NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
118
ANNUAL REPORT 2015/2016
30. EMPLOYEE BENEFITS (CONT’D)
b)
Neptune’s incentive option scheme (cont’d)
Options may not be offered under the Neptune Scheme if the total number of shares of Neptune which
would be issued where each option is accepted, together with the number of shares in the same class or
options to acquire such shares issued pursuant to all employee or executive share schemes during the
previous five years, exceeds 5% of the total number of issued shares in that class as at the date of the offer.
Employees are entitled to the options if they remain employed with Neptune over the service period which
is determined at the date of grant on an individual basis.
All options granted to key management personnel confer a right of one ordinary share in Neptune for every
option held.
The number and weighted average exercise price of the options granted under the Neptune Scheme is
as follows:
Group
2016
2015
Number
of Options
Weighted
Average
Exercise
Price
A$
Number
of Options
Weighted
Average
Exercise
Price
A$
Outstanding at the beginning of the period
133,334
14.25 137,335
14.33
Forfeited during the period
–
–
–
–
Exercised during the period
–
–
–
–
Expired during the period
(33,334)
12.00
(4,001)
14.70
Outstanding at the end of the period
100,000
15.00 133,334
14.25
Exercisable at the end of the period
100,000
15.00 133,334
14.25
The options outstanding at 31 March 2016 had a remaining contractual life of 1.16 years (2015: 1.85 years).
Exercise price is A$15.00 in respect of options outstanding at 31 March 2016 (2015: range from 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
1
Weighted average life of the option (years)
5.00
Underlying share price
A$0.28
1
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.
1
The above prices applied in the Binomial option pricing model were prior to the 30:1 share consolidation undertook by Neptune in 2014.
Adjusting for the consolidation, the weighted average exercise price and the underlying share price applied would have been A$17.40
and A$8.40 respectively.
