A Ltd. is a diversified business group operating in multiple business segments across different parts of the world. It maintains its books of…

A Ltd. is a diversified business group operating in multiple business segments across different parts of the world. It maintains its books of accounts and publishes its annual consolidated financial statements under Indian Accounting Standards. The central finance team has been working on closing the books of accounts and generating consolidated financial statements for the year ended 31st March 20X3. You are the Finance Controller and your assistants want your views on following transactions for finalization of financial statements: (i) B Ltd., one of the subsidiaries of A Ltd., reported net income of 25 lakhs, which equals the company's comprehensive income. The company has no outstanding debt. Following is the information from the comprehensive balance sheet (in lakhs) related to cash flows: Extract of Balance Sheet 31.03.20X2 31.03.20X3 Equity share capital 100 100 Further issue of equity shares 100 140 Retained earnings 100 115 Total shareholders' equity 300 357 (ii) A Limited also operates in the travel industry and incurs costs unevenly through the financial year. Advertising costs of 40 lakhs were incurred on 1st July 20X2, and staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around 400 lakhs for the year; of that a sum of 60 lakhs would relate to the period ending 30th September 20X2. (iii) An item of equipment X was acquired by A Ltd. on 1st April 20X1 for 1,00,000 having an estimated useful life of 10 years, with a residual value of zero. The asset is depreciated on a straight-line basis. The asset was revalued to 1,04,000 on 31st March 20X3. (iv) A Ltd. has spent - 15,00,000 in developing a new product during the year ended 31st March, 20X3. The development costs incurred were recognised as an intangible asset as per Ind AS 38. For the purposes of computing the taxable income, these expenses are allowable in full in the year of incurring the expenses. At the year end, the Company recognised an impairment loss of 75,000 against the intangible asset. (v) The company has issued preference shares that are redeemable at the option of the holder. Three months before the end of the year, it was probable that the holders would require redemption.