Question 4:Compute Basic Earnings per share from the following information: Date Particulars No. of 1 st April, 2008 1 st August, 2008 31 st March, 2009 Balance at the beginning of the year Issue of shares for cash 1,500 600 500 Net profit for the year ended 31 st March, 2009 was Rs. 2,75,000 Solution 4: Computation of weighted average number of shares outstanding during the period Date No. of equity shares Period outstanding Weights (months) Weighted average number of shares (1) (2) (3) (4) (5) = (2) x (4) 1 st April, 2008 1 st August, 2008 31 st March, 2009 1,500 (Opening) 600 (Additional issue) 500 (Buy back) 12 months 8 months 0 months 12/12 8/12 0/12 1,500 400 - Total 1,900 Basic Earnings per share (EPS) = Net profit attributable to equity shareholders Weighted average number of Equity Shares = Rs.2,75,000 1900 = Rs.144.74
CA FINAL IndigoLearn 10 Question 5: From the following information relating to Y Ltd. Calculate Earnings Per Share (EPS): Rs.Cr Profit before V.R.S. payments but after depreciation 75.00 Depreciation 10.00 VRS payments 32.10 Provision for taxation 10.00 Fringe benefit tax 5.00 Paid up share capital (shares of Rs. 10 each fully paid) 93.00
CA FINAL IndigoLearn 11 Question 6: The following information is available for Raja Ltd for the year 09-10 and 10-11Net profit 09-10 –Rs.25 lacsNet profit 10-11 –Rs.40 lacsShares outstanding prior to rights issue: 12 lac shares. Right issue:•One new share for each three outstanding i.e. 4,00,000 shares•Right issue price Rs. 22•Last date to exercise rights 30-6-2010•Fair value of one equity share immediately prior to exercise of rights on 30-6-2010 = Rs. 28.You are required to compute the basic earnings per share for the years 2009-10 and 2010-11.
CA FINAL IndigoLearn 12 Solution 6: Computation of Basic EPS
13 Question 7 Kevin Industries Ltd has a paid up capital of Rs.20 Cr divided into equity shares of Rs.10 each as on 31.3.2013. During FY13-14 it has issued bonus shares in the ratio of 1:1 Net profit after tax for FY13 and FY14 are Rs.10 Cr an Rs,15 Cr respectively. EPS disclosed in the financial statements for FY14 for the above two years is Rs.5 and Rs.3.75 respectively. Is the Disclosure Correct? 10 4
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- Earnings Per Share, equity shares