NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
31
INCOME TAX EXPENSE (CONT’D)
The tax charge for the year can be reconciled to the accounting profit as follows:
Group
2015
2014
US$’000
US$’000
Profit before tax
5,205
16,443
Income tax expense calculated at 17% (2014 : 17%)
885
2,796
Effect of income that is not taxable/deductible
in determining taxable profit
(1,591)
(2,830)
Effect of different tax rates for foreign subsidiaries and associate
816
816
Effect of tax losses disallowed
788
1,087
(Over) Under provision in respect of prior years
(5)
173
Others
199
(120)
1,092
1,922
As at the end of the reporting period, the Group and the Company have tax losses of approximately US$287,000
(2014 : US$287,000) and US$Nil (2014 : US$Nil) respectively that are available for offset against future taxable
profits of the companies in the Group and the Company in which the losses arose, for which no deferred tax
asset is recognised due to uncertainty of recoverability. The use of these tax losses is subject to the agreement
of the tax authorities and compliance with certain provisions of the tax legislation of the respective countries
in which the companies operate.
At the end of the reporting period, the aggregate amount of temporary differences associated with
undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised is US$34.4
million (2014 : US$51.5 million). No liability has been recognised in respect of these differences because the
Group is in a position to control the timing of the reversal of the temporary differences and it is probable that
such differences will not reverse in the foreseeable future.
32
PROFIT FOR THE YEAR
Profit for the year has been arrived at after charging (crediting):
Group
2015
2014
US$’000
US$’000
Operating lease expenses (included in cost of sales)
8,319
8,617
Directors’ fees
137
146
Audit fee:
Auditors of the Company
158
156
Other auditors
58
65
Non-audit fee:
Auditors of the Company
14
15
Other auditors
11
5
Depreciation of property, plant and equipment
24,241
23,810
Depreciation of investment property
26
25
Allowance for doubtful trade debts
385
607
Write-off of amount due from related company
388
–
Write-back of doubtful trade debts
(166)
(297)
130
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
