EXCEL FORCE MSC BERHAD Annual Report 2017

89 15. Reserves Group Company 2017 2016 2017 2016 Note RM RM RM RM Non-distributable Share premium (a) - 56,768 - 56,768 Other reserve (b) (80,745) - - - Distributable Retained earnings (c) 25,909,341 24,757,733 26,124,151 25,071,929 25,828,596 24,814,501 26,124,151 25,128,697 (a) Share premium Share premium comprises the premium paid on subscription of shares in the Company over and above the par value of the shares. Prior to 31 January 2017, the application of the share premium account was governed by Sections 60 and 61 of the Companies Act, 1965. In accordance with the transitional provisions set out in Section 618(2) of the Act on 31 January 2017, the amounts standing to the credit of the share premium account become part of the Company’s share capital (Note 14). Notwithstanding this provision, the Company may within 24 months from the commencement of the Act, use the amount standing to the credit of its share premium account of RM56,768 for purposes as set out in Sections 618(3) of the Act to pay up the unissued shares and for the bonus issue pursuant to Section 618(4) of the Act. (b) Other reserve Other reserve represents the difference between the Group’s share of net assets before and after the acquisition of equity interest from its non-controlling interests. (c) Retained earnings The entire retained earnings of the Company are available for distribution as single-tier dividends. Notes To The Financial Statements 31 December 2017 (cont’d)