• Confirm the book value of the company as on 31/3/2023

Dear Sir/Madam,

Kindly confirm the book value of the 2 pvt ltd companies as on 31/3/2023.
Assume Profit After Tax for FY 2022-23 is same as FY 2021-22

Balance Sheet Data as on 31/3/2022 is as below

1)Company 1
Share Capital : 1.85 crores
Reserves : 2.14 crores
Profit After Tax for FY 2021-22 was 66 lakhs

Book Value as on 31/3/2023. = 1.85+2.14+ 0.66 =4.65 crores 

2)Company 2
Share Capital : 10 lakh
Reserves : 66.77 lakhs
Profit After Tax for FY 2021-22 was 30.1 lakhs

Book Value as on 31/3/2023. = 10+66.77+ 30.1 =106.7 Lakh
Asked 1 year ago in Corporate Tax

In my opinion book value of asset would also include profit for FY 2022-23.

 

If that if also added then this seems okay.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4271 Answers
97 Consultations

5.0 on 5.0

In my view, the book value of an asset should include the profit earned for the fiscal year 2022-23. If this is taken into account, the calculation appears reasonable.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal
CA, Delhi
209 Answers
4 Consultations

5.0 on 5.0

Your understanding is correct subject to below assumptions

1. Share capital should be paid up capital

2. Reserves are excluding profits for 2022-23

 

Value of one share = Net worth * paid up value of one share/ total amount of paid up equity share capital as shown in balance sheet

 

For detailed discussion, you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4838 Answers
1037 Consultations

5.0 on 5.0

Yes just include the profits for the FY 2022-23. Rest is fine. 

Prerna Peshori
CA, Pune
194 Answers
11 Consultations

5.0 on 5.0

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