MKH Annual Report 2019

187 M K H B e r h a d 26. RESERVES (CONT’D) The Company 30.9.2019 30.9.2018 1.10.2017 RM RM RM Non-distributable Revaluation reserve 620,407 620,407 646,907 Warrant reserve - - 4,761,173 620,407 620,407 5,408,080 Distributable Retained earnings 402,096,741 374,512,623 345,514,351 402,717,148 375,133,030 350,922,431 Translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations as well as the foreign currency differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation or another currency. Revaluation reserve The revaluation reserve relates to the revaluation of land and buildings. Warrant reserve On 31 December 2012, the Company allotted and issued 29,104,378 free warrants constituted under the deed poll dated 23 November 2012. The salient features of the warrants are as follows: (i) entitles its registered holders to subscribe for one (1) new ordinary share at the exercise price during the exercise period; (ii) the exercise price is RM2.26 per share subject to adjustments in accordance with the provisions of the deed poll executed; and (iii) the warrants may be exercised at any time for a period of five years from 31 December 2012 to 30 December 2017 (“exercise period”). Warrants that are not exercised during the exercise period will thereafter lapse and become void. The warrants expired on 29 December 2017. Retained earnings Distributable reserves are those available for distribution as dividends. The entire retained earnings of the Company are available to be distributed as single tier dividends to the shareholders of the Company. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019