85 / 144
84
Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
8.
INCOME TAX EXPENSE (CONT’D)
Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2015: 25%) of the estimated assessable
profit for the financial year.
A reconciliation of income tax expense at the applicable statutory income tax rate to income tax expense at the
effective income tax rate is as follows:
The Group
The Company
2016
2015
2016
2015
RM
RM
RM
RM
Profit before tax
33,344,738
15,998,086
6,154,262
178,853
Tax at the applicable tax rate
of 24% (2015 : 25%)
8,002,737
3,999,522
1,477,023
44,713
Effect of different tax rates
of other tax jurisdictions
(2,031,679)
(2,442,613)
-
-
Tax effects of:
Non-deductible expenses
1,290,307
2,764,384
988,712
1,226,397
Income not subject to tax
(44,140)
(46,020)
(2,465,735)
(1,271,110)
Utilisation of deferred tax assets
previously not recognised
(1,255,950)
(480,971)
-
-
Utilisation of unabsorbed reinvestment
allowances
-
(407,000)
-
-
Tax incentives
(54,632)
(223,082)
-
-
Income tax exemption
(271,901)
(353,983)
-
-
Deferred tax assets not recognised
for the year
61,977
2,132,632
-
-
Under/(Over)provision in prior years
- Current tax
1,618,565
1,553,391
-
-
- Deferred tax
(1,282,306)
-
-
-
Effect of share of results in associates
26,046
(6,297)
-
-
Income tax expense
6,059,024
6,489,963
-
-
9.
EARNINGS PER SHARE
Basic earnings per share is calculated by dividing profit for the year attributable to owners of the Company by the
weighted average number of ordinary shares in issue during the financial year.
The Group
2016
2015
Profit for the year attributable to owners of the Company (RM)
20,040,231
4,007,044
Number of shares in issue as of January 1
1,053,435,130 1,011,408,160
Effects of:
Treasury shares acquired
(5,301,026)
(4,984,134)
Conversion of warrants
-
34,287,141
Weighted average number of ordinary shares for basic earnings
per share computation
1,048,134,104 1,040,711,167
Basic earnings per ordinary share attributable to equity holders
of the Company (sen)
1.91
0.39
The Group has not issued any dilutive potential ordinary shares and hence, the diluted earnings per share is equal to
the basic earnings per share.
Notes To The Financial Statements
(cont’d)