Strength & Stability - ECS Holdings Limited

16 Reserves
Group
Company
Note 2008 2007 2008 2007
$’000 $’000 $’000 $’000
Currency translation reserve (a) (477) (1,720) - -
Dividend reserve (b) 9,865 5,679 9,865 5,679
General reserve (c) 2,423 669 - -
Accumulated profits 113,175 95,210 10,876 6,228
124,986 99,838 20,741 11,907
(a)
Currency Translation Reserve
The currency translation reserve of the Group comprises foreign exchange differences arising from the translation of the
financial statements of foreign entities.
(b)
Dividend Reserve
The dividend reserve of the Group represents dividends proposed which are subject to approval of the shareholders at a general
meeting.
(c)
General Reserve
According to the current People’s Republic of China (“PRC”) Company Law, the PRC subsidiaries of the Group are required
to transfer 10% of their profit after taxation to statutory surplus reserve until the surplus reserve balance reaches 50% of the
registered capital. For the purpose of calculating the amount to be transferred to reserve, the profit after taxation is the amount
determined under PRC accounting standards. The amount of transfer to this reserve has to be made before profit distribution
to shareholders.
p.
76
Notes to the
Financial Statements
These notes form an integral part of the financial statements.
ECS Holdings Limited