Government grant not repayable

Disclosure of Government Grant The government grant of ₹1 crore, being non-repayable, would be treated as a capital receipt. You can disclose it in the balance sheet as follows: -

*Capital Reserve*: Show the government grant under the head "Reserves and Surplus" as a capital reserve, specifically earmarked for investment in Company B. - 

*Deferred Income*: Alternatively, you can recognize the grant as deferred income and amortize it over the period of investment in Company B, in line with the purpose of the grant. 

Disclosure of Investment The investment in Company B, a 50:50 joint venture with Company C, would be accounted for as follows: - 

*Investment in Joint Venture*: Show the investment in Company B under the head "Non-Current Investments" or "Investments" in the balance sheet. -

 *Equity Method or Cost Method*: Depending on the level of influence Company A has over Company B, you might account for the investment using the equity method or cost method.

 Accounting Standards Ensure compliance with relevant accounting standards, such as Ind AS 109 (Financial Instruments) and Ind AS 20 (Accounting for Government Grants and Disclosure of Government Assistance), for proper recognition and disclosure of the government grant and investment.