28 October 2011
X ltd has taken a loan from SBI ,its bankers PNB given guarantee to SBI on its behalf . X ltd mortgaged its assets to PNB .x ltd has disclosed this loan in its balance sheet as unsecured loan on the ground that no security has been given to the lender SBI bank. Is the disclosure sufficient?? (FROM ICAI STUDY MATERIAL)
No need to highlight the fact separately since the loan is taken against the bank guarantee and shown as Unsecured Loan. However Bank guarantee from PNB should be shown as contingent liability.
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