cont'd - KNM Steel Sdn Bhd

KNM GROUP BERHAD I Annual Report 201287Notes to the Financial Statements (cont’d)15. Capital and reserves (Cont’d)15.2 Treasury sharesOn 26 June 2012, the shareholders of the Company renewed the Company’s plan to repurchase itsown shares. During the financial year, the Company repurchased 20,000 of its issued ordinary shares ofRM1.00 each listed on the Main Market of Bursa Malaysia Securities Berhad from the open market at anaverage price of approximately RM0.72 per share. The total consideration paid was RM14,416 includingtransaction costs of RM116. The repurchase transactions were financed by internally generated funds.The shares repurchased are retained as treasury shares. None of the treasury shares held were resoldor cancelled during the financial year.As at 31 December 2012, the Company held 23,261,275 ordinary shares of RM1.00 each as treasuryshares out of its total issued and paid-up share capital. Hence, the number of outstanding shares inissue and paid-up after deducting treasury shares as at 31 December 2012 is 1,466,751,977 ordinaryshares of RM1.00 each. The treasury shares have no rights to voting, dividends or participation in otherdistribution.15.3 Revaluation reserveThe revaluation reserve relates to the revaluation of lands and buildings.15.4 Translation reserveThe translation reserve comprises all foreign currency differences arising from the translation of thefinancial statements of the Group entities with functional currency other than RM as well as the exchangedifferences arising from monetary items that in substance form the Company’s net investment insubsidiaries.15.5 Hedging reserveThe hedging reserve comprises the effective portion of the cumulative net change in the fair value ofcash flow hedges related to hedged transactions that have not yet occurred.15.6 Fair value reserveThe fair value reserve comprises the cumulative net change in the fair value of available-for-sale financialassets until the investments are derecognised or impaired.15.7 Warrant reserveThere were no warrants exercised since its issuance. The number of warrants unexercised at the endof the reporting period was 488,920,659 (2011: Nil).15.8 Retained earningsThe Finance Act 2007 introduced a single tier company income tax system with effect from 1 January2008. As such, the remaining Section 108 tax credit is available to the Company until such time thecredit is fully utilised or upon expiry of the six year transitional period on 31 December 2013, whicheveris earlier.