Liabilities Rs. Assets Rs. Share Capital: Equity Share Capital 10,00,000 Fixed Assets: (12,00,000 + 8,00,000 19,05,833 Reserves and Surplus. Unrealised Profits 94,167) -General Reserve 4,34,167 Investments Profit & Loss Account 1,64,463 (6,00,000 -5,30,000 2,00,000) 2,70,000 -Capital Reserve on Consolidation 2,05,203 Current Assets Minority Interest: 92,000 Sundry Debtors (3,00,000 + 2,00,000) 5,00,000 Loan Funds : (3,00,000+ 4,00,000) 7,00,000 Stock in Trade (4,00,000 + 3,00,000) 7,00,000 Current Liabilities: Cash at Bank (1,00,000 + 1,00,000) 2,00,000 Sundry Creditors (4,00,000+ 2,00,000) 6,00,000 Provision for Tax (1,00,000 + 80,000) 1,80,000 Proposed Dividend (Hema Ltd.) 2,00.000 Total 35,75,833 Total 35,75,833 Note: Unrealised Profit on Sale of Machinery has been eliminated fully from Group Reserves as it relates to Deconstream Activity (e. Holding to Subsidiary). a 48 . 1. 15 - G. CHAIN HOLDINIG Illustration 24: Chain Holding - Multiple Subsidiaries - 100% Subsidiary P Ltd. purchases its raw materials from H Ltd. and sells goods to Q Ltd. In order to ensure regular supply of raw materials and patronage for finished goods, P Ltd. through its wholly owned subsidiary, G Ltd. acquires on 31.03.2009,51% of Equity Capital of H Ltd. for Rs.15 Crores and 76% of Equity Capital of QLtd. for Rs 30 Crores. GLtd. was floated by P Ltd. in 2000 from which date it was wholly owned by P Ltd. The following are the Balance Sheets of the four companies as at 31.3.2009 (Rs. Crores) Particulars P Ltd. G Ltd. H Ltd. Ltd. SOURCES OF FUNDS Shareholders Funds Equity (Fully paid) Rs.10 each 25 5 10 15 Reserves and Surplus 75 20 20 100 25 25 35 2. Loan Funds: Secured Loans 15 5 20 Unsecured Loans 10 50 10 15 25 50 15 35 Total Sources of Funds 125 75 40 70 APPLICATION OF FUNDS: 1. Fixed Assets: Cost 60 15 30 Less: Depreciation 35 7 17 25 2. Investments at Cost in Fully paid Equity Shares of: Giri Ltd. 5 Hari Ltd. 15 Pari Ltd. 30 Other Companies (Market Value Rs.116 Crores) 29 Net Current Assets: Current Assets 74 Less: Current Liabilities 105 1 96 200 10 143 95 1 32 57 Total Application of Funds 125 75 40 70 There are no inter-company transactions outstanding between the Companies. Prepare Consolidated Balance Sheet as at 31.03.2009 -- 8 13 -- - 3. 5 64