In my opinion book value of asset would also include profit for FY 2022-23.
If that if also added then this seems okay.
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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 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.
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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
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Yes just include the profits for the FY 2022-23. Rest is fine.
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