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1. A company's capital structure is said to be "Complex Capital Structure" when the company has issued FOUR types of securities and in such case the EPS is presented as Basic EPS and Diluted EPS. Which of the securities constitute the complex capital structure? Suppose that ABC Limited provides the below information pertaining to FY21: Basic EPS = INR 1.37 per share. EBIT = INR 12 millions. The company also has 11% convertible preference share capital of INR 25 millions (face value of INR 50 each). The company's applicable tax rate is 20%. Compute the basic and diluted EPS of the company for FY21. Also explain why the Diluted EPS will always be less than or equal to Basic EPS. 2. XYZ Ltd closes its books every year on 31-March. It reported a profit of INR 500 crores and INR 550 crores for the accounting years 2019-20 and 2020-21 respectively. The company claims that the profits of the company have increased by 10%, despite the COVID pandemic. Mr. Advik is an analyst and is keen to know if the company delivered a similar performance from the cash generation perspective by its operational activities. He collects additional information as below: Depreciation on PPE were INR 75 Crores both the years, there was a sale of a fully written down machinery on 30-Sep-2020 and the sale proceeds included INR 25 crores (adjusted for taxes) and the company had paid interests of INR 10 crores and INR 12.5 crores in FY20 and FY21 respectively (Company's policy is to treat interest costs as financing cash flow, but makes no adjustments to tax expense due to the interest component). Taxes paid were at 25% on PBT both the years. Assume that there were no changes in working capital items. Give any two reasons why companies may have higher profits in their income statement, yet show a lesser cash generation during the same period. Compute and compare the cash flow from operations of FY20 and of FY21.