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Kumpulan Fima Berhad

(11817-V)

192

Notes to the

financial statements

31 march 2017

33. Employee benefits (cont’d.)

Employees’ Share Scheme (“ESS”) (cont’d.)

(a) ESOS (cont’d.)

-

The weighted average fair value of options granted during the financial year was RM0.17 (2016: RM0.28).

-

The weighted average share price at the date of exercise of the options exercised during the financial year was

RM1.89 (2016: RM1.91).

-

The weighted average exercise price for options outstanding at the end of the year was RM1.89 (2016: RM1.64).

-

The ESOS had expired on 17 November 2016.

Fair value of share options granted

The fair value of the share options granted is estimated at the grant date using a binomial option pricing model, taking

into account the terms and conditions upon which the instruments were granted.

The following table lists the inputs to the pricing models for the year ended 31 March 2017:

Binomial option

pricing model

2017

2016

Dividend yield (%)

4.89

5.00

Expected volatility (%)

39.93

38.72

Risk-free interest rate (% p.a.)

1.83

2.52

Balance expected life of option (years)

-

2.87

Weighted average share price (RM)

1.82

1.88

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may

occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the

options is indicative of future trends, which may not necessarily be the actual outcome.