On 31 st March, 2024, Vanshika Ltd. granted options to its employees that gave them right to subscribe for equity shares in next 3 years at 112 per…

CA Final · Financial Reporting · PYQS · September 2025
On 31 st March, 2024, Vanshika Ltd. granted options to its employees that gave them right to subscribe for equity shares in next 3 years at 112 per share. It also issued 2 lakhs warrants convertible into shares at 84. As on 31 st March, 2025: Options outstanding 1,40,000 Profit after Tax, attributable to equity shareholders - 91,20,000 Average market price of equity shares - 140 Issued Equity share capital (Face value 10 each) ₹ 50,00,000 There were no grants, exercises or lapses of options during the year. Also, none of the warrants was converted into shares during the year. You are required to calculate Basic and Diluted EPS as at 31 st March, 2025.

Suggested Answer and Working Notes:

Calculation of Basic Earnings Per Share (EPS) 2024-2025 Profit after tax 91,20,000 Number of shares (₹ 50,00,000 /10 per share) 5,00,000 Basic EPS 18.24 Calculation of Diluted EPS (i) Adjusted number of shares a. Number of shares under options: Issued at full market price [(1,40,000 × 112) /140] = 1,12,000 Options issued at nil consideration (dilutive) (1,40,000 – 1,12,000) 28,000 b. Number of shares under warrants: Issued at full market price [(2,00,000 × 84) / 140] = 1,20,000 Warrants issued at nil consideration (dilutive) (2,00,000 – 1,20,000) 80,000 Number of dilutive shares under options and warrants 1,08,000 (ii) Calculation of Diluted EPS: Number of equity shares for basic EPS 5,00,000 Number of dilutive shares under options and warrants 1,08,000 Adjusted number of shares (A) 6,08,000 Profit after tax (B) ₹ 91,20,000 Diluted EPS (B/A) ₹ 15

Topics: Ind AS 33, Ind AS 109

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