ILLUSTRATION SPICE 6 CHEENI HI CHEENI LTD.

DETERMINATION OF BEPS IN BONUS

2 ISSUE

Given hereunder are the details of equity capital and profit etc. of Spice 6 Cheeni
Hi Cheeni Ltd. for the years 2005-06 and 2006-07. Determine the BEPS for both
the years under the following 3 exclusive situations:

1. Bonus issue on 1st January, 2007 in the ratio of 2:1.

2. Share split on 1st January, 2007 from Rs. 10FV top Rs. 5.
3. Share consolidation on 1st January, 2007 from Rs. 10FV to Rs. 100.
Rs. And Nos. of shares

(in crores)
2006-07 2005-06

Net Profit 54.60 33.50

Preference dividend and tax thereon 2.24 2.24

No. of equity shares outstanding until 31st 2.50

December 2006

ILLUSTRATIO WILEY INDIA LTD.

N
DETERMINATION OF BEPS IN RIGHT ISSUE
 3

Given hereunder are the details of net profit, equity capital and right issues etc. of
Wiley India Ltd. for the years 2005-06 and 2006-07. Determine the BEPS for both
the years.
Rs. And Nos. of Shares

(in crores)

Per Share Figures

2006-07 2005-06
Net profit attributable to equity shareholders 18.65 15.89
No. of equity shares outstanding prior to right
6.00
issues
Right issue 2:3 @ Rs.50.00 per share
Last date to exercise rights 1st December 2006
Fair Value of one equity share immediately
Rs.70.00
prior to exercise of rights on 1st December 2006

ILLUSTRATION FOOL-N-FINAL LTD.

DETERMINATION OF DEPS IN CASE OF
4 COMPULSORILY CONVERTIBLE FOREIGN
CURRENCY
Fool-N-Final Ltd. supplies you with the following details. Determine its BEPS and
DEPS for both the years.
Rs. And Nos. of Shares

(in crores) Except Per Share Figure

2006-07 2005-06

Net profit attributable to existing equity 9.15 6.56

shareholders
No. of equity shares outstanding (FV Rs. 10) 2.00 2.00

No. of 6% foreign currency convertible

bonds (FCCBs), equivalent of Rs. 100 each,
issued on 1st October 2005. Each 20.00 lakh 20.00 lakh
compulsorily convertible into 5 equity
shares.
Interest expense on FCCBs 1.20 0.60
Tax saved on interest @35% 0.42 0.21

Employees’ Friend Ltd. supplies you with the following details for the year 2006-
07. Determine its BEPS and DEPS.
 Rs. And Nos. of Shares(in crores)
Except Per Share Figures

Net Profit 68.75

No. of equity shares outstanding (FV Rs. 10) 4.00

Equity Shares under options granted on 31-

1.00
03-2007
Exercise price for shares under options (per
Rs.225.00
equity share)
Fair Value (per equity share) Rs.300.00

ILLUSTRATION EMPLOYEES’ FRIEND LTD.

SHARE OPTIONS
5

ILLUSTRATION SHAABAASH LTD.

ANTI-DILUTIVE CONVERTIBLE
6
DEBENTURES
Shaabaash Ltd. supplies you with the following details for the year 2006-07.
Determine BEPS and DEPS.
Rs. And Nos. of Shares

(in Crores)
Net Profit 1.30

No. of Equity shares outstanding (FV Rs. 10) 1.00

No. of 15% convertible debentures of Rs.100 each 20.00 lakh

issued on 1st April 2006. Each compulsorily into 4
equity shares of Rs. 10 each at a premium of Rs. 15
each.
Interest expense on convertible debentures. 3.00
Income tax relating to interest expense (35%) 1.05