Eng - IOI Group

Notes To The Financial Statements cont’d32. RESERVESGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000(restated)(restated)Share premium 2,349,560 1,855,765 2,349,560 1,855,765Revaluation surplus - 82,290 - -Capital reserve (Note 32.1) 158,234 101,474 65,220 41,131Foreign currency translation reserve (101,977) (101,318) - -Negative goodwill - 6,512 - -Treasury shares, at cost (Note 32.2) - (108,188) - (108,188)2,405,817 1,836,535 2,414,780 1,788,708The movements in reserves are shown in the statements of changes in equity.32.1 Capital reserveGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000(restated)(restated)Net accretion in Group’s share of net assets arisingfrom shares issued by certain subsidiaries tominority shareholders 9,330 9,330 - -Equity component of 1 st Exchangeable Bonds (Note 34.2) - 50,194 - -Equity component of 2 nd Exchangeable Bonds (Note 34.3) 81,482 - - -Capital redemption reserve arising from the cancellationof treasury shares (Note 31) 34,520 27,164 34,520 27,164Share option reserve 32,902 14,786 30,700 13,967158,234 101,474 65,220 41,13132.2 Treasury sharesThe shareholders of the Company, by a special resolution passed in an extraordinary general meeting held on 18 November1999, approved the Company’s plan to repurchase up to 10% of the issued and paid-up share capital of the Company(“Share Buy Back”). The authority granted by the shareholders was subsequently renewed during the subsequent AnnualGeneral Meetings of the Company including the last meeting held on 30 October 2006.The Directors of the Company are committed to enhancing the value of the Company to its shareholders and believe that theShare Buy Back can be applied in the best interests of the Company and its shareholders.197ANNUAL REPORT 2007IOI Corporation Berhad