29. DEFERRED TAX (CONTD.) Deferred tax assets have not been recognised in respect of the following items: Malaysian Companies Group Company RM’000 2020 2019 2020 2019 Unused tax losses 161,632 113,109 71,786 57,340 Unabsorbed capital allowances 1,513 405 – – Others 834 2,510 – – 163,979 116,024 71,786 57,340 Deferred tax of 24% 39,355 27,846 17,229 13,762 Unused tax losses At the reporting date, the Group and the Company has tax losses of approximately RM161.6 million (2019: RM113.1 million) and RM71.8 million (2019: RM57.3 million) respectively that are available for offset against future taxable profits of the companies in which the losses arose, for which no deferred tax asset is recognised due to uncertainty of its recoverability. The availability of unused tax losses for offsetting against future taxable profits of the respective subsidiaries in Malaysia is subject to no substantial changes in shareholdings of those subsidiaries under the Income Tax Act, 1967 and guidelines issued by the tax authority. Effective from year of assessment 2019 as announced in the Annual Budget 2019, the unused tax losses of the Company as at 31 December 2018 and thereafter will only be available for carry forward for a period of 7 consecutive years. Upon expiry of the 7 years, the unabsorbed losses will be disregarded. The use of tax losses of subsidiaries in other countries is subject to the agreement of the tax authorities and compliance with certain provisions of the tax legislation of the respective countries in which the subsidiaries operate. 30. SHARE CAPITAL Group and Company Number of ordinary shares Amount RM’000 2020 ’000 2019 ’000 2020 2019 Issued and fully paid up At 1 January/31 December 831,624 831,624 268,074 268,074 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets. ANNUAL REPORT 2020 275 1 2 3 4 5 6 7 8
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