The following are excerpts from the Annual Report of Marico Industries for the financial year ended 31 March, 2003.

During the year, the Company’s shareholders approved a scheme of re-organization of Capital (‘Scheme’) which was approved by the Hon’ble Bombay High Court on March 25, 2003. In accordance with the Scheme, the Company has adjusted the carrying amount of ₹445 million of intangible assets as on December 3, 2002, against Share Premium Account ₹165 million and Capital Redemption Reserve ₹280 million.

Consequent to the above adjustments, depreciation and amortization is lower by Rs.11.533 million and the profit for the year is higher by an equivalent amount.

1. Pass the necessary journal entries for the above adjustments.

2. As per Ind-AS the above information enough for the above changes? Discuss.

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Description Business & commercial rights Technical know-how Trademarks and copyrights Non-compete convenants Total Acquisition Value 108.651 54.000 385.284 9.000 556.935 Accumulated Depreciation (18.561) (30.005) (60.654) (2.700) (111.920) Book value 90.090 23.995 324.630 6.300 445.015