Deficiency in the format of company balance sheet

Except deferred tax ,the provisions under the head  Non-Current Liabilities  on the face of company balance sheet   are all long term and no revenue transactions are covered  and not even  the provision  "other Non-current liabilities "are covered. Where as the provisions under the head Non-Current Assets in the balance sheet covers both long term as well as short term like Non-current investments and Other Non- current Assets . There can be non-current liabilites of both long term as well as short term transactions incase of any company  for reporting  the same on the face   of balance  sheet . The investment in current assets will be reported under the head "Current Assets and the corresponding liabilty will be reported under the head' Current Liabilities "  as the same is payable ondemand and short term  by nature of investment. In case there is investment in capoital market from the banks working capital loans, the investement being non-current by nature of company business , the amount of investment will be reported as "Non-current investment"   under the head Non-current Assets on the face of balance sheet. Where the corresponding liability should be reported on the face of balance sheet as the same is no more part of  current liabilty  in the absence of provision  like "Other Non-cunnet liabilities under the head Non-Current Liabilities.

In the present scenario, the asset of investment in capital market is reported under the head Non-Current Assets and the corresponding liability of bank loan  is reported under the head Current Liabilities on the face of balnce sheet. Hence there is omission of fact  by not disclosing the same under the head Non -Current Liabilities and the same is concealed in the secured loans under the head Current Liabilities. The omission and conealment of fact on the face of balance sheet amounts to a misleading statement that would lead to fraud under the companies Act.

Because of deficiency in the format of company balance sheet,the stake holders of balance sheet are being cheated , deceived and misguided by not disclosing the fact of bank funds diversion on the face of balance sheet.  This practice  has been going on for sevral years and indirectly the auditors are encouraging the practioce of funds diversion that has eaten away the networth of the banks as on date.