Valuation of company for purpose of investor

CA Neha Teotia (Professional) (33 Points)

28 June 2014

Dear Professionals,

I am attaching here the data of the company to evaluate of company worth for purpose of investor including two years projections.

Regards

CA Neha Teotia

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CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 29 June 2014

BALANCE SHEET AS ON 31.03.2014

Particulars	Note	2014	2013

I. EQUITY AND LIABILITIES

(1) Shareholder's Funds
(a) Share Capital		100000	100000
(b) Reserves and Surplus		705502	447008
(c) Money received against share warrants	-


(2) Share application money pending allotment	-

(3) Non-Current Liabilities
(a) Long-term borrowings	-	0	0
(b) Deferred tax liabilities (Net)	-	NIL	NIL
(c) Other Long term liabilities	-	NIL	NIL
(d) Long term provisions	-

(4) Current Liabilities
(a) Short-term borrowings		0	50000
(a) Trade payables		11300	11300
(b) Other current liabilities		72848	65596
(c) Short-term provisions		110783	85154


Total		1000433	759058


II.Assets
(1) Non-current assets
(a) Fixed assets
Tangible assets	-	NIL	NIL
(ii) Intangible assets	-	NIL	NIL
(iii) Capital work-in-progress	-	NIL	NIL
(iv) Intangible assets under development	-	NIL	NIL
(b)Other Non-current investments	0	0	4290

(2) Current assets
(a) Current investments	-
(b) Inventories	-
(a) Trade receivables	0	164347	112347
(b) Cash and cash equivalents	0	611957	518529
(c) Short-term loans and advances	0	224129	123892
(f) Other current assets	-	NIL	NIL

Total		1000433	759058

valuation of Company

	Value of Company - Net Asset Method
					31-Mar-14	31-Mar-13
	Assets
	Trade receivables				164347	112347
	Cash and cash equivalents				611957	518529
	Short-term loans and advances				224129	123892
		Total Assets		(A)	1000433	754768

	Less: Outside Liability
	Long-term borrowings				-	0
	Trade payables				11300	11300
	Other current liabilities				72848	65596
	Short-term provisions				110783	85154
		Total Outside Liability		(B)	194931	162050

		Value of Company		(A-B)	805502	592718
		No. of Equity Shares			10000	10000
		Value Per Share			80.55	59.27

		EPS	Profit after Tax/No.of shares		25.85	19.04
		PE Ratio	(Share price/EPS)		3.13	4.25




Presumptions & Notes:
1)	All Values are considered on the Basis of Audited Balance Sheet As on Reported Date.
2)	Rs. 4290/- is not considered as asset on 31.03.2013, as they were not productive asset.

Calculation of Ratios
			31-Mar-14	31-Mar-13
Assets
Trade receivables			164347	112347
Cash and cash equivalents			622775	518529
Short-term loans and advances			224129	123892

	Total current Assets	(A)	1011251	754768

Liabilities

Trade payables			11300	11300
Other current liabilities			72848	65596
Short-term provisions			117450	85154

	Total Current Liabilities (B)		201598	162050


	Current Ratios		5.0	4.7