Health Guard PLC is a pharmaceutical company who manufactures and imports and sell affordable, high-quality, pharmaceuticals to ensure that anyone, anywhere has access to life saving drugs they need , the registered office is situated Address. No 20/5, Kirimandala Mawatha Nawala, Rajagiriya Sri Lanka.

The following trial balance was extracted from the books of Health Guard PLC as at 31st March 2021.

Health Guard PLC

Trial Balance as at 31st March 2021 (Rs.'000)

	Dr.	Cr.
Stated Capital (900,000 ordinary shares)		90,000
Retained Earnings as at 01st April 2020		17,000
Property Plant and Equipment at Cost:
Land	55,000
Buildings	32,000
Plant and Machinery	14,000
Motor Vehicles	10,000
Office Equipment	7,200
Capital work-In-Progress	16,000
Accumulated Depreciation as at 01st April 2020
Buildings		15,000
Plant and Machinery		6,000
Motor Vehicles		5,500
Office Equipment		3,500
Pre-payments	1,650
Payments made to Health Care Research Ltd.	2,500
Inventory as at 31st March 2021	32,500
Trade Receivables / Trade Payables	41,000	37,000

Gratuity Provision		20,500
Cash in Hand and Cash at Bank	16,500
Income Tax Paid	2,750
Interim Dividend Paid - Ordinary Shares	9,000
Cost of Sales / Sales	269,400	378,500
Administration Expenses	46,000
Distribution Expenses	29,500
Finance Expenses	500
Provision for doubtful debts of Trade Receivables as at 01st April 2020		500
Bank Loan		12000
	585,500	585,500

The following additional information is also provided:

(1) Inventory held as at 31st March 2021 included obsolete stock of Rs.700,000/- at cost. This was sold for Rs.250,000/- on 05th April 2021 to a buyer incurring Rs.20,000/- for transporting these stocks to the buyers location. No entries were made in this regard yet.

(2) The company has revalued its land to Rs.60 million on 31st March 2021. This has not been recorded in the books of accounts.

(3) On 01st July 2020, the company acquired a new machinery and purchase cost of Rs.3,500,000/- has been recorded under the purchase account. In addition to that the company has incurred further Rs.500,000/- on the same date for installation and testing the machine and this was recorded under the administration Expenses.

(4) During the year, a research was done for a new product and the company has paid Rs.2,500,000/- to Health Care Research Ltd. for that purpose. This has been debited to payments to Health Care Research Ltd. account. The company started commercial operation of the new product in April 2021.

(5) The company obtained Rs. 12 million bank loan at an interest rate of 12% per annum on 01st January 2021 to construct a new factory building. No capital repayments were made during the year and interest for the year has been accounted under the finance expenses of the bank loan should be settled in 2021/22. Construction of the factory building was commenced on 01st January 2021 and it is expected to complete by 30th September 2022. Cost incurred on construction was recorded under the capital work-in-progress account.

(6) Depreciation of Property, Plant and Equipment is calculated on the straight line basis at cost. The useful life of Property, Plant and Equipment is as follows:

Buildings : 20 years

Plant and Machinery : 10 years

Motor Vehicles : 05 years

Office Equipment : 10 years

(7) The income Tax Liability of the company for the year of assessment 2020/2021 has been estimated to Rs.2,950,000/-.

(8) On 31st March 2021, it was noticed that a customer owing Rs. 2 million has been missing. The company is not in a position to recover the amount due from him and it has become irrecoverable. Further a general provision has to be made at 2% of the remaining trade receivable balance as at 31st March 2021.

(9) Electricity bill for March 2021 of Rs.700,000/- has not been recorded in the books of accounts.

(10) The Board of Directors of the company decided to pay Rs.5/- per share as the final dividend for ordinary shares held on 31st March 2021 at the board meeting held on 02nd May 2021

(11) The Financial Statements were authorized for issue by the Board of Directors on 20th June 2021.

Considering the above information,

You are required to prepare the following, for Health Guard PLC in a form suitable for publication:

(a) Statement of Profit or Loss and Other Comprehensive Income (Statement of Comprehensive Income) for the year ended 31st March 2021.

(b) Statement of Financial Position as at 31st March 2021. (30 marks) (c) Statement of Changes in Equity for the year ended 31st March 2021.

(d) Statement showing movement of Property, Plant and Equipment for the year ended 31st March 2021.