Page 63 - 16. COMPILER QB - INDAS 103

Usha Ltd. Nisha Ltd. Sandhya Ltd.
Equity and Liabilities
Shareholder's Equity
Share capital Rs10 per share) 300 200 160
Reserves 90 50 40
Retained earnings 80 25 30
Current Liabilities
Trade Payables 235 115 90
Bills Payable
Usha Ltd. - 35 -
Sandhya Ltd. 15 - -
720 425 320
Assets
Non-Current Assets 150
Tangible assets 160 180
Investment: -
16 lakh shares in Nisha Ltd. 170 - -
12 lakh shares in Sandhya Ltd. - 140
Current Assets
Cash in hand and at Bank
Bills Receivable 114 20 20
Trade Receivables 36 - 15
Inventories 130 50 110
110 35 25
720 425 320
The following additional information is available:
(i) Usha Ltd. holds 80% shares in Nisha Ltd. and Nisha Ltd. holds 75% shares in Sandhya Ltd. Their
holdings were acquired on 30th September, 2017.

(ii) The business activities of all the companies are not seasonal in nature and therefore, it can be assumed
that profits are earned evenly throughout the year.
(iii) On 1st April, 2017, the following balances stood in the books of Nisha Limited and Sandhya Limited.

Rs in lakh

Nisha Limited Sandhya Limited
Reserves 40 30
Retained earnings 10 15
(iv) Rs5 Lakh included in the inventory figure of Nisha Limited, is inventory which has been purchased from
Sandhya Limited at cost plus 25%.
(v) The parent company has adopted an accounting policy to measure Non-controlling interest at fair value
(quoted market price) applying Ind AS 103. Assume market prices of Nisha Limited and Sandhya

Limited are the same as respective face values.
(vi) The capital profit preferably is to be adjusted against cost of control.

Note: Analysis of profits and notes to accounts must be a part of your answer.

16. 62