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 automatically. Party-wise ageing unlocks at టైర్ II (Party Master loaded); bill-wise precision at టైర్ III (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 amendment 2021 buckets. The bucket totals roll up to the Trade Receivables line on the Balance Sheet. CY and PY ageing rendered side by side.
Receivables over 3 years are candidates for write-off under Section 41(1) of the Income Tax Act (cessation of liability, reverse for assets). The ఆడిటర్ reviews 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 security: Secured (against assets, guarantees), Unsecured, and Doubtful (provision-eligible). The classification feeds కాదుte 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 ఆడిటర్'s expectation of recoverability. CORAA suggests a provision based on ageing distribution; the ఆడిటర్ confirms or adjusts.
