Wah Seong Corporation Berhad Annual Report 2019

168 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 35 TAX (CREDIT)/EXPENSE (CONTINUED) The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the statutory tax rate is as follows: Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Profit/(Loss) before tax 5,562 107,088 (541) 537 Calculated at the Malaysian tax rate of 24% (2018: 24%) on profit before tax 1,335 25,701 (130) 129 Expenses not deductible for tax purposes 27,579 27,554 2,432 654 Income not subject to tax (10,009) (22,464) (162) (44) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (4,433) (1,334) - - Current financial year deferred tax assets not recognised 3,369 4,262 - - Reversal of previously recognised deferred tax assets 1,310 3,532 - - Utilisation of tax incentives (218) (1,268) - - Effect of different tax rates in other countries 8,117 6,195 - - (Over)/Under provision in prior financial years (36,300) (140) 105 110 Share of associates and joint ventures results 1,079 4,603 - - Others 166 585 - - Tax (credit)/expense recognised in profit or loss (8,005) 47,226 2,245 849 36 EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY The basic earnings per share for the financial year has been calculated by dividing the Group’s profit attributable to owners of the Company for the financial year of RM24,136,000 (2018: RM64,797,000) by the weighted average number of ordinary shares in issue, after adjusting for movements in treasury shares during the financial year. Weighted average number of shares Group 2019 2018 ’000 ’000 Issued ordinary shares at 1 January 774,888 774,888 Effect of shares repurchased (4,427) (2,786) Weighted average number of ordinary shares in issue 770,461 772,102 Basic earnings per ordinary share (sen) 3.13 8.39 As there are no potential ordinary shares issued by the Company, thus there is no dilution in earnings per share.