Illustration 8. (a) Arrange and redraft the following Cash Flow Statement in proper order keeping in mind the requirements of AS 3: Rs. (in lacs) Rs.lin lacs) Net Profit 60,000 Add: Sale of Investments 70,000 Depreciation on Assets 11,000 Issue of Preference Shares 9,000 Loan raised 4,500 Decrease in Stock 12,000 1,66,500 a53 Less : Purchase of Fixed Assets 65,000 Decrease in Creditors 6,000 Increase in Debtors 8,000 Exchange gain 8,000 Profit on sale of investments 12,000 Redemption of Debenture 5,700 Dividend paid 1,400 Interest paid 945 1,07,045 59,455 Add: Opening cash and cash equivalent 12,341 Closing cash and cash equivalent 71,796 (b) P Ltd. has 60% voting right in Q Ltd. Q Ltd. has 20% voting right in RLtd. Also, P Ltd. directly enjoys voting right of 14% in RLtd. R Ltd. is a listed company and regularly supplies goods to P Ltd. The management of R Ltd. has not disclosed its relationship with P Ltd. How would you assess the situation from the viewpoint of AS 18 on Related Party Disclosures? (e) Lessee Ltd. took a machine on lease from Lessor Ltd., the fair value being Rs.7,00,000. The economic life of the machine as well as the lease term is 3 years. At the end of each year Lessee Ltd. pays Rs.3,00,000. Guaranteed Residual Value (GRV) is Rs. 22,000 on expiry of the lease. Implicit Rate of Return (IRR) is 15% p.a. and present value factors at 15% are 0.869, 0.756 and 0.657 at the end of first, second and third years respectively Calculate the value of machine to be considered by Lessee Ltd. and the interest (Finance charges) in each year