XYZ Limited has provided you the following information as on 31st March, 2024: Particulars ₹ Net profit (After Tax) 31,20,000 No. of shares…

Computation of Basic Earnings per Share Earnings ₹ No. of Shares EPS ₹ Earnings per share for the year 2023-2024 31,20,000 6,50,000 (W.N 2) 4.80 Computation of Dilutive Earnings per Share Earnings ₹ Shares EPS ₹ Net profit for the year 31,20,000 Weighted average number of shares (W.N. 2) outstanding during year on 31.3.2024 (i) 6,50,000 Number of shares under option 80,000 Number of shares that would have been issued at fair value: (80,000 X 20.00)/25.00 (64,000) No. of incremental shares issued for no consideration (ii) 16,000 Diluted earnings per share after options (i +ii) 31,20,000 6,66,000 4.68 12% Convertible Debentures (W.N. 3) 2,52,000 1,20,000 Diluted earnings 33,72,000 7,86,000 4.29 Working notes: 1. Computation of shares issued on bonus No. of shares outstanding as on 31st March 2024 8,00,000 Less: Shares issued on 1st Jan 2024 (2,00,000) Outstanding shares as on 31st December 2023 6,00,000 Bonus shares (6,00,000 x 1/(1+5)) 1,00,000 Outstanding shares before bonus issue as on 1st April 2023 (6,00,000x5/6) 5,00,000 2. Weighted Average number of Equity shares Shares Months Weighted average Opening balance as on 1.4.2023 5,00,000(W.N.1) 12/12 5,00,000 Bonus 1,00,000 12/12 1,00,000 Further issue of shares on 1.1.2024 2,00,000 3/12 50,000 6,50,000 3. 12% Convertible Debentures Increase in net profit {30,00,000 x 0.12 x ( 1 - 0.30)} 2,52,000 No. of incremental shares {30,000 x 4} 1,20,000