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GB Auto and its subsidiaries (S.A.E.)
Notes to the consolidated financial statements For the financial Year ended December 31, 2014
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)
24. Legal reserve
Restated
December
31, 2014
December
31, 2013
Restated Balance at 1 January
265 125
225 469
Transferred to legal reserve
2 231
63 270
Changing in minority without changing in control
(91)
-
Reclassification
-
(23 614)
Balance at the end of the year
267 265
265 125
In accordance with the Companies Law No 159 of 1981 and the Company’s articles of association, 5% of annual net profit is
transferred to the legal reserve. Upon the recommendation of the management, the Company may stop such transfer when
the legal reserve reaches 50% of the issued capital. The legal reserve is not eligible for distribution to shareholders.
The legal reserve included amount of EGP 66 667 related to the Company, the rest of the balance represents the legal reserve
of the Group’s Companies.
Share premium
The share premium was transferred to the legal reserve and special reserve according to Law No. 159 of 1981, based on the
authorization of the General Assembly Meeting dated 29 March 2008:
December
31, 2014
December
31, 2013
Share premium
1 175 691
1 175 691
Less
Issuance cost
(35 878)
(35 878)
Share premium of the shares of the Company held by the group
(99 725)
(99 725)
Share premium balance
1 040 088
1 040 088
Transferred to legal reserve
(64 400)
(64 400)
975 688
975 688
The share premium is the difference between the amount paid and par value for issued shares:
Paid amount
No. of shares
(in thousands)
Face value Issued capital
shares issuance
premium
Public subscription
277 500
7 500
EGP 1
7 500
270 000
Private subscription
618 357
16 712
EGP 1
16 712
601 645
Private subscription ( for
Cairo Individual Transport In-
dustrial shareholders)- ”CITI”
209 997
5 676
EGP 1
5 676
204 321
Private subscription (Almora
Resources Company)
103 000
3 275
EGP 1
3 275
99 725
1 208 854
33 163
33 163
1 175 691
Ghabbour Auto | 2014 ANNUAL REPORT
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