Fraser & Neave Holdings Bhd Annual Report 2021

16. CAPITAL AND RESERVES #CONTINUED$ #C$ SHARE GRANTS UNDER F&NHB SHARE GRANT PLANS #CONTINUED$ The Directors do not participate in the F&NHB share grant plans. The estimated fair value of shares granted during the financial year ranges from RM27.58 to RM28.85. The fair value of equity-settled contingent award of shares are determined using the Monte Carlo Valuation Model, which involves projection of future outcomes using statistical distributions of key random variables including share price and volatility of returns. The inputs to the model used are as follows: RSP 2021 2020 2019 2018 Dividend yield (%) 2.24 2.33 2.34 2.72 Expected volatility (%) 12.83 13.30 16.35 11.56 Risk-free interest rate (%) 1.88-2.09 2.95-3.14 3.56-3.80 3.21-3.59 Expected term (years) 1.87-3.87 2.02-4.02 2.03-4.03 2.02-4.03 Share price at date of grant (RM) 30.08 34.66 31.34 26.38 #D$ LOSS ON PURCHASE OF SHARES FOR SGP Upon vesting of share awards, there will be a di!erence between total purchase price paid by SGP Trust (Note 16(b)) to acquire the shares from the open market and the fair value of the share awards granted to employees of subsidiaries. This di!erence will be included in the Group’s and the Company’s financial statements as a deduction from equity and classified as “Loss on purchase of shares for SGP”. #E$ LEGAL RESERVE Non-distributable legal reserve amounting to RM9,934,000 (2020: RM9,934,000) relates to a subsidiary in Thailand. Under the provision of Thailand Civil and Commercial Code, the subsidiary is required to set aside at least 5% of its net income after accumulated deficit (if any) as a legal reserve until the reserve is not less than 10% of the registered share capital. This reserve is non-distributable as dividends. Financial Statements 215 Fraser & Neave Holdings Bhd ! Annual Report 2021