Secured debtors and unsecured debtors

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mahesh (Querist)
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28 March 2012 1.Debtors backed by Bank guarantee or letter of credit can be considered as secured debtors? if not pls mention the reason.

2.whether old schedule VI requires bifurcation of debtors into secured and unsecured?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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28 March 2012 Yes, Debtors backed up by BG/LC are considered as secured debtors to the extent of the amount of BG/LC.
Old Schedule VI also requires the debtors to be classified into secured and unsecured.

mahesh

mahesh (Querist)
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29 March 2012 Thanks Amit