CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Cahya Mata Sarawak Berhad 134 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 11. INCOME TAX EXPENSE (CONT'D.) The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2016 and 2015 are as follows (cont'd.): Company 2016 2015 RM’000 RM’000 Accounting profit before tax 31,577 30,723 Tax at Malaysian statutory tax rate of 24% (2015: 25%) 7,578 7,681 Adjustments: Group tax relief transferred from subsidiaries (240) (875) Non-deductible expenses 16,422 12,885 Income not subject to tax (22,670) (18,873) Under/(over) provision of income tax in respect of previous years 182 (127) Under provision of deferred tax in respect of previous years - 157 Income tax expense recognised in profit or loss 1,272 848 Income tax is calculated at the Malaysian statutory tax rate of 24% (2015: 25%) of the estimated assessable profit for the year. Tax savings during the financial year arising from: Group 2016 2015 RM’000 RM’000 Utilisation of current year tax losses 98 69 Unutilised of tax losses brought forward 62 - 160 69 12. EARNINGS PER SHARE Basic earnings per share Basic earnings per share amounts are calculated by dividing profit for the year, net of tax, attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the financial year. Group 2016 2015 Profit net of tax attributable to owners of the Company (RM’000) 169,177 248,149 Weighted average number of ordinary shares in issue (’000) 1,074,376 1,064,741 Basic earnings per share (sen) 15.75 23.31 There are no dilutive potential ordinary shares. As such, the diluted earnings per share of the Group is equivalent to basic earnings per share.