Page 172 - Kolte Patil AR 2019-20

Notes forming part of the standalone financial statements

i. Details of activity of the ESOP schemes
Movement for the year ended March 31, 2020 and year ended March 31, 2019:

Outstanding at Granted Forfeited Lapsed Exercised Outstanding Exercisable at
ESOP Year
Scheme Particulars ended the beginning during during during during at the end of the end of the
of the year the year the year the year the year the year year
Number of March 379,000 - - - - 379,000 379,000
options 31, 2020

Weighted March
average 31, 2020 142 - - - - 142 142
exercise price
ESOS 2014
Number of March 26,500 379,000 - 10,000 16,500 3,79,000 379,000
options 31, 2019

Weighted March
average 31, 2019 142 141 - 142 142 141 141
exercise price
ii. Information in respect of options outstanding:

As at March 31, 2020 As at March 31, 2019
ESOP
Scheme Exercise price Number of Options Weighted average Number of Options Weighted average
Outstanding remaining life (in Years) Outstanding remaining life (in Years)
ESOS 2014 145 3,79,000 0 - 4 379,000 0 - 4

iii. The employee stock option cost for the Employee Stock Option Scheme 2014 has been computed by reference to the fair value of share
options granted and amortized over each vesting period. For the year ended March 31, 2020 the Company has accounted for employee stock
option cost (equity settled) amounting to ` 196 Lakhs (March 31, 2019: H168 Lakhs).
iv. The fair value of each option is estimated on the date of grant based on the following assumptions (on weighted average basis):
For the year ended For the year ended
Particulars
March 31, 2020 March 31, 2019
Weighted average share price 265 265
Exercise price 145 145
Expected volatility (%) 58.77% 58.77%
1 year from the date of 1 year from the date of
Expected life
vesting vesting
Expected dividend (%) 2% 2%
Risk free interest rate (%) 8.20% 8.20%

The amount of the expense is based on the fair value of the employee stock options and is calculated using a Binomial Lattice valuation
model. A lattice model produces estimates of fair value based on assumed changes in share prices over successive periods of time. The
Binomial Lattice model allows for at least two possible price movements in each subsequent time period.
The Hull-White model (HW-model) is an extension of the Binomial Lattice model. It models the early exercise behaviour of employees by
assuming that exercise takes place whenever the stock price reaches a certain multiple M of the strike price X when the option has vested.
The Black and Scholes valuation model has been used for computing the weighted average fair value.

170 | Kolte-Patil Developers Limited