annual-report-FY2021

370 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 39. Employee Stock Option Plan (contd.) 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, 2020 to 13 th March, 2021................................................................................................................................... 643.89 Information in respect of options outstanding as at 31 st March, 2021 Range of exercise price Number of options Weighted average remaining life Rs. 2.50.............................................................................................................................. 15,20,216 3.63 years Rs. 5.00.............................................................................................................................. 42,54,254 5.42 years Rs. 331.00.......................................................................................................................... 5,000 0.48 years The fair values of options granted during the year are as follows: Grant Date No. of years vesting Fair value per options 9 th November, 2020. ......................................................................................................... 5 years Rs. 598.42 9 th November, 2020. ......................................................................................................... 3 years Rs. 601.27 9 th November, 2020. ......................................................................................................... 2 years Rs. 602.82 25 th March, 2021............................................................................................................... 3 years Rs. 799.05 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 9 th November, 2020 (5 years vesting) 9 th November, 2020 (3 years vesting) 9 th November, 2020 (2 years vesting) 25 th March, 2021 (3 years vesting) Risk free interest rate (%).......................................................................................... 5.26% 4.78% 4.47% 5.26% Expected life (in years). .............................................................................................. 4.90 years 3.50 years 2.75 years 3.50 years Expected volatility (%)................................................................................................ 32.02% 34.54% 37.36% 36.25% Expected dividend yield (%). ..................................................................................... 0.38% 0.38% 0.38% 0.29% Exercise Price (Rs.). ...................................................................................................... 5.00 5.00 5.00 5.00 Stock Price (Rs.)............................................................................................................ 613.60 613.60 613.60 811.40 40. Contingent Liability & Commitments (A) Contingent Liability : (a) Claims against the Group not acknowledged as debts comprise of : (i) Excise Duty, Sales Tax, and Service Tax claims disputed by the Group relating to issues of applicability and classification aggregating Rs. 2,854.67 crores before tax (2020: Rs. 2,405.43 crores before tax). (ii) Other matters (excluding claims where amounts are not ascertainable) : Rs. 652.31 crores before tax (2020: Rs. 355.65 crores before tax). (b) Taxation matters : (i) Demands against the Group not acknowledged as debts and not provided for, relating to issues of deductibility and taxability in respect of which the Group is in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed : – Income-tax : Rs. 1,991.75 crores (2020: Rs. 1,922.76 crores). (ii) Items in respect of which the Group has succeeded in appeal, but the Income-tax Department is pursuing/likely to pursue in appeal/reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed : – Income-tax matters : Rs. 444.19 crores (2020: Rs. 370.50 crores). (c) In respect of (a) & (b) above, it is not practicable for the Group to estimate the closure of these issues and the consequential timings of cash flows, if any. (B) Commitments : The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31 st March, 2021 is Rs. 2,556.08 crores (2020: Rs. 3,414.24 crores) and other commitment as at 31 st March, 2021 is Rs. 435.97 crores (2020: Rs. 661.73 crores).