Change - S P Setia Berhad

128
Annual report 2008
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2008
39. TAX EXPENSE (cont’d)
The provision for taxation differs from the amount of taxation determined by applying the applicable statutory tax rate of the profit
before tax as a result of the following differences:
Group
Company
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Accounting profit
(excluding share of results in associated companies) 275,853 304,136 15,771 996,242
Taxation at applicable tax rates 71,660 82,153 4,100 268,985
Tax effects arising from:
– non-deductible expenses 12,672 4,790 915 1,856
– non-taxable income (11,763) (6,449) (37) (4,485)
Unavailable group relief 52 11 – –
Originating of deferred tax assets not recognised 115 550 – –
Effect of income subject to real property gain tax – (19,393) – –
Effect on reduction in future tax rate 132 906 (10) 72
Under/(Over)provision in prior years 4,692 5,855 3,058 (1,761)
77,560 68,423 8,026 264,667
Tax savings during the financial year arising from:
Utilisation of current year tax losses 741 7,318 741 7,303
Utilisation of previously unrecognised tax losses 607 102 – –
Subject to agreement with the Inland Revenue Board, based on estimated tax credits available and the prevailing tax rate
applicable to dividends and the balance on the tax exempt account, the entire retained earnings of the Company is available for
distribution by way of dividends.
If the Company elects to adopt the single tier company income tax system with effect from the year of assessment 2008, the
entire retained earnings of the Company is available for distribution by way of dividend without incurring additional tax liability.
40. EARNINGS PER SHARE
Basic earnings per share
The basic earnings per share has been calculated by dividing the Group’s profit for the year attributable to shareholders of the
Company of RM213,456,000 (2007 : RM260,070,000) by the weighted average number of shares in issue of 1,014,510,000 (2007
: 1,007,480,000). The weighted average number of shares in issue is calculated as follows:
2008 2007
’000 ’000
Number of ordinary shares at beginning of the year 672,605 664,685
Effect of shares issued pursuant to:
– ESOS – 6,968
– bonus issue 336,303 335,827
– exercise of Warrants 5,602 –
Weighted average number of ordinary shares 1,014,510 1,007,480