Question 3 (a) GB Limited acquired 80% of equity shares of TB Limited on 1st April,2016 at a cost of ₹58,00,000 when TB Limited had an Equity share capital of ₹50,00,000 and Reserves and Surplus of ₹4,64,000. The following information is provided: YearProfit /(Loss) of TB Limited (₹) 2016-17(14,50,000) 2017-18(23,20,000) 2018-19(29,00,000) 2019-20(6,96,000) 2020-211,90,000 2021-226,80,000 2022-2312,70,000 You are required to calculate the minority interests and cost of control at the end of each year for the purpose of consolidation. (b) The Reserve Bank of India (RBI) has introduced a revised regulatory framework for Non- Banking Financial Companies (NBFCs), effective from October 01, 2022, named ‘Scale Based Regulation' (SBR) to regulate the NBFCs based on their size, activity, complexity and interconnectedness within the financial sector. The regulatory structure for NBFCs shall comprise of four layers based on their size, activity, and perceived risks. Briefly explain the four layers. (15 + 5 = 20 Marks)
Sub-questions (2)
GB Limited acquired 80% of equity shares of TB Limited on 1st April,2016 at a cost of ₹58,00,000 when TB Limited had an Equity share capital of ₹50,00,000 and Reserves and Surplus of ₹4,64,000. The following information is provided: YearProfit /(Loss) of TB Limited (₹) 2016-17(14,50,000) 2017-18(23,20,000) 2018-19(29,00,000) 2019-20(6,96,000) 2020-211,90,000 2021-226,80,000 2022-2312,70,000 You are required to calculate the minority interests and cost of control at the end of each year for the purpose of consolidation.
The Reserve Bank of India (RBI) has introduced a revised regulatory framework for Non- Banking Financial Companies (NBFCs), effective from October 01, 2022, named ‘Scale Based Regulation' (SBR) to regulate the NBFCs based on their size, activity, complexity and interconnectedness within the financial sector. The regulatory structure for NBFCs shall comprise of four layers based on their size, activity, and perceived risks. Briefly explain the four layers.