Ministry of Corporate Affairs has made certain changes in the financial reporting framework prescribed under Division I of Schedule III of the Companies Act, 2013 via a notification dated March 24, 2021. These changes are applicable with effect from April 1, 2021.
IGAAP Reporting Framework
Presentation Related changes
1. Change in nomenclature of Tangible Assets
|
Before Amendment |
After Amendment |
|
II. Assets Non-Current Assets (1) (a) Property, Plant and Equipment
|
II. Assets Non-Current Assets
|
2. Current maturities of long-term borrowings
|
Before Amendment |
After Amendment |
|
Other current liabilities |
Short- term borrowings |
3. Reconciliation of Property, Plant and Equipment and Intangible Assets
|
Before Amendment |
After Amendment |
|
A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing:
|
A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing:
|
Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017
4. Security Deposits
|
Before Amendment |
After Amendment |
|
Long-term loans and advances |
Other non-current assets |
5. Grant of Donations
Received by section 8 Company shall be disclosed separately under Revenue from Operations.
Additional Disclosure
1. Ageing of Trade Payable
|
Particulars |
Outstanding for following periods from due date of payment |
Total |
|||
|
Less then 1 year |
1-2 Years |
2-3 Year |
More than 3 years |
||
|
(i) MSME |
|||||
|
(ii) Others |
|||||
|
(iii) Disputed dues MSME |
|||||
|
(iv) Disputed dues Others |
|||||
*Where due date of payment is not specified, in that case disclosure shall be made from the date of the transaction.
** Unbilled dues shall be disclosed separately.
2. Ageing of Trade Receivable
|
Particulars |
Outstanding for following periods from due date of payment |
Total |
||||
|
Less then 6 months |
6 month - 1 Year |
1-2 Years |
2-3 Year |
More than 3 years |
||
|
(i) Undisputed Trade receivable considered Good |
||||||
|
(ii) Undisputed Trade receivable considered doubtful |
||||||
|
(iii) Disputed Trade receivables considered Good |
||||||
|
(iv) Disputed Trade receivable considered doubtful |
||||||
*Where due date of payment is not specified, in that case disclosure shall be made from the date of the transaction.
** Unbilled dues shall be disclosed separately.
3. Shareholding of Promoters
|
Share holders by promoters at the end of the year |
% change during the year |
|||
|
S. No. |
Promoter Name* |
No. of Shares** |
% of total shares*** |
|
|
Total |
||||
*Promoter here means promoter as defined in the Companies Act, 2013.
** Details shall be given separately for each class of shares
*** percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue.
4. Utilization of Borrowings
Where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used.
5. Title Deeds of immovable property not held in the name of the company
|
Relevant line item in the Balance sheet |
Description of item of property |
Gross carrying value |
Title deeds held in the name of |
Whether title deed holder is a promoter, director or relative# of promoter/director or employee of promoter/director |
Property held since which date |
Reason for not being held in the name of the company** |
|
Property, Plant and Equipment |
Land |
** also indicate if in dispute |
||||
|
Building |
||||||
|
Investment property |
Land |
|||||
|
Building |
||||||
|
PPE retired from active use and held for disposal |
Land |
|||||
|
Building |
||||||
|
Others |
6. Loans granted to promoters/directors/KMPs and the related parties
Details regarding Loans or Advances in the nature of loans that are granted to promoters, directors, KMPs and the related parties either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment, shall be given in following format:
|
Type of Borrowers |
Amount of loan or advance in the nature of loan outstanding |
Percentage to the total |
|
Promoters |
||
|
Directors |
||
|
KMPs |
||
|
Related Parties |
7. Ageing and Completion Schedule for CWIP and Intangible assets under development
|
Ageing Schedule |
|||||
|
CWIP/Intangible assets under development |
Amount of CWIP for a period of |
Total |
|||
|
Less than 1 year |
1-2 years |
2-3 years |
More than 3 years |
||
|
Projects in progress |
|||||
|
Projects temporarily suspended |
|||||
Project completion schedule
|
CWIP/Intangible assets under development |
Amount of CWIP for a period of |
|||
|
Less than 1 year |
1-2 years |
2-3 years |
More then 3 years |
|
|
Project 1 |
||||
|
Project 2 |
||||
8. Details of Benami Property held
Where any proceedings have been initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company shall disclose the following:-
(a) Details of such property, including year of acquisition,
(b) Amount thereof,
(c) Details of Beneficiaries,
(d) If property is in the books, then reference to the item in the Balance Sheet,
(e) If property is not in the books, then the fact shall be stated with reasons,
(f) Where there are proceedings against the company under this law as an a better of the transaction or as the transferor then the details shall be provided,
(g) Nature of proceedings, status of same and company’s view on same.
9. Borrowing related Compliance
Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts. if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed.
Further, where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given:
(a) Date of declaration as wilful defaulter,
(b) Details of defaults (amount and nature of defaults),
“wilful defaulter” here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Act) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
10. Relationship with Struck Off Companies
Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details:-
|
Name of the Struck off Company |
Nature of transactions with struck-off Company |
Balance outstanding |
Relationship with |
|
Investments in securities |
|||
|
Receivables |
|||
|
Payables |
|||
|
Shares held by stuck off company |
|||
|
Other outstanding balances (to be specified) |
11. Financial Ratios
(a) Current Ratio,
(b) Debt-Equity Ratio,
(c) Debt Service Coverage Ratio,
(d) Return on Equity Ratio,
(e) Inventory turnover ratio,
(f) Trade Receivables turnover ratio,
(g) Trade payables turnover ratio,
(h) Net capital turnover ratio,
(i) Net profit ratio,
(j) Return on Capital employed,
(k) Return on investment.
The company shall explain the items included in numerator and denominator for computing the above ratios. Further explanation shall be provided for any change in the ratio by more than 25% as compared to the preceding year.
12. Companies Act related compliances
- Registration and Satisfaction of charge: Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.
- Investment layers: Where the company has not complied with the investment upto maximum number of layers, the name and CIN of the companies beyond the specified layers and the relationship extent of holding of the company in such downstream companies shall be disclosed.
- Scheme of arrangements: Where any Scheme of Arrangements has been approved by the Competent Authority, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company in accordance with the Scheme and in accordance with accounting standards and deviation in this regard shall be explained.
13. Undisclosed Income
The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961 unless there is immunity for disclosure under any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.
14. Corporate Social Responsibility (CSR)
Where the company is covered under section 135 of the companies act, the following shall be disclosed with regard to CSR activities
(a) amount required to be spent by the company during the year,
(b) amount of expenditure incurred
(c) shortfall at the end of the year,
(d) total of previous years shortfall
(e) reason for shortfall,
(f) nature of CSR activities
(g) details of related party transactions e g contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard,
(h) where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately.
15. Crypto Currency or Virtual Currency
Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed:
(a) profit or loss on transactions involving Crypto currency or Virtual Currency
(b) amount of currency held as at the reporting date,
(c) deposits or advances from any person for the purpose of trading or investing in Crypto Currency/virtual currency
CAclubindia
