H Ltd. agrees to buy over the business of B Ltd. effective Ist April, 2012. The summarized Sheets of H Ltd. and B Ltd as on 31st March 2012 are as follows: Rs in crores Liabilities H Ltd B Ltd Paid up Share Capital: Equity Shares of 100 each 350.00 Equity Share of 2 10 each Reserves & Surplus 6.50 950.00 25.00 Total 1,300.00 31.50 Assets Net Fixed Asset 220.00 050 Net Current Assets 1,020 00 29.00 Deferred Tax Asset 60.00 2.00 Total 1,300.00 31.50 H Ld. proposes to buy out B Ltd. and the following information is provided to you as part of the scheme of buying a) The weighted average post tax maintainable profits of H Ltd and B Ltd. for the last 4 years are 300 crores and 10 crores respectively b) Both the companies envisage a capitalization rate of 8% c) HLtd. has a contingent liability of 300 crores as on 31st March, 2012 ) HLtd to issue shares of t 100 each to the shareholders of B Ltd. in terms of the exchange ratio as arrived on a Fair Value basis. (Please consider weights of I and 3 for the value of shares arrived on Net Asset basis and Earnings capitalization method respectively for both H Ltd and B Ltd) You are required to arrive at the value of the shares of both H Ltd and B Ltd. under 1. Net Asset Value Method. Earnings Capitalisation Method 2 Exchange ratio of shares of H Ltd. to be issued to the shareholder of B Ltd on a Fair value basis (taking into consideration the assumption mentioned in point d above)