Question
The following information pertains to the financial statements of Home Dynamics Limited (HDL), a listed company, for the year ended 31 December 2016: (i) Profit
The following information pertains to the financial statements of Home Dynamics Limited (HDL), a listed company, for the year ended 31 December 2016: (i) Profit after tax for the year: Rs. in million Profit from continuing operations net of tax 765 Profit from discontinued operations net of tax 155 Profit after tax 920 (ii) Shareholders equity as on 1 January 2016 comprised of: 10 million ordinary shares of Rs. 10 each, having market value of Rs. 25 each. 4 million cumulative preference shares of Rs. 10 each entitled to a cumulative dividend at 10%. (iii) On 31 March 2016, HDL announced 40% right shares to its ordinary shareholders at Rs. 25 per share. The entitlement date of right shares was 31 May 2016. The market price per share immediately before the announcement date and entitlement date was Rs. 28 and Rs. 32 respectively. (iv) On 2 August 2016, HDL announced 20% bonus issue. The entitlement date of bonus shares was 31 August 2016. (v) On 1 February 2017, the board of directors announced 20% cash dividend and 10% bonus issue being the final dividend to the ordinary shareholders and 10% cash dividend for preference shareholders.
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