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Adjustments to EPS numerator for year 20X4: PAT ₹1,50,000; amortisation of discount on increasing-rate preference shares ₹18,000 (equity-classified); discount on repurchase of 8% preference shares ₹1,000; premium to induce conversion of 7% convertible preference shares ₹30,000. Profit attributable to ordinary equity holders for basic EPS?
A₹1,03,000 (= 1,50,000 − 18,000 + 1,000 − 30,000)
B₹1,18,000
C₹1,50,000
D₹99,000
Answer & Solution
Correct answer: A. ₹1,03,000 (= 1,50,000 − 18,000 + 1,000 − 30,000)
Subtract amortised discount (₹18,000) — treated as preference dividend; add back discount on repurchase (₹1,000) — benefit to ordinary holders; subtract premium to induce conversion (₹30,000) — extra return to preference holders. Net: 150,000 − 18,000 + 1,000 − 30,000 = ₹1,03,000.
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