Question

Shapoorji Pallonji group and Wilson Renewable Energy Ltd. is considering an Equity Share sale to raise up to1,500 crore to repay its debts maturing this financial year.

This repayment of debt would have been shown by the company in the Balance Sheet of 2023–24 as:

Options

• Long-term Borrowings.

• Short-term Borrowings.

• Other Current Liabilities.

• Trade Payables.

Answer 1

Short-term Borrowings

Explanation:

Because the debts are maturing within the financial year, they are due within 12 months of the balance-sheet date and must be shown as current liabilities. Therefore the amount is classified as short-term borrowings (or the current maturities of long‑term borrowings) on the balance sheet.