ABC Ltd. manufactures and sells healthcare products, and food and grocery products. (i) Three products namely A, B & C are manufactured. Product…

ABC Ltd. manufactures and sells healthcare products, and food and grocery products. (i) Three products namely A, B & C are manufactured. Product A is classified as healthcare product and product B & C are classified as food and grocery products. Products B & C are similar products. Discrete financial information is available for each manufacturing locations and for the selling activity of each product. There are two-line managers responsible for manufacturing activities of products A, B & C. Manager X manages product A and Manager B manages products B & C. The operating results of health care products (product A) and food and grocery products (products B & C) are regularly reviewed by the CODM. (ii) ABC Ltd provides you the following information: Raw material stock holding period : 3 months Work-in-progress holding period : 1 month Finished goods holding period : 5 months Debtors collection period : 5 months The trade payables of the Company are paid in 12.5 months. (iii) ABC Ltd. owns 30% of the share capital of XYZ Ltd. and has the ability to exercise significant influence over it. XYZ Ltd. holds the following investments: 70% of the share capital of its subsidiary, PQR Ltd.; and 30% of the share capital of LMN Ltd., with the ability to exercise significant influence. ABC Ltd. transacts with PQR Ltd. and LMN Ltd. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 1 to 4 in line with relevant Ind AS: