CA certification with respect to projected Balance Sheet

[ganesh Shenoy]

Dear members,

Please Clarify,

As far as we know, a CA cannot certify any projected balance sheet. In the similar way when you are valuing the shares it is on the basis of projected balance sheet. how far it is correct? Also in case of new companies wherein the revenues have not yet started whether the shares can be valued at par value?

Thanks 

GANESH

[ramela rangasamy]

Dear Friend,

Incase of new company, where revenue is not generated, the value of share will be at par. Reason is NW of the company will be only paid up capital.

In case of projection, it depends upon the purpose for which it is given.

R.Ramela

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From: ganesh Shenoy <ganeshs...@gmail.com>
To: csmy...@googlegroups.com
Sent: Thursday, 15 March 2012 12:34 PM
Subject: [CSMysore] CA certification with respect to projected Balance Sheet

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[Ramaswami Mohan]

There are certain basis or methods of valuing shares, and not on projected balance sheet.

For new cos which have not started their earning stream, the CA should qualify his statement or valuation that it is the managements perspective.

it all depends on why the valuation is called for, and by whom, and the nature of the Co ... whether it is Pvt Ltd co or Public Ltd Co, as the shares can be offered for premium under free pricing regime or it can also be through a mutually negotiated price settlement by 2 parties.

views of other members welcome.

regards,

Mohan 

GANESH

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