2010-11 - Grasim

UltraTec
ech Cement Limited
The Key assumptions in the Black-Scholes Model for calculating fair value as on the date of grant are:
1. Risk Free Rate - 8%
2. Option Life - Vesting period (1 Year) + Average of exercise period
3. Expected Volatility - Tranche-I: 0.49, Tranche-II: 0.52, Tranche-III: 0.30,
Tranche-IV: 0.30, Tranche-V: 0.30
4. Expected Growth in Dividend - 20%
The weighted average fair value of the option, as on the date of grant, works out to ` 469 per
stock option.
Had the compensation cost for the stock options granted under ESOS 2006 been determined,
based on fair-value approach, the Company’s net profit and earnings per share would have been
as per the proforma amounts indicated below:
` in Crores
Particulars
2010-1
0-11 2009-1
09-10
Net Profit (2010-11 figure includes Q1FY11 Net Profit of SCL
`315.00 Crores) 1,719.23 1,093.24
Add: Compensation Expenses under ESOS included in the Net Profit 0.86 0.34
Less: Compensation Expenses under ESOS as per Fair Value (1.64) (0.72)
Net Profit (Fair value basis) 1,718.45
1,092.86
Basic Earning Per Share (Reported) – ` / Share 62.74 87.82
Basic Earning Per er Share (Fair air value basis)– ` / Share 62.71 87.79
.79
Diluted Earning Per Share (Reported) – ` / Share 62.72 87.79
Diluted Earning Per er Share (Fair air value basis) – ` / Share 62.69 87.7
.76
21. Earning per Share (EPS):
` in Crores
Particulars
2010-1
0-11 2009-1
09-10
(A) Basic EPS:
(i) Net Profit attributable to Equity Shareholders (2010-11
figure includes Q1FY11 Net Profit of SCL ` 315.00 Crores) 1,719.23 1,093.24
(ii)
Weighted average number of Equity Shares outstanding
(Nos.) 274,025,026 124,485,979
Basic EPS (`) ) (i)/(ii) 62.74 87.82
.82
(B) Diluted EPS:
(i) Weighted average number of Equity Shares Outstanding 274,025,026 124,485,979
(ii) Add: Potential Equity Shares on exercise of option 88,932 37,493
(iii) Weighted average number of Equity Shares Outstanding
for calculation of Diluted EPS (i+ii) 274,113,958 124,523,472
Diluted EPS (`) ) {(A) (i) } / (iii) 62.72 87.79
Face value of Shares (`) 10 10
58