Page 10 - 35. FR APRIL 22 MTP QP ANSWERS

(iv) Dividend payable 150 230
(b) Provisions

(i) Warranty provision
600 445
(ii) Provisions for accrued leave
35 25
Total current liabilities
2,440 2,310
Total liabilities
6,005 6,335
Total equity and liabilities 10,790 10,275
Working Notes:
Notes Particulars Basis Calculation Amount

` in crore ` in crore

1 Property, plant and Property, plant and equipment (PPE) 5,200 – 1,610 3,590
equipment at cost less Accumulated (depreciation (4,700 – 1,240) (3,460)
on PPE
2 Inventory Inventory at cost add Inventory at fair 1,500 + 180 1,680
value less cost to complete and sell (1,650 + 130) (1,780)

3 Trade and other Accounts receivable less Provision for 2,300 – 200 2,100
receivables doubtful receivables (1,800 – 65) (1,735)

4 Cash and cash Cash and Cash equivalents 250 + 70 320
equivalents (170 + 30) (200)
5 Other Equity Retained earnings at the beginning of 1,875 + 1,200–
the year add Profit for the year less 160 – 90 2,825
Non-controlling interest’s share of
(1,740 + 830 –
profit for the year less Dividend
150 – 70) (2,350)
declared by A Limited

6 Long-term debt Long-term debt less Due on 1st 3,300 – 500 2,800
January each year (3,885 – 500) (3,385)
7 Trade & other Trade payables add Accrued 880 + 15 895
payables expenses (790 + 30) (820)

8 Current portion of Due on 1st January each year - 500
long- term debt - (500)

Note: Figures in brackets represent the figures for the comparative year.

(b) At the effective date of the modification (at the beginning of Year 7), Lessee remeasures the lease
liability based on:

(a) Remaining lease term = 8 years
(b) Annual payments = ` 1,00,000 and
(c) Lessee’s incremental borrowing rate = 7% p.a.
The modified lease liability equals ` 5,97,100 (W.N.1). The lease liability immediately before the
modification (including the recognition of the interest expense until the end of Year 6) is `

3,46,355 (W.N.3). Lessee recognises the difference between the carrying amount of the modified
lease liability and the carrying amount of the lease liability immediately before the modification
(i.e., ` 2,50,745) (W.N.4) as an adjustment to the ROU Asset.

35. 9