- 69 - Legal reserve Section 116 of the Public Companies Act B.E. 2535 requires that a company shall allocate not less than 5% of its annual net profit, less any accumulated losses brought forward (if any), to a reserve account (“legal reserve”), until this account reaches an amount not less than 10% of the registered authorised capital. The legal reserve is not available for dividend distribution. Treasury stock reserve The treasury stock reserve represents the amount appropriated from retained earnings equal to the cost of the Company’s own shares held by the Company. The treasury stock reserve is not available for dividend distribution. Other components of equity Exchange differences on translating financial statements The exchange differences on translating financial statements account within equity comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign operation. Remeasurement of investments in financial assets measured at fair value through other comprehensive income Gain or loss on remeasurement of investments in financial assets measured at fair value through other comprehensive income account within equity comprises the cumulative net change in the fair value of investments in financial assets until the investments are derecognised or impaired. Cash flow hedges The cash flow hedges account within equity comprises the cumulative net change in the fair value of cash flow hedges related to hedged transactions that have not yet occurred for effective portion. Movements in reserves Movements in reserves are shown in the statements of changes in equity. 26. TREASURY STOCK At the Board of Directors’ Meeting held on May 27, 2019, the Board approved a share repurchase program for financial management purpose not exceeding 50 million shares, or approximately 1.1 percent of the total issued shares, with the maximum amount of Baht 3,000 million. The Company may purchase the shares through the Stock Exchange of Thailand within 6 months, during the period from June 11, 2019 to December 9, 2019. Treasury stock has to be resold after 6 months but no later than 3 years from the completion date of share repurchases. On December 9, 2019, the Company has repurchased the shares under the program totalling 22.30 million shares, equivalent to 0.49% of issued share and paid-up capital, at a total cost of Baht 1,187.60 million with an equivalent amount had been appropriated from retained earnings to treasury stock reserve. At the Board of Directors’ Meeting of the Company held on May 24, 2021, the Board approved the sale of 22.30 million treasury shares, equivalent to 0.49% of issued share and paid-up capital. The specified selling period is from June 7, 2021 to December 9, 2022, which is subject to the basis of the Stock Exchange of Thailand. According to the notification of the Stock Exchange of Thailand, when selling treasury shares, the Company must disclose information to the Stock Exchange of Thailand. In September 2021, the Company has sold 22.30 million treasury shares, amounting to Baht 1,353.93 million and recognised surplus on treasury shares of Baht 166.33 million under shareholders’ equity in the consolidated and separate statements of financial position. As at December 31, 2021, the Company has no treasury shares outstanding. 301 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX
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