GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 115 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 22. RESERVES (cont’d) The nature of each category of reserves is as follows: (a) Share premium With the introduction of the Companies Act, 2016 effective 31 January 2017, the concepts of authorised share capital and par value of share capital have been abolished. Consequently, balance within the share premium account of RM72,824,729 has been transferred to the share capital account pursuant to the transitional provisions set out in Section 618(2) of the Companies Act, 2016. Notwithstanding this provision, the Company may utilise its share premium account for purposes stipulated in Section 618(3) of the Companies Act, 2016 for a transitional period of 24 months from 31 January 2017. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the member as a result of this transition. (b) 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. (c) 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. 23. BORROWINGS Group Company 2017 2016 2017 2016 Note RM RM RM RM Non-current liabilities Term loans 13,012,852 12,214,210 - - Hire purchase creditors 24 1,719,530 966,005 229,981 3,717 Bankers’ acceptance - - - - Islamic facility 2,500,000 4,500,000 - - 17,232,382 17,680,215 229,981 3,717 Current liabilities Term loans 2,025,832 4,998,563 - - Hire purchase creditors 24 928,025 3,444,946 66,658 98,652 Bankers’ acceptance 12,000,000 - - - Islamic facility 2,000,000 12,000,000 - - 16,953,857 20,443,509 66,658 98,652