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Annual Report 2016
ASIA MEDIA GROUP Berhad
107
Notes to the Financial Statements
(continued)
13. Reserves
Group
Company
2016
2015
2016
2015
RM
RM
RM
RM
Non- distributable
Share premium
826,800
826,800
826,800
826,800
Warrant reserve
3,519,617 3,519,617 3,519,617 3,519,617
4,346,417 4,346,417 4,346,417 4,346,417
Distributable
Retained earnings/
accumulated losses
(5,385,943)
4,649,804 (12,585,237) (2,328,341)
(1,039,526)
8,996,221 (8,238,820)
2,018,076
13.1 Share premium
Share premium arose from the exercise of options under Share Issuance Scheme (“SIS”).
13.2 Warrant reserve
Warrant reserve represents the proceeds from the issuance of warrants which is non-
distributable. The warrants reserve is transferred to the share premium account upon the
exercise of warrants and the warrants reserve in relation to the unexercised warrants at
the expiry of the warrants will be transferred to retained earnings.
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.