Classification Based on Nature and Extent of Security (Section B)
Different classifications under section B will be as follows:
(a) All advances or part of advances, which are secured9 by tangible assets, whether in India or outside India, should be shown under the heading ‘secured by tangible assets’. Advances against book debts may be included under the head ‘Secured by Tangible Assets’, and presented in Schedule 9 (Advances) as follows:
“B Secured by Tangible Assets” (includes advances against book debt)
(b) Advances in India and outside India to the extent they are covered by guarantees of Indian and foreign governments and Indian and foreign banks and DICGC and ECGC are to be included under the head ‘advances – covered by bank/government guarantees’.
(c) Unsecured advances will include advances not classified under (i) & (ii) of section B.