Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 129 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 23. RESERVES The Group The Company 2023 2022 2023 2022 RM RM RM RM Non-distributable: Foreign currency translation reserve 61,250,289 39,624,182 - - Statutory reserve 45,542,573 33,862,259 - - Share grant plan reserve - 4,183,700 - 4,183,700 Distributable: Retained earnings 419,671,852 357,105,294 56,466,865 42,992,527 526,464,714 434,775,435 56,466,865 47,176,227 Foreign currency translation reserve The foreign currency translation reserve arose from the translation of the financial statements of foreign subsidiaries whose functional currencies are different from the Group’s presentation currency. Statutory reserve The statutory reserve is maintained by the Group’s subsidiary in Taiwan in accordance with the regulations in that country. Share grant plan reserve The share grant plan (“SGP”) reserve represents the equity-settled share granted to eligible person at discretion of SGP committee. The reserve is made up of cumulative value of services received from directors and employees recorded as at grant date of equity-settled share grant and is to be satisfied by the transfer of the Company’s treasury shares. The transfer of the treasury shares is to be recognised directly in equity. The SGP of the Company is governed by the SGP By-Laws and was approved by the shareholders at an Extraordinary General Meeting held on 10 June 2022. The SGP is to be in force for a period of 5 years effective from 17 June 2022. The main features of SGP are as follows: (i) Eligible persons are employees and/or directors of the Group, save for companies which are dormant, who have been confirmed in the employment of the Group and have served for at least 1 year before the date of the offer. (ii) The maximum number of new ordinary shares of the Company, which may be available under the scheme, shall not exceed in aggregate 5%, of the total number of issued shares (excluding treasury shares) at any point of time during the SGP period. (iii) The SGP price shall be determined by the SGP Committee based on the 5-day volume weighted average market price of ordinary shares of the Company immediately preceding the offer date of the SGP. (iv) SGP Committee has made the determination that the stipulated conditions has been fulfilled pursuant to the offer, the SGP Committee shall notify the Grantee of the number of SGP Shares vested/which will be vested in him/her on the Vesting Date. The SGP Committee shall also have the sole and absolute discretion to settle the vesting of the Shares by way of cash to a Grantee. (v) The treasury shares are to be transferred upon the vesting of any SGP shares under SGP. The treasury shares shall be transferred together with all dividends, rights, allotments and/or other distributions declared, the entitlement date of which is on or after to the date the treasury shares are credited into the CDS Account of the relevant Grantee.
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