V Limited entered into a contract to construct a hostel building for MR College at an agreed price of 224 lakhs on 1 st October, 2024. The expected…

V Limited entered into a contract to construct a hostel building for MR College at an agreed price of 224 lakhs on 1 st October, 2024. The expected completion time is 18 months. V Limited incurred a cost of 60 lakhs up to 31 st March, 2025. Prudent estimate of additional cost for completion was 180 lakhs. As at 31 st March, 2025, V Limited has billed MR College for 84 lakhs as per the agreement. On 1 st June, 2024, V Limited acquired 30% shares of M Limited for a consideration of 20,00,000/-. Such acquisition enables V Limited to exercise significant influence over M Limited. On 14 th August, 2024, M Limited declared a dividend of 5,00,000/- out of the profit of 8,00,000/- earned by it during the year ended 31 st March, 2024. Further, M Limited reported earnings of 30,00,000/- for the year ended 31 st March, 2025 (assume profits to accrue evenly) and declared dividend of 6,00,000/- on 15 th June, 2025. V Limited has reported a pre-tax Profit of 7,00,000/- in the first quarter of Financial Year 2024-25 and - 8,00,000/- during the second quarter of Financial Year 2024-25. Further it expects to earn a pre-tax profit of 4,00,000/- and - 6,00,000/- during the third and fourth quarters respectively of Financial Year 2024-25. It has a corporate tax slab rate of 30% on the first - 5,00,000/- earnings and 40% on all additional earnings. The following information has been provided by V Limited for deferred tax assets/liability as at 31 st March, 2025: Particulars Amount (₹) Depreciation as per Accounting Records 4,00,000 Depreciation allowable under Section 32 of the Income Tax Act, 1961 10,00,000 Unamortized Preliminary Expenses as per Tax Records 30,000 Penalty imposed by GST Department on 30 th March, 2025, payable by 30 th April, 2025 1,25,000 On the basis of information provided above, you are required to choose the most appropriate answer to the below mentioned Questions 6 to 9 in line with the relevant Accounting Standards: