Untitled - Swissco Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2005
11. Earnings Per Share (continued)
(b)
Diluted earnings per share
For the purpose of calculating diluted earnings per share, profit attributable to members of
the Company and the weighted average number of ordinary shares outstanding are adjusted
for the effects of all dilutive potential ordinary shares.
For the share options, a calculation is done to determine the number of shares that could
have been acquired at fair value (determined as the average annual market share price of
the Company’s shares) based on the monetary value of the subscription rights attached to
outstanding share options. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise of the share options.
The differences are added to the denominator as an issuance of ordinary shares for no
consideration. No adjustment is made to earnings (numerator).
The Group
2005 2004
Net profit for the financial year ($) 12,480,324 3,872,600
Weighted average number of ordinary shares
in issue for basic earnings per share 146,692,925 126,067,925
Adjustments for share options 134,816 –
Adjusted weighted average number of ordinary shares
in the Company 146,827,741 126,067,925
Diluted earning per share (cents) 8.50 3.07
12. Cash and Cash Equivalents
The Group
The Company
2005 2004 2005 2004
$ $ $ $
Cash at bank and on hand 849,912 1,733,422 18,962 47,110
Fixed deposits with financial institutions 3,355,888 2,000,000 – 2,000,000
4,205,800 3,733,422 18,962 2,047,110
The carrying amounts of cash and cash equivalents approximate their fair value. The fixed deposits
with financial institutions for the Group mature on varying dates within 3 months (2004: 3 months)
from the financial year end. The weighted average effective interest rate of these deposits for the
Group as at 31 December 2005 was 3.94% (2004: 1.24%) per annum.
49