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Valuation of shares

Renuka Thakur (Articled Assistant) (82 Points)

31 March 2014

Valuation of Shares

A company has a land at book value of Rs. 50,00,000/-. But its value as per circle rate is 1cr. While doing valuation of shares for the purpose of its transfer, the value should be the book value or the circle rate value?. please reply ASAP.

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4 Replies

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 31 March 2014

if questiin does not specify abt which amount is to be taken then go for new amout...bcs as ....company is able to realize at its assets on market value/ circle rate. hence for true value of share it is to be taken that value only...however if company is going for amalgamation in nature of merger then it shall b at book value only.

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Renuka Thakur (Articled Assistant) (82 Points)
Replied 31 March 2014

Sir, a company is taking over this company. I want to know the value of asset taken for valuation of share purpose. Whether it should be 50lacs or 1cr?

Renuka Thakur (Articled Assistant) (82 Points)
Replied 31 March 2014

Sir, a company is taking over this company. I want to know the value of asset taken for valuation of share purpose. Whether it should be 50lacs or 1cr?