FGV Annual Report 2012

98 Felda Global Ventures Holdings Berhad 38 OTHER RESERVES Group Company 2012 2011 2012 2011 RM’000 RM’000 RM’000 RM’000 Available for sale reserves 20,027 33,526 – – Capital redemption reserves 10,052 1,047 10,052 1,047 Other reserves 33,615 33,615 1,459 1,459 63,694 68,188 11,511 2,506 Available for sale reserves relates to the Group’s share of available for sale reserve of jointly controlled entities and associates. Capital redemption reserves relates to reserve created upon redemption of RCPS/RCCPS as required by Companies Act 1965. Other reserves mainly relates to the capital contribution which represents the difference between fair value and advance from a significant shareholder as a result of the application of FRS139. 39 RETAINED EARNINGS Under the single-tier tax systemwhich came into effect from the year of assessment 2008, companies are not required to have tax credits under Section 108 of the Income Tax Act 1967 for dividend payment purposes. Dividends paid under this system are tax exempt in the hands of shareholders. The Company has opted to pay single-tier dividends as it does not have any Section 108 tax credits. 40 BORROWINGS Group 2012 2011 RM’000 RM’000 Current Secured: Revolving credits – 461,634 Term loan 38,160 12,040 Unsecured: Bankers acceptances 561,000 288,300 599,160 761,974 Non-current Secured: Revolving credit – 1,387 Term loan 509 39,131 509 40,518 Notes to the Financial Statements for the financial year ended 31 December 2012