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
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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
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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.
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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.
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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
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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
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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 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
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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.
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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;
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(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)
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(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.
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(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);
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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.
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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
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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
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(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).
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(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).
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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.
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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............)
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
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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.
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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
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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'.
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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.
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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.
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