Untitled - Domain-b

Schedules forming part of the accounts(All amounts in crores of rupees except share data and unless otherwise stated)Schedule 20: Significant accounting policies and notes to the accounts (Contd.)The weighted average fair value of stock options granted during the year was Rs. 1,204.21. The Black Scholes valuation modelhas been used for computing the weighted average fair value considering the following inputs:2010 2009Weighted average share price 288.94 NILExercise Price 2.00 NILExpected Volatility 37.76% NILHistorical Volatility 37.76% NILLife of the options granted (Vesting and exercise period) in years 1.02 – 5.01 years NILExpected dividends Rs.4 NILAverage risk-free interest rate 7.00% NILExpected dividend rate 1.38% NILThe group has calculated the compensation cost based on the intrinsic value method i.e. the excess of market price of underlyingequity shares on the date of the grant of options over the exercise price of the options given to employees under the employeestock option schemes of the Company is recognized as deferred stock compensation cost and is amortized on a graded vestingbasis over the vesting period of the options. Had the Company applied the fair value method for determining compensation cost,the impact on net income and earnings per share is provided below:Year ended30 June 2010Year ended30 June 2009Net income – As reported 1,056.58 997.31Add:-Employee stock compensation under intrinsic value method 49.84 55.87Less:-Employee stock compensation under fair value method 83.54 63.23Net income – Proforma 1,022.88 989.95Earnings per share ( refer note 13)Basic - As reported 15.68 14.91- Proforma 15.18 14.80Diluted - As reported 15.33 14.73- Proforma 14.84 14.623. LeasesIn case assets taken on leasei) Finance leasesThe Company has acquired vehicles on nance leases. The lease term is 4 years, total minimum lease payments andmaturity prole of nance leases at the balance sheet date, the element of interest included in such payments, and thepresent value of the minimum lease payments as of 30 June, 2010 are as follows:Total minimumlease paymentsoutstandingInterest includedin minimum leasepaymentsPresent value ofminimum leasepayments30 June, 2010Not later than one year 15.53 3.24 12.29Later than one year and not later than ve years 20.76 2.54 18.22Total 36.29 5.78 30.5130 June, 2009Not later than one year 13.36 3.78 9.58Later than one year and not later than ve years 20.97 3.68 17.29Total 34.33 7.46 26.8781