Basic & Diluted EPS

[Bijay Shrestha]

Please advise -

In the beginning of the FY 2015-16 as on 1-4-2015, O/s no. of shares is 100,000 of Face value of ₹ 10.

20000 Fully 10 % convertible debentures of ₹ 10 each conversion ratio being 2 shares for each debenture.

In June-2015, 5000 debentures were converted into 10000 shares. At the end of the year 2015-16, 15000 debentures pending for conversion.

For the year FY 2015-16 Net Profit after tax is ₹ 5,00,000/-. This profit is after charging Debenture Interest of Rs. 16,250/- ( i.e.Rs. 15000+ ₹ 1250).

Now please calculate Basic EPS and Diluted EPS.

In the beginning of the FY 2015-16 as on 1-4-2015, O/s no. of shares is 100,000 of Face value of ₹ 10. 20000 Fully 10 % convertible debentures of ₹ 10 each conversion ratio being 2 shares for each debenture. In June-2015, 5000 debentures were converted into 10000 shares. At the end of the year 2015-16, 15000 debentures pending for conversion. For the year FY 2015-16 Net Profit after tax is ₹ 5,00,000/-. This profit is after charging Debenture Interest of ₹ 16,250/- ( i.e.Rs. 15000+ ₹ 1250). Now please calculate Basic EPS and Diluted EPS.

Read more at: http://www.caclubindia.com/forum/basic-eps-amp-diluted-eps-374012.asp

[Ganeshan Kalyani]

The calculation need other aspect as well which in My view should be worked out with in person from practising tax consultant.

AI Summary

How to Calculate Basic and Diluted EPS: Shares, Convertible Debentures, and Net Profit Explained for 2015-16 A user inquired about calculating Basic and Diluted EPS for the fiscal year 2015-16. Initially, there were 100,000 shares and 20,000 convertible debentures, with a conversion ratio of two shares per debenture. In June 2015, 5,000 debentures were converted into 10,000 shares, leaving 15,000 debentures pending conversion by year-end. The net profit after tax was 5,00,000, including debenture interest of 16,250. A respondent suggested consulting a tax professional for a detailed calculation.