Serba Dinamik Annual Report 2019

275 16. CAPITAL AND RESERVES (CONTINUED) 16.1 Share capital (continued) (ii) number of bonus shares of 881,099,921 pursuant to bonus issue on the basis of two bonus shares for every five subdivided shares; The issuance of 881,099,921 free warrants on the basis of two warrants for every five subdivided shares has been completed on 13 December 2019 following the listing and quotation of the warrants on the Main Market of Bursa Securities. On 30 January 2018, the Company has completed a private placement exercise, in which the Company issued 133.5 million new shares with an issue price of RM3.20 per share. 16.2 Merger reserve Pursuant to the restructuring in relation to the initial public offering, the Company has acquired the shares in SDGB for a purchase consideration of RM531,799,999. The difference, net of tax, between the carrying value and purchase consideration was treated as merger reserve. 16.3 Other reserves Group 2019 2018 Note RM’000 RM’000 Foreign currency translation reserve 16.3.1 12,503 23,159 Statutory reserve 16.3.2 272 275 Capital redemption reserve 16.3.3 36,000 36,000 Capital gain on equity conversion 16.3.4 8,994 8,994 57,769 68,428 ========== ========= 16.3.1 Foreign currency translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. 16.3.2 Statutory reserve In accordance with the provisions of the Bahrain Commercial Companies Law, Decree Number 21 of 2012 in an indirect subsidiary’s Memorandum and Articles of Association, an amount equivalent to 10% of the indirect subsidiary’s net profit before appropriation is required to be transferred to a non- distributable reserve account until such time as a minimum of 50% of the share capital is set aside. N O T E S T O T H E F I N A N C I A L S TAT E M E N T S