Many well known companies (E.g Tata Steel Ltd - Schedule 3: Interest (Page No 124 of the Annual report for the year ended 31.3.2007) in their Schedules forming part of the accounts show Interest paid Less Interest Received. Does this practice conform to Schedule VI to the Companies Act 1956? Or if ICAI has recommended this practice in any of its publications, if so where? ROC's are also raising this question?
Learned Club Members are requested to enlighten me on this practice.
05 March 2008
COMPANY'S ACT SCHEDULE VI PART I,II,III REQUIRE COMPLETE DISCLOSURES. BUT AT SAME TIME THERE IS NO BAR ON NETTING OF RECEIPTS AGAINST PAYMENTS UNDER SAME HEAD. SO THIS IS ACCEPTABLE AND HARMLESS PRACTICE. R.V.RAO
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