Paradigm Shift in Banking Prudential Norms (From Incurred Loss Model (IRACP) to Expected Credit Loss (ECL) Framework)

 

1. Executive Summary

The banking sector is undergoing its most significant structural accounting transformation in decades: the transition from the traditional Incurred Loss Model governed by the Reserve Bank of India’s (RBI) Income Recognition, Asset Classification, and Provisioning (IRACP) norms, to the forward-looking Expected Credit Loss (ECL) framework under Ind AS 109.

This write-up provides an analytical breakdown of the operational, mathematical, and financial statement impacts of this transition, highlighting how risk parameters, income recognition, and balance sheet presentations are fundamentally re-engineered.

2. Core Methodological Divergence

The structural shift replaces a reactive, rule-based approach with a proactive, statistically-driven valuation framework.

[Incurred Loss Model (IRACP)] ───► Triggers ONLY after a default occurs (90+ DPD)
[Expected Credit Loss (ECL)]    ───► Day-One provisioning based on predictive credit risk

2.1 The Incurred Loss Model (IRACP)

Under current IRACP norms, provisions are triggered strictly by backward-looking "events" (time-based delinquency thresholds). An asset must breach the 90-day past due (DPD) cliff before it is recognized as a Non-Performing Asset (NPA).

For secured loans, provisions scale up gradually over a multi-year "aging escalator" (e.g., 15% for Sub-Standard, moving up to 25%, 40%, and eventually 100% over three years in the Doubtful category). This creates a lag between the actual deterioration of credit quality and its reflection on the balance sheet.

2.2 The Expected Credit Loss (ECL) Model

The ECL model mandates that credit risk buffers be built on Day One of loan disbursement. The framework operates on three distinct, dynamic stages based on the change in credit risk since origination:

• Stage 1 (Performing): Low credit risk (0–30 DPD). Demands a provision equivalent to the 12-Month ECL (losses from default events possible within the next year).

• Stage 2 (Underperforming): Significant Increase in Credit Risk (SICR) identified (31–90 DPD, financial stress, or rating downgrades). Demands an immediate upgrade to a Lifetime ECL provision, looking across the entire remaining tenure of the asset.

• Stage 3 (Credit-Impaired): Objective evidence of default exists (90+ DPD). Requires a Lifetime ECL provision with a 100% Probability of Default parameter.

3. Mathematical Parameters of ECL

ECL estimation relies on predictive quantitative models rather than static statutory percentages. The foundational formula is expressed as:

{ECL} = {PD} * {LGD} *{EAD}

3.1 Probability of Default (PD)

PD represents the statistical likelihood that a borrower will default over a given horizon. Banks calculate this through a multi-tiered pipeline:

1. Baseline Historical PD: Derived from internal credit matrices tracking historical migrations of loan portfolios across risk ratings over a 5-to-10-year credit cycle.

2. Point-in-Time (PIT) Adjustments: Adjusting historical averages using real-time behavioral factors (e.g., limit utilization, credit scores, internal financial ratios).

3. Forward-Looking Macroeconomic Conditioning: Overlaying econometric forecasting models. Historical PDs are adjusted based on probability-weighted future economic scenarios (Optimistic, Base Case, and Pessimistic) using macro-variables such as GDP growth, inflation, and interest rate projections.

3.2 Loss Given Default (LGD) & The Collateral Nuance

LGD represents the economic loss percentage if a default occurs, deeply altering how secured loans are evaluated.

• IRACP Treatment: Retains collateral at book value and applies statutory percentages, insulating the P&L from heavy hits in the initial years of default.

• ECL Treatment: Forces the bank to calculate the Present Value (PV) of Future Recoveries on Day One of Stage 3. The asset's collateral is subjected to realistic market distress haircuts, mapped against real-world legal recovery timelines (e.g., 3–5 years under SARFAESI/NCLT), and discounted back to the reporting date using the loan's Effective Interest Rate (EIR).

Consequently, even a 100% secured loan can trigger an immediate 40–50% upfront provisioning hit upon entering Stage 3 due to the time-value-of-money discount.

3.3 Exposure at Default (EAD)

EAD represents the total gross exposure at the time of potential default. This incorporates not just the outstanding principal, but also forward-looking estimates of unutilized credit lines, non-funded exposures (LCs/BGs), and accrued interest that the borrower may draw down prior to breaching the default threshold.

4. Financial Statement Presentation & P&L Mechanics

The transition fundamentally realigns income recognition rules and presentation frameworks, shifting from rigid cash-basis rules to a valuation-driven approach.

4.1 Presentation on the Balance Sheet

On the face of the balance sheet, both models report a Net Advances figure to avoid asset inflation. However, the accounting machinery differs completely:

• IRACP Protocol: Dual-track accounting. Specific provisions for NPA categories are deducted directly from assets, whereas general provisions for standard loans are parked under liabilities (Other Liabilities and Provisions).

• ECL Protocol: Unified accounting. All provisions across Stage 1, 2, and 3 are combined into a single contra-asset account known as the Allowance for Credit Losses (ACL). The total ACL balance is netted directly against the Gross Carrying Amount of the entire loan book on the asset side.

4.2 Income Recognition and the "Net Carrying" Trade-off

A vital operational trade-off occurs when an asset transitions into default:

• Under IRACP: The bank experiences lower upfront provisioning but suffers a complete block on accrual income. Interest recognition drops entirely to a cash-realization basis, and previously accrued but uncollected interest must be immediately reversed.

• Under ECL (Stage 3): The bank takes a substantial, immediate provisioning hit to its earnings. However, the framework permits the bank to continue recognizing interest income on an accrual basis, calculated strictly on the Net Carrying Amount (Gross Outstanding minus the ECL Provision Held) using the Effective Interest Rate (EIR).

4.3 Presentation on the Profit & Loss Statement

On the face of the Profit & Loss statement, credit adjustments are compiled into a single line item, typically designated as "Impairment on Financial Instruments" or "Net Credit Losses".

Credit Gains: If a portfolio improves (migrating from Stage 2 back to Stage 1) or cash recoveries exceed the amortized cost floor, the excess provision is released. This release hits the P&L as a gross Credit Gain, separate from core interest income, allowing stakeholders to easily trace whether earnings are driven by operational loan yields or adjustments in statistical risk modeling.

5. Analytical Conclusion

The shift to Expected Credit Loss changes provisions from a backward-looking regulatory compliance cost into a dynamic, forward-looking risk management tool. While the ECL framework introduces structural volatility to bank earnings during macro-economic contractions—owing to rapid stage migrations and upfront present-value discounting on collateral—it delivers a more transparent, highly capitalized, and resilient banking balance sheet.

Accounting for Mining Licenses under Ind AS (A COMPREHENSIVE GUIDE TO CAPITALIZATION, DEFERRAL, AND P&L CLASSIFICATIONS)

 The extractive and mining sector possesses unique accounting challenges, primarily due to the high level of economic uncertainty, substantial upfront capital commitments, and prolonged timelines between initial exploration and eventual commercial extraction. Under the Indian Accounting Standards (Ind AS) framework, distinguishing between expenditures that qualify for capitalization and those that must be immediately expensed requires a precise, stage-by-stage analysis.

To formulate an airtight accounting policy, corporate operations are broadly categorized into two distinct licensing paths: the License to Explore & Evaluate and the License to Mine. This comprehensive guide breaks down the financial engineering required across both frameworks, mapped meticulously to Ind AS 106, Ind AS 16, and Ind AS 38.

The Ind AS Regulatory Matrix

Before dissecting the accounting treatments, it is essential to establish the interlocking roles of the three critical standards governing this domain:

• Ind AS 106 (Exploration for and Evaluation of Mineral Resources): Governs the intermediate window after obtaining legal exploration rights but before commercial viability is technically and commercially demonstrated.

• Ind AS 16 (Property, Plant and Equipment): Regulates the tangible physical assets deployed across all stages of mining development.

• Ind AS 38 (Intangible Assets): Regulates acquired or generated intangible elements, such as legal rights, geological mapping data, and software.

1. License to Explore & Evaluate (Ind AS 106, 16 & 38)

The accounting lifecycle under an Exploration & Evaluation (E&E) License is strictly chronological and is segregated into three distinct milestones:

Stage A: Pre-License Expenses (The Preliminary Phase)

Any costs incurred before an entity has obtained the legal right to explore a specific area cannot be recognized as an asset. Under Ind AS 106, these are strictly recognized as expenses and charged to the Statement of Profit and Loss (P&L) in the period they occur.

• Examples include: Historical data acquisition, early-stage regional geological reconnaissance, and competitive bidding/tender preparation costs.

Stage B: Expenses from License to Final Evaluation (The E&E Window)

Once the legal right to explore is secured, the entity enters the active domain of Ind AS 106. Management must develop a consistent accounting policy specifying which expenditures are capitalized as E&E assets. These expenses are split based on their economic substance:

• Intangible Component: Expenditures such as topographical studies, exploratory drilling rights, trenching, sampling, and technical feasibility reports are recognized as Intangible Assets Under Development (IAUD) under Ind AS 38.

• Tangible Component: Infrastructure constructed or deployed for the exploratory phase (e.g., drilling rigs, access roads, specialized field camp equipment) must be capitalized as Property, Plant and Equipment (PPE) or Capital Work-in-Progress (CWIP) under Ind AS 16.

• Cross-Capitalization of Depreciation: Critically, the depreciation on the tangible PPE deployed strictly during this phase is not expensed to P&L. Instead, following the principles of Ind AS 16 and Ind AS 38, it is capitalized into the cost of the Intangible Assets Under Development, as it represents a direct cost of generating that technical data asset.

Stage C: Expenses After Completion of Evaluation (The Post-Viability Transition)

The E&E phase concludes when the technical feasibility and commercial viability of extracting a mineral resource become demonstrable. At this milestone, Ind AS 106 ceases to apply. Assets must be tested for impairment before being reclassified into regular operational asset classes:

• Intangible Component: The accumulated E&E intangible cost is transferred out of development status and recognized as fully formed Intangible Assets (Mining Rights / Technical Knowledge Data) under Ind AS 38, subject to subsequent amortization.

• Tangible Component: Structural assets, permanent mining infrastructure, and machinery are formally reclassified into standard Property, Plant and Equipment (PPE) blocks under Ind AS 16, and regular operational depreciation schedules commence.

2. License to Mining (Ind AS 16 & Ind AS 38)

When an entity directly secures a comprehensive commercial mining lease or transitions out of a successful exploration phase, Ind AS 106 ceases to operate. The accounting framework rests solely on the pillars of Ind AS 16 and Ind AS 38.

Stage A: Pre-License Expenses

In alignment with general asset recognition criteria, all expenditures incurred prior to securing the explicit legal commercial mining rights must be instantly charged to the P&L. Speculative survey works or competitive bidding costs prior to execution are treated strictly as revenue expenditures.

Stage B: After Acquiring Mining Rights (The Development & Production Phase)

Post-acquisition of the mining rights, capital expenditure splits down the middle based on physical visibility:

• Intangible Part (Ind AS 38): The upfront consideration paid to government or local authorities to acquire the commercial lease, legal fees, and rights-of-way are capitalized as Intangible Assets. During the construction of mine shafts or initial clearing before commercial production, these are categorized under Intangibles under Development.

• Tangible Part (Ind AS 16): Heavy earthmoving machinery, safety infrastructure, processing plants, and mineral transport setups are capitalized as Property, Plant and Equipment (PPE). Any ongoing civil works are retained in Capital Work-in-Progress (CWIP) until ready for their intended use.

Strategic Summary Matrix for Finance Teams

Phase / Expense Nature	Underlying License Type	Accounting Classification	Governing Ind AS
Pre-License / Preliminary Surveys	Both License Frameworks	Charge to Profit & Loss (P&L)	Ind AS 16 / 38 Framework
Exploratory Intangibles (Drilling/Sampling)	License to Explore & Evaluate	Intangible Asset Under Development	Ind AS 106 & Ind AS 38
Exploratory Infrastructure Rig	License to Explore & Evaluate	Property, Plant and Equipment (PPE)	Ind AS 106 & Ind AS 16
Depreciation on Rigs during Exploration	License to Explore & Evaluate	Capitalized into Intangible Asset	Ind AS 16 to Ind AS 38
Commercial License Fees & Right to Extract	License to Mining	Intangible Assets (Mining Rights)	Ind AS 38
Production Infrastructure & Processing Plants	License to Mining	Property, Plant and Equipment (PPE)	Ind AS 16

Conclusion & Key Takeaways

Accounting for mining assets under Ind AS requires a delicate blend of physical milestone tracking and precise standard application. The critical determinant is the shift from exploration to production.

Chief Financial Officers and corporate accountants must ensure that capitalized balances under Ind AS 106 are cleanly partitioned from regular operational assets. Furthermore, capturing internal cost loops—such as capitalizing tangible asset depreciation directly into exploratory intangible items—is essential for presenting a regulatory-compliant balance sheet.

Capital Gains Account Scheme (CGAS)

 

The Capital Gains Account Scheme (CGAS) is a special facility under the Income Tax Act that allows taxpayers to temporarily park their capital gains when they are unable to reinvest them before the due date of filing their income tax return. It ensures that individuals and HUFs can still claim exemptions under sections like 54, 54B, and 54F by depositing the required amount into a designated bank account. The deposited funds must then be utilized within the statutory period (two years for purchase, three years for construction, or two years for agricultural land). If the amount remains unutilized after the deadline, it automatically becomes taxable as long‑term capital gain in the year of expiry. In essence, CGAS acts as a compliance cushion—helping genuine taxpayers preserve their exemption eligibility while preventing misuse by ensuring eventual taxation of unspent balances.

1. Capital Gains Account Scheme (CGAS) Basics

• Deposit requirement:
• Section 54, 54B → deposit capital gain.
• Section 54F → deposit net sale consideration.
• Opening: directly at bank (no AO approval).
• Closure: requires AO approval.

2. Taxability of Unutilized Amount

• If not utilized within 2–3 years:
• Becomes taxable in the year of expiry.
• Taxed as long-term capital gain (nature preserved).
• CGAS is a compliance cushion, not a loophole. Wrong intent only defers tax, cannot avoid it permanently.

3. AO’s Role

• AO may deny closure temporarily if reinvestment proof is missing or period not expired.
• Ultimately closure is allowed, with taxation of unutilized balance.
• Application is offline (formal request + documents). Online submission possible only if AO allows via e-Proceedings.

4. Case Study

• Sale: 03-01-2026, ₹1.5 crore.
• Purchase: 10-07-1999, ₹20 lakh.
• Eligible for FMV substitution as on 01-04-2001.
• Indexed cost (if FMV ₹30 lakh): ≈ ₹1.09 crore.
• LTCG ≈ ₹41 lakh.
• Deposit unutilized LTCG in CGAS by ITR due date (31-07-2026 / 31-10-2026).
• Reinvestment deadline:

• Purchase → by 02-01-2028.
• Construction → by 02-01-2029.

5. Tax Rate Update (Budget 2024)

• LTCG on property:
• 12.5% flat (no indexation) OR
• 20% with indexation.
• Taxpayer can choose whichever is beneficial.
• Applies under both old and new regimes (regime-neutral).

6. Sections 54, 54B, 54F – Scope

• Section 54: Sale of residential house → reinvest in residential house.
• Section 54B: Sale of agricultural land → reinvest in agricultural land.
• Section 54F: Sale of any other long-term asset (not house) → reinvest in residential house.

7. Capital Gain vs. Net Sale Consideration

• Net Sale Consideration: Sale proceeds minus transfer expenses.
• Capital Gain: Net sale consideration minus indexed cost & improvements.
• Exemption rules differ:

• Section 54/54B → deposit capital gain.
• Section 54F → deposit net sale consideration.

 

Example:

• Sale price: ₹1,00,00,000
• Transfer expenses: ₹2,00,000 → Net Sale Consideration = ₹98,00,000
• Indexed cost: ₹62,05,000 → Capital Gain = ₹35,95,000
• For Section 54F → deposit ₹98,00,000.
• For Section 54 → deposit ₹35,95,000.

 

 

GST 80% Rule in Real Estate Sector – Summary Guide

 

1. Overview of the 80% Rule

·        Promoters must procure at least 80% of taxable inputs and services from registered suppliers annually, project-wise.

·        If shortfall exists, RCM (Reverse Charge Mechanism) applies on the shortfall.

·        Cement from unregistered suppliers is always liable under RCM (earlier 28%, now 18% under GST 2.0).

2. Calculation Basis

·        The rule is applied annually, project-wise, not monthly.

·        Shortfall is determined at year-end, and RCM is payable by June of the following year.

3. Treatment of Non-GST/Exempt Items

·        Non-GST supplies (e.g., electricity, petrol, diesel, alcohol) and exempt supplies (e.g., health, education, agricultural produce) are excluded from the 80% calculation.

·        Salary and wages are excluded as they are not considered supplies under GST.

4. Special Cement Rule

·        Any cement purchased from unregistered suppliers is always taxed under RCM.

·        To avoid RCM liability on cement, builders must procure 100% cement from registered suppliers.

5. Adjustment of Shortfall

·        If overall registered procurement is less than 80%, the shortfall is first adjusted against cement if unregistered cement exceeds 20%.

·        If not, the shortfall is adjusted against other taxable inputs/services.

6. Composition Dealers

·        Purchases from composition dealers count as registered for the 80% rule.

·        However, no Input Tax Credit (ITC) is available on such purchases.

·        These purchases help meet the threshold but should be flagged separately.

7. Key Takeaways

·        Annual, project-wise compliance is required.

·        No item-wise 80% test is needed, except for the cement carve-out.

·        Cement from unregistered suppliers always attracts RCM.

·        Composition dealers count as registered but ITC is not available.

8. Applicability to Commercial Real Estate

- The 80% rule applies only to residential real estate projects under concessional GST rates (1%/5%).

- Commercial projects (offices, malls, shops, warehouses) are not covered under the 80% rule.

- Commercial projects continue under normal GST rates with ITC available.

9. GST Rates for Commercial Real Estate

- 12% GST: Sale of under-construction commercial property (shops, offices, warehouses) with ITC available.

- 18% GST: Renting/leasing of commercial property (shops, offices, warehouses) with ITC available.

- 0% GST: Sale of completed/ready-to-move commercial property (only stamp duty/registration applies).

- Sale of land: Exempt from GST.

Comprehensive Summary of GST E-Invoicing Applicability

 

1. General Applicability of E-Invoicing under GST

E-invoicing under GST is governed by Rule 48(4) of the CGST Rules, 2017. It mandates certain registered taxpayers to generate invoices through the Invoice Registration Portal (IRP).

·        Key Points:

·        • Applicable to businesses with aggregate turnover of ₹5 crore or more in any financial year from 2017–18 onwards.

·        • Covers B2B transactions, exports, and credit/debit notes.

·        • Not applicable to B2C invoices or exempted entities.

·        Exemptions include:

·        • Banks, insurers, NBFCs, and financial institutions

·        • Goods Transport Agencies (GTA)

·        • SEZ units (not developers)

·        • Government departments and local authorities

·        • Passenger transport services and cinema admissions

2. Example Case: Business Starting in 2023–24

Turnover progression:

·        • FY 2023–24: ₹2 crore

·        • FY 2024–25: ₹3 crore

·        • FY 2025–26: Exceeds ₹5 crore

Conclusion: Since the turnover exceeds ₹5 crore in FY 2025–26, e-invoicing becomes applicable from FY 2026–27 (as the threshold is based on any preceding financial year).

3. Key Notifications & Circulars

Notifications:

·        • Notification No. 13/2020 – Central Tax: Introduced e-invoicing for turnover ≥ ₹100 crore from 1 Oct 2020.

·        • Notification No. 61/2020 – Central Tax: Deferred implementation to 1 Oct 2020.

·        • Notification No. 70/2020 – Central Tax: Reduced threshold to ₹500 crore.

·        • Notification No. 88/2020 – Central Tax: Reduced threshold to ₹100 crore.

·        • Notification No. 05/2021 – Central Tax: Reduced threshold to ₹50 crore.

·        • Notification No. 17/2022 – Central Tax: Reduced threshold to ₹10 crore.

·        • Notification No. 10/2023 – Central Tax: Current threshold ₹5 crore from 1 Aug 2023.

Circulars:

·        • Circular No. 186/18/2022-GST: Clarified applicability for government departments registered for TDS.

·        • Circular No. 198/10/2023-GST: Clarified scope of Rule 48(4) and exemptions.

4. Chronology of E-Invoicing Notifications

Notification No.	Date	Threshold & Applicability
13/2020 – Central Tax	21 Mar 2020	Introduced e-invoicing for turnover ≥ ₹100 crore from 1 Oct 2020
61/2020 – Central Tax	30 Jul 2020	Deferred implementation to 1 Oct 2020
70/2020 – Central Tax	30 Sep 2020	Reduced threshold to ₹500 crore
88/2020 – Central Tax	10 Nov 2020	Reduced threshold to ₹100 crore
05/2021 – Central Tax	8 Mar 2021	Reduced threshold to ₹50 crore
17/2022 – Central Tax	1 Aug 2022	Reduced threshold to ₹10 crore
10/2023 – Central Tax	10 May 2023	Reduced threshold to ₹5 crore from 1 Aug 2023

5. Clarified Scope of Rule 48(4) and Exemptions

Rule 48(4) mandates notified taxpayers to generate invoices through the IRP for B2B supplies, exports, and credit/debit notes.

·        Exemptions include:

·        • Government departments registered only for TDS under GST (Section 51)

·        • Banks, insurers, NBFCs, and financial institutions

·        • SEZ units (not developers)

·        • Goods Transport Agencies (GTA)

·        • Passenger transport services

·        • Admission to cinema halls

6. Practical Takeaways for Businesses and Government Departments

·        • E-invoicing applies to registered persons with turnover exceeding ₹5 crore in any financial year since 2017–18.

·        • Applies to B2B transactions, exports, and credit/debit notes only.

·        • B2C transactions are excluded.

·        • Government departments registered only for TDS are exempt.

·        • Exemptions also apply to banks, insurers, NBFCs, SEZ units, GTA, passenger transport, and cinema admissions.

1st Child and Mother connection through Astrology

Divine Connection Between Mother & her Child

By applying this simple example any mother can easily verify that how her 1^st child is already decided in advance. The data needed is the DOB, TIME & PLACE of Birth of MOTHER and 1^st Child. Please note this principle not applicable to FATHER Chart.

Formula:

Whenever  RAHU or KETU (i.e.) DNA hit the 5^th House/5^th Lord of Mother there is a possibility of Birth of 1^st Child of that Mother.

Disclaimer:

I am not an astrologer and neither advocating it. I am just sharing an information which may be helpful to lots of mothers and sisters. Just for thought and analysis and data collection. I am in no way preaching astrology.

Basic understanding

Who will take birth and when and to which mother is already decided and let’s collect data and see if some exception exists or not.

Mother is the gate way of the creator, what the creator wants it is the mother who delivers it and father is the heritage i.e. the source of the creation.

The whole living being is the combination of MIND+SOUL+BODY+DNA

Everything that creates is the mother including the “mind” which we call MOON in astrology.

Everything that is created has some energy or source including the “Soul” which we call SUN in astrology.

Every creation is observed through the “body” which we call “Earth” in astrology.

The movement of SUN+EARTH+MOON creates two intersection points one is RAHU and other is KETU. If we analyse the movement deeply, we will be able to understand that EARTH is moving like similar to DNA structure.

Short form of planets  Su- Sun, Ma- Mars, Ve- Venus, Me- Mercury, Mo- Moon, Ke- Ketu, Ju- Jupiter, Sa-Saturn, Ra- Rahu

Example:

Put DOB, TIME & PLACE of Birth of MOTHER in any online Kundli software and download lagna kundli like bellow

Chart of Mother

From (Mother Chart) Note down the coloured house and number mentioned therein like here it is – 6

Refer the Rasi And Their Lords Table from above and find the planet corresponding to Sl No-6, it is Mercury

 

In your chart the house may have any number written therein, just locate the number and find the planet name against that number from the Table.

 

So, we have two things from Mother chart:

1-     We have a Number – 6

2-     We have a planet - Mercury

  

Put DOB, TIME & PLACE of Birth of 1^st Child in any online Kundli software and download lagna kundli like bellow

First Child Chart

From (1^st Child Chart) note down (Ke) and (Ra) and connect them with an arrow like above

 Note: “Ke” and “ Ra” may be anywhere in the chart of the child table just locate it and connect by an arrow.

Lets apply the formula:

“Ke” OR “ Ra” in CHILD chart must hit the planet or the number as identified in the MOTHER chart.

In the above example the “Ke” in the child chart hit the number “6”

Simply means the Child carries the DNA (i.e. KETU +RAHU) of Mother

 

Exception:

If someone finds her child chart Ke or Ra not hitting the  Number or Planet of the mother then just change the Month of the birth of CHILD to 3 months earlier and 3 Months later and recheck the applicability. Ex. DOB of child is 10-5-2025, change it to 10-2-2025 and 10-8-25 and check again. This is exception and has some reason to it.

 

Please apply it and let me know how many cases are matching and how many cases are not matching.