Q. Valuation of shares for issue of shares

Question

Pl guide:  In case of Pvt td co, (valuation purpose - issue of shares) -
1. how many players of investment should we consider? For example, A is holding shares of B and C and B is holding investment in D and E and C in F. In the same way 2 more layers are there? So at how many layers we should take? Is three layers enough?

2. And as on today can we take audited balance sheet as on 31.03.2020 or proviosnal balance sheet as on 31.03.2021 for all such companies

Answer 1

1. As per section 186 there cannot be more than two layers of further investments kindly refer the same along with the relevant rules

2. The valuation for the issue of shares has to be taken as per the latest audited balance sheet