MKH Annual Report 2017

17. LAND HELD FOR PROPERTY DEVELOPMENT (continued) Included in land held for property development are: (i) freehold land amounting to RM169,678,150 (2016: RM169,678,150) which have been pledged for term loan and revolving credit facilities granted to certain subsidiaries as disclosed in Note 28; (ii) leasehold land amounting to RM19,040,009 (2016: RM19,040,009) which have been charged for revolving credit facilities granted to certain subsidiaries as disclosed in Note 28; and (iii) freehold and leasehold land amounting to RM257,621,706 (2016: RM315,394,076) represent entitlements of the landowners pursuant to joint land development agreements to undertake property development projects. The titles to the development land will be transferred from landowners to the property purchasers. 18. DEFERRED TAX ASSETS AND LIABILITIES The Group The Company 2017 2016 2017 2016 RM RM RM RM Deferred tax assets At beginning of year 29,357,648 34,736,511 - 675,830 Recognised in profit or loss (Note 8) 4,575,453 (5,378,863) - (675,830) At end of year 33,933,101 29,357,648 - - Deferred tax liabilities At beginning of year (64,545,058) (47,355,540) (62,926) - Recognised in profit or loss (Note 8) 5,268,338 (6,026,598) (1,400) (62,926) Recognised in other comprehensive income (Note 8) 212,071 (356,408) - - In respect of subsidiaries acquired (Note 30) - (10,955,563) - - Effect of movements in exchange rate 26,926 149,051 - - At end of year (59,037,723) (64,545,058) (64,326) (62,926) Notes to the Financial Statements For the Financial Year ended 30 September 2017 149 MKH Berhad • Annual Report 2017