Sasbadi Annual Report 2021

103 ANNUAL REPORT 2021 FINANCIAL STATEMENTS (continued) 103 18. SHARE CAPITAL AND RESERVES (a) Share capital Group and Company 2021 2020 Number Number of shares ’000 RM’000 of shares ’000 RM’000 Issued and fully paid up ordinary shares with no par value As at 1 September 419,100 108,210 419,100 108,210 Issuance pursuant to ESOS exercised 5,075 863 - - As at 31 August 424,175 109,073 419,100 108,210 i) The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one (1) vote per share at meetings of the Company. All ordinary shares rank pari passu with regard to the residual assets of the Company. ii) During the financial year, the issued and fully paid-up ordinary shares of the Company was increased from 419,099,500 to 424,174,500 by way of issuance of 5,075,000 new ordinary shares pursuant to options exercised under the ESOS at an exercise price of RM0.12 per ordinary share for cash. (b) Treasury shares The shareholders of the Company, by an ordinary resolution passed at the annual general meeting held on 4 February 2021, renewed their approval for the Company’s plan to purchase up to ten percent (10%) of the total number of issued shares at any point of time. The purchased shares are being held as treasury shares in accordance with the requirements under Section 127 of the Companies Act 2016. (c) 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. (d) Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of equity instruments designated at fair value through other comprehensive income until the investments are derecognised or impaired.