Question

Which of the following is not included in Short-term Borrowings?

विकल्प

• Bank Overdraft

• Cash Credit from Bank

• Retirement Benefit of Employees

• Loan repayable on Demand

Answer 1

Retirement Benefit of Employees

Explanation:

As per Schedule III of the Companies Act, 2013, Short-term Borrowings strictly include direct monetary loans repayable within 12 months, such as bank overdrafts, cash credits, and loans on demand. In contrast, employee retirement benefits (like gratuity or pensions) are estimated provisions made for staff welfare, not borrowed money. Therefore, they are classified under Long-term Provisions or Short-term Provisions rather than borrowings.