Illustration 5: (.~ * On 318 March, 2010 the balance sheet of Jamuna Ltd. was as follows: Balance Sheet Liabilities haas Share capital: Authorized 40,000 equity shares of Rs. 100 each Land and buildings Issued and paid up 30,000 equity share of Plant and machinery Rs, 100 each 30,00,000 Less: Calls in arrears at Rs. 20each ___4,000 | 29,96,000 | Stock Profit and loss Alc. Sundry debtors Bank Overdraft Creditors - Bank Provision for taxation Proposed dividend On 31% March, 2010 Land building were values at Rs. 7,50,000 and plant and machinery were valued at Rs. 4,50,000. Normal rate of return can considered at 8%. Goodwill is to be valued at Rs. 1,35,600. Find the intrinsic value of fully paid and partly paid equity shares.Illustration 10 _—"~\ The follwing are the Balance Sheet of Ram Ltd. Shyam Ltd. as on 31% March, 2008: Balance Sheet of Ram as on 31% March, 2008 [ Liabilities 20,000 Equity Share of Rs. 10 each fully paid up General Reserves Profit and Loss Ac 14% Debentures Current Liabilities Balance Sheet of Shyam as on 31% March, 2008 Liabilities Assets 9,000 Equity Share of Rs. 10 each fully paid up 90,000 |Fixed Assets ‘General Reserves 50,000 |-Current Assets Profit and Loss Alc ; ‘Sundry Creditors Bills Payable Ram Lid. to tak SI . tio i Prien ae ce over Shyam Ltd. Find out the ral of exchange of shares on the basisomsy- + piustration 11: 1 oo > “From the following information, calculate the value of an equity share: ,000{0% Preference Shares of Rs. 100 each Rs. 1,00,000 25,000 Quity Shares of Rs. 10 each, Rs. 8 per share paid up Rs. 2,00,000 ; Expected Profit before tax Rs. 1,09,000 : Rate of Tax W% | Transfer to General Reserve 20% of profit Normal Rate of Eaming 15%smystcanion 15 Balance Sheet of ¥ Ltd. as at 31st March, 2009 is given below: Liabilities Rs. Assets Rs. Equity Share capital '50,00,000 | Land 14,0000 {(8,00,000 shares of Fis. 10 each) Buildings 29,00,000| General Reserve 16,00,000 | Plant and Machinery 28,00,0%0 Debentures (14%) 10,00,000 | Sundry Debtors 6,00,000 ‘Sundry Creditors, 5,00,000 | inventory 8,00,000 Bank Overdraft 400,000 | Cash ana Bank 2,00,000 Provision for Taxation 100,000 | Patents and Trademarks 3,00,000 Preliminary expenses £85,00,000 “The profits of the company forthe past four years are as follows: ¥ (Rs) 2005-06 12,00,000 2006-07 15,00,000 2007-08 21,00,000 2008-09 23,00,000 Every year, the company transfers 20% of its profits to the general reserve. The industry average rate of return is 15% of the share value. On 31st March, 2009 Independent expert valuer has assessed the values of the folowing assets: Assets me land 26,00,000 Buidings 40,00,000 Plant and Machinery rn pi 32,00,000 Debtors (ater bad debis~—= + dove Er rs. 500,000 Patents and Trademarks 2,00,000| Based on the information given above, calculate the fair value of Y Ltd.'s share,Illustration 21 ( \4: ‘W )} (1) (2) (3) (4) (5) 6) ” 8) @) (10) The following particulars of Y Ltd. as on 31st March, 2012 are available: 1,00,000 Equity Shares of Rs. 100 each fully paid 10,000 12% Preference Shares of Rs. 100 each fully paid Securities Premium Profit and Loss A/c General Reserve Current Liabilities: Creditors Bills Payable Average Profit after Tax (for last three years) 20% of Profit after Tax is transferred to General Reserve every year Fictitious Assets Normal Rate of Retum is 10% Considering the above information, compute the value of equity share by: (1) @ @) Assets Backing Method. Yield Method. Fair Value Method (ignore goodwill). Rs, 31,20,000 Rs. 10,60,000 Rs. Rs. Rs. Rs. Rs, Rs. Rs. 1,00,00,000 10,00,009 11,50,000 33,58,000 18,85,000 44,80,000 5,85,000 80,000