annual-report-FY2020

271 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 The options may be exercised on any day over a period of 5 years from the date of vesting. Number of vested options exercisable is subject to a minimum of 50 or number of options vested whichever is lower. Summary of stock options No. of stock options Weighted average exercise price (Rs.) Options outstanding on 1 st April, 2019........................................................................................... 63,51,833 4.18 Options granted during the year.................................................................................................... 20,54,575 5.00 Options forfeited/lapsed during the year....................................................................................... 3,19,189 6.19 Options exercised during the year.................................................................................................. 14,52,547 3.62 Options outstanding on 31 st March, 2020....................................................................................... 66,34,672 4.46 Options vested but not exercised on 31 st March, 2020................................................................. 24,39,947 4.20 Average share price on the date of exercise of the options are as under Date of exercise Weighted average share price (Rs.) 24 th April 2019 to 13 th March, 2020....................................................................................................................................... 543.59 Information in respect of options outstanding as at 31 st March, 2020 Range of exercise price Number of options Weighted average remaining life Rs. 2.50............................................................................................................................................. 27,36,792 4.48 years Rs. 5.00............................................................................................................................................. 38,87,880 6.43 years Rs. 331.00......................................................................................................................................... 10,000 0.98 years The fair values of options granted during the year are as follows: Grant Date No. of Years vesting Fair value per option 7 th November, 2019........................................................................................................................... 5 years Rs. 531.26 7 th November, 2019........................................................................................................................... 3 years Rs. 538.85 The fair value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as follows: Grant dated 7 th November, 2019 (5 years vesting) 7 th November, 2019 (3 years vesting) Risk free interest rate....................................................................................................................... 6.29% 6.11% Expected life...................................................................................................................................... 5.51 years 4.51 years Expected volatility............................................................................................................................. 26.27% 26.00% Expected dividend yield.................................................................................................................... 1.47% 1.47% Exercise Price (Rs.) ............................................................................................................................ 5.00 5.00 Stock Price (Rs.) ................................................................................................................................ 579.80 579.80 In respect of Options granted under the Employee Stock Option Plan the accounting is done as per requirements of Ind AS 102. Consequently, salaries, wages, bonus etc. includes Rs. 114.50 crores (2019: Rs. 89.20 crores) being expenses on account of share based payments, after adjusting for reversals on account of options forfeited. The amount excludes Rs. 6.70 crores (2019: Rs. 5.31 crores) charged to subsidiaries, associates or joint ventures for options issued to their employees. 33. Employee Stock Option Plan (contd.)