Following details are given for Monish Ltd. for the year ended 31st March (in Lakhs) Particulars Food Products Plastics & Packaging Health &…

Identification of Reportable Segments (Amounts in Lakhs) Particulars Food Products Plastics & Packaging Health & Scientific Others Total Limit = 10% of Total 1. Segment Revenue External 9,880 1,072 654 354 11,960 Inter-Segment 120 168 36 10 334 Total Revenue 10,000 1,240 690 364 12,294 1,229 2. Segment Expenses 7,170 800 444 400 8,814 3. Segment Result Profit 2,830 440 246 - 3,516 10% of Higher of 3,516 or 36 = 352 (Loss) - - - (36) (36) 4. Segment Assets 15,096 4,000 1,400 1,364 21,860 2,186 5. Reportable Segment Yes Yes No No 6. Criteria Satisfied Revenue, Result & Assets Revenue, Result & Assets Nil Nil Now, we shall check the 75% Principle: Particulars Computation ₹ in lacs (i) Total External Revenue of Reportable Segments (Food Products, Plastic & Packaging) 9,880 + 1,072 10,952 (ii) Total Enterprise Revenue Given 12,294 (iii) Percentage of Revenue (i) ÷ (ii) 89.08% Thus, 75% Principle is satisfied and no other segments need to be reported.