Service Offerings
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Designing
- Assistance in formulating ESOP policy
- Based on the conceptual framework, design the most appropriate ESOP plan baring in mind various parameters specific to any industry company Financial Impact
- Impact on capital base, EPS, shareholding etc
- Quantification of likely benefit to employees
- Implication of ESOP accounting
- Tax incidence
- Drafting of Employee Stock Option Scheme document, employee agreements, communication drafts, trust deed, FAQs etc.
- Assisting the company in preparing the grant kit
- Employee interaction and knowledge sharing through “Employee Presentation”
Financial Impact
Legal documentation
- Maintenance of employee-wise data for the Options granted.
- Providing the actions to be taken w.r.t ESOP on cessation of employment.
- Providing details of vested and unvested Options on cessation of employment.
- Submission of pre decided MIS reports on monthly/quarterly basis.
- Scrutinizing the objectives of the ESOP, ESOP document and various resolutions passed.
- Analyzing the post ESOP impact.
- Analyzing accounting entries and legal compliance.
- Redrafting the ESOP scheme documents, if required.
- Reporting the divergence noticed and solutions for the same.
- Having a good scheme doesn’t make a success of the same unless it is properly sold to the employees. We do hold employee communication workshops where we share our knowledge on ESOPs, how it works, the dos and don’ts, taxation impact, decision making rules, case studies and details scheme designed by the company.
- Working out the intrinsic value and fair value of the Option.
- Working on the actual accounting hit on account of ESOP.
- Providing accounting entries to be passed.
- Working out impact on EPS as required under Indian Laws,
- Preparing a complete set of disclosures along with backup workings as required under Indian Laws.
- Communicating with the Auditors to resolve their queries, if any.
- Calculating the value of Option as required under the Intrinsic Value method of accounting.
- Calculating the value of Option as per Binomial method (Black Scholes method) as required under Fair Value method.
- Reporting the same with detailed back-up working.
- Communicating with the auditors to resolve their queries, if any.