Pg 147 - Berjaya Corporation Berhad

notes to thefinancial statements30 April 200621 RESERVESGroupCompany2006 2005 2006 2005RM’000 RM’000 RM’000 RM’000Non-distributable:Exchange reserve (Note a) 54,171 73,293 - -Distributable:Retained profits (Note b) 822,207 1,646,909 899,391 1,878,438Notes:(a) Exchange reserve876,378 1,720,202 899,391 1,878,438Group2006 2005RM’000 RM’000At 1 May 2005/2004 73,293 68,349Current year movement (19,122) 4,944At 30 April 2006/2005 54,171 73,293(b) Retained profitsThe Company has tax exempt income of RM97,486,000 (2005: RM97,486,000) available for distribution as tax exempt dividendand based on the estimated tax credits available, approximately RM598,782,000 (2005: RM713,462,000) of the retained profitof the Company is available for distribution by way of dividend without incurring additional tax liability. Any distribution ofdividend in excess of this amount will attract tax charge at the prevailing statutory tax rate. If the balance of the retained profitsof RM300,609,000 (2005: RM1,164,976,000) were to be distributed as dividends prior to there being sufficient tax credit, theCompany would have a Section 108 shortfall of approximately RM84,170,000 (2005: RM326,193,000).22 5% IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS (“ICULS 1999/2009”)GroupCompany2006 2005 2006 2005RM’000 RM’000 RM’000 RM’000ICULS 1999/2009 atnominal value of RM1.00 each:At 1 May 2005/2004 434,538 588,659 893,005 894,449Less: Amount converted into ordinary shares (40,575) (1,444) (40,575) (1,444)Less: Purchased by a subsidiary company (83,604) (152,677) - -At 30 April 2006/2005 310,359 434,538 852,430 893,005The Company’s ICULS 1999/2009 at nominal value of RM1.00 each are constituted by a Trust Deed dated 21 December 1999between the Company and the Trustee for the holders of the ICULS 1999/2009.72Annual Report 2006Berjaya Land Berhad (201765-A)