Alternative

Case Body Question Alternative 2 Alternative 3 Alternative 4

1
Financial creditor approached National Company Law What would be the valuation date as
Tribunal ( NCLT) as per company Law-2013 and IBC per corporate insolvency resolution 1-Apr-2005 1-Apr-2021 1-Apr-2007 1-Apr-2038
2016 against Corporate Debtor (CD). The decision by process?
NCLT on 1 April 2021 to go through CIRP as per IBC. What is the rental value of land as
The land area 2000 sq.mt was given on lease for 33 Rs. Rs. Rs.
on valuation date on corporate Rs. 1,01,30,000/-
years. On Rs. 1,00,000/- per annum rental basis for 9,12,500/- 12,50,000/- 1,10,42,429/-
debtors interest?
33 years on 1st April 2005 by CD. Lessee constructed What is the reversionary value of
commercial RCC building adopting 1.20 FAR in 2007. Rs. Rs. Rs.
land as on valuation date on Rs. 1,01,30,000/-
Lessee has given the commercial units on sub lease on 9,12,000/- 12,50,000/- 1,01,30,000/-
corporate debtors interest?
1 April 2007. Lease condition was after mature period What is the depreciated value of Rs.
of lease, building property will belongs to ownership of Rs. Rs.
building after end of lease period ? Rs. 24,00,00,000/- 12,84,00,000
CD. Prevalent rate of land is Rs. 4000/- per sq.mt & 9,42,40,000/- 3,12,83,200/-
/-
rate of RCC building construction is Rs. 20000/- per
Find depreciated present value of
sq.mt in 2020-2021. Cost Inflation Index ( (CII) for the RS. Rs. Rs.
building 7% discounting rate as on Rs. 9,77,60,000/-
year 2005, 2007 and 2021 is 117,129 and 301 3,09,51,000/- 1,10,42,000/- 12,50,000/-
valuation date?
respectively, and assuming CII in year 2038 as 1204.
Find Estimated Fair Value of total
The salvage value is 10%.
asset on Corporate Debtor's interest Rs. Rs.5,07,81,00 Rs.
Rental Capitalization rate is 8%. Rs. 1,01,30,000/-
as on CIRP commencement date? 1,10,42,000/- 0/- 5,16,93,000/-
Total life of RCC Structure is 60 years. Discounting
rate for present value is 7%.

State government Industrial Corporation leased (SGIC) What is the unearned increase in
Rs. 6000/- Rs. 5200/- Rs. 800/- Rs. 2600/-
2400 sq.mt. Land for industrial unit by taking one time land value?
premium of Rs. 800/- Per sq.mt. Lease period was 99 What is the lessor’s interest in land
years with further renewal condition in 1990 with lease Rs. Rs. Rs.
value? Rs. 19,20,000/-
rent Rs. 1/- per annum. Lessee constructed 1200 1,44,00,000/- 49,92,000/- 74,88,000/-
sq.mt factory building in 1990. Lease deed condition is What is the value of lessee’s interest
when lessee transfer the property, Shall pay 40% Rs. Rs.
in land value? Rs. 49,92,000/- NIL
unearned increase in land value to SGIC, useful life of 94,08,000/- 1,44,00,000/-
factory building is 60 years. What is the depreciated replacement
Replacement cost of factory building in 2021 is Rs. cost of factory building by straight Rs. Rs. Rs.
18000 /- Per sq.mt and land value in 2021 is Rs, 2,16,00,000/-
line method? 1,11,60,000/- 2,05,95,600/- 1,04,40,000/-
Rs.6000/- Per sq.mt.
What is the value of lessor’s interest
Rs. Rs. Rs.
in land & building value? Rs, 49,92,000/-
1,98,48,000/- 1,44,00,000/- 1,04,40,000/-
What is the value of lessee’s interest
Rs. Rs, Rs.
in land & building value? Rs. 1,04,40,000/-
1,98,48,000/- 49,92,000/- 1,44,00,000/-
In perpetual lease condition with
renewal clause capitalized value of 100% of 40% of market
60% of market rate Negligible
land in lessor’s interest is. market rate rate

Land was leased for construction of Cinema House in a Calculate value of lessor’s interest
Rs. Rs.
big City in 1991. The land was leased for 36 years. as right to lease rent income in Rs. 22,50,000/- Rs. 4,78,000/-
8,24,400/- 13,05,000/-
Land lease rent was Rs. 1,80,000/- per year. Lessee 2020-2021?
constructed Cinema House in 1995. Gross income Calculate value of lessor’s interest
from Cinema in 2020-2021 is Rs. 28,00,000/- as right to Cinema income after 7 Rs. Rs. Rs.
maintenance charges Rs. 50,000/- per annum. Staff Rs. 1,60,39,000/-
years due to reversion clause in 93,02,620/- 1,79,16,700/- 1,34,37,500/-
salary Rs. 45,000/- per month. Corporation property 2020-2021?
tax Rs. 30,000/- per 6 months. Stamp duty charges Calculate the total value of property
Rs.20,000. The condition on maturity of lease period is Rs. Rs. Rs.
of lessee’s interest in 2020-2021? Rs. 1,34,37,500
that cinema with machinery would vest with lessor. 21,50,000/- 87,72,000/- 43,86,000/-
Useful life of Cinema House is 60 years. Calculate the % of value share of
Rate of capitalization is 12%. Redemption rate of lessor’s interest in 2020-2021? 47.30% 52.71% 57.20% 43.80%
capital 4% per annum. For present value computation
capitalized rate is 8%.
What will the total property value for
Rs. Rs. Rs.
lessor's interest in 2020-2021? Rs. 1,60,39,000/-
93,02,620/- 1,50,50,000/- 97,80,772/-

In 2011, Mr. X Purchased a residential plot of 2500 What is the total replacement value Rs. Rs. Rs.
Rs. 50,60,000/-
sq.ft. for Rs. 35,00,000/-, in the year 2013, He has of the building? 37,50,000/- 57,50,000/- 75,00,000/-
constructed a residential building of GF for 1500 sq.ft. What is the total depreciation value Rs.
and in the year 2015, He constructed FF for 1000 Rs. 4,50,000/- Rs. 2,40,000/- Rs. 6,30,000/-
of the entire building? 6,90,000/-
sq.ft in 2018, a valuation report is required. What is the total depreciated value Rs. Rs. Rs.
Replacement cost of GF is Rs.2500/- per sq.ft and FF Rs. 55,10,000/-
of the entire building? 53,00,000/- 51,20,000/- 50,60,000/-
is 2000 per sq.ft. Prevailing market rate of plot is What is prevailing market value of Rs. Rs. Rs.
Rs.2000/- sq.ft. and the guidwline rate is Rs. 2500 Rs. 50,00,000/-
the plot? 60,00,000/- 40,00,000/- 62,50,000/-
sq.ft Assume the life as 60 years and salvage value is What is the total value of the
10%. Rs. Rs. Rs.
property as on date that can be Rs. 1,00,90,000/-
1,00,30,000/- 1,00,60,000/- 1,00,00,000/-
certified?
What is the book value of the plot as Rs. Rs. Rs.
Rs. 50,00,000/-
on 2021? 35,00,000/- 55,00,000/- 60,00,000/-
Mr. X purchased a plot of 2000 sq.mt. in a big city in What will be the depreciation
the year 2000 for a price of Rs. 60,00,000/-. In the amount of the hospital building by Rs. Rs. Rs.
Rs. 2,10,00,000/-
year 2001, he constructed a hospital having 500 sq.mt adopting straight line method? 3,50,00,000/- 1,05,00,000/- 2,33,10,000/-
built up floor area at ground level and 500 sq.mt. built
up are at first floor level at the cost of Rs. 40,00,000/-. What will be the depreciation
Prevalent replacement cost of similar hospital as on amount of the hospital building by Rs. Rs. Rs.
2021 is Rs. 35,000 per sq.mt. Prevalent land price in Rs. 1,05,00,000/-
adopting Constant percentage 99,57,500/- 3,50,00,000/- 1,15,50,000/-
the localityat present is Rs. 80,000 per sq.mt. The total method ?
life of the building is 60 years. Scrap Value 10% What will be the total market value Rs.
Rs. Rs.
of the plot at present? 15,00,00,000 Rs. 20,00,00,000/-
8,00,00,000/- 16,00,00,000/-
/-
What will be the total market value Rs. Rs.
Rs.
of the hospital property for bank 16,60,00,000 Rs. 18,45,00,000/- 19,05,00,000
18,55,00,000/-
loan purpose? /- /-
What is the balance economic life of
40 Years 60 Years 20 Years 50 Years
the building?
Which of the following will not be
Land rate Replacement
considered for the estimation of Age to be Area to be
need not be cost to be
present value of building? considered considered
considered considered

A business man purchased a plot of 1200 sq.mt is a What will be the depreciation
posh locality of a city in the year 1995 for a price of Rs. amount of the bungalow by adopting Rs. Rs. Rs.
Rs. 80,00,000/-
30,00,000/-. In the year 1996 he constructed a straight line method of depreciation? 1,00,00,000/- 95,00,000/- 90,00,000/-
residential bungalow having 600 sq.mt. built up floor
area at ground level and 200 sq.mt. built up are at first What will be the depreciation
floor level at the cost of Rs. 60,00,000/-. Prevalent amount of the bungalow building by
replacement cost of similar Bungalow as on 2021 is Rs. Rs. Rs.
adopting Constant percentage Rs. 90,00,000/-
Rs. 30,000 per sq.mt. Prevalent land price in the 82,05,600/- 95,00,000/- 85,00,000/-
method of depreciation?
locality at present is Rs. 60,000 per sq.mt the total life
of the building is 60 years. Considered scrap Value What will be the total market value
10% Rs. Rs. Rs.
of the land at present? Rs. 8,20,00,000/-
7,40.00,000/- 7,20.00,000/- 6,80,00,000/-
What will be the total market value
Rs. Rs. Rs.
of the bungalow property for bank Rs. 6,30,00,000/-
7,20,00,000/- 9,59,10,000/- 13,30,00,000/-
loan purpose?
What is the balance economic life of
35 Years 60 Years 25 Years 40 Years
the building?
Which of the following will not be
Economic
considered for the estimation of
Replacement obsolescence
present market value of above Depreciation Current Land rate
cost need not be
property?
considered

A building with 6 floors each floor contains 300 sq.mt What is net rental income from Rs.
Rs. 6,46,220/- Rs. 6,20,720/- Rs. 6,08,720/-
built up area. Ground, 1st, 2nd are occupied by tenant occupied part? 6,21,220/-
tenants. There are 4 tenants per floor each occupied What is the value of owner occupied
75 sq.mt built up in each floor. Each tenants charges Rs. Rs. Rs.
portion of building? Rs. 1,80,00,000/-
Rs. 5000/- month rent. Property tax Rs. 50,000/- per 2,70,00,000/- 3,60,00,000/- 90,00,000/-
6 months. N.A. tax is Rs. 1000/- per year. Insurance What is the value of tenant occupied Rs. Rs. Rs.
Rs. 12,000/- year. Repair charges 5% of gross rental Rs. 77,65,250
portion of building? 64,62,200/- 80,77,750/- 76,09,000/-
income. Management charges 3% of gross rental Which method is applied for Tenanted
income. Upper 3 floors are owner occupied. Rental valuation? portion by
capitalization rate is 8% for tenant occupied portion.
income
Land area 1800 sq.mt. FAR is 1.00 Flat rate is Rs.
approuch &
3000/- per sqq.mt. Building is newly constructed. Market Cost
Income approuch owner
approuch approuch
occupied
portion by
market
approuch
What is the total value of building?
Rs. Rs. Rs.
Rs. 3,50,77,750/-
2,70,00,000/- 80,77,750/- 5,40,00,000/-
What is the balance potential for 0.25 FSI is 0.75 FSI is
0.50 FSI is balance
owner? balance to balance to Nil
to develop
develop develop

In a plot of 6320 sq.ft., the landlord Mr. X intends to What is FSI? 1.00 2.00 2.50 1.50
construct an apartment through joint venture for a What is the undivided share (UDS)
7905 sq.ft 1185 sq.ft 1580 sq.ft 395 sq.ft.
built up area of 12640 sq.ft. There will be 16 flats of for each flat?
super built up are of 790 sq.ft. The prevailing market What is the composite rate? Rs. 9,000/- Rs. 5,000/- Rs. 2,500/-
rate for plot is Rs. 10,000/- per sq.ft. ans the Rs. 7,500/- Sq.ft.
Sq.ft. Sq.ft. Sq.ft.
guideline rate is Rs. 18,000/- per sq.ft. The building What is the selling price of each Rs. Rs. Rs.
construction rate is Rs. 2,500/- per sq.ft. Assume the Rs. 53,32,500/-
flat? 35,55,000/- 71,10,000/- 83,32,000/-
promoters profit as 20%. What is joint venture Ratio?
65:55 33:67 45:55 67:33
(Promoter : Landlord)
Whether there is any impact of
guideline rate while fixing the Guideline rate
composite rate and venture ratio? Guideline Guideline rate
plays
rate plays Guideline rate plays no role
important role
important plays important while fixing
in fixing
role in fixing role in fixing Joint the composite
composite
composite Venture ratio rate and joint
rate of Joint
rate venture ratio
Venture ratio
On 04/01/2004, a property was acquired by Mr. X for What is the indexed cost of Rs. Rs. Rs.
Rs. 9,08,000/-
Rs. 9,08,000/- . In August 2010, improvements were acquisition? 25,07,400/- 16,36,600/- 13,91,200/-
made for Rs. 12,06,000/- on 20/08/2020. The What is the indexed cost of Rs. Rs. Rs.
property was sold to Rs. 93,00,000/-. 109, 167, 301 Rs. 33,30,300/-
improvement? 12,06,000/- 18,47,700/- 21,73,700/-
are the cost inflation index for 2003-04, 2010-11, 2020- What is the total indexed cost of Rs. Rs. Rs.
21 respectively. Rs. 46,81,000/-
acquisition & improvement? 46,18,000/- 46,91,000/- 46,19,000/-
What is the taxable capital gain? Rs. Rs. Rs.
Rs. 93,00,000/-
46,81,000/- 46,19,000/- 46,91,000/-
What is the tax to be paid by Mr. ‘X’ Rs.
Rs. 18,47,500/- Rs. 4,61,900/- Rs. 6,15,900/-
? 9,23,800/-
If the property is owned by a
Rs. Rs. Rs.
company, What is the capital gain Rs. 6,15,900/-
9,23,800/- 18,47,600/- 18,67,600/-
tax?

A factory building 1500 sq.mt having 15 years old. It is What is the cost of foundation?
Rs. Rs. Rs.
insured for fire against average claim clause for Rs. Rs. 3,50,00,000/-
2,70,00,000/- 3,00,00,000/- 1,35,00,000/-
60,00,000/-. The factory get loss of
Rs. 20,00,000/- due to fire damage. The prevailing rate What is the depreciated cost of
of factory building construction Rs. 20,000/- per Rs. Rs. Rs.
factory building excluding Rs. 1,35,00,000/-
sq.mt. 2,70,00,000/- 3,00,00,000/- 3,00,00,000/-
foundation?
The cost of foundation is 10% of total cost of factory What will be the claim amount to be
building. The total life of factory building is 30 years. Rs. Rs.
given by the insurer to insured? Rs. 12,22,200/- Rs. 8,14,800/-
16,29,600/- 50,00,000/-
Which method is used for valuation?

Average claim
General
clause under Reinstatement Null insurance
Insurance
shandard fire Insurance policy policy claim
policy claim
insurance claim clause clause
clause
policy