Current assets, loans and advances

Current assets are required to be classifed as:

a.    Interst accrued on investments
b.    Stores and spare parts
c.    Loose tools
d.    Stock-in-trade (this in turn may consist of stock materials and stock of finished goods)
e.    Work-in-progress
f.    Sundry debtors
i.    Debts outstanding for a period exceeding six months
ii.    Other debts

Less: provision

g.    Cash balance on hand
h.    Bank balances
(i)    With scheduled bank
(ii)    With others
Notes:
a.    Mode of valuation of stock-in-trade and work-in-progress should be specified.
b.    Sundry debtors are required to be disclosed based on security in the following manner:
(i)    Debts considered good and in respect of which the company is fullu secured.
(ii)    Debts considered good for which the company holds no security other than the debtor’s personal security.
(iii)    Debts considered bad or doubtful.
Further following details also required to be disclosed in case of debtors:
(i)    Debts due by directors or other officers of the company or any of them either jointly or severally with any other person.
(ii)    Debts due by firms in which any director is a partner or debts due by a private company in which a director is a director or a member.
(iii)    Maximum amount due by directors or other officers of the company at any time during the year is required to be shown by the way of a note.
(iv)    Debts due from the companies under the same management as defined in section 370(1 B) of the companies act, 1956 are required to be shown seperately along with the names of these companies.

Loans and advances:

The loans and advances are classified as:
a.    Advances and loans to subsidiaries.
b.    Advances and loans to partnership firms in which the company or any of its subsidiaries is a partner.
c.    Bills of exchange.
d.    Advances recoverable in cash or in kind or for value to be received e.g. rates, taxes, insurance etc.
e.    Balances with customs, port trust etc. (where payable on demand)

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