GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 129 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 24. RESERVES (cont’d) 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. 25. BORROWINGS Group Company 2018 2017 2018 2017 Note RM RM RM RM Non-current liabilities Term loans 10,694,120 13,012,852 - - Hire purchase creditors 26 5,629,173 1,719,530 160,458 229,981 Islamic facility 500,000 2,500,000 - - 16,823,293 17,232,382 160,458 229,981 Current liabilities Term loans 11,408,396 2,025,832 - - Hire purchase creditors 26 4,436,172 928,025 69,523 66,658 Bankers’ acceptance - 12,000,000 - - Islamic facility 2,000,000 2,000,000 - - 17,844,568 16,953,857 69,523 66,658 Total borrowings Term loans 22,102,516 15,038,684 - - Hire purchase creditors 26 10,065,345 2,647,555 229,981 296,639 Bankers’ acceptance - 12,000,000 - - Islamic facility 2,500,000 4,500,000 - - 34,667,861 34,186,239 229,981 296,639 (a) Borrowings are classified as financial liabilities and measured at amortised cost.