directors - The Lion Group

39. RESERVES
91
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Non-distributable reserves:
Share premium 515,190 515,190 515,190 515,190
Translation adjustment account 34,560 56,058 – –
Negative goodwill 769,593 828,679 – –
1,319,343 1,399,927 515,190 515,190
Unappropriated profit/(Accumulated loss) 261,589 (55,961) (137,683) (138,878)
Share premium
1,580,932 1,343,966 377,507 376,312
Share premium arose from the issue of shares in the Company at a premium in prior years.
Translation adjustment account
Exchange differences arising from the translation of foreign subsidiary and associated companies are taken to the
translation adjustment account.
Negative goodwill
Negative goodwill represents the excess of the fair value of the identifiable net assets over the purchase consideration
for an acquisition at the date of acquisition.
Unappropriated profit/(Accumulated loss)
Based on the prevailing tax rate applicable to dividends, the estimated tax credits available and the tax exempt
income mentioned in Note 11, the Company has sufficient tax credits to frank the payment of dividends of
approximately RM63 million (2004: RM52 million) without additional tax liabilities being incurred. Any dividend
paid in excess of this amount would result in tax liability calculated at 28% on the gross amount of the additional
dividend paid.
40. DIVIDEND
A first and final dividend of 1%, less tax, amounting to RM4.9 million proposed in respect of ordinary shares in
previous financial year and dealt with in the previous directors’ report was paid by the Company during the
financial year.
The Directors propose a first and final dividend of 1%, less tax, amounting to RM5.0 million in respect of the
current financial year. The dividend, which is subject to approval by the shareholders at the forthcoming Annual
General Meeting, has not been included as a liability in the financial statements. Gross dividend per share during
the financial year is 1 sen (2004: 1 sen).