|Total No. of Questions— 6]||[Total No. of Printed Pages—8|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued.|
|Answer all Questions|
|Working notes should form part of the answer.|
Wherever applicable, suitable assumptions should be made by the candidate.
|1.|| The Balance Sheet of Munna Ltd. on 31st March, 2005 is as under : |
Two year’s preference dividend are in arrears. The company had bad time during the last two years and hopes for better business in future, earning profit and paying dividend provided the capital base is reduced.
An internal reconstruction scheme as follows was agreed to by all concerned :
|2.|| On 31st March, 2004 the Balance Sheets of H Ltd. and its subsidiary S Ltd. stood as follows : |
It is decided to form a new company ‘IT Ltd.’ for international tourism to take over the assets and liabilities of international division.
Accordingly ‘IT Ltd.’ was formed to takeover at Balance Sheet figures the assets and liabilities of international division. ‘IT Ltd.’ is to allot 5 crore equity shares of Rs. 10 each in the company to the members of ‘Travels & Tours Ltd.’ in full settlement of the consideration. The members of Travels & Tours Ltd, are therefore to become members of ‘IT Ltd.’ as well without having to make any further investment.
|3.|| The Balance Sheets of Football Ltd. and its subsidiary Hockey Ltd. as on 31st March, 2005 are as under : |
Details of acquisition of shares by Football Ltd. are as under :
Other information :
Prepare consolidated Balance Sheet as on 31st March, 2005.
|4.||(a)|| Preparing a segmental report for publication in Diversifiers Ltd. from the following details of the company’s three divisions and the head office : |
|(b)|| An equipment is leased for 3 years and its useful life is 5 years. Both the cost and the fair value of the equipment are Rs. 3,00,000. The amount will be paid in 3 installments and at the termination of lease lessor will get back the equipment. The unguaranteed residual value at the end of 3 years is Rs. 40,000. The (internal rate of return) IRR of the investment is 10%. The present value of annuity factor of Re. 1 due at the end of 3rd year at 10% IRR is 2.4868. The present value of Re. 1 due at the end of 3rd year at 10% rate of interest is 0.7513. |
|(c)|| Intelligent Corporation (I–Corp.) is dealing in seasonal products. The quarterly sales pattern of the product is given below: |
For the First quarter ending 31st March, 2005 I-Corp. gives you the following information :
While preparing interim financial report for the first quarter ‘I–Corp.’ wants to differ Rs. 21 crore expenditure to third quarter on the argument that third quarter is having more sales, therefore third quarter should be debited by higher expenditure. Considering the seasonal nature of business, the expenditure are uniform throughout all quarters.
Calculate the result of first quarter as perand comment on the company’s view.
|(d)||Top & Top Limited has set up its business in a designated backward area which entitles the company to receive from the Government of India a subsidy of 20% of the cost of investment. Having fulfilled all the conditions under the scheme, the company on its investment of Rs. 50 crore in capital assets, received Rs. 10 crore from the Government in January, 2005 (accounting period being 2004–p05). The company wants to treat this receipt as an item of revenue and thereby reduce the losses on profit and loss account for the year ended 31st March, 2005. |
Keeping in view the relevant Accounting Standard, discuss whether this action is justified or not.
|5.|| The following Balance Sheet of X Ltd. is given : |
In 1986 when the company commenced operation the paid up capital was same. The Loss/Profit for each of the least 5 years was—Yrs. 2000-01—Loss (Rs. 5,50,000); 2001-02 Rs. 9,82,000; 2002-03 Rs. 11,70,000; 2003-04 Rs. 14,50,000; 2004-05 Rs. 17,00,000
Although Income-tax has so far been paid @ 40% and the above profits have been arrived at on the basis of such tax rate, it has been decided that with effect from the year 2004-05 the Income-tax rate of 45% should be taken into consideration. 10% dividend in 2001-02 and 2002-03 and 15% dividend in 2003-04 and 2004-05 have been paid. Market price of shares of the company on 31st March, 2005 is Rs. 125. With effect from 1st April, 2005 Managing Director's remuneration has been approved by the Government to be Rs. 8,00,000 in place of Rs. 6,00,000. The company has been able to secure a contract for supply of materials at advantageous prices. The advantage has been valued at Rs. 4,00,000 per annum for the next five years.
Ascertain goodwill at 3 year's purchase of super profit (for calculation of future maintainable profit weighted average is to be taken).
Z Ltd. had incurred a loss of Rs. 504 lakhs for the year ending 31/3/2003 before providing for Current Tax of Rs. 26,000 lakhs.
|6.||(a)||Give an account of the growing scope of human capital reporting.||4x4=16||(0)|
|(b)||Briefly discuss methods of valuation of intangible assets.||(0)|
|(c)||In order to enhance the level of disclosure by the listed companies, SEBI has amended clause 32 of the listing agreement after amendment what disclosures are required?||(0)|
|(d)||After the HAVOC caused by TSUNAMI, a group of companies undertakes during the period from January, 2005 to March, 2005 various commercial activities, having granted considerable subsidy, along the related coast line. The management intends to highlight the results of such activities while publishing financial statements for the year 2004–5. What is the scope?||(0)|