On 3 rd April 2022, ZYX Limited received a State Government grant of 150 lakhs for setting up a Manufacturing Unit in a notified backward area. A…

On 3 rd April 2022, ZYX Limited received a State Government grant of 150 lakhs for setting up a Manufacturing Unit in a notified backward area. A bank loan of 50 lakhs was also obtained on 1 st April 2024. ZYX utilized the grant and loan as under: Particulars ₹ in Lakhs Out of Grant in Lakhs Out of Loan in Lakhs Construction of Factory building 100.00 60.00 30.00 Purchase of Machinery 50.00 40.00 20.00 Advance for purchases of loading vehicle 30.00 30.00 – Working capital 20.00 20.00 – 200.00 150.00 50.00 Construction of Factory Building and Installation of Machinery was completed on 31.03.2025. Delivery of loading vehicle was not received. Total interest charged by bank for the year ending 31.03.2025 was - 5,50,000. The State Government grant was credited to the Deferred Grant Account. Out of the Grant 30 lakhs used for the purchase of Machinery were refunded in March 2025, due to non-compliance with certain Government conditions. The estimated life of Machinery is 4 years with Nil residual value. During the year 2024-2025, the Company also received a subsidy of 8 lakhs from the Central Government for setting up a unit in notified backward area. This subsidy is in the nature of promoters' contribution. During the year 2024-2025, the Company incurred 18 lakhs on publicity and research for a new consumer product, which was marketed in the same year but proved to be a failure. Based on the information given in above Case Scenario, answer the following Question Nos. 5-8: