Aakash Ltd. is a manufacturing company and engaged in the manufacturing of home and industrial appliance products. The company has made considerable…

Aakash Ltd. is a manufacturing company and engaged in the manufacturing of home and industrial appliance products. The company has made considerable growth during last few years as demand of its products has increased substantially. Aakash Ltd. is a diversified group having manufacturing units in different cities of India and other countries. Following information is available in respect of Aakash Ltd. for the year ended on 31 st March, 2026: (1) Aakash Ltd. has two Cash Generating Units viz., CGU '1' and CGU "2" with the carrying value of 80 lakhs and - 120 lakhs respectively. It has a corporate office building having carrying value of 40 lakhs which is not included in the carrying value of CGU '1' and CGU '2'. The recoverable amount, based on Value in use is 72 lakhs for CGU '1' and - 152 lakhs for CGU '2'. (2) Aakash Ltd. is having a plot of land which is vacant and the use of this land is not yet determined. The land is situated in the prime area of the city where lot of commercial complexes are coming up without any legal restriction to convert the land into commercial land. Aakash Ltd. has not yet thought of constructing commercial complex on the land as it is not in its business objectives. Aakash Ltd. has let out this land for the purpose of parking lot for the commercial complexes around. The company has classified this property (land) as investment property. (3) Aakash Ltd. acquired 90% stake in subsidiary Oil Ltd. a few years ago. Aakash Ltd. now sells its entire investment in Oil Ltd. for 2,000 lakhs. The net assets of Oil Ltd. are - 1,500 lakhs and the NCI in Oil Ltd. is 200 lakhs. The cumulative exchange difference that has arisen during Aakash Ltd.'s ownership are gains of 300 lakhs, resulting in Aakash Ltd.'s foreign currency translation reserve in respect of Oil Ltd. having a credit balance of 270 lakhs, while the cumulative amount of exchange differences that have been attributable to NCI is 30 lakhs. (4) In the financial year 2022-2023, Aakash Ltd. obtained a term loan of 25 Crores from DXE Bank. In May 2025, the company availed a fresh loan from BXE Bank to prepay the outstanding facility with DXE Bank. In this process, Aakash Ltd. paid 5,00,000 to DXE Bank to extinguish the old liability as prepayment charges. Additionally, it also paid 1% of the new loan amount to BXE Bank as origination/processing fees. (5) On 1 st October, 2025 Aakash Ltd. subscribes 1,000 convertible preference shares of Hawk Limited at - 100 each. The preference shares are convertible in the ratio of 10: 1 i.e.10 equity shares for each convertible preference share held.On a fully diluted basis, Aakash Ltd. is entitled to 25% stake in Hawk Limited.The agreement stipulates that if Hawk Limited subsequently issues equity shares at a price lower than - 10 per share, the conversion ratio will be adjusted to ensure Aakash Ltd. maintains a 25% stake in Hawk Limited on a fully diluted basis. On the basis of information provided in the above case scenario, you are required to choose most appropriate answer to the below mentioned questions from 1 to 5.