Balance Sheet of Super Gain Ltd. As on 31 March 2010
|
Liabilities: |
|
|
Share Capital: |
5,00,000 |
|
5,000 Shares of Rs.100 each |
1,00,000 |
|
General Reserve |
70,000 |
|
Profit and Loss Account |
1,45,000 |
|
Sundry Creditors |
|
|
Income Tax Reserve |
8,50,000 |
|
Assets: |
|
|
Land & Buildings |
2,00,000 |
|
Plant & Machinery |
3,00,000 |
|
Patents & Trade Marks |
25,000 |
|
Stocks |
75,000 |
|
Debtors |
2,00,000 |
|
Bank balance |
35,000 |
|
Preliminary expenses |
15,000 |
The expert valuer valued the land and buildings at Rs.2,50,000; plant and machinery at Rs.2,80,000 and Goodwill at Rs.2,00,000. Out of the total debtors, it is found that debtors of Rs.20,000 are bad. The profits of the company were as follows:
|
2007–08 |
: |
1,00,000 |
|
2008–09 |
: |
1,30,000 |
|
2009–10 |
: |
1,50,000 |
The Company follows the practice of transferring 25% to general reserve. Similar types of companies earn at 10% of the value of their shares.
You are required to ascertain the value of the shares of the company as follows:
- Intrinsic value method
- Yield value method
- Fair value method