MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

277 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Average share price on the date of exercise of the options are as under Date of exercise Weighted average share price (Rs.) 01 st April, 2022 to 21 st March, 2023............................................................................................................................................................................................................. 1,217.04 Information in respect of options outstanding as at 31 st March, 2023 Range of exercise price Number of options Weighted average remaining life Rs. 2.50................................................................................................................................................................................................................... 5,07,253 1.87 years Rs. 5.00................................................................................................................................................................................................................... 52,05,871 4.58 years The fair values of options granted during the year are as follows: Grant Date No. of Years vesting Fair value per option 27 th May, 2022...................................................................................................................................................................................................... 3 years Rs. 886.37 04 th August, 2022............................................................................................................................................................................................... 4 years Rs. 1,201.91 10 th November, 2022........................................................................................................................................................................................ 3 years Rs. 1,294.00 10 th February, 2023........................................................................................................................................................................................... 2 years Rs. 1,320.57 * 23 rd February, 2023....................................................................................................................................................................................... 2 - 5 years Rs. 1,275.83 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 date & Vesting period Particulars 27 th May,2022 (3 years vesting) 4 th August, 2022 (4 years vesting) 10 th Nov, 2022 (3 years vesting) 10 th February, 2023 (2 years vesting) *23 rd February, 2023 (2-5 years vesting) Risk free interest rate................................................. 6.73% 6.90% 7.11% 7.28% 6.80% - 7.02% Expected life...................................................................... 4 years 4 years 4 years 6 years 0.55 - 5.36 years Expected volatility......................................................... 37.59% 36.07% 37.34% 33.23% 33.62% - 46.04% Expected dividend yield................................................ 1.24% 0.92% 0.86% 0.64% 0.96% Exercise Price (Rs.) ...................................................... 5 5 5 5 5 Stock Price (Rs.) ............................................................ 886.37 1,201.91 1,294.00 1,320.57 1,275.83 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. 106.63 crores (2022 : Rs. 80.47 crores) being expenses on account of share based payments, after adjusting for reversals on account of options forfeited. The amount excludes Rs. 4.94 crores (2022 : Rs. 5.40 crores) charged to its subsidiaries for options issued to their employees. * pursuant to the scheme of merger of Mahindra Electric Mobility Limited (MEML), the Company has issued 14,042 employee stock options in replacement of MEML stock options. 36. Employee Stock Option Plan (contd.)