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:
ESOP Scheme
ESOS 2014
Particulars
Number of options
Weighted average exercise price
Year ended
March 31, 2020
March 31, 2020
March 31, 2019
March 31, 2019
Outstanding at the beginning of the year
379,000
142
26,500
Granted during the year
-
-
379,000
141
Forfeited during the year
-
-
-
-
Lapsed during the year
-
-
10,000
142
Exercised during the year
-
-
16,500
142
Outstanding at the end of the year
379,000
142
3,79,000
141
Exercisable at the end of the year
379,000
142
379,000
141
ESOP Scheme
ESOS 2014
As at March 31, 2020
As at March 31, 2019
Number of options
Weighted average exercise price
142
ii. Information in respect of options outstanding:
Exercise price
Number of Options Outstanding
Weighted average remaining life (in Years)
0 - 4
Number of Options Outstanding
379,000
Weighted average remaining life (in Years)
0 - 4
145 3,79,000
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):
Particulars
Weighted average share price Exercise price
Expected volatility (%)
Expected life
Expected dividend (%) Risk free interest rate (%)
For the year ended March 31, 2020
265
145 58.77%
1 year from the date of vesting
2% 8.20%
For the year ended March 31, 2019
265
145 58.77%
1 year from the date of vesting
2% 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