|Total No. of Questions — 6]||[Total No. of Printed Pages — 4|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answer all questions.|
|Working notes should form part of the answer.|
|Wherever necessary, suitable assumptions may be made by the candidates.|
|1.||(a)|| From the following details of an asset |
|(b)||U.S.A Ltd. purchased raw material @ Rs. 400 per kg. Company does not sell raw material but uses in production of finished goods. The finished goods in which raw material is used are expected to be sold at below cost. At the end of the accounting year, company is having 10,000 kg of raw material in stock. As the company never sells the raw material, it does not know the selling price of raw material and hence can not calculate the realizable value of the raw material for valuation of inventories at the end of the year. However replacement cost of raw material is Rs. 300 per kg. How will you value the inventory of raw material?||(0)|
|(c)||Moon Ltd. entered into agreement with Sun Ltd. for sale of goods of Rs.8 lakhs at a profit of 20 % on cost. The sale transaction took place on 1st February, 2009. On the same day Sun Ltd. entered into another agreement with Moon Ltd. to resell the same goods at Rs. 10.80 lakhs on 1st August, 2009. State the treatment of this transaction in the financial statements of Moon Ltd. as on 31.03.09. The pre-determined re–selling price covers the holding cost of Sun Ltd. Give the Journal Entries as on 31.03.09 in the books of Moon Ltd.||(0)|
|(d)||XY Ltd. was making provisions for non-moving stocks based on no issues for the last 12 months upto 31.03.08. Based on technical evaluation the company wants to make provisions during the year 31.03.09. |
Total value of stock ––– Rs. 150 lakhs.
Provisions required based on 12 months issue Rs. 4.0 lakhs.
Provisions required based on technical evaluation Rs. 3.20 lakhs
Does this amount to change in accounting policy? Can the company change the method of provision?
|2|| The following are the Balance Sheets of H Ltd. and S Ltd. as at 31.03.09: |
H Ltd. holds 60% of the paid up capital of S Ltd. and balance is held by a foreign company.
|3|| P Ltd. owns 80% of S and 40% of J and 40% of A. J is jointly controlled entity and A is an associate. Balance Sheet of four companies as on 31.03.09 are: |
P Ltd. acquired shares in ‘S’ many years ago when ‘S’ retained earnings were Rs. 520 lakhs. P Ltd. acquired its shares in ‘J’ at the beginning of the year when ‘J’ retained earnings were Rs. 400 lakhs. P Ltd. acquired its shares in ‘A’ on 01.04.08 when ‘A’ retained earnings were Rs. 400 lakhs.
The balance of goodwill relating to S had been written off three years ago. The value of goodwill in ‘J’ remains unchanged.
Prepare the Consolidated Balance Sheet of P Ltd. as on 31.03.09 as per AS 21, 23, and 27.
|4.||(a)|| On 1 April, 2008 Delta Ltd. issued Rs.30,00,000, 6 % convertible debentures of face value of Rs. 100 per debenture at par. The debentures are redeemable at a premium of 10% on 31.03.12 or these may be converted into ordinary shares at the option of the holder, the interest rate for equivalent debentures without conversion rights would have been 10%. |
Being compound financial instrument, you are required to separate equity and debt portion as on 01.04.08.
The present value of Re. 1 receivable at the end of the end of each year based on discount rates of 6% and 10% can be taken as:
|(b)|| When general price index was 100, Standard Ltd. purchased fixed assets of Rs. 2 crore and it had also permanent working capital of Rs.80 lakhs. The entire amount required for purchase of fixed assets and permanent working capital was financed by way of 12 % redeemable share capital. Standard Ltd. wants to maintain its physical capital. |
On 31.03.09, the company had reserves of Rs. 3.50 crores. The general price index on that was 200. The written down value of fixed assets was Rs. 20 lakhs and they were sold for 3 crores. The proceeds were utilized for redemption of shares. On the same day (31.03.09), the company purchased new factory for Rs. 20 crores. The ratio of permanent working capital to cost of assets to be maintained at 0.4 : 1.
The company raised the additional funds required for the purpose by issue of equity shares.
|5.||(a)||A Mutual Fund raised 100 lakh on April 1, 2009 by issue of 10 lakh units of Rs. 10 per unit. The fund invested in several capital market instruments to build a portfolio of Rs. 90 lakhs. The initial expenses amounted to Rs. 7 lakh. During April, 2009, the fund sold certain securities of cost Rs. 38 lakhs for Rs. 40 lakhs and purchased certain other securities for Rs. 28.20 lakhs. The fund management expenses for the month amounted to Rs. 4.50 lakhs of which Rs. 0.25 lakh was in arrears. The dividend earned was Rs. 1.20 lakhs. 75% of the realized earnings were distributed. The market value of the portfolio on 30.04.2009 was Rs. 101.90 lakh. |
Determine NAV per unit.
|(b)|| From the following details, compute according to Lev and Schwartz (1971) model, the total value of human resources of the employee groups skilled and unskilled. |
|6.||(a)||Capital adequacy ratio for Non–Banking Financial Companies (NBFC)||4x4=16||(0)|
|(b)||Treatment of refund of Government grants.||(0)|
|(c)||Give four examples of activities that do not necessarily satisfy criterion (a) of paragraph 3 of AS 24, but that might do so in combination with other circumstances.||(0)|
|(d)|| From the following information compute diluted earnings per share. |