MKH Annual Report 2017

9. EARNINGS AND NET ASSETS PER SHARE Basic earnings per share The basic earnings per share is calculated by dividing the Group profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the financial year. Basic earnings per share are calculated as follows: The Group 2017 2016 RM RM Profit attributable to owners of the parent 128,206,980 205,041,491 The Group 2017 2016 Number of ordinary shares in issue at beginning of the financial year 419,443,984 419,407,284 Effect of exercise of warrants 5,700,105 19,500 Effect of rights and bonus issue* 105,113,048 93,001,916 Weighted average number of ordinary shares in issue* 530,257,137 512,428,700 Basic earnings per share (sen) 24.18 40.01 Diluted earnings per share The diluted earnings per share of the Group is calculated by dividing the Group’s net profit attributable to owners of the parent for the financial year by the weighted average number of ordinary shares in issue, adjusted to assume the conversion of all dilutive potential ordinary shares, i.e. warrants. A calculation is done to determine the number of shares that could have been acquired at market price based on the monetary value of the subscription rights attached to the outstanding warrants. Notes to the Financial Statements For the Financial Year ended 30 September 2017 125 MKH Berhad • Annual Report 2017