Note in balance sheet

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2014 In balance sheet, below line "loan from Bank" I had put a note
that such loan is secured by hypothecation of plant, machinery.
furniture, computer

As far as sanction letter is concerned, it is written therein that
loan is secured by moveable assets, land & building.

Query is"

Whether plant & machinery is covered in moveable assets.
Management has contented that plant or machinery is
not covered by sanction letter.

If management contention is right, then I will delete the word
plant & machinery in balance sheet for period ended on 31/03/14 before signing the same from our auditors.

As far as balance sheet of period ended on 31/03/13, 31/03/12
is concerned , I had put the same note. Whether I have to give any note in
balance sheet of 31/03/14 about use of plant or machinery in earlier balance sheets.

Please advise.

CA Parul Saxena

CA Parul Saxena (Expert)
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06 October 2014 Plant and machinery come under movable asset as it can be installed somewhere else too.so your note is right.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 October 2014 Go as per sanction letter and loan agreement signed. As per sanction letter the loan is secured by movable assets,land and building.
Plant and machinery is a movable asset. Any how you can word it as per loan agreement as movable asset.

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