The 2021 amendment to Schedule III mandates specific एजिंग buckets for trade receivables: कम than 6 महीने, 6 महीने to 1 वर्ष, 1 to 2 वर्ष, 2 to 3 वर्ष, and over 3 वर्ष. CORAA composes these buckets automatically. Party-wise एजिंग unlocks at Tier II (Party Master loaded); bill-wise precision at Tier III (Bill पंजीकरण करें loaded). Receivables over 3 वर्ष are auto-flagged as खंड 41(1) cessation candidates.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
Pick the Balance Sheet date (typically मार्च 31) or any other reference date. CORAA computes the दिन outstanding for every receivable as of that date.
Each receivable falls into one of the five Sch III amendment 2021 buckets. The bucket totals roll up to the Trade Receivables line on the Balance Sheet. CY and PY एजिंग rendered side by side.
Receivables over 3 वर्ष are candidates for write-off under खंड 41(1) of the Income Tax Act (cessation of liability, reverse for assets). The ऑडिटर समीक्षाएँ each, decides to provide or write off, and the disposition feeds Form 3CD Clause 16.
Five buckets exactly as mandated. The bucket boundaries are non-negotiable and CORAA's render matches the regulator's exact text.
Each bucket further splits by सुरक्षा: Secured (against assets, guarantees), Unsecured, and Doubtful (provision-eligible). The वर्गीकरण feeds नहींte 19 Trade Receivables.
Receivables over 3 वर्ष prompt Sec 41(1) समीक्षा. If the party has clearly ceased to exist or pay (winding up, NCLT order, prolonged absence), the receivable is written off; otherwise a provision is created.
AS 4 prescribes a provision for doubtful debts based on the ऑडिटर's expectation of recoverability. CORAA suggests a provision based on एजिंग distribution; the ऑडिटर confirms or adjusts.
