241 F INANC IAL Statements Sect ion 05 Annual Report 2022 NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 37. OTHER RESERVES Group Company Note 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Merger deficit (a) (906,015) (906,015) - - Currency translation reserve (b) 18,137 23,122 - - Equity component of convertible unsecured loan stocks (“CULS”) (c) 361 361 - - Employee share reserves (d) 1,185 671 1,185 671 Retained earnings (e) 214,717 131,625 67,739 23,922 (671,615) (750,236) 68,924 24,593 (a) Merger deficit This represents the difference between the consideration transferred and the equity acquired arising from the completion of the reverse takeover acquisition of Symphony House Berhad on 15 December 2015. (b) Currency translation reserve The currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. (c) Equity component of convertible unsecured loan stocks (“CULS”) This represents the residual amount of convertible unsecured loan stocks (“CULS”) after deducting the fair value of the liability component. This amount is presented net of transaction costs and deferred tax liability arising from CULS. In prior year, RPI, a subsidiary of the Company, had made a partial redemption of RM3,600,000. The Group had remeasured the CULS and resultantly, a gain of RM1,004,000 had been recognised in the profit or loss (Note 8). Group RM’000 Nominal value of CULS 8,000 Less: Liability component (6,664) Less: Impact of discounting (975) Equity component 361 (d) Employee share reserves This represents the fair value of the LTIP shares at grant date with corresponding movement in profit or loss, over the vesting period. (e) Retained earnings The Company may distribute dividends out of its entire retained earnings as at 31 December 2022 under the single-tier system.
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