KUB Malaysia Berhad Annual Report 2021

30. SHARE CAPITAL Number of ordinary shares Amount 30.6.2021 31.12.2019 30.6.2021 31.12.2019 ’000 ’000 RM’000 RM’000 Issued and fully paid 556,465 556,465 228,863 228,863 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets. 31. RESERVES Group Company 30.6.2021 31.12.2019 30.6.2021 31.12.2019 RM’000 RM’000 RM’000 RM’000 Capital reserve (a) 25,371 34,016 - - Fair value adjustment reserve (b) 3,178 3,322 3,178 3,322 Merger reserve (c) 11,147 11,147 - - Discount paid on acquisition of non-controlling interest (d) 971 971 - - Total 40,667 49,456 3,178 3,322 (a) Capital reserve arose from the capitalisation of bonus shares issued by certain subsidiaries in prior years. A reduction of capital reserve amounting to RM8,645,000 was in relation to subsidiaries that were struck off in the current financial period. (b) Fair value adjustment reserve represents the cumulative fair value changes, net of tax, of financial asset fair value through other comprehensive income. Group/Company 30.6.2021 31.12.2019 RM’000 RM’000 As at 1 January 3,322 872 (Loss)/Gain on fair value (144) 2,450 As at 30 June/31 December 3,178 3,322 (c) Merger reserve amounting to approximately RM11,147,000 arose from the acquisition of KUB Ekuiti Sdn Bhd in 1997. (d) Discount on acquisition of non-controlling interest amounting to RM971,000 arose from the acquisition of remaining equity interest of KFT International (Malaysia) Sdn Bhd in 2011 of RM1,229,000 less premium paid on acquisition of Empirical Systems (M) Sdn Bhd of RM258,000 in 2014. 32. RETAINED EARNINGS AND DIVIDENDS The Company may distribute dividends out of its entire retained earnings as at 30 June 2021 under the single tier system. The Directors have recommended the first and final single tier dividend of 1.5 sen on 556,464,690 ordinary shares amounting to RM8,346,970 in respect of the financial period ended 30 June 2021. The proposed dividend is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company. The dividend will be accounted for in equity as an appropriation of retained earnings in the financial year ending 30 June 2022. 123 ANNUAL REPORT 2021 FINANCIAL STATEMENTS