FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201227. OTHER RESERVES (CONTINUED)(b) MovementsGroup2012 2011US$’000 US$’000(i)Merger reserveBeginning of financial year (50,749) (50,749)Acquisition of subsidiaries under common control 43 -End of financial year (50,706) (50,749)(ii) General reserveBeginning of financial year (2,608) (832)Acquisition of non-controlling interests - (516)Put option granted to non-controlling interests* - (1,260)End of financial year (2,608) (2,608)(iii) Asset revaluation reserveBeginning of financial year 10,146 10,281Realisation of reserve upon disposal (470) (135)Tax relating to asset revaluation reserve 382 -End of financial year 10,058 10,146(iv) Currency translation reserveBeginning of financial year 27,796 31,794Net currency translation differences of foreign subsidiaries 7,853 (3,798)Non-controlling interests 18 (200)End of financial year 35,667 27,796Other reserves are non-distributable.* Certain non-controlling interests have the option to put its shares to the Group for a cash consideration to be calculated inaccordance with the provisions of the shareholders’ agreement between the Group and the non-controlling interests. The Grouprecognises the present value of the estimated redemption amount as a financial liability (included in non-trade payables, Note 23)against equity.28. RETAINED PROFITS(a) Retained profits of the Group are distributable, to the extent that it is in compliance with the local guidelines of the countries inwhich the subsidiaries operate and the restrictions imposed by the covenant underlying our borrowings.88