2020 UEM Edgenta Annual Report

32. OTHER RESERVES (CONTD.) a. Put option reserve T his relates to the put option issued to the non-controlling interests over the shares of a subsidiary of the Group. For the purpose of presentation in the financial statements, the put option reserve is shown net of the related non-controlling interests at each reporting date as if it was acquired at that date. O n 14 November 2019, the non-controlling interest of EGT has issued a notice to exercise the put option granted on its 20% shareholding in the entity. The transaction was completed on 25 June 2020 upon approval from Unit Kerjasama Awam Swasta (“UKAS”) under the Ministry of Finance. Further information is disclosed in Note 16(b). b. Statutory reserve I n accordance with the United Arab Emirates (“UAE”) Commercial Companies Law, 10% of profit for each year from a Limited Liability Company incorporated in the UAE is transferred to a legal reserve until such time as the reserve equalled 50% of the paid-up capital. Faber L.L.C. (“FLLC”) has resolved to discontinue such annual transfers since the reserve has equalled to 50% of its share capital. This reserve is not available for distribution except as stipulated by UAE law. c. Foreign currency translation reserve T he foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation. d. Other reserve Other reserve arose from the redemption of redeemable preference shares in prior years by a subsidiary. 33. RETAINED EARNINGS The Company may distribute dividends out of its entire retained earnings under the single tier system. ANNUAL REPORT 2020 277 1 2 3 4 5 6 7 8