DESTINI Annual Report 2018

26. Deferred Tax Liabilities (Cont’d) 27. Redeemable Preference Shares Deferred tax assets have not been recognised in respect of the following items: Group Company 2018 2017 2018 2017 RM RM RM RM Unutilised tax losses 29,424,000 28,466,000 - - Unabsorbed capital allowances 3,657,300 4,873,500 - - 33,081,300 33,339,500 - - Deferred tax assets have not been recognised in respect of these items as they may not have sufficient taxable profits to be used to offset or they have arisen in subsidiaries that have a recent history of losses. Group Number of shares Amount 2018 2017 2018 2017 RM RM RM RM Issued and fully paid: At 1 January 250,000 250,000 1,363,558 1,377,287 Exchange difference - - (16,655) (13,729) At 31 December 250,000 250,000 1,346,903 1,363,558 The main features of the preference shares are as follows: (i) The preference shares shall confer a right to a fixed non-cumulative preferential dividend at the fixed rate of GBP0.01 per annum. The preferential dividend shall rank for payment in priority to the payment of a dividend on any other shares of the subsidiary. (ii) The preference shares shall not confer the right to any further or other participation in the profit of the subsidiary. (iii) The preference shares will be redeemed at GBP1.00 each in a date to be determined later but not later than thirty- six (36) months from the date of issuance. (iv) The preference shares shall rank in priority in any distribution of assets in the event of liquidation, dissolution or winding-up of the subsidiary. 28. Trade Payables Credit terms of trade payables of the Group and Company ranged from 30 to 90 days (2017: 30 to 90 days) depending on the terms of the contracts. DESTINI BERHAD ANNUAL REPORT 2018 173