105
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
22. RESERVES
The Group
The Company
2014
2013
2014
2013
RM
RM
RM
RM
Non-distributable:
Share premium
9,336,705
9,336,705
9,336,705
9,336,705
Treasury shares
(564,995)
(195,727)
(564,995)
(195,727)
Foreign currency
translation reserve
12,034,681
9,671,154
–
–
Warrant reserve
882,976
882,976
882,976
882,976
Statutory reserve
1,290,656
680,704
–
–
Distributable:
Retained earnings
82,683,045 64,786,682
3,480,954
1,871,473
105,663,068 85,162,494
13,135,640
11,895,427
Share premium
The share premium is not distributable by way of dividends and may be utilised in the manner set out in
Section 60(3) of the Companies Act 1965.
Treasury shares
During the financial year, the Company repurchased 3,020,000 of its issued ordinary shares from the open
market at an average price of RM0.122 per share. The total consideration paid for the repurchase including
transaction costs amounted to RM369,268. The total consideration paid for the repurchase was financed
by internally generated funds. The shares repurchased are being held as treasury shares in accordance with
Section 67A of the Companies Act 1965 and are presented as a deduction from total equity.
As at 31 December 2014, the Company held 4,866,600 treasury shares at a carrying amount of RM564,995.
As at 31 December 2014, the number of outstanding ordinary shares in issue after the set off of 4,866,600
treasury shares held by the Company is 1,006,541,560 ordinary shares of RM0.10 each.
Foreign currency translation reserve
Foreign currency translation differences arising from the translation of the financial statements of foreign
subsidiaries are taken to the foreign currency translation reserve as described in the significant accounting
policies.
Warrant reserve
The warrant reserve arose from 288,973,760 free new detachable warrants (“Warrants”) which were listed on
Bursa Malaysia Securities Berhad on 16 March 2010 pursuant to the rights issue.
Statutory reserve
The statutory reserve is maintained by the Group’s subsidiary in Taiwan in accordance with the regulations
in that country.
Retained earnings
Under the single tier tax system, tax on the Company’s profits is the final tax and accordingly, any dividends
to the shareholders are not subject to tax.
