Following is the Balance Sheet of Satyam Ltd. for the year ended 31.12.2008:
( in crores)
|
Liabilities |
Assets |
||
| Share Capital (@10/- par)
Reserves Secured Loans Current Liabilities |
136 7,222 24 1,441 |
Fixed Assets
Investments Current Assets |
883 494 7,446 |
|
Total |
8,823 |
Total |
8,823 |
Mr. Raju, the chairman of Satyam Ltd. declared a scam in the company on 1.1.2009. The following were the details:
i) There was cash which was non-existent cash of 5040 crore.
ii) Interest not receivable recorded 376 crore.
iii) Total Liability is understated by 1,230 crore.
iv) Actual Debtor position of 490 crore as against 651 crore reported in the books.
L & T which has a Net asset value of 405.10 per share wants to buy a stake in the company and has asked you to calculate:
(i) Intrinsic value on 1.1.2009
(ii) Exchange Ratio
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