Term loan repayable within one year!!!

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Rajesh (Querist)
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18 June 2010 Should we have to disclose liability of term loan repayable within one year as
Current Liability?
With regards,
Rajesh

Sorry Experts, I shall put my question more clearly.
The Term loan is repayable in 10 years amounting Rs 250 lakhs.

In year 1 the principal repayment amounts 25 lakhs

Now whether we have to show in the balance sheet Rs.25 lakhs in current liabilities and the balance Rs.225 lalkhs as term loans. Else we have to show Rs. 250 lakhs as term loan in the balance sheet

Thank u sir Mr. Rasesh and the other expert.
With regards,
Rajesh

Rasesh

Rasesh (Expert)
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18 June 2010 ideally, all loans taken for tenure of 1 year or less, should be classified as current liabilities. If they are secured, then they will be categorised as Secured Loan, even if they are for a duration less than 1 year.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 June 2010 Agreed with experts.

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Rajesh

Rajesh (Querist)
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19 June 2010 Should we have to disclose liability of term loan repayable within one year as
Current Liability?
With regards,
Rajesh

Sorry Experts, I shall put my question more clearly.
The Term loan is repayable in 10 years amounting Rs 250 lakhs.

In year 1 the principal repayment amounts 25 lakhs

Now whether we have to show in the balance sheet Rs.25 lakhs in current liabilities and the balance Rs.225 lalkhs as term loans. Else we have to show Rs. 250 lakhs as term loan in the balance sheet

Thank u sir Mr. Rasesh and the other expert.
With regards,
Rajesh

Rasesh

Rasesh (Expert)
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21 June 2010 The entire amount of Rs. 250 lacs has to be shown as term loan only.

If the first instalment of Rs. 25 lacs is due for payment and is not paid due to any reason, then it should be shown as current liabilities.

However, if the lender has agreed for re-scheduling the instalment or the company has requested re-scheduling and the matter is under discussion, then the company may continue to show it as term loan.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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21 June 2010 Entire Amount will be showned as term loan under Group Secured Loan from starting to 1st Year to last year. I.e if in last year 2 or 3 insatlment is pending , still it will be shown Term Loan, not Current Liabilites.

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