89 / 113
• The subscription was covered by an amount of EGP 958 672 188 (EGP 473 225 502 in Cash and EGP 485 446 686 covered
through the outstanding balances due to shareholders) divided on 958 672 188 shares with a par value of 1 EGP each
to be the total capital issued and fully paid after the increase equals to EGP 1 094 009 733, it has been annotated in the
commercial register at May 31, 2015.
20 Shares of the Company held by the Group
Shares of the Company held by the Group represented in the shares owned by one of the Companies of the Group amounted to
26 506 119 shares at the par value of EGP 26 506 thousand in GB Auto Company capital which is acquired by Almora resources
Company one of the Group subsidiaries which is 100% owned.
The acquisition cost amounted to EGP 126 231 thousands. The share premiumwhich is transferred to special reserve has been
reduced by the difference between the acquisition cost and the par value amounted to EGP 99 725 thousands.
21 Legal reserve
December 31, 2016
December 31, 2015
Balance at 1 January
296 570
267 265
Transferred to legal reserve
14 555
29 305
Balance at the endof the year
311 125
296 570
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 board, 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 includes an amount of EGP 66 762 related to the Company, the rest of the balance represents the legal reserve
of the Group’s Companies.
Share premium
The share premiumrepresented in the difference between the amount paid andpar value for issued shares and issuance cost is
deducted fromit. The share premiumwas transferred to both legal reserve and special reserve according to LawNo. 159 of 1981,
based on the authorization of the General AssemblyMeeting dated 29March 2008:
December 31, 2016
December 31, 2015
Share premium
975 688
975 688
22 Other reserves
Foreign cur-
rency transla-
tion reserve
ESOP
(Fair value)
reserve
Surplus
Revaluation
of fixed assets
reserve
Share
premium
(special
reserves)
Total
Balance as at 1 January2016
115 275
67 777
2498
967439 1 152989
Foreigncurrency translationdifferences
1 120 236
-
-
-
1 120 236
ESOP fair value
-
18 663
-
-
18 663
Modification surplus of fixed assets after
income tax
-
-
257 078
-
257 078
Balance atDecember 31, 2016
1 235 511
86440
259 585
967439 2 548975
2016 ANNUAL REPORT
87
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2016
(In thenotes all amounts are shown inThousandEgyptianPounds unless otherwise stated)