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Asia Media Group Berhad
►
Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
107
13. Reserves (cont’d)
13.3 Retained earnings
Under the single tier system which came into effect from the year assessment 2008,
companies are not required to have tax credit under Section 108 of the Income Tax Act,
1967 for dividend payment purposes. Under this system, tax on the Company’s profits is
the final tax and accordingly, any dividends to the shareholders are not subject to tax.
14. Trade and other payables
Group
Company
2015
2014
2015
2014
RM
RM
RM
RM
Trade payables
Third parties
339,710 1,240,166
–
–
Other payables
Accruals
1,893,756
69,179
23,300
20,750
Amount owing to a Director
1,355,060
961,207
2
–
Sundry payables
821,048
96,711
64,307
43,200
4,069,864 1,127,097
87,609
63,950
Trade and other payables
4,409,574 2,367,263
87,609
63,950
Less: Accruals
(1,893,756)
(69,179)
(23,300)
(20,750)
Add: Short term borrowings
1,500,000 1,500,000
–
–
Total financial liabilities
carried at amortised cost
4,015,818 3,798,084
64,309
43,200
Trade payables are non-interest bearing and the normal trade credit terms granted to the Group
ranged from 30 to 90 days (2014: 30 to 90 days).
Amounts owing to a Director is unsecured, interest-free and has no fixed terms of repayment.
Included in accruals is the provision for minimum guaranteed sum of RM1,822,500 (2014: RM
Nil) arose from material litigation as disclosed in note 30 to the financial statements.