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Debtors ageing analyzer.

Build the Schedule III trade receivables ageing schedule — six age bands crossed with the undisputed/disputed × considered-good/SICR/credit-impaired matrix — with concentration %, an illustrative ECL feed, and the CARO 3(ii)(b) and SA 505 cross-references auditors ask for.

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Ageing matrix (₹ in lakh)

Enter the outstanding balance for each ageing band against each of the six prescribed categories. No file upload here — this is manual entry by design; pasting a trial balance / ledger export and auto-bucketing it against invoice due dates is a studio.coraa.ai capability, not something this static page attempts.

Ageing band	U · Good	U · SICR	U · Impaired	D · Good	D · SICR	D · Impaired	Row total
Not due							₹420
Less than 6 months							₹340
6 months – 1 year							₹131
1 – 2 years							₹57
2 – 3 years							₹25
More than 3 years							₹22
Column total	₹861	₹61	₹22	₹25	₹13	₹13	₹995

U = Undisputed · D = Disputed · SICR = significant increase in credit risk. This 2×3 category split, crossed with the six ageing bands, is the matrix Schedule III prescribes — it is not a "secured / unsecured / doubtful" split.

Disputed balances

5.1%

₹51 of ₹995 book

Credit impaired

3.5%

₹35 across both tags

Beyond 1 year

10.5%

Concentration in the three oldest bands

Illustrative ECL feed (simplified approach)

Illustrative only — not a computed provision

Ind AS 109’s simplified approach requires lifetime expected credit losses on trade receivables via a provision matrix built from the entity’s own historical default experience, adjusted for current and forward-looking information — there is no prescribed rate table. The rates below (0.25% / 1% / 5% / 20% / 50% / 100% by ageing band) are placeholders so this schedule can show an indicative feed; replace them with entity-specific rates in the ECL (Ind AS 109) calculator.

Matrix-rate ECL

₹30.6

Considered-good + SICR balances × band rate

Credit-impaired (full)

₹35

Shown at full balance — needs specific assessment

Illustrative total

₹65.6

6.6% of gross receivables

Where this feeds the audit

Where this lives in the audit

Ageing should be a byproduct of classification, not a year-end reconstruction.

CORAA ages trade receivables straight from the mapped ledger — invoice by invoice, against due date — and carries the same buckets through to the ECL provision matrix and the CARO 3(ii)(b) reconciliation, instead of a spreadsheet rebuilt every quarter.

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The Schedule III disclosure suite.

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Building the rest of the note? Pair this with the cash flow statement builder and the Schedule III ratio calculator.

How the trade receivables ageing schedule works

The MCA amended Schedule III to the Companies Act 2013 (notification G.S.R. 207(E), 24 March 2021, effective FY 2021-22) to require a detailed ageing schedule for trade receivables, split by (a) whether the amount is undisputed or disputed, and (b) credit quality — considered good, receivables which have significant increase in credit risk, and credit impaired. Each of these six categories is further broken down by ageing band, measured from the due date of payment: not due, less than 6 months, 6 months–1 year, 1–2 years, 2–3 years, and more than 3 years. The prescribed table also carries a separate "unbilled dues" line ahead of the ageing buckets (revenue recognised but not yet invoiced, common for service or contract-revenue businesses) — this calculator does not model a distinct Unbilled row; see the pitfalls below. The same paired structure (undisputed/disputed × the ageing bands) also applies to the trade payables ageing schedule, and to capital-work-in-progress and intangible-assets-under-development ageing, measured from the date of capitalisation rather than a due date.

This is not a "secured / unsecured / doubtful" matrix — that classification belonged to the pre-2021 Schedule VI presentation and, separately, appears in unrelated disclosures such as loans and advances. The credit-quality tags (considered good / SICR / credit impaired) are meant to align with the staging concepts used in the entity's Ind AS 109 expected credit loss assessment, so the ageing schedule and the ECL working should be built from a consistent population and consistent judgement calls about which balances have deteriorated.

The schedule is disclosure, not itself a provisioning calculation — but it is the natural feed into two audit steps: the ECL provision matrix (Ind AS 109, simplified approach for trade receivables) and the CARO 2020 clause 3(ii)(b) reconciliation of quarterly bank/FI statements against the books, wherever receivables have been pledged as security for working capital limits.

Worked example — concentration in the oldest bands

A company's receivables book totals ₹1,000 lakh. Of this, ₹230 lakh sits in the 1–2, 2–3 and >3 year bands, and ₹35 lakh is tagged credit impaired across both undisputed and disputed columns.

Inputs

Gross trade receivables₹1,000 L

Beyond 1 year (three oldest bands)₹230 L (23.0%)

Credit impaired (all tags)₹35 L (3.5%)

Output

Illustrative matrix-rate ECL (good + SICR balances)Sum of each band × its illustrative rate

Credit-impaired overlay₹35 L shown at full balance

Audit follow-upCARO 3(ii)(b) reconciliation + SA 505 confirmations weighted to the >1yr bands

A 23% concentration beyond one year, with credit-impaired balances present, is exactly the pattern that should drive both a heavier external-confirmation sample under SA 505 on the aged/disputed accounts and a closer look at whether the entity's ECL matrix rates are still supported by recent loss experience rather than carried forward unchanged from the prior year.

Common mistakes

Confusing the Schedule III matrix with "secured / unsecured / doubtful"

The prescribed ageing matrix is undisputed/disputed × considered good/SICR/credit impaired, not a secured/unsecured/doubtful split. Using the wrong column headings misstates the disclosure even if the underlying totals are correct.

Ageing from invoice date instead of due date

The bands run from the due date of payment, not the invoice or dispatch date. For customers on 60- or 90-day terms, ageing from invoice date instead of due date systematically understates how overdue a balance really is.

Treating the illustrative ECL rates on this page as usable

The rates shown here (0.25% / 1% / 5% / 20% / 50% / 100%) are placeholders to illustrate the mechanics of a provision matrix. Ind AS 109 requires the entity to derive its own matrix from historical default rates on comparable receivables, adjusted for current conditions and reasonable forward-looking information — carry the real matrix construction into the ECL (Ind AS 109) calculator.

Skipping the CARO 3(ii)(b) reconciliation because "no formal CC/OD limit"

Clause 3(ii)(b) is triggered by working capital limits in excess of ₹5 crore in aggregate sanctioned at any point during the year on the security of current assets — including limits that were drawn only briefly, or renewed mid-year. Test against the peak sanctioned position, not just the year-end outstanding.

Folding unbilled dues into "Not due"

The prescribed Schedule III format carries unbilled dues (revenue recognised but not yet invoiced) as their own line, distinct from "Not due" and from the six ageing categories. This calculator does not model a separate Unbilled row — if the entity carries a material unbilled-revenue balance, disclose it separately in the actual filing rather than folding it into "Not due."

Frequently asked questions

What are the six ageing bands for trade receivables under Schedule III?+

Not due; less than 6 months; 6 months to 1 year; 1–2 years; 2–3 years; and more than 3 years — all measured from the due date of payment, not the invoice date.

What is the credit-quality split in the ageing schedule?+

Each ageing band is further split by undisputed vs disputed, and within each of those, by considered good / significant increase in credit risk (SICR) / credit impaired — six columns in total. It is not a secured/unsecured/doubtful split.

Is this ageing schedule the same as the ECL provision matrix?+

No. The Schedule III schedule is a disclosure of ageing and credit-quality tagging. The Ind AS 109 provision matrix uses (typically) the same ageing bands to apply loss rates derived from historical default experience — the two should be built from a consistent population, but the ageing schedule itself does not compute a provision.

Which CARO clause references trade receivables ageing?+

CARO 2020 clause 3(ii)(b) requires the auditor to report, where aggregate working capital limits exceeding ₹5 crore have been sanctioned on the security of current assets, whether the quarterly returns/statements filed with the bank/FI agree with the books — receivables are commonly part of that security package. Separately, clause 3(xix) asks the auditor to opine on the company's ability to meet its liabilities, drawing on ageing and expected realisation.

Does SA 505 require external confirmation of every receivable balance?+

No — SA 505 requires the auditor to consider the use of external confirmations based on assessed risk and the reliability of alternative evidence; it does not mandate 100% coverage. In practice, large, aged and disputed balances (the ones this schedule surfaces) are prioritised for confirmation because alternative evidence is usually weaker for them.

Does the prescribed format include an "Unbilled" line?+

Yes — alongside "Not due" and the five aged buckets, the format carries unbilled dues (revenue recognised but not yet invoiced) as a separate disclosure line. This calculator's six categories don't include a distinct Unbilled row; track and disclose it separately if the entity carries a material balance.

Authoritative sources

MCA

Schedule III amendment — MCA notification G.S.R. 207(E) dated 24 March 2021 — Inserts the trade receivables / trade payables ageing schedules under Schedule III, effective FY 2021-22.

MCA

Companies (Auditor's Report) Order 2020 — Clause 3(ii)(b) — reconciliation of quarterly returns/statements filed with lenders against the books, where working capital limits are secured on current assets.

ICAI

Standard on Auditing (SA) 505 — External Confirmations — Governs the use, design and evaluation of external confirmation procedures, including for trade receivables.

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

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Last reviewed: 2026-07-29 · For informational purposes only — not professional advice.