Page 176 - CA Inter Audit PARAM

CA Ravi Taori

Less than 6 months- 1-2 years 2-3 years More Total
6 months 1 year than 3
years
(i) Undisputed Trade receivables
– considered good
(ii) Undisputed Trade Receivables
– considered doubtful
(iii) Disputed Trade Receivables
considered good
(iv) Disputed Trade Receivables
considered doubtful

# similar information shall be given where no due date of payment is specified, in that case disclosure shall
be from the date of the transaction.
Unbilled dues shall be disclosed separately.

QNO-- Trade Receivable Ageing Schedule Discrepancies New Course – (M24M)
AIFS.38.65 Bhaskar CNO –AIFS-P2.080

Tisa Industries Private Limited has prepared its financial statements for year 2023-24. The financial
statements and notes to accounts show following information and disclosure in respect of trade
receivables of the company: -

Sr. No. Particulars Amount (in ₹ lacs)
1. Trade Receivables 240.00

Trade receivables ageing schedule.
Outstandings for following periods from due date of payment
(in ₹ lacs)

Particular Less than 1 1-2 years 2-3 years More than Total
year 3 Years
MSME 150.00 30.00 10.00 XXX 190.00
Others 40.00 XXX XXX XXX 40.00
Disputed dues MSME XXX XXX XXX XXX XXX
Disputed dues others 10.00 XXX XXX XXX 10.00

You are part of engagement team conducting audit of the company. Point out discrepancies including
omissions in above disclosure. (Do not prepare another table).
Answer The above disclosure is not in accordance with requirements of Division I of Schedule III of Companies Act,
2013. The discrepancies are as under: -
1) The Company has wrongly disclosed information for trade receivables in a manner which is
applicable for trade payables.

2) No distinction between MSME and other trade receivables is required.

3) Trade receivables are to be categorised into undisputed and disputed trade receivables as under:
-
• Undisputed trade receivables considered good
• Undisputed trade receivables considered doubtful
• Disputed trade receivables considered good
• Disputed trade receivables considered doubtful

4) Aging is to be reflected for each of above categories in respect of outstandings for the following
periods from due date of payment
• for less than 6 months
• 6 months-1 year
• 1- 2 years
• 2-3 years
• more than 3 years

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