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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
30. EMPLOYEE BENEFITS (CONT’D)
b)
Neptune’s incentive option scheme (cont’d)
The number and weighted average exercise price of the options granted under the Neptune Scheme is
as follows:
Group
2015
2014
(Restated)
Number
of Options
Weighted
Average
Exercise
Price
A$
Number
of Options
Weighted
Average
Exercise
Price
A$
Outstanding at the beginning of the period
137,335
14.33 177,743
19.11
Forfeited during the period
–
–
–
–
Exercised during the period
–
–
–
–
Expired during the period
(4,001)
14.70 (36,389)
25.38
Outstanding at the end of the period
133,334
14.25 141,354
14.33
Exercisable at the end of the period
133,334
14.25 137,335
14.33
In August 2014, Neptune undertook a 30:1 share consolidation. Broadly, this had the effect of reducing
the total number of shares on issue to approximately 1/30th of the pre-consolidation amount. Accordingly,
the number of options and exercise prices has been adjusted retrospectively to reflect the consolidation.
The options outstanding at 31 March 2015 had a weighted average remaining contractual life of 1.85 years
(2014: 2.74 years). Exercise prices range from A$12.00 to A$15.00 in respect of options outstanding at
31 March 2015 (2014: A$12.00 to A$15.00).
In 2010 options issued were calculated by using a Binomial option pricing model applying the following
inputs:
Date options issued
1/08/2010
Weighted average exercise price
A$0.58
Weighted average life of the option (years)
5.00
Underlying share price
A$0.28
Expected share price volatility
71%
Risk free interest rate
4.50%
Historical volatility has been the basis for determining expected share price volatility as it is assumed that
this is indicative of future tender, which may not eventuate.
