Softline Limited gives you the following balance sheet as at 31st March, 2025: Particulars Notes Amount ₹ Equity and Liabilities: Shareholders Fund:…

Softline Limited gives you the following balance sheet as at 31st March, 2025: Particulars Notes Amount ₹ Equity and Liabilities: Shareholders Fund: Share Capital 1 30,00,000 Reserve and Surplus 2 4,00,000 Current Liabilities: Trade Payables 5,00,000 Other Current Liabilities 1,00,000 Total 40,00,000 Assets: Non-current Assets: A Property, plant and equipment 23,00,000 B Intangible assets (Goodwill) 8,00,000 Current Assets: A Inventories 5,00,000 B Trade Receivables 2,00,000 C Cash and Cash Equivalents 2,00,000 Total 40,00,000 Notes to Accounts: 31 st March, 2025 1 Share Capital 2,00,000 Equity Shares of 10 each fully paid up 20,00,000 9% Redeemable Preference Shares of 100 each 10,00,000 2 Reserves and Surplus General Reserve 11,00,000 Profit and Loss Account (Dr. Balance) (7,00,000) Softline Limited had been facing financial difficulties due to past operational inefficiencies, leading to an accumulated debit balance in its Profit and Loss account. It was decided to reconstruct the company for which necessary special resolution was passed in general meeting and approval were obtained from appropriate authorities including NCLT and notify creditors. The following reconstruction scheme was approved and to be executed on 1st April, 2025: The equity shares were reduced from 10 to 6 per share, fully paid up.All the 9% redeemable preference share were reduced to 70 fully paid up.The balance created in Capital Reduction account was utilized to completely write off the accumulated debit balance of Profit and Loss account, and remaining balance was used to write off goodwill. Following the reconstruction, the company revamped its business model and provide you with the following information as on 31st March, 2026; Profit Before Tax (PBT) for the year 2025-26 was - 12,00,000.This profit was arrived after charging depreciation of 2,00,000 on PPEDuring the year, trade receivables increased by - 1,00,000 but inventories, trade payables and other liabilities remained unchanged.The company paid Income tax amounting to 3,00,000 during the year. With sufficient liquidity and a healthy General reserve supplemented by current year profits, the Board of Directors passed the following resolution on 1st April, 2026 which was fully executed on the same day. Redeem the entire outstanding 9% Redeemable Preference Shares at a premium of 5%.Offer buy back of 40,000 Equity shares at a price of 9 per share. Both the redemption and buy back carried out entirely out of free reserves (General reserve and Current year Profit). Based on the information given in the above case scenario, answer the following questions from 11 to 14: