NOTES TO THE FINANCIAL STATEMENTS CONTINUED Notes to and forming part of the Consolidated Financial Statements For the period from incorporation to 26 June 2004 Nature and purpose of reserves  Foreign currency translation reserve.  Exchange differences which arise on translation of the foreign controlled entity are taken to the  foreign currency translation reserve (refer Note 1(c)(iii)). The above amounts represent the balance of the franking account as at the end of the financial  period, adjusted for: The amount recorded above as the franking credit amount is based on the amount of Australian income  tax paid or to be paid in respect of the liability for income tax at the balance date. 68 Consolidated Parent  entity  entity 2004 2004 $’000 $’000 Reserves Foreign currency translation reserve  2  0 Movements  Balance at the beginning of the financial period  0  0  Net exchange difference on translation of foreign controlled entity  2  0 Reserves at the end of the financial period  2  0 Retained earnings Balance at the beginning of the financial period  0  0  Net profit/(loss) for the financial period attributable to shareholders of Super Cheap Auto Group Limited  2,767  0 Dividends provided for or paid  0  Retained profits/(losses) at the end of the financial period  2,767  0 RESERVES AND RETAINED EARNINGS 24 Parent  entity 2004 $’000 Ordinary shares No dividends were declared or paid by  Super Cheap Auto Group Limited during the reporting period.  0 Total dividends provided and paid  0 During the period, Super Cheap Auto Pty Ltd paid a $5 million dividend which had been declared at 30 June 2003. Super Cheap Auto Pty Ltd declared an interim dividend of $5 million to its shareholders  prior to its acquisition by the Company. This dividend will be paid in August 2004. Franking credits  The franked portions of dividends paid after 26 June 2004 will be franked out of existing franking credits and out of franking credits arising from the payments of income tax in the years ending after 26 June 2004.  Franking credits remaining at balance date available for dividends declared after the current balance date based on a tax rate of 30%  15,926 DIVIDENDS 25 • franking credits that will arise from the payment of the current tax liability; and, 