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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
8.
INCOME TAX EXPENSE (CONT’D)
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
2015
2014
2015
2014
RM
RM
RM
RM
Profit before tax
15,998,086
28,139,842
178,853
1,609,481
Tax at the applicable tax
rate of 25% (2014 : 25%)
3,999,522
7,034,961
44,713
402,370
Effect of different tax rates
of other tax jurisdictions
(2,442,613)
(1,564,212)
-
-
Tax effects of:
Non-deductible expenses
2,764,384
1,281,652
1,226,397
521,320
Income not subject to tax
(46,020)
(483,479)
(1,271,110)
(923,690)
Utilisation of deferred tax
assets previously not
recognised
(480,971)
(692,523)
-
-
Utilisation of unabsorbed
reinvestment allowances
(407,000)
(806,000)
-
-
Tax incentives
(223,082)
(133,922)
-
-
Income tax exemption
(353,983)
(183,707)
-
-
Deferred tax assets not recognised
for the year
2,132,632
863,919
-
-
Under/(Over)provision in prior years
- Current tax
1,553,391
242,305
-
-
- Deferred tax
-
(600,939)
-
-
Effect of share of results in associates
(6,297)
(6,333)
-
-
Income tax expense
6,489,963
4,951,722
-
-
The statutory tax rate will be reduced to 24% from the current financial year’s rate of 25%, effective year of assessment
2016.
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
2015
2014
RM
RM
Profit for the year attributable to owners of the Company (RM)
4,007,044
18,775,293
Number of shares in issue as of January 1
1,011,408,160 1,011,408,160
Effects of:
Treasury shares acquired
(4,984,134)
(2,493,970)
Conversion of warrants
34,287,141
-
Weighted average number of ordinary shares for basic earnings
per share computation
1,040,711,167 1,008,914,190
Basic earnings per ordinary share attributable
to equity holders of the Company (sen)
0.39
1.86
No disclosure on diluted earnings per share as there were no dilutive potential ordinary shares outstanding at the end
of the reporting period.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)