Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 238 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 36. DEFERRED TAXATION (continued) At 31 March 2019, the Group has deductible temporary difference in relation to accelerated depreciation of property, plant and equipment amounted to HK$395,769,000 (2018: HK$356,441,000). No deferred tax asset has been recognised in relation to such deductible temporary difference as it is not probable that taxable profit will be available against which the deductible temporary difference can be utilised. Under the EIT Law of the PRC, withholding tax is imposed on dividends declared in respect of profits earned by the PRC subsidiaries from 1 January 2008 onwards. Deferred tax has not been provided for on the temporary differences attributable to profits of the subsidiaries of the PRC and Australia of HK$3,875,961,000 (2018: HK$3,830,419,000) generated after 1 January 2008 as the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. 37. SHARE CAPITAL Number of ordinary shares of Nominal value HK$0.10 each HK$’000 Authorised 4,000,000,000 400,000 Issued and fully paid: At 1 April 2017 2,238,370,717 223,837 Issue of shares in lieu of cash dividends (i) 51,965,423 5,197 Issue upon exercise of share options at HK$2.55 per share 11,450,000 1,145 At 31 March 2018 2,301,786,140 230,179 Share repurchase (13,619,000) (1,362) Issue of shares in lieu of cash dividends (ii) 62,023,162 6,202 Issue upon exercise of share options at HK$2.55 per share 1,500,000 150 At 31 March 2019 2,351,690,302 235,169 (i) On 8 February 2018 and 9 October 2017, the Company issued and allotted 11,961,510 and 40,003,913 new fully paid shares of HK$0.10 each at HK$4.718 and HK$4.010 respectively to the shareholders who elected to receive shares in the Company in lieu of cash for the 2018 interim dividend and 2017 final dividend pursuant to the scrip dividend scheme announced by the Company on 27 November 2017 and 13 June 2017 respectively. These new ordinary shares rank pari passu in all respects with the existing ordinary shares of the Company. (ii) On 14 February 2019 and 11 October 2018, the Company issued and allotted 16,412,149 and 45,611,013 new fully paid shares of HK$0.10 each at HK$3.262 and HK$4.040 respectively to the shareholders who elected to receive shares in the Company in lieu of cash for the 2019 interim dividend and 2018 final dividend pursuant to the scrip dividend scheme announced by the Company on 28 December 2018 and 3 September 2018 respectively. These new ordinary shares rank pari passu in all respects with the existing ordinary shares of the Company.