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financiAL STATEMENTs
Annual Report 2017
145
NOTES TO THE FINANCIAL STATEMENTS
24. OTHER RESERVES (Cont’d.)
(c) Equity Contribution from Parent (Cont’d.)
(i)
ESOS (Cont’d.)
The following table lists the inputs to the pricing models for the years ended 31 March 2017 and 2016:
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
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.
(ii) RSGS
The following table illustrates the movements of shares vested under the RSGS during the financial year:
Movement of shares under RSGS during the financial year
Group
2017
2016
Number
Number
Outstanding at 1 April 2016/2015
-
-
Granted
134,000
188,000
Vested
(134,000)
(188,000)
Outstanding at 31 March
-
-
The vesting of the RSGS shares is conditional upon the satisfaction of the performance targets of the Group and all
other conditions as set out in the ESS Bye-Laws.
25. RETAINED EARNINGS
As at 31 March 2017, the Company may distribute the entire balance of the retained earnings under the single tier system.