Valuation Report of Bootes

Document Summary

Valuation Report on Fair Value of Equity Share of M/S Bootes Impex Tech Limited

This report, prepared by Suman Kumar Verma, a Cost Accountant & Registered Valuer (Membership No.: 28453, Reg. No. IBBI/RV/05/2019/12376), is for the valuation of equity shares of Bootes Impex Tech Limited, with a valuation and signing date of 9th July, 2024. The report is addressed to the Board of Directors of Bootes Impex Tech Limited, located in Gurgaon, Haryana. The subject of the report is the valuation of the fair value of equity shares at ₹1000/- face value ₹10 each.

The valuation is mandated by the Board of Directors for the purpose of issuing equity shares to proposed investors, in accordance with Section 56 of the Companies Act, 2013, to determine the fair market price per share. The scope of the service is limited to determining the fair value of equity shares according to internationally accepted valuation standards/ICMAI Valuation Standards, solely for compliance with the Companies Act, 2013. The valuation is not in accordance with rule 11UA of Income tax rules but may be relied upon in Income tax matters with required modification as per the rules. The valuation cut-off date is the closure of business hours on 9th July 2024. The scope does not include legal advice, accounting/taxation matters, or other certification services. The valuation relies on information provided by the Company and is performed on a limited scope basis.

Company Background: Bootes Impex Tech Limited (BITL) is a registered startup operating as a Public Limited Indian Non-Government Company, incorporated on March 4, 2021. It is engaged in the Infrastructure Industry. As of July 9, 2024, the company's CIN is U51909HR2021PLC093355, ROC is Delhi, and registration number is 093355. Its authorized capital is Rs. 27,00,00,000 and paid-up capital is Rs. 7,31,94,880. The last AGM was held on 30/09/2023 and the date of the balance sheet is 31/03/2023.

Sources of Information: The valuation relies on information provided by the management of Bootes Impex Tech Limited, including the Memorandum and Articles of Association, projected financial statements for FY 2024-25 to FY 2028-9, and the present shareholding pattern. Public domain information was also used, including a risk-free rate of 6.985% based on the yield on 10-year Government of India Securities, a market return of 18.81% based on the Compounded Annual Growth Rate on the BSE Sensex, a global beta of 1.00, and a long-term growth rate of 5%.

Valuation Methodology: The report details several valuation methodologies, including:

• Net Asset Value (NAV) Method: Not used because the company's value is primarily in its future earnings potential.
• Discounted Cash Flow (DCF) Method: Used due to the company's status as newly incorporated, where value lies in future earnings.
• Market Price Method: Not relevant as the shares are not frequently traded on a stock exchange.
• Comparable Company Multiples (CCM) Method: Not suitable due to the lack of comparable listed peers.

The DCF Method was chosen as the most appropriate method, assigned 100% weightage to arrive at the fair value of equity shares, as it is based on the company's capacity to generate cash flows, which are projected into the future. The method is, however, subject to uncertainties and assumptions.

Valuation and Opinion: Based on the DCF method, the fair value of the diluted equity shares is determined to be ₹1000/- per share. This conclusion is based on the management-provided information as of July 9, 2024. The discounted cash flow valuation considered a discount factor (Ke) between 0.8417 and 0.4224. The sum of discounted cash flows (DCF) amounts to 742.23. Given 74,19,488 outstanding shares, the value per share is calculated at 1,000.38 and rounded off to ₹1000.00.

Disclaimer and Limitations: The report is subject to several limitations, including reliance on management-provided information, the absence of a specific audit, and the lack of market survey or technical/financial feasibility assessment. The study did not include an audit of financial statements, a market survey, financial and legal due diligence, or other assurance advisory services. The valuation does not constitute an audit as per Indian GAAP/ International Financial Reporting Standards. The valuer assumes no responsibility for the accuracy or completeness of information provided by the management. The report cannot be used by management or related parties for reasons other than its limited purpose. The valuer is not liable for any damages.

The UDIN for this report is 2428453ZZE3XNIN0WW.