Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 96 18. Capital and reserves (continued) (e) Foreign currency translation reserve Group 30.6.2021 31.12.2019 RM’000 RM’000 Foreign currency translation reserve 26,338 12,503 The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. (f) Other reserves Group Note 30.6.2021 31.12.2019 RM’000 RM’000 Statutory reserve i - 272 Capital redemption reserve ii 36,000 36,000 Capital gain on equity conversion iii 8,994 8,994 44,994 45,266 i. Statutory reserve In accordance with the provisions of the Bahrain Commercial Companies Law, Decree Number 21 of 2012 in a indirect subsidiary’s Memorandum and Articles of Association, an amount equivalent to 10% of the indirect subsidiary’s net profit before appropriation is required to be transferred to a non-distributable reserve account until such time as a minimum of 50% of the share capital is set aside. ii. Capital redemption reserve Capital redemption reserve was in relation to redeemable preference shares redeemed by subsidiaries, for which amount equivalents to the nominal value of such shares were transferred from retained earnings. iii. Capital gain on equity conversion Capital gain on equity conversion was in relation to share swap right exercised by one of its subsidiary.