Amalgamation doubts

IPCC 16402 views 32 replies

very rightly said by faiz bhai

Replies (32)

very rightly said by faiz bhai

explanation made by Mr. Faiz is really very good.

keep it up....

thanks......

The Answer's to ur Questions are as follows:

1. Debenture holder are not the owners of the comapany and PC is distributed to the owners's i..e equity as well as preferance holders.

2.I.V = net worth/ no. of equity shares

PC = Net Assets/ I.V

3. It is based on the agreements  between vendor and purchasing comapanies.

Very Nice Explanation by Faiz Ahmed .

Totally Agree With Faiz Ahmed Bhai...

Thanks

nnnnnhhhhhhhhhhhhhhhhhhhhhhhhhhh

thank you Faiz sir for nice explanations ..,,

While calcutaing intrinsic value why we dont take into consideration the amt to be paid to prefernece shareholders...?? Or if we take then... why we take...??

Intrinsic value -when CO liquidate how much amt would be realised for EQUITY SHAREHOLDERS.. since they are the owner of the co. 

Preference shareholders are not owners.that's why not deducted while calculating intrinsic  value

So while claculating net worth we should deduct it from nav at its(pref.shares) redeemable value...

 

ì

And suppose in a given case... pref shares are in books of a/c .....

of 20k there is no intention to redeemed  them at any premium but the transfree co. Is taking pref shares  at any premium let 10% so while calculating net worth what would be the amt. That we will b deducting from nav...

20k or 22k

????

Yes we should deduct pref share capital while calculating net worth.

Transfree CO pay to pref shareholders at premium as purchase consideration in case of takeover. 

What is the need of calculating net worth? Since Co is taken over by another company.I dnt understand ur ques clearly..

Its november 2004 que ... ipc group 1 

In that que pc can b calculated by npm but while calculating npm... amt of cash paid to shareholdrs per share they hold is missing so to calculate that cash amt. .... we need to calculate intrinsic value ... nd for that i m confused regarding the amt of pref shares to b deducted from nav..

 

Should be reduced at redeemed value.. 

While calculating purchase consideration should we consider third party liability or not


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