Ni Hsin Berhad Annual Report 2018

Options granted over unissued shares No options were granted to any person to take up unissued shares of the Company during the financial year. At the Extraordinary General Meeting held on 18 May 2016, the Company’s shareholders approved the establishment of an Employees’ Share Option Scheme (“ESOS”) of not more than 15% of the issued capital of the Company to eligible Directors and employees of the Group at any point in time during the tenure of the ESOS. The tenure of the ESOS was for a period of 5 years from first grant made. In January 2018, the ESOS was terminated after the Company has obtained the written consent of all the grantees under the ESOS who have yet to exercise their options in prior year and shareholders’ approval at the Extraordinary General Meeting to terminate the ESOS plan. Warrants issued in February 2015 have expired on 9 February 2018. The details of warrants exercised during the financial year and prior to expiry is disclosed in Note 12 to the financial statements. Subsequent to the financial year end, in February 2019, the Company has obtained shareholders’ approval at the Extraordinary General Meeting on the proposed bonus issue of up to 160,757,455 free detachable warrants on the basis of one (1) warrant for every two (2) existing ordinary shares of the Company. The main feature of warrants to be issued is disclosed in Note 28 to the financial statements. Indemnity and insurance costs During the financial year, there was no insurance effected for Directors, officers and auditor of the Company (2017: Nil). 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. At the date of this report, the Directors are not aware of any circumstances: i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Group and in the Company inadequate to any substantial extent, or ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or iv) not otherwise dealt with in this report or the financial statements that would render any amount stated in the financial statements of the Group and of the Company misleading. At the date of this report, there does not exist: i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year. Directors’ report for the year ended 31 December 2018 (continued) Annual Report 2018 40