Datasonic Group Berhad Annual Report 2019

Directors’ Report (Cont’d) RESERVES AND PROVISIONS Therewere nomaterial transfers to or from reserves or provisions during the financial year other than those disclosed in the financial statements. ISSUES OF SHARES AND DEBENTURES During the financial year:- (a) there were no changes in the issued and paid-up share capital of the Company; and (b) there were no issues of debentures by the Company. OPTIONS GRANTEDOVER UNISSUED SHARES During the financial year, no options were granted by the Company to any person to take up any unissued shares in the Company. WARRANTS 2018/2023 The Company had on 6 July 2018 issued 675,000,000 freeWarrants on the basis of one (1) Warrant for every two (2) existing ordinary shares. The Warrants are constituted by a Deed Poll dated 18 June 2018. The salient terms of the Warrants 2018/2023 are as follows:- (a) Each Warrant entitles the registered holder to subscribe for one (1) new ordinary share in the Company at any time on or before the maturity date, 5 July 2023, falling five (5) years from the date of issue of the Warrants. UnexercisedWarrants after the exercise period will thereafter lapse and cease to be valid; (b) The exercise price of the Warrants is fixed at RM1.09 per Warrant; (c) The new ordinary shares to be issued upon the exercise of theWarrants shall rank pari passu in all respects with the existing ordinary shares of the Company; and (d) The Warrants were listed and quoted on the Main Market of Bursa Securities on 12 July 2018. As at the end of the financial year, 675,000,000Warrants remained unexercised. BAD AND DOUBTFUL DEBTS Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for impairment losses on receivables, and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for impairment losses on receivables. At the date of this report, the directors are not aware of any circumstances that would require the further writing off of bad debts, or the additional allowance for impairment losses on receivables in the financial statements of the Group and of the Company. 89 DATASONIC GROUP BERHAD (Company No. 809759-X) ANNUAL REPORT 2019