FRONTLINE COVER FA 070606 CR2.indd

More documents

Recommendations

Info

66 frontline technologies corporation ltd annual report 2006 > notes to the financial statement for the year ended 31 march 2006 11. Tax (cont’d) Group A loss-transfer system of group relief (“group relief system”) for companies was introduced in Singapore with effect from year of assessment 2004. Under the group relief system, a company belonging to a group may transfer its current year unabsorbed capital allowances, current year unabsorbed trade losses and current year unabsorbed donations (loss items) to another company belonging to the same group, to be deducted against the assessable income of the latter company. The Group has unutilised tax losses of approximately $2,690,000 (2005: $3,480,000) available for offset against future taxable income subject to the agreement by tax authorities and compliance with certain tax regulations in the respective countries in which certain subsidiaries operate. The potential deferred tax asset arising from the unabsorbed tax losses of certain subsidiaries have not been recognised in the financial statements due to uncertainty in its realisation. The reconciliation of the tax expense and the amount obtained by applying the applicable tax rate on accounting profit before tax is as follows: Group 2006 2005 $ $ Profit before tax 11,110,486 8,209,870 Tax at the domestic tax rate of 20% (2005: 20%) 2,222,097 1,641,974 Income not taxable (440,471) (221,095) Expenses not tax deductible 123,954 301,062 Leasing income recognised only for tax purposes 721,579 728,105 Utilisation of tax losses brought forward not recognised in prior years (45,615) (527,885) Utilisation of capital allowances brought forward not recognised in prior years (458) (1,165,474) (Over)/under provision in prior year – current tax 213,943 (31,531) – deferred tax – (191,305) Change in tax rates 115,465 116,551 Tax relief (1,042,434) (24,918) Effect of different tax rates in other countries 600,434 650,179 Deferred tax asset not recognised 41,542 340,749 Partial tax exemption (30,280) (13,159) Share of associates’ tax (830,883) (555,779) Others 163,543 275,733 1,812,416 1,323,207
frontline technologies corporation ltd annual report 2006 67 > notes to the financial statement for the year ended 31 march 2006 11. Tax (cont’d) Deferred taxes as at 31 March related to the tax effect of the following temporary differences: Group 2006 2005 $ $ Deferred tax assets Allowances for doubtful receivables and stock obsolescence 974,300 874,427 Deferred gain on sale and lease back 36,804 35,944 Tax losses carried forward 132,202 19,079 Foreign exchange difference 55,427 (40,830) Excess of tax base over carrying amount (159,580) (159,580) 1,039,153 729,040 Deferred tax liabilities Excess of carrying amount over tax base (1,341,635) (441,637) Foreign exchange difference – (1,281,481) Provisions – 381,076 (1,341,635) (1,342,042) Net deferred tax liability (302,482) (613,002) 12. Earnings per share The calculations of earnings per share are based on the profit and number of shares shown below. Group 2006 2005 $ $ Profit attributable to shareholders 7,293,056 5,154,394 Weighted Weighted average average number of number of shares shares 2006 2005 Issued ordinary shares at beginning of year 824,044,945 819,907,592 Weighted average number of ordinary shares issued during the year – 668,778 Total for basic earnings per share 824,044,945 820,576,370 When calculating diluted earnings per share, the weighted average number of shares is adjusted for the effect of all dilutive potential ordinary shares. Fully diluted earnings in cents per share is not disclosed, as there is no dillutive effect from the exercise of the share options from the Scheme (Note 30). 13. Dividend Group 2006 2005 $ $ An interim dividend of 0.60 cents (2005: 0.50 cents) per ordinary share, less tax at 20%, paid in respect for the year ended 31 March 2006 3,955,416 3,279,630
Page 1 and 2:
NO ORDINARY IT SERVICE PROVIDER fro
Page 3 and 4:
frontline technologies corporation
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18: frontline technologies corporation
Page 67: frontline technologies corporation
Page 120:
Frontline Technologies Corporation
show all

FRONTLINE COVER FA 070606 CR2.indd

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?