Continue with the case of Liberty Shoes Ltd. on BEPS and DEPS. However with effect from 1st Feb 2001 these FCDs are carrying an interest rate of 10% p.a. As per the annual reports, the PAT for the years 2001–02 and 2002–03 was ₹6,20,36,518 and ₹6,46,58,429 respectively. There is no change in the number of shares or FCDs. Now carry out the following requirements.
Requirements

1. Compute the diluted EPS for the year 2001-02 and 2002-03 and compare with the basic EPS for both the years. (Corporate tax rates for these two years…35.70% and 36.75%, respectively, inclusive of surcharge.)
2. Offer your comments. Do you think that the new figures improve the quality of your analysis and provide a sounder basis for the evaluation of the performance of the company and prediction of its future profitability? Support your answer.