Disclosure pursuant to Clause 12 of SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 Details of stock options granted, vested, exercised and lapsed during the year under review are as under :

Scheme(s) Grant Price () Options Granted Options Vested Options Exercised & Shares Allotted* Options Lapsed Total Options in force as on March 31, 2012#
ESOS – 2007 164.65 1,45,005 2,260 12,060
ESOS – 2011 317.85 4,16,963 83,190 10,89,659
ESOS -2011-Tr II 548.80 51050 2,500 48,550

* One(1) share would arise on exercise of one (1) stock option.
# Total Options in force is a total of options vested and not yet exercised and options not yet vested.

Other details are as under :
Options granted during the year : During the year, the Company granted 51,050 stock options on October 25, 2011 under ESOS 2011-Tranche II (each option carrying entitlement for one share of the face value of 10) to the eligible employees at a grant price of 548.80 per share.
Pricing formula for the Scheme(s) : ESOS 2011 –Tranche II:The closing price on October 24, 2011 on the Bombay Stock Exchange Ltd (BSE) was taken as grant price. This was the latest available closing price on the stock exchange having higher trading volume.
Money realised by exercise of options : The Company received 2.39 crores on account of stock options exercised during the year.
Details of options granted to:i: Directors & Senior managerial personnel ii: Any other employee who receives a grant in any one year of option amounting to 5% or more of option granted during that year iii: identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital of the Company at the time of grant : ESOS 2011 – Tranche II:14,000 options were granted to senior managerial personnel of the Company. One employee was granted options amounting to 5% or more of options granted during the year. No director or employee has been granted options equal to or exceeding 1% of the issued equity share capital of the Company
Variation of terms of options :

Diluted Earnings Per Share (EPS) pursuant to issue of shares on exercise of option calculated in accordance with Accounting Standard (AS) – 20 :

Nil

34.01

Disclosure of difference between the employee compensation cost using intrinsic value of stock options instead of fair value of the options and the impact of difference on profits and on EPS of the Company : ESOS 2011 and ESOS 2011 Tranche II :Since the options were granted at the market price, the intrinsic value of the option is nil. Consequently the accounting value of the option (compensation cost) was also nil. However, if fair value of the options according to Black-Scholes–Mertons Option Pricing Model was to be used for calculating the accounting value of the option, the compensation cost would have been 3.81 crores, the profit after tax would have been lesser by 3.81 crores and basic and diluted EPS would have been 33.05 & 32.94 respectively.
Weighted-average exercise prices and weighted-average fair values of options : ESOS 2011 :All the options were granted at an exercise price of 317.85 per option and hence the weighted average price is 317.85 per option. The weighted average fair value of the option (using the Black-Scholes-Mertons Option Pricing Model) works out to 51, 67 and 75 for the options vesting on February 10, 2012, February 10, 2013 and February 10, 2014 respectively.

ESOS 2011 Tranche II: All the options were granted at an exercise price of 548.80 per option and hence the weighted average price is 548.80 per option. The weighted average fair value of the option (using the Black-Scholes–Mertons Option Pricing Model) works out to 70, 101 and 116 for the options vesting on October 25, 2012, October 25, 2013 and October 25, 2014 respectively.

A description of the method and significant assumptions used during the year to estimate the fair values of options, at the time of grant including the following weighted-average information:

(a) risk-free interest rate, (b) expected life, (c) expected volatility of share price (d) dividend yield rate (e) the price of underlying share in the market at the time of option grant :

ESOS – 2011
Assumption Parameters February 10, 2012 February 10, 2013 February 10, 2014
Risk free interest rate(%) 7.54 7.65 7.85
Expected life (days) 455 821 1186
Expected volatility of share price (%) 30 30 30
Dividend yield rate (%) 2.20 2.90 3.75
Market price of equity shares on the date of grant ranged from 316 to 330 316 to 330 316 to 330
ESOS – 2011-Trache II
Assumption Parameters October 25, 2012 October 25, 2013 October 25, 2014
Risk free interest rate(%) 8.65 8.69 8.61
Expected life (days) 366 731 1096
Expected volatility of share price (%) 25 25 25
Dividend yield rate (%) 2.20 2.90 3.75
Market price of equity shares on the date of grant ranged from 545 to 559 545 to 559 545 to 559