There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Loans and Advances that are receivable after 12 months or after the period of the Operating Cycle from the date of the Balance Sheet are shown as Non-current Assets in the Balance Sheet of a company.
Reason (R):  Since the loan is receivable after 12 months or after the period of the Operating Cycle, it is not a Current Asset. An asset that is not a Current Asset is shown as a Non-current Asset as prescribed by Schedule III (Part I) of the Companies Act, 2013.

Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

(i) Record a loan payable or loan receivable as a current asset or current liability if it's to be entirely repaid within the next year. Any portion of the loan that's due more than 12 months away is a long-term liability or asset.
(ii) Loans which are repayable in more than twelve months/operating cycle are classified as long-term borrowings on the face of balance sheet.
(iii) Loans repayable on demand or whose original tenure is not more than twelve months/operating cycle are classified as short-term borrowings on the face of balance sheet