BIMB Integrated Annual Report 2019

56 PRIOR YEAR ADJUSTMENTS The prior year adjustments are to restate the comparatives for the understatement of dividend income from prior periods as a result of incorrect timing of dividend income recognition. The effects of the restatement of the financial statements are summarized below: Company 1 January 2018 As previously reported Adjustment Restated RM’000 RM’000 RM’000 Other financial assets at amortised cost 1,951 73,733 75,684 Retained earnings 67,612 73,733 141,345 31 December 2018 As previously reported Adjustment Restated RM’000 RM’000 RM’000 Other financial assets at amortised cost 1,215 73,733 74,948 Retained earnings 83,873 73,733 157,606 57 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR BIMB Holdings Berhad (“BHB”) has on 11 December 2019 announced that it proposes to undertake the following proposals: (i) Proposed placement Proposed placement of new ordinary shares in BHB to raise gross proceeds of up to RM800 million. The proceeds together with internal cash will be used to fully settle BHB’s outstanding sukuk. (ii) Proposed scheme of arrangement Proposed payment to the warrantholder of the outstanding warrants 2013/2023 of BHB by way of a scheme of arrangement under section 366 of the Companies Act 2016 (“the Act”). The total warrants consideration to be paid by BHB will be funded using internally generated funds of BHB. (iii) Proposed Internal Reorganisation BHB proposes to undertake the proposed internal reorganisation which will entail the disposal by BHB of its entire shareholdings in the identified subsidiaries namely BIMB Securities (Holdings) Sdn. Bhd., BIMB Securities Sdn. Bhd. and Syarikat Al Ijarah Sdn. Bhd. to its wholly owned subsidiary, Bank Islam Malaysia Berhad (“Bank Islam” or “the Bank”) to be fully settled in cash. The consideration for these disposals will be based on the latest audited net asset value of these subsidiaries at the time of the signing of the share sale agreement with the Bank and will be funded using internally generated funds of the Bank. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 321 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary