Compute basic earnings per share from the following

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

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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

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Question 6:
The following information is available for Raja Ltd for the year 09-10 and 10-11
Net profit 09-10 – Rs.25 lacs
Net profit 10-11 – Rs.40 lacs
Shares 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.

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Solution 6:
Computation of Basic EPS

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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?
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