15 September 2010
Net profit as per profit and loss account Rs. 21,58,28,715 Out standing shares as on brgining of the year (i.e. on 01/04/2009) 23,77,25,547
Right share issued on 29/03/2010 3,00,00,000 @ Rs.10 per share
Fair value of the share immediate before right issue Rs.37.86
Kindly help me in calculating Basic as well as Diluted earning per share.
24 September 2010
Hi Nilang, the answer to ur question is : theoratical ex-right value per share = (fair value from existing shares +proceeds from right issue)/ Total outstanding no.of shares after right issue (23,77,25,547*37.86 + 3,00,00,000*10)/ (23,77,25,547 + 3,00,00,000) (9000289209+30,00,00,000)/ 26,77,25,547 =9300289209 / 26,77,25,547 34.74 per share Right factor = fair value per share before right issue / Theoratical ex-right value per share = 37.86 / 34.74 = 1.089 or 1.10 EPS = 21,58,28,715 / (23,77,25,547 * 362/365days*1.089) + (3,00,000*3/365days) EPS = 21,58,28,715 / 25,67,57,780 = 0.84 per share there is no question of diluted EPS as there are no potential equity shares. Regards, CA Shakuntala Chhangani
CAclubindia
