Financial Statements - Mewah Group

MEWAH INTERNATIONAL INC.
ANNUAL REPORT 2011
Notes to the Financial Statements
For the financial year ended 31 December 2011
11. Income tax (credit)/expense (continued)
The weighted average applicable tax rate was 19.3% and 17.6% for the financial years ended 31 December 2011 and 31
December 2010 respectively. The changes in weighted average applicable tax rates arose from changes in the mix of income
subject to tax in different countries.
The weighted average effective tax rate was 12.8% and 13.8% for the financial years ended 31 December 2011 and 31 December
2010 respectively. The tax savings arise mainly from the following tax incentives:
- certain subsidiaries in Singapore pay tax at a concessionary tax rate of 5% on qualifying income under the Global Trader
Programme of International Enterprise Singapore; and
- certain subsidiaries in Malaysia entitled to reinvestment allowance, which allows additional allowance on qualifying capital
expenditure.
(Over)/under provision in prior financial years
Overprovision in prior financial years resulted from final tax outcome different from the amounts that were originally estimated
consisting of:
- US$4,696,000 on account of lower tax rate approved this year under Global Trader Programme for Singapore-based
operating subsidiaries impacting income tax relating to last year; and
- US$1,292,000 mainly due to reinvestment allowances on qualifying capital expenditure for Malaysian-based operating
subsidiaries.
12. Earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company for the relevant
periods by the weighted average number of ordinary shares outstanding during the financial year.
Group
2011 2010
Net profit attributable to equity holders of the Company (US$’000) 42,245 92,352
Weighted average number of ordinary shares outstanding for basic earnings per share (’000)
(Note (i)) 1,507,061 1,304,537
Basic earnings per share (US cents per share) 2.80 7.08
(i)
The earnings per share for the financial year ended 31 December 2011 and 2010 were computed based on weighted average number of
shares adjusted to take into account the subdivision and issue of new ordinary shares. The Company’s pre-invitation capital of 1,281,002,440
shares were assumed to be issued throughout the relevant periods.
Diluted earnings per share was the same as the basic earnings per share for the financial years ended 31 December 2011 and
2010 as there were no potential dilutive ordinary shares outstanding.
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