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GOVERNMENT OF INDIA
Ministry of Corporate Affairs
NOTICE INVITING COMMENTS ON THE REVISED SCHEDULE III TO THE
COMPANIES ACT, 2013 FOR A COMPANY WHOSE FINANCIAL STATEMENTS
ARE DRAWN UP IN COMPLIANCE OF COMPANIES (INDIAN ACCOUNTING
STANDARDS) RULES 2015 AND AS AMENDED FROM TIME TO TIME
Dated the 9th February, 2016
1. The draft revised Schedule III to the Companies Act, 2013 for a company whose
financial statements are drawn up in compliance of companies (Indian Accounting
Standards) Rules, 2015 and as amended from time to time has been placed on the
Ministry’s website at www.mca.gov.in. It has been decided to invite
suggestions/comments on the above draft.
3. Suggestions/comments on above mentioned draft along with justification in brief
may be sent latest by 23rd February, 2016 through email at sch3@mca.gov.in. It is
requested that the name, Telephone number and address of the sender should be
indicated clearly at the time of sending suggestions/comments.
Name, Address, Contact No. of Stake holder __________________
SL.No Para No. Suggestion Justification
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MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, , 2016
G.S.R. (E).—In exercise of the powers conferred by Sub Section (1) of Section 467 of the
Companies Act,2013 (18 of 2013), the Central Government hereby makes the following
amendments to schedule III of the said Act with effect from the date of publication of this
notification in the Official Gazette, namely:-
1. In Schedule III, before the heading General instructions for preparation of Balance Sheet
and Statements of Profit and Loss of a Company the following shall be inserted:
Division I
Financial Statements for a company whose Financial Statements are required to comply with the
Companies (Accounting Standards) Rules, 2006.
2. In Schedule III, the following shall be inserted after the end of para 4 under the heading
General instructions for the preparation of consolidated financial statements:
Division II
Financial Statements for a company whose financial statements are drawn up in compliance of
Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time.
GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A
COMPANY required to comply with Ind AS.
1. Every company to which Indian Accounting Standards ( Ind AS) notified under the
Companies (Indian Accounting Standards) Rules 2015 apply, shall prepare its financial
statements in accordance with this Schedule or as near thereto as circumstances admit.
2. Where compliance with the requirements of the Act including Indian Accounting
Standards (except the option of presenting assets and liabilities in the order of liquidity as
provided by the relevant Ind AS) as applicable to the companies require any change in
treatment or disclosure including addition, amendment, substitution or deletion in the
head/sub-head or any changes inter se, in the financial statements or statements forming
part thereof, the same shall be made and the requirements of this Schedule shall stand
modified accordingly.
3. The disclosure requirements specified in this Schedule are in addition to and not in
substitution of the disclosure requirements specified in the Indian Accounting Standards.
Additional disclosures specified in the Indian Accounting Standards shall be made in the
Notes or by way of additional statement(s) unless required to be disclosed on the face of
the Financial Statements. Similarly, all other disclosures as required by the Companies
Act shall be made in the Notes in addition to the requirements set out in this Schedule.
4. (i) Notes shall contain information in addition to that presented in the Financial
Statements and shall provide where required (a) narrative descriptions or disaggregations
of items recognized in those statements and (b) information about items that do not
qualify for recognition in those statements.
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(ii) Each item on the face of the Balance Sheet, Statement of Changes in Equity and
Statement of Profit and Loss shall be cross-referenced to any related information in
the Notes. In preparing the Financial Statements including the Notes, a balance shall
be maintained between providing excessive detail that may not assist users of
Financial Statements and not providing important information as a result of too much
aggregation.
5. Depending upon the turnover of the company, the figures appearing in the Financial
Statements may be rounded off as below:
Turnover Rounding off
(i) less than one hundred crore
rupees
To the nearest hundreds, thousands,
lakhs or millions, or decimals thereof.
(ii) one hundred crore rupees or
more
To the nearest, lakhs, millions or crores,
or decimals thereof.
Once a unit of measurement is used, it should be used uniformly in the Financial
Statements.
6. Financial Statements shall contain the corresponding amounts (comparatives) for the
immediately preceding reporting period for all items shown in the Financial Statements
including Notes except in the case of first Financial Statements laid before the company
after incorporation.
7. Financial Statements shall disclose all ‘material’ items, i.e., the items if they could,
individually or collectively, influence the economic decisions that users make on the basis
of the financial statements. Materiality depends on the size and nature of the item judged
in the particular circumstances.
8. For the purpose of this Schedule, the terms used herein shall be as per the Indian
Accounting Standards.
9. Where any Act or Regulation requires specific disclosures to be made in the standalone
financial statements of a company, the said disclosures shall be made in addition to those
required under this Schedule.
Note: This Schedule sets out the minimum requirements for disclosure on the face of the
Financial Statements, i.e., Balance Sheet, Statement of Changes in Equity for the
period, the Statement of Profit and Loss for the period (The term ‘Statement of
Profit and Loss’ has the same meaning as ‘Profit and Loss Account’) and Notes.
Cash flow statement shall be prepared, where applicable, in accordance with the
requirements of the relevant Indian Accounting Standard.
Line items, sub-line items and sub-totals shall be presented as an addition or
substitution on the face of the Financial Statements when such presentation is
relevant to an understanding of the company’s financial position or performance
or to cater to industry/sector-specific disclosure requirements or when required
for compliance with the amendments to the Companies Act or under the Indian
Accounting Standards.
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PART I –BALANCE SHEET
Name of the Company…………………….
Balance Sheet as at ………………………
(Rupees in…………)
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Particulars Note No. Figures as at the
end of current
reporting period
Figures as at
the end of the
previous
reporting
period
1 2 3
(1)
(2)
ASSETS
Non-current assets
(a) Property, Plant and Equipment
(b) Capital work-in-progress
(c) Investment Property
(d) Goodwill
(e) Other Intangible assets
(f) Intangible assets under development
(g) Biological Assets other than bearer
plants
(h) Financial Assets
(i) Investments
(ii) Trade receivables
(iii) Loans
(iv) Others (to be specified)
(i) Deferred tax assets (net)
(j) Other non-current assets
Current assets
(a) Inventories
(b) Financial Assets
(i) Investments
(ii) Trade receivables
(iii) Cash and cash equivalents
(iv) Bank balances other than (iii) above
(v) Loans
(vi) Others (to be specified)
(c) Current Tax Assets (Net)
(d) Other current assets
Total Assets
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(1)
(2)
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital
(b) Other Equity
LIABILITIES
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings
(ii) Trade payables
(iii) Other financial liabilities (other than
those specified in (b) below, to be
specified)
(b) Provisions
(c) Deferred tax liabilities (Net)
(d) Other non-current liabilities
Current liabilities
(a) Financial Liabilities
(i) Borrowings
(ii) Trade payables
(iii) Other financial liabilities (other than
those specified in (c) below)
(b) Other current liabilities
(c) Provisions
(d) Current Tax Liabilities (Net)
Total Equity and Liabilities
See accompanying notes to the financial statements
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STATEMENT OF CHANGES IN EQUITY
Name of the Company…………………….
Statement of Changes in Equity for the period ended ……………………
(Rupees in………………)
a. Equity Share Capital
Balance at the beginning of the
reporting period
Changes in equity share capital
during the year
Balance at the end of the reporting
period
b. Other Equity
Share
applicatio
n money
pending
allotment
Equity
componen
t of
compoun
d
financial
instrumen
ts
Reserves and Surplus Items of Other Comprehensive Income
Money
receive
d
against
share
warrant
s
Total Capital
Reserv
e
Securitie
s
Premiu
m
Reserve
Other
Reserve
s
(specify
nature)
Retaine
d
Earning
s
Debt
instruments
through
Other
Comprehensi
ve Income
Equity
Instruments
through
Other
Comprehensi
ve Income
Effective
portion of
Cash
Flow
Hedges
Revaluati
on
Surplus
Exchange
differences
on
translating
the
financial
statements
of a
foreign
operation
Other items
of Other
Comprehens
ive Income
(specify
nature)
Balance
at the
beginnin
g of the
reporting
period
Changes
in
8
accountin
g
policy/pr
ior
period
errors
Restat
ed
balanc
e at
the
beginn
ing of
the
reporti
ng
period
Total
Compreh
ensive
Income
for the
year
Dividend
s
Transfer
to
retained
earnings
Any
other
change
(to be
specified)
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Balance
at the
end of
the
reporting
period
Note: Remeasurment of net defined benefit plans, fair value changes relating to own credit risk and share of Other Comprehensive Income
in Associates and Joint Ventures shall be recognised as a part of retained earnings with separate disclosure of such items alongwith
the relevant amounts in the Notes.
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Notes
GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET
1. An entity shall classify an asset as current when:
(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating
cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) the asset is cash or a cash equivalent unless the asset is restricted from being
exchanged or used to settle a liability for at least twelve months after the
reporting period.
An entity shall classify all other assets as non-current.
2. The operating cycle of an entity is the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents. When the entity’s normal
operating cycle is not clearly identifiable, it is assumed to be twelve months.
3. An entity shall classify a liability as current when:
(a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting period;
or
(d) it does not have an unconditional right to defer settlement of the liability for at
least twelve months after the reporting period. Terms of a liability that could, at
the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
An entity shall classify all other liabilities as non-current.
4. A receivable shall be classified as a ‘trade receivable’ if it is in respect of the amount
due on account of goods sold or services rendered in the normal course of business.
5. A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on
account of goods purchased or services received in the normal course of business.
6. A company shall disclose the following in the Notes:
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A. Non-Current Assets
I. Property, Plant and Equipment
(i) Classification shall be given as:
(a) Land.
(b) Buildings.
(c) Plant and Equipment.
(d) Furniture and Fixtures.
(e) Vehicles.
(f) Office equipment.
(g) Bearer Plants
(h) Others (specify nature).
(ii) Assets under lease shall be separately specified under each class of assets.
(iii) A reconciliation of the gross and net carrying amounts of each class of
assets at the beginning and end of the reporting period showing additions,
disposals, acquisitions through business combinations and other
adjustments and the related depreciation and impairment losses/reversals
shall be disclosed separately.
II. Investment Property
A reconciliation of the gross and net carrying amounts of each class of property at
the beginning and end of the reporting period showing additions, disposals,
acquisitions through business combinations and other adjustments and the related
amortization and impairment losses/reversals shall be disclosed separately.
III Goodwill
A reconciliation of the gross and net carrying amount of goodwill at the beginning
and end of the reporting period showing additions, impairments, disposals and
other adjustments.
IV. Other Intangible assets
(i) Classification shall be given as:
(a) Brands /trademarks.
(b) Computer software.
(c) Mastheads and publishing titles.
(d) Mining rights.
(e) Copyrights, patents, other intellectual property rights, services
and operating rights.
(f) Recipes, formulae, models, designs and prototypes.
(g) Licenses and franchises.
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(h) Others (specify nature).
(ii) A reconciliation of the gross and net carrying amounts of each class of
assets at the beginning and end of the reporting period showing additions,
disposals, acquisitions through business combinations and other
adjustments and the related amortization and impairment losses/reversals
shall be disclosed separately.
V. Biological Assets other than bearer plants
A reconciliation of the carrying amounts of each class of assets at the beginning
and end of the reporting period showing additions, disposals, acquisitions
through business combinations and other adjustments shall be disclosed
separately.
VI. Investments
(i) Investments shall be classified as:
(a) Investments in Equity Instruments;
(b) Investments in Preference Shares;
(c) Investments in Government or trust securities;
(d) Investments in debentures or bonds;
(e) Investments in Mutual Funds;
(f) Investments in partnership firms;
(g) Other investments (specify nature).
Under each classification, details shall be given of names of the bodies corporate
that are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) structured
entities, in whom investments have been made and the nature and extent of the
investment so made in each such body corporate (showing separately
investments which are partly-paid). Investments in partnership firms alongwith
names of the firms, their partners, total capital and the shares of each partner shall
be disclosed separately.
(ii) The following shall also be disclosed:
(a) Aggregate amount of quoted investments and market value thereof;
(b) Aggregate amount of unquoted investments;
(c) Aggregate amount of impairment in value of investments.
VII.Trade Receivables
(i) Trade receivables shall be sub-classified as:
(a) Secured, considered good;
(b) Unsecured considered good;
(c) Doubtful.
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(ii) Allowance for bad and doubtful debts shall be disclosed under the relevant
heads separately.
(iii) Debts due by directors or other officers of the company or any of them
either severally or jointly with any other person or debts due by firms or
private companies respectively in which any director is a partner or a
director or a member should be separately stated.
VIII. Loans
(i) Loans shall be classified as:
(a) Security Deposits;
(b) Loans to related parties (giving details thereof);
(c) Other loans (specify nature).
(ii) The above shall also be separately sub-classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.
(iii) Allowance for bad and doubtful loans shall be disclosed under the relevant
heads separately.
(iv) Loans due by directors or other officers of the company or any of them
either severally or jointly with any other persons or amounts due by firms
or private companies respectively in which any director is a partner or a
director or a member should be separately stated.
IX.Other non-current assets
Other non-current assets shall be classified as-
(i) Capital Advances;
(ii) Advances other than capital advances;
1. Advances other than capital advances shall be classified as:
(a) Security Deposits;
(b) Advances to related parties (giving details thereof);
(c) Other advances (specify nature).
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2. Advances to directors or other officers of the company or any of
them either severally or jointly with any other persons or advances
to firms or private companies respectively in which any director is a
partner or a director or a member should be separately stated.
(iii) Bank deposits with more than 12 months maturity;
(iv) Others (specify nature).
B. Current Assets
I. Inventories
(i) Inventories shall be classified as:
(a) Raw materials;
(b) Work-in-progress;
(c) Finished goods;
(d) Stock-in-trade (in respect of goods acquired for trading);
(e) Stores and spares;
(f) Loose tools;
(g) Others (specify nature).
(ii) Goods-in-transit shall be disclosed under the relevant sub-head of
inventories.
(iii) Mode of valuation shall be stated.
II. Investments
(i) Investments shall be classified as:
(a) Investments in Equity Instruments;
(b) Investment in Preference Shares;
(c) Investments in government or trust securities;
(d) Investments in debentures or bonds;
(e) Investments in Mutual Funds;
(f) Investments in partnership firms;
(g) Other investments (specify nature).
Under each classification, details shall be given of names of the bodies
corporate that are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv)
structured entities, in whom investments have been made and the nature
and extent of the investment so made in each such body corporate
(showing separately investments which are partly-paid).
(ii) The following shall also be disclosed
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(a) Aggregate amount of quoted investments and market value
thereof;
(b) Aggregate amount of unquoted investments;
(c) Aggregate amount of impairment in value of investments.
III. Trade Receivables
(i) Aggregate amount of Trade Receivables outstanding for a period
exceeding six months from the date they are due for payment should be
separately stated.
(ii) Trade receivables shall be sub-classified as:
(a) Secured, considered good;
(b) Unsecured considered good;
(c) Doubtful.
(iii) Allowance for bad and doubtful debts shall be disclosed under the
relevant heads separately.
(iv) Debts due by directors or other officers of the company or any of them
either severally or jointly with any other person or debts due by firms or
private companies respectively in which any director is a partner or
adirector or a member should be separately stated.
IV. Cash and cash equivalents
Cash and cash equivalents shall be classified as:
a. Balances with Banks (of the nature of cash and cash equivalents);
b. Cheques, drafts on hand;
c. Cash on hand;
d. Others (specify nature).
V. Loans
(i) Loans shall be classified as:
(a) Security deposits;
(b) Loans to related parties (giving details thereof);
(c) Others (specify nature).
(ii) The above shall also be sub-classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.
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(iii) Allowance for bad and doubtful loans shall be disclosed under the
relevant heads separately.
(iv) Loans due by directors or other officers of the company or any of them
either severally or jointly with any other person or amounts due by firms
or private companies respectively in which any director is a partner or a
director or a member shall be separately stated.
VI. Other current assets (specify nature).
This is an all-inclusive heading, which incorporates current assets that do not fit
into any other asset categories.
Other current assets shall be classified as-
(i) Advances other than capital advances
1. Advances other than capital advances shall be classified as:
(a) Security Deposits;
(b) Advances to related parties (giving details thereof);
(c) Other advances (specify nature).
2. Advances to directors or other officers of the company or any of them
either severally or jointly with any other persons or advances to firms
or private companies respectively in which any director is a partner or
a director or a member should be separately stated.
(ii) Others (specify nature)
C. The following disclosures with regard to cash and bank balances shall be made:
a. Earmarked balances with banks (for example, for unpaid dividend) shall be
separately stated.
b. Balances with banks to the extent held as margin money or security against
the borrowings, guarantees, other commitments shall be disclosed
separately.
c. Repatriation restrictions, if any, in respect of cash and bank balances shall be
separately stated.
D. Equity
I. Equity Share Capital
for each class of equity share capital:
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(a) the number and amount of shares authorized;
(b) the number of shares issued, subscribed and fully paid, and subscribed but
not fully paid;
(c) par value per share;
(d) a reconciliation of the number of shares outstanding at the beginning and
at the end of the period;
(e) the rights, preferences and restrictions attaching to each class of shares
including restrictions on the distribution of dividends and the repayment
of capital;
(f) shares in respect of each class in the company held by its holding company
or its ultimate holding company including shares held by or by
subsidiaries or associates of the holding company or the ultimate holding
company in aggregate;
(g) shares in the company held by each shareholder holding more than 5
percent shares specifying the number of shares held;
(h) shares reserved for issue under options and contracts/commitments for
the sale of shares/disinvestment, including the terms and amounts;
(i) For the period of five years immediately preceding the date as at which
the Balance Sheet is prepared:
Aggregate number and class of shares allotted as fully paid up
pursuant to contract(s) without payment being received in cash.
Aggregate number and class of shares allotted as fully paid up by
way of bonus shares.
Aggregate number and class of shares bought back.
(j) Terms of any securities convertible into equity shares issued along with the
earliest date of conversion in descending order starting from the farthest
such date.
(k) Calls unpaid (showing aggregate value of calls unpaid by directors and
officers)
(l) Forfeited shares (amount originally paid up)
II. Other Equity
(i) ‘Other Reserves’ shall be classified in the notes as:
(a) Capital Redemption Reserve;
(b) Debenture Redemption Reserve;
(c) Share Options Outstanding Account;
(d) Others– (specify the nature and purpose of each reserve and the
amount in respect thereof);
(Additions and deductions since last balance sheet to be shown under each
of the specified heads)
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(ii) Retained Earnings represents surplus i.e. balance of the relevant column
in the Statement of Changes in Equity.
(iii) A reserve specifically represented by earmarked investments shall
disclose the fact that it is so represented.
(iv) Debit balance of Statement of Profit and Loss shall be shown as a negative
figure under the head ‘retained earnings’. Similarly, the balance of ‘Other
Equity’, after adjusting negative balance of retained earnings, if any, shall
be shown under the head ‘Other Equity’ even if the resulting figure is in
the negative.
(v) Under the sub-head ‘Other Equity’, disclosure shall be made for the nature
and amount of each item.
E. Non-Current Liabilities
I. Borrowings
(i) Borrowings shall be classified as:
(a) Bonds/debentures
(b) Term loans
from banks.
from other parties.
(c) Deferred payment liabilities.
(d) Deposits.
(e) Loans from related parties.
(f) Long term maturities of finance lease obligations
(g) Liability component of compound financial instruments
(h) Other loans (specify nature).
(ii) Borrowings shall further be sub-classified as secured and unsecured. Nature
of security shall be specified separately in each case.
(iii) Where loans have been guaranteed by directors or others, the aggregate
amount of such loans under each head shall be disclosed.
(iv) Bonds/debentures (along with the rate of interest, and particulars of
redemption or conversion, as the case may be) shall be stated in descending
order of maturity or conversion, starting from farthest redemption or
conversion date, as the case may be. Where bonds/debentures are
redeemable by installments, the date of maturity for this purpose must be
reckoned as the date on which the first installment becomes due.
(v) Particulars of any redeemed bonds/ debentures which the company has power
to reissue shall be disclosed.
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(vi) Terms of repayment of term loans and other loans shall be stated.
(vii) Period and amount of default as on the balance sheet date in repayment of
borrowings and interest shall be specified separately in each case.
II. Provisions
The amounts shall be classified as:
(a) Provision for employee benefits.
(b) Others (specify nature).
III. Other non-current liabilities
(a) Advances
(b) Others (specify nature)
F. Current Liabilities
I. Borrowings
(i) Borrowings shall be classified as:
(a) Loans repayable on demand
from banks.
from other parties.
(b) Loans from related parties.
(c) Deposits.
(d) Other loans (specify nature).
(ii) Borrowings shall further be sub-classified as secured and unsecured. Nature
of security shall be specified separately in each case.
(iii) Where loans have been guaranteed by directors or others, the aggregate
amount of such loans under each head shall be disclosed.
(iv) Period and amount of default as on the balance sheet date in repayment of
borrowings and interest, shall be specified separately in each case.
II. Other Financial Liabilities
Other Financial liabilities shall be classified as:
(a) Current maturities of long-term debt;
(b) Current maturities of finance lease obligations;
(c) Interest accrued;
(d) Unpaid dividends;
(e) Application money received for allotment of securities to the extent
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refundable and interest accrued thereon;
(f) Unpaid matured deposits and interest accrued thereon;
(g) Unpaid matured debentures and interest accrued thereon;
(h) Others (specify nature).
‘Long term debt’ is a borrowing having a period of more than twelve months at the
time of origination
III. Other current liabilities
The amounts shall be classified as:
(a) Revenue received in advance;
(b) Other advances (specify nature);
(c) Others (specify nature);
IV. Provisions
The amounts shall be classified as:
(i) Provision for employee benefits.
(ii) Others (specify nature).
G. The presentation of liabilities associated with group(s) of assets classified as held for
sale and non-current assets classified as held for sale shall be in accordance with the
relevant Indian Accounting Standards (Ind ASs).
H. Contingent Liabilities and Commitments
(to the extent not provided for)
(i). Contingent Liabilities shall be classified as:
(a) Claims against the company not acknowledged as debt;
(b) Guarantees excluding financial guarantees;
(c) Other money for which the company is contingently liable.
(ii). Commitments shall be classified as:
(a) Estimated amount of contracts remaining to be executed on capital
account and not provided for;
(b) Uncalled liability on shares and other investments partly paid;
(c) Other commitments (specify nature).
I. The amount of dividends proposed to be distributed to equity and preference
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shareholders for the period and the related amount per share shall be disclosed
separately. Arrears of fixed cumulative dividends on irredeemable preference shares
shall also be disclosed separately.
J. Where in respect of an issue of securities made for a specific purpose the whole or
part of amount has not been used for the specific purpose at the Balance Sheet date,
there shall be indicated by way of note how such unutilized amounts have been used
or invested.
7. When a company applies an accounting policy retrospectively or makes a restatement of
items in the financial statements or when it reclassifies items in its financial statements, the
company shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the
earliest comparative period from which the above adjustments are made.
8. Share application money pending allotment shall be classified into equity or liability in
accordance with relevant Indian Accounting Standards. Share application money to the
extent not refundable shall be shown under the head Equity and share application money
to the extent refundable shall be separately shown under ‘Other current liabilities’.
9. Preference shares shall be classified and presented as ‘Equity’ or ‘Liability’ in accordance
with the requirements of the relevant Indian Accounting Standards. Accordingly, the
disclosure and presentation requirements in this regard applicable to the relevant class of
equity or liability shall be applicable mutatis mutandis to the preference shares. For instance,
redeemable preference shares shall be classified and presented under ‘non-current
liabilities’ as ‘borrowings’ and the disclosure requirements in this regard applicable to such
borrowings shall be applicable mutatis mutandis to redeemable preference shares.
10. Compound financial instruments such as convertible debentures, where split into equity
and liability components, as per the requirements of the relevant Indian Accounting
Standards, shall be classified and presented under the relevant heads in ‘Equity’ and
‘Liabilities’
11. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in
accordance with the relevant Indian Accounting Standards.
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PART II – STATEMENT OF PROFIT AND LOSS
Name of the Company…………………….
Statement of Profit and Loss for the period ended ………………………
(Rupees in…………)
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Particulars Note No. Figures
for the
current
reporting
period
Figures
for the
previous
reporting
period
I Revenue From Operations
II
Other Income
III Total Income (I+II)
IV
EXPENSES
Cost of materials consumed
Purchases of Stock-in-Trade
Changes in inventories of finished
goods, Stock-in -Trade and work-
in-progress
Employee benefits expense
Finance costs
Depreciation and amortization
expense
Other expenses
Total expenses (IV)
V Profit/(loss) before exceptional
items and tax (I- IV)
VI Exceptional Items
VII Profit/(loss) before tax
(V-VI)
VIII Tax expense:
(1) Current tax
(2) Deferred tax
IX Profit (Loss) for the period from
continuing operations (VII-VIII)
X Profit/(loss) from discontinued
operations
XI Tax expense of discontinued
operations
XII Profit/(loss) from Discontinued
operations (after tax) (X-XI)
XIII Profit/(loss) for the period (IX+XII)
24
XIV
Other Comprehensive Income
A (i) Items that will not be
reclassified to profit or loss
(ii) Income tax relating to items
that will not be reclassified
to profit or loss
B (i) Items that will be reclassified
to profit or loss
(ii) Income tax relating to items
that will be reclassified to
profit or loss
XV Total Comprehensive Income for
the period (XIII+XIV)(Comprising
Profit (Loss) and Other
Comprehensive Income for the
period)
XVI Earnings per equity share (for
continuing operation):
(1) Basic
(2) Diluted
XVII Earnings per equity share (for
discontinued operation):
(1) Basic
(2) Diluted
XVIII Earnings per equity share(for
discontinued & continuing
operations)
(1) Basic
(2) Diluted
See accompanying notes to the financial statements
Notes
GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS
1. The provisions of this Part shall apply to the income and expenditure account, in like
manner as they apply to a Statement of Profit and Loss.
2. The Statement of Profit and Loss shall include:
(1) Profit or loss for the period;
(2) Other Comprehensive Income for the period.
The sum of (1) and (2) above is ‘Total Comprehensive Income’.
3. Revenue from operations shall disclose separately in the notes
(a) sale of products (including Excise Duty);
25
(b) sale of services;
(c) other operating revenues;
4. Finance Costs
Finance costs shall be classified as:
(a) interest;
(b) dividend on redeemable preference shares;
(c) exchange differences regarded as an adjustment to borrowing costs;
(d) other borrowing costs (specify nature).
5 Other income
Other income shall be classified as:
(a) Interest Income ;
(b) Dividend Income;
(c) Other non-operating income (net of expenses directly attributable to such
income).
6. Other Comprehensive Income shall be classified into:
(A) Items that will not be reclassified to profit or loss
(i) Changes in revaluation surplus;
(ii) Remeasurements of the defined benefit plans;
(iii) Equity Instruments through Other Comprehensive Income;
(iv) Fair value changes relating to own credit risk;
(v) Share of Other Comprehensive Income in Associates and Joint Ventures, to
the extent not to be classified into profit or loss;
(vi) Others (specify nature).
(B) Items that will be reclassified to profit or loss
(i) Exchange differences in translating the financial statements of a foreign
operation;
(ii) Debt Instruments through Other Comprehensive Income;
(iii) The effective portion of gains and loss on hedging instruments in a cash
flow hedge;
(iv) Share of Other Comprehensive Income in Associates and Joint Ventures, to
the extent to be classified into profit or loss;
(v) Others (specify nature).
7. Additional Information
A Company shall disclose by way of notes, additional information regarding aggregate
expenditure and income on the following items:
26
(a) Employee Benefits expense [showing separately (i) salaries and wages, (ii) contribution
to provident and other funds, share based payments to employees, (iv) staff welfare
expenses].
(b) Depreciation and amortization expense;
(c) Any item of income or expenditure which exceeds one per cent of the revenue from
operations or Rs.10,00,000, whichever is higher, in addition to the consideration of
‘materiality’ as specified in clause 7 of the General Instructions for Preparation of
Financial Statements of a Company.
(d) Interest Income;
(e) Interest Expense;
(f) Dividend income;
(g) Net gain/loss on sale of investments;
(h) Net gain/loss on foreign currency transaction and translation (other than considered
as finance cost);
(i) Payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law
matters, (d) for other services, (e) for reimbursement of expenses;
(j) In case of companies covered under section 135, amount of expenditure incurred on
corporate social responsibility activities;
(k) Details of items of exceptional nature;
8. Regulatory Deferral Account Balances shall be presented in the Statement of Profit or Loss
in accordance with the relevant Indian Accounting Standards.
PART III- GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED
FINANCIAL STATEMENTS
1. Where a company is required to prepare Consolidated Financial Statements, i.e., consolidated
balance sheet, consolidated statement of changes in equity and consolidated statement of
profit and loss, the company shall mutatis mutandis follow the requirements of this
Schedule as applicable to a company in the preparation of balance sheet, statement of
changes in equity and statement of profit and loss. In addition, the consolidated financial
statements shall disclose the information as per the requirements specified in the
applicable Indian Accounting Standards notified under the Companies (Indian
Accounting Standards) Rules 2015, including the following:
(i) Profit or loss attributable to ‘non-controlling interest’ and to ‘owners of the parent’ in
the statement of profit and loss shall be presented as allocation for the period.
Further, ‘total comprehensive income’ for the period attributable to ‘non-controlling
interest’ and to ‘owners of the parent’ shall be presented in the statement of profit
and loss as allocation for the period. The aforesaid disclosures for ‘total
comprehensive income’ shall also be made in the statement of changes in equity. In
addition to the disclosure requirements in the Indian Accounting Standards, the
aforesaid disclosures shall also be made in respect of ‘other comprehensive income’.
27
(ii) ‘Non-controlling interests’ in the Balance Sheet and in the Statement of Changes in
Equity, within equity, shall be presented separately from the equity of the ‘owners
of the parent’.
(iii) Investments accounted for using the equity method.
24
2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information:
Name of the entity in the Group Net Assets, i.e., total
assets minus total
liabilities
Share in profit or
loss
Share in other
comprehensive income
Share in total
comprehensive income
As % of
consolidate
d net assets
Amoun
t As % of
consolidat
ed profit
or loss
Amoun
t
As % of
consolidated
other
comprehensiv
e income
Amoun
t
As % of total
comprehensiv
e income
Amoun
t
Parent
Subsidiaries
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Non-controlling Interests in all
subsidiaries
Associates (Investment as per the equity
method)
Indian
1.
25
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Joint Ventures(as per proportionate
consolidation/investment as per the
equity method)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Total
3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements.
4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated
financial statements along with the reasons of not consolidating.
26
[F.No. 17/62/2015-CL-V]
AMARDEEP S. BHATIA, Jt. Secy.
Note: Schedule III of the Companies Act, 2013 came into force with effect from the 1st April, 2014 vide Notification S.O.902 (E),
dated 26-3-2014.