The consolidated profit of Y Ltd. and its subsidiaries for the year ended December 31, 19X6 is \($490,000.\) During the audit of X Ltd., one of the subsidiaries, CA notices that there is \($5,000\) of intercompany profit in the inventory. The new profit of X Ltd. for the year ended December 31, 19X6 is \($25,000.\) There was no adjustment on any of the organization's financial statements for this profit, and management refuses to allow any change in the statements. Indicate the disclosures, with reasons, CA would make in the report on 

1. X Ltd.

2. Y Ltd. and its subsidiaries