APPENDIX 225

GUID'ELINES FOR VALUAT.IO.N or EQUlTY 8HARES OF'COMPANIES A~D THE BUSINlESSAND NE'T ASSETS 'OIF' BRANCHES

F'A.RTI

1. ~~ arc opt.'IaDUggukidJMS fol!' v:aiuati!:m of eqwty shares- ofoompao.:ie.s. 8,rimly. (bey wiD be

~4~1i! ~n a!l"l'a:iWlrurn gpld~1b'Ia. .

2. These ,art purely ,adifilrllisilr.ab",·e illl~tion!l :fol: iIntemal ofrx:ial use and are, tlmref~J\e. :not [10, be q,!!otGd,. cited Q.!" pwbJi*d: 3:>'. ~e, official gu~!iilii(lB: of '!he: ~1mTIem:.

3. 'riley will bf.i, d1k·C'live in;.m the date'" of the:iri~lOli!e 811ill wiU be appJieab1e to all pendmg: wlIl,'future ~,~fig ib"oolIl!hle.n'@"m·[fflio: D0~._e,."ii el~~ MillIn. M~!I:~ Qft'~'riMc.fi!~ .

--4';=SjWctaI~m~~r~ 1lI,i!llbiLall~li:caJHQ '~il.'ili1Il'!i- -

(~ eqil~~y·--millii"&ofJ:iOmplimiC!!u.»ivate~plIDJlciimj_t;lldl;

(b) hu;i;i;m b~slneNWs.-ehi,OIf the ,sWiil:!g- tea. '~:wies; 3])d

(c) liidian blliSmes1l'iiiet ii$$letiS of lhebnmtb.~s Qf forei;gn oompwe$,

PARTU

~jtldpltS and l'I1c:lhcdO'/WlilUlticm

5. The objective (If Iibe v.ilIllati.ol!proocss is ~o ~e a, bc.sl f,eas.onab1le juliigmc:nt of lhe valllC ,of 1m eqL1lity .sh,",?~ ~ company QJi"of_lhe~ mtsin.eSi;~lld~. ~se;iS.o,~ aJ.broocll. .m casesari~Dgf'OjJ villu,aDJioo l!!!deE Ule F0Ml.8Jilt E:(clhangoe ae;gWliLfu;'I:EI ~t, 191.3, alld !:be CapJJI)d 1ss1l~1I {Control} Act. 1947. '!be be)t reasonable 1 - '.l oflhe: vaLue, will! be reftn,tu!Il to $~be frur VWlIe, (W)I ami it wilUbe arrived at 0liI Ole

Il!~ mike tlie Dl;l:J)llet de-$.Cifjl:!oo mlihe SUbseqtii,Cilt pa!"3gr.t

0) Net: asset v<due (NAV)'i

(2) p,O'Jit"cillliIDg 'rnpooit, vll1110 (fE'CV);. _

(3) Mw'k.el Viillie (MV) ~DlIlc Ic::mili of 11~$ba1ies.

6,] Nt!1 o.mll 'I1!\!l~ (filA t').-The lnet asosct vUlte, .<I;S at '!he latert ilooited ·bOlJa1ilt~~iib.GClii. date. . will be: ~do!:l13lsd m.!Iil'tin,g &um lite .~ :ass:e~ of the OQWP<!!1l;Y ,~jJ of flIe bi'anJ.1l am.t11 de(hl~p!ll: !Jl~e!.from. Wil &ibIS, d1l!:5, bMOW.~ .;mdllaJjl]ities"ililClll{ling ,c:~t and ]ikely oCllltillgenl ]iabili!~ 80il! pH~f'0re.ru::e 'capital',lif aoy. " ill olher w.O:i'. d.S.,tt ~~~.4~. "ieseli~ die 'UW ·~e:t~" 01.,_ ~ b.'!:!.I. ~i~. s ~ilter 1?!'ll''o'ltid:i.og for all I;IQ~'de ~e:1It ~ pomullLilIill ]J!ll:IILiUfS. lEI ilbe case ot ~rEs, ~e Ile[ ~et vahle as ·calOllJat.ed!

oo'!libe' as~s sidle o.flhe b@la;.nce--S:Ilecl i~ ~ above~amme~ ~wi!r~e eeess dwck,ed. wi~C!,~t~y ;share

~PJ!!allil~~S!~ 1!se~~....ca,n~l§)c~!l~ I':be lit~X :S"£!~~~~.~I:~.~~!Ue:s~. -.<

6,2. II:! ~illc\lWa.tio:g [he n~ !!!SSClit va]lie,lhefo.n'owin;g point!! matJ ,mic.wa:dy beJrep:l. HI 'view:

(1.) Wfi! .oew 00liI.J!i issue or a ~ issee of ~ui.1:y cap4~ is p:r!tpo!iOO,. it slIlalil. be ~lj jiMo a-oCQIWt.. The: ft'Cemlue of dle ~res.l'lis:sue~f equity e~itd .,..Wll be ~d~d.,~ ~ ;~~i~cl'!lg "n.et WQI!b" ,as atth.e 10lit.est bal.aoce"5heet dWie .mld. toe rtSlllllwg. 'xt WOIifu" w!ll be ,diVlJiled by Iihe enlarged e<Jlllix.)! c:tp.iiL31 b@..w" ii!lclu(!~ng We be~lll .. i:s:oJUG as: WclJlIiS the n~boQ'S issee.

(j,O ~i1i!tangible ~&s:etslitG goodwiR pa'~enlS,.irade m<Irits.oopyJj~Jts. ete., WiUDet IDe ~~eJj . .into,

acooWl/t iifiC·alclllb.t~ng me assets, .

(j'iiUl.evali1!liWma offilted asseC'S, illf'IiLfIIY, ",..m oro~emny D@. be~heiii ililw!l,QC!Oull!t. But ill' t:l'i6 rc'l!'~loatiDl;! 'hadlaken pi];;we loog: ago, Siii)' nearly 15 yt8!iSl iI8!l, it may I1Qtoo m!lSO'lIO'!ble 1:0 d.e~t it from !he. lota1Sl!1S~I1il.

0''1') AnY' reserve which bas ll.ot ~Ii Cn'latccl, out 'of genuine IlJIofits, erout ,of cash win 110t be bakeD iElw ~OIl1Ilt., ,fl'.g.. amal,glmlilltion ~Pi'e er -~efV'e -CFe;HOOby d!lWl,giD,g tl'iGllielhod of

ileprecia!io.lI or re.serv,e,~ by r..ev.al.mallim of (DiOO wt'lS" ·t:Ie. --

(v) Provisicm for ;grfl:tll~~Y based on aei.ooriilll 'i'ahil.'3lJilin.l:mtootfiar ~.es, as wei]] asproviso.oo fm' :lUIy \lIdle.!' temti!],'l1l~ts .(Ill;!:; '1:0 tbee:lll,pJ.qy~ wi!J. 00 ~''Q'II'idoo fur imdde41llc_iled ~

liJdidll~I:Jj~, -

(wJ . Umilities 1i1:e, arrears ,of !ll1ef~en'Ce dihiidend. liii!'IC~aim.ed, d!ivii:leud:i, diyi,'lie:llds Dot provided f'Ol . !>ep:u-ately_ but. prop~ tOo be paid out <Of reserves .• mjs(:eU~l!Is C ',diilm'e to th.e exJ;emoo£ wdlten. off. debit bal:ilOOe (I'll 'profit, and ~()S;S at.00I!lilt, arrear:s o.f __ . aooo. elC., 'win be PlOll'ided. for and. dooltc~d! f:r{i[filhc ~taj ,M!~l}tIl, Stl :a]S\lI. ~1fl!I~p.rQl;'~si.o.tl .... [11 00 m~e filL bad :and dMiol1w, debts.

(vi'i) Ill, rhecase ()f oonti!Q!g:emt: 1i.il:bil~bl~:s" :1iI jll~lIt mlilsl be m.ade of r~ na:biYitic$, tl]~_:are HkeJy !111 impair Urm met woolh of liberomp2I1!I)' aI1d il!. ih~d, lllepW\!'.I~d not on !:be li<liv.ml:l.CS s.ide;_ fu ,ordec to' do; ~dte cJ;aril'i.ciilfoos nccellsary ma!)l' be obtained. '.-om the roIili:pllnyau.d !hoir aliwron.-

(yiiQ . Iii. lh~ imlltler ofpoovw()'!l for ,~~reci"'!ii)n, am folln,win,g aw.RIi3.~h. will ~ ad'opkd:

(a)o :~f:tlae,ro.mp!mY hatS: cQ.I;I,ustmrlY beelll :IbUl:iwiq tIl.e: Sltrnigii'll I~De melbtld of dqlret:ia~oll,. the Ikfl~aiiiaD as p.oov.idt.:d for i,1l 'k acc·QU!i~, nJr>lY 'bi ~tedllli.callic11i.18tmlli1\8 tmnm 8:'lS<et '>!alue M.d jt 1-5 Wlt necessary t{l, reCion d!e(ll'~ffilioll. aooorililm!.g .~ IDe WlitoeIldOWI1i v!l!lue meliOOd 'il$ d~d. by tie· ,eompany for illcQJ\le-ti..1t ~l!II'll'o'Se$.

(b) If,. however, wirfblD iIhe prcocdmg; fi'l,l',e yeaJs,lh~ oo!iip3!li.y .lias swi'tdrul over fr·om .!lie; wli.uen ,down. . vame .ms'mod to dis ~ttai;gb.l IJlle- me'!!h"QiI(, ~lIelil the jpFOvhiulI for

de:predatiool w.ill be rect,o~ ~oodi. e wnUCli. d!o,wlmi value melibod as if ~e

o.owp~ basnot ~c 'nfuc swiftil oilier. :pc' ~.e_ QOI1'l;P:i'ltrIY :iboumd bil. 8!i~e-~

to timfiim fb.e 'Decess:~ ~nt'mmatiQ.ll".~(i'Ilfciaill.y iMc.iiati.O'n, cb~ood for ,iDl:;:Qm~.IM Pll.!fl'O~S. Wb.ere, ~,we.ver, iU!O~Ila1ilYroUo-wS: dg,htfum:i,lihe begi - tD~ stEadigh~!We metbod, for Oe.p:ro;::iatioJl of new faef ~e-Gs. rurlholllgh it milt'll. be.illlg ~ Wf.ittm doW!ll il'iiloo m.cm.od ,o:r'vaIUiBtio:nrOl"!!he older :asse'l!~.UtIi ~'i!C~atioD. as. p:l'ovided for in ~llIe accoWtI1lSof tbe compmy wiU IIIIC iKi~d ~11I fOe !!he 'ol~ aad I!.~WasS~:'l ~au$.e 'Q)~ ~~~~t'be te,S;lfdcd as ~.' SWI. _itch ove.r ~ 'the· !!l1e1i1IDdof ~(leill'eei:a.l:lOfi. 'Ib.eo. a._·.~~rioo (or d,'(:tlermljjJliLtg. whe:drer '!here bas been . a gw,Ml::h ,9l!l!f er tlO'l:I:!i iiM, whe~etr Uirn;G lilias ooelil a change. i'li themeliwd tJf depr~datlo.n. m respet:t ~,f!!he .wme: r~m, :ii.:iisetsWii!lil1UIiJj ibe pJ1e¢edi1l!z "'iii yeats.

(c) III'!he c~ ,oiv,a]uatt().l!l of braoebe!i" tl:teprovisUJoFor dGprecia:lion win ~ways be R>f:!k<lned aocon;tip:g w !he w.dlt'OOCOW.il v.M:iiiC .method, If 1lhe ~~~ .iY'C based ,QD ~he SI!r:.aiiglit 1hlC .me:uaod. then the oom;paDiy IiDust ·btl 3~kcd 'In fl.m!1i£'h tlJe dsprecJkruim pi'O",mon ,~oocdj~g.kI Ilbe W!l'~tte:m dawn ",ruIDii' m.~.

(,,"3 n.e ,~al'\:~~~.QIlQfihe Ti:erassct Va1,11G w~U be- ru-.o.rded, wi!b IJhe :!!~essa'lJl' dsmi]s,. ~II, 'O!.e pr.o j(}r1tW s·l!.Qwn i.o.Mni?XUJ!'e l.

1.1 p·'n)flt~ea·m~'ngc,Ql'fj'cily Mlw (P:ECV),__;The '.I'Ofi:[~ilIl(g capacity viiilue wiiIJ be cakubiOO by

c8pill!!1j;s:jng tile !!iV~e gf th~ aftee-tax. profit<! :atlhe ;[QUow,iog rates:

,( i) l:5% .in. '!he case 'elf mm'Uf<!C't'llU:'~Dg com:p3.lniies:.

(Ii) 20% ill ihe ease ofb:'ndliliig ~lI!lljes. '

(it!). li7~<%, jll!'!!he case of "imN~aje: cOOlilpa~".lihat l'5 to say; cwnp;mi.c:l.w~ose tw'OO;ver {i"OOl

l1!'~iDg;u;:ttivity ]:;;. r:nOll'e ~ll'lli. 40%, but. ksll, Iha:n: 6~ of dim; tal:3ltwnovu.. ..'

1.2 ~[e oldirnanI~. mi; C!Lpa,~a1~~i~D ~~Of;a rnmlUr3ct~riD' C!)iiil~Y. W'jih1.be lS% Ih~re~a)' ~ ex(;epu.onal cases wbere the ,ea_pnaJllSaUoo f3lt$MaY Ilavc.ki ~e lLbewlseQ. III . order to ell~'\D,e fii.1!!' :md

e~iJtable v.ar.luaooQ. Sweh cases, wntte ·ru.~til1)ltl may !DeOOI.O be ,ex,!I;f(:ised" are iLlustmled 'below:: .

r(i) Vii'here,. :in the di.ss 'tj\fili ]~sted !ihare •. the· !!ver.<lg:e of W'l n~~ a.S:!>et \,·.~l:Ie and .~ proflll;eanJ!icg C-3pac4lyval!oe bam! '~J1 t5% capi.tIJlsaliolit rate is less 1h0lln !be :ll.i'II'er.ma!'~t prioe by ~ ~~bsta~li,al mar-gin. ,&"3;)' by 00Ya' .20%. [n. S\!:Ch.C~l .1Jie; <:mne:.m.1 w~~l,i;S.ual~y. ha~~ ~c foUowing CIlru1iC'liel'lSUC'S. vi~.a ti'act J'{l:OQm of Jugb. and OOtmSI:en.t.d!iV1rd.eIi~ paymell~ ~ oonll:!;; ii~~~ e.sulb~~shed pmition as mark,et, Leader in its ti.el!J, <). ~QOd .reputatloll. ro:r!he ,qu;illty and ink.:gr.ity (II iil$ mans'gcme:tl't. eee, aruJ!hes:e wOl!lld be tt.fLcclied Inllhe mflrk:et pric~ of mB ~i'H:t.

(Ii(l Where:a. oompany h,-,u a high [p'J!'~!Fhab.iHl)' 13Ite :II;!j: ~,~Ied. by dl,e. pe'.l'c-el1l!t~¢ O'r rtbe :~d}er tfu'

profits'w; the ,equ.i!ty ,c:apii:llI: ~fme G:lompnllY, .' '

om Where.a C!lJ.I:np.any bas d!iyeP.lmC~ itll ootivilu.es lind is !I IIII)1!til-illiiit compag;y. a!l:l\resl!!l~?i whicil it would be itn a positiol'l to SU-Sitonn ~.ts overaU ~rofilS e\"(:1'1 :if any (IPS pall (If l!ll

o;!)eC3l'irn:!!S runs into' (lim clllltres. . . "

I~ such, Ca!S~Ii~ !he capit~i~atlon ra~ of ]5% cou'd~, Uberaili:sed $uJtab.ly ~p I<J ~ ~,ni1!i!r:Ir.t,!1 '0.1 n~I:~ i'I. v:ttiW !~.o arrJ'vLtl!g, a'~ {i .farif Wl'!:d eqmtable ·vah,JIaUolIl. N~dl!ess, to elnpbaslse, Wilis '~,IIlCiretlOn sil(D1II e~is&<dl with. griat CaFe and rCMlhOn Mle:r talkin.1!! imlito ac<lO'1,li~l all reiJ.e.vant f~l:cirus,.

1,3 fie ~ of eiltil'JliU:iiili.8: ~ prof'ilt-eMWIg ,c;~ly y,aJu-e HC$: ~g 'Idle ~S'eSS.me<Q:l ·of dI:e /Ui,IJl: "t.lfmt4inab.i~ 'eatW~s of Ime \lu',SliDcss •. Wii1Iile: IU!eJMIS,'ureW .~n profits and. ;l.wfitabil!ity wou[d x:-r.te ... 0; , guide. it siloul{lilot bel)verookedd-lilt ~ vMltlati~is: for tbe.lli,"r'e' add ~u: it is, Ole fuf~r.e ltt1Iaiiqt:ai'ma'~ smam 011 mmi.ogs dilat.!:s o.f'g.;eater s.ignrJfiCi'llilCe i~ '!he~oceSIl of vatiUal1on. AU Ullevaat f3~!m$ '~. ha'l'l II bearing ~l!i! Imliie r!J'!mleIDai:t1taiiIliable eam.i:og-s of I!b~ bl!!SJl'liC-sS m~t. 'Utewfoo::. be given dne (ioosJd'.e.ra:l:ioo,

1.4 l1n.~ P!'lOv:islon WI' IIa:c:a1iou;. tile mea.OO,m oomplitatioa of the aYeIf. poofiits. ;md. IJItiG IEreatlliK!,lll0 tIi.e .. pt'o~J~h.'i]i,tyoft:b.e. ft~~. isstIeof~capibl, i~;an,~~ a!\e. of ,~~lar i~."~' " .. iili!! the (;;~.cuIlat:iQtl of lim futW'C :maJIntalna:lIe earn~D,8:S. Theslli:me deaJ:'!.wijh ~Illh IoU~w~ll,g PAgmp~ .

']',S ~i!',i$roll_ lor' raxutWn......,f,or .:mputation ,of 'p.rofil'S at'terUl:ll;, lPl0vlsioD, for taxarooli will b

assuml!rl~1'!!1tc.fo]k!'wiDg bMis:' . ..

(a) WI'del,. Ju:,ld public limited crmtp(mia : :Provis.iOI!. for waUon win be: as~ ,at tile (;umQ.

Stat8tOIy rate Il~' Ithe' IJ)¢Qme·~ Act. If, IilQweva, ''the OOti!l;'i) tax. Hiibiji~" as: ~ ill! tbj iiinl.iw.d a«oo.!I,if5 of (he. compaq.y ;is: fIilO{lC dum 'Ibe CIm',MlIt stat!lltooy ra:te., ~!!; tbe OlClI!ldi'l wi! be iI.ssumOO m,1iJjbc>t to a ~m-um &laWWry limit of j~~~p']Ul'i: SlU11U: 011. oompai~ iI!I1I.d~~c 1l~e-'13X Act, 'I"he exprus.ion·~id .~ 1mblli:fY" will mcm 11m 8ivmg.e .~ '!be

tax )i;ab.llllty (m ~ !ll)' If:m Ihe: pJCOa:ll.ng Weill years or '!he acWiaW'laX Babmty :In the

Jaws. ~c.cffijl!ifulgycm, . r is iIiIi~r., _

(b) 1'e-acmnptllfle.J': PmVi:s.iOD fer tMaoon wil~ 00 :assumed, at 70-% hi. cot!!dd'eJ!li~n of i:lbefitCl ilba!

Qu,40% .of ~i!; poofib, fuc,yba~ to :P'3¥, CeQwall jli1~ome,tax~ W'ib:ilG 011 .!te remaining ,6(1% OJ the profiu •. they bavie ;10 pa,y InIle SUliliagriclilllural io.came-tax" awl! ~. 10 :ad!litiOOl,iheytn'U ha,v'e to.pay swtax :a1!go. -

(1:') Bil'Wlc1ic,": :!fi.iJt Ihr_anelle:s: oonvmJllg ll1I~lve:s iuto public '~ pR'V,ate ]jjm]1:Gd. t0m,~ ,l'Q-viSOO.t!LfOf'ta,x8tWI! wiiIl be ~ed!l.t 10% alitboogh ,u Ilr.mehcs,. dley may 'be: prtyigg tax a1 Ole, rete ·ofJ3.So%..

(d) _ P:l'iwrI(,~ /Jmi'lfd co'l'l1Pml';e.r ,Md d()$ezy' heI;Jp.r;Wic:c(l'#iPJlRi'u:' :' 1m the case o.f iPriivatt liQ(ljited

,oom,panii.~ wbiCllI]:I s·e .t(lliOfi!tln~ as pDv,ak! limited rompam.~ pro"liiSio.l'l for ~oo. wi.U

be meac~lI:l1i1.~, n . own in. IIhG ~lIIDl'$of die . :Sll~jc:ct. ~ Oli mimmlUl!l (fiif •

~ stal!l1ltoIy rafe:. , ... ICVef, (be Ilnvatc limiJtod 'i»ID,. . being c~ ... med ~lC! ,I , 'lJbJ~

lh'ruitedl 'O~PiU1f, '~ ~~D be reslfiCk_d 'toa~rm:; ~f 1p"l>. This~tli~_!I;"1 .

~~_~-:_J~~tf$.;;~ ti.l4-CU~~~~;§~~~ ,.... lffi:~_

~4i.\i"ru~~.--- . . "'i!:, Iit:~,.~ ..... ~A., ........ ""'.,,;~

.ii"'i:",JI P"&!.r.lll;~· ~ ... ~~Ita'I-!IFI

rrel QiiIt'.m:.g~ pr~~Meptu,g k--vi~~ .'~ ,t~~tiv~ ~~ ~." "1) at." a .tlae a~ f~ji'l~? ~-"l\3J:e~ ,cd" It ~ :l!lUtl!'~ m_mmi"",-n~,!e~~ of the bU£lDe$$, 1he fOIlUc"";ng :qvroacb: will be ad~opood 111; CCl.llp:utilJg '1he a

'{mgt :profit$.; . (~)I IDt sho'ltld! bro~y be ,d! iec,ted dtlat th~ pFOfits ,m@~ .~Il mha:ruxl!itc-di ~nls (p:f tM 'oo:mplmy .~ "1nW" iProfits andlbat thele I

:.a~t:~~r:n:=~:~!~~~j=ll:r ~i~~m:~='O:~=uU:'V:~J:;b

aokofprovisi{rJls, =. . . ..... ' . .... . . . " . _ .1(2) Ordiiil.'llf!ily;! 'iIlic a!i\~3Ji a;tg: ,of pront,s wm bi; ,dOne fbf' diG larel!l '''me years I'm wilucb _Wi <lCOOOIil!:ll are ,3;v,;ti.lablc. Uillit m

~a . . ,,-whCl'oC me' c;apitaJ b~ of Ik Qa~iIfi:y audlor 'Ihe rresh :iSS11l~ lsaf,1 mabie ,oOOii:!!

.« ~{l: the made variation. or where '1iM rrnemh1fi'1·ii(M)!lv~ Is !iu~anria.i or wbere tI,l.e iud

:w1ry ~cm!ldis Sll~t ~ cycl~ tteDds •. ~.,.t.·. "'tea i!l'illllSIry"'. ilwouM hoadv'i;sah:le 1:0'. :iiitQOOOOil iDt '!he: ,roflts; of llia llatest,Jin,og y;e~i jill mdu' to mriye Il'l :a f::ir' an~ ~stic ,~~timam of the fIltwe maimiail!! able ewnmp. . . . . (3) it Ilheycar to year vari:a.t

i~.in~· Jmi._~IS: of !!be !!Ul ... t w-e~ ltcacs ,c;;m.,,_,b;c;.~ 'OOIIsider~lO be.nmmail. ~,.a t1illm~b. 'mi! . .l e _rOO' .d«eimi__Wng ... W!l1 \teb. ,oouill roclml~ the 3noUid VaIllili(!D. doeS,D,O,t exceed aoo.ut 2~ ,;md 'me, mtmm<um dGe$ !lOt vary bll" I'm

l!I!Ite,M :5'0% :from. lb.!;: mirrimllm) the- a.~c: maybe ca1~Ia:teiE 'Qll!! 1hc b3iS~!I of a ,sim_ple .~mcticaJ a:vcJagfi. But ~f ~e 'poofii:s: IUC risimg ()O:Dti~le.g,tl.y rro~ year Co yeat ilt ~ ,~liy ratio ,_ 'lhcr.e: :i1Iie CC3l5( )iiii: tobc:.m~e dtl~. l!Iie ri:siin,g 'oo!l.d wHl 00 :1I'Wn1aiffiled!. the av-eragc mil.' 00 .;.a1ouil:al:ed on :&, wtig1ued, basi's

.' aw.ejgb.ta;ge' Qf' 3 fur dis ~~est y>tar •. :2 fer tU· middle year aM! E .fu;' !he fiUtl1ssl reali. hI! such. ,cas~

; . !be ~I!lell.i to look mlD :!fie: acemmb .of the· Pf4Ced~ two Y.!iII'~!!l1.oo to ,!;heck: mat 'ibe r.iisiiD,g1n

!tl.lJl io. pmfLtj liis stable" Cmlvmely. :if'~, .PfQfib 3fe declhlWig ,cmui~lY Jl;0'.m y~ to ,'iW:. i~ w~Jd' I )c advisable to as~ the pooohts mOllly tB!e 1I'1i:1::.5it y;ear l:wc~awJe, ,iIIii]I' aveTil_s;o·-sbnple 'ot ~:i,ght_eiI-willi $ive ~hiS~eJ ilg~ ~ d.e l)f~~: (If .Ui.e.blle$t.)\m~ im~. it; w~1l :oot be,!:~wml t{J~~ca :hlghcr ~ pl'Ofi~ .. lID a :SUil!la1i1Ol1 of ,oonSiSfJeDlilll" dC'tl~lU!lg pFQ"fiil$. ~, 31:si;l" It. ~d be advliS3bk 11.0 1001:. mto the ·1iiC~ l.~I'S, m"ibc ]a.s~ five yean to ~ ilj,'udgoomt on thelro:Od :ill pKlfi!S. • If abuJil(1;ss ball s$truMd]~ ~s In.''U the ~yeW'.!l oteven in libe JaleSl: t,'Iii'(l' rem, !!be profit-eruDtiig, c;apaci'l,)'vaillle willi, :tUl~!O 'be: .• ~ded lIS ''m~''> kc:m~ it. wouM lOot Ur~ be: re~isti~ to ,aBsumellbat the ilYuSil1l.tll11 would earn profits iii.' !be D.C:1lI' M1W.. Bu,t if illlI.i:! ·h~in;es'il:.has s,'UStaloooa ]oos ill o.1l1y !I)J!R: of ilie ~ years (~c .Iirte-st year,coull d, alS(!; be Illie·Qdd ytat 1;)_f kiss) IIIDdl the.lie iIl'e .rel!1.Soos· to IJeIi~tb~t tb.G !];)!i.S ill tl'Jiatytar was ,a: f'feak: loss ~ d doos ilQt :represent .w. inJe e:armng PO~D.tili1 (If Q1e ·Dliis.ipesi'l. ~t~dbe D,pen to e:!lcl~tlle; freak .ye4!!r

iiiddJ woik om a.ll! ;avcrage 'based ·on ~e wmliu:g FCsllllits of Iheremmwiig four of'lfu: ]alest HV6 :~;US. [1':, :h.Qwever. imat ilve.rage 1lIfnS '001 to k moM lilim the profits m: .alc la~'n

year. th.ell it, wtQ1d !be advisabl'e ttl ,asmme. 38 a mCilSDI'C ,of ajbuiool!~tcantio1f!!!. dill' profi~:M IDe lares :year. ,

It Wll1 00 evideDt frrom tliie ,ilb!;n,r,e '(h,st I~ the as:sessmimi£ of ~ hll.UIie ,mabnaiMble eMtiln,ss. tfui ~,i:se,or disCfetioo an judgmeru,camiJW.1t a1k1ge'me!" be :ilVQide4im~t>1lH'Ws: and cirtumstances: milS, !be ;iVeD due eOiiJ~d.mli:lo~ beIOUi;iJ, vi~ is ~e:n,

1.7 Trewm:t!'1It of the projllnbiJify ,t?i .fresh: ifJf.fe ,oJ.ccpwt-rn W;;ld~~g upon the profitab.lil:ily of 'ib( add~tiollalll ca,pitm bmiJg. raisro, '!he f'o]Il)Wing .facWIS, ,m1iISl be loolql lo,w, :

(a) The ~~ for whicl1 _ ilbe capit3rn is be:ingraised: wh.elberii i~ 'k! flinaroce a defil!li!:e new ili.J ex,paosiOOI pmj~, for wlliell! (he c~ ooJtI~: a lener ,of :Iutent or 3D: ilnd~i:I'iallictllc:e~

(b) '\Vhcl'l1e.r!!he ,el!Jl'msronor '!heoiZw If:l-m~ct iis "I)~ Ilbe groun1'l" and liiIlgillIe ])).rogress !lias, bw~

ma4'!: m ,imp,lem.entiing the project - -

(c) 'I'M: WreeMt ,of mtW',!!,; prqfits lliidl ~fll:iibility ,of tbe project. _

,~S WIlc.re &.c &es'h j&suew cap:ital ls 'ioo llEiill,)W'pOOiIJ of fiil.ao~~g: and cxpao5.ioo or D.c.w :.;rojeet ;m(j tli.eIG are reasees to kolliev;e tlJaJt,Jfie, :p~jeeuW\lOOli!llMlaimail!L me ,miU:iLbjl!ity ,of dte busm~ Jt t'OI;1!ld be as~~ I!hat.~he mb ca;pjtill WQ1Illd ooRtwihutero lihep,roiits, ~ W. a ,matim'l'fm iIiIfSO%, of the ,existing rate ,of profitaJJUity; ill. ,oilhe!' wonb die ma:rin:mm w.iU be, '~Illated as l~lId~;

',Fresh cap'Ji~, " ,,', .

l4: 'X. , ., .. _ _ • - )( EXl.:SiUJlg pmfiu>mlef laX, lli:!lSJ1i!l!J,J DOC WOI1h

This wi~ De lidded 1:0 awe exiStiii,gP!'fGMls, :~M !:ax. aad the toi.a1wiU be divi~dl by die ooh'll'lloo capital bMe W ~iYG at I!hc fu~ure m.8mminabJs liiammgspet sb~.

Bud, wl:l.«e ~ freSh CIl!,l:I,Ita!: ,is; sm.:I.gbt tQ be raised nnt fN' f.i!lancmg: a. concrete IIDW or ;r;xpanSJOD pmjoot" blilt fm:geolM-aI: reaso.n, s: li,ke, mod, emi~,lil:ol!l,', ;:Ind, ~P,' ID,!Kemc, ',!itt, of ~!!l~ dlihiltlom of fOre, . ' "%In equi~y "cr fo:r!h.e ~, 1i.stEd Ii)!l: '!he stockll::XCrumge. it wQl(td 'oot be ad,!'!WsabJe to ~§:l)Jme; '!hat tl'!elJ'"s]l corm-route '10 '!he profLl1abiUly 'Df l!bc bus.ime:is jll! 3J!.Iy' _ibl!c manu .. hi! dIe· Dcar tu.tJ:ir;e,,, In ,Sll~ c:~cs, wbile ., f~hisme of capital: wD~ 'be iliabo. i!i!1Q accolmt, :00 ~jtiolial profit!! win 'be ,.umed.

1 ~9 The ca,lcl1l3lion af pro!it.caming capacii.y vcailne will be'tec,ordeld with dlcilooe5Smy delails io !r.hc pR:I' fQ.l'm!a Shown. ln Anll~re .11.

g,!. ,MQ~t ~l~.--lli qlle;stJa of mfiGt w11l~ :!IGting il.'l it ;BUijd~lftn.e faelm" ;f11'1 vsuailioI!! will ,obv.iolllslyafisl:l o:nl!y in ditose ciiI$¢!! wb.C1te 1h<:snamli bemg ~aJw::d am ijsled on. me :!lroet ,~~hiUklj!;. In

!01dI ~S. ·Ihe nm~l ystlle w~1! be t.mn C{),~!:!moe af iIi!lb.e rtOUowi]!!'g m::w._.J1,;' -

0) 'IDle a-vernge marbt price, wiil] be ·~le.rmined' taking' ~ni:Q ~oowu. ·IM ~k market q, ~~"!Il,'Q, liS :m the. preccc:i.nS three years (aftece I'IltlkiI!J;g app.rop:riate idljl!stmcIlts: far bmms is!llI.CS, !ru.1 d1Vf~en~ pil'ymellt) iiSund,er =

(ii) Ole high;and ]Gwof rue PreQeding two }i'eat!i;. iiIid

(b} ~ mgb 3l:I~ row ;of each IDOIIth mb~di:1I8 ~.2Il'Umtliil.

(2) 'Re illlIiCf3,ge mai1ret price w.i.I ~e ~ m ~.bocqrollild as a rekwant faclol' wlli1e sedlill,8 me, ih-iJ vaJu:e (FV) wiless lheIYe a!'ieil'eOilSOnll to, belfu1i'eih!Jl '!:he .mat.ket prlOO i;!~ '\Iitia.tedl boY~JaQ .. ;e transactions Of~ Im.Dilnd!ativc praetKcs.

0) Tb.e' rea.sOMbilene~~ of the f<liii' vill~ will be ,~ 'a.g:ai1liS1J; Ih a~G: mal'ket priceootbe fQU:o'l!i'~~in.es: {a,.

if tbeaJvm,g~ of Iha' ufl!talset vable and.!h,e, p.otU"eaming c~.aclly vme ~. 15% c\i~'tWi:sa[o:i fate .Is,les$ !ibaa '~,ea:vtill1lige Ifiu1rot pli'ice b.¥ ~l :.ro~, rudy. the!! !he avcmge wliU. be regardEd :!he (alit' vahle.

(b) iif~ hQ'W'!'I,¢!'. ·Ihe aVerage of fu;e netiillSse! mu.e ~ 1M prQt1;t-eariliio.g cfitla¢lt,)' val!1.¢ ,is liess than dll'l a'l'elaIgC martet ptice by ,ill s~tlml!ial_mlirgiQ. say ~y O'l'e,[ 20'%,. tk,o,~ profit ' cap~ib' value may be rewQC};Cd by Hbenlli:s:ing SUl.iWlly tile ,eapitai-satlQllD.

:mle ore full(!wing m~OO!'., ' _

:if the average" market ~cci.'S Q)fe iMu .20% to .s0% of ,tlW fai. v.ilillue, 'dlc e"Witaliisatioomt~ wJ.II Wi 9%.1f 1m av'Cr.age l!D;u;bt pri\ie :is .rome lilian 50% to 75% o:f b fafF' vwue, tile oClilpMIi;saoofi. rare~ ~ 10%. H'1he a .... erage marbt prioo, :its lnI»e!than 75% and .wove of !he, mit'o'!liIuc-, tDfl,capit~isaticm ratcwUl, '~.:s%.

g,,:2lhc d~IaiJ\s of !he. OOI:I'.tet lMice rued the ea]OUIIiOOIil of 1ke. :a\l"m'ag~ mwi>el :priioo lViiJm be ~.r.00£0 '!he: piiil' fu..-ma s.boWl!l! ill, Anl'!e:wrg 11'1:

'9.1. Fall' lIm:lle' (F'V).~As, i1,Il.diicat:ed in ]lal",ilI .5 i'lb~. tlIl'l fj~w vallll:Jiw:m. based 00 be.st fOO~ judgmeli~, win be called th~ fair value (PV),

!l..2. In '!be ease of compimil;S., !he average 'of the net :iiiiset, v,a1UG amlihe profit. ,eam:ing C3pac~ly v;a1w;l OOse,' .. 'ii, ~II th~, ,.,:,5% Ga,jl;d~ati0l!' r.a!t- ,,!ill ~, .me ~, poinl for de~mirung the ,fair value. The followifi$ p.l'Inclpl!e$wiU be kept m 'l!''IleW l:Dati:'j"'~8: i1t i!i~ fmr vaJ.!!JC :

,(1) ]DJ I,b,e, case ~~ a listGd sha:JJti"iflhe IIve!~ of' ~e net i.Uset ~ ,ad !ileprofit-eill:I'JlliiiliS cilp~cilY ''oi'Wl.IIC CUi, .~ 5% Cill.p.it.mllaJi\\;!..I],rn~ is Jess; llli'IilItlillie i'W«apIDaJb~ p,r]ce by about 2lO% only" iheJ!l !he avttra,g~ willi be :re:g:axded as IIle fhlr vaJue.

(2) If. bowe",e:r., die a:vem,ge '(l'f Ute '!let uset vidue ,and ~be pl'oJ'lkarnirng ,c:ap~ly va]lIIe is }less !han, the average mm.-et pri'Ce, by 8 SUOOIWlJtiaI ma:r~n, ie .• byQ\I'er in% Ihe~ the profi:l.ewmIlg capacity

vill't!le may berc-wo.tkGd li:1 lih¢railisiOI! !iui~ the capilali:!>aUoII! rut'Gi of 15!jli. IUp to' a ' ~~m.uliD. of 8:%"

'Th.e faiil" Va]ue wm be deteritnil100, '00 Ilk, of die, met ~et vaiJ:le'wlhe, J!ewillGd pmfiHamm.g·

c;ap<J.C~~' v~lIIe. ' .

f:!) As iii matter of prudence, i4 rna, be,des,i.mlii~ 1:0 dedl.q;(:t Oil ~~ ,on,e )'cac',s dll\':iil~.lId' pet" ,!ih:n [rpm, doe avera,ge 'M mClLet l'&!iGt and ptofit-Emll~ngalpaci!y values w, ,arrf\i'e at !be, fair VWIle. A ,CIIilWM of this order may 1Iliil: rcq,uDed as a meg!lardi ~gsil. mi!iQfeg!!ec.!:ltailn.tic;s:,

~*j.!) ~t!:wr~'~~,'thi:~,~;e~',U!;aI~:~il'~~- - '·;;i,hl~·~~ ~·:.!i:~~!W~~of.fuo~'1

~lt".Jfi!iC~I':i::a!i&e!,1! ~. lit: Mem',.. tiJe,{ld'a~~i~, ~ ·.riiqtlUi ,j$M:!I;g:ID!~iHMW_k·,.it

W~!i'W"~jl;y 1lC:al:i5~a.tt1:: del:itsT~;w:'VOIl!.iemii!;y' . tl/i.;el~,~<tltfuM~,,~ asset "Wee· ,~

rr..up w iih~a1I~11 ~iilld b:mk. ~. il'1fu::. ]auer 1£, e",'M, hligl'iet.. ThsraliiQ.nale, ,to the ~i!1ioo is ;( hat.if'lhe bUSiness choo:sestq liqqi.~ j~lf .. il i5'lii1;.e'ly Ito remise-- at '[east ilm.s.vailu.e. . - ;(

- (5) If lihe mare is ne'dler l:isl:ed '!lor ~sed ILo be !listed,. i:h¢ a'!il~ Qf the itle.t ~lvatu\} <Iud heproltit~gg; ca~ty valll!lS shoul'd 'be' discOunted by !lit least 1:15% to tate accolllnt of lbe resuicted llo~JiIifty of the s:bare.

9.3 .mlhe c~ of:ster]i!!lZ tea companies ami braD~bes;" '!he. [air !,!'iiiliJ~w~l~ 00 d!etmnI~ omibe IIaMS 'm"

he pR1:i;ciplle;s oo'l,~illled mllm:as ] I) ~lId 11 OOiJ,i[].1N. '

UU VaIuatiicm oJ g,reriin:g ,~a ~M~~.fJ-The ·)w~i.d"v,aluatilIi1ll ,(as di;s,timguidledfrom the , 'Physical''' v,aiiuation done by the Tea .Bo>!W) ,of 'the J!f\\diao busiirli~ of ;s;~I~lIg ~ 'oompa:W.c-s in IhB ::ODi~xt of their llLdiil.nis'l'lron Wlder iilii~ FowigoiExdi~ ReguliJJtioDl Act. will ~ dolitil 00 me ibMiso( (

hefoJ!)ow.in:g princ,~,I'e1'i: -

(a) 'I'I1tenet as~t 'I'aI~ ,(NA V) willi roe cab:rUlatodi ~, dOO mlilial ~~ ~r*d:1lICug aU COEIugenl ,ln~l~lies 113 W\~]jl 3!l ~"UKii:'l'~ ,:lind lia'bijlitiei' •. In. parti.cllktt.libepfotj~. l!":em.iItabJe to Itln.c prurent otlmp~y '!lP .~ ~, ~, qf ''''''JUi!luu:m. is.hi'lllltle dcd.ucted, ou;,.~ IlCel'O be: n~gaWGd as detmo due 10 the ])M.:!1t cO'mpany. AnynviiJuatiim! ,of fi.x.ed asse-ts w.iJIl:alSlO' '00 de;duCted fNm !he ;lo.ta1 :~s;cts as ,C!ltplaililoo il!lPIQ (j;2(iiO abO"O'c. UDIeSS Ilc rev:alllmOEi bas: rairen p~ace lollg ago" It sl'ioold, howevetr, be b:pt ill view thai: Iibe e><clUilWii. ,Qf JievaluatjQlil ,doe~ not lead toli.!g~re resuUs Oli to en,atic 'Vw.ootiOi:l5, as liliclwet'Q. OOm.];'lUl.ies; wi~ s:imiw,aswb.

(b) 'Care &1\ooJ(I, be. take:o. to ~~ ~m .. U ~[!CQrne-~ JiamU.s am doo~ :~ .!lbe~e.'tS befQl'e miv.in3 at the met w.;~t ~'C(NA V) .: Ii'bf l!M!l~~, dn~ Inoo~·tai:C: _Dtp~nt sho'uld li;e Ci)j[iS~tcd KI ;ii$OOlta.liri!! lite !w;lO~~dl!-eS ;reoefll'altile fmmlhe sle:r.hu! compMlles. (c) 'The profit·eami~g C3,paeity vall!ic (PECV) win be caloUiated by tWm,g Lhe svcmg~ ofm~pre· ~profus of the fIve years JI'Clm ~9n,.16, dedJucting 10% fOf 'tax p:ro""isjol!iJ .aw capiJtaliJduglhe, aftet"~~.ax profits to ;m-ive at .15%,

(J), Ii ~ net a55e;t v.ailloo ~N:AV) .is I~S'~' dnim ,the pKlfiHa.ruibpg: ca,filclly valu,-e (f'ECV)., men tbe D~ :MSc~ va(Juc ""',Ill! be tMlelil as·tl!.e :f~v~ile· @f!ltle ]~!m:I b\ld~. B<1JJt .~f Ilhe iilet .~set nluels mORl ~all libe P«lfi1!-eamwllcapQC~~Y v.aJttC tbe:n Ib.c ,numgt! OF the lwC) w.illI !be ~.en as lIB ifmr value. 'l'bd!s b 1)(1, coosW'C iI:Iliat tl1::. netaBSGtvwu", is liJac:k,edlily .meqm!W llf(ilf~L potcntfual .amillhat:

the vallllation docs not in atl!y ,event ~Qeed Ole nell. assel vaIde. , -

10.2 The rmal valuali!i:OIl will 00 del:emUn«i 00 tlie basii5 of Ills; 'lea ElQP)"s repolt and lht< eemments Df

~e Mirii~try of Commerc-e Ib,ereo.n, dOli taliq; :Il!lki, oonilidtl~ w~ wl,'e"'mn facUOts!, I

11. Vl!'I~i'ffl;i(JJ O\!'WlCm:S.- Th.evaluUIOD of bl'an~of 'fbcejgrlloompam\e$ iii~, ~!!!:e:~ qf .m:ir lIidialli&abOO udet .1b.'C' Porei;gll E.x,chil!i)ge ReguJ]atiuil Ai:ll w.ill bG done '!lU !Jhe rc:,.u;i:s of l'be (olk;wba,g: primll.Cipl~: . .

(1) Eaclrl CMe wiD be' cPl1sid.ereil ,ouits 0Wi1l merits beeawse die mEdIDd of IDdi~~goo m~y differ from CiOO to ease, ,depenldifilg 011 ilS ,clroiimt!!tance5.

_ (2} If 'me~I!lI:lJiiilJ prop"se·~ to~· over oul}' tll~ ibusjl1@S$; of the flOte.ig.iiJ b:i'anCilll 'l:Ogstlmr

witlll ,~~r~(! :assets HOiI,]i 'w.iihlh.e fOJi'1\:ilgD. bra(!cl~ irl.lIM:lcd Wlt,hci, obj~fu. l!Dles~ (bere ;[le

~CiSQgS to jliistili~y iI.colllrary '.,jew.

,_ ,(3),A,·.S far ~s poo~ible. ~,ihe i.r[!oome~tax'iiabmty. ~, I!llt;~:mpb .~~>: be,~,.· '.: to be ,d .. is~(U', .g~b. y ihGi hfan~1iI iUic;]f ,a:md tOO lndioo 'OOropllUY may !l0!. be sacldloo wlIl1lhi!s ~llIIbility. ThtiS may K:CfUlK tl:Jc Ib:rsndil! ~:It leA: wiili. sllfijcie~1 asseis, e.8'., tlill IiCmilta1!lCCs to he m;ade aJjl~~ of pa:s.t profits aJ1Jdh~ offi~e l1a:bi Ii,W::s:. ,·ash iiiid bank babJllce5 OIJl oil' the cu:n;,e;nt ~IS, -01lC':.

(5). As reg.mb ltililU'aIio!l, it may be dune oil ~ bas.is ofnb.e boo.k Y~e ,af OW· fjx.ed aSiiet5p_. tal( cwnlU ~ts Jess; die ClU'lit\Ut mil. C~IiilgCD~ ~iab-iItu.es ,lMing a&t'uallytaken. Ql\ll'-T hJl me llldian Cdmp;1'1'!jI' !luhje:ci .. no ~e OOIlJilJl!ii;QD, tmt it ils bae~ii:(f'by :pwfit~li!g pot(m~. r..or this p.'!.I(I])GSe, Ih~ profirtc.ea:r:cillnE 'C3p@i;ity value (PECV) wiU be caID~a~ rut .: baSis oflbe !llVerag:G ~e=~~ poofil:S of the, Last dtt.et years. tax pn:wi~®IIi:M 70% aDd lI;:avitaIDisation at 15%. If fue profi~~aIDi[lg 'Cil.Padtyvalu:c is )~Silli3:11i :iltt net iW~t vatlllC menti..QDCd: libove.dletli tne val.1ilatio,1!I wililID !1ile done, 'ft ~e bruits: of die SN«age of 1he i:\;r;'( values. Jm ollitfworns.lile valuation ;sMulkiMtmmy ev,e:nit'ex<:~~ thco~.asl'lel vaI.\'i1':; oflbt, assets :OOi!l~ b1keniiNer by ~ l:ooiilJn oo.~~, ami. sl:l.ow1d not iiuv,ollve M.!;' lPaymeln dirc~t[y er ilid~l~y ~OJ illtmgible ·as~lil.~ goodwiilli. C'1.e.

(6) As ag~cr:iil proposltioD, it would! be benet to cocc!Qd'e the umemi~~pmfits slid, l1ead offioe lia~~U~lcs: dl!u:: to tDe pm-e.ut company as .if filer are &ibis ,due '!:O i'!;, .: ra1he:rlhiIJilo iw:LUde them in die

clllisi'CiefatiollJ payable by ihe Iqdi!:m C(}mp'a~y. ..

tiaeb Cage win, ·1KIwe'l'ef. h;a; ... ·~ WI ~ cClosi.der.ed 'OBi jt:s OWI;I maitsbecallsc ilhsm coi!lJd be elmS wmre a slJ~~ab!:e·(;i!pi:laiI b~e :fur 1!1OO;~.wia1il com.~' ami f1.'!ireigll sliate lui [!hal capT~! base up ~®, Ihe :Ie;vt.] perrnit~ by tOe Porcip ~;l'iobrulp' Regulation A-cl! ~1l!d, be ,~~, O!!. U~elii.nte:~ued! ~$ilS ~ head affi.t;E HabiUld:Gsfc(ill'iIDjJl8 a pm of t~e 'I11Ull cO.ll5klilralion •

. m2\ Va.huuiO'll ,~ the Mlti~ of "'wii'l,inog buytljb..wi11in8 se-lt€_!"" ~tP,t" 'WhlJe. asa gemaailMe, tliIe

,cO!l.(lept ,of "willinG buyer--wtlli _'Jler" is; not ooctpl:iilil'e fur V3JiOliS rearo:ns, 'nbe ptlc:e ii,~ iIO

bet~n die p.w:tics ;C3:Q beaocc,p I!E:i.e f61krwmg 'iW(J' ,~gorf~s 'of C~i'i : . '

I. ,s"mJ:l Wl~UOSIeI :' If ~ l'ota1cemldcralliQ:g mV()Lvml·~, not ~ !1ts. 51akhs: ,(UU/ 1iIc; slrar~ ~g; ~lied. do, iiQtOODlltilUtc mor~ t1iom~'1)%. ef h, total ,oq-ulty sh.areOOldlinz ark. oomp:omy" .!he ufi~OO:O'n malt' k ~.~ jf!be price iiI,greed to bctweeOJ tile parties does oot ~ceed-·

(0 the, MiJm;g: mm~ prjce. .if ~t .i~ a Wif>1Cd sIlace.

(ii) l!he.price .~ccrtiied by Ilbe 311djti:l'm of:1Jre comp8ilJ if i~ i.:i oot iii Ug, ~b;n.

To guaro. ;~<St lIre, ~lisiMlilll,y.·of spJittio.g.1!be s~~,im'lO sma1~ vah;le~ tmn~octi.O' .. ,ooiIY@II.e mcll lrn:Il~liC)l~ liD. IlliKl same :$h~5 ,s'bou~d ordin;g;itlr be allowed i1il a pEnoo. of onG year.

U. ,CaffswJi'ens; the l<Jirvsl~efu:1D" ,w ,the pria o,gTeed fO ,~nt1u! po.rtl>tI,=lftb.c mir value

iisdcremtimd 3I;:()omJnglQ tbese ... elmes, jll ~s. dian 1ihe ~" .agweed [!0 'tI~~11 tic, parti~ .~. '11 i!';NY

small JMl!io OlIlY. say 'by~oout ,~, if woulld be.prcfu.able oot In dmtutb !be pri:Ce i!bat the IPwtiei (aIDe' ban~oJl haw I'!eg))liki~. ,and se!J;k'Aammlg&l Ure.~I'i'e.!l .

. N~: ,of the: cm:n,panl ..•• ·., ...••• · " •...... ·,~ •• · •.••.. ·" .

A<:cm:digg tG the 3mti!:ed ~ee~h.ctt.~ 001 " .

Nod ,;;uS't!1 ~I!~ (NA,V)

.b. LakIIs. ""........................................... :R$. ~" "' ~ " _.

T!lmli as~,· ..•..•• ~~, " •..•.•.. , , •. ,............ ,~:!:uurohI!l'Tdec~ flillla:li " •. , , " " ....

Dedac"all, litIbilJties: (1) Equity' capitaW., " ..

1. ~!lC'C capj,td , "... 1(:2,) FteG[e;s~eli" .• ;.;." , "" ,,· ..

:2., ~oomed aM I!lIlSOCllJ:iOO bonoww,gs......... ~o~ ~ , ".- ",." .

DtiiW~l ,(JPRtitl,8rm1 J:tabJ{it,r.e:r:'

J. C'iwrellt lj;abiilitie-s " " ".. 1.

i.

4. COlIlilili,g«lt Ilh6Uilies: , ".... 3.

4i,

.s •.

Nd~' ·worth:

Netwm1h:

A.dd : U) Freiihcapil3l isS1!le1 (f:we v~)

~w~~, ioe.lIli!:U:oglmb.mdboolllS, .~ N~t. ~~vaIu.e.I(NA \1) per share

Mel asset .~ (NAV) ~0I(lj1i:g '110 ftl.t (omp8_ny';s ,ilUdilOO':'l

•• ~ III •. ~".~~ ~~"'."'.".!I'I1 •••• g,!++~jo~~i.".M '""'''''~- •••• M.'!-~oJ ••............... t-!" I:.,.. .... " •• ;;;~~

Ave~~e 1XQfil:s berQ~ iax {Olli the ~js gr .$'ilD,ll~ at weighted aWl., as the case may be :

IJed#CI' :- PFovisi.OiI!I fOf itaXalro!i! at.., " ' , _._~~,_ ...•. , .. ,., .. .'%

AIfeJ~profirn afl~T tax Dedi.td .. h'qf.t:eI!'Ce dil'idend.

Neiprqpr (1jj~r ItU

,Add: Ci:;wtrimr.i'icn tu p.roPrs by /raJ:! isme, ~"I 4I'!J' form profi~ q/ter t~

N~r:1' qf ~ity .mans, itwl~i",g Jnm ami bo.R.~ ts.illes &m'i¥i;g,~'pt!r sIi'arl'l' {EllS)

PTOjit-eW'rlmg C;!fpoC'lt)' \larlle' (PHCy) at 1'Sf!" capitalisarw.n ,rate I(Le., by mlfl$ryill,r fiPS .~~.),

PE(1f-i:i'c~wlng' to' the' ()t'lmp'flny",ftmditor:r.

1. Y'eait

2. Yew:

3,. 1,4/lfJ,ft yeat' 4, 'ulJtitlHWS?

t 2 .. 3,

'~f.0l PNced~Dg 12lUlCJdtiis)

A:¥Gl'agc rnm:e. price 011 ~ ;IDo'V't b~:i5 ..

13. Gt:m;:nd,.--1Uj~· .~ to S'lteSS '~ fa~ lihat,h.O'WC",e:r ela!bora!e "'00 del:aHed 'ihG ;guideillines: !MI'ay 'be, th,eproo~ of V8iW\ti~ 'carn:J.Ol ])iOiSrubilly be reducedw <lI, uu(orm3iild iiillle:dble mi~Ii~, '~treise. ~ '!he ulli~ a".l~ysjti, vat\)l~tiall!wUllhillye to 'be ~~ bylhei ~Xi6I"dse pf Judido\!is disCl!\~?D ,aruj Judgmeilt ltakillg nil(! llC(:OOIDt aU lIe1evant f;~I'S. "fhett WiLl aJw,IlYs be several fa~OTh" e,g.> ql!lahty and jl!lt>e;gJ.ity of ik m_~Elgc:meDt.p~t, ,and proS'Jl~lliIv'e. cQmpet~ yield O!1 gQl~arnblc; secm:iljes and. mark:eloootimoo4,. ete., w~Jicb, are uot evident D,om d'!-e face 'Il,fdle, ba:llmc[l.iskets but w~jch WJ!I]sltcl!!gb' i'nfiueaee the wool1 ,of II .S!hare, Simi.lai.ylHil.eaecnl!!lil~ migh_t, be "wimdow Wessed" w~1!lt a view to p~G'iI!1:lI8; iI b~i;g:~le:f~pi'Ctl/Jfe?,f tliie,' Ofi'1Q~::S '~ling~l'I.'The ;ggi~i;n.es are :i~telliU~~~ ee pro~ide;"the basic frainewru1:.for valualJIiJ!lJ and to IruDlIlEilI5e; fb,e element of subjctlil'YC OODSlQenl1ilOO. Whsiie, they sb iiedw_dy ;1nd oonsi:stcody ~n <Iln eases, Illit;y :!hallldoot be uga:rded ,ail elffi.-nJ!!aMn,glhe

~i8e of, [cUm! alld i!ldgmenlll~d to ani'l'e!'!rt ill f,ai!f ,im~ eqwlablc: .. all1alWlI.

, 14. llwo!l!Wi be~!lcl'tll to ,eompm tkebui~ of ~e ,valua!ioll areofliDg to ~c; f1'ld.elirn~ wi.th ~Qf tnel~y'ii, 3tl!ilIN,s,. On ~ one IJ~, 'Ibis W.ln bdp redlllCll1! mots iii. calel.ll]IttJO~ as weI] asa lOO~ter WMlenlaodhlgQf 1!bie fuels o:f (]we case, altd, go !he omer e. tills 'Win trn!!ble us to expJaiill!he ibasis, of OW" 'vl'llm'ilWn to 'Uii;e COD1J.1~Y ~oorn.e~l