MKH Annual Report 2018

164 MKH Berhad Annual Report 2018 25. RESERVES The Group The Company 2018 2017 2018 2017 RM RM RM RM Non-distributable Translation reserve (6,240,848) (3,428,618) - - Revaluation reserve 23,402,037 23,533,537 620,407 646,907 Warrant reserve - 4,761,173 - 4,761,173 17,161,189 24,866,092 620,407 5,408,080 Distributable Retained earnings 880,819,793 838,813,182 374,512,623 345,514,351 897,980,982 863,679,274 375,133,030 350,922,431 Translation reserve The translation reserve comprises all foreign currency di erences arising from the translation of the financial statements of foreign operations as well as the foreign currency di erences 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. FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018 NOTES TO THE FINANCIAL STATEMENTS