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sfm paper gue mistake

rohit (fgxjgxf) (16 Points)

05 May 2018

wheathr promotrs holding gue.....was incomplte??

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arindam ghosh (student) (24 Points)
Replied 05 May 2018

yes.. if institute accepts the mistake, fine or else the promoter holding would have to be assumed

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rohit (fgxjgxf) (16 Points)
Replied 05 May 2018

bt we neve assumed amounts...dats..y....oderwise 84 was as gven in pm

arindam ghosh (student) (24 Points)
Replied 05 May 2018

hoping for the best. it has not only created panic but also costed good amount of time during the exam.

Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Simply one should have assumed percentage of holding more than 75%....say 80 to 85%....and solve on that assumption.... Full marks allocated to that students.... Suitable assumptions is allowed.... So question is not wrong in any manner.... Between 75 to 100% u assume any percentage.... This is not law paper or taxation paper....

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rohit (fgxjgxf) (16 Points)
Replied 05 May 2018

exactly..nt law or taxation...bt hw one can assume amount..n y dey dnt gve it...

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Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Hey its not amount.... Its percentage of holding... Obviously it should be greater than 75% to somewhere upto 90%....this is rational assumption.... As in question specifically mentioned that promoters holding should be restricted upto 75%....that means he already holds more than 75%....what is in wrong to assume percentage of shareholding by promoter.... If questions give 80% or 85% or 90%....question can be solved in all three cases... So tell me

sagar parakh (189 Points)
Replied 05 May 2018

I don't think u can make assumption of percentage holding.

Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Haha what is wrong in that assumption... Suitable assumptions always allowed... If icai give 80% then it doesn't make universal truth... Data can be anything... Icai can ask to solve that problem by assuming % of holding 80% or 85% or 90%....in all three case question can be solved... Bdw leave it and focus on ur next paper.... In ipcc exam in capital gain sums icai forgot to give index of the year... And i assume that X And solve that on that basis... And got full marks... Figures can be anyone... Only ur process should be right on given figures... I wonder what is problem in that assumption

(Guest)

Agree with @ Divakar bro.

Yes i used assumption of 80% holding by promoter and written clearly that assumption and why i am making an assumption, since without assumption question can not be solved. Few of my frnds told me that they used Ke to calculate percentage of holding, but its not possible to calculate percentage with ke.

i assumed 80% holding and hence my answer came as 1 lakh bonus shares.

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Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Assumption always allowed... Where ever necessary in account cost and fm paper

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Mritunjay Kumar Sinha (tester) (51 Points)
Replied 05 May 2018

Question 5(b) is not wrong:

Solution:

Value of floating stock: 45 crore

Market Price per share: Rs 150

Hence No of shares available in Market: 45Crore/150 => 30 Lacs

Capitalization Rate= 20%

Hence total no of shares available: 30Lacs/20% => 150 Lacs

Promoters Holding => 80%

Bonus Ratio:

Let bonus ratio be b

(30+30b)/(150+30b)=.25

=> b=1/3

MPS after issue of bonus shares

let the MPS be M

Let profit after tax be P

EPS = P/150

P/E Ratio = MPS/EPS = 150/(P/150) = 22500/P

EPS After Bonus Issue = P/(120+30+30/3) = P/160

P/E Ratio after Bonus Issue = M/(P/160) = 160M/P

Since P/E Ratio is same

Hence 160M/P = 22500/P => M = 140.625

Free Float Market Capitalization = 40lacs * 140.625 = 56.25 Crore

Adarsh Bharuka (student) (24 Points)
Replied 06 May 2018

Hey buddy then we can also assume promoters already hold 75 % no need to issue bonus shares !!!Answer ends.. Though the norms require 75 % holding but we dont know what the company holds!!!! It can be anything 10% 75% or 90% Norms is different thing and what is the position of company is different thing!!

Adarsh Bharuka (student) (24 Points)
Replied 06 May 2018

Divakar (Student CA Final ) (11857 Points)
Replied 06 May 2018

@ Adarsh...hlw bhai maf kar do mujhe🙏🙏🙏ek bari question sahi se read kar lo... Question already specified promoters holding is more than 75% so that as per sebi guidelines its holding should be restricted to 75% by issuing bonus shares..... And assumptions are allowed only for questions solving and not for question ko khatam hi kar de.... Ye ek rational baat hai.... Assumption usi ka liya jata hai jis se question aage solve ho sake na ki question ko hi khatam kar do.... Bhai CA ban ne wale ho aap