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Exposure Draft of the Ind AS-compliant Schedule III to the Companies Act, 2013, for companies other than NBFCs (Comments to be received by January 20, 2015)
December, 30th 2014
                             
                      Exposure Draft

          Ind AS-compliant Schedule III
            to the Companies Act, 2013
For companies other than Non-Banking Finance companies (NBFCs)



       (Last Date for comments: January 20, 2015)




                             Issued by

                    Accounting Standards Board
         The Institute of Chartered Accountants of India




                                                             1
                                       Exposure Draft 

Ind AS-compliant Schedule III to the Companies Act, 2013-For companies other
than Non-Banking Finance Companies (NBFCs)

Following is the Exposure Draft of the Ind AS-compliant Schedule III to the Companies Act,
2013, for companies other than Non-Banking Finance Companies (NBFCs) issued by the
Accounting Standards Board of the Institute of Chartered Accountants of India, for comments.
The Board invites comments on any aspect of this Exposure Draft. Comments are most helpful if
they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear
rationale and, where applicable, provide a suggestion for alternative wording.

Comments can be submitted using one of the following methods, so as to be received not later
than January 20, 2015:

   1. Electronically: Click on http://www.icai.org/comments/asb/ to submit comments online.
   2. Email: Comments can be sent to commentsasb@icai.in
   3. Postal: Secretary, Accounting Standards Board, The Institute of Chartered Accountants
      of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi ­ 110 002,.

Further clarifications on any aspect of this Exposure Draft may be sought by e-mail to
nikita.bothra@icai.in




                                                                                               2
GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT
                   OF PROFIT AND LOSS OF A COMPANY


     GENERAL INSTRUCTIONS


1.   This Schedule shall apply to companies to which Indian Accounting Standards notified
     under Part I of the Companies (Accounting Standards) Rules _____- apply.


2.   Where compliance with the requirements of the Act including Indian Accounting
     Standards 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 interse, in the financial statements or statements forming part thereof, the
     same shall be made and the requirements of the Schedule III 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 Accounting Standards
     referred to in the Companies Act, 2013 (termed as `Indian Accounting Standards').
     Additional disclosures specified in the Accounting Standards shall be made in the notes
     to accounts or by way of additional statement 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 to accounts in addition to the requirements
     set out in this Schedule.

4.   (i)    Notes to accounts 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.

     (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 to accounts. In preparing the Financial Statements including the notes to
            accounts, 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 To the nearest hundreds, thousands,
            rupees                      lakhs or millions, or decimals thereof.
        (ii) one hundred crore rupees or To the nearest, lakhs, millions or crores,
             more                        or decimals thereof.



                                                                                              3
        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.      For the purpose of this Schedule, the terms used herein shall be as per the Indian
        Accounting Standards.





Note:          This Schedule sets out the minimum requirements for disclosure on the face of
               the Balance Sheet at the end of the period, Statement of Changes in Equity for
               the period (if applicable), 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 (hereinafter referred to as "Financial Statements" for the
               purpose of this Schedule).

               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.




                                                                                              4
      PART I ­BALANCE SHEET

      Name of the Company.........................
      Balance Sheet as at ...........................
                                                                      (Rupees in............)
      Particulars                                       Note No.   Figures as at the Figures as at
                                                                   end of current the end of the
                                                                   reporting period previous
                                                                                            reporting
                                                                                            period
      1                                                            2                        3
I.    EQUITY AND LIABILITIES

(1)   Equity
      (a) Equity Share capital
      (b) Other Equity
          (i) Equity component of other financial
                instruments
          (ii) Retained Earnings
          (iii) Reserves
               1.1 Reserves representing unrealised
                    gains/losses
                 1.2 Other Reserves
          (iv) Money received against share warrants
          (v) Others

(2)   Share application money pending
      allotment

(3)   Non-current liabilities
      (a) Financial Liabilities

          (i) Long-term borrowings
          (ii) Other financial liabilities
      (b) Long-term provisions
      (c) Deferred tax liabilities (Net)
      (d) Other non-current liabilities

      Current liabilities
(4)   (a) Financial Liabilities
          (i) Short Term Borrowings
          (ii) Trade and other payables
          (iii) Other financial liabilities
      (b) Other current liabilities
      (c) Short-term provisions
      (d) Liabilities for Current Tax (Net)

(5)   Liabilities associated with group(s)of
      assets held for disposal


                                                                                                5
                                                       TOTAL
II.   ASSETS


(1)   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) Non-current investments
             (ii) Long-term loans and advances
             (iii) Others
        (i) Deferred tax assets (net)
        (j) Other non-current assets

(2)   Current assets
      (a) Inventories
      (b) Financial Assets
          (i) Current investments
          (ii) Trade and other receivables
          (iii) Cash and cash equivalents
          (iv) Short-term loans and advances

      (c) Assets for Current Tax (Net)
      (d) Other current assets

(3)   Non-current assets classified as held for
      sale



                                                       TOTAL
      See accompanying notes to the financial statements




                                                               6
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        Changes in equity share capital during   Balance at the end of the reporting period
                             reporting period Balance                                      the year
                                   xxx                                xxx                                                    xxx


b. Other Equity


                       Balance    at     Changes         in    Restated           Total                Dividends   Transfer to     Any other     Balance at the
                       the beginning     accounting            balance at the     Comprehensive                    retained        change (to    end of the
                       of        the     policy/prior          beginning     of   Income for the                   earnings        be            reporting
                       reporting         period errors         the    reporting   year                                             specified)    period
                       period                                  period

(i) Equity
     component of
     other financial        xxx                -----                  xxx               ----             -----        ----            xxx              xxx
     instruments
ii) Retained                xxx                xxx                    xxx               xxx             (xxx)         xxx             xxx              xxx
     Earnings
(iii) Reserves
1.1 Reserves
representing
unrealised
gains/losses

Debt    instruments
through       Other         xxx                -----                  xxx               xxx              -----        ----            xxx              xxx
Comprehensive
Income

                                                                                                                                                                7
Equity Instruments
through         Other
Comprehensive           xxx            -----            xxx             xxx           -----      ----         xxx          xxx
Income
Effective portion of
Cash Flow Hedges        xxx            -----            xxx             xxx           -----       ----        xxx          xxx
Re-valuation Surplus    xxx            -----            xxx             xxx           -----      (xxx)        xxx          xxx

Remeasurements of
the    net    defined
benefit Plans           xxx            -----            xxx             xxx           -----      ----         xxx          xxx
Exchange
differences        on
translating       the
financial statements
of      a     foreign
                        xxx            -----            xxx             xxx           -----      ----         xxx          xxx
operation
Others                  xxx             ----            xxx             xxx           -----      xxx          xxx          xxx
1.2 Other
Reserves (to be
specified
separately)
(iii) Total                                                             xxx                      xxx
Reserves                xxx             ----            xxx                           -----
(iv) Money
received against
share warrants          xxx            -----            xxx             ----          -----      ----         xxx          xxx
(v) Others              xxx            -----            xxx             xxx          (xxx)       xxx          xxx          xxx




Note: Any part of the reserves presented under Equity Instruments through Other Comprehensive Income which is realised in cash shall
be disclosed separately.




                                                                                                                                  8
Notes

  GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET

   1.    An asset shall be classified as current when it satisfies any of the following criteria:
         (a) it is expected to be realized in, or is intended for sale or consumption in, the
                company's normal operating cycle;
         (b) it is held primarily for the purpose of being traded;
         (c) it is expected to be realized within twelve months after the reporting date; or
         (d) it is cash or cash equivalent unless it is restricted from being exchanged or used
                to settle a liability for at least twelve months after the reporting date.

         All other assets shall be classified as non-current.

    2.   An operating cycle is the time between the acquisition of assets for processing and
         their realization in cash or cash equivalents. Where the normal operating cycle
         cannot be identified, it is assumed to have a duration of 12 months.

    3.   A liability shall be classified as current when it satisfies any of the following criteria:

         (a)         it is expected to be settled in the company's normal operating cycle;
         (b)         it is held primarily for the purpose of being traded;
         (c)         it is due to be settled within twelve months after the reporting date; or
         (d)         the company does not have an unconditional right to defer settlement of the
                     liability for at least twelve months after the reporting date. 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.

         All other liabilities shall be classified 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 to accounts:

         A. Equity Share Capital

               for each class of equity share capital:

               (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;
                                                                                                       9
   (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)

B. Other Equity


   (i)    Reserves under `Other Equity' shall be sub-classified as-
          1.1 Reserves representing unrealised gains/losses (Details to be given in
              statement of changes in equity)
           1.2 Other Reserves

  (ii)   `Other Reserves' shall be classified in the notes as:
           (a)     Capital Reserves;
           (b)     Capital Redemption Reserve;
           (c)     Securities Premium Reserve;
           (d)     Debenture Redemption Reserve;
           (e)     Share Options Outstanding Account
           (f)     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)

                                                                                 10
   (iii)    Retained Earnings represents surplus i.e. balance of the relevant column
            in the Statement of Changes in Equity.

   (iv)     A reserve specifically represented by earmarked investments shall be
            termed as a `fund'.

   (v)      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.

   (vi)     Under the sub-head `Other Equity', disclosure shall be made for the nature
            and amount of each item.

C. Long-Term Borrowings

   (i)     Long-term borrowings shall be classified as:

           (a)      Bonds/debentures
           (b)      Term loans
                     from banks.
                     from other parties.
           (c)      Deferred payment liabilities.
           (d)      Deposits.
           (e)      Loans and advances from related parties.
           (f)      Long term maturities of finance lease obligations
           (g)      Liability component of Other financial instruments
           (h)      Other loans and advances (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.

   (vi) Terms of repayment of term loans and other loans shall be stated.


                                                                                     11
    (vii) Period and amount of continuing default as on the balance sheet date in
          repayment of loans/bonds/debentures and interest shall be specified
          separately in each case.

D. Other Financial Liabilities :
   Other Financial liabilities shall be classified as:
        (a)       Trade payables
        (b)       Others (specify nature)

E. Long-term provisions
   The amounts shall be classified as:

             (a)    Provision for employee benefits.
             (b)    Others (specify nature).

F. Short-term borrowings

    (i)      Short-term borrowings shall be classified as:

            (a)     Loans repayable on demand
                     from banks.
                     from other parties.
            (b)     Loans and advances from related parties.
            (c)     Deposits.
            (d)     Other loans and advances (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 loans and interest, shall be specified separately in each case.

G. Other current liabilities

    The amounts shall be classified as:

    (a)      Current maturities of long-term debt;
    (b)      Current maturities of finance lease obligations;
    (c)      Interest accrued but not due on borrowings;
    (d)      Interest accrued and due on borrowings;
    (e)      Income received in advance;
    (f)      Unpaid dividends
    (g)      Application money received for allotment of securities and due for refund
             and interest accrued thereon
    (h)      Unpaid matured deposits and interest accrued thereon
    (i)      Unpaid matured debentures and interest accrued thereon
    (j)      Other payables (specify nature);
                                                                                    12
H. Short-term provisions
   The amounts shall be classified as:

   (a)     Provision for employee benefits.
   (b)     Others (specify nature).

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 asset.

   (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.

J. Goodwill

   A reconciliation of the gross and net carrying amount of goodwill at the
   beginning and end of the reporting period showing additions, disposals,
   acquisitions through business combinations and other adjustments.

K. 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, and patents and other intellectual property rights,
                    services and operating rights.
           (f)      Recipes, formulae, models, designs and prototypes.
           (g)      Licenses and franchise.
           (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.
                                                                                      13
L. Non-current investments

   (i)     Non-current 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)   Other non-current investments (specify nature)

           Under each classification, details shall be given of names of the bodies
           corporate (indicating separately whether such bodies are (i) subsidiaries,
           (ii) associates, (iii) joint ventures, or (iv) controlled special purpose
           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) Investments carried at other than at cost should be separately stated
        specifying the basis for valuation thereof.

   (iii) The following shall also be disclosed:

           (a)      Aggregate amount of quoted investments and market value
                    thereof;
           (b)      Aggregate amount of unquoted investments;
           (c)      Aggregate provision for diminution in value of investments

M. Long-term loans and advances

   (i)     Long-term loans and advances shall be classified as:

           (a)      Security Deposits;
           (b)      Loans and advances to related parties (giving details thereof);
           (c)      Other loans and advances (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 and advances shall be disclosed
           under the relevant heads separately.

   (iv)    Loans and advances due by directors or other officers of the company or
           any of them either severally or jointly with any other persons or amounts

                                                                                      14
           due by firms or private companies respectively in which any director is a
           partner or a director or a member should be separately stated.

N. Other non-current assets

   Other non-current assets shall be classified as-

   (i)     Long Term Trade and Other Receivables (including trade receivables on
           deferred credit terms);

   (iii)   Capital Advances

   (iii)   Others (specify nature);

   (iv)    Long term Trade and Other Receivables shall be sub-classified as:

           (1)(a) Secured, considered good;
              (b) Unsecured considered good;
              (c) Doubtful;

           (2) Allowance for bad and doubtful debts shall be disclosed under the
           relevant heads separately

           (3) 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.

O. Current Investments
   (i)    Current 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)   Other investments (specify nature).

                 Under each classification, details shall be given of names of the
                 bodies corporate (indicating separately whether such bodies are (i)
                 subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled
                 special purpose 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

           (a)   The basis of valuation of individual investments

                                                                                     15
             (b)     Aggregate amount of quoted investments and market value
                     thereof;
             (c)     Aggregate amount of unquoted investments;
             (d)     Aggregate provision for diminution in value of investments.

P. 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.

Q. Trade and Other Receivables

     (i)     Aggregate amount of Trade and Other Receivables outstanding for a
             period exceeding six months from the date they are due for payment
             should be separately stated.

     (ii)    Trade   and Other 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 a
             director or a member should be separately stated.

R.     Cash and cash equivalents

     (i)     Cash and cash equivalents shall be classified as:

             (a)     Balances with Banks;
             (b)     Cheques, drafts on hand;
             (c)     Cash on hand;
             (d)     Others (specify nature).


                                                                                      16
   (ii)    Earmarked balances with banks (for example, for unpaid dividend) shall
           be separately stated.

   (iii)   Balances with banks to the extent held as margin money or security
           against the borrowings, guarantees, other commitments shall be
           disclosed separately.

   (iv)    Repatriation restrictions, if any, in respect of cash and bank balances
           shall be separately stated.

S. Short-term loans and advances

   (i)     Short-term loans and advances shall be classified as:

           (a)   Loans and advances to related parties (giving details thereof);
           (b)    Others (specify nature).

   (ii)    The above shall also be sub-classified as:

           (a)    Secured, considered good;
           (b)    Unsecured, considered good;
           (c)    Doubtful.

   (iii)   Allowance for bad and doubtful loans and advances shall be disclosed
           under the relevant heads separately.

   (iv)    Loans and advances 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.

   T. Other current assets (specify nature).

   This is an all-inclusive heading, which incorporates current assets that do not fit
   into any other asset categories.

   U. 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;
           (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).

                                                                                     17
      V. The amount of dividends proposed to be distributed to equity and preference
         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.

      W. 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.

      X. If, in the opinion of the Board, any of the current assets do not have a value on
          realization in the ordinary course of business at least equal to the amount at
          which they are stated, the fact that the Board is of that opinion, shall be stated.




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 not exceeding the issued capital and to the extent not
       refundable shall be shown under the head Equity and share application money to
       the extent refundable e.g., the amount in excess of subscription or in case the
       requirements of minimum subscription are not met, shall be separately shown
       under `Óther current liabilities'.

9.     Preference shares shall be classified and presented as `Equity' or `Liability' in
       accordance with the requirements of the relevant 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 `liabilities' as `long term 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
    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 Accounting Standards.




                                                                                          18
PART II ­ STATEMENT OF PROFIT AND LOSS

Name of the Company.........................
Statement of Profit and Loss for the period ended ...........................
                                                                                        (Rupees in............)
        Particulars                                 Note                        Figures           Figures
                                                    No.                         for   the         for the
                                                                                current           previous
                                                                                reporting         reportin
                                                                                period            g period
 I      Revenue From Operations                                                 xxx               xxx

        Other Income                                                            Xxx                 xxx
                             Total Revenue (I)                                  xxx                 Xxx

 II     EXPENSES
        Cost of materials consumed                                              xxx                 xxx

        Purchases of Stock-in-Trade                                             xxx                 Xxx
        Changes in inventories of finished                                      xxx                 Xxx
        goods, Stock-in -Trade and work-in-
        progress

        Employee benefits expense                                               xxx                 xxx
        Finance costs                                                           xxx                 Xxx
        Depreciation and amortization                                           xxx                 Xxx
        expense
        Other expenses                                                          xxx                 xxx

                           Total expenses (II)                                  xxx                 xxx

 III    Profit before exceptional items and                                     xxx                 xxx
        tax (I-II)
 IV     Exceptional Items                                                       xxx                 xxx

 V      Profit/(loss) before tax                                                xxx                 xxx
        (III-IV)

 VI     Tax expense:
        (1) Current tax                                           xxx                        xxx
        (2) Deferred tax                                          xxx                        xxx
                                                                  xxx           xxx          xxx    Xxx
 VII    Profit (Loss) for the period from                                       xxx                 Xxx
        continuing operations (V-VI)

 VIII   Profit/(loss) from discontinued                                         xxx                 Xxx
        operations
 IX     Tax expense of discontinued                                             xxx                 Xxx
        operations
                                                                                                          19
 X      Profit/(loss) from Discontinued                           xxx                Xxx
        operations (after tax) (VIII-IX)

 XI     Profit/(loss) for the period (VII+ X)                     xxx                Xxx

 XII    Other Comprehensive Income
        A (i) Items that will not be
               reclassified to profit or loss           xxx                   xxx
          (ii) Income tax relating to items
               that will not be reclassified to
               profit or loss                           xxx                   xxx
        B (i) Items that will be reclassified
               to profit or loss                        xxx                   xxx
          (ii) Income tax relating to items
               that will be reclassified to
               profit or loss                           xxx                   xxx
                                                        Xxx       xxx         Xxx    xxx

 XIII   Total Comprehensive Income for                            xxx                xxx
        the period (XI + XII)
        (Comprising Profit (Loss) and Other
        Comprehensive Income for the
        period)

 XIV    Earnings per equity share (for
        continuing operation):
        (1) Basic                                                 xxx                xxx
        (2) Diluted                                               xxx                xxx

 XV     Earnings per equity share (for
        discontinued operation):
        (1) Basic                                                 xxx                xxx
        (2) Diluted                                               xxx                xxx

 XVI    Earnings per equity share(for
        discontinued & continuing
        operations)                                               xxx                xxx
        (1) Basic                                                 xxx                xxx
        (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.


                                                                                           20
 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 revenue from
                (a) sale of products (including Excise Duty);
                (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) Applicable net gain/loss on foreign currency transactions and translation.
             (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)   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
             (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:

      (a) Employee Benefits expense [showing separately (i) salaries and wages, (ii)
         contribution to provident and other funds, (iii) expense on Employee Stock Option

                                                                                              21
         Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare
         expenses].
     (b) Depreciation and amortization expense;
     (c) Any item of expenditure which exceeds one per cent of the revenue from operations
         or Rs.10,00,000, whichever is higher;
     (d) Interest Income;
     (e) Interest Expense;
     (f) Dividend income
     (g) Net gain/loss on sale of investments;
     (h) Adjustments to the carrying amount of investments;
     (i) Net gain/loss on foreign currency translation and translation (other than considered
         as finance cost);
     (j) Payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law
         matters, (d) for management services, (e) for other services, (f) for reimbursement
         of expenses;
     (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.



 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 Accounting Standards notified under Part I of the Companies
     (Accounting Standards) Rules_____, 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'.

     (ii)   `Non-controlling interests' in the balance sheet within equity shall be presented
             separately from the equity of the `owners of the parent'.




                                                                                                22
     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.,         Share in profit or Share   in    other Share   in    total
                                           total assets minus        loss               comprehensive       comprehensive
                                           total liabilities                            income              income
                                           As % of        Amount
                                           consolidated              As % of       Amount   As     %     of   Amount   As % of total   Amount
                                           net assets                consolidate            consolidated               comprehensive
                                                                     d profit or            other                      income
                                                                     loss                   comprehensive
                                                                                            income
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.
    2.

                                                                                                                                           23
    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.



                                                                                                                                                  24

 
 
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