The long-term finance of the company comprises of the following: (i) 2,00,000 thousand equity shares at the beginning of the year and the company…

The long-term finance of the company comprises of the following: (i) 2,00,000 thousand equity shares at the beginning of the year and the company has issued 50,000 thousand shares on 1 July, 20X3 at full market value. (ii) 80,000 thousand irredeemable preference shares. These shares were in issue for the whole of the year ended 31 March, 20X4. The dividend on these preference shares is discretionary. (iii) ₹ 1,80,000 thousand of 6% Convertible Debentures issued on 1 April, 20X2 and repayable on 31 March, 20X6 at par. Interest is payable annually. As an alternative to repayment at par, the holder on maturity can elect to exchange their Convertible Debentures for 1,00,000 thousand ordinary shares in the company. On 1 April, 20X2, the prevailing market interest rate for four-year Convertible Debentures which had no right of conversion was 8%. Using an annual discount rate of 8%, the present value of ₹ 1 payable in four years is 0.74 and the cumulative present value of ₹ 1 payable at the end of years one to four is 3.31. For the year ended 31 March, 20X4, Gamma Limited declared an ordinary dividend of 0.10 paise per share and a dividend of 0.05 paise per share on the irredeemable preference shares. Based on the details of long-term finance provided above, help Gamma Limited compute the following: (i) the finance cost of convertible debentures and closing balance as on 31 March, 20X4 to be presented in the consolidated financial statements. (ii) the basic and diluted earnings per share for the year ended 31 March, 20X4. Assume that income tax is applicable to Gamma Limited and its subsidiaries at 25%.