Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 201132. Share-Based Payment Transactions (continued)No option has been exercised under the Scheme during the year ended 31 March 2011. The weightedaverage share price at the date of exercise for share options exercised during the year ended 31 March2010 was HK$0.229.Options granted are fully vested at the date of grant except for 47,000,000 options granted on 4 May 2010for which 25% are exercisable 9 months from the date of acceptance of offer; 25% are exercisable 15months from the date of acceptance of offer; 25% are exercisable 21 months from the date of acceptanceof offer and 25% are exercisable 27 months from the date of acceptance of offer.The options outstanding at 31 March 2011 had weighted average exercise price of HK$0.609 (2010:HK$0.733) and a weighted average remaining contractual life of 6.3 years (2010: 6.3 years).The weighted average fair value of options granted during the year was HK$0.064 (2010: Nil).The total consideration received during the year from grant of share options amounted to HK$6 (2010:Nil).None of the share options were forfeited and expired during the years ended 31 March 2010 and2011.All share options have been accounted for under HKFRS 2. The fair values of share options granted todirectors, employees and consultants determined at the dates of grant are expensed over the vestingperiods, with a corresponding adjustment to the Group’s share options reserve.The fair value of equity-settled share option granted during the year was estimated as at the date ofgrant, using the Black-Scholes Option Pricing Model, taking into account the terms and conditions uponwhich the options were granted. The following table lists the inputs to the model used for the yearended 31 March 2011:Grant date share priceHK$0.22Exercise priceHK$0.30Expected volatility 89.6% to 110.87%Expected exercise date 3 May 2011 to 8 May 2012Risk-free interest rate 0.167% to 0.770%Expected dividend yieldNilThe expected volatility reflects the assumption that the historical volatility is indicative of future trends,which may not necessarily be the actual outcome.Sino Prosper State Gold Resources Holdings Limited102