Financial statement of M/s Sun & Moon Limited as on 30th September 2025 is as follows: Liabilities Crores Assets Crores Equity share capital 200 Fixed Assets 750 8% Debentures 125 Current Assets : 14% Debentures 175

CS Executive · Capital Market and Securities Laws · PYQS · December 2025
Financial statement of M/s Sun & Moon Limited as on 30th September 2025 is as follows: Liabilities Crores Assets Crores Equity share capital 200 Fixed Assets 750 8% Debentures 125 Current Assets : 14% Debentures 175 Stock-in-trade 120 Bank term loan 275 Debtors 80 Bank secured loan 250 Cash and Bank balance 75 Total 1,025 Total 1,025 Additional information, are as follows: (a) Stock-in-trade includes raw material in transit worth ₹ 20 crores, (b) Debtors includes ₹ 15 crores receivable from Group Companies, due for more than last 3 months, (c) Cash and Bank balance includes ₹ 18 crores invested in Fixed Deposits, and (d) Being a listed entity with National Stock Exchange, its market capitalization as on this day was ₹ 325 crores. Determine the Enterprises Value as on 30th September, 2025

Answer & Explanation:

As per regulation 2(1)(h) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the enterprise value means the value calculated as market capitalization of a company plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The enterprise value can be determined as under: Enterprise value = Market capitalization + Debt + Minority Interest + Preferred Shares - Total Cash and Cash equivalents. = ₹ 325 crore + (₹ 125 crore + ₹ 175 crore + ₹ 275 crore + ₹ 250 crore) - ₹ 75 crore = ₹ 325 crore + ₹ 825 crore - ₹ 75 crore = ₹ 1,075 crore

Topics: Valuation

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