Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 92 Notes to the Financial Statements 31 December 2016 (cont’d) 25. TAX EXPENSE (cont’d) The numerical reconciliations between tax expense and the product of accounting profit multiplied by the applicable tax rates of the Group and of the Company are as follows: Group Company 2016 2015 2016 2015 RM RM RM RM Profit before tax 6,974,507 9,652,925 7,426,187 9,650,551 Taxation at statutory tax rate of 24% (2015: 25%) 1,673,882 2,413,232 1,782,285 2,412,638 Tax effects in respect of: Non-allowable expenses 785,444 598,498 547,789 467,720 Non-taxable income (730,746) (679,639) (725,418) (679,639) Tax exempt income under pioneer status (86,533) (177,214) - - Real property gains tax - 109,814 - 109,814 Effect of changes in tax rate - (3,195) - (3,195) Deferred tax assets not recognised - 19,613 - - Utilisation of previously unrecognised deferred tax assets (37,391) (13,310) - - 1,604,656 2,267,799 1,604,656 2,307,338 Over provision of income tax in prior year (66,537) (60,460) (72,102) (63,155) Under/(Over) provision of deferred tax in prior year 42,553 (122,219) 42,553 (120,720) 1,580,672 2,085,120 1,575,107 2,123,463 Tax savings of the Group arises from the utilisation of previously unrecognised deferred tax assets and amounted to RM37,391 (2015: RM 13,310). 26. EARNINGS PER ORDINARY SHARE (a) Basic earnings per ordinary share Basic earnings per ordinary share for the financial year is calculated by dividing the profit for the financial year attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year. Group 2016 2015 Profit attributable to equity holders of the parent (RM) 5,629,762 7,552,104 Weighted average number of ordinary shares in issue 206,865,975 206,768,100 Basic earnings per share (sen) 2.72 3.65