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Notes To The
Financial Statements
As at 31 March 2019
27. Deferred taxation (cont’d.)
Deferred tax assets have not been recognised in respect of the following items:
Group
2019
2018
RM
RM
Unutilised tax losses
13,330
13,556
Unabsorbed capital allowances
27,335
24,347
40,665
37,903
The unutilised tax losses and unabsorbed capital allowances of the Group are available indefinitely against future
taxable profit of the respective entities within the Group subject to no substantial changes in shareholdings of
those entities under the Income Tax Act, 1967 and guidelines issued by the tax authority.
However, effective from year of assessment 2019 as announced in the Malaysia Annual Budget 2019, the
unutilised tax losses of the Group as at 31 March 2019 and thereafter will be only be available for carry forward
for a period of 7 consecutive years. Upon expiry of the 7 years, the unutilised tax losses will be disregarded.
Deferred tax assets have not been recognised in respect of these items as they may not be used to offset
taxable profit of other entities in the Group and they have arisen in entities that have a recent history of losses.
Deferred tax liability/(asset) of the Company:
Accelerated
capital
allowances
RM’000
Provision
for liabilities
RM’000
Total
RM’000
At 1 April 2017, as restated
60
(624)
(564)
Recognised in profit or loss
149
5
154
At 31 March 2018, as restated
209
(619)
(410)
Recognised in profit or loss
42
(54)
(12)
At 31 March 2019
251
(673)
(422)
28. Retirement benefit obligations
The foreign subsidiary in Indonesia operates an unfunded defined benefit plan for its eligible employees. The
obligations under the retirement benefit are calculated using the projected unit credit method, is determined
by a qualified independent actuary, considering the estimated future cash outflows using market yields at
the reporting date of high quality corporate bonds. The latest actuarial valuation was carried out using the
employee data as at 31 March 2019.
financial
statements
165