Amua Limited purchased 80% of the ordinary share capital of Sawana Limited on 31 January1999forSh.496millionand20%oftheordinarysharecapitalofUkwalaLimitedon31July1998forSh.56million.Protsinallcompaniesaredeemedtoaccrueevenlyovertheyear.

Thedraftaccountsforthethreecompaniesareshownbelow:

Balance Sheet as at 30 April 1999	Prot and loss accounts for the year ended 30 April 1999
	Amua Ltd Sh. Million	Sawana Ltd Sh .million	Ukwala Ltd Sh. million		Amua Ltd Sh .million	Sawana Ltd Sh .million	Ukwala Ltd Sh. Million
PPE (NBV)	414	280	220	Sales	2,346	2,400	1,400
Investments	552	-	-	Cost of
	966	280	220	Sales	(1,564)	(1,620)	(840)
Current				Gross prot	782	780	560
assets				Distribution
Inventory	180	210	70	Costs	(310)	(400)	(200)
Receivables	240	140	56	Admin
Bank	28	12	21	Expense	(240)	(200)	(180)
	448	362	147	Prot from
Current				Operation	232	180	180
Liabilities				Interest on		-	-
Payables	189	109	45	Debentures
Tax	7	3	2	Prot
Proposed				before tax	(42)
Divs	63	40	40	Taxation
	259	152	87	Prot after
	189	210	60	Tax
Net current	1,155	490	280	Dividends	190	180	180
assets				proposed
				Retained
OSC of				prots	(72)	(40)	(20)
Sh.10 each	700	200	200	For the year	118	140	160
Retained	175	290	80	Brought
earnings		490	280	forward	63	40	40
S/holders	875			Carried
Funds				forward
15%
Debentures	280				55	100	120
	1,155
					120	190	(40)
					175	290	80

Additionalinformation:

Amua Limited has not yet accounted for dividends receivable from either its subsidiary or itsassociatedcompany.

Goodwillarisingintheacquisitionoftheholdingcompanyandassociatecompanyisconsideredtohavebeenimpairedattherate of20%perannumoncost.

Required:

i)The consolidated income statement (which should be in accordance with the InternationalAccounting Standard No. 1, showing expenses by function) for the year ended 30 April 1999, [10 marks]

ii) The Consolidatedstatement of financial position asatthat date. [10 marks]