Quality - UAC Berhad

Notes to The Financial StatementsFor The Financial Year Ended 31 December 200523 SHARE CAPITAL (continued)Employees' Share Option Scheme (continued)2005 2004RM'000 RM'000Ordinary share capital - at par 643 783Share premium 1,728 1,990Proceeds received on exercise of share options 2,371 2,773Fair value of shares issued at exercise date 3,137 3,922The fair value of shares issued on the exercise of options is the monthly mean market price at which theCompany's share were traded on Bursa Malaysia Securities Berhad in the month of the exercise of the options.24 ASSETS REVALUATION RESERVEGroupCompany2005 2004 2005 2004RM'000 RM'000 RM'000 RM'000Revaluation surplus- Gross 5,773 5,773 4,993 4,993- Deferred tax (1,469) (1,469) (1,250) (1,250)4,304 4,304 3,743 3,74325 RETAINED EARNINGSSubject to the agreement with the Inland Revenue Board, the Company has sufficient exempt income account andtax credit under Section 108 of the Income Tax Act, 1967 to frank the payment of dividends out of all its retainedearnings as at 31 December 2005.78 UAC BERHAD (5149-H) (Incorporated in Malaysia)