Sample Disclosure – Note On Capital Commitments (10 December 2010)


Capital commitments contracted but not provided for in the financial statements are as follows:

On 1 April 2010, the Company entered into a sale and purchase agreement (“SPA”) to purchase a piece of land for a consideration of RM49 million. As at the date of this report, the Company has paid a deposit sum of RM4.9 million, representing 10% of the purchase consideration of the said land. Settlement of the balance sum is currently pending fulfilment of certain key SPA conditions by the vendor.

4 thoughts on “Sample Disclosure – Note On Capital Commitments (10 December 2010)”

  1. If we give an order of Rs.10/- and advance paid to Rs.7 and we received Bill of Rs.10. what is the Balance Capital Committment??

  2. 1.whether the capital commitments are disclosed in notes to accounts as net of service tax or any kind of cess and tax as per as 29.

    2.if the cenvat credit is available on such tax or cess, whether the capital commitments would be disclosed net of cenvat credit or gross amount in notes to accounts.

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