Reliance Capital Limited

Disclosure pursuant to Regulation 14 of the Securities and Exchange Board of India (Share

Based Employee Benefits) Regulations, 2014 as on March 31, 2023

  1. Relevant disclosures in terms of the 'Guidance note on accounting for employee share-based payments' issued by Institute of Chartered Accountants of India ("ICAI") or any other relevant accounting standards as prescribed from time to time.
    The disclosures are provided in Note No. 32 of financial statement of the Company for the year 2022-23.
  2. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations in accordance with 'Accounting Standard 20 - Earnings Per Share' issued by ICAI or any other relevant accounting standards as prescribed from time to time.
    Rs. (68.01)
  3. Details related to Employees Stock Option Scheme (ESOS)

i.

A description of each ESOS that existed at any time during the year, including the general

terms and conditions of each ESOS, are as under-

a.

Date of shareholders'

January 8, 2007

approval

b.

Total number of options

1,11,96,640

approved under ESOS

c.

Vesting requirements

The vesting period shall commence on the expiry of one year from the

Grant Date. Not earlier than 1 (one) year and not later than 5 (five)years

from the date of grant of such options. The Vesting or Exercise shall be

subject to the continued employment of the employee with the Company

upto the specified date(s) of vesting or Exercise.

d.

Exercise price or pricing

The Exercise price of each of the Option under each of the plan(s) shall

formula

be decided by the Nomination and Remuneration Committee and / or by

the Board of Directors of the Company.

e.

Maximum term of

Exercise period would commence from the date of vesting and extend

options granted

up to 5(five) years from the date of last vesting. Maximum term of options

granted is 10(ten) years from the date of grant.

f.

Source of shares

Combination

(primary, secondary or

combination)

g.

Variation in terms of

In terms of the provisions of the ESOS, on account of corporate action

options

for demerger of Real Estate Lending Business of the Company, in line

with the difference in the volume weighted average price of the Equity

Shares of the Company on the National Stock Exchange of India Limited

on pre and post demerger date, the exercise price for options granted

under ESOS 2015 has been adjusted from Rs. 396 to Rs. 296.

  1. Method used to account for ESOS -Intrinsic or fair value Fair value

1

Reliance Capital Limited

  1. Where the company opts for expensing of the options using the intrinsic value of the options, difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options. The impact of this difference on profits and on EPS of the company Under the previous GAAP, the Company has used the intrinsic value method to account for the compensation cost of stock to the employees. Under Ind AS, the Company is using Fair Value Method for accounting of ESOS and the difference in above figures is not applicable.
  2. Option movement during the year (For each ESOS):

Sr.

Particulars

ESOS 2015

No.

a.

Number of options outstanding at the beginning of the period

69,530

b.

Number of options granted during the year

Nil

c.

Number of options forfeited / lapsed / surrendered during the year

8,440

d.

Number of options vested during the year

Nil

e.

Number of options exercised during the year

Nil

f.

Number of shares arising as a result of exercise of options

Nil

g.

Money realized by exercise of options (INR), if scheme is implemented

Nil

directly by the Company

h.

Loan repaid by the Trust during the year from exercise price received

-

i.

Number of options outstanding at the end of the year

61,090

j.

Number of options exercisable at the end of the year

61,090

v.

Weighted average Fair Value of Options granted during the year whose

ESOS 2015

Date of Grant

-

a.

Exercise price equals market price

b.

Exercise price is greater than market price

-

c.

Exercise price is less than market price

-

Weighted average Exercise Price of Options granted during the year

whose

a.

Exercise price equals market price

-

b.

Exercise price is greater than market price

-

c.

Exercise price is less than market price

-

vi.

Employee wise details (name of employee, designation, number of options granted during the year, exercise price) of options granted to -

  1. Senior Managerial Personnel None
  2. Any other employee who receives a grant in any one year of option amounting to 5% or more of option granted during that year
    None
  3. Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant.
    None

2

Reliance Capital Limited

  1. A description of the method and significant assumptions used during the year to estimate the fair value of options including the following information:
    The Black Scholes valuation model is an option pricing model widely used for valuation of options and the Company has used this model for computing the weighted average fair value considering the following inputs:

ESOS 2015

Sr.

Particulars

Details

No.

Date of Grant

October 15, 2015

a.

The weighted average values of share price

Exercise Price (Rs.)

₹ 296

Expected volatility

44.61% to 46.39%

Expected option life (years)

4.51 to 6.51

Expected dividend yield

2.28%

Risk-free interest rate

7.51% - 7.56%

Any other input to the model

NA

b.

the method used and the assumptions

Black Scholes Method

made to incorporate the effects of expected

Please see Note No. 32 on Page No. 80 of

early exercise

Annual Report of the Company for the year

2022-23.

c.

how expected volatility was determined,

The expected volatility was determined based

including an explanation of the extent to

on historical volatility data. Volatility has been

which expected volatility was based on

considered for periods, corresponding to the

historical volatility

respective expected lives of the different

grants, prior to the grant date. Daily volatility of

the Company's stock price on NSE over these

years has been considered.

d.

whether and how any other features of the

Not applicable

option grant were incorporated into the

measurement of fair value, such as a

market condition.

viii.

Until all options granted in the three years prior to the IPO have been exercised or have lapsed, disclosures of the information specified above in respect of such options shall also be made.

Not applicable

  1. Details related to Trust
  1. General information

Sr.

Particulars

Details

No.

a.

Name of the Trust

RCAP ESOS Trust

b.

Details of the Trustee(s)

Reliance ADA Group Trustees

Private Limited

3

Reliance Capital Limited

c.

Amount of loan disbursed by company / any company in

Nil

the group, during the year

d.

Amount of loan outstanding (repayable to company / any

The Company had outstanding

company in the group) as at the end of the year

loan of ₹ 5,416 lakh with the Trust

as on March 31, 2023

e.

Amount of loan, if any, taken from any other source for

Nil

which company / any company in the group has provided

any security or guarantee

f.

Any other contribution made to the Trust during the year

Nil

  1. Brief details of transactions in shares by the Trust

Sr.

Particulars

Details

No.

a.

Number of shares held at the beginning of the year

16,00,000 Equity shares

b.

Number of shares acquired during the year through (i) primary

Nil

issuance (ii) secondary acquisition, also as a percentage of paid

up equity capital as at the end of the previous financial year,

along with information on weighted average cost of acquisition

per share

c.

Number of shares transferred to the employees / sold along with

Nil

the purpose thereof

d.

Number of shares held at the end of the year

16,00,000 Equity shares

  1. In case of secondary acquisition of shares by the Trust

Number of shares

as a percentage of paid-up equity capital as at

the end of the year immediately preceding the

year in which shareholders' approval was

obtained

Held at the beginning of the year

0.64%

Acquired during the year

Nil

Sold during the year

Nil

Transferred to the employees during the year

Nil

Held at the end of the year

0.64%

4

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Reliance Capital Limited published this content on 08 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2023 11:26:00 UTC.