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Q4 X Sugars Ltd. has entered into a sale contract of Rs. 3,00,00,000 with Y Choclates Ltd. for the supply of sugar during 20X1-20x2. As
Q4 X Sugars Ltd. has entered into a sale contract of Rs. 3,00,00,000 with Y Choclates Ltd. for the supply of sugar during 20X1-20x2. As per the contract the delivery is to be made within 2 months from the date of contract. In case of failure to deliver within the schedule, X Sugars Ltd. has to pay a compensation of Rs. 30,00,000 to Y Chocolates Ltd. During the transit, the vehicle carrying the sugar met accident and X Sugar Ltd. lost the entire consignment. It is, however covered by an insurance policy. According to the report of the surveyor, the amount is collectible, subject to the deductible clause [i.e., 15% of the claim) in the insurance policy. The cost of goods lost was Rs. 2,50,00,000. Before the financial year end, X Sugars Ltd. received informal information from the insurance company that their claim had been processed and the payment had been dispatched for 85% of the claim amount. Meanwhile Y Chocolates Ltd. has made demand of Rs. 30,00,000 since the goods were not delivered on time. What provision or disclosure would X Ltd. need to make at year end
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