Kimlun Corporation Berhad Annual Report 2018

Issue of shares During the financial year, the Company increased its issued and paid-up ordinary share capital from RM223,817,821 to RM237,451,519 by way of: (a) issuance of 11,243,464 ordinary shares arising from the DRP pertaining to the final (single tier) dividend of 5.50 sen in respect of the financial year ended 31 December 2017. (b) issuance of 102,700 ordinary shares arising from the exercise of Warrants 2014/2024, at the exercise price of RM1.68 per warrant. The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company. Warrants 2014/2024 Details of the Warrants 2014/2024 are disclosed in Note 27(b) to the financial statements. Other statutory information (a) Before the statements of comprehensive income and statements of financial position of the Group and of the Company were made out, the directors took reasonable steps: (i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision has been made for doubtful debts; and (ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise. (b) At the date of this report, the directors are not aware of any circumstances which would render: (i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; and (ii) the values attributed to current assets in the financial statements of the Group and of the Company misleading. (c) At the date of this report, the directors are not aware of any circumstances 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. (d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading. (e) As at the date of this report, there does not exist: (i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or (ii) any contingent liability of the Group and of the Company which has arisen since the end of the financial year. (f) In the opinion of the directors: (i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet its obligations when they fall due; and (ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Company for the financial year in which this report is made. Kimlun Corporation Berhad 57 DIRECTORS' REPORT (cont’d)