Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024
Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024
Movement of Options Granted with Weighted Average Exercise Price (WAEP) Particulars As at March 31, 2024
(in Rupees Million)
Impact on profit after tax and equity March 31, 2024 March 31, 2023
As at March 31, 2023
ESOPs
No. of options
WAEP No. of options
WA EP
Particulars
Options outstanding at the beginning of the year
25,97,381
952
28,56,378
787
USD -
Increase by 5% Decrease by 5%
194
- -
Options granted during the year Options lapsed during the year
2,20,650 (2,02,139)
2,270 1,021
2,61,406 (2,34,810)
2,120 1,026
-
(194)
EUR -
Options settled/cancelled during the year
(100)
846
(55,737)
846 640 506 952 707
Increase by 5% Decrease by 5%
24
- -
Options revived during the year Options exercised during the year
-
-
3,000
-
(24)
(1,19,661) 24,96,131 13,52,786
621
(2,32,856) 25,97,381 10,56,133
Options outstanding at the end of the year Options exercisable at the end of the year
1,078
(ii) Interest rate risk Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates. Exposure to interest rate risk The Company's deposits/loans are all at fixed rate and are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. The Company has assessed no exposure to fluctuating change of market interest rates. (iii) Capital management The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. 33 Employee Stock Options Expense A The expense recognised for employee services received during the year is shown in the following table: (in Rupees Million)
850
The options granted under the above Scheme, shall vest in graded manner over a period of 1-4 years. Each option will entitle the participant to one equity share. The weighted average fair values of the options granted during the year was C 933 (March 31, 2023: C 1109). The weighted average stock price of the options granted during the year ended March 31, 2024 is C 2,270 (March 31, 2023 : C 2,270). Weighted average remaining contractual life (years) of the options based on the exercise price :
Exercise Price No. of options outstanding
1*
40* 279.81 595.26 610.00 640.00
846.00 2,270.00 3,128.00
5,000 15,924 1,11,539 32,500 24,700 2,47,209 15,94,868 3,96,850 67,541
Weighted average remaining contractual life (in years)
0.25
0.30
5.12
5.00
7.12
7.69
7.96
9.01
8.12
Contracts with zero Weighted average remaining contractual life includes options where exercise date is extended. The fair valuation of option have been done by an independent firm of Chartered Accountants on the date of grant using the Black-Scholes Model. The key assumptions in the Black-Scholes Model for calculating fair value as on the date of grant:
Year ended March 31, 2024
Year ended March 31, 2023
Particulars
ESOP 2023-24
ESOP 2022-23
Particulars
Management Stock Options Scheme Employee Stock Options Scheme
393 162 555
387 662
Risk Free Rate
5.45 % - 9.19 % 5.45 % - 9.19 %
Option Life (Based on Simplified Average Method)
5 to 14 years
5 to 14 years
Total
1,049
Expected Volatility**
9.76% - 63.91 %
9.76% - 63.91 %
Total ESOP expenses incurred for year ended March 31, 2024 is C 948 million (March 31, 2023 : C 1,573 million) of which C 393 million (March 31, 2023 : C 524 million) are transferred to Fractal Analytics Incorporation, Fractal Analytics UK Limited and Senseforth AI Research Private Ltd as it pertains to options given to employees of respective subsidiary companies and are disclosed as deemed investment under note 7. Hence, net charge to Profit and Loss for financial year 2023-24 is C 555 million (March 31, 2023 : C 1,049 million). B Employee stock options scheme (ESOP) The Company has granted stock options under Fractal Employees Stock Option Plan (ESOP) to its employees which was approved by its Board and Shareholders and further amended in line with the provisions of Companies Act, 2013. Pursuant to the Plan, the Company has issued grants to its various employees including employees of subsidiary company from time to time during financial years 2008 to 2024. These options vest over the period of 1-4 years from the grant date and are exercisable within 10 years from vesting date for 2007 scheme and are exercisable within 10 years from grant date for 2019 scheme . In the case of resignation of the employee, the vested grants lapse (if not exercised) after 60 days from the date of resignation from service. Vesting of options is subject to continued employment with the Company. The plan is an equity settled plan. The employee compensation expense for the year is determined on fair value basis.
Expected Growth in Dividend
0%
0%
**Expected volatility during the expected term of the options is based on historical volatility of the observed market price of the Groups publicly traded equity shares during the period equivalent to the expected term of the options. *Vested options have been extended for one employee vide Circular Resolution No: 20/2023-24/NRC dated April 3, 2024.
176
177
Fractal Analytics Limited | Annual Report 2023-24
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