Malaysia legislation
Section 27
of Mengikut peraturan Bilangan 34 Peraturan-Peraturan Tanah Tahun 1966, adalah
Seksyen 27
RESERVES
The Group
The Company 2005 2004 2005 2004
Non-distributable reserves:
Share premium 78,581,839 78,581,839 78,581,839 78,581,839
Revaluation reserve
—
—
2,530,027 2,530,027
Distributable reserve:
Unappropriated profit 135,805,760 127,615,821 108,825,489 102,479,790 214,387,599 206,197,660 189,937,355 183,591,656
Share Premium
Share premium arose from the following:
The Group and the Company 2005 2004
Special issue of 42,952,000 ordinary shares of RM1 each at RM2.20 per share for acquisition of land and landed properties 51,542,400 51,542,400
Restricted public issue of 10,000,000 new 12,000,000 12,000,000
ordinary shares of RM1 each RM2.20 per share to the entitled shareholders of Kulim
(Malaysia) Berhad
Public issue of 15,000,000 new ordinary shares of RM1 each at RM2.20 per share 18,000,000 18,000,000
Less: Listing expenses
(2,960,561) (2,960,561)
78,581,839 78,581,839
Revaluation Reserve
The revaluation reserve is used to record increase and decrease in revaluation of non-current assets, as described in accounting policies. The amount arose from the revaluation of a subsidiary company in 1996 as follows:
The Company 2005 2004
Revaluation surplus arising from revaluation of a subsidiary company 7,530,027 7,530,027
Less: Bonus issue
(5,000,000) (5,000,000)
2,530,027 2,530,027
22hb Jun 2006]
1679
Unappropriated Profit
Distributable reserves are those available for distribution by way of divi-dends. Based on the prevailing tax rate applicable to dividends and the estimated tax credits and the tax-exempt account balance as mentioned in
Note 10, the unappropriated profit of the Company as of 31 December 2005 is available for distribution by way of cash dividends without additional tax liabilities being incurred.