Frontken Berhad Annual Report 2016

105

Frontken Corporation Berhad (651020-T)

ANNUAL REPORT

2016

21. RESERVES (CONT’D)

Share premium

The Group and

The Company

2016

2015

At beginning of year

13,581,839

9,336,705

Issue of 42,026,970 ordinary shares at a premium of RM0.08 per

ordinary share from exercise of

42,026,970

warrants

3,362,158

Transfer from warrant reserve upon exercise and expiry of the warrant

882,976

At end of year

13,581,839

The share premium reserve represents the premium paid on subscription of ordinary shares in the Company over and

above the par value of the shares issued, net of transaction costs (if any). The share premium reserve is not distributable

by way of dividends and may be utilised in the manner set out in Section 60(3) of the Companies Act 1965.

Treasury shares

During the financial year, the Company repurchased 400,000 (2015: 200,000) of its issued ordinary shares from the

open market at an average price of RM0.16 (2015: RM0.168) per share. The total consideration paid for the repurchase

including transaction costs amounted to RM64,491 (2015: RM33,751). The total consideration paid for the repurchase

was financed by internally generated funds. The shares repurchased are being held as treasury shares in accordance

with Section 67A of the Companies Act 1965 and are presented as a deduction from total equity.

As at 31 December 2016, the Company held 5,466,600 (2015: 5,066,600) treasury shares at a carrying amount of

RM663,237 (2015: RM598,746).

As at 31 December 2016, the number of outstanding ordinary shares in issue after the set-off of 5,466,600 (2015:

5,066,600) treasury shares held by the Company is 1,047,968,530 (2015: 1,048,368,530) ordinary shares of RM0.10

each.

Foreign currency translation reserve

Foreign currency translation differences arose from the translation of the financial statements of foreign subsidiaries and

the Group’s share of an associate’s foreign currency translation differences are taken to the foreign currency translation

reserve as described in the significant accounting policies.

Warrant reserve

The warrant reserve arose from

288,973,760 free new detachable warrants (“Warrants”) which were listed on Bursa

Malaysia Securities Berhad on 16 March 2010 pursuant to the rights issue.

In the previous financial year, the Company issued 42,026,970 new ordinary shares of RM0.10 each pursuant to the

exercise of 42,026,970 warrants at an exercise price of RM0.18 per warrant. The subscription rights of the Warrants

expired on 10 March 2015 and the said warrants were removed from the official list of Bursa Malaysia Securities Berhad

on 11 March 2015.

Statutory reserve

The statutory reserve is maintained by the Group’s subsidiary in Taiwan in accordance with the regulations in that

country.

Notes To The Financial Statements

(cont’d)