Kaushalya Infrastructure Development Corporation Limited (henceforth, Kaushalya) is a BSE listed company based in Kolkata. The company’s website revealed three lines of business:

1. Kaushalya Nirman: Creation of World Class Highways and industrial Infrastructure.

2. Kaushalya Gram: Electrification and Irrigation of Rural India.

3. Kaushalya Parivar: Construction of Commercial and Residential Complexes.

Keshtho Mukherjee was a Kolkata-based financer of working capital items. He browsed through the FY2010 annual report of Kaushalya to see if they could be his potential customers. Keshtho read the following two big items constituting its working capital:

Case Questions

(a) Given the implementation of the Schedule III of the Companies Act, 2013 and the proposed new format – suggest a new presentation of the above balance sheet items. Is this going to result in more useful for information the investors and fund managers or the other way round – Comment with focus on the implications for Keshtho Mukherjee?

(b) Which accounting standards are relevant for the above two items? Is the company following the same?

(c) What do the relevant IFRS state regarding the above two items. Comment.

(d) Try linking your responses to questions (a) and (c) and summarize your views.

Transcribed Image Text:

Schedule 10: Current Liabilities Sundry Creditors Schedule 7: Sundry Debtors (Trade, Unsecured and considered good) Debts outstanding for a period exceeding six months Other Debts FY2010 226,978,209 61,568,235 518,879,129 580,447,364 FY2009 59,519,582 34,200,621 288,359,679 322,560,300