Imagine a state corporation headquartered in Hyderabad before 2014 with a warehouse in present AP and a loan booked centrally. A simplistic “headquarters gets everything” rule would ignore Section 68, the Ninth Schedule and the Act's asset and liability provisions. The institution's legal identity, asset location, service territory, balance sheet and post-division allocation order all matter. A court judgment may resolve a particular dispute, but it should not be generalised to all corporations.

Build a file with the corporation's 2014 schedule entry, audited balance sheet at the cut-off date, property records, liabilities and any agreement or central order. Then classify the claim: ownership of immovable property, cash, loan obligation, staff or service access. The Tenth Schedule's continued-access rule should not be used unless the entity is in that schedule and the claim concerns facilities. This case trains a candidate to read a statutory schedule as a legal list, not a narrative of modern operations.

Worked example: A corporation owns a Hyderabad headquarters and regional offices in AP. Before calculating a division, determine whether it is listed in the Ninth Schedule and whether a central or successor-state order governs apportionment. Head-office location is only one fact. A court case over liability may depend on an allocation scheme, so avoid applying the population ratio to every account automatically.

Active recall: Which schedule would you inspect for a government company? Name three records needed before claiming an asset share.