The Alliance Bank of Simla Limited (In Liquidation) - Investigation Report of the Liquidators to the Creditors and Shareholders

It appears to us that the offers by the firm of the loans of £50 000 and £40 000 and the sales by the firm of the secu rities were with the object of impressing the Directors of the Bfwk with the financial status of the firm. [...] The shares appear to have been a present to the Bank by the firm to compensate the Bank for the loss by depreciation in the value of the securities taken over by the firm. [...] II Account and there being no amount at the credit of the Trust the Trust of India's indebtedness was increased and it would appear that the transfer was made to avoid the disclosure of the firm's indebtedness to the Bank on the Balance Sheet of the 30th June 1916. [...] 4 lacs in the other and the remaining Rs lac of the Hotels' Company went to increase the indebtedness of the Trust to the Bank and to increase the amount of the Hotels' Credit Balance on Current Account with the Bank. [...] Arising out of the purchase of the Delhi and London Bank assets in 1916 the Alliance Bank by agreement remitted to the firm approximately £320 000 to cover the cost of that part of the Indian assets of the Delhi and London Bank absorbed by the Alliance Bank.