Current liabilities does not include:

The correct answer is Option (4) → Deferred tax liabilities

Schedule III splits liabilities by when they fall due. Current liabilities are those due within the operating cycle or twelve months: short-term borrowings, trade payables, other current liabilities and short-term provisions. Deferred tax liabilities arise from timing differences that reverse only over later years, so Schedule III places them under non-current liabilities.

• Option (1) Short term borrowing — A current liability. Loans such as a bank overdraft or cash credit are repayable within a year.

• Option (2) Trade payables — A current liability. Amounts owed to suppliers for goods and services are paid in the normal operating cycle.

• Option (3) Short term provision — A current liability. A provision for a liability expected within the year, such as provision for tax, is shown under current liabilities.