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Notes forming part of onancial statements (Contd.)
286
•
Annual Report 2016-17
e) Details of stock options granted during the year
The weighted average fair value of the stock options granted during the current year is
`
700.50 (Previous year
`
583.66). The Binomial tree valuation model has been used for computing the weighted average fair value for
stock options granted considering the following inputs:
For the year ended
March 31, 2017
Scheme XII
March 31, 2016
Scheme XI
Weighted average share price
700.50
583.66
Exercise Price
`
10
`
10
Expected Volatility
51.0%
35.08%
/ife of the options granted (Vesting and exercise period)
2.5 Months
3.5 years
Dividend yield
1%
1%
Average risk-free interest rate
7.1%
7.8%
Expected dividend rate
60%
60%
36. Contingent liabilities
The contingent liabilities as on March 31, 2017 were
`
452.15 million (previous year
`
Nil).
The Company has received a show cause notice from Commissioner of Service Tax on December 19, 2016 for non-
payment of service tax of
`
452.15 million under import of services on reverse charge basis, excluding interest and
penalty if applicable. The issue relates to the professional and technical services rendered by overseas subsidiaries
on behalf of the Holding Company to its overseas customers for the period 2011-12 to 2014-15.
The Company, based on independent legal opinion obtained in respect of issues related to this matter, believes that
the liability is not likely to arise and therefore, no provision is considered necessary in the onancial statements. The
Holding Company has oled a reply to this show cause notice. If this show cause notice results in a demand, there
will be no impact on the prootability as the Holding Company will be eligible to claim credit for the amount paid.
As on March 31, 2017, the pending litigations in respect of direct taxes amount to
`
156.72 million and in respect of
indirect taxes amount to
`
33.68 million (excluding the show cause received from Commissioner of Service Tax on
December 19, 2016 for non-payment of service tax of
`
452.15 million under import of services on reverse charge
basis as mentioned above). Based on the advice obtained and judgments in favour of the Company at the orst
appellate authority in the earlier years, the Group’s management does not expect any outpow in respect of these
litigations.
37. Capital and other commitments
(In
`
million)
As at
March 31, 2017
March 31, 2016
Capital commitments
Estimated amount of contracts remaining to be executed on capital account
and not provided for
30.98
61.13
Other commitments
Forward contracts
6,360.30
7,252.54
For commitments relating to lease agreements, please refer note 33.