The following information is available in respect of High-end Ltd. for the accounting year 2022-2023 and 2023-2024: Net profit for ₹ Year 2022-2023…

Computation of basic earnings per share 2022-2023 (₹) 2023-2024 (₹) EPS for the year 2022-2023 as originally reported = Net profit for the year attributable to equity shareholders / weighted average number of equity shares outstanding during the year = 22,00,000 / 10,00,000 shares 2.20 EPS for the year 2022-2023 restated for the right issue = 22,00,000 / (10,00,000 x 1.04) 2.12 EPS for the year 2023-2024 (including effect of right issue) = 30,00,000 / {(10,00,000 x 1.04 x 4/12) + (12,00,000 x 8/12)} 2.62 Working Notes: Computation of theoretical ex-rights fair value per share = (fair value of all outstanding shares immediately prior to exercise of rights + Total value received from exercise of rights) / (number of shares outstanding prior to exercise + number of shares issued on the exercise)= (32x 10,00,000 +25 x 2,00,000) / (10,00,000 + 2,00,000) = 30.83Computation of adjustment factor = Fair value per share prior to exercise of rights / Theoretical ex-right value per share = 32/30.83 = 1.04 (approx.)