GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 151 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 24. RESERVES Group Company 2019 2018 2019 2018 RM RM RM RM Non-distributable Exchange translation reserve 260,437 (1,455,652) - - Share options reserve 2,201,772 1,001,445 2,201,772 1,001,445 Retirement benefit reserve 59,496 - - - ESS shares (11,160,755) - (11,160,755) - (8,639,050) (454,207) (8,958,983) 1,001,445 The nature of each category of reserves is as follows: (a) Exchange translation reserve The exchange translation reserve is used to record foreign currency exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the presentation currency of the Group. It is also used to record the exchange differences arising from monetary items which form part of the net investment of the Group in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation. (b) Share options reserve The share options reserve represents the equity-settled share options granted to employees. This reserve is made up of the cumulative value of services received from employees recorded on the grant date of share options. (c) Retirement benefit reserve The retirement benefit reserve represents the non-contributory, defined benefit plan granted to employees. (d) ESS shares The ESS share represents the Company’s shares purchased and held by an appointed trustee from the market to transfers to participant of the Company’s ESS upon exercise of options. During the financial year, the Company had completed the purchase of ESS Shares of 8,601,400 units with a price ranging from RM1.31 to RM1.45 and the transferred of 575,000 units of ESS Shares to employees for options exercised at an exercise price of RM1.08 per ordinary share. Of the total 749,209,139 (2018: 737,984,933) issued and fully paid ordinary shares of the Company as at 31 December 2019, 8,026,400 ordinary shares amounting to RM11,160,755 were held as ESS shares by the Company. The number of outstanding ordinary shares in issue after deducting the ESS Shares is 741,182,739 (2018: 737,984,933) ordinary shares as at 31 December 2019.