Case let 3. Excel Ltd has shared its profitability details with the investors for the year ended 2020. Below are the details of the company: (5 x 5 = 25 Marks) Profit before interest, depreciation and taxes Less: Depreciation Profit before interest and taxes Less: Interest expense on convertible bonds Profit before taxes Less: Taxes @ 25% Profit after taxes 4 Other details: No of equity shares outstanding (Face Value Rs 10) Amount (in Rs Crores) 45 7 38 1.4 36.6 9.15 27.45 10 crores 1. Calculate the BEPS and Cash EPS of the company. Which one is better? 2. Assume the company came out with public issue of 5 crores on 1st September, 2019. Out of these new shares issued, 3 crore shares are only Rs 5 paid-up (Face value being Rs 10). What will be the new BEPS of the company? Other details: The company has 60 lakhs, 7% convertible bonds equivalent of Rs 100 each, issued on 1st December, 2019. Each bond is convertible into 3 equity shares. The tax saved on interest on convertible bonds is Rs 0.35 crores. Using this information, give answers to the below given questions (Do not consider point 2 in your calculation): 3. What will be the weighted average number of equity shares after conversion of bonds? 4. If interest expense on convertible bonds is 1.4 crores for the year 2019-20, what will be the interest expense for the year 2020-21? 5. Calculate the Diluted EPS. Compare it with BEPS and Cash EPS calculated in point 1.

Case let 3. Excel Ltd has shared its profitability details with the investors for the year ended 2020. Below are the details of the company: ( 5 5 = 25 Marks) 4 1. Calculate the BEPS and Cash EPS of the company. Which one is better? 2. Assume the company came out with public issue of 5 crores on 1th September, 2019. Out of these new shares issued, 3 crore shares are only Rs 5 paid-up (Face value being Rs 10). What will be the new BEPS of the company? Other details: The company has 60 lakhs, 7% convertible bonds equivalent of Rs 100 each, issued on 1st December, 2019. Each bond is convertible into 3 equity shares. The tax saved on interest on convertible bonds is Rs 0.35 crores. Using this information, give answers to the below given questions (Do not consider point 2 in your calculation): 3. What will be the weighted average number of equity shares after conversion of bonds? 4. If interest expense on convertible bonds is 1.4 crores for the year 2019-20, what will be the interest expense for the year 2020-21? 5. Calculate the Diluted EPS. Compare it with BEPS and Cash EPS calculated in point 1