Question 1 (a) Sapphire Limited earned Net profit of ₹39,00,000 and ₹59,40,000 for the years 2021-22 & 2022-23 respectively. The following information were given for 2022-2023: (i) The company declared Rights issue of two new shares for each five outstanding shares. (ii) 4,00,000 shares were outstanding prior to Rights issue. (iii) Rights issue price was ₹27.50 and the last date to exercise rights was 1stJuly, 2022. (iv) Fair value of one equity share immediately prior to exercise of rights on 1st July,2022 was ₹143. You are required to Compute Basic Earnings Per Share as per AS-20: (i) For the year 2021-22, and (ii) For the year 2022-23 (b) The accountant of Beryl Limited has asked you to identify the following items as – Change in Accounting Policies / Change in Accounting Estimates / Extraordinary Items / Prior period items / Ordinary Activity: (i) Non-provision for salary already due in earlier year. (ii) Attachment of the property of the enterprise. (iii) Introduction of new pension scheme for employees. (iv) Change in Reserve for obsolete inventory. (v) Settlement of litigation case. (vi) Actual Bad debts exceeds the provision. (vii) Legislative changes having long term retrospective application. (viii) Capitalisation of working capital loan interest. (ix) Change from Cost Molde to Revaluation Model for measurement of carrying amount of PPE. (x) Government sanctioned grant in current year for expenses incurred in previous accounting year. (c) The following particulars are stated in the Balance Sheet of Siddhi Limited as on 31st March, 2022: Particulars(In lakhs) Deferred Tax Liabilities (Cr.)2.50 Deferred Tax Assets (Dr.)1.35 The following transactions were reported during the year 2022-23: in lakhs (i) Depreciation as per accounting records15.00 (ii) Depreciation as per income tax records20.00 (iii) Interest paid to NBFC accounted in books on accrual basis but paid on 30.06.20236.00 (iv) Items disallowed for tax purposes in 2021-22 but allowed in 2022-231.05 (v) Donation to Private Trust40.00 (vi) Tax rate15% (vii) There were no additions to fixed assets during the year. You are required to calculate the Deferred Tax Asset and Deferred Tax Liability as on 31-03-2023 as per AS-22. (d) Garnet Limited has 4 operating segments. The total revenue (internal and external) and assets are set out as below: SegmentInter Segment SalesExternal SalesTotal Assets Fan3,20010,90023,700 Light2001,40013,200 Lamp01,5004,200 Printer1,1002003,400 TOTAL4,50014,00044,500 How many reportable segments does Garnet Limited have as per the Revenue and Assets criteria given in AS 17? State Reasons for your answer. (5 Marks x 4 Parts = 20 Marks)
Sub-questions (4)
Sapphire Limited earned Net profit of ₹39,00,000 and ₹59,40,000 for the years 2021-22 & 2022-23 respectively. The following information were given for 2022-2023: (i) The company declared Rights issue of two new shares for each five outstanding shares. (ii) 4,00,000 shares were outstanding prior to Rights issue. (iii) Rights issue price was ₹27.50 and the last date to exercise rights was 1stJuly, 2022. (iv) Fair value of one equity share immediately prior to exercise of rights on 1st July,2022 was ₹143. You are required to Compute Basic Earnings Per Share as per AS-20: (i) For the year 2021-22, and (ii) For the year 2022-23
The accountant of Beryl Limited has asked you to identify the following items as – Change in Accounting Policies / Change in Accounting Estimates / Extraordinary Items / Prior period items / Ordinary Activity: (i) Non-provision for salary already due in earlier year. (ii) Attachment of the property of the enterprise. (iii) Introduction of new pension scheme for employees. (iv) Change in Reserve for obsolete inventory. (v) Settlement of litigation case. (vi) Actual Bad debts exceeds the provision. (vii) Legislative changes having long term retrospective application. (viii) Capitalisation of working capital loan interest. (ix) Change from Cost Molde to Revaluation Model for measurement of carrying amount of PPE. (x) Government sanctioned grant in current year for expenses incurred in previous accounting year.
The following particulars are stated in the Balance Sheet of Siddhi Limited as on 31st March, 2022: Particulars(In lakhs) Deferred Tax Liabilities (Cr.)2.50 Deferred Tax Assets (Dr.)1.35 The following transactions were reported during the year 2022-23: in lakhs (i) Depreciation as per accounting records15.00 (ii) Depreciation as per income tax records20.00 (iii) Interest paid to NBFC accounted in books on accrual basis but paid on 30.06.20236.00 (iv) Items disallowed for tax purposes in 2021-22 but allowed in 2022-231.05 (v) Donation to Private Trust40.00 (vi) Tax rate15% (vii) There were no additions to fixed assets during the year. You are required to calculate the Deferred Tax Asset and Deferred Tax Liability as on 31-03-2023 as per AS-22.
Garnet Limited has 4 operating segments. The total revenue (internal and external) and assets are set out as below: SegmentInter Segment SalesExternal SalesTotal Assets Fan3,20010,90023,700 Light2001,40013,200 Lamp01,5004,200 Printer1,1002003,400 TOTAL4,50014,00044,500 How many reportable segments does Garnet Limited have as per the Revenue and Assets criteria given in AS 17? State Reasons for your answer.