Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
ANNUAL REPORT 2015
66
BUILDING ON OUR EXTENSIVE NETWORK
7.
Salaries and employee benefits (cont’d)
Employee share option plans (cont’d)
No share option expense was recorded in 2015 and 2014 as the share options were vested in prior years.
The fair value of share options as at date of grant was estimated by an external valuer using the binomial
model, taking into account the terms and conditions upon which the options were granted. The fair value
of options granted was $0.31 per option.The inputs to the model used are shown below:
Date of option granted
23 June 2001
Dividend yield
(%)
4.000
Expected volatility
(%)
107.750
Historical volatility
(%)
107.750
Risk free interest rate
(%)
2.820
Expected life of option
(years)
10.000
Weighted average share price
($)
0.486
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 is
indicative of future trends, which may also not necessarily be the actual outcome. No other features of
option grant were incorporated into the measurement at fair value.
8.
Finance costs
Group
2015
2014
$’000
$’000
Interest expense on:
- Bank overdrafts, trust receipts and hire-purchase liabilities
3,532
2,293
- Bank loans
1,406
2,016
4,938
4,309
