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TMI BlogNOTE IN BALANCE SHEETX X X X Extracts X X X X X X X X Extracts X X X X ..... In balance sheet, below line loan from Bank I had put a note that such loan is secured by hypothecation of plant, machinery. furniture, computer As far as sanction letter is concerned, it is written therein that loan is secured by moveable assets, land and building. Query is Whether p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant and machinery is covered in moveable assets. Management has contented that plant or machinery is not covered by sanction letter. If management contention is right, then I will delete the word plant and machinery in balance sheet for period ended on 31/03/14 before signing the same from our auditors. As far as balance sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet of period ended on 31/03/13, 31/03/12 is concerned , I had put the same note. Whether I have to give any note in balance sheet of 31/03/14 about use of plant or machinery in earlier balance sheets. Please advise. - Reply By porus laboratories - The Reply = In the first instance, the plant and machinery, being immovable property, cannot be hyph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... othecated. It shall be mortgaged. In other words, only movable property like stock of raw material, stock in process and finished goods shall be hyphothecated. Plant and machinery will not be covered under movable property as long as it cannot be moved from one place to another place. Normally, plant will be annexed to the earth. Therefore, it cannot be considered as movable property. However, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery, based on their nature, can be considered as moveable if it can be moved from one place to another. In majority, machinery will be considered as immovable property. Your management is right. It will be sufficient if you mention in the balance sheet for the current year stating that plant and machinery is mentioned in the earlier balance sheet in the year ....as hyphothecated by mistake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence now rectified. VISWANATH E.N M.COM., MBA., FCMA., FCS., LLM MOBILE 9000125885 - NOTE IN BALANCE SHEET - Query Started By: - S.C. WADHWA Dated:- 6-10-2014 Accounting - Auditing - Got 1 Reply - Companies Law - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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