Financial Reporting - May 2022

(a) Shagun Ltd. received two different grants from State Government as per details below: (i) A cash grant of # 24 lakh was received on 31s! March, 2020 towards the skill development of employees over a period of 18 months, starting from 1% April, 2020. Actual costs of the skill development program in financial year 2020-2021 was % 30 lakh and in financial year 2021-2022 was € 20 lakh. State, how this grant should be accounted for in the books…

Shravan Ltd. owns 6,800 ordinary shares in PQR Ltd., an unquoted company. PQR Ltd. has a total share capital of 2,00,000 shares with nominal value of ₹10. PQR Ltd.'s after tax maintainable profits are estimated at % 28,00,000 per year. An appropriate price/earnings ratio determined from published industry data is 12 (before lack of marketability adjustment). Shravan Ltd.’s management estimates that the discount for the lack of marketability of PQR Ltd.'s shares and restrictions on their transfer is 18%. Shravan…