Netsol Limited is a PSX listed company that trades in Technology Services. On $1$st July, $2021$ Netsol has granted $1000$ share options to each of its $50$ Directors provided that they are still employed by Netsol on $30$th June $2024.$ It was further stated that option shall not vest unless share price become PKR$\mathrm{.}15.$ On $30$th June, $2022$ the share price was PKR$.12$ & on $30$th June, $2023$ share price was PKR$\mathrm{.}13.$ at the end of $3$oth June, $2024$ the share price has risen to PKR$\mathrm{.}14.$The option had a fair value of PKR$.6$ as on $1$st July, $2021.$ The share has an exercise price of PKR$\mathrm{.}5/$share$.$

By the end of $30$th June, $202210$ directors has left and Netsol estimated that further $10$ directors shall leave by the end of vesting period. On $30$th June, $2023$ total $20$ directors had left $($including those who left in previous year$)$ and company estimated that further $3$ directors shall leave by the end of $30$th June, $2024.$

By the end of $30$th June, $2024$ further $6$ employees left the company.

Required:

$($a$)$ Explain briefly what you understand by equity settled share based payment and what conditions are relevant for vesting of options.

$($b$)$ Calculate the profit & Loss and Income statement extract for the year ended $3$oth June, $2022,30$th June, $2023$ & $30$th June, $2024$

$($c$)$ What happened the equity reserves if after being entitled the directors do not exercise the right?