Ni Hsin Berhad Annual Report 2017

17. Employee benefits On 13 June 2016, the Company granted share options to qualified Directors and employees to purchase shares in the Company under the Employees Share Option Scheme (“ESOS”) approved by the shareholders of the Company on 18 May 2016. In accordance with these programmes, the options are vested at the grant date and the holders are entitled to purchase shares at the exercise price. The number and exercise prices of share options are as follows: Number of options ‘000 Outstanding at 1 January 2017 32,500 Exercised during the year - Forfeited during the year - Outstanding at 31 December 2017 32,500 The options outstanding as at 31 December 2017 have an exercise price of RM0.29 and expiry on 12 June 2021. There were no options exercised during the year. The fair value of services received in return for share options granted is based on the fair value of share options granted, measured using binomial option pricing model, with the following inputs: Options fair value RM0.1549 Share price at grant date RM0.2850 Volatility 58.56% Risk free rate 3.48% The share options expense is recognised in the profit or loss of the Company in the previous financial year. 18. Tax expense Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Current tax expense - current 605 490 31 94 - under/(over) provision in prior years 66 (55) (3) (1) Total current tax recognised in profit or loss 671 435 28 93 Deferred tax expense - origination and reversal of temporary differences (221) (6) - - - under provision in prior years 76 30 - - Total deferred tax recognised in profit or loss (Note 12) (145) 24 - - Total income tax expense 526 459 28 93 Reconciliation of effective tax expense Profit/(Loss) for the year 2,067 (5,019) 1,625 (4,026) Tax expense 526 459 28 93 Profit/(Loss) excluding tax 2,593 (4,560) 1,653 (3,933) Notes to the financial statements (continued) Annual Report 2017 75