gaurav arya (student) (97 Points)
20 October 2015
Bhumish Padshah
(Audit )
(23 Points)
Replied 29 October 2015
Yes,it is correct.
As per schedule III of companies act 2013,
A liability shall be classified as current when it satisfies any of the following criteria:—
(a) it is expected to be settled in the company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date; or
(d) the company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date. Terms of a liability that
could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
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