The following are the summarized balance sheets of P Ltd. and Q Ltd. as on 31 March 2011:
|
Liabilities |
P Ltd. |
Q Ltd. |
Assets |
P Ltd. |
Q Ltd. |
|
Share Capital (Rs.100 Each) |
36,00,000 |
32,00,000 |
Sundry Assets |
38,40,000 |
42,40,000 |
|
Reserves |
12,00,000 |
24,00,000 |
12,000 Shares in P Ltd |
— |
13,60,000 |
|
8,000 Shares in Q Ltd |
9,60,000 |
— |
|||
|
48,00,000 |
56,00,000 |
48,00,000 |
56,00,000 |
You are required to ascertain:
- The intrinsic value of shares of both companies individually as their respective net worth
- Purchase consideration if P Ltd. acquires the business of Q Ltd.
- Purchase consideration if Q Ltd. acquires the business of P Ltd.
- Purchase consideration if a new company R Ltd. acquires the amalgamated concerns of P Ltd. and Q Ltd.