On 1 January 2020, Dargent Co acquired 75% of Latree Cos equity shares by means of a share exchange of two shares in Dargent CO for every three Latree Co share acquired. On that date, further consideration was also issued to the shareholders of Latree Co in the form of a R100, 8% loan note for every 100 shares acquired in Latree Co. None of the purchase consideration , nor outstanding interest on the loan notes on March, has been recorded by Dargent Co.

The summarized statement of Financial position of the two companies as at 31 March 2020 are:

	Dargent Co R 000	Latree Co R 000
Assets Non-Current Assets:
Property, Plant & Equipment (note i)	75,200	31,500
Investment in Amery Co at 1 April 2019 (note iv)	4,500	nil
	79,700	31,500
Current Assets
Inventory (note iii)	19,400	18,800
Trade Receivables (note iii)	14,700	12,500
Bank	1,200	600
	35,300	31,900
TOTAL ASSETS	115,00	63,400
Equity & Liabilities
Equity shares of R1 each	50,000	20,000
Retained earnings at 1 April 2019 -for the year ended 31 March 2020	20,000 16,000	19,000 8,000
	86,000	47,000
Non-Current Liabilities
8% Loan Notes	5,000	NIL
Current Liabilities (note iii)	24,000	16,400
TOTAL EQUITY & LIABILITIES	115,000	63,400

The Following information is relevant:

1. At the date of acquisition, the fair values of Latree Cos Assets were equal to the carrying amounts. However, Latree Co-operates a mine which requires to be decommissioned in five years time. No provision had been made for these decommissioning costs of Latree Co. The present value (discounted at 8%) of the decommissioning is estimated at R4m and will be paid five years from the date of acquisition (at the end of the mines useful life).
2. Dargent COs policy is to value the non-controlling interest at the fair value at the date of acquisition. Latree Cos share price at that date can be deemed to be representative of the fair value of the shares held by the non-controlling interest.
3. The inventory of Latree Co includes goods bought from Dargent Co for R2.1m. Dargent CO applies a consistent mark-up on cost of 40% when arriving at its selling prices. On 28 March 2020, Dargent CO dispatched goods to Latree Co with the selling price of R700,000. These were not received by Latree CO until after the year-end, and so have not been included in the above inventory at 31 March 2020. At 31 March 2020, Dargent Cos records showed a receivable due from Latree CO of R3m. This differed to the equivalent payable in Latree Cos records due to the goods in transit. The intra-group reconciliation should be achieved by assuming that Latree Co had received the goods in transit before year end.
4. The investments in Amery Co represents 30% of its voting share capital and Dargent Co uses equity accounting to account for this investment. Amery Cos profit for the year ended 31 March 2020 was R6m and Amery Co paid total dividends during the year ended 31 March 2020 of R2m. Dargent CO has recorded its share of the dividend received in Amery Co in investment income (and cash).
5. All profits and losses accrued evenly throughout the year
6. There were no impairment losses within the group for the year ended 31 March 2020.
7. On 31 March 2020, the share prices of Dargent OC and Latree Co are R3.50 and R2.00 respectively while on 1 January 2020, the share prices of Dargent CO and Latree Co were R3.20 and R1.80 respectively.

Required:

Prepare the Consolidated Statement of Financial position for Dargent Co and its Subsidiaries as at 31 March 2020. (25 Marks)