The 2021 amendment to Schedule III mandates specific ageing buckets for trade receivables: less than 6 months, 6 months to 1 year, 1 to 2 years, 2 to 3 years, and over 3 years. CORAA composes these buckets ಸ್ವಯಂಚಾಲಿತವಾಗಿ. Party-wise ageing unlocks ಟಿಯರ್ II ನಲ್ಲಿ (ಪಾರ್ಟಿ ಮಾಸ್ಟರ್ loaded); bill-wise precision ಟಿಯರ್ III ನಲ್ಲಿ (Bill Register loaded). Receivables over 3 years are auto-flagged as Section 41(1) cessation candidates.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
Pick the Balance Sheet date (typically March 31) or any other reference date. CORAA computes the days outstanding for every receivable as of that date.
Each receivable falls into one of the five Sch III ತಿದ್ದುಪಡಿ 2021 buckets. The bucket totals roll up to the Trade Receivables line on the Balance Sheet. CY and PY ageing rendered ಅಕ್ಕಪಕ್ಕ.
Receivables over 3 years are candidates for write-off under Section 41(1) of the ಆದಾಯ ತೆರಿಗೆ ಕಾಯ್ದೆ (cessation of liability, reverse for assets). The ಆಡಿಟರ್ reviews each, decides to provide or write off, and the disposition ಶುಲ್ಕds 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 security: Secured (against assets, guarantees), Unsecured, and Doubtful (provision-eligible). The classification ಶುಲ್ಕds ಇಲ್ಲte 19 Trade Receivables.
Receivables over 3 years prompt Sec 41(1) review. 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 ಆಡಿಟರ್'s expectation of recoverability. CORAA suggests a provision based on ageing distribution; the ಆಡಿಟರ್ confirms or adjusts.
