SUNDRY DEBTORS Examples of notes to accounts relating tosundry debtors are given below : 1. Sundry debtors include Rs. ____________ (previous year Rs. __________) due from ABC Ltd., which is a company under the same management. 2. Sundry Debtors ( considered doubtful ) in the Balance Shet include amounts due from the X, Y, Z Ltd., the Holding Company Rs. _________. 3. Sundry Debtors - Debt considered Good - Fully secured : Against Export of Machinery on Defered Payment Terms - Guaranteed by Overseas Banks and Covered under ECGL policy. (i) Debts outstanding for a peirod exceeding six months. (ii) Other Debts 4. Sundry Debtors include : (i) Dues from a Public Charitable Trust, in which some of the Directors of the Company are Trustees _________. (ii) Due from a Privae Company in which some of the Directors of the company ae Directors and/or Members....... 5. No provision has been made in the annexed accounts for the doubtful debt and loan and advances. These may inlcudes some bad debts, which have not been determinedso far. 6. Sundry Debtors include amounts in respect of duty drawback receivable on garments exported. The rates in respect of certain garments have beentaken as per applications made by the Company but are pending finalisation by Government. 7. Sundry Debtors Dues in respect of - Sales on deferred terms of payment (i) Over six months old. (ii) Others Other Sales (i) Over six months old. (ii) Others Less : Provisions for Doubtful debts. 8. Claims from customers against old/damaged stock are accounted as and when received and accordingly, claims, receivedtill the Balance Sheet date have been accounted for. The liability in respect of claims received after the said date has not been ascertained. 9. No provisions has been made for Sundry Debtors considered doubtful of recovery amounting to Rs. _________ (Previous year Rs. _______). 10. During the year confirmation letters have been issued, but only a few confirmation are received till date. Hence, balance of sundry creditors, sundry debtors, loans and advances payable or receivable are subject to confirmationto be obtained from these parties. 11. Debtors are stated a book value after making provisions for doubtful debts. 12. Sundry debtors include legal proceeding/decree obtained Rs. _______. 13. Debtors include claim against the insurance company in respect of imported materials pending settlements (since realised Rs. ________). 14. Consequent upon _____________ Currency devaluation export debtors have been dropped by Rs. ____________ lacs and this has been written off in the accounts. 15. Export incentive receivable Rs. __________ included in the outstanding receivable, shortfall/exces, if any, is not taken into account as the same is unascertainable. 16. Debtors include amounts in respect of duty drawback receivable on vehicles exported. 17. Debtors include guaranteed debtors Rs. ____________ inrespect of subsidiary company's goods sold on consignment basis and against which the bills for the value of Rs. _____________ have been accepted by the company. 18. Debtors are stated after adequate provision for doubtful debts. Marketable securities represent liquid funds temporarily invested and are shown at the realisble value. 19. Provision is made for doubtful debts as and when they are so considered and these provisions are deducted from advances. In addition, an amount has been set aside as a general provision for doubtful debts. 20. Specific provisions for doubtful debts are made by provision charged to current revenue. The determination of the balance of the provisions is based on evaluation of individual advances, current economic conditions, viability ad other factors and reflects an amount which in management's judgement is adequate to provide for potential losses. 21. In respect of specific debt which, in the opinion of the Corporation, based on the present available information, are considered fully or partially irrecoverable, the relevant amounts are written off. No further specific provision is therefore considered necessary. Amounts recovered against debts written of in the past are credited to Revenue Account. The corporation has in addition created a Special Reserve under section 36(1)(vii) of the Income-Tax Act, 1961, whichwould be available for any losses that may be identified in the future. 22. In case of Debtors arising from Lease transaction, the company has recourse to the assets given to the lessee. 23. Sundry Debtors include Rs. _______ Crores due from a broker on account of sale of securities as per company's agreement/contract with them. The broker having failed to make payment in terms of the agreement due to depression in the? Stock market, furnished collateral secrity by way of shares etc., and the same are held by the company. The securities furnished include shared covered by the provisions of the Special Court ( Trial of Offences-relating to Transaction in Securities) Act, 1992. The company has filed a petition in the said Special Court for releasing the securities. Bonus Shares due to the compnay on the said shares have been withheld due to the Act. Cheques aggregating to Rs. ____________ Crores representing sale proceeds of a portion of securities delivered to the broker have been returned unpiad and legal case U/s. 138 of the Negotiable instrments Act. 1881 has been filed. Company has called for confirmation of debts and interest agreed to be paid thereon from the broker. The broker has disputed the amount. Mean-while a settlement proposal has been received which is under consideration. 24. Debtors balances include amounts on account of liquidated damages Rs. ______________ lakhs, realisation of these sums are subject to the regularisation of the terms of the relevant purchase order as regards period of delivery. 25. In view of confirmations not having been obtaind from the sundry debtors including interest receivable on overdue payments, deposits, advances and sundry creditors, the accounts are subject to adjustment on receipt of confirmations of balance and/or reconciliation of acounts the impact whereof on accounts cannot be ascertained at this stage. 26. Request letter for confirmation of balance were sent to the most of the debtors and creditors with a note that correctness would be presumed if no contested. The replies have been received in some of the cases. 27. Sundry Debtors include debts exceeding six months Rs. ___________ lacs (Previous Year Rs. _______ Lacs). 28. Debtors include Rs. __________________ due from the subsidiary company (previous period nil). 29. Sundry Debtors of Rs. ____________ Advances of Rs. ________ and Claims recoverable of Rs. ___________ are considered doubtful of recovery and not provided for as the management is hopeful of their recovery. 30. Sundry debtors are shown after reducing therefrom the amounts of bills drawn on such, debtors and discounted with Company's bankers. 31. The balance in the Debtors/Creditors Accounts are subject to confirmation/reconciliation. 32. No provision is made in the accounts for debts considered doubtful of recovery Rs. _________ and advances considered doubtful of recovery of Rs. ____________ (Previous year) Rs. ____________ and Rs. ____________ respectively). *******