Sir in section while calculating the FMV of the unquoted securities we apply the rule UA where by we calculate the FMV of the company and then multiple with the price per share / the total What is this price per share and the total shares Please explain the final part of calculation?
FMV has to be calculated as per the formula given in Rule 11UA of IT Rules. FMV is the lower of Net Asset Value (NAV, which is the book value) or Discounted Cash Flow (DCF) value. In most practical situations, NAV is lower than the DCF value. NAV = (A+B+C+D-L) * PV/PE PV is the paid value of each share = paid up equity / total no. of shares and PE = paid up equity share capital in Balance Sheet