Following information is given to you in respect of A Ltd. and B Ltd.: Particulars A Ltd. Amount (₹ ) B Ltd. Amount (₹ ) Income (loss) from…

(i) Basic EPS of A Ltd. Basic EPS (Continued Operations) = Profit from continued operations/Weighted average number of shares outstanding = 5,04,000 / 1,60,000 = ₹ 3.15 Basic Loss per share (Discontinued operations) = Loss from discontinued operations / Weighted average number of shares outstanding = (8,40,000) / 1,60,000 = (5.25) Overall Basic Loss per share = (₹ 3,36,000) / 1,60,000 = (2.10) Diluted EPS of A Ltd. Diluted EPS = Profit for the year / Adjusted weighted average number of shares outstanding DEPS (Continued Operations) = Profit from continued operations / Adjusted weighted average number of shares outstanding = 5,04,000 / 1,92,000 = ₹ 2.625 Diluted Loss per share (Discontinued operations) = Loss from discontinued operations/ Adjusted weighted average number of shares outstanding = (8,40,000) / 1,92,000 = (4.375) Overall Diluted Loss per share = (₹ 3,36,000) / 1,92,000 = (1.75) (ii) In case of B Ltd.'s loss from continuing operations, the potential shares are excluded since including those shares would result into anti-dilution effect on the control number (loss from continuing operations). Therefore, the Diluted EPS of B Ltd will be calculated as under: Diluted EPS = Profit for the year / Adjusted weighted average number of shares outstanding Overall Profit = Loss from continuing operations + Gain from discontinued operations = (₹ 3,60,000) + 6,51,840 = ₹ 2,91,840 Weighted average number of shares outstanding = 1,92,000 Diluted EPS = ₹ 1.52