it please correctly On 1st April, 2017 Good Time Limited purchased some land for Rs.1.5 crore (including legal cost of Rs.10 lakhs) for the purpose of constructing a new factory. Construction work commenced on 1st May, 2017. Good Time Limited incurred the following costs in relation to its construction. Rs. Preparation and levelling of the land 4,40,000 Purchase of materials for the construction 92,00,000 Employment costs of the construction workers (per month) 1,45,000 Overhead costs incurred directly on the construction of the factory (per month) 1,25,000 Ongoing overhead costs allocated to the construction project (using the company's normal overhead allocation model) per month 75,000 Costs of relocating employees to work at new factory 3,25,000 Costs of the opening ceremony on 1st January, 2018 2,50,000 Income received during the temporary use of the factory premises as a store during the construction period. 60,000 The construction of the factory was completed on 31st December, 2017 and production began on 1st February, 2018. The overall useful life of the factory building was estimated at 40 years from the date of completion. However, it is estimated that the roof will need to be replaced 20 years after the date of completion and that the cost of replacing the roof at current prices would be 25% of the total cost of the building. At the end of the 40 years period, Good Time Limited has a legally enforceable obligation to demolish the factory and restore the site to its original condition. The company estimates that the cost of demolition in 40 year's time (based on price prevailing at that time) will be Rs.3 crore. The annual risk adjusted discount rate which is appropriate to this project is 8%. The present value of Rs.1 payable in 40 years time at an annual discount rate of 8% is 0.046. The construction of the factory was partly financed. by a loan of Rs.1.4 crore taken out on 1st April, 2017. The loan was at an annual rate of interest of 9%. During the period 1st April, 2017 to 30th September, 2017 (when the loan proceeds had been fully utilized to finance the construction), Good Time Limited received investment income of Rs.1,25,000 on the temporary investment of the proceeds. You are required to compute the cost of the factory and the carrying amount of the factory in the Balance Sheet of Good Time Limited as at 31st March, 2018. (8 Marks) M Ltd. is setting up a new factory outside the Delhi city limits. In order to facilitate the construction of the factory and its operations, M Ltd. is required to incur expenditure on the construction / development of electric-substation. Though M ltd. incurs (or contributes to) the expenditure on the construction / development, it will not have ownership rights on these items and they are also available for use to other entities and public at large. Whether M Ltd. can capitalise expenditure incurred on these items as property, plant and equipment (PPE)? If yes, how should these items be depreciated and presented in the financial statements of M Ltd. as per Ind AS