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Less: Financial Liabilities
Long term borrowings (300) (300) -
Long term provisions (80) (80) -
Deferred tax (55) (55) -
Financial Liabilities
Short term borrowings (170) (170) -
Trade payables (320) (320) -
Contingent liability - (10) (10)

Net assets (X) 675 515 (160)
Deferred tax asset on fair value adjustment (160 x
40%) (Y) 64 160
Net assets (X+Y) 579
Non-controlling interest (NCI) (579 x 30%)
rounded off 173.70
Capital reserve
(Net assets – NCI – PC) 308.49
Purchase consideration (PC) 96.81

3. Computation of Consolidated amounts of consolidated financial statements
David Parker Ltd. PPA Total
Ltd. (pre- acquisition) Allocation
Assets
Non-current assets:
Property, plant & equipment 400 600 (150) 850
Investment 300 200 500
Current assets:

Inventories 300 100 400
Financial assets:

Trade receivables 400 200 600

Cash and cash equivalents 150 200 350

Others 300 300 600
Total 1,850 1,600 (150) 3300
Equity and Liabilities
Equity
Share capital- Equity shares of Rs 500
100 each
Shares allotted to Parker Ltd.
(2,00,000 x 70% x Rs 10 per 14 514
share)
Other Equity
Other Equity 700 700
Replacement award 3 3
Security premium (2,00,000 shares
x 70% x Rs 40) 56 56
Capital reserve 308.49 308.49

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