Ni Hsin Berhad Annual Report 2017

Options granted over unissued shares (continued) The salient features of the ESOS scheme are, inter alia, as follows: i) Eligible Directors and employees are those Directors and employees of Ni Hsin Resources Bhd Group who have been confirmed in service on the date of the offer. The maximum allowable allotments for the full-time executive directors have been approved by the shareholders of the Company in a general meeting. ii) The aggregate number of shares to be issued under the ESOS shall not be more than 15% of the issued and paid-up share capital of the Company. iii) The Scheme shall be in force for a period of five (5) years from the first grant date. iv) The option price shall not be at a discount of more than 10% (or such discount as the relevant authorities shall permit) from the 5-day weighted average market price of the shares of the Company preceding the date of offer and shall in no event be less than the par value of the shares of the Company of RM0.20. v) An option holder may fully exercise the number of shares in the option certificate without any retention period or restriction on transfer. vi) The option granted to eligible employees and directors will lapse when they are no longer in employment with the Group. Number of options over ordinary shares At 1.1.2017 Granted Exercised Lapsed At 31.12.2017 Chen Shien Yee 18,440,000 - - - 18,440,000 Ng Shwu Ching 3,000,000 - - - 3,000,000 Datin Ida Suzaini Binti Abdullah 500,000 - - - 500,000 Datuk Tan Choon Hwa 300,000 - - - 300,000 Rizvi Bin Abdul Halim 300,000 - - - 300,000 Md Nazir Bin Md Kassim 300,000 - - (300,000) - Leow Chan Khiang 300,000 - - - 300,000 The Company has been granted exemption by the Companies Commission of Malaysia from having to disclose in this report the names of option holders who have been granted options to subscribe for less than 300,000 shares required by section 251(1)(b) of the Companies Act, 1965. This information has been separately filed with the Companies Commission of Malaysia. Other than the Directors of the Company, the names of the option holders and the number of options granted which are in aggregate more than 300,000 shares are as follows: Name of option holder Number of options over ordinary shares Low Meng Chai 400,000 Lim Kam Ten 400,000 Phuah Yew Hock 400,000 Gan Gwo Chyang 400,000 Teh Siok Nee 400,000 Lim Sai Weng 300,000 Loo Yee Mun 300,000 There were no ESOS exercised during the financial year. Indemnity and insurance costs During the financial year, there was no insurance effected for Directors of the Company (2016: RM5,000,000). Other statutory information Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: i) all known bad debts have been written off and adequate provision made for doubtful debts, and ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might be expected so to realise. Directors’ report for the year ended 31 December 2017 (continued) Annual Report 2017 40