Tara Ltd. is engaged in mining and many other industries and prepares its financial statements following Indian Accounting Standards and follows…

Tara Ltd. is engaged in mining and many other industries and prepares its financial statements following Indian Accounting Standards and follows April- March as their financial year. During the year 2023-2024, the Company has faced some issues and for their solution seeks your professional advice. (i) Tara Ltd. and Zara Ltd. are partners of a joint operation engaged in the business of mining precious metals. The entity uses a jointly owned drilling plant in its operations. During the year ended 31st March, 2024, an inspection was conducted by the government authorities in the mining fields. The inspection authorities concluded that adequate safety measures were not followed by the entity. As a consequence, a case was filed and a penalty of 100 crores has been demanded from Tara Ltd. on 1st September, 2023. The legal counsel of the company has assessed the demand and opined that appeals may not be useful, and the appeal orders will be unfavourable to the joint arrangement. As per the terms of the joint operations agreement, out of 100 crores (to be paid by Tara Ltd.),60 crores will be reimbursed by Zara Ltd. to Tara Ltd within three months from the date of any demand made in respect of joint operations by any government authorities. However, till the year end, actual reimbursement was not received from Zara Ltd. (ii) On 1st April, 2023, Tara Ltd. leased a machine from Dara Ltd. on a three year lease. The expected future economic life of the machine on 1st April, 2023 was eight years. If the machine breaks down, then under the terms of the lease, Dara Ltd would be required to repair the machine or provide a replacement. Dara Ltd agreed to allow Tara Ltd. to use the machine for the first six months of the lease without the payment of any rent as incentive to Tara Ltd. to sign the lease agreement. After this initial period, lease rentals of 4,20,000 were payable six monthly in arrears, the first payment falling due on 31st March, 2024. (iii) Tara Ltd. has invested in debentures whose interest rate is floating in nature and as per terms of the instrument, interest will be reset every month. As per terms, rate of interest is MIBOR plus 2%. (iv) On 1st January, 2024, Tara Ltd. took a contract for installation of new elevator at a factory of its customer. The entity estimates the following with respect to the contract: Particulars Amount (₹) Transaction price 30,00,000 Expected costs: (a) Elevators 10,00,000 (b) Other costs 12,00,000 Total 22,00,000 It purchased the elevator and delivered the same to the site six months before it is required for installation. The entity uses an input method based on cost to measure progress towards completion. Tara Ltd. has incurred actual other costs of 3,00,000 by 31st March, 2024. (v) Tara Ltd. has classified its business in 5 operating segments namely A, B, C, D and E. The profit/(loss) of respective segments for the year ended 31st March, 2024, are as follow: Segment Profit/ (Loss) (₹ in lakhs) A 1,280 B 2,624 C (280) D 315 E (2,620) Total 1,319 On the basis of the information provided above, you are required to choose the most appropriate answer to the below-mentioned questions 1 to 5 in line with the relevant Ind AS: