A company is engaged in refining, transportation, and marketing of petroleum products. During the financial year ended 31st March, 2025, it acquired…

A company is engaged in refining, transportation, and marketing of petroleum products. During the financial year ended 31st March, 2025, it acquired a controlling interest in another public sector undertaking from the Government of India at 1,551 per share. The book value and market value of the shares as of 18th February, 2025, were - 192.58 and 876 per share, respectively. The company paid a strategic premium of 675 per share due to various tangible and intangible factors. The company classified the acquired shares as long-term strategic investments and accounted for them at cost, i.e.,1,551 per share, in its financial statements. No provision for diminution in value was made. However, Schedule III of the Companies Act, 2013, requires the aggregate market value of quoted shares to be disclosed, and this has been reflected. On 28th March, 2025, the market price of the acquired shares was 880 per share. By 18th July, the price had dropped to 300. Management believes that the decline in value is not permanent, given the strategic and synergy benefits expected, and hence, no provision for diminution has been made. Based on the information given in above Case Scenario, answer the following Question No. 10-14