14 otHer reserVes
Group
Company
2008
2007
2008
2007
RM'000
RM'000
RM'000
RM'000
Restated
6,263,451
25,876
Retained profits
5,765,468
91,517
16,598
16,598
Capital contribution reserve
9,113
824
346,774
--
Merger reserve
346,774
--
Currency translation differences arising from
translation of:
(560,428)
--
subsidiaries
(430,936)
--
(106,757)
--
jointly controlled entities
100,179
--
8,729
--
associates
17,957
--
TOTAL OTHER RESERvES
5,968,367
42,474
5,808,555
92,341
The Group's capital contribution reserve relates to the ESOS of Telekom Malaysia Berhad, the former holding
company, which were made available to the employees of the Group as disclosed in Note 13 to the financial
statements.
Effective 1 January 2008, the Company is given the option to make an irrevocable election to move to a single tier
system or continue to use its tax credit under Section 108 of the Income Tax Act 1967 for the purpose of dividend
distribution until the tax credit is fully utilised or latest by 31 December 2013. The Company has opted to move a
single tier system and as a result, there are no longer any restrictions on the Company to frank the payment of
dividends out of its entire retained profits as at the balance sheet date.
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