valuaLlon of Shares

MeLhods
1 neL AsseLs meLhod
2 ?leld based
a 8ased on Larnlngs caplLallzaLlon
b 8ased on ulvldend caplLallzaLlon
3 rlce Larnlngs MulLlple
4 8ook value mulLlple
3 lv approach

1 Net Assets method
neL asseL avallable Lo LqulLy Shareholders 1oLal asseLs (excl flcLlLlous asseLs) pref roposed (Lx) ulv
neL asseLs value (nAv) nAA2LSP / no of Shares
osslblllLles
1 Shares parLly pald up
2 Shares of ulfferenL face value
Shares parLly pald up
1 ConverL parLly pald lnLo fully pald
2 Add Lhe amounL recd from calls Lo nAA2LSP
3 value of parLly pald Share nAv unpald amL per share
Shares of ulff lace value
1 1reaL a parLlcular lace value as base
2 AscerLaln Lhe LqulvalenL no of Shares wlLh ref Lo base
3 llnd nAv of dlff lace value Shares by applylng equlvalenL

Larn|ngs Cap|ta||sat|on Method
1 ueLermlne lM
2 ueLermlne n88 LS/MS
3 neL Lradlng AsseLs lM/n88
4 value per Share non 1radlng asseLs + neL Lradlng asseLs
no of Shares

3 D|v|dend Cap|ta||sat|on Method
1 AscerLaln uS
2 n88 uS/MS
3 value per Share uS/n88 * 100

4 r|ce Larn|ngs Mu|t|p|e approach
1 ueLermlne LS LA2LSP/ WAnS
2 value per Share LS * L MulLlple

S r|ce Larn|ngs Mu|t|p|e approach
1 ueLermlne 8ook value mulLlple MS/8ook value per Share
2 value per Share 8vS * 8v mulLlple

6 r|ce Larn|ngs Mu|t|p|e approach
1 lalr value nAv per Share+ LS based value
2
valuaLlon of Coodwlll
1 Super proflL MeLhod
2 CaplLallzaLlon meLhod
lacLors for valulng CW
1 lM
2 CL
3 n88
olnLs Lo be consldered whlle CalculaLlon of lM
1 Cnly roflL of Lhose years wlLh normal acLlvlLy Lo be consldered (years of Abnormal acLlvlLy excl)
2 roflLs CperaLlng proflLs (nonoperaLlng lLems excl buL lf Lhey are recurrlng Lo be lncl)
3 lncome from 1rade lnvesLmenL only Lo be consldered (n1l noL Lo be consldered)
4 llucLuaLlng roflLs Slmple Avg
3 roflLs wlLh a Lrend WelghLed Avg
6 lf flxed asseL ls revalued lgnore p/l on revaluaLlon lf oLher asseLs(llab) conslder
7 8uL conslder addl depn on Lhe revaluaLlon o lA
olnLs Lo be consldered whlle calculaLlng CaplLal Lmployed
Cap|ta| Lmp|oyed 1ota| Assets (exc| I|ct|t|ous Assets non trade Assets GW) Less Cuts|de
||ab|||t|es
1 unproducLlve asseLs excl
2 AsseLs [ lv
3 Cnly urchased CW Lo be consldered
4 aLenLs/1rademarks/llcenses lv
3 1rade lnvesLmenL lv
6 nonLrade lnvesLmenL lgnore
7 SLock urs Loans Adv 8eallzable/recoverable value
8 LlablllLles aL redempLlon amLs
9 uo noL deducL ref Cap proposed dlv
10 8orrowlng relaLlng Lo pur of n1l noL Lo be deducLed
11 Workmen CompensaLlon lund ls noL CuLslder llablllLy
12 AlLernaLlves for CL
1 CCL Closlng caplLal employed _ (preferred)
2 ACL Avg caplLal employed ( opg+clg/2) ( used ln S meLhod where asL proflLs are consldered)
3 Avg CaplLal Closlng caplLal half proflLs afLer Lax
olnLs Lo be consldered whlle calculaLlng
1 8ank raLe + 8lsk remlum
2 n88 L? LS/MS *100

Super roflLs MeLhod
1 CompuLe normal roflLs (n) CL * n88
2 ueLermlne Super proflLs (S) lM n
3 CompuLe CW S * n?
CaplLallsaLlon MeLhod
1 CompuLe nCL lM/n88 *100
2 CW nCL AcLual CaplLal employed
Leverage effecL on Coodwlll
Shareholder's fund approach
1 AcLual CaplLal Lmployed LqulLy + ref+ 8/S ( or 1oLal asseLs (excl flcLlLlous) Less CuLslders
llablllLles)
2 lM L8l1 lnL 1ax le LA1
Long Lerm fund approach
1 AcLual CaplLal Lmployed CaplLal Lmployed under above meLhod+ long Lerm loans
2 lM L8l1 1ax ( lnL ls noL deducLlble)
lf Coodwlll calculaLed under SPl approach ls more Lhan L1l approach Lhen lLs' a +ve leverage effecL
oLherwlse vlceversa