NISM Series XV case set 3

A parent company earns ₹80 crore from its own operations, excluding all income from its subsidiary. The subsidiary earns ₹60 crore, and the parent owns 75% of it. There are no intercompany transactions or consolidation adjustments beyond attributing the subsidiary’s profit to parent and non-controlling shareholders. The parent has 10 crore ordinary shares. Of the parent’s own ₹80 crore profit, ₹20 crore is a one-off gain that the analyst excludes when estimating recurring earnings. Assume no tax adjustment to that gain is needed because all stated profits and the gain are already after tax. Keep consolidated total profit separate from profit attributable to the parent’s owners.

All people, firms, prices and contract terms are fictional.

Ignore taxes and transaction costs unless the case explicitly includes them.