Page 115 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 113

10 taXation (continued)
Income tax is calculated at the Malaysian statutory tax rate of 24% (2019: 24%) of the estimated assessable profit for the
year. The numerical reconciliation between the effective tax rate and the applicable statutory tax rate is as follows:

2020 2019
% %
Applicable statutory tax rate 24 24
Tax effects in respect of:
- expenses not deductible for tax purposes 1 5
- income not subject to tax - (2)
- effects arising due to difference between functional
and tax reporting currency - 25
- utilisation of reinvestment allowance previously not recognised (4) -
- over accrual in prior year (1) (7)
- (recognition of previously unrecognised tax losses)/deferred
tax asset not recognised on unutilised tax losses (18) 31
Effective tax rate 2 76

11 earninGs per sHare
Basic earnings per share of the Company is calculated by dividing the profit for the financial year by the weighted average
number of ordinary shares in issue during the financial year.
There are no potentially diluted items identified in the current and previous financial year, hence diluted earnings per share
equals to basic earnings per share.
2020 2019
Profit for the financial year (RM’000) 250,983 34,984
Weighted average number of ordinary shares in issue (‘000) 300,000 300,000
Basic/Diluted earnings per share (sen) 84 12

12 Directors’ reMUneration

2020 2019
rM’000 rM’000
Fees 1,983 1,933
Allowances 25 24
2,008 1,957

Indemnity insurance for Directors and Officers of the Company during the financial year amounted to RM60,500
(2019: RM57,000).