VALUATION REPORT OF EQUITY SHARE CAPITAL



Similar documents
CORPORATE ACCOUNTING

Webcast on Revised Schedule VI. CA. Pankajj Goel

Indiabulls Housing Finance Limited (CIN: L65922DL2005PLC136029) Unaudited Consolidated Financial Results for the quarter and six months ended

DIRECTORS REPORT TO THE MEMBERS

Managerial Accounting Prof. Dr. Varadraj Bapat Department of School of Management Indian Institute of Technology, Bombay

SECTOR: REALTY REPORTING DATE: 31 ST MAY, 2016 PVP Ventures Ltd

PROFESSIONAL PROGRAMME Company Law Tax Laws

Model Answer Corporate Financial Accounting As-2372

Welcome to workshop on revised schedule VI. K. Chandra Sekhar Company Secretary Ace Designers Limited, Bangalore

Buyback of Shares. IPCC Paper 5: Advanced Accounting Chapter 4. CA. Shruthi BN, Bangalore

infotech.com SECTOR: IT SOFTWARE REPORTING DATE: 31 ST MAY, i Infotech Ltd.

MindTree Limited Balance sheet

LESSON 6 RATIO ANALYSIS CONTENTS

Ratio Analysis Fixed Assets Fixed Assets + Net Working Capital =0.75 Fixed Assets

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

Accounting Standard (AS) 14 Accounting for Amalgamations. IPCC Paper 1 Accounting,Chapter 1 CA.Karan Chopra

Brief Report on Closing of Accounts (connection) for the Term Ended March 31, 2007

DIRECTORS REPORT. The issued share capital of the Company as at March 31, 2011, was Rs. 5,00,000 divided into 50,000 equity shares of Rs. 10/ each.

Mantas India Private Limited. Directors Report

Fundamentals Level Skills Module, Paper F9. Section A. Monetary value of return = $3 10 x = $3 71 Current share price = $3 71 $0 21 = $3 50

NOTICE. 1. To consider, and if thought fit, to pass, with or without modification(s), the following resolution as a Special Resolution.

Accounting for Taxes on Income

September 30, September 30, , , , ,104.78

Internal Re organizations. Through Mergers / Demergers

ACCOUNTING FOR SHARE CAPITAL

Understanding Basic Financial Statements

None of the Directors had an interest in the shares of the company at any time during the year.

WIPRO DOHA LLC FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2016

Time allowed : 3 hours Maximum marks : 100. Total number of questions : 7 Total number of printed pages : 7

INDEPENDENT AUDITORS REPORT TO THE BOARD OF DIRECTORS OF HEXAWARE TECHNOLOGIES LIMITED

How To Write An Audit On Jet Airways Training Academy

Solution (a) Determination of operating leverage

Assist. Financial Calculators. Technology Solutions. About Our Financial Calculators. Benefits of Financial Calculators. Getting Answers.

Assignment Problems For Chapter 3

Certified Financial Management Professional VS-1201

CHAPTER 6. P.6.17 The following are the ratios relating to the activities of National Traders Ltd:

LETTER OF OFFER THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

118 One hundred Eighteen

AN OVERVIEW ON AUDIT OF PORTFOLIO MANAGEMENT SERVICES

LOAN AGAINST PROPERTY PRODUCT, POLICY SNAPSHOT

How to Retire 7 Years Early & Accumulate 10 Crores on Retirement

Rev Re i v sed e Scheduled VI Dhinal Shah Charte Chart re r d Accoun Accoun a t nt

Valuation for merger and acquisition. March 2015

Indian Accounting Standards (Ind AS) 26 February 2015

2. Accounting standard 14 is a nature of - a) mandatory, b) compulsory, c) injunction, d) all of these.

SUNRISE BISCUIT CO. PVT. LTD.

Financial Management

Overview of Business Valuations

FINANCIAL DISCLOSURES FOR THE QUARTER ENDED JUNE 30, 2013

Intermediate (IPC)Course Paper 3 Part 2 Financial Management Chapter 3 CA. N Raja Natarajan, B.Com, PGDBA, ACA

DIRECTORS REPORT TO THE MEMBERS

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS. Corporate Information

CHAPTER 9. Ratio Analysis

Solving financial challenges

CHAPTER 2 ACCOUNTING STATEMENTS, TAXES, AND CASH FLOW

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)

Financing Your Dream: A Presentation at the Youth Business Linkage Forum (#EAWY2014) Akin Oyebode Head SME Banking, Stanbic IBTC Bank, Nigeria.

URBAN GAS SUPPLIERS LIMITED Regd. Office: 11B, Mittal Towers, Nariman Point, Mumbai DIRECTORS REPORT

Oracle (OFSS) Processing Services Limited. Directors Report

3 Financial Analysis and Planning

TYPES OF FINANCIAL RATIOS

KNR CONSTRUCTIONS LTD.

NlLA INFRASTRUCTURES LIMITED

Consolidated Interim Earnings Report

What is an Employee Stock Ownership Plan (ESOP)?

PRELIMINARY RESULTS FOR HALF YEAR ENDED 30 SEPTEMBER 2015

6. Show all your workings. icpar

A Case Study on Critical Analysis of Tcs

CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY

CEMATRIX CORPORATION Consolidated Financial Statements (in Canadian dollars) September 30, 2015

ACCOUNTING SOLUTIONS SCO: 209, First Floor, Sector-36/D. Chandigarh (M): , , HOLDING COMPANIES

RELATE ACCOUNTS PRODUCTION

Un-audited Consolidated Financials Results for the Quarter ended 30th September 2015.

Financial Statements

CELTIC BUSINESS DEVELOPMENT CORPORATION INC.

Consolidated balance sheet

There are two types of returns that an investor can expect to earn from an investment.

Accuplacer Arithmetic Study Guide

Guidelines. Quarterly Accounts. Securities and Exchange Commission of Pakistan

FINANCIAL MANAGEMENT

Actuarial Society of India

Max Life Platinum Wealth Plan A Non Participating Unit Linked Insurance Plan UIN: 104L090V01

9.1. Legal status of a company and Registration of a company

Five Things To Know About Shares

Addendum. This addendum set out changes to be made in the Statement of Additional Information (SAI) of Tata Mutual Fund.

DRAFT RULES UNDER CHAPTER XV OF THE COMPANIES ACT, 2013 COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS. FORM No [See rule 15.

Update. SEBI introduces REIT in India- issues draft SEBI (Real Estate Investment Trusts) Regulations, CS Vinita Nair

Financial Management Sample paper 1

'Fly on the wings of belief.'

CMAC meeting Agenda paper 2 Debt vs Equity

GOVERNMENT OF YUKON. Financial Statement Discussion and Analysis for the year ended March 31, 2007

Article Accounting Terminology

a) Whether there is a need to revisit the existing approach for debt: equity ratio or to continue with the existing composition?

Results For The Financial Year Ended 31 December 2014 Unaudited Financial Statements and Dividend Announcement

TAXATION OF INCOME FROM SALARY TAX YEAR (1 st July th June 12)

Financial Statements Tutorial

HUDSON SALARY GUIDES 2015

Share-Based Payments. 1. Introduction. 2. Definitions

Kotak Mahindra Assets Management Company Limited

Security Analysis and Portfolio Management Prof. C. S. Mishra Department of VGSOM Indian Institute of Technology, Kharagpur

Transcription:

VALUATION REPORT OF EQUITY SHARE CAPITAL Seshachal Technologies Limited Prepared by Purna Chandra Sekhar.P Chartered accountant L N P & Co, Chartered Accountants, Sri Ganesh Nilyam, modelcolony, Near E.S.l, S.R Nagar, Hyderabad-500038.

Contents l-htroduction 1".1 Back ground 1.2 Purpose of valuation l-.3 Date of valuations L.4 The scheme 1.5 Rational and purpose of scheme 2. Companv information 2.1" Management 2.2 Financialsummary 2.3 Share holding pattern 3. Valuation 3.1 Approach and methodology 3.2 Valuation 3.3 Conclusion Y/ /r',ff/.-' I

1" lntroduction 1.1Back ground Seshachal Technologies Limited is a listed company engaged in the business of lt products development. The company has established infrastructure for developments of various ind ustry specific softwa re prod ucts. The company shares are listed in Bombay Stock Exchange (BSE LTD). 1.2 Purpose of valuation The purpose of this valuation report is to arrive at a fair value of equity shares of the company as on the valuation date on event of capital reduction through a scheme of reduction of capital in accordance with provisions of the company,s act j.956. 1.3 Date of valuation The effective date of valuation is March 31,,2014 1.4 The scheme The draft scheme of reduction of capital undersections 100 to to3 r/w 94 of the companies act,l-956 (as section 66 of the Companies act,2013) proposed between the company and its shareholders and creditors involves reduction of fully paid up equity share capital Rs.6,94,36000/- (Six Crore Ninety Four Lakh Thirty Six Thousands only) divided in to 69,43,600 (Sixty Nine Lakhs Forty Three Thousand Six Hundred) fully paid equity shares ofrs.10/- (rupees ten only) each to Rs. 69,43,600/- (Rupee sixty Nine Lakh Forty Three Thousand and six Hundred only) divided into 6,94,360 (Six Lakh Ninety Four Thousand Three Hundred and Sixtv only) fully paid up equity shares of Rs. L0/- each. 1.5 Rationale and Purpose of Scheme As per audited financial statements of the company as on 31.03.2014,the total accumulated losses of the company are Rs. 9,30,92,029/- (Rupees Nine Crore Thirty Lakh Ninety Two Thousand and Twenty Nine only) as against the paid up equity share capital of Rs. 6,g4,36,OOOf - Mere infusion of further funds in to the company will not benefit any existing share holder even if the company registers profits in the coming years since no dividend can be paid out of profits unless accumulated losses are wiped out. Under this scheme the accumulated losses are reduced to the extent of reduction of caoital.

2.1 Management The following is the structure of the management of the company. Table 1: composition of the management Smt. Anita Chitturi Shri.Narendra Chitturi Shri Bethina Hanumantha Rao Shri Nalla Bulli Venkaiah Shri Indrayya Chitturi Shri Sudhakar Devarapalli Managing Director Director 2.2 Financial summary The following table gives the financial summary of the financial position and operating performance of the company as on 3Lst march 20.1.4 andprevious two years as per audited financialstatements. Table: 2 financial summary particulars As per last Audited financial year (Amount in Rs.) l year prior 2 years to the prior to Last audited last Financial audited year financial years 2013-20L4 2012-20L3 20tL-2072 Equity paid up capital 6,94,36,0OO 6,94,36,000 6,94,36,000 Reserves and surplus 3,01,,23,6353,01,,23,6353,01,,23,635 Accumulated losses (9,30,92,029) (91,19,595)(71,92,391) Miscellaneous expenditure NIL (92,55,035) (99,29,660) /. z'

Net worth 64,67,606 8,21_,95,0058,24,37,584 Secuned loans NIL NIL Nil Unsecured loans NIL 2,20,00o 70,000 Fixed assets 5,35,074 r,76,15,9551,77,30,256 lncome from ons Total income NIL 16,87,000 68,97,969 Total expenditure 8,39,72,434 36,14,204 65,70,933 Profit before tax (8,39,72,434\ (19,27,2041 3,L7,r35 Profit after tax (8,39,72,434\ (r9,27,2o4\ 2,56,705 Cash profit (2,49,348) (1.,38,I78',) 20,45,731 EPS( n Rs) (12.0e) (0.28) 0.04 Value per share as per Bookvalues.(Net worth/no of shares) 0.93 IL.84 tl.87 2.3 Share holding pattern The company is a listed company with following share holding pattern as on March 3L20t4. Table 3: share holding pattern Particulars No.of shares of Rs 10 each % to Total a) Private Corporate Bodies 187859 2.7r b) Non Resident Indians 56344 0.81 c) Promoters 1929003 27.78 d) Residentlndividuals 4770394 68.70 TOTAL 6943500 100.00

3.1 Approach and methodology ln determining the valuation of shares of the company Net Asset Value/Net worth Method is considered for arriving at the value of equity shares of the company. Under this method of valuation, the equity shares of the company is valued based on the book value per share. The Net worth has been computed by deduction of accumulated losses from the paid up share capital plus reserves of the company. For the purpose of arriving at the value of equity under this method the audited financial statements as at March 3I,201,4 were considered. 3.2 Valuation The Net Worth of the company before and after reduction of capitalas proposed will be under. Table 4. Value as on 31-03-20L4 (value in Rs.) Paid up equity capital Accumulated losses as per p&l Account Reserves & surplus(not Created out of the profits of the com 69,43,600 (9,30,92,029) (3,05,99,629) 3,0r,23,635 3,0L,23,635 Value per share(of Rs 1O/-each) 6,94,360 The valuation is done merely for the purpose of deriving the fair value for the better understanding of shareholders wealth and this valuation does not have any impact on the reduction of the caoital.

3.3 Conclusion As the proposed scheme is intending to wipe out the accumulated losses by reduction of capital so as to present true financial picture of the company,the company being a debt free company, and also restructuring enables the company for better representing before the stakeholders and better leverage for the company' s future endeavors. Since the reduction is carried out for mere purpose of wiping the accumulated losses out, the valuation is carried out for requirements of the statute and also for the awareness of the stakeholders. FoTLNP&Co Chartered accountants FRN.0089185 l0crr se{-z=--* Purna Chandra Sekhar P Pa rtner. Membership No.214746 Place: Hyderabad. Date: 15-12-2014.