Birds Ltd. and its subsidiary Rooster Ltd provided the following information for the year ended 31/03/2025. Particulars Birds Ltd. (₹) Rooster Ltd.…

Consolidated statement of profit and loss of Birds Ltd. and its subsidiary Rooster Ltd. for the year ended on 31st March, 2025 Particulars Note No. ₹ Revenue from operations 1 38,80,000 Other Income 2 8,33,000 Total revenue (I) 47,13,000 Expenses: Cost of material purchased/consumed 3 10,90,000 Changes (Increase) in inventories of finished goods 4 (6,20,000) Employee benefit expense 5 11,53,000 Other expenses 6 6,55,500 Total expenses (II) 22,78,500 Profit before tax (II-III) 24,34,500 Notes to Accounts Particulars ₹ 1. Revenue from operations Sales and other operating revenues Birds Ltd. 28,40,000 Rooster Ltd. 10,40,000 38,80,000 2. Other Income Dividend income: Birds Ltd. 1,35,000 Less: Dividend received from Rooster Ltd. (2,50,000 × 12%) (30,000) Rooster Ltd. 28,000 1,33,000 Other Non-operating Income Birds Ltd. 2,38,000 Rooster Ltd. 57,000 2,95,000 Rent received Birds Ltd. 5,40,000 Less: Rent received by Birds Ltd. from Rooster Ltd. (11,250 x 12) (1,35,000) 4,05,000 8,33,000 3. Cost of material purchased/consumed Birds Ltd. 9,15,000 Rooster Ltd. 1,75,000 10,90,000 4. Changes (Increase) in inventories of finished goods Birds Ltd. (7,85,000 - 3,35,000) 4,50,000 Rooster Ltd. (2,90,000 -1,20,000) 1,70,000 6,20,000 5. Employee benefits and expenses Salaries: Birds Ltd. 7,75,000 Rooster Ltd. 3,78,000 11,53,000 6. Other expenses General & Administrative expenses: Birds Ltd. 2,81,500 Rooster Ltd. 1,98,000 Less: Rent paid to Birds Ltd. (1,35,000) 3,44,500 Selling and distribution Expenses: Birds Ltd. 2,21,000 Less: paid to Rooster Ltd (15,000) Rooster Ltd. 90,000 Add: Received from Birds Ltd. 15,000 3,11,000 6,55,500 Note: An amount of 15,000 was added under Selling and Distribution Expenses of Rooster Ltd. due to a rectification entry, while - 15,000 was deducted from Birds Ltd. under the same head to account for the set-off of inter-company transactions.