2004 - Hiap Teck Venture Berhad

24. FINANCE COSTS
GROUP
2004 2003
RM'000 RM'000
Interest expense on:
Hire purchase 23 58
Bankers' acceptances 6,754 7,211
Trust receipts 84 2,108
Term loan 160 1,152
Overdraft 221 855
Onshore foreign currency loan 30 -
Revolving credit 31 264
Finance and administration charges 411 587
7,714 12,235
25. TAXATION
GROUP
COMPANY
2004 2003 2004 2003
RM'000 RM'000 RM'000 RM'000
Income tax:
Malaysian income tax 18,242 8,407 3,588 11
Under/(over)provided in prior years 126 (197) 79 -
18,368 8,210 3,667 11
Deferred tax (Note 18):
Relating to origination and reversal
of temporary differences (1,905) (703) (411) (19)
(Over)/underprovided in prior years (181) 1,159 60 -
(2,086) 456 (351) (19)
16,282 8,666 3,316 (8)
Domestic income tax is calculated at the Malaysian statutory tax rate of 28% (2003: 28%) of the estimated
assessable profit for the year.
A reconciliation of income tax expense applicable to profit/(loss) before taxation at the statutory income tax rate to
income tax expense at the effective income tax rate of the Group and of the Company is as follows:
Group
2004 2003
RM'000 RM'000
Profit before taxation 57,628 29,288
Taxation at Malaysian statutory tax rate of 28% (2003: 28%) 16,136 8,201
Effect of different tax rate for small and medium scale companies (141) (42)
Effect of double deduction expenses (66) (52)
Effect of income not subject to tax (25) (100)
Effect of expenses not deductible for tax purposes 578 894
Effect of utilisation of reinvestment allowance (145) (1,224)
(Over)/underprovision of deferred tax in prior years:
Company and subsidiaries (181) 1,159
Under/(over)provision of tax expense in prior years:
Company and subsidiaries 126 (197)
Tax on dividend out of pre-acquisition profit - 27
Tax expense for the year 16,282 8,666
HIAP TECK VENTURE BERHAD
47