EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 99 notes to the financial statements 31 december 2019 (cont’d) 28. Taxation (Cont’d) A reconciliation of income tax expenses applicable to profit before tax at the statutory income tax rate to income tax expenses at the effective income tax rate of the Group and of the Company are as follows: Group Company 2019 2018 2019 2018 RM RM RM RM Profit before tax 8,290,110 7,934,907 8,015,418 7,717,522 At Malaysian statutory tax rate of 24% (2018: 24%) 1,989,626 1,904,378 1,923,700 1,852,205 Expenses not deductible for tax purposes 648,577 786,016 559,624 694,706 Income not subject to tax (926,761) (1,334,983) (926,761) (1,330,743) Deferred tax assets not recognised during the financial year 52,804 55,172 52,804 55,172 Utilisation of previously unrecognised deferred tax assets (154,879) (137,693) - - Under/(over) provision in respect of prior years - income tax 209,293 41,697 209,292 41,697 - deferred tax - (37,042) - (37,042) Tax expense for the financial year 1,818,660 1,277,545 1,818,659 1,275,995 The Group have unused tax losses of RM1,288,462 (2018: RM1,936,452) available for carry forward, to offset against future taxable profits. The said amounts are subject to approval by the tax authorities. 29. Earnings Per Share (a) Basic earnings per share The basic earnings per share are calculated based on the consolidated profit for the financial year attributable to the owners of the parent and the weighted average number of ordinary shares in issue during the financial year as follows: Group 2019 2018 RM RM Profit attributable to owners of the parent 6,471,450 6,657,362 Weighted average number of ordinary shares in issue: Issued ordinary shares at beginning of the financial year 414,481,950 413,731,950 Shares issued during the financial year 56,622,508 617,397 Less: Treasury shares (3,597,260) - 467,507,198 414,349,347 Basic earnings per ordinary share (in sen) 1.38 1.61