Landlord Ltd gave the lease of a mine to the Mining Co Ltd for a period of 20 years from 1.4.2011 on

Landlord Ltd gave the lease of a mine to the Mining Co Ltd for a period of 20 years from 1.4.2011 on the following terms and conditions : (a) A royalty of Re 0.50 per metric tonne of production to be paid, subject to a minimum rent of ~ 12,000 p.a. (b) Each year’s excess of minimum rent over the actual royalty (shortworking) can be recovered during the subsequent two years. (c) In the event of a strike and the minimum rent not being reached, the minimum rent is to be reduced by 1/3rd of minimum rent given in (a) above. (d) The following details are available from accounting records —-

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