Press Metal Annual Report 2023

Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 250 251 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 11. DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D) Estimation uncertainty and significant judgements In October 2013, PMBTU was awarded Pioneer Status by the Malaysian Investment Development Authority (“MIDA”), which entitled PMBTU exemption from tax for a period of 15 years from 1 January 2013 to 31 December 2027 on 100% of statutory income derived from the production of aluminium products. The measurement of the net deferred tax liabilities of PMBTU amounting to RM305,008,000 (2022: RM270,700,000) is based on the assumptions below: (i) PMBTU will continuously achieve the conditions imposed in the MIDA’s approval to enjoy the Pioneer Status till the maturity on 31 December 2027; (ii) there will not be any substantial changes to the estimated useful lives of the property, plant and equipment of PMBTU nor will there be any significant disposals/write-off of existing property, plant and equipment up to 31 December 2027; and (iii) there will not be any substantial changes to the currently enacted tax rates. Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items (stated at gross): Group 2023 RM’000 2022 RM’000 Tax loss carry-forwards 386,622 363,980 Capital allowance carry-forwards 523 367 387,145 364,347 Deferred tax assets are only recognised to the extent that it is probable that taxable profits will be available against which these assets can be utilised. The tax loss carry-forwards of Group entities (other than foreign subsidiaries) of RM386,622,000 (2022: RM302,078,000) can be carried forward up to 10 consecutive years of assessment (“YA”) following the enactment of the Finance Act 2022 from the YAs as shown below: Group 2023 RM’000 2022 RM’000 YA2018 and prior YAs 4,728 4,728 YA2021 80,509 83,896 YA2022 222,228 213,454 YA2023 79,157 - 386,622 302,078 The other deductible temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits will be available against which the Group entities can utilise the benefits therefrom. 11. DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D) 11.1 Global minimum top-up tax As at 31 December 2023, the governments of the United Kingdom (“UK”) and Malaysia (“MY”) have both enacted new legislation, respectively, to implement the global minimum top-up tax. The Group expects to be subjected to the top-up tax in relation to its operations in both UK and MY. However, since the newly enacted tax legislation in UK and MY will only come into effect in year 2024 and 2025, respectively. Based on the initial assessment carried out as at 31 December 2023, the Group has identified potential exposure to Pillar Two income taxes on its operating arm where effective tax rate is lower than 15% arising from its pioneer status. There is no current tax impact for the financial year ended 31 December 2023. Had the global minimum top-up tax been applied in the current financial year, approximately 89% of the profit before tax of the Group will be subject to this minimum top-up tax. 11.2 Temporary mandatory relief from deferred tax accounting The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. 12. TRADE AND OTHER RECEIVABLES Note Group Company 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Non-current Non-trade Amounts due from subsidiaries 12.1 - - - 88 Loans to a subsidiary 12.1 - - 1,459,776 1,444,545 - - 1,459,776 1,444,633 Current Trade Trade receivables from contracts with customers 1,326,625 1,563,082 - - Less: Individual impairment allowance (14,563) (10,601) - - 1,312,062 1,552,481 - - Amounts due from subsidiaries 12.1 - - 1,386,663 1,458,160 Amount due from an associate 12.1 13,745 11,529 - - 1,325,807 1,564,010 1,386,663 1,458,160 Non-trade Amounts due from subsidiaries 12.1 - - 80,470 93,536 Loans to a subsidiary 12.1 - - 309,182 308,650 Other receivables 12.2 226,250 414,229 - - Deposits 5,391 9,629 181 126 231,641 423,858 389,833 402,312 1,557,448 1,987,868 1,776,496 1,860,472 1,557,448 1,987,868 3,236,272 3,305,105

RkJQdWJsaXNoZXIy NDgzMzc=