GHL System Berhad Annual Report 2020

150 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 23. SHARE CAPITAL (cont’d) (d) Executive Share Scheme (“ESS”) (cont’d) During the financial year, the Group recognised share options granted under shares options scheme of RM287,229 (2019: RM1,518,227) in profit or loss, out of which an amount of RM179,661 (2019: RM951,112) was in respect of employees of subsidiaries. At Company level, the amount of RM179,661 (2019: RM951,112) was recorded as an increase in investments in subsidiaries (Note 16) with a corresponding credit to equity. The details of share options outstanding at the end of the reporting period are as follows: Offer date Weighted average exercise price Exercise period 2020 2019 RM RM 6 April 2018 - first tranche 0.72 1.08 6.4.2018 - 5.4.2021 - second tranche 0.72 1.08 6.4.2019 - 5.4.2021 - third tranche 0.72 1.08 6.4.2020 - 5.4.2021 Share options exercised during the financial year resulted in the issuance of 1,730,000 (2019: 1,163,000) ordinary shares at an average price of RM1.38 (2019: RM1.37) each. The related weighted average ordinary share price at the date of exercise was RM1.08 (2019: RM1.08). The fair values of share options granted were estimated by using the Trinomial option pricing model, taking into account the terms and conditions upon which the options were granted. The risk-free rate is based on Malaysian Government Securities (“MGSs”). The fair values of share options measured at grant date and the assumptions are as follows: ESS Grant date 6.4.2018 Fair value of share options at the following grant dates (RM): 6 April 2018 - first tranche 0.14 - second tranche 0.20 - third tranche 0.25 Weighted average share price (RM) 1.52 Weighted adjusted average exercise price (RM) 1.08 Expected volatility (%) 25 Expected life (years) 3 Risk free rate (%) 4.20 Expected dividend yield (%) Nil