Sigma Limited has profit after tax of ₹10,00,000 on April 1, 2009 with the number of shares outstanding being 5,00,000 of face value ₹10, each fully paid. On this date, there were 10,000 12% convertible debentures of face value ₹100, each convertible into 10 equity shares of face value ₹10, each fully paid. The conversion is due during the year. Tax rate for the company is 30%. Further, on July 1, 2010, it issued 50,000 bonus shares and on October 31, 2011, an option is due for exercise resulting into 20,000 new equity shares to be issued at ₹20 each (face value) against the fair value of ₹50. On January 1, 2011, 30,000 10% ₹100 debentures are due for conversion into 60,000 equity shares of the company.

Discussion Question

You are an expert in accounting and the company has appointed you March 31, 2011. You are asked to prepare the statement of EPS to be disclosed in the annual report. You also have to assist the company in calculating various estimates of EPS as per the provisions of AS-20 and IAS-33.