DESTINI AR 2017

21. Share Premium Group and Company 2017 2016 RM RM At 1 January 267,283,851 195,716,337 Warrant exercised - 71,567,514 Transition to no-par value regime on 31 January 2017 (267,283,851) - At 31 December - 267,283,851 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 Section 60 of the Companies Act, 1965. In accordance with the transitional provisions set out in Section 618(2) of the new Companies Act, 2016 (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 20). 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 RM267,283,851 for purposes as set out in Section 618(3) of the Act. 22. Foreign Currency Translation Reserve The exchange translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. 23. Employees Share Option Scheme (“ESOS”) At an extraordinary general meeting held on 10 February 2014, the Company’s shareholders approved the establishment of an ESOS for eligible Directors and employees of the Group. The ESOS is administered by a committee (“ESOS Committee”). The ESOS became effective for a period of five (5) years from 17 April 2014 to 16 April 2019. All ESOS have been fully exercised and no share option was granted during the financial year. The salient features of the ESOS scheme are, inter alia, as follows: (i) Eligible employees include Directors of the Company and confirmed full time employees of the Company and its eligible subsidiaries or under a fixed term employment contract, the contract should be for a duration of at least one (1) year, shall have attained the age of eighteen (18) years old and have served for at least one year of full continuous service in the Group. (ii) The aggregate number of shares to be issued under the ESOS shall not exceed 15% of the total issued and paid-up ordinary share capital of the Company at the point in time during the tenure of the ESOS. (iii) The new Company’s shares of RM0.10 each (“new Shares”) to be allotted and issued upon the exercise of the ESOS option shall, upon allotment and issue, rank pari passu in all respects with the existing Company’s ordinary shares of RM0.10 each save and except that the new Shares will not be entitled to any distributions made or paid prior to the date of allotment of the new Shares. The ESOS option shall not carry any right to vote at a general meeting of the Company. (iv) The Scheme shall be in force for a period of five (5) year commencing from the effective date. The Scheme may be extended by the Board of Director at its absolute discretion, without having to obtain approval from the Company’s shareholders, for a further period of up to five (5) years immediately from the expiry of the first five (5) years but will not in aggregate exceed ten (10) years. 144 DESTINI BERHAD Financial Statements Notes to the 31 December 2017