Illustration 37 600 Maxi Mini Ltd. has 2 divisions - Maxi and Mini. The draft information of assets and liabilities as a 315 October, 20x2 was as under Maxi division Mini division Total fin crores) Property, Plant and Equipment Cost 300 900 Depreciation (500) (100) 16001 W.D.V. (A) 100 200 300 Current assets 400 300 Less: Current liabilities (100) (100) (200) (B) 300 200 500 Total (A+B) 400 400 800 Financed by: Loan funds (A) 100 100 (secured by a charge on property, plant and 700 JUNI 1912 equipment) Own funds: Equity capital 50 (fully paid up 10 per share) Other Equity 650 (B) 700 Total (A+B) 400 800 It is decided to form a new company Mini Ltd to take over the assets and liabilities of Mini division Accordingly. Mini Ltd was incorporated to take over at Balance Sheet figures, the assets and liabilities of that division Mini Ltd. is to allot 5 crore equity shares of 10 each in the company to the members of Maxi Mini Ltd. in full settlement of the consideration. The members of Maxi Mini Ltd. are therefore to become members of Mini Lid. as well without having to make any further investment. (a) You are asked to pass joumal entries in relation to the above in the books of Maxi Mini Ltd. and Mini Ltd. Also show the Balance Sheets of the 2 companies as on the morning of 1 November, 20X2, showing corresponding previous year's figures. (b) The directors of the 2 companies ask you to find out the net asset value of equily shares pre and post demergor (c) Comment on the impact of demerger on "share holders wealth