Serba Dinamik Annual Report 2016

138 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 13. CAPITAL AND RESERVES 13.1 Share capital Group and Company Amount Number 2016 of shares RM 2016 Ordina ry shares of RM0.50 each Authorised At date of incorporation 400,000 800,000 Created during the financial period 749,600,000 1,499,200,000 Closing balance 750,000,000 1,500,000,000 Issued and fully paid At date of incorporation 1 2 Issued during the financial period 531,799,999 1,063,599,998 Closing balance 531,800,000 1,063,600,000 The Company was incorporated with an authorised share capital of RM400,000 comprising 800,000 ordinary shares of RM0.50 each. Two ordinary shares of RM0.50 each were issued as subscribe share at par for cash upon incorporation. The Company created 1,499,200,000 new ordinary shares of RM0.50 each during the financial period, increasing its authorised share capital from RM400,000 to RM750,000,000. On 25 May 2016, the Company issued 1,063,599,998 ordinary shares of RM0.50 each as purchase consideration for the acquisition of entire issued and paid-up share capital of Serba Dinamik Group Berhad. 13.2 Merger deficit Pursuant to the restructuring in relation to the initial public offering, Serba Dinamik Holdings Berhad has acquired the shares in Serba Dinamik Group Berhad for a purchase consideration of RM531,799,999. The difference, net, of tax between the carrying value and acquisition consideration was treated as merger deficit. 13.3 Other reserves Group 2016 Note RM Foreign currency translation reserve 13.3.1 79,688,013 Statutory reserve 13.3.2 263,420 Capital redemption reserve 13.3.3 36,000,000 Capital gain on equity conversion 8,994,388 124,945,821