Confirm the book value of the Company as as on 31/3/2023.

Confirm the book value of the Company as 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 Income Tax

The net worth computation on a book value basis is correct. (It is assumed that the reserves balance mentioned is balance as on 1 April 2022).

Lakshita Bhandari

CA, Mumbai

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934 Consultations

Talk to Lakshita Bhandari

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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Thank you.

Naman Maloo

CA, Jaipur

4292 Answers

101 Consultations

Talk to Naman Maloo

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.