EXAMPLE TAX COMPUTATION FOR PRIVATE COMPANY ABCD ENGINEERING SDN. BHD.

. (Incorporated in Malaysia) OPERATING EXPENSES SCHEDULE FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 2009 RM Administration expenses Accounting fees Audit fees Bank charges Depreciation of property, plant and equipment Gift and donation Licences fees Printing and stationeries Rental of office Secretarial and filing fees Service tax Telephone and fax Tender fees Water and electricity 750 4,850 2,507 3,732 2,950 350 1,414 7,600 704 243 6,365 840 798 33,103 Other operating expenses Directors allowance EPF and SOCSO Miscellaneous expenses Petrol, toll and parking Salaries, wages and allowances Upkeep of motor vehicles 26,640 13,206 16,485 94,800 1,530 2008 RM 700 4,200 2,450 2,308 2,390 980 1,645 4,800 600 210 7,135 740 570 28,728 26,640 4,717 150 13,060 95,963 1,530

152,661 Finance cost Interest on everdraft 27,274

142,060

18,834

Total Operating Expenses

213,038

189,622

ABCD ENGINEERING SDN. BHD. (Incorporated in Malaysia) DETAILED INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 2009 RM Revenue Cost of sales Direct labour Purchases Rental of machinery Sub-contractor 166,021 758,516 26,744 353,800 112,398 579,149 23,066 818,040 1,462,832 2008 RM 1,782,443

1,305,081

1,532,653

Gross profit Less: Expenses Other operating expenses Administration expenses Finance cost

157,751

249,790

152,661 33,103 27,274

142,060 28,728 18,834

213,038

189,622

Profit/(loss) before taxation

(55,287)

60,168

ABCD ENGINEERING SDN. BHD. (Incorporated in Malaysia) BALANCE SHEET AS AT 31 DECEMBER 2009 2009 RM Non-current asset Property, plant and equipment Current assets Trade receivables Sundry receivables and deposits Amount due from directors Cash and cash equivalents 350,000 173,132 397,495 5,238 250,000 4,193 42,120 18,677 2008 RM

523,132 Current liabilities Trade payables Sundry payables and accruals Bank overdrafts Taxation 6,013 332,556 338,569 Net current assets 184,563

656,926

13,186 5,280 370,809 2,948 392,223 264,703

226,683 Financed by: Capital and reserves Share capital Unappropriated profits 240,000 (13,317) 226,683

283,380

240,000 41,970 281,970

Non-current liability Deferred tax liabilities

226,683

1,410 283,380

ABCD ENGINEERING SDN. BHD.

(Incorporated in Malaysia) INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 2009 RM REVENUE Cost of sales 1,462,832 (1,305,081) 2008 RM 1,782,443 (1,532,653)

Gross profit Other operating expenses Administration expenses Profit/(loss) from operations Finance cost Profit/(loss) before taxation Taxation

157,751 (152,661) 33,103 (28,013) (27,274) (55,287) -

249,790 (142,060) 28,728 79,002 (18,834) 60,168 4,358

Net profit for the year

(55,287)

55,810

ABCD ENGINEERING SDN. BHD.

(Incorporated in Malaysia) STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 Unappropriated profits / (accumulated Share capital RM At 31 December 2007 Isuue of shares during the financial year Net profit for the financial year end At 31 December 2008 Net profit/(loss) for the financial year At 31 December 2009 70,002 169,998 240,000 240,000 losses) RM (13,840) 55,810 41,970 (55,287) (13,317) Total RM 56,162 169,998 55,810 281,970 (55,287) 226,683

ABCD ENGINEERING SDN. BHD. (Incorporated in Malaysia)

CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 2009 RM Cash flows from operating activities Profit/(loss) before taxation Adjustments for: Depreciation of property, plant and equipment Operating profit/(loss) before working capital changes Trade receivables Sundry receivables and deposits Amount due from directors Trade payables Sundry payables and accruals Cash (used in)/generated from operating activities Tax paid Net cash (used in)/generated from operating activities Cash flows from investing activity Purchase of property, plant and equipment Net cash used in investing activity Cash flows from financing activity Issuance of share capital Net cash generated from financing activity 169,998 169,998 (27,175) (27,175) (12,200) (12,200) (55,287) 3,732 (51,555) 47,495 5,238 76,868 (13,186) 733 65,593 (2,948) 62,645 60,168 2,308 62,476 (369,949) (3,678) (250,000) (261,773) 864 (822,060) (822,060) 2008 RM

Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of financial year

35,470 (366,616)

(664,262)

297,646 Cash and cash equivalents at end of financial year (331,146) (366,616)

ABCD ENGINEERING SDN. BHD. (Incorporated in Malaysia) TAX COMPUTATION

FOR THE YEAR ASSESMENT 2009 RM Net loss before taxation Add: Non allowable expenses Depreciation Adjusted income Less: Capital Allowance Capital allowance brought forward Current year capital allowance Capital allowance to be set off Capital allowance carried forward Statutory income Less: Unabsorbed loss brought forward Current year losses Unabsorbed loss to be set off Unabsorbed loss carried forward (51,555) (51,555) (55,287) 3,732 (51,555) 12,201 12,201

Taxable income Tax to be paid