KENANGA ANNUAL REPORT 2017

27. SHARE CAPITAL Authorised share capital The Authorised share capital has been removed after the Companies Act 2016 (“New Act”) was enacted to replace the Companies Act 1965 in Malaysia. Related details of the New Act are described under Note 53 (2). Group and Bank Number of Ordinary Shares Amount 2017 2016 2017 2016 ‘000 ‘000 RM’000 RM’000 Issued and fully paid: Ordinary shares At 1 January 722,547 770,000 180,637 770,000 Capital reduction – (47,453) – (47,453) Par value reduction – – – (541,910) Transfer from share premium # – – 65,500 – At 31 December 722,547 722,547 246,137 180,637 # Transferred pursuant to the New Act. 28. RESERVES Note Group Bank 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM’000 Non-distributable: Capital reserve 88,938 88,938 153,863 153,863 Share premium (a) – 65,500 – 65,500 Statutory reserve (b) – 465,741 – 465,741 Available-for-sale deficit (c) (6,629) (11,034) (4,840) (7,373) Exchange reserve (d) 17,398 24,388 – – Regulatory reserve (e) 25,277 23,929 25,277 23,929 124,984 657,462 174,300 701,660 Retained profits 520,345 47,857 513,726 20,209 645,329 705,319 688,026 721,869 The nature and purpose of each category of reserves are as follows: (a) The share premium arose from shares issued as part of consideration for the acquisition of the entire issued and paid-up share capital of ECML Berhad. It has been transferred to share capital pursuant to the New Act. (b) The statutory reserve is maintained by the Bank in compliance with the requirements of BNM Guidelines on Capital Funds, pursuant to Section 47(2)(f) of the Financial Services Act 2013 and is not distributable as cash dividends. It has been transferred to retained earnings pursuant to the removal of reserve fund requirement by BNM effective 3 May 2017. Annual Report 2017 31 December 2017 151 notes to the financial statements