Page 193 - Corporate Finance PDF Final new link

NPP

BRILLIANT’S Long Term Financing and Valuation of Goodwill & Shares 193

4. Valuation of Shares under Intrinsic Value Method:

Particulars `
Capital Employed (as in (1) above) 2,18,000
Less: Preference Shareholder's Claim 1,00,000
1,18,000
Add: Goodwill (as valued in (3) above) 24,600
1,42,600
Number of Equity Shares 5,000
Value per Share (` 1,42,600 / 5,000) ` 28.52

Illustration 3.1.2
st
The Balance Sheet of W Ltd. as at 31 March, 2016 showed the following position:
31 ‘mM© 2016 H$mo W {b{‘Q>oS> H$s ~¡b|g erQ> {ZåZ{b{IV pñW{V Xem©Vr h¡…
Balance Sheet of W. Ltd as at 31st March, 2016 / 31 ‘mM© 2016 H$mo W {b{‘Q>oS> H$s ~¡b|g erQ>

Particulars Note No. Amount
({ddaU) (ZmoQ> g§.) (am{e)
(`)
I. EQUITY AND LIABILITIES / Bp³dQ>r Am¡a bm¶{~{bQ>rO
(1) Shareholder's Funds: / eo¶a hmoëS>g© Ho$ ’§$S²>g
(a) Share Capital - 20,000 Equity Shares of ` 100 each
eo¶ H¡${nQ>b - 20,000, ` 100 H$m Bp³dQ>r eo¶a 20,00,000
(b) Reserves and Surplus - General Reserve
[aOd© Am¡a gaßbg - OZab [aOd© 6,00,000
(c) Profit and Loss Account / àm°{’$Q> Am¡a bm°g AH$mC§Q> 3,50,000
(2) Share Application Money Pending Allotment:
eo¶a EpßbHo$eZ ‘Zr n|qS>J Abm°Q>‘|Q> –
(3) Non-current Liabilities: / Zm°Z-H$a§Q> bm¶{~{bQ>rO –
(4) Current Liabilities: / H$a§Q> bm¶{~{bQ>rO
(a) Short-term Borrowings - Bank Loan
em°Q>©-Q>‘© ~m°amoB§½g - ~¢H$ bmoZ 3,00,000
(b) Trade Payables - Creditors / Q´>oS> noE~ëg - H«o${S>Q>g© 4,00,000
(c) Short-term Provisions - Provision for Taxation
em°Q>©-Q>‘© àmo{dO§g- àmo{dOZ ’$m°a Q>¡³goeZ 5,00,000
TOTAL / Hw$b 41,50,000