In financial statement of some company, I have found that loan borrowed from ICICI bank and BARODA Bank is categorized under secured debt.
However as per my understanding, debt by letter of comfrot is a loan by credit, since it does not have any legal enforceability (except in the letter where there are clear words saying that the third person will meet the debt if borrower fails to pay)
Then why these debts are written under secured debt? Please someone give me the guidance.
CAclubindia
