Under the net payment method, consideration is calculated by adding the cash paid, agreed value of assets given, and agreed value of securities allotted by the transferee company to the transferor company. The document provides an example, where P Ltd takes over S Ltd and agrees to give 10 preference shares worth Rs. 10 each for every preference share in S Ltd, and Rs. 1 in cash plus 1 equity share worth Rs. 15 for every equity share in S Ltd. The total consideration is calculated as Rs. 20 lakh for preference shares, Rs. 1.2 crore for equity shares allotted, and Rs. 0.8 lakh for cash, amounting to Rs. 1.48 crore.