MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 305 MISC BERHAD ANNUAL REPORT 2018 304 26. TRADE AND OTHER PAYABLES (CONT'D.) (a) Trade payables Trade payables are non-interest bearing and the normal trade credit terms granted to the Group ranges from 14 to 90 days (2017: 14 to 90 days). (b) Other payables and amounts due to related parties The non-trade balances due to holding company, subsidiaries, fellow subsidiaries, associates and joint ventures are repayable on demand and are non-interest bearing. (c) Provisions Group Corporation 2018 RM'000 2017 RM'000 2018 RM'000 2017 RM'000 At 1 January 82,509 1,024,813 74,057 997,110 Arose during the year (Note 5) - 45,512 - 45,512 Utilised (11,123) (903,994) (10,425) (886,528) Reversal of provision - (57,957) - (57,957) Unwinding of discount - 19,680 - 19,680 Currency translation differences 1,331 (45,545) 1,318 (43,760) At 31 December 72,717 82,509 64,950 74,057 27. SHARE CAPITAL AND TREASURY SHARES Group and Corporation Number of shares Amount Share Capital '000 Treasury Share '000 Share Capital (iii) RM'000 Share Premium RM'000 Total Share Capital and Share Premium RM'000 Treasury Shares RM'000 At 1 January 2018 4,463,794 - 8,923,262 - 8,923,262 - Purchase of treasury shares (i) - (47) - - - (271) At 31 December 2018 4,463,794 (47) 8,923,262 - 8,923,262 (271) At 1 January 2017 4,463,794 - 4,463,794 4,459,468 8,923,262 - Add: Transitioning to non-par value regime (ii) - - 4,459,468 (4,459,468) - - At 31 December 2017 4,463,794 - 8,923,262 - 8,923,262 - (i) During the financial year, the Corporation had repurchased a total of 47,400 ordinary shares from the open market at an average price of RM5.69 per share for a total consideration of RM270,846 including transaction costs which were financed from internally generated funds. The repurchased shares are held as treasury shares in accordance with the requirement of Section 127 of the Companies Act, 2016. As at 31 December 2018, the total number of treasury shares held is 0.001% of the total paid up share capital of the Corporation. (ii) The Companies Act, 2016 (the “Act”), which came into effect on 31 January 2017, abolished the concept of authorised share capital and par value of share capital. Consequently, the amounts outstanding in the share premium account become part of the Corporation share capital pursuant to the transitional provision set out in Section 618(2) of the Act. Notwithstanding this provision, the Corporation may within 24 months from the commencement of the Act, use the amount outstanding in the share premium account of RM4,459,468,000 for purposes as set out in Section 618(3) of the Act. There is no impact on the numbers of ordinary shares in issue or the relative entitlement of any of the members as a result of this transition. (iii) The Group has one authorised and issued special preference share of RM1. The special preference share, which may only be held by the Ministry of Finance ("MoF") or its successors or any Minister, representative, or any person acting on behalf of the Government of Malaysia, carries rights as provided by Article 3B of the Corporation's Articles of Association. Certain matters, in particular the alterations of specified Articles of Association, require the prior approval of the holder of the special preference share. The holder of the special preference share is not entitled to any dividend nor to participate in the capital distribution upon dissolution of the Corporation but shall rank for repayment in priority to all other shares. The share does not carry any right to vote at General Meetings but the holder is entitled to attend and speak at such meetings.