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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
DIRECTORS’ REPORT
(cont’d)
TREASURY SHARES (CONT’D)
As at 31 December 2015, the Company held 5,066,600 treasury shares at a carrying amount of RM598,746. Relevant details
on the treasury shares are disclosed in Note 21 to the financial statements.
OPTIONS GRANTED OVER UNISSUED SHARES
Warrants
The Company had issued 288,973,760 Warrants which were listed on Bursa Malaysia Securities Berhad on 16 March 2010
pursuant to the rights issue on the basis of two Warrants for every two Rights Shares subscribed.
The Warrants are constituted by a Deed Poll dated 22 January 2010 executed by the Company. Each Warrant entitles the
registered holder during the exercise period to subscribe for one new ordinary share at the exercise price of RM0.18 per
Warrant, subject to adjustment in accordance with the provisions of the Deed Poll. The Warrants not exercised at the date
of maturity will thereafter lapse and cease to be valid for any purpose.
The summary of the movements of Warrants is as follows:
Number of Warrants
Issue date
Expiry date
Balance as of
1.1.2015
Exercised
Lapsed
Balance as of
31.12.2015
11.3.2010
10.3.2015
288,973,760
42,026,970
246,946,790
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The ordinary shares to be issued upon the exercise of Warrants shall rank pari passu in all respects with the existing issued
ordinary shares of the Company except that they shall not be entitled to any dividends, rights, allotments and/or other
distributions, the entitlement date of which is prior to the date of allotment of the new shares arising from the exercise of
Warrants.
OTHER FINANCIAL INFORMATION
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps:
(a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance
for impairment losses on receivables, and had satisfied themselves that all known bad debts had been written off and
that adequate allowance had been made for impairment losses on receivables; and
(b) to ensure that any current assets other than debts which were unlikely to realise their book values in the ordinary course
of business had been written down to their estimated realisable values.
At the date of this report, the directors are not aware of any circumstances:
(a) which would cause the amount written off for bad debts or the amount of allowance for impairment losses on receivables
in the financial statements of the Group and of the Company to be inadequate to any substantial extent; or
(b) which would render the values attributed to current assets in the financial statements of the Group and of the Company
misleading; or
(c) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and
of the Company misleading or inappropriate; or
(d) not otherwise dealt with in this report or financial statements which would render any amount stated in the financial
statements of the Group and of the Company misleading.