GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 128 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 23. SHARE CAPITAL (cont’d) 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 8.9.2015 20.6.2014 Fair value of share options at the following grant dates (RM): 20 June 2014 - first tranche - - 0.26 - second tranche - - 0.19 - third tranche - - 0.13 8 September 2015 - first tranche - 0.21 - - second tranche - 0.16 - - third tranche - 0.09 - 6 April 2018 - first tranche 0.14 - - - second tranche 0.20 - - - third tranche 0.25 - - Weighted average share price (RM) 1.52 0.95 0.95 Weighted adjusted average exercise price (RM) 1.08 0.86 0.57 Expected volatility (%) 25 25 25 Expected life (years) 3 3 3 Risk free rate (%) 4.20 3.29 3.88 Expected dividend yield (%) Nil Nil Nil 24. RESERVES Group Company 2018 2017 2018 2017 RM RM RM RM Non-distributable Exchange translation reserve (1,455,652) (3,919,382) - - Share options reserve 1,001,445 - 1,001,445 - (454,207) (3,919,382) 1,001,445 -