Financial Reporting - May 2015 MTP

(a) From the information furnished you are required to compute the Basic and Diluted EPS (earnings per share) for accounting year 01-04-2014 to 31-03-2015 and adjusted EPS for the year 01-04-2013 to 31-03-2014. Net profit for year ended 31-03-2014 Rs. 75,50,000 Net profit for year ended 31-03-2015 Rs. 1,00,25,000 No. of equity shares as on 01-04-2014 Bonus issue on 01-01-2015 50,00,250 1 share for every 2 held No. of 12% Convertible Debentures of Rs. 100 each issued on 01-01-2015 Conversion…

Shine Co. Ltd. carried on manufacturing business. Its products were sold to wholesalers and the company had its own retail shop. Bhawna & Co., Private Ltd. carried on similar manufacturing business, but all goods produced were sold through the company’s own retail shops. The summarised balance sheets of the two companies as at 31st March, 2015 were as follows: Shine Co. Ltd. Rs. Bhawna Co. (P) Ltd. Rs. 10,00,000 2,50,000 Issued & fully paid 25,00,000 6,00,000 Plant & Machinery 13,00,000…

The following information has been extracted from the Books of ‘A’ Limited group (as at 31st March, 2015): A Ltd. B Ltd. C Ltd. A Ltd. B Ltd. C Ltd. Rs. Rs. Rs. Rs. Rs. Rs. Share capital Fixed Assets depreciation (Fully equity shares of Rs. 10 each) Investment at 8,00,000 6,00,000 4,00,000 Current Assets Profit and Loss Account 2,10,000 1,90,000 1,28,000 4,20,000 3,76,000 5,22,000 6,30,000 4,00,000 1,20,000 60,000 -40,000 Dividend received: From B Ltd. in 2013-2014 60,000 From B…

Umeed Ltd. is engaged in the business of design and construction of Product A that are supplied exclusively to the Processing Department. The core component of such is outsourced by Umeed Ltd. from Pure Ltd. the sole manufacturer of this item. Umeed Ltd. wants to gain leadership in this industry and seeks to take over Pure Ltd. Umeed Ltd. estimates that its Goodwill in the industry will increase by a minimum of Rs. 300 crores consequent on the acquisition. Umeed…

(a) Given below is the summarised Profit and Loss Account of Lal Ltd.: Summarised Profit and Loss Account for the year ended 31st March, 2014 Notes Amount (Rs. ’000) Income Sales 1 Other Income 28,525 756 29,281 Expenditure Operating cost Excise duty Interest on Bank overdraft 2 25,658 3 1,718 93 Interest on 10% Debentures 1,157 28,626 Profit before Depreciation 655 Less: Depreciation (255) Profit before tax 400 Provision for tax 4 Profit after tax 125 (275) Less: Transfer to…