Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Valuation of shares

Others 300 views 4 replies

Renuka Thakur

Articled Assistant

82 Points Joined June 2012

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.

Replies (4)

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Joined June 2010

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.

Renuka Thakur

Articled Assistant

82 Points Joined June 2012

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 Joined June 2012

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?