DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS Group Company 2019 2018 2019 2018 RM RM RM RM Unutilised tax losses 32,340,232 8,049,114 2,254,065 - Unabsorbed capital allowances 569,552 386,345 43,754 19,247 Other deductible temporary differences 149,800,092 575,467 4,056,348 - 47,709,876 9,010,925 6,354,167 19,247 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. Under the Malaysia Finance Act 2018 which was gazetted on 27 December 2018, the unutilised tax losses in Malaysia will be imposed with a time limit of utilisation of 7 years. Any accumulated tax losses from year of assessment 2018 can be carried forward for another 7 years of assessment. 28. Deferred Tax Liabilities (Cont’d) Deferred tax assets have not been recognised in respect of the following items: Group Number of shares Amount 2019 2018 2019 2018 Units Units RM RM Issued and fully paid: At 1 January 250,000 250,000 1,346,903 1,363,558 Exchange difference - - 3,998 (16,655) At 31 December 250,000 250,000 1,350,901 1,346,903 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. 29. Redeemable Preference Shares 30. Trade Payables Credit terms of trade payables of the Group and Company ranged from 30 to 90 days (2018: 30 to 90 days) depending on the terms of the contracts. FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 169