what is demerger?
Answers were Sorted based on User's Feedback
Answer / jai
Demerger is the opposite of a merger or acquisition. It
describes a form of restructure in which shareholders or
unitholders in the parent company gain direct ownership in a
subsidiary, Underlying ownership of the companies and/or
trusts that formed part of the group does not change.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / praveen
It means whenever a single entity which is formed by
joining two or more entities are separated again then is is
termed as Demerger.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / guest
one Ur more company merge this is called demerger.
| Is This Answer Correct ? | 0 Yes | 5 No |
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?
what is mean by contra entry
What is ERP? Diff b/w Income & Expenditure a/c & P/L a/c? What is the fullform & the application of SAP? What is the reasons where Balance sheet will not tally?
what are accounting concepts?
what is equity shares?
“The investment, financing and dividend decisions are interlinked”. Comment.
What is Rectification of Errors and types of errors?
Calculation of Gross Profit Or Gross Loss give example?
Valuation of Goodwill and calculation!! question asked in many companies,try to remember the methods..
HOW MANY CHART OF ACCOUNT WE CAN DEFINE IN A COMPANY CODE. (SAP QUESTION)
where outstanding debts being Rs 48000 and 20% considered to write off . pass jounal entry.
2 Answers Kalyani Forge, MCom,
what are the document that get created in procurement to pay process ?