CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Cahya Mata Sarawak Berhad 158 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 22. DEFERRED TAX (CONT'D.) Unabsorbed capital allowances Company RM’000 Deferred tax assets: At 1 January 2015 918 Recognised in statements of profit or loss and other comprehensive income 75 At 31 December 2015 993 Recognised in statements of profit or loss and other comprehensive income (1,030) At 31 December 2016 (37) Deferred tax assets have not been recognised in respect of the following items: Group 2016 2015 RM’000 RM’000 Unutilised tax losses 41,033 37,204 Unabsorbed capital allowances 13,786 4,737 Other deductible temporary differences 4,489 - 59,308 41,941 At the reporting date, the Group has allowances as shown above that are available for offset against future taxable profits of the companies in which the allowances arose, for which no deferred tax assets are recognised due to uncertainty of their recoverability. The availability of these allowances for offsetting against future taxable profits of the respective subsidiaries in Malaysia are subject to no substantial changes in shareholdings of those subsidiaries under the Income Tax Act, 1967 and guidelines issued by the tax authority. 23. INVENTORIES Group 2016 2015 RM’000 RM’000 Cost Raw materials 33,508 38,881 General stores 88,817 79,583 Work-in-progress 56 57 Goods in transit 66 41 Finished goods 12,538 18,118 Completed development units 50,376 7,043 185,361 143,723 Net realisable value Finished goods - 42 185,361 143,765 During the year, the amount of inventories recognised as an expense in cost of sales of the Group was RM429,942,724 (2015: RM677,993,257).