Annual Report 2012 - IOI Group

32. RESERVES (Continued)32.2 Treasury shares (Continued)During the financial year, the Company repurchased its issued ordinary shares of RM0.10 each from the open market as follows:Purchase Price Per ShareCost Highest Lowest AverageNo. of Shares RM RM RM RM2012At beginning of financial year – – – – –Purchased during the financial yearJuly 2011 788,000 4,042,677 5.13 5.13 5.13August 2011 26,047,200 125,000,255 5.16 4.42 4.80November 2011 200,000 1,004,504 5.02 5.02 5.02May 2012 1,905,900 9,568,376 5.02 5.02 5.0228,941,100 139,615,812 5.16 4.42 4.82At end of financial year 28,941,100 139,615,812 5.16 4.42 4.822011At beginning of financial year 298,418,700 1,767,552,752 7.47 2.17 5.92Cancellation (298,418,700) (1,767,552,752)At end of financial year – –On 2 March 2011, the Company cancelled all its accumulated 298,418,700 treasury shares with a carrying amount ofRM1,767,552,752 or at an average price of RM5.92 per ordinary share of RM0.10 each.The transactions under Share Buy Back were financed by internally generated funds. The ordinary shares of the Companyrepurchased were held as treasury shares in accordance with the provision of Section 67A of the Companies Act, 1965 inMalaysia.32.3 Foreign currency translation reserveThe foreign currency translation reserve is used to record foreign currency exchange differences arising from the translationof the financial statements of foreign operations whose functional currencies are different from that of the Group’spresentation currency. It is also used to record the exchange differences arising from monetary items, which form part of theGroup’s net investment in foreign operations, where the monetary item is denominated in either the functional currency ofthe reporting entity or the foreign operation.33. RETAINED EARNINGSThe Company is under the single tier system and as a result, there is no restriction on the Company to frank the payment ofdividends out of its entire retained earnings as at the end of the reporting period.Annual Report 2012IOI CORPORATION BERHAD 195