2021 UEM Edgenta Annual Report

UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 229 228 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 10. INCOME TAX EXPENSE (CONTD.) Reconciliation between tax expense and accounting profits A reconciliation of income tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2021 and 2020 are as follows: 2021 RM’000 2020 RM’000 Group Profit before tax 78,569 46,932 Less: Zakat (707) (2,367) 77,862 44,565 Taxation at Malaysian statutory tax rate of 24% (2020: 24%) 18,687 10,696 Tax effect on share of profit of associates (5,798) (3,781) Income not subject to tax (2,318) (8,874) Exempt income - (4,621) Foreign income not subject to tax (8,284) (1,906) Non-deductible expenses 18,971 33,618 Different tax rates in other countries (2,476) (7,266) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (2,600) (1,238) Deferred tax assets not recognised during the year 15,982 12,747 Underprovision of deferred tax in prior years 3,799 625 (Over)/under provision of income tax expense in prior years (1,461) 192 Income tax expense recognised in statement of comprehensive income 34,502 30,192 The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction. 2021 RM’000 2020 RM’000 Company Profit/(loss) before tax 41,412 (76,784) Taxation at Malaysian statutory tax rate of 24% (2020: 24%) 9,939 (18,428) Non-deductible expenses 10,720 17,676 Foreign income not subject to tax (745) - Income not subject to tax (26,516) (2,705) Deferred tax assets not recognised during the year 6,602 3,467 Income tax expense recognised in statement of comprehensive income - 10 11. EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing profit for the year attributable to owners of the parent by the weighted average number of ordinary shares in issue during the financial year held by the Company. Group 2021 RM’000 2020 RM’000 Profit attributable to owners of the parent 42,003 12,869 Number of shares ‘000 Number of shares ‘000 Weighted average number of ordinary shares in issue 831,624 831,624 Group 2021 Sen 2020 Sen Basic earnings per share 5.1 1.5 There are no potential ordinary shares outstanding as at 31 December 2021. As such, the diluted earnings per share of the Group is equivalent to the basic earnings per share. There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of authorisation of these financial statements.

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