MKH Annual Report 2017

25. RESERVES (continued) 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 exercise price was adjusted to RM1.89 and RM1.55 per share pursuant to the bonus issue on 20 May 2014 and rights with bonus issue on 1 June 2017 respectively. The movement in the Company’s warrants to subscribe for new ordinary shares during the financial year is as follows: Number of warrants At Adjustment for At 1 October rights with 30 September 2016 bonus issue Exercised 2017 Number of warrants 34,583,440 6,094,716 (15,582,377) 25,095,779 The weighted average quoted price of shares of the Company at the time when the warrants were exercised was RM2.63 (2016: RM2.53). 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 2017 162 MKH Berhad • Annual Report 2017