H limited and its subsidiary S limited
Equity shares (Rs. 10) fully paid of H limited =12000 lakh
Equity shares (Rs. 10) fully paid of S limited = 4800 lakh
- H Limited purchased 180 lakhs shares in S Ltd. on 01-04-2008.
- On 01-01-2009 S Ltd. issued 3 fully paid-up shares for every 5 shares held as bonus shares out of balances in its general reserve as on 30-03-2008.
Doubt
- What date should be considered for calculating the number of shares held by holding company to know the holding status?
- If, holding % is calculated after adding the bonus shares issued by subsidiary company then logically the % will remain the same as the total number of shares increases automatically.
As per study material
On 01-04-2008 Original purchase-180 lakh shares
On 01-01-2009 Bonus issue 180*3/5=108 lakh shares
On 31-03-2009 total number of shares held by H ltd. in S ltd. =288 lakh shares
Total shares outstanding in S ltd (4800 lakh/Rs10) =480
% of holding (288/480) =60%
Why the bonus shares are not included in the total shares outstanding on 31-03-2009.
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