XYZ Ltd. prepares its financial statements as per Ind AS. The management requires your assistance in following cases: (i) XYZ Ltd. originates 2,000…

XYZ Ltd. prepares its financial statements as per Ind AS. The management requires your assistance in following cases: (i) XYZ Ltd. originates 2,000 bullet loans with a total gross carrying amount of 5,00,000. XYZ Ltd. segments its portfolio into borrower groups (Groups X and Y) on the basis of shared credit risk characteristics at initial recognition. Group X comprises 1,000 loans with a gross carrying amount per client of 200, for a total gross carrying amount of 2,00,000. Group Y comprises 1,000 loans with a gross carrying amount per client of 300, for a total gross carrying amount of 3,00,000. There are no transaction costs, and the loan contracts include no options, premiums or discounts, points paid, or other fees. Additional information Group Historic per annum average defaults Present value of observed loss assumed X 4 600 Y 2 450 (ii) XYZ Ltd. has invested in 40% share capital of N Ltd. and hence N Ltd. is an associate of XYZ Ltd. During the year, N Ltd. sold inventory to XYZ Ltd. for a value of 10,00,000. This included profit of 10% on the transaction price i.e. profit of 1,00,000. Out the above inventory, XYZ Ltd. sold inventory of 6,00,000 to outside customers. Hence, the inventory of 4,00,000 purchased from N Ltd. is still lying with XYZ Ltd. (iii) XYZ Ltd. has also invested in 40% share capital of A Ltd. and hence A Ltd. is also an associate of XYZ Ltd. XYZ Ltd. sold the inventory to A Ltd. for a value of 10,00,000. This included profit of 10% on the transaction price i.e. profit of 1,00,000. Out the above inventory, A Ltd. sold inventory of 6,00,000 to outside customers. Hence, the inventory of 4,00,000 purchased from XYZ Ltd. is still lying with A Ltd. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 9 to 13 in line with relevant Ind AS: