Together good things happen - Airtel

(Shares in Thousands) As of March 31, 2010
(vi) The fair value of the options granted was estimated on
the date of grant using the Black-Scholes / Lattice
valuation model with the following assumptions
Particulars For the
For the
year ended year ended
March 31,2010 March 31, 2009
Risk free interest rates 6.44% to 7.86% 4.45% to 9.70%
Expected life 48 to 66 months 48 to 60 months
Volatility 36.13% to 37.47% 36.23% to 41.39%
Dividend yield 0.31% 0
Weighted average
share price on the
date of grant 307.42 to 412.13 308.40 to 416.27
The volatility of the options is based on the historical
volatility of the share price since the Company’s equity
shares became publicly traded, which may be shorter
than the term of the options.
As of March 31, 2009
Number of Weighted Weighted Number of Weighted Weighted
stock options average average stock average average
exercise remaining options exercise remaining
price (Rs.) contractual price (Rs.) contractual
life (in Years) life (in Years)
Scheme 2005
Number of shares under option:
Outstanding at beginning of year 5,998 237.30 7,682 237.30
Granted 1,323 5.00 - -
Exercised 920 128.37 478 134.08
Cancelled or expired 604 - 1,206 -
Outstanding at the year end 5,797 192.53 2.44 to 6.34 5,998 237.30 3.44 to 5.92
Exercisable at end of year 2,576 192.53 1,876 237.30
Weighted average grant date fair value/exercise price per
option for options granted during the year/
period at less than market value 1,323 401.40 - -
Scheme 2008 & Annual Grant Plan
Number of shares under option:
Outstanding at beginning of period 5,794 331.22 - -
Granted 2,566 402.50 6,216 330.36
Exercised 1 - - -
Cancelled or expired 1,328 - 422 -
Outstanding at period end 7,031 352.05 5.25 to 6.25 5,794 331.22 6.25 to 6.76
Exercisable at end of period 1,282 352.05 - -
Weighted average grant date fair value/exercise price per
option for options granted during the year/
period at less than market value 2,566 169.45 6,216 154.44
*Options have been exercised out of the shares issued to the trust
The weighted average share price during the year was Rs 365.48.
(vii) The balance of deferred stock compensation as on March
31, 2010 is Rs 977,748 thousand (March 31, 2009 Rs
824,092 thousand) and total employee compensation
cost recognized for the year then ended is Rs 934,185
thousand (March 31, 2009 Rs 646,967 thousand).
(viii)The Company has granted stock options to the employees
of the subsidiaries i.e. Bharti Hexacom Limited and Bharti
Infratel Limited and the corresponding compensation
cost is borne by the Company.
28.Earnings per share (Basic and Diluted):
The board of directors in its meeting held on April 29, 2009
have approved sub-division (share split) of existing equity
shares of Rs 10 each into 2 equity shares of Rs 5 each, which
was duly approved by postal ballot by the shareholders of
the Company on July 11, 2009. Accordingly, EPS for the year
ended March 31, 2010 and previous year has been restated,
as applicable, below: