Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 136 F R A S E R & N E A V E H O L D I N G S B H D DIRECTORS’ REPORT for the financial year ended 30 September 2019 RSP AND PSP (COLLECTIVELY THE SHARE GRANT PLAN (“SGP”)) The Company’s SGP which is governed by its by-laws, was approved by Bursa Malaysia Securities Berhad on 20 December 2011 and subsequently approved by the shareholders at the Extraordinary General Meeting held on 13 January 2012. The SGP is valid for 10 years from 15 March 2012 to 14 March 2022. The first grant of RSP was made in March 2012. There were no grants made under the PSP. The details of the shares awarded under the RSP are as follows: Number of share grants Date of offer At 1.10.2018/ grant date Adjustment for achievement factor Vested * Forfeited At 30.9.2019 Vesting period RSP 2015 15.1.2015 98,900 – (93,800) (5,100) – 31.12.2016-31.12.2018 RSP 2016 5.1.2016 181,350 – (87,500) (11,275) 82,575 31.12.2017-31.12.2019 RSP 2017 22.12.2016 464,600 (180,740) (129,700) (24,460) 129,700 31.12.2018-31.12.2020 RSP 2018 22.12.2017 469,900 (154,400) – (37,000) 278,500 31.12.2019-31.12.2021 RSP 2019 21.12.2018 371,700 – – (14,400) 357,300 31.12.2020-31.12.2022 1,586,450 (335,140) (311,000) (92,235) 848,075 * Share grants forfeited upon cessation of employment. The main features of the Company’s RSP and PSP are disclosed in Note 15(D) to the financial statements. The Directors do not participate in SGP. INDEMNITY AND INSURANCE COSTS Throughout the financial year, the Directors and Officers of the Group and of the Company were covered by Directors’ and Officers’ liability insurance for any liability incurred in the discharge of their duties in their respective capacity, subject to the terms of the insurance policy. The premiums paid in respect of the Directors’ and Officers’ liability insurance for the Directors and Officers of the Group and of the Company amounted to RM27,274. The policy has an indemnity coverage of RM20,000,000. There were no indemnity insurance and insurance costs effected for auditors of the Group and of the Company during the financial year. QUALIFICATION OF SUBSIDIARIES’ FINANCIAL STATEMENTS The auditors’ report on the audited financial statements of the Company’s subsidiaries did not contain any qualification or any adverse comments. 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 to realise.