Question 2 In December 20u an entity entered into a loan agreement with a bank. The loan is repayable in three equal annual instalments starting from December 2015. One of the loan covenants is that an amount equivalent to the loan amount should be contributed by promoters by March 24 2012, failing which the loan becomes payable on demand. As on March 24, 2012, the entity has not been able to get the promoter's contribution. On March 25, 2012, the entity approached the bank and obtained a grace period up to June 30, 2012 to get the promoter's contribution. The bank cannot demand immediate repayment during the grace period. The annual reporting period of the entity ends on March 31, 2012. As on March 31, 2012, how should the entity classify the loan? Assume that in anticipation that it may not be able to get the promoter's contribution by due date, in February 2012, the entity approached the bank and got the compliance date extended up to June 30, 2012 for getting promoter's contribution. In this case will the loan classification as on March 31, 2012 be different from (a) above