A business combination agreement provides 5,000 contingent shares for each new retail site opened in 20X1 + 1,000 shares for each ₹1,000 of consolidated profit above ₹20 lakh. Two sites opened (1 May and 1 Sep). Profit reached ₹29 lakh by 31 Dec. For ANNUAL basic EPS, how are contingencies treated?

Basic EPS for contingently issuable shares: the contingency is treated as 'unsatisfied' until the contingency period actually expires. Sites that opened DURING the period are added pro-rata from opening date (5/12 + 4/12 = 9/12 of 10,000 ≈ 5,000 weighted for FY). Earnings contingency only counts in basic EPS at year-end when actually crystallised — for diluted EPS it's based on year-to-date earnings.