Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 108 SASBADI HOLDINGS BERHAD (1022660-T) I BER AD (10 2 60-T) 11. Capital and reserves (continued) 11.2 Share premium Share premium comprises the premium paid on subscriptions of shares in the Company over and above the par value of the shares. In accordance with Section 618 of the Companies Act 2016, any amount standing to the credit of the share premium account has become part of the Company’s share capital. The Company has twenty -four months upon the commencement of the Companies Act 2016 on 31 January 2017 to utilise on the credit. Included in share capital is share premium amounting to RM3,435,000 that is available to be utilised in accordance with Section 618(3) of the Companies Act 2016 on or before 30 January 2019 (24 months from commencement of Section 74). 11.3 Treasury shares The shareholders of the Company, by an ordinary resolution passed at the annual general meeting held on 19 January 2017, renewed their approval for the Company’s plan to purchase up to ten percent (10%) of its issued and paid- up capital at any point of time. During the financial year, the Company purchased 1,000 of its own shares from the open market at a price of RM1.11 per share, which was financed by internally generated funds. The purchased shares are being held as treasury shares in accordance with the requirements under Section 127 of the Companies Act 2016. 11.4 Merger deficit The merger deficit comprises the differences between the cost of acquisition and the nominal value of shares acquired during the acquisition of Sasbadi Sdn. Bhd. in 2014. 11.5 Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the investments are derecognised or impaired. 11.6 Revaluation reserve The revaluation reserve relates to the revaluation of condominiums, leasehold land and buildings.