Diluted Earnings per Share (Diluted EPS):

A dilution is a drop in the EPS figure that will follow from the issue of more equity shares on the
conversion of convertible instruments that have already been issued. A dilution can also result
in an increase in a loss per share. In order to compute diluted earnings per share, the profit or
loss that is attributable to ordinary equity holders of the parent business and the weighted
average number of shares outstanding need to be adjusted for the effects of all dilutive
potential ordinary shares. Only then can diluted earnings per share be calculated.

On the other hand, SPL is exempt from the EPS dilution requirement because there were no
potentially dilutive ordinary shares outstanding as of the reporting date.

The number of shares that can be calculated by comparing the amount of time that a specific
number of shares have been in circulation during a reporting period to the entire amount of
time that has been available during that period. The corporation distributed bonus shares in
preparation for the 2019-2020 fiscal year. These bonus issues have been given the same weight
as regular issues, as if they had been published ever since the year started. In accordance with
International Accounting Standard 33, "Earnings per Share," the previous year's EPS was
recalculated using the new weighted average number of shares so that it could be used as a
basis for comparison.

The Earnings per Share (EPS) figure, which can be seen in the Statement of Profit or Loss and
Other Comprehensive Income, has been formatted correctly, as can be seen. The calculation of
earnings per share was detailed in the notes section, with both the denominator and the
numerator broken down separately. The calculation of earnings per share also includes the
weighted average number of ordinary shares. During the period under consideration, there
were no such instruments, such as contingently issuable shares, that had the potential to dilute
the EPS. It is possible to draw the conclusion from this that Square Pharma strictly complies
with IAS 33.