Query on revised schedule vi

Capital advances are advances given for procurement of fixed assets which are non-current assets. Typically, companies do not expect to realize them in cash. Rather, over the period, these get converted  into fixed assets which, by nature, are non-current assets. Hence, capital advances should be treated as non-current assets irrespective of when the fixed assets are expected to be received and should not be classified as Short-Term/Current.

 Receivables are always considered to be trade receivables (Current), however if the receivables are considered to be doubtful, the receivables needs to be examined as to whether should this be categorised under 'Non current assets'. Normal business cycle period is to be examined in this case for ascertaining the due date, if that is not possible then we need to consider 12 months to be the normal period. If the management is confident and proves the justification with evidence that the doubtful debts shall be received within 12 months period, then the amount shall be classified under Current Asset category based on the evaluation of reasonability.

Thanks very much.