We have opened a new tea manufacturing Plant in Assam. Under CEFPPC & APC Projects, Govt will contribute grant in aid of Rs.5 Crores. We are unlisted public limited company and having turnover of Rs.600 cr.

How to account for Grant in aid. Which is conditional and refundable if terms are violated

Accounting of Fixed Assets. Capitalisation.

 

Can one reduce capital by grant in aid amount. I am not in favour of such Entry. Please guide. Whether AS 20,12 APPLICABLE?

 

Regards