Ntegrator International Ltd. - Annual Report 2020

84 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 18. Borrowings (continued) (b) Breach of loan covenants (continued) 31 December 2020 (continued) As at the date of these financial statements, the management has yet to receive the waiver letter from bank. 31 December 2019 There is no non-adherence of covenant clauses noted as at 31 December 2019. 19. Deferred income taxes Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The amounts, determined after appropriate offsetting, are shown on the statement of financial position as follows: Group 2020 2019 S$’000 S$’000 Deferred income tax assets (763) (776) Movement in deferred income tax account is as follows: Group 2020 2019 S$’000 S$’000 Beginning of financial year (776) (785) Currency translation differences 13 9 End of financial year (763) (776) Deferred income tax assets are recognised for tax losses and capital allowances carried forward to the extent that realisation of the related tax benefits through future taxable profits is probable. The Group has unrecognised tax losses of S$17,816,000 (2019: S$10,901,000), capital allowances of S$1,037,000 (2019: S$746,000) and donations of S$498,000 (2019: S$478,000) at the reporting date which can be carried forward and used to offset against future taxable income subject to meeting certain statutory requirements by those companies with unrecognised tax losses and capital allowances in their respective countries of incorporation. 20. Share capital and treasury shares No. of ordinary shares Amount Issued share Treasury Share Treasury capital shares capital shares S$’000 S$’000 Group and Company At 31 December 2020 Beginning and end of financial year 1,065,646,234 (251,000) 26,161 (11) At 31 December 2019 Beginning and end of financial year 1,065,646,234 (251,000) 26,161 (11) All issued ordinary shares are fully paid. There is no par value for these ordinary shares. Fully paid ordinary shares (except for treasury shares) carry one vote per share and carry a right to dividends as and when declared by the Company.