Bursa Malaysia • Annual Report 2013
126
Financial Reports
9. Income tax expense (cont’d.)
The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December
2013 and 31 December 2012 is as follows:
Group
Company
2013
2012
2013
2012
RM’000
RM’000
RM’000
RM’000
(Restated)
(Restated)
Accounting profit before tax
245,580
215,339
126,369
160,351
Taxation at Malaysian statutory tax rate of 25%
61,395
53,835
31,592
40,088
Deferred tax not recognised in respect of current year’s tax losses
89
488
-
-
Effect of tax rate of 3% on (profit)/loss before tax for
subsidiary incorporated in Labuan
(35)
327
-
-
Effect of expenses not deductible for tax purposes
5,981
5,573
5,181
3,824
Effect of income not subject to tax
(911)
(899)
(36,262)
(33,617)
Utilisation of previously unrecognised tax losses by a subsidiary
-
(28)
-
-
Utilisation of subsidiaries losses under group relief
(205)
(1,139)
(205)
(1,139)
(Over)/under provision of income tax in prior years
(7,434)
622
(2,132)
568
Under/(over) provision of deferred tax in prior years
7,315
(326)
7,192
(309)
Tax expense for the year
66,195
58,453
5,366
9,415
The Group and the Company’s tax charge for the year has been reduced by RM205,000 (2012: RM1,139,000) as unabsorbed losses of certain subsidiaries
are offset against its taxable income. No payment will be made by the Company to its subsidiaries for the surrendering of these tax losses.
The Malaysian statutory tax rate will be reduced to 24% from the current year’s rate of 25%, effective year of assessment 2016.
10. Earnings per share (EPS)
(a) Basic EPS
Basic EPS is calculated by dividing profit for the year, net of tax, attributable to owners of the Company by the weighted average number of ordinary
shares outstanding during the financial year.
Group
2013
2012
(Restated)
Profit for the year, net of tax, attributable to owners of the Company (RM’000)
173,075
150,598
Weighted average number of ordinary shares in issue (’000)
532,373
531,869
Basic EPS (sen)
32.5
28.3
Notes to the Financial Statements
31 December 2013
