Frontken Berhad Annual Report 2017

100 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 21. RESERVES The Group The Company 2017 2016 2017 2016 RM RM RM RM Non-distributable: Share premium - 13,581,839 - 13,581,839 Treasury shares (663,237) (663,237) (663,237) (663,237) Foreign currency translation reserve 28,983,354 34,703,988 - - Statutory reserve 6,046,518 3,908,108 - - Distributable: Retained earnings 128,308,024 104,735,836 17,583,019 9,814,069 162,674,659 156,266,534 16,919,782 22,732,671 Share premium The Group/ The Company 2017 2016 RM RM At beginning of year 13,581,839 13,581,839 Transfer to share capital (13,581,839) - At end of year - 13,581,839 Treasury shares During the financial year, the Company did not purchase its issued ordinary shares from the open market. The shares purchased are being held as treasury shares in accordance with Section 127(6) of the Companies Act 2016 and are presented as a deduction from total equity. As at 31 December 2017, the Company held 5,466,600 (2016: 5,466,600) treasury shares at a carrying amount of RM663,237 (2016: RM663,237). As at 31 December 2017, the number of outstanding ordinary shares in issue after the set-off of 5,466,600 (2016: 5,466,600) treasury shares held by the Company is 1,047,968,530 (2016: 1,047,968,530) ordinary shares. Foreign currency translation reserve Foreign currency translation differences arose from the translation of the financial statements of foreign subsidiaries and the Group’s share of an associate’s foreign currency translation differences are taken to the foreign currency translation reserve as described in the significant accounting policies. 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. Notes To The Financial Statements (cont’d)