A customer of P Ltd claimed on 25th February, 2016, a fault in a product sold by P Ltd caused damage to its production line. The customer is seeking damages of ₹ 1,60,000. P Ltd has accepted the liability and offered to pay ₹ 1,00,000 to repair the damages. The customer has not accepted it. The customer has filed a case in the consumer court against P Ltd. The legal advisor of P Ltd is of the opinion that the court will accept the claim of the customer of ₹ 1,60,000. Expected date of hearing of the case is in July 2017. How should this matter be dealt with in the financial statements of P Ltd for the period ending on 31st March, 2016?
A. As a current liability of ₹ 1,00,000
B. As a non-current liability of ₹ 1,00,000
C. As a current liability of ₹ 1,60,000
D. As a non-current liability of ₹ 1,60,000