Employees' Stock Option Plans (ESOP) (Tables)

12 Months Ended

Mar. 31, 2018

The following is the summary of grants made during fiscal 2018, 2017 and 2016 under the 2015 Plan:

Particulars	Fiscal 2018		Fiscal 2017		Fiscal 2016

RSU
Salil Parekh, CEO and MD - Refer Note 1 below		113,024		–		–
U.B. Pravin Rao, COO and WTD		27,250		–		–
Dr.Vishal Sikka*		270,224		120,700		124,061
Other KMP**		271,100		246,250		–
Employees other than KMP		1,599,010		2,507,740		–
		2,280,608		2,874,690		124,061
ESOP
U.B. Pravin Rao, COO and WTD		43,000		–		–
Dr. Vishal Sikka*		330,525		–		–
Other KMP**		44,450		502,550		–
Employees other than KMP		73,600		703,300		–
		491,575		1,205,850		–

Incentive units- cash settled
Other employees		50,040		112,210		–
		50,040		112,210		–

Total grants		2,822,223		4,192,750		124,061

*	Upon Dr. Vishal Sikka's resignation from the roles of the company, the unvested RSUs and ESOPs have been forfeited

**	Refer note 2.19 for details on resignation of certain KMPs

Break-up of employee stock compensation expense

(Dollars in millions)
	Year ended March 31,
	2018			2017		2016
Granted to:
KMP ⁽¹⁾		(2	)		5		1
Employees other than KMP	15				12	–
Total		13			17		1
Cash settled stock compensation expense included in the above	1			–		–

(1)	Included a reversal of stock compensation cost of $5 million for fiscal 2018, towards forfeiture of stock incentives granted to Dr. Vishal Sikka upon his resignation.

The fair value of each equity settled RSU is estimated on the date of grant using the Black-Scholes-Merton model with the following assumptions:

Particulars	For options granted in
	Fiscal 2018-Equity Shares-RSU		Fiscal 2018-Equity shares ESOP		Fiscal 2018 -ADS-RSU		Fiscal 2018 -ADS-ESOP
Weighted average share price (₹) / ($- ADS)		1,144		923		16.61		14.65
Exercise price (₹)/ ($- ADS)		5.00		919		0.08		14.67
Expected volatility (%)	20-25		25-28		21-26		25-31
Expected life of the option (years)	1 - 4		3 - 7		1 - 4		3 - 7
Expected dividends (%)		2.78		2.78		2.74		2.74
Risk-free interest rate (%)	6 - 7		6 - 7		1 - 2		1 - 2
Weighted average fair value as on grant date (₹) / ($- ADS)		1,066		254		15.47		2.93


Particulars	For options granted in
	Fiscal 2017-Equity Shares-RSU		Fiscal 2017-Equity shares ESOP		Fiscal 2017 -ADS-RSU		Fiscal 2017 -ADS-ESOP
Weighted average share price (₹) / ($- ADS)		1,067		989		15.77		15.26
Exercise price (₹)/ ($- ADS)		5.00		998		0.07		15.26
Expected volatility (%)	24-29		27-29		26-29		27-31
Expected life of the option (years)	1- 4		3 - 7		1- 4		3 - 7
Expected dividends (%)		2.37		2.37	2. 29		2. 29
Risk-free interest rate (%)	6- 7		6- 7		1 - 2		1 - 2
Weighted average fair value as on grant date (₹) / ($- ADS)		1,002		285		14.84		3.46

The activity in the 2015 Plan for equity-settled share based payment transaction during the year ended March 31, 2018 is set out below:

	Year ended March 31, 2018
	Shares arising out of options	Weighted average exercise price($)
2015 Plan -RSU
Outstanding at the beginning*	2,961,373	0.07
Granted	2,280,608	0.08
Exercised	648,217	0.07
Forfeited and expired	843,355	0.07
Outstanding at the end	3,750,409	0.07
Exercisable at the end	24,205	0.07
2015 Plan-ESOP
Outstanding at the beginning	1,197,650	15.26
Granted	491,575	14.62
Exercised	52,412	15.26
Forfeited and expired	669,900	14.84
Outstanding at the end	966,913	15.23
Exercisable at the end	196,912	15.26

The activity in the 2015 Plan for equity-settled share based payment transaction during the year ended March 31, 2017 is set out below:

	Year ended March 31, 2017
	Shares arising out of options	Weighted average exercise price($)
2015 Plan -RSU
Outstanding at the beginning*	221,505	0.07
Granted	2,874,690	0.07
Forfeited and expired	100,760	0.07
Exercised	34,062	–
Outstanding at the end	2,961,373	0.07
Exercisable at the end	–	–
2015 Plan -ESOP
Outstanding at the beginning	–	–
Granted	1,205,850	15.26
Forfeited and expired	8,200	15.26
Exercised	–	–
Outstanding at the end	1,197,650	15.26
Exercisable at the end	–	–

As at March 31, 2018 and March 31, 2017, 111,757 and 106,845 incentive units were outstanding (net of forfeitures).

The activity in the 2015 Plan for equity-settled share based payment transaction during the year ended March 31, 2016 is set out below:

	Year ended March 31, 2016
	Shares arising out of options	Weighted average exercise price($)
2015 Plan - RSU
Outstanding at the beginning*	108,268	0.07
Granted	124,061	0.07
Forfeited and expired	–	–
Exercised*	10,824	0.07
Outstanding at the end	221,505	0.07
Exercisable at the end	–	–

*	Adjusted for bonus issue. (Refer to note 2.13).

The following table summarizes information about equity settled RSUs and ESOPs outstanding as of March 31, 2018:

	Options outstanding
Range of exercise prices per share ($)	No. of shares arising out of options	Weighted average remaining contractual life	Weighted average exercise price ($)
2015 Plan: ADS and IES
0 - 0.08 (RSU)	3,750,409	1.89	0.07
13 - 17 (ESOP)	966,913	6.60	15.23
	4,717,322	2.57	3.18

The following table summarizes information about equity settled RSUs and ESOPs outstanding as at March 31, 2017:

	Options outstanding
Range of exercise prices per share ($)	No. of shares arising out of options		Weighted average remaining contractual life		Weighted average exercise price ($)
2015 Plan:
0 - 0.07 (RSU)		2,961,373		1.88		0.07
14 - 16 (ESOP)		1,197,650		7.09		15.83
		4,159,023		3.38		4.61