SCC Holdings Berhad Annual Report 2017

SCC Holdings Berhad (511477-A) | Annual Report 2017 67 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (CONT’D) 23. Taxation (CONT’D) A reconciliation of income tax expenses applicable to profit before tax at the statutory tax rate to income tax expenses at the effective tax rate of the Group and of the Company is as follows: Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Profit before taxation 8,573 8,736 4,950 4,156 At Malaysian statutory tax rate of 24% (2016: 24%) 2,058 2,097 1,188 997 Expenses not deductible for tax purposes 247 93 43 12 Income not subject to tax (100) (98) (1,273) (892) Deferred tax assets not recognised during the financial year 52 (114) 49 (115) Under/(Over) provision of taxation in prior years 102 (4) 1 - Under/(Over) provision of deferred taxation of prior years 164 (15) - - 2,523 1,959 8 2 24. Earnings per Share Basic earnings per ordinary share The basic earnings per share are calculated based on the consolidated profit for the financial year attributable to owners of the Company and the weighted average number of ordinary shares in issue during the financial year as follows: Group 2017 2016 RM’000 RM’000 Profit attributable to owners of the Company 6,050 6,777 Weighted average number of ordinary shares: Issued ordinary shares at beginning of financial year 42,776 42,776 Effect of issuance of ordinary shares pursuant to: - Bonus issue 4,278 4,278 - Share split 94,107 94,107 Weighted average number of ordinary shares in issue 141,161 141,161 Basic earnings per ordinary share (sen): 4.29 4.80^ ^ Restated to take into account the effects of bonus issue and subdivision of every one (1) ordinary share held after the bonus issue into three (3) ordinary shares pursuant to the share split exercise which was completed in 2017. Diluted earnings per ordinary share The diluted earnings per ordinary share is the same as the basic earnings per ordinary share of the Group, as the Group has no dilutive potential ordinary shares during the current and prior financial years.