of losses. 30. DEFERRED INCOME Group 2018 RM'000 2017 RM'000 At 1 January 724,125 846,270 Recognised during the year in income statement (152,220) (138,963) Advances received during the year 97,165 94,141 Currency translation differences 13,598 (77,323) At 31 December 682,668 724,125 Current (Note 26) 70,247 88,748 Non-current 612,421 635,377 682,668 724,125 Deferred income relates to time charter income paid in advance by customers. 31. CASH FLOWS FROM INVESTING ACTIVITIES Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 Purchase of ships, offshore floating assets and other property, plant and equipment (2,292,226) (2,451,405) (481,391) (95,332) Progress payments for finance lease under construction (1,002,725) (1,166,771) (1,002,725) (1,166,771) Redemption of shares in a joint venture (Note 18(a)) 64,548 - 64,548 - Acquisition of businesses (1,197,352) - (1,197,352) - Dividend received from: Quoted and unquoted equity investments 1,715 3,511 1,715 3,511 Subsidiaries - - 936,549 1,201,313 Joint ventures 411,425 439,368 214,800 257,875 Net repayment of loans due from subsidiaries - - 773,260 883,680 Proceeds from disposal of ships, other property, plant and equipment and held for sale assets 282,690 139,889 45,587 987 Proceeds from disposal of a/an: - joint venture - 193,000 - 193,000 - associate - 4,042 - - Interest received 93,762 76,629 35,663 183,774 Purchase of treasury shares (Note 27(i)) (271) - (271) - Net fixed deposit withdrawal 1,631 640 - - Net cash (used in)/generated from investing activities (3,636,803) (2,761,097) (609,617) 1,462,037