FINANCIAL STATEMENTS - Mewah Group

ANNUAL REPORT 2012NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201211. INCOME TAX CREDIT (CONTINUED)Income tax credit (continued)The Singapore corporate tax rate was 17% for the financial years 2012 and 2011.The Malaysia corporate tax rate was 25% for the financial years 2012 and 2011.The weighted average applicable tax rate was 20.1% and 19.3% for the financial years ended 31 December 2012 and 31 December2011 respectively. The changes in weighted average applicable tax rates arose from changes in the mix of income subject to tax indifferent countries.The weighted average effective tax rate was 7.4% and 12.8% for the financial years ended 31 December 2012 and 31 December 2011respectively. 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 Programmeof International Enterprise Singapore; and- certain subsidiaries in Malaysia entitled to reinvestment allowance, which allows additional allowance on qualifying capitalexpenditure.Over provision in prior financial yearsOver provision in prior financial years resulted from final tax outcome different from the amounts that were originally estimated forreinvestment allowances on qualifying capital expenditure for Malaysian-based operating subsidiaries, qualifying incomes under theGlobal Trader Programme of International Enterprise Singapore for Singapore-based operating subsidiaries, capital allowances, incentivesand the deductibility of certain expenses at the various tax jurisdictions.12. EARNINGS PER SHAREBasic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company by the weighted averagenumber of ordinary shares outstanding during the financial year.Group2012 2011Net profit attributable to equity holders of the Company (US$’000) 24,788 42,245Weighted average number of ordinary shares outstanding for basic earnings per share (’000) 1,507,061 1,507,061Basic earnings per share (US cents per share) 1.64 2.80Diluted earnings per share was the same as the basic earnings per share for the financial years ended 31 December 2012 and 2011 asthere were no potential dilutive ordinary shares outstanding.71