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.

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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.