Wah Seong Corporation Berhad Annual Report 2018

14 DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) The Group did not recognise deferred tax assets arising from the following temporary differences of certain subsidiaries as it is not probable that future taxable profit will be available against which the deferred tax assets can be utilised in these subsidiaries. Group 2018 2017 RM’000 RM’000 Deductible temporary differences on: - Unused tax losses 214,317 264,518 - Unabsorbed capital allowances 120,934 67,496 - Provisions and accruals 5,246 13,400 - Others 11,460 19,682 351,957 365,096 Deferred tax assets not recognised 87,143 83,845 Under the Malaysia Finance Act 2018 which was gazetted on 27 December 2018, the Group’s unutilised tax losses with no expiry period amounting to RM51,578,000 as at 31 December 2018 will be imposed with a time limit of utilisation. Any accumulated unutilised tax losses brought forward from year of assessment 2018 can be carried forward for another 7 consecutive years of assessment (i.e. from year of assessment 2019 to 2025). 15 INVENTORIES Group 2018 2017 RM’000 RM’000 Raw materials 148,422 126,597 Work-in-progress 96,659 70,747 Manufactured and trading goods 52,192 56,404 Consumables 24,792 14,774 Goods in transit 2,601 21,637 324,666 290,159 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 142