Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 246 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 45. SHARE OPTION SCHEMES (continued) Total consideration received by the Group for exercising the options granted amount to approximately HK$3,826,000 (2018: HK$29,198,000). The weighted average closing price of the Company’s share immediately before the date(s) on which the options were exercised is HK$4.00 (2018: HK$3.96). The fair value of the options under FECIL Share Option Schemes at the date of grant determined using the Binomial model. The variables and assumptions used in computing the fair value of the share options are based on the management’s best estimate. The value of an option varies with different variables of a number of subjective assumptions. Any change in the variables so adopted may materially affect the estimation of the fair value of an option. 46. RETIREMENT BENEFITS SCHEMES The Group operates a Mandatory Provident Fund Scheme (the “MPF Scheme”) for all qualifying employees in Hong Kong under the rules and regulations of the Mandatory Provident Fund Schemes Authority. The assets of the MPF Scheme are held separately from those of the Group, in funds under the control of trustees. Contributions are made based on a percentage of the participating employees’ relevant income from the Group and are charged to profit or loss as they become payable in accordance with the rules of the MPF Scheme. When an employee leaves the MPF Scheme, the mandatory contributions are fully vested with the employee. According to the relevant laws and regulations in the PRC, the PRC subsidiary is required to contribute a certain percentage of the salaries of their employees to the state-managed retirement benefits scheme. The only obligation of the Group with respect to the retirement benefits scheme is to make the required contributions under the scheme. The Group makes defined contributions to the Employees Provident Fund for qualifying employees in Malaysia under which the Group is required to make fixed contributions under the defined contribution plans to separate entities. The Group has no legal or constructive obligations of further contributions to make up any deficiencies of fund assets to cover all employees benefits relating to their services to the Group. The Group makes defined contribution to the Singapore Central Provident Fund which the Group is required to make a certain percentage of the salaries of the employees in Singapore, whereby the Group’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefits plan. The Group makes contribution to independent superannuation master funds for employees in Australia, based on a certain percentage of the employee’s salaries and wages. The only obligation of the Group with respect to the retirement benefits scheme is to make the required contribution. The Group operates defined contribution schemes in respect of its employees in the United Kingdom. Contribution are made based on a certain percentage of salaries of the employees in the United Kingdom to the defined contribution scheme. The assets of the scheme are held separately from those of the Group in independently administered funds. The pension costs of the defined contribution schemes represent the contributions accrued to the scheme in respect of the accounting period. Total retirement benefits expenses charged to profit or loss amounted to HK$52,892,000 in the current year (2018: HK$46,875,000).