RTS Ltd, (“RTS” or the “Company”), is engaged in the business of manufacturing of urea, has set up its business in a designated backward area which…

RTS Ltd, (“RTS” or the “Company”), is engaged in the business of manufacturing of urea, has set up its business in a designated backward area which entitles the company to receive from the Government of India a subsidy of 20% of the cost of investment of manufacturing of equipments/components. The Company has a contract with the Indian Railways for a brake component which is structured such that: The Company's obligation is to deliver the component to the Railways' stockyard, while the delivery terms are ex-works, the Company is responsible for engaging a transporter for delivery.Railways sends an order for a defined quantity.The Company manufactures the required quantity and informs Railways for carrying out the inspection.Railways representatives visit the Company's factory and inspect the components, and mark each component with a quality check sticker.Goods once inspected by Railways, are marked with a hologram sticker to earmark for delivery identification by the customer when they are delivered to the customer's location.The Company raises an invoice once it dispatches the goods. The management of RTS is under discussion with the auditors of the Company in respect of accounting of a critical matter as regards its accounting with respect subsequent events i.e. events after the reporting period. They have been checking as to which one of the following events after the reporting period provide evidence of conditions that existed at the end of the reporting period? Nationalisation or privatization by governmentOut of court settlement of a legal claimRights issue of equity sharesStrike by workforceAnnouncing a plan to discontinue an operation The Company has received a grant of 8 crores from the Government for setting up a factory in a backward area. Out of this grant, the Company distributed 2 crores as dividend. The Company also received land, free of cost, from the State Government but it has not recorded this at all in the books as no money has been spent. RTS has a subsidiary, LPP Media & Creations Ltd (LPP), an advertising agency which prepares and publishes advertisement in newspapers on behalf of its clients. LPP invoices its clients for the commission they are entitled to as well as the media space payable to the newspaper. Based on the above information, answer the following questions.