Amalgamation doubts

Page no : 2

Arniv Sharda (CA Final) (3006 Points)
Replied 28 November 2010

very rightly said by faiz bhai

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CA Mudit Agarwal PGDFM,MCP,IFR (Dy. Manager (Taxation)) (289 Points)
Replied 28 November 2010

explanation made by Mr. Faiz is really very good.

keep it up....

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Nabeel (CA) (3288 Points)
Replied 28 November 2010

thanks......

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(Guest)

The Answer's to ur Questions are as follows:

1. Debenture holder are not the owners of the comapany and PC is distributed to the owners's i..e equity as well as preferance holders.

2.I.V = net worth/ no. of equity shares

PC = Net Assets/ I.V

3. It is based on the agreements between vendor and purchasing comapanies.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 29 November 2010

Very Nice Explanation by Faiz Ahmed .

Totally Agree With Faiz Ahmed Bhai...

Thanks

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Mohit Srivastava (Article) (131 Points)
Replied 29 November 2010

nnnnnhhhhhhhhhhhhhhhhhhhhhhhhhhh

Shalini Nayyar (Student) (365 Points)
Replied 29 November 2010

thank you Faiz sir for nice explanations ..,,

Tarun Sharma (4 Points)
Replied 26 February 2016

While calcutaing intrinsic value why we dont take into consideration the amt to be paid to prefernece shareholders...?? Or if we take then... why we take...??

kanika Seth (Student) (269 Points)
Replied 27 February 2016

Intrinsic value -when CO liquidate how much amt would be realised for EQUITY SHAREHOLDERS.. since they are the owner of the co.

Preference shareholders are not owners.that's why not deducted while calculating intrinsic value

Tarun Sharma (4 Points)
Replied 27 February 2016

So while claculating net worth we should deduct it from nav at its(pref.shares) redeemable value...

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Tarun Sharma (4 Points)
Replied 27 February 2016

And suppose in a given case... pref shares are in books of a/c .....

of 20k there is no intention to redeemed them at any premium but the transfree co. Is taking pref shares at any premium let 10% so while calculating net worth what would be the amt. That we will b deducting from nav...

20k or 22k

????

kanika Seth (Student) (269 Points)
Replied 27 February 2016

Yes we should deduct pref share capital while calculating net worth.

Transfree CO pay to pref shareholders at premium as purchase consideration in case of takeover.

What is the need of calculating net worth? Since Co is taken over by another company.I dnt understand ur ques clearly..

Tarun Sharma (4 Points)
Replied 27 February 2016

Its november 2004 que ... ipc group 1

In that que pc can b calculated by npm but while calculating npm... amt of cash paid to shareholdrs per share they hold is missing so to calculate that cash amt. .... we need to calculate intrinsic value ... nd for that i m confused regarding the amt of pref shares to b deducted from nav..