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Notes to the Consolidated Financial Statements

31st March 2018

31 BALANCE SHEET OF THE COMPANY (CONTINUED)

Note (a)
Reserves movement of the Company

Capital Staff
Share redemption Contributed compensation Retained
premium reserve surplus reserve earnings Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1st April 2016 309,674 1,012 40,586 11,783 708,661 1,071,716
Comprehensive income
Profit for the year – – – – 174,133 174,133
Transactions with owners
2017 interim dividend – – – – (28,969) (28,969)
2016 final dividend – – – – (173,810) (173,810)

Total transactions with owners – – – – (202,779) (202,779)

At 31st March 2017 309,674 1,012 40,586 11,783 680,015 1,043,070
At 1st April 2017 309,674 1,012 40,586 11,783 680,015 1,043,070
Comprehensive income
Profit for the year – – – – 80,102 80,102
Transactions with owners
Repurchase of own shares (1,396) 77 – – (77) (1,396)
2018 interim dividend – – – – (17,358) (17,358)
2017 final dividend – – – – (28,968) (28,968)
Total transactions with owners (1,396) 77 – – (46,403) (47,722)

At 31st March 2018 308,278 1,089 40,586 11,783 713,714 1,075,450

Note:

The contributed surplus of the Company, which arose from a corporate reorganisation in November 1992, represents the difference between
the nominal value of the Company’s shares issued in exchange for the issued ordinary shares of Alco Investments (B.V.I.) Limited and the
value of net assets of the underlying subsidiaries acquired as at 6th November 1992. Under the Companies Act 1981 of Bermuda (as
amended), a company may not declare or pay a dividend, or make a distribution out of contributed surplus, if there are reasonable grounds
for believing that (i) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (ii) the realisable value
of the company’s assets would thereby be less than the aggregate of its liabilities and its issued share capital and share premium accounts.
Otherwise the contributed surplus is distributable.

118 ALCO HOLDINGS LIMITED ANNUAL REPORT 2018