Airtel 2012 Annual Report Download - page 40

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BHARTI AIRTEL ANNUAL REPORT 2011-12
Annexure C
INFORMATION REGARDING THE EMPLOYEES STOCK OPTION SCHEMES AS ON MARCH 31, 2012
Sl.No. Particulars ESOP Scheme 2005 ESOP Scheme 2001
1) Number of stock options granted 25,804,379* 40,467,578****
****
**
2) Pricing Formula Exercise Price not less than the par value 29,015,686 @ 11.25
of the equity share and not more than 1,760,000 @ 0.45
the price prescribed under Chapter VII of 4,380,000 @ 35.00
the SEBI (Issue of Capital and Disclosure 142,530 @ 0.00
Requirements) Regulation, 2009 on 5,104,362 @ 5.00
Grant Date. 40,000 @ 60.00
25,000 @ 110.50
3) Options vested 20,063,495 38,779,932
4) Number of options exercised 4,226,026 29,887,617
5) Number of shares arising as a result of
exercise of option during the financial
year 2011-12 Nil Nil
6) Number of options lapsed 10,113,352 9,135,450
7) Money realized by exercise of options ` 555,351,837 ` 387,917,655
8) Total number of options in force 11,465,001 1,444,511
9) Options granted to Senior managerial
personnel during the financial year 2011-12:
• Dr. Jai Menon 2,09,000 75,000
• Mr. Mario Pereira Nil 20,000
• Mr. Bharat Bambawale Nil 15,000
• Mr. Harjeet Kohli 1,900 Nil
• Mr. Jagbir Singh 19,460 45,000
• Mr. Mukesh Bhavnani 19,380 45,000
• Mr. S. Balasubramanian 1,400 Nil
• Mr. Vineet Taneja 13,200 Nil
• Mrs. Deepa Dey 1,500 Nil
• Mr. Ravi Kaushal 2,000 Nil
10) Diluted earning per share (EPS) as per AS 20 N.A. N.A.
11) Difference between the employees
compensation cost based on intrinsic
value of the Stock and the fair value
for the year and its impact on profits
and on EPS of the Company. N.A. N.A.
12) a) Weighted average exercise price ` 224.86 a) ` 11.25; ` 0.45;
` 35; ` 0; ` 5;
` 60; ` 110.5
b) Weighted average fair price ` 180.10 b) NA; NA; NA; ` 69.70;
` 262.73; ` 84.43;
` 357.63
13) Method and significant assumptions Black Scholes/Lattice Valuation Model/Monte Carlo Simulation
used to estimate the fair values of options.
(i) risk free interest rate i) 7.76% p.a. to 8.63% p.a. (The Government Securities curve yields are considered
as on valuation date)
(ii) expected life ii) 48 to 60 months
(iii) expected volatility iii) 41.07% to 42.09% (assuming 250 trading days to annualize)
(iv) expected dividends iv) 20% (Dividend yield of 0.28%)
(v) market price of the underlying share v) ` 361.83 to ` 424.11 per equity share
on grant date
Notes:
* Granted 7,069,827 options out of the options lapsed over a period of time.
** Granted 8,787,578 options out of the options lapsed over a period of time.
• The options granted to the senior managerial personnel under both the schemes are subject to the adjustments as per the terms of respective performance share plan.
• There is no variation in the terms of options during the year.
• No employee was granted stock options exceeding 5% of the total grants or exceeding 1% of the issued capital during the year.