bs 08 mam - Educomp Solutions Ltd.

(b) Pursuant to shareholder resolution dated 13 th September 2007, the Company introduced “Educomp
Employees Stock Option Scheme 2007” which provides for the issue of 200,000 equity shares to
employees of the company and its subsidiaries. The option vesting period was initially for seven
years from the date of award of option to employees at an exercise price approved by the
remuneration committee.. However the vesting period was increased to ten years as per the
shareholders approval dated 11 th February, 2008.Till date 82210 Stock options have been granted.
All the above options are planned to be settled in equity at the time of exercise and have maximum
period of 10 years from the date of respective grants.
(d) The information concerning stock options granted, exercised, forfeited and outstanding at the year
end is as follows:
Employee Stock Option Scheme
2006
No. of shares under option
Outstanding at the beginning of the
year
As on 31st March 2008
No. of stock
options
Nil -
Granted 625000 125
Exercised - -
Forfeited during the year (Nos) 2500 -
Outstanding at the end of year 622500 125
Weighted average grant date fair 625000
value per option for options granted
during the year at less than market
834
value
Employee Stock Option Scheme
2006
No. of shares under option
Outstanding at the beginning of the
year
Nil -
Weighted
average
exercise price
Granted 82210 Fair market value
Exercised Nil -
Forfeited during the year (Nos) Nil -
Outstanding at the end of year 82210 Fair market value
Weighted average grant date fair 82210
value per option for options granted
during the year at less than market
value
1583
* All the options have been granted in the first year itself i.e on 1 st April, 2008.
Weighted average
remaining
contractual life (in
Years)
(v) Provision for Current tax includes provision for earlier years amounting to Rs. 2.68 million (Previous
year Rs. 6.43 million). Provision for Fringe benefit tax includes provision for earlier years amounting to
Rs. 0.61 million (Previous year Rs. 0.40 million).
(vi) Utilization of Initial Public Offering (IPO) Proceeds
The company has utilized the gross public issue proceeds on issue of 40,00,000 Equity shares of Rs.
10/- each at a premium of Rs. 115/- per share in the following manner:
Particulars Year ended
31 st March, 2008
(Rs in millions)
Capital Expenditure 398.14
Investment in U.S Subsidiary 11.77
M & A Activity 37.50
Public Issue Expenses 52.59
Total 500.00
6*
9.73