**Balance Sheet as at 31 March 2012**

Preference Share:
- Number of shares: 6,000
- Face value per share: ₹100

Equity Share:
- Number of shares: 1,10,000
- Face value per share: ₹10

**Issue of Equity Shares**
- For every ₹10 of Preference shares, one ₹5 Equity share will be issued.
- This means that for each Preference share with a face value of ₹100, 10 Equity shares with a face value of ₹5 each will be issued.

**Dividend in Arrear**
- Dividend on Preference shares is in arrear from 1 April 2009.
- This means that the company has not paid the dividend on Preference shares since 1 April 2009.

**Internal Reconstruction**
Internal reconstruction refers to the reorganization of a company's capital structure, usually done to improve its financial position or resolve financial difficulties. It involves altering the rights, liabilities, and capital of the company without winding up or liquidating its operations.

**Explanation**
The given information suggests that the company underwent internal reconstruction, which led to the issuance of new Equity shares and the accumulation of arrears in dividend payments on Preference shares.

When a company undergoes internal reconstruction, it may need to issue new shares to raise additional capital or restructure its existing equity and debt obligations. In this case, the company issued new Equity shares with a face value of ₹5 each for every ₹10 of Preference shares. This suggests that the company was trying to improve its financial position by raising additional funds through the issuance of Equity shares.

Additionally, the fact that the dividend on Preference shares is in arrear from 1 April 2009 indicates that the company has not paid the dividend on these shares since that date. This suggests that the company may have faced financial difficulties or cash flow constraints, leading to the accumulation of dividend arrears.

The Balance Sheet as at 31 March 2012 reflects the company's capital structure after the internal reconstruction, with 6,000 Preference shares and 1,10,000 Equity shares. The exact financial implications of the internal reconstruction and the dividend arrears can be assessed by analyzing the company's financial statements and relevant disclosures.

Overall, the internal reconstruction and dividend arrears indicate that the company underwent significant financial changes and may have faced challenges in meeting its dividend obligations to Preference shareholders.