Corporate Restructuing and Valuation — Summer 2022

Define Corporate Restructuring. Explain the main forms of Corporate Restructuring.

Discuss the benefit and difficulties in Cross boarder acquisitions.

what does due diligence mean? What are the common aspects examined in due diligence?

What are Divestitures? Why do companies go for divestitures?

Discuss the provisions of Mergers & Acquisitions under Indian Companies Act.

Discuss Powers of the Court in India with regards to sanctioning the scheme of amalgamation

What is Competition law in India? Discuss salient aspects of Competition Act2002

What are the tactics a company can use as a defense against threat of an acquisition?

Explain the major difference between polling of interest method and Purchase method.

Write a short note on AS

Write a short note on Equity Carve out Page 1 of

Case Study: Rajasthan Royals Ltd and Mumbai Indians ltd agreed to amalgamate their business by transferring their undertaking to a new company called “Gujarati Lions” ltd, formed for that purpose. On the date of amalgamation, balance sheets of the two companies were as under:- Liabilities Rajasthan Mumbai Assets Rajasthan Mumbai Royals ltd Indians Royals Indians (Rs.) ltd (Rs.) ltd (Rs) ltd (Rs) Equity Share 5,00,000 3,00,000 Fixed Assets 4,80,000 2,50,000 Capital (Rs. 10 each) Reserve fund 50,000 Freehold 2,00,000 1,00,000 property Profit & 30,000 20,000 Investments 50,000 20,000 Loss a/c 5% 2,00,000 1,00,000 Debtors 2,50,000 1,50,000 Debentures Mortgage 50,000 Preliminary 20,000 80,000 Loan Expenses Sundry 2,20,000 1,30,000 Creditors 10,00,000 6,00,000 10,00,000 6,00,000 Purchase Consideration consisted of:

Discharge of Debentures of both companies by issue of equivalent amount of 6% debentures in Gujarati Lions ltd.

Assumptions of Liabilities of both companies

The issue of equity shares of Rs. 10 each in new company called Gujarati Lions ltd. at a premium of Rs. 2 per share. For the purpose of amalgamation, the assets were revalued as under: Rajasthan Mumbai Royals ltd Indians ltd. Goodwill 1,00,000 75,000 Freehold Property 2,60,000 1,40,000 Investments 51,000 20.000 Fixed Assets 4,10,000 2,80,000 Debtors 2,25,000 1,35,000

Prepare the balance sheet after the amalgamation

find out purchase consideration.

OR Find the Value of Appu Ltd. on the base of comparable companies approach, which is a prospective target, from the following information: Particulars Xltd. Y Ltd Zltd. Market / Net Income 30 35 40 (P/Eration) Market / Book ratio 2.56 2.40 3.00 Market / Sales ratio 2.46 2.32 2.92 The current sales of Appu ltd are Rs. 300 lacs, book value of equity Rs. 250 lacs, and Net income is 50 lacs. Find out the value. Page 2 of