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Notes to the Financial Statements20 Taxation (Cont’d)Subject to agreement with the relevant tax authorities, the Group has unabsorbed capital allowances and taxlosses as at 31 December 2004 of $350,000 (2003 - $1,732,000) and $588,500 (2003 - $221,000) respectivelyavailable for offsetting against future taxable profits provided that the provisions of the relevant country’slegislation are complied with. The related tax benefits have not been recognised as there is no reasonablecertainty of its realisation in future periods.As at end of the year, the Company has accumulated tax-exempt profit of $905,256 which are available fordistribution as tax-exempt dividends to shareholders.As the Company has paid taxes in previous years, it has accumulated a Section 44 balance of $1,469,895 at 31December 2004 that can be used to frank dividends. Directors have decided to utilise $1,148,219 from thisaccount to frank the final dividend payment of 5 cents per share less tax of 20%. This leaves a balance of$321,676 for future dividend payment in 2005.21 Dividends2004 2003The Group and The Company $ $Ordinary dividends paid2002 first and final tax exempt dividend of 1.2 cents per sharepaid on 71,983,754 shares - 863,8052003 interim tax exempt dividend of 1.0 cent per share paidon 73,802,454 shares - 738,0232003 second and final tax exempt dividend of 4.0 cents pershare paid on 75,977,954 shares 3,039,118 -2004 first and interim tax exempt dividend of 2.0 cents per sharepaid on 76,297,954 shares 1,525,959 -4,565,077 1,601,828Ordinary dividends proposed2003 second and final tax exempt dividend of 4.0 cents pershare proposed on 74,335,954 shares (Note 5) - 2,973,4382004 second and final dividend of 5.0 cents per share lesstax of 20% proposed on 76,547,954 sharesand rights issue of 38,273,997 shares (Notes 5) 4,592,877 -4,592,877 2,973,438inter-roller engineering limited annual report2004 65