Name of the Hansraj Nayyar Medical India Private Limited

Company (Previously Hansraj Nayyar Medical India, Prop of Ms. Sadhana

Nayyar)
Historical The Company was dealing with Ms/ Smiths Medical International Pvt
Background Ltd for Import and Trading as their exclusive distributors in India since
1988.

During the FY 2014-15 they open their own subsidiary and started
business in India

The Company written back the following amounts

1. Unpaid Creditors : Written Back
Rs. 2,50,72,524/-

2. Stock Value Written Off (Paid Stock)

Rs. 5,37,35,884/-

The Company Hansraj went to Bombay High against their infringement

of Contract. However the Arbitration clause stated that the matter
should be heard in UK Court.

The Company made the Complaint but could not pursue.

In October 2014 the Decree was passed in Queens Court UK against the
Company and the Claims of Rs.29,47,40,490 plus 8% interest were
levied upon.

In March 2022 the Consent terms filed jointly by the Party and liability
of Rs.10,00,00,000/- was agreed.

The payment schedule as such

1. Rs.80,00,000/- on Execution of Consent Terms (March 2022)
2. Rs. 1,00,00,000/- on 4th April 2022
3. Balance amount of Rs.8,20,00,000/- in Equated installement of
Rs.20,00,000/- each to be paid on 15th of Every Month.

Opinion Seek 1. Whether the liability will be business liability or Contingent

Liability for the Proprietorship Books Closed on 6 th October
2022.

2. What will be the accounting treatment in Proprietorship book

and Companies Books of Account for the Financial Year ended
March 2022.

3. Further if deferment of Loss amount can be done based on the

Payment Cycle as agreed in the Consent Terms.