Solve if you are sure.

H Ltd. agrees to buy over the business of B Ltd. effective 1st April, 2012. The summarized Balance Sheets of H Ltd. and B Ltd. as on 31st March 2012 are as follows: Balance sheet as at 31st March, 2012 (In Crores of Rupees) Liabilities: H. Ltd B. Ltd. Paid up Share Capital -Equity Shares of 100 each 350.00 -Equity Shares of 10 each 6.50 Reserve & Surplus 950.00 25.00 Total 1,300.00 31.50 Assets: Net Fixed Assets 220.00 0.50 Net Current Assets 1,020.00 29.00 Deferred Tax Assets 60.00 2.00 Total 1,300.00 31.50 H Ltd. proposes to buy out B Ltd. and the following information is provided to you as part of the scheme of buying: (1) 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. (2) Both the companies envisage a capitalization rate of 8%. (3) H Ltd. has a contingent liability of 7 300 crores as on 31st March, 2012. (4) H Ltd. to issue shares of 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 1 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: (0) Net Asset Value Method Earnings Capitalisation Method 30 / 46 (ii) Exchange ratio of shares of H Ltd. to be issued to the shareholders of B Ltd. on a Fair value basis (taking into consideration the assumption mentioned in point 4 above.)