 How's we live in a shaitanya regime? Bismillahir Rahmanir Rahim. We are going to start group accounts and having more than two companies. So you will see when we have more than two companies then we have to decide which company is a parent company, which company is a subsidiary and which is sub subsidiary or which is if there is any associates we have to work out at which companies. Let's see the group accounts first of all. Now let's see A limited acquired 80% of the equity share capital of B limited. So here it's clear that A is holding of B having 80% share and again another important thing in this question is that it was acquired on 1st July not on the 1st of January but in the during the year. So that is another important thing. If it is during the year then your profit will start from this date onward. Your sales will start, costs will start from this way onward and 75% equity of C limited several years ago. So A has 80% in B and C also that is 75%. So for C is concerned that is already in their books as a subsidiary. So the problem will be with B, how we have to incorporate B. It is already happening because in the last year its accounts were made. This year we will see what is the B added in it. A limited sold goods to C limited, enraised at 10 million including a markup of 20%. Markup means I have explained a lot that this is cost plus. So if this is 100 then markup of 20% will be sale price 125. So if we look at the profit margin, we get 20% on sales and goods remain in inventory at the end. C doesn't have these things yet, it is in the group only. So the unrealised profit will have to be adjusted. B limited sold goods to A, B has sold A at a 5 million and include a markup of 25% again the same markup 25% and all these goods occurred, sales occurred after the acquisition and half of the goods remain in inventory at the end. Now look at this, half of the goods are not complete. The 50% of the profit will be unrealised. So we have to adjust the calculation. Now required by simply a consolidated income statement of A limited for the year ended 31st December 2020. So once again I remind you that since B is acquired on 1st of July, so B's share of sales, cost, expenses will be half year, proportionate because we assume in consolidation that the reporting means simply that is even the throughout the year, means every month is almost the same because you have to take this assumption otherwise it is not necessary that in the first 6 months there will be some other sales and in the next 6 months there will be not so many sales but you have to assume that it is evenly throughout the year. Now look at the statement of profit given last 3 years, A, B, C. Revenues are kept small in fact you can say that this is in thousands or millions, so I have written it in millions but you consider it to be 200 or 240 or 800 B.C. Cost of sales minus loss profit, operating expense, the other detail is not in the operating expense your selling advance is included, operating profit and after that income tax or profit for the year. Now you note that in this question we have done nothing in the last years profit and last count we have seen. Now let's see the solution it's not something difficult, working when it is said that A has 200,000 in this the sales has reduced from 10 million to 190. Similarly B's sales is 240 but we have to take half of it, 120 and in this 5 million unrealized profit has reduced to 150, there is no change in the C. So if the cost of goods sold is concerned because you have to minus the cost of the sale from this side so double entry is done, we credit the sales and we debit the cost of goods sold So it's 160 divided by 2 again, cost of goods sold for half a year and 50 minus 10, the unrealized profit is 10 so that is 40 so the cost has come and this is the unrealized profit figure, 2.5 and you can see from there, so we took 2.5 and took 50% of it and got 2.5 total, total unrealized profit is 2.5 Now operating expense is simple, A is complete but B is again 50% and C is 32 as it is, you can see in the income tax, A is complete tax but B is half and C is complete, so your 23 and net profit has come Now the working of holding and the working of non-current interest I have done this in detail but here also you can see in holding, the profit of this last count is 40 We took 40 of B, minus the unrealized profit we took 37.5, after that we took half of B profit like this we took 75% of C, in non-current interest B is 20% so we didn't take 20% of 40, but half of 40 This is important but you have to see that at every stage you have to see that you have acquired this company in July and after that it is 30% and 25% so your working is done and you can see in the future we took the sales figure from there and also the cost figure from there and the unrealized profit of 2.5 and gross profit and after that operating profit, expense is 77 and operating profit is 110.5 Income tax is also there and net profit is also there held in ALEM and non-current, non-controlling interest and 2 consolidators profit and last account So basically the idea was in this question that you have to see that if the company is half way through the year maybe 6 months or 9 months you have to take its expense from that proportion you have to take its sales from that proportion so that's how it should be added on but try to define the structure first because the most important thing in consolidation is that you have to first see what is the structure of the Guru that is the most important thing then secondly you have to see which date you have acquired and thirdly you have to see that if the company is running from the beginning then what are the pre-acquisition profits of that date and after that comes that if there are adjustments then which one can be, we have discussed a lot and we will discuss further, there is no limit to adjustments you will see number of adjustments so thank you very much, we will see further