Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 107 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 28. Share capital, share premium and treasury shares (cont’d) (a) Share capital During the financial year, the Company increased its issued and paid-up ordinary share capital from RM155,144,969 to RM223,817,821 by way of: (i) issuance of 9,199,803 ordinary shares arising from the DRP pertaining to the final (single tier) dividend of 6.50 sen in respect of the financial year ended 31 December 2016. (ii) issuance of 1,055,200 ordinary shares arising from the conversion of Warrants 2014/2024, at the exercise price of RM1.68 per warrant. The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions and rank equally with regard to the Company’s residual assets. Dividends to owners of the Company and non-controlling interests are recognised in the statement of changes in equity in the period in which they are declared. (b) Treasury shares Treasury shares relate to ordinary shares of the Company that are held by the Company. The amount consists of the acquisition costs of treasury shares. The directors of the Company are committed to enhance the value of the Company for its shareholders and believe that the share purchase plan can be applied in the best interests of the Company and its shareholders. Implementation of Companies Act 2016 (i) Under Companies Act 2016 in Malaysia, which came into effect on 31 January 2017, the concept of authorised share capital is no longer applicable. (ii) In accordance with Section 74 of the Companies Act 2016 in Malaysia, the Company’s share no longer have a par or nominal value with effect from 31 January 2017. Pursuant to Section 618 of the Companies Act 2016 in Malaysia, the amount standing to the credit of the Company’s share premium account became part of the Company’s share capital. There is no impact on the number of shares in issue or the relative entitlement of any members of the Company as a result of this transition. 29. Retained earnings The entire retained earnings of the Company as at 31 December 2017 and 2016 may be distributed as dividends under single tier system. 30. Other reserves Group Company 2017 2016 2017 2016 RM RM RM RM Foreign currency translation reserve At 1 January (50,037) (44,796) - - Foreign currency translation (20,549) (5,241) - - At 31 December (70,586) (50,037) - - Warrant reserve At 1 January 34,865,250 34,865,250 34,865,250 34,865,250 Conversion of warrants (612,016) - (612,016) - At 31 December 34,253,234 34,865,250 34,253,234 34,865,250 34,182,648 34,815,213 34,253,234 34,865,250