Hero Limited acquired the entire equity share capital of Zero Limited on 1st January 2017 for a consideration of ₹ 600 million. At the time of acquisition the share capital of Zero Limited consisted on 20 million equity shares of ₹ 10 each. The company had other equity amounting to ₹ 560 million.

The balance sheets of the two companies as on 31st March 2017, are given below: 

Additional Information

1. Zero Limited borrowed ₹ 1,000 million from Hero Limited on 1st January 2011 at 10% per annum. The loan amount and interest thereon is due to be paid.

2. Hero Limited bought goods from Zero Limited for ₹ 200 million during the year. Zero Limited charged a margin of 25% on cost. Out of these goods, 1/4th are still unsold.

3. The debtors for Zero Limited include an amount of ₹ 140 million receivable from Hero Limited.

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Particulars Share capital Other equity Loan funds Trade payables Fixed assets Investments Inventories Trade receivables Loans and advances Other assets (in Million) Hero Limited 500 2,540 3,200 1,650 7,890 1,430 650 630 2,580 1,260 1,340 7,890 Zero Limited 200 750 1,400 680 3,030 925 100 320 560 165 960 3,030