Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 176 F R A S E R & N E A V E H O L D I N G S B H D NOTES TO THE FINANCIAL STATEMENTS 9. INVESTMENT IN A JOINT VENTURE (CONTINUED) SHAREHOLDER’S LOAN On 11 November 2011, the Company entered into a conditional subscription cum shareholders’ agreement (“SSA”) with Frasers Property Holdings (Malaysia) Pte. Ltd. (“FPHM”) (formerly known as FCL Centrepoint Pte. Ltd.) to form a joint venture, via VCSB for the purpose of carrying out a proposed mixed development on the land held under PN 3679 for Lot No. 35 and PN 3681 for Lot No. 37, Seksyen 13, Bandar Petaling Jaya (“PJ”), Daerah Petaling, Selangor (“Land”). The Company and FPHM had both granted shareholders’ loans to VCSB pursuant to the SSA. The loans were unsecured, borne interest at KLIBOR + 1.25% (2018: KLIBOR + 1.25%) per annum, not repayable within the next 12 months and were denominated in RM. On 2 October 2019, the shareholder’s loan was converted to 126,820 RNCCPS at issue price of RM1,000 each. UNREALISED PROFIT On 18 January 2012, VCSB issued new ordinary shares of 499,998 and 500,000 to the Company and FPHM respectively. Consequent thereupon, the Company and FPHM each holds 50% equity interest in VCSB. With the announcement of the completion of the transaction in the financial year ended 30 September 2012, the Company had effectively divested 50% of its interest in the development land in PJ Section 13 and recognised a gain of approximately RM55,292,000. The remaining 50% unrealised profit of RM55,292,000 will be realised upon the disposal of the land by the joint venture or the date on which the Group ceases to have joint control over the joint venture. 10. DEFERRED TAX ASSETS/(LIABILITIES) RECOGNISED DEFERRED TAX ASSETS/(LIABILITIES) Deferred tax assets and liabilities are attributable to the following: Assets Liabilities Net Group 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Property, plant and equipment 228 213 (78,002) (67,226) (77,774) (67,013) Investment properties – 109 (813) (813) (813) (704) Employee benefit plans 9,368 6,587 – – 9,368 6,587 Tax loss carry-forwards and unutilised capital allowances 7,803 4,561 – – 7,803 4,561 Unutilised tax incentives 29,169 35,635 – – 29,169 35,635 Provisions, contract liabilities and others 4,487 5,288 – – 4,487 5,288 Tax assets/(liabilities) 51,055 52,393 (78,815) (68,039) (27,760) (15,646) Set off of tax (44,821) (39,323) 44,821 39,323 – – Net tax assets/(liabilities) 6,234 13,070 (33,994) (28,716) (27,760) (15,646) UNRECOGNISED DEFERRED TAX ASSETS Deferred tax assets have not been recognised in respect of the following items (stated at gross): Group 2019 RM’000 2018 RM’000 Unutilised reinvestment allowances 80,122 80,122 Unutilised capital allowances 6,220 6,220 Tax loss carry-forwards 3,251 3,251 89,593 89,593