PRACTICE KIT

CFAP 1: ADVANCED ACCOUNTING AND FINANCIAL REPORTING

CHAPTER 20: CONSOLIDATION CASH FLOWS

Rs.000 Rs.000
8% Loan notes 6,900 6,900
10% Unsecured loan notes - 990
6,900 7,890
(3) Current liabilities
Year 4 Year 3
Rs.000 Rs.000
Accounts payable 6,422 6,219
Income tax 2,950 2,400
9,372 8,619

You are provided with the following additional information:

Interest on the 8% loan note is payable half-yearly on 30 September and 31 March.
Income tax is payable nine months after the year-end.
Dividends of Rs. 2.1m and Rs. 2.4m were proposed for Year 3 and Year 4 respectively

During the year, the Grape Group acquired 100% of the ordinary share capital of Pip. The purchase was
financed by Rs. 346,000 in cash and the issue of 54,000 ordinary shares of Rs. 1 each. The ordinary shares had
a market value of Rs. 152,000. The following figures related to Pip at the date of acquisition:

Rs.000
Property, plant and equipment 315
Inventory 139
Receivables 85
Cash at bank and in hand 3
Payables (68)
474
Share capital 180
Reserves 294
474
(4) The share capital consists of Rs. 1 ordinary shares.

Required
Prepare a statement of cash flows and related notes for the Grape Group for the year ended 31 March Year 4.

[ICAP WINTER 2018, Q.5]

7. Vitz Limited (Disposal + Acquisition of Foreign Operation)
Summarised consolidated statement of financial position of Vitz Limited (VL) as at 30 June 2018 is presented
below:
Assets 2018 2017 Equity and liabilities 2018 2017
Rs. in million Rs. in million
Property, plant & equipment 3,678 4,173 Share capital (Rs. 10 each) 2,800 2,500
Goodwill 569 639 Share premium 300 -
Investment in associate 670 - Other group reserves 3,519 2,451
Inventories 1,950 1,050 Non-controlling interest 1,638 874
Trade & other receivables 957 823 Trade & other payables 912 1,630
Cash and bank 1,568 770 Deferred consideration 223 -
9,392 7,455 9,392 7,455

From the desk of Hassnain R. Badami, ACA

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