Page 3 - 34.1 FR MARCH 22 MTP QP

Potential Ordinary Shares:
Options 900 options with exercise price of Rs. 75
Convertible Preference Shares 7,500 shares entitled to a cumulative dividend of Rs. 9
per share. Each preference share is convertible into 2
equity shares.
10% Convertible Debentures of Rs. Rs. 10,00,000 and each debenture is convertible into 4
100 each equity shares

Tax rate 25%
You are required to compute Basic and Diluted EPS of the company for the financial year 20X1-20X2.
(INDAS 33)

Question 2

INDAS 1

(i) B Ltd. produces aircrafts. The length of time between first purchasing raw materials to make the
aircrafts and the date the company completes the production and delivery is 9 months. The company
receives payment for the aircrafts 7 months after the delivery.

(a) What is the length of operating cycle?
(b) How should it treat its inventory and debtors?
(ii) On 1st April, 20X3, Charming Ltd issued 1,00,000 Rs. 10 bonds for Rs. 10,00,000. On 1st April, each year,
interest at the fixed rate of 8% per year is payable on outstanding capital amount of the bonds (ie the
first payment will be made on 1st April, 20X4). On 1st April each year (i.e from 1st April, 20X4),

Charming Ltd has a contractual obligation to redeem 10,000 of the bonds at Rs. 10 per bond. In its
statement of financial position at 31st March, 20X4. How should this be presented in the financial
statements?

(b) In the plant of PQR Ltd., there was a fire on 10th May, 20X1 in which the entire plant was damaged and

the loss of Rs. 40,00,000 is estimated. The claim with the insurance company has been filed and a
recovery of Rs. 27,00,000 is expected.
The financial statements for the year ending 31st March, 20X1 were approved by the Board of Directors on
12th June, 20X1. Show how should it be disclosed? INDAS 10

(c) G Ltd. operates oil exploration and production facilities. It is preparing its transition date opening balance

sheet as per Ind AS.
(i) There· is a significant decommissioning obligation in connection with several oil wells, but it's previous
GAAP did not require the obligation to be recognized.
(ii) Discuss the treatment of decommissioning obligation as per relevant Ind AS.
(iii) G Ltd. has four assets, each in a different class under property, plant & equipment.

Assets 1 and 2 are revalued under previous GAAP (AS). Assets 3 and 4 are not. Under previous GAAP, at 31st
March 20X1, immediately prior to the entity's date of transition to Ind AS, it Balance Sheet (extract) is as
follows:

34.2