1. AS-20 Earning Per Share EPS

2. 1.EPS can be of two types : a) Basic EPS b) Diluted EPS 2.Basic EPS = Earning Attibutable to Eq. Share Holder (EAESH) Wt. Avg. of Eq Share Outstanding during the Year Weight here refers to Time

3. 3. Earning Attributable to Eq. Share Holder : PBIT +++++ Less: Interest on Debenture / Borrowing +++++ PBT ===== Less: Tax +++++ PAT ===== Less: Preference Dividend (Note) +++++ Earnings =====

4. Note : i)Preference Dividend or Cumulative Preference share will be deducted even if not declared. ii)If question is silent Preference Share as Cumulative Preference Share. iii)Preference Dividend on Non Culmulative Preference Share will be deducted if declared. iv)Reserves will not be deducted in EAESH. v)Prior period items and Extra Ordinary items will be adjusted while calculating PAT. vi)CDT / DDT wil be charged on Pref Dividend if specified. CDT = Corporate Dividend Tax DDT= Div. Distribution Tax Note: Only Pref. Dividend on Non Cumulative Pref Share will not be deducted if not declared.

5. 4. How to calculate Wt. Avg. of No. of Equity Share Outstanding during the period ? Weighted Avg is done using weight of time. Outstanding means shares which have been issued by company. Whenever any company issue share whose resources have been received than wt. Avg is done for paid up value received.

6. 5. Treatment of Public Issue Since shares issued in case of public issue are at appropriate price, share are considered from the date when paid up capital have been received. Date of issue of shares is relevent for weighted average.

7. 6. Treatment of Bonus Share Bonus Share are at NIL price. Since resources are not received in bonus hence such shares do not effect Earning Pattern. Date of issue of Bonus is not relevant. ( Since Resources are not received) In case of Bonus, Previous Year(s) reported in current year will be restated taking into account bonus shares.