unpaid earnest money deposit

Dear Mam,

You can include an observation in your report based on the ageing of outstanding EMDs.Like upto 1 Year, 1-3 years & more than 3 years, etc or How much is against Completed POs/WO....

Generally, Deposit made or sum paid at the time of Quotations/NIT are non refundable & should be recognised as Misc. Income in the P/L A/c.

Whereas Deposit made after Purchase/Work order is placed, are Refundable deposits, which should be refunded as per the terms of Purchase Order/Work Order.

You should seek a written confirmation of the fact that those are Refundable or Not?

Based on the above, you can accordingly specify your observation in your report.