MKH Annual Report 2017

24. SHARE CAPITAL (continued) The Company’s authorised and issued and fully paid-up share capital in 2016 comprises ordinary shares with a par value of RM1 each. The Companies Act, 2016 (the “Act”), which came into effect on 31 January 2017, introduces the “no par value” regime. Accordingly, the concepts of “authorised share capital” and “par value” have been abolished. Consequently, balances within the share premium account have been transferred to the share capital account pursuant to the transitional provisions set out in Section 618 (2) of the Act. Notwithstanding this provision, the Company has elected to utilise its share premium account of RM785,179 for purposes stipulated in Section 618 (3) of the Act for a transitional period of 24 months from 31 January 2017. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets. During the financial year, the issued and paid-up share capital of the Company increased from RM419,443,984 to RM613,315,284 by way of the following: (i) renounceable rights issue of 42,625,187 rights shares on the basis of one (1) rights share for every ten (10) existing MKH shares at an issue price of RM1.89 for each rights share and net of share issue expenses of RM1,704,487; (ii) bonus issue of 85,250,374 new ordinary shares via capitalisation from retained earnings on the basis of two (2) bonus shares for every one (1) rights share subscribed by the shareholders; (iii) exercise of 6,807,895 warrants for 6,807,895 ordinary shares at a subscription price of RM1.89 per share; (iv) exercise of 8,774,482 warrants for 8,774,482 ordinary shares at a subscription price of RM1.55 per share; and (v) transfer from share premium of RM785,179 pursuant to section 618 (2) of the Act. The new ordinary shares issued rank pari passu in all respects with the existing shares of the Company. 25. RESERVES The Group The Company 2017 2016 2017 2016 RM RM RM RM Non-distributable Share premium - 57,081 - 57,081 Translation reserve (3,428,618) (560,874) - - Revaluation reserve 23,533,537 23,533,537 646,907 646,907 Warrant reserve 4,761,173 8,000,533 4,761,173 8,000,533 24,866,092 31,030,277 5,408,080 8,704,521 Distributable Retained earnings 838,813,182 825,810,815 345,514,351 412,721,156 863,679,274 856,841,092 350,922,431 421,425,677 Notes to the Financial Statements For the Financial Year ended 30 September 2017 161 MKH Berhad • Annual Report 2017