Borrowings Note and Loan Schedule Generator – Schedule III

What this tool does

Enter each loan once – amount, date, rate, tenure, moratorium – and the tool builds the full amortisation schedule and answers the three questions every balance sheet preparer asks at year end: how much sits in Long-term borrowings, how much is Current maturities of long-term borrowings, and how much interest has accrued but is not yet due. It then drafts the Schedule III borrowings note – secured and unsecured grouping, nature of security, terms of repayment and the continuing-default sentence – ready to edit, copy and print. Nothing is uploaded anywhere: every computation runs in your browser.

How the split works

Schedule III requires the principal repayable within twelve months of the balance sheet date to be pulled out of Long-term borrowings. Since the amendment effective 1 April 2021, that slice – Current maturities of long-term borrowings – is disclosed under Short-term borrowings, not under Other current liabilities as before. Interest accrued on borrowings sits under Other current liabilities. The tool computes the split loan by loan from the actual instalment schedule, which is the audit-proof way to do it – approximating current maturities as 12 x EMI overstates them whenever the loan is in its later years, because the principal component of each EMI keeps rising.

The note itself must state, for each loan: the nature of security (separately in each case), the terms of repayment, and the period and amount of any continuing default as on the balance sheet date. The 2021 amendments added the surrounding disclosures – wilful-defaulter status, whether quarterly returns filed with banks agree with the books, and end-use of the funds – which the drafted note reminds you to confirm.

Borrowings note – Frequently Asked Questions

What are current maturities of long-term debt?

The principal portion of long-term loans that falls due within twelve months of the balance sheet date. It is computed from the amortisation schedule – the sum of the principal components of the instalments due in the next year – not by multiplying the EMI by twelve.

Where are current maturities shown after the 2021 amendment?

Under Short-term borrowings, as a separately named line. Before the amendment they appeared under Other current liabilities; showing them there now is a presentation error auditors flag.

Where does interest accrued but not due appear?

Under Other current liabilities. The tool estimates it as outstanding principal x rate x days from the last instalment date to the balance sheet date on a 365-day basis – replace it with the lender statement figure where available.

What must the borrowings note disclose for each loan?

Sub-classification as secured or unsecured, the nature of security stated separately for each loan, terms of repayment (instalments, rate, maturity), and the period and amount of any continuing default in repayment of principal or interest as on the balance sheet date.

Is a cash credit or overdraft split into current maturities?

No. CC and OD are repayable on demand and sit entirely under Short-term borrowings – no split arises. This tool is for term loans and other borrowings with a repayment schedule.

Which balance sheet date should I use for the FY 2025-26 audit season?

31 March 2026 – the default in the tool. Change it for any other year end; the twelve-month window for current maturities moves with it.