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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
21.
RESERVES (CONT’D)
Share premium (cont’d)
The share premium reserve represents the premium paid on subscription of ordinary shares in the Company over and
above the par value of the shares issued, net of transaction costs (if any). The share premium reserve is not distributable
by way of dividends and may be utilised in the manner set out in Section 60(3) of the Companies Act 1965.
Treasury shares
During the financial year, the Company repurchased 200,000 (2014: 3,020,000) of its issued ordinary shares from the
open market at an average price of RM0.168 (2014: RM0.122) per share. The total consideration paid for the repurchase
including transaction costs amounted to RM33,751 (2014: RM369,268). The total consideration paid for the repurchase
was financed by internally generated funds. The shares repurchased are being held as treasury shares in accordance
with Section 67A of the Companies Act 1965 and are presented as a deduction from total equity.
As at 31 December 2015, the Company held 5,066,600 (2014: 4,866,600) treasury shares at a carrying amount of
RM598,746 (2014: RM564,995).
As at 31 December 2015, the number of outstanding ordinary shares in issue after the set-off of 5,066,600 (2014:
4,866,600) treasury shares held by the Company is 1,048,368,530 (2014: 1,006,541,560) ordinary shares of RM0.10
each.
Foreign currency translation reserve
Foreign currency translation differences arose from the translation of the financial statements of foreign subsidiaries and
the Group’s share of an associate’s foreign currency translation differences are taken to the foreign currency translation
reserve as described in the significant accounting policies.
Warrant reserve
The warrant reserve arose from
288,973,760 free new detachable warrants (“Warrants”) which were listed on Bursa
Malaysia Securities Berhad on 16 March 2010 pursuant to the rights issue.
During the year, the Company issued 42,026,970 new ordinary shares of RM0.10 each pursuant to the exercise of
42,026,970 warrants at an exercise price of RM0.18 per warrant. The subscription rights of the Warrants expired on 10
March 2015 and the said warrants were removed from the official list of Bursa Malaysia Securities Berhad on 11 March
2015.
Statutory reserve
The statutory reserve is maintained by the Group’s subsidiary in Taiwan in accordance with the regulations in that
country.
Retained earnings
Under the single tier tax system, tax on the Company’s profits is the final tax and accordingly, any dividends to the
shareholders are not subject to tax.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)