Justification letter
This query is : Resolved
Rohit maheshwari
(Querist)
11 April 2012
friends i want to know the documents or point to be kept in mind while preparing justification letter for issuing share at premium....
CA Kishore Tallam
(Expert)
12 April 2012
U need to have Valuation of company which is issuing shares at premium.
Also, see that if any recent allotments are made, whether the same are made at same rate of premium.
If there is no valid basis for issuing shares at premium, then the same will be treated as deemed income in the hands of the company w.e.f AY 2013-14.
Also, see that if any recent allotments are made, whether the same are made at same rate of premium.
If there is no valid basis for issuing shares at premium, then the same will be treated as deemed income in the hands of the company w.e.f AY 2013-14.
Rohit maheshwari
(Querist)
12 April 2012
sir, can u plzz elaborate valuation of company by some example
CA Kishore Tallam
(Expert)
12 April 2012
A company can be valued in so many methods. One of such method is DCF - Discounted Cash Flow method.
Estimate the cash flows of the company for next 5 to 10 years, discount them to the present using cost of capital of the Company and the value arrived will be value of the company.
Estimate the cash flows of the company for next 5 to 10 years, discount them to the present using cost of capital of the Company and the value arrived will be value of the company.
Rohit maheshwari
(Querist)
12 April 2012
sir, i have one query if it is pvt ltd company.. thn also justification ltter required
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