Larsen & Toubro Limited
Secretarial Department
L&T House, Ballard Estate
Narottam Morarjee Marg
Mumbai - 400 001, INDIA
Tel: +91 22 6752 5656
Fax: +91 22 6752 5858
Disclosures with respect to Employee Stock Option Scheme pursuant to Regulation 14 of the SEBI (Share Based Employee Benefits) Regulations,
2014 as on March 31, 2021:
Sr | Particulars | Status of compliance | |
A | Relevant disclosures in terms of the 'Guidance note on | Members may refer to the audited financial | |
accounting for employee share-based payments' issued | statement prepared for the financial year | ||
by ICAI or any other relevant accounting standards as | 2020-2021. | ||
prescribed from time to time. | |||
B | Diluted EPS on issue of shares pursuant to all the | Diluted EPS for the year ended March 31, | |
schemes covered under the regulations shall be disclosed | 2021 is: | ||
in accordance with 'Accounting Standard 20- Earnings per | a. From continuing operations Rs 19.11 | ||
Share' issued by ICAI or any other relevant accounting | b. From discontinued operations Rs 61.54 | ||
standards as prescribed from time to time. | c. From continuing operations and | ||
discontinued operations Rs 80.65 | |||
C | Details related to ESOS | ||
i. | Description of each ESOS that existed at any time | ||
during the year, including the general terms and | |||
conditions of each ESOS, including: | |||
(a) Date of shareholders' approval | |||
(b) Total number of options approved under | Details are provided in Annexure 1 | ||
ESOS | |||
(c) Vesting requirement | |||
(d) Exercise Price/ Pricing Formula | |||
(e) Maximum term of Options granted | |||
(f) Source of shares (Primary, secondary or | |||
Combination | |||
(g) Variation in terms of options | |||
(ii) | Method used to account for ESOS (Intrinsic or | The Company uses the fair value based | |
Fair value) | method of accounting for stock options | ||
granted. |
- Where the Company opts for expensing of the options using the intrinsic value of the options, the
difference between the employee compensation cost so computed and the employee compensation ---
cost that shall have been recognised if it had used the fair value of the options shall be disclosed. The impact of this difference on profits and on EPS of the Company shall also be disclosed.
CIN : L99999MH1946PLC004768
Larsen & Toubro Limited | ||||
Secretarial Department | ||||
L&T House, Ballard Estate | ||||
Narottam Morarjee Marg | ||||
Mumbai - 400 001, INDIA | ||||
Tel: +91 22 6752 5656 | ||||
Fax: +91 22 6752 5858 | ||||
(iv) | Option movement during the year (for each | Details are provided in Annexure -2 | ||
ESOS) | ||||
(v) | Weighted average exercise prices and weighted | Weighted average exercise price is Rs. 7.80 | ||
average fair values of options shall be disclosed | and weighted average fair value is Rs. | |||
separately for options whose exercise price either | 834.24 of options granted during the year. | |||
equals/exceeds/is less than the market price of the | ||||
stock. | ||||
(vi) | Employee wise details (name of employee, | |||
designation, number of options granted during the | ||||
year, exercise price) of options granted to- | ||||
a) | Senior Managerial Personnel | N.A | ||
b) Any other employee who receives a grant in | None of the Employees were granted more | |||
any one year of option amounting to 5% or | than 5% or more of the options granted | |||
more of option granted during that year; and | during the year | |||
c) Identified employees who were granted option, | None of the Employees granted more than | |||
during any one year, equal to or exceeding 1% | 1% of the issued capital | |||
of the issued capital of the company (excluding | ||||
outstanding warrants and conversions) at the | ||||
time of grant. | ||||
(vii) | A | description of the method and significant | ||
assumptions used during the year to estimate the | ||||
fair value of options including the following | ||||
information: | ||||
a) Weighted average values of share price, | ||||
exercise price, expected volatility, expected | Details provided in Annexure 3 | |||
option life, expected dividends, risk-free | ||||
interest rate and any other inputs to the model; | ||||
b) Method used & assumptions made to | Black-Sholes Options Pricing Model | |||
incorporate effects of expected early exercise; | ||||
c) How expected volatility was determined, | Expected volatility is based on the historical | |||
including explanation of the extent to which | volatility of the Company's share price | |||
expected volatility was based on historical | applicable to the total expected life of each | |||
volatility; and | ||||
option. | ||||
d) | Whether and how any other features of the | |||
option grant were incorporated into the | ||||
measurement of fair value, such as market | ||||
condition. | ||||
CIN : L99999MH1946PLC004768
Larsen & Toubro Limited
Secretarial Department
L&T House, Ballard Estate
Narottam Morarjee Marg
Mumbai - 400 001, INDIA
Tel: +91 22 6752 5656
Fax: +91 22 6752 5858
Annexure -1 | |||||||||
Employee Stock | Employee Stock Option | ||||||||
Particulars | Ownership Scheme 1999 | Scheme 2006 | |||||||
ESOS | ESOP 2006A | ||||||||
a) | Date of shareholders' | August 26, 1999 & August | August 25, 2006 | ||||||
approval | 22, 2003 | ||||||||
b) Total number of | 123,62,268 | 140,01,935 | |||||||
options approved | |||||||||
under ESOS | |||||||||
c) Vesting | One year from date of | One year from date of grant | |||||||
grant and every year | and every year thereafter (5 | ||||||||
Requirements | |||||||||
thereafter (4 vesting) | vesting) | ||||||||
d) Exercise price/Pricing | Rs. 7.80 | Rs. 267.10 | |||||||
formula | |||||||||
e) Maximum term of | 7 Years | 7 Years | |||||||
options granted | |||||||||
f) | Source of shares | Primary | Primary | ||||||
(primary, secondary | |||||||||
or combination) | |||||||||
g) | Variation in terms of | NA | N.A. | ||||||
options | |||||||||
CIN : L99999MH1946PLC004768
Larsen & Toubro Limited | |||||||||
Secretarial Department | |||||||||
L&T House, Ballard Estate | |||||||||
Narottam Morarjee Marg | |||||||||
Mumbai - 400 001, INDIA | |||||||||
Tel: +91 22 6752 5656 | |||||||||
Fax: +91 22 6752 5858 | |||||||||
Annexure - 2 | |||||||||
Option movement during 2020-2021 | |||||||||
Employee | Employee Stock | ||||||||
Stock | |||||||||
Option Scheme | |||||||||
Particulars | Ownership | ||||||||
2006 | |||||||||
Scheme 1999 | |||||||||
ESOS | ESOP 2006A | ||||||||
No. of options outstanding - 01.04.2020 | 1,45,935 | 23,75,454 | |||||||
No. of options granted during 2020-2021 | 1,04,000 | 0 | |||||||
No. of options forfeited/lapsed during 2020- | 4,875 | 1,75,675 | |||||||
2021 | |||||||||
No. of options vested during 2020-2021 | 49,473 | 5,55,804 | |||||||
No. of options exercised during 2020-2021 | 71,910 | 5,91,365 | |||||||
No. of shares arising as a result of exercise | 71,910 | 5,91,365 | |||||||
of options | |||||||||
Money realised by exercise of options (INR), | Rs.5,60,898.00 | Rs.1,57,953,591.50 | |||||||
if scheme is implemented directly by the | |||||||||
Company | |||||||||
Loan repaid by the Trust during the year from | N.A. | N.A. | |||||||
exercise price received | |||||||||
No. of options outstanding as of 31/03/2021 | 1,73,150 | 16,08,414 | |||||||
No. of options exercisable as of 31/03/2021 | 23,575 | 4,84,082 | |||||||
CIN : L99999MH1946PLC004768
Larsen & Toubro Limited | ||||||||
Secretarial Department | ||||||||
L&T House, Ballard Estate | ||||||||
Narottam Morarjee Marg | ||||||||
Mumbai - 400 001, INDIA | ||||||||
Tel: +91 22 6752 5656 | ||||||||
Fax: +91 22 6752 5858 | ||||||||
Annexure - 3 | ||||||||
Sr. | Particulars | 2020-2021 | ||||||
No. | ||||||||
(i) | Weighted average risk-free interest rate | 4.81% | ||||||
(ii) | Weighted average expected life of options | 2.85 years | ||||||
(iii) | Weighted average expected volatility | 35.39% | ||||||
(iv) | Weighted average expected dividends over the life of | ₹51.22 per option | ||||||
the option | ||||||||
(v) | Weighted average share price | ₹884.83 per option | ||||||
(vi) | Weighted average exercise price | ₹7.80 per share |
CIN : L99999MH1946PLC004768
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Larsen & Toubro Limited published this content on 10 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2021 07:40:37 UTC.