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Guidance Note on Division III to Schedule III to the Companies Act 2013 for NBFC (Comments to be received by September 8, 2019)
September, 02nd 2019
Exposure Draft of Revised Guidance Note on Division III ­ Non Ind AS Schedule III
to the Companies Act, 2013 by Corporate Laws & Corporate Governance
Committee ICAI
                                               ED/GN-Div-III/2019-2020/50

            EXPOSURE DRAFT
                   ON
      GUIDANCE NOTE ON DIVISION III
            TO SCHEDULE III
       TO THE COMPANIES ACT 2013
     FOR NBFC THAT IS REQUIRED TO
      COMPLY WITH INDIAN ACCOUNTING
            STANDARDS (IND AS)
      (Last date for Comments: September 8, 2019)




 Issued by Corporate Laws & Corporate Governance
                     Committee
        THE INSTITUTE OF CHARTERED
            ACCOUNTANTS OF INDIA
         (Set up under an Act of Parliament)
Exposure Draft of Revised Guidance Note on Division III ­ Non Ind AS Schedule III
to the Companies Act, 2013 by Corporate Laws & Corporate Governance
Committee ICAI
                               Exposure Draft
                     Guidance Note
                            on
               Division III to Schedule III
 to the Companies Act, 2013 for NBFC that is required to
                  comply with Ind AS
Following is the Exposure Draft of the Guidance Note on Division III to
Schedule III to the Companies Act 2013 for NBFC that us required to
comply with Ind AS issued by the Corporate Laws & Corporate
Governance Committee of the Institute of Chartered Accountants of
India, for comments.

The Committee 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 September 8, 2019.

1.   Electronically: Click on http: to submit comments online. (Preferred
     method): https://forms.gle/pfu8q2xBJvTFantP9
2.   Email: Comments can be sent to comments.clcgc@icai.in
3.   Postal: Corporate Laws & Corporate Governance Committee, The
     Institute of Chartered Accountants of India, ICAI Bhawan, A- 29,
     Sector- 62, Noida ­ 203209.

Further clarifications on any aspect of this Exposure Draft may be
sought by e-mail to comments.clcgc@icai.in.
                                                                     Index
Sr.                             Contents                                Page
No.                                                                      No.
1.    Introduction                                                         1
2.    Objective and Scope                                                  2
3.    Applicability                                                        4
4.    Main Principles ­ Summary of Division III - `Ind AS Schedule         5
      III'
5.    Structure of Ind AS Schedule III                                     9
6.    General Instructions for Preparation of Financial Statements:        9
      Notes
7.    Part I Notes ­ General Instructions for Preparation of Balance      12
      Sheet
8.    Part I ­ Form of Balance Sheet and Notes ­ General                  12
      Instructions for Preparation of Balance Sheet: Notes 6 to 11
9.    Part II ­ Statement of Profit and Loss and Notes ­ General          69
      Instructions for Preparation of Statement of Profit and Loss:
      Notes 1 to 10
10.   Other Comprehensive Income                                          87
11.   Additional information to be disclosed by way of Notes to           89
      Statement of Profit and Loss
12.   Part III ­ General Instructions for Preparation of Consolidated     90
      Financial Statements
      Annexures
      Annexure A ­ Division III to Schedule III (`Ind AS Schedule        100
      III') to the Companies Act, 2013
      Annexure B ­ Key Difference between Division I and Division        139
      III and Key Difference between Division II and Division III
      Annexure C ­ Illustrative List of Disclosures required under       172
the Companies Act, 2013
Annexure D ­ List of Indian Accounting Standards notified as   173
on date
Annexure E ­General Circular No. 39 / 2014 dated 14th          175
October 2014
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI


1. Introduction
1.1    Schedule III to the Companies Act, 2013 (`the Act') was notified along
with the Act itself on August 29, 2013 thereby providing the manner in which
every company registered under the Act shall prepare its Financial
Statements. Financial Statements as defined under the Act include Balance
Sheet, Statement of Changes in Equity for the period, the Statement of Profit
and Loss for the period, Cash flow statement as applicable for the financial
year and Notes.
1.2     Ministry of Corporate Affairs (`MCA') notified Indian Accounting
Standards (`Ind AS') on February 16, 2015 thereby laying down the roadmap
for all companies, except insurance companies, banking companies and non -
banking finance companies, for a doption of Ind AS (`MCA roadmap'). Further,
MCA notified amendments to Schedule III to the Act on April 6, 2016
whereby:
       1.2.1 The existing Schedule III was renamed as `Division I' to
              Schedule III (`Non- Ind AS Schedule III') ­ which gives a format
              of Financial Statements for Non-Ind AS companies, that are
              required to comply with the Companies (Accounting Standards)
              Rules, 2006. In other words, Non-Ind AS companies, will be
              required to prepare Financial Statements as per Companies
              (Accounting Standards) Rules, 2006, as per the format of
              Division I to Schedule III to the Act;
       1.2.2 `Division II' - `Ind AS Schedule III' was inserted to give a format
              of Financial Statements for companies that are required to
              comply with the Companies (Indian Accounting Standards)
              Rules, 2015, as amended from time to time (`Companies Ind AS
              Rules') . This was newly inserted into Schedule III for companies
              that adopt Ind AS as per Rule 4(1)(i) or Rule 4(1)(ii) or Rule
              4(1)(iii) of the Companies Ind AS Rules. Accordingly, such
              Companies, while preparing its first and subsequent Ind AS
              Financial Statements, would apply Division II to Ind AS
              Schedule III to the Act.
1.3   . The MCA issued a notification dated March 30, 2016 announcing the
Ind AS roadmap for scheduled commercial banks (excluding regional rural
banks), insurers/ insurance companies and non-banking financial companies
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

(`NBFC'). Further, MCA notified amendments to Schedule III to the Act on
October 11, 2018 whereby:
1.3.1    `Division III' - `Ind AS Schedule III' (Refer Annexure A, Page 100 )
         was inserted to give a format of Financial Statements for NBFC's
         that are required to comply with the Companies (Indian Accounting
         Standards) Rules, 2015, as amended from time to time (`Companies
         Ind AS Rules') . As per the Companies Ind AS Rules, "Non-Banking
         Financial Company" means a Non -Banking Financial Company as
         defined in clause (f) of section 45-I of the Reserve Bank of India Act,
         1934 and includes Housing Finance Companies, Merchant Banking
         companies, Micro Finance Companies, Mutual Benefit Companies,
         Venture Capital Fund Companies, Stock Broker or Sub-Broker
         Companies, Nidhi Companies, Chit Companies, Securitisation and
         Reconstruction Companies, Mortgage Guarantee Companies,
         Pension Fund Companies, Asset Management Companies and Core
         Investment C ompanies.'. Accordingly, such NBFC's and any other
         such class of NBFC's , while preparing its first and subsequent Ind
         AS Financial Statements, would apply Division III to Ind AS
         Schedule III to the Act.
1.4    It may, however, be clarified that for companies engaged in the generation
or supply of electricity, neither the Electricity Act, 2003, nor the rules framed
thereunder, prescribe any specific format for presentation of Financial
Statements by an electricity company. Section 1(4) of the Act states that the Act
will apply to electricity companies, to the extent it is not inconsistent with the
provisions of the Electricity Act. Keeping this in view, Ind AS Schedule III ­
Division I or Division II as applicable may be followed by such companies till the
time any other format is prescribed by the relevant statute.


2. Objective and Scope
2.1      The objective of this Guidance Note is to provide guidance in the
preparation and presentation of Financial Statements in accordance with
various aspects of Ind AS Schedule III, for NBFC's adopting Ind AS. The
disclosure requirements under Ind AS, the Companies Act, 2013, other
pronouncements of the Institute of Chartered Accountants of India (ICAI),
other statutes, etc., would be in addition to the guidance provided in this
Guidance Note.

                                       2
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

2.2       Guidance given in `Guidance Note on Division I to the Schedule III to
the Companies Act, 2013' published in February 2016 and revised in June
2019 would continue to be applied by Non-Ind AS companies which are
required to prepare Financial Statements as per the format of Non-Ind AS
Schedule III.
2.3       In preparing this Guidance Note, reference has been made to Ind
AS notified under Section 133 of the Act read together with Paragraph 3 of the
Companies Ind AS Rules given in Annexure D ( Pg 173) and various other
pronouncements of the ICAI. The primary focus of the Guidance Note is to
lay down broad guidelines to deal with practical issues that may arise in the
implementation of Ind AS Schedule III while preparing Financial Statements
as per Ind AS. The Guidance Note would primarily provide guidance on the line
items contained in the Division III to the Schedule III rather than the specific
issues which an NBFC may face.
2.4       This Guidance Note includes changes to presentation and
disclosure requirements of Ind AS Schedule III pursuant to Ind AS notified up
to May 31, 2019. Ind AS 116 Leases, is notified on March 30, 2019 and will
be effective from 1st April 2019. It changes the current accounting
requirements of differentiating between lease arrangements as an `Operating
Lease' and `Finance Lease'. It requires recognition of a `Right -to-use' (ROU)
and a corresponding lease liability where the lessee, at the commencement
date, has a financial obligation to make lease payments to the lessor for its
right to use the underlying asset during the lease term. While the
requirements (including presentation and disclosures) for lessor remains
substantially unchanged from Ind AS 17, the requirements for lessee
changes significantly as compared to Ind AS 17. An entity shall present and
disclose rights and obligations arising from lease arrangements as per Ind
AS 116 and the requirements under this schedule stand modified accordingly
(Refer para 2 of General Instructions for preparation of Financial Statements
of a Non-Banking Financial Company (NBFC) that are required to comply
with Indian Accounting Standards (Ind AS)).
2.5       As per the clarification issued by ICAI regarding the authority attached
to the Documents issued by ICAI, `Guidance Notes' are primarily designed to
provide guidance to members on matters which may arise in the course of their
professional work and on which they may desire assistance in resolving issues
which may pose difficulty. Guidance Notes are recommendatory in nature. A
member should ordinarily follow recommendations in a guidance note relating to
an auditing matter except where he is satisfied that in the circumstances of the
case, it may not be necessary to do so. Similarly, while discharging his attest
function, a member should examine whether the recommendations in a guidance

                                       3
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

note relating to an accounting matter have been followed or not. If the same have
not been followed, the member should consider whether keeping in view the
circumstances of the case, a disclosure in his report is necessary."


3. Applicability
3.1    As per the Government Notification no. S.O. 902 (E) dated 26 th March,
2014, Schedule III is applicable for the Financial Statements prepared for the
financial year commencing on or after April 1, 2014. As per the Government
Notification no. G.S.R. 404(E) dated April 6, 2016, Schedule III is amended
to include a format of Financial Statements for a company preparing
Financial Statements in compliance with the Companies Ind AS Rules.
Further, as per the Government Notification no. G.S.R. 1022 (E) dated
October 11, 2018, the Schedule III is amended to include a format of
Financial Statements for a NBFC preparing Financial Statements in
compliance with the Companies Ind AS Rules. Every Non-Banking Financial
company as defined in the Companies (Indian Accounting Standards)
(Amendment) Rules, 2016 to which Indian Accounting Standards apply, shall
prepare its financial statements in accordance with this Schedule or with
such modification as may be required under certain circumstances. Ind AS
Schedule III requires that except in the case of the first Financial Statements
laid before the company after incorporation, the corresponding amounts (i.e.
comparatives) for the immediately preceding period are to be disclosed in the
Financial Statements including the Notes to Accounts. Thus, for the Financial
Statements prepared for the financial year 2018-19 (i.e. 1 st April 2018 to 31 st
March 2019), corresponding amounts need to be given for the financial year
2017- 18. As per Ind AS 101, a company's first Ind AS financial statements
shall include at least three balance sheets, two statements of profit and loss,
two statements of cash flows and two statements of changes in equity and
related notes. This Guidance Note does not deal with the presentation
aspects of reconciliations that are required to be provided as a part of a
company's first Ind AS financial statements.
3.2    For applicability, in the first and subsequent years, of the Ind AS
Schedule III format by a company to its interim Financial Statements (other
than quarterly, half-yearly and annual financial results published as per SEBI
guidelines), relevant paragraphs of Ind AS 34 ­ Interim Financial Reporting
are quoted below:

                                       4
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

       "9.    If an entity publishes a complete set of Financial Statements in
              its interim financial report, the form and content of those
              statements shall conform to the requirements of Ind AS 1 for a
              complete set of Financial Statements.
       10.    If an entity publishes a set of condensed Financial Statements
              in its interim financial report, those condensed statements shall
              include, at a minimum, each of the headings and subtotals that
              were included in its most recent annual Financial Statements
              and the selected explanatory notes as required by this
              Standard. Additional line items or notes shall be included if their
              omission would make the condensed interim Financial
              Statements misleading."
In case, if a company is presenting condensed interim Financial Statements,
its format should also conform to that used in the company's most recent
annual Financial Statements, i.e., which would be as per Ind AS Schedule III.
3.3    Listed entities shall follow guidelines issued by SEBI by way of
circulars prescribing formats for publishing financial results (quarterly, half-
yearly and annual) which are guided by the relevant provisions of the Ind AS
and Ind AS Schedule III and may make suitable modifications, as applicable.


4. Main principles ­ Summary of Ind AS Schedule III
4.1 Every Non-Banking Financial company as defined in the Companies
(Indian Accounting Standards) (Amendment) Rules, 2016 to which Indian
Accounting Standards apply, shall prepare its financial statements in
accordance with this Schedule or with such modification as may be required
under certain circumstances.
4.2 The provisions of Schedule III also apply when a company is required
to prepare consolidated financial statements, in addition to the disclosure
requirements specified under Ind AS.
4.3 Financial Statements include Balance Sheet, Statement of Changes in
Equity for the period, Statement of Profit and Loss for the period and Notes.
Cash Flow Statement shall be prepared in accordance with the requirements
of the relevant Ind AS.
4.4    Balance sheet

                                       5
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

      -- The division provides a format of the balance sheet and sets out the
          minimum requirements of disclosure on the face of the balance sheet
          for NBFCs.
      -- Items presented in the balance sheet are to be classified as financial
          and non-financial.
      -- It permits NBFCs to avail of the option of presenting assets and
          liabilities in the order of liquidity, as provided by Ind AS 1,
          Presentation of Financial Statements.
      -- It requires an NBFC to disclose such information that enables users
          of its financial statements to evaluate the NBFC's objectives, policies
          and processes for managing capital.
4.5     Statement of Profit and Loss
        -- The division provides a format of the statement of profit and loss
            and sets out the minimum requirements of disclosure on the face
            of the statement of profit and loss.
        -- Items comprising `revenue from operations' and `other
            comprehensive income' have to be disclosed on the face of the
            statement of profit and loss
4.6     Statement of changes in equity
        -- The statement of changes in equity would reconcile opening to
            closing amounts for each component of equity including reserves
            and surplus and items of other comprehensive income.
        -- NBFCs are specifically required to disclose the statutory reserves
            as part of `other equity' in the statement of changes in equity.
        -- Additionally, the conditions or restrictions for distribution attached
            to statutory reserves have to be separately disclosed in the notes
            as stipulated by the relevant statute.


4.7     Materiality
NBFCs are required to disclose all `material' items in their financial
statements i.e., the items if they could, individually or collectively, influence
the economic decisions that users make on the basis of financial statements.

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Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

Materiality depends on the size and nature of the item judged in particular
circumstances. However, while preparing the statement of profit and loss, it
specifies that an NBFC should disclose a note for any item of `other income'
or `other expenditure' which exceeds 1 per cent of the t otal income, in
addition to the consideration of materiality.
A General Instruction on `Materiality' has been included in Note 7 to General
Instructions for Preparation of Financial Statements requiring Financial
Statements to disclose items that could, individually or collectively, influence
the economic decisions that users make on the basis of the Financial
Statements. Materiality depends on the size or nature of the item or a
combination of both, to be judged based on particular facts and in particular
circumstances. Moreover, para 29 of Ind AS 1 states w.r.t. `materiality' that
an entity shall present separately each material class of similar items. An
entity shall present separately items of a dissimilar nature or function unless
they are immaterial except when required by law. Further, reference to para
29 to 31 of Ind AS 1 should be taken when determining materiality and
aggregation.
The General Instructions for Preparation of Financial Statements also lay
down the principle that in preparing Financial Statements including 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. Compliance with this requirement is a
matter of professional judgement and may vary on a case to case basis
based on facts and circumstances. However, it is necessary to strike a
balance between overburdening Financial Statements with excessive detail
that may not assist users of Financial Statements and obscuring important
information as a result of too much aggregation. For example, a company
should not obscure important information by including it among a large
amount of insignificant detail or in a way that it obscures important
differences between individual transactions or associated risks.




4.8 As per para 60 of Ind AS 1, an entity shall present current and non-
current assets, and current and non-current liabilities, as separate
classifications in its balance sheet except when a presentation based on

                                       7
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

liquidity provides information that is reliable and more relevant. When that
exception applies, an entity shall present all assets and liabilities in order of
liquidity. The assets and liabilities are to be classified as financial, non-
financial as opposed to current, non-current classification as required by
Division I and Division II of Schedule III.
4.9 The Ind AS Schedule III clarifies that the requirements mentioned
therein for disclosure on the face of the Financial Statements or in the notes
are the minimum requirements and in addition to the disclosure requirements
specified in the Ind AS. 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
NBFC's financial position or performance or to cater to categories of NBFCs
as prescribed by the relevant regulator or sector-specific disclosure
requirements or when required for compliance with the amendments to the
relevant statutes or under the Indian Accounting Standards. For e.g., line
items required by para 54 and para 82 of Ind AS 1 should be included, as an
addition to or substitution of the Ind AS Schedule III line items on the face of
Balance Sheet and Statement of Profit and Loss, respectively. Accordingly,
requirements of both Ind AS Schedule III as well as Ind AS 1 are to be
complied with. Illustrative Standalone & Consolidated Financial Statements
format is given in Annexure E (Pg 175) .
4.10 Disclosure under Ind AS (for e.g., fair value measurement
reconciliation, fair value hierarchy, risk management and capital
management, disclosure of interests in other entities, components of other
comprehensive income, reconciliations on first-time adoption of Ind AS, etc.)
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.
4.11 Where any Act, Regulation, Guidelines or Circulars issued by the
relevant regulators from time to time requires specific disclosures to be made
in the standalone financial statements of an NBFC, the said disclosures shall
be made in addition to those required under Ind AS Schedule III.
4.12 Note 8 to General Instructions for Preparation of Financial Statements
in Ind AS Schedule III states that the terms used in the Ind AS Schedule III
will carry the meaning as defined by the applicable Ind AS. For example, the



                                       8
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

terms such as `associate', `related parties', etc. will have the same meaning
as defined in Ind AS notified under the Companies Ind AS Rules.
For any terms which are not specifically defined in Ind AS, attention may also
be drawn to the Framework for the Preparation and Presentation of Financial
Statements in accordance with Indian Accounting Standard s (`Ind AS
Framework') issued by ICAI. However, if any term is not defined in the Ind
AS Framework, the entity may give consideration to the principles described
in paragraph 10 to paragraph 12 of Ind AS 8 for the purpose of developing
and applying an accounting policy.
4.13 The NBFCs preparing financial statements as per this Schedule may
change the order of presentation of line items on the face of financial
statements or order of line items within the schedules in order of liquidity, if
appropriate, considering the operations performed by the NBFC.




5. Structure of the Ind AS Schedule III
The Structure of Ind AS Schedule III is as under:
A.     General Instructions for Preparation of Financial Statements of a Non-
       Banking Financial Company (NBFC) that is required to comply with Ind
       AS (`General Instructions for Preparation of Financial Statements')
B.     Part I ­ Form of Balance Sheet and Statement of Changes in Equity
C.     Part I Notes ­ General Instructions for Preparation of Balance Sheet
D.     Part II ­ Form of Statement of Profit and Loss
E.     Part II Notes ­ General Instructions for Preparation of Statement of
       Profit and Loss
F.     Part III ­ General Instructions for the Preparation of Consolidated
       Financial Statements


6. General Instructions for Preparation of Financial
   Statements: Notes 1 to 10
6.1 The General Instructions lay down the broad principles and guidelines
for preparation and presentation of Financial Statements.


                                       9
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

6.2 As laid down in Part A of the Annexure to Companies Ind AS Rules,
Ind AS, which are specified, are intended to be in conformity with the
provisions of applicable laws. However, if due to subsequent amendments in
the law, a particular Ind AS is found to be not in conformity with law, the
provisions of the said law will prevail and the Financial Statements should be
prepared in conformity with such law. In such a scenario, the statement of
compliance with Ind AS should be considered in the light of the principle of
overriding effect of law over Ind AS when applying the presentation or
disclosure requirements of the Ind AS Schedule III.
6.3 The Ind AS Schedule III requires that if compliance with the
requirements of the Act, Regulation, Guidelines or Circulars issued by the
relevant regulators from time to time including applicable Ind AS require any
change in the presentation or disclosure including addition, amendment,
substitution or deletion in the head/sub-head or any changes in the Financial
Statements or Notes to Accounts thereof, the same shall be made and the
requirements of Ind AS Schedule III shall stand modified accordingly.
6.4 Note 3 of the General Instructions for Preparation of Financial
Statements state that the disclosure requirements of the Ind AS Schedule III
are in addition to and not in substitution of the disclosure requirements
specified in Ind AS. They further clarify that the disclosures specified in Ind
AS 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 Act shall be made in the Notes in
addition to the requirements set out in this Schedule.
6.5    Examples to illustrate the above point are:
       (a)    Specific disclosure is required by para 33 of Ind AS-105 Non-
              current Assets Held for Sale and Discontinued Operations which
              has not been incorporated in Ind AS Schedule III.
       (b)    Ind AS-107 Financial Instruments: Disclosures , which requires
              disclosure of information that enable users of the Financial
              Statements to evaluate the significance of financial instruments
              for its financial position and performance.




                                      10
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

6.6 Disclosures required by Ind AS as well as by the Act will continue to
be made in the Financial Statements and in the Notes to Accounts. An
example of this is the separate disclosure required by Sub Section (3) of
Section 182 of the Act for donations made to political parties. Such
disclosures would be made in the Notes. An illustrative list of disclosures
required under the Act is enclosed as Annexure C (Pg 172).
6.7 The above principle would apply to disclosures to be made in
compliance with other legal requirements such as, disclosures required
under Regulation 34 (including Schedule V) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015; and the statutory
requirements by RBI such as Asset-Liability Management, Concentration of
exposure, Asset Quality etc.
6.8 The Ind AS Schedule III requires all information relating to each item
on the face of the Balance Sheet and Statement of Profit and Loss to be
cross-referenced to the Notes. The manner of such cross-referencing to
various other information contained in the Financial Statements has been
retained as "Note No." in Ind AS Schedule III. The instructions state that the
Notes to Accounts should provide where required with narrative descriptions
or disaggregation of items recognized in those statements. Hence,
presentation of all narrative descriptions and disaggregation should
preferably be presented in the form of Notes rather than in the form of
Schedules. Such style of presentation is also in line with the manner of
presentation of Financial Statements followed by companies internationally
and would facilitate comparability of Financial Statements.
6.9 Note 4 of the General Instructions for Preparation of Financial
Statements also states that the Notes should also contain information about
items that do not qualify for recognition in Financial Statements. These
disclosures normally refer to items such as Contingent Liabilities and
Commitments which do not get recognised in the Financial Statements.
These have been dealt with in para 8.2.11.
6.10 Ind AS Schedule III requires using the same unit of measurement
uniformly across the Financial Statements. Such requirement should be
taken to imply that all figures disclosed in the Financial Statements including
Notes should be of the same denomination, except where a different



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Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI `

denomination may be required for ratios or metrics in order to increase its
understandability.
6.11 Ind AS Schedule III has specified the rounding off requirements as
Non-Ind AS Schedule III, as given below:
                                Ind AS Schedule III
       Total Income < Rs. 100 Crores - Round off to the nearest hundreds,
       thousands, lakhs or millions or decimal thereof.
       Total Income >= Rs. 100 Crores - Round off to the nearest lakhs,
       millions or crores, or decimal thereof


6.12 A Note below Note 10 of the General Instructions for Preparation of
Financial Statements clarifies that Ind AS Schedule III sets out the minimum
requirements for disclosure in the Financial Statements including notes. It
states that 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 the understanding of the NBFC's financial position
or performance or to cater to categories of NBFC's as pres cribed by the
relevant regulator or sector-specific disclosure requirements, apart from,
when required for compliance with amendments to the Act or Ind AS.


7. Part I Notes: General Instructions for Preparation of
   Balance Sheet

Financial/ Non-financial assets and liabilities:
The Ind AS Schedule III and Ind AS-1 Presentation of Financial Statements
require all items in the Balance Sheet of an NBFC to be classified as either
Financial or Non-financial and be reflected as such.




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8. Part I ­ Form of Balance Sheet and Notes ­ General
   Instructions for Preparation of Balance Sheet: Notes
   6 to 11
 As per the Ind AS Framework, asset, liability and equity are defined as
follows:
An asset is a resource controlled by the entity as a result of past events and
from which future economic benefits are expected to flow to the entity.
A liability is a present obligation of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits.
Equity is the residual interest in the assets of the entity after deducting all its
liabilities.
8.1 Assets
On the face of the Balance Sheet, Ind AS Schedule III requires the following
items to be presented under financial assets and non-financial assets as
below:
Financial assets
(a)    Cash and cash equivalents
(b)    Bank Balance other than (a) above
(c)    Derivative financial instruments
(d)    Receivables
       (I) Trade Receivables
       (II) Other Receivables
(e)    Loans
(f)    Investments
(g)    Other Financial assets (to be specified)


Non-financial assets
(a)   Inventories
(b)   Current Tax Assets (Net)


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(c)      Deferred Tax Assets (Net)
(d)      Investment Property
(e)      Biological assets other than bearer plants
(f)      Property, Plant and Equipment
(g)      Capital work-in-progress
(h)      Intangible assets under development
(i)      Goodwill
(j)      Other Intangible assets
(k)      Other non-financial assets (to be specified)


Financial Assets

8.1.1.      Cash and cash equivalents:
Cash and cash equivalents shall be classified as:
(a)       Cash on hand;
(b)       Balances with banks (of the nature of cash and cash equivalents);
(c)       Cheques, drafts on hand; and
(d)       Others (specify nature).
Cash and cash equivalents is not defined in Ind AS Schedule III however,
according to Ind AS-7 Statement of Cash Flows , Cash is defined to include
cash on hand and demand deposits with banks. Cash Equivalents are
defined as short term, highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk of
changes in value.
Ind AS 7 further explains that an investment normally qualifies as a cash
equivalent only when it has a short maturity of, say, three months or less
from the date of acquisition. This would include term deposits with banks that
have an original maturity of three months or less. However, bank balances
(including term deposits) held as margin money or security against
borrowings are neither in the nature of demand deposits, nor readily
available for use by the company, and accordingly, do not meet the aforesaid
definition of cash equivalents.

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Further, interest accrued on fixed deposit will have to be included to the
carrying value of fixed deposit.
Generally, there should not be a difference in the amount of cash and cash
equivalent as per Ind AS 1 and as per Ind AS 7. However, as per para 8 of
Ind AS 7 "where bank overdrafts which are repayable on demand form an
integral part of an entity's cash management, bank overdrafts are included as
a component of cash and cash equivalents. A characteristic of such banking
arrangements is that the bank balance often fluctuates from being positive to
overdrawn." Although Ind AS 7 permits bank overdrafts to be included as
cash and cash equivalent, however for the purpose of presentation in the
balance sheet, it is not appropriate to include bank overdraft as a component
of cash and cash equivalents unless the offset conditions as given in
paragraph 42 of Ind AS 32 are complied with. Bank overdraft, in the balance
sheet, should be included as `borrowings' under Financial Liabilities.

8.1.2.    Bank Balance other than cash and cash equivalents
Bank balances other than cash and cash equivalents as above, i.e. having a
      maturity of more than three months shall be disclosed as Bank
Balance other than cash and cash equivalents on the face of the Balance
Sheet.
Further, Note (A) of General Instructions for Preparation of Balance Sheet
requires the following disclosures with regard to Bank Balance other than
cash and cash equivalents:
(a)      Earmarked balances with banks (for e.g., 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.
The disclosure regarding `bank balances other than cash and cash
equivalents' should include items such as Balances with banks held as
margin money or security against borrowings, guarantees, etc.



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8.1.3. Derivative Financial Instruments:
As per Appendix A of Ind AS 109 deri vative is defined as "A financial
instrument or other contract within the scope of the Standard with all three of
the following characteristics:
(a) its value changes in response to the change in a specified interest rate,
financial instrument price, commodity price, foreign exchange rate, index of
prices or rates, credit rating or credit index, or other variable, provided in the
case of a non-financial variable that the variable is not specific to a party to
the contract (sometimes called the `underlying').
(b) it requires no initial net investment or an initial net investment that is
smaller than would be required for other types of contracts that would be
expected to have a similar response to changes in market factors.
(c) it is settled at a future date."
The following has to be disclosed in the note for Derivative Financial
Instruments:
       An explanation has to be given for the use of derivatives, how the risk
       is mitigated and for what purpose has the company entered into
       derivatives in accordance with Paras 21A to 21F of Ind AS 107. Eg. to
       hedge its foreign currency risks, interest rate risks and equity price
       risks a company may enter into the following kinds of derivative
       contracts such as interest rate swaps, cross-currency swaps, forward
       foreign exchange contracts, futures and options on interest rates,
       foreign currencies and equities etc.
A cross-reference to the financial risks section for management of risks
arising from derivatives has to be done. As per paragraphs 31 to 33 of Ind
AS 107, an entity shall disclose information that enables users of its financial
statements to evaluate the nature and extent of risks arising from financial
instruments to which the entity is exposed at the end of the reporting period.
Disclosures should explain what the financial risks are, how the entity
manages the risk and why the entity enters into various derivative contracts
to hedge the risks .i.e, Credit Risk, liquidity risk, market risk and other risk.
Derivatives are recorded at fair value and carried as assets when their fair
value is positive and as liabilities when their fair value is negative. The
notional amount and fair value of such derivatives are disclosed separately.


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Changes in the fair value of derivatives are included in net gain on fair value
changes unless hedge accounting is applied.
Embedded derivative which is separated must be disclosed under the
relevant heading, for example, options, etc.
Part I below caters to the derivative financial instruments based on the risk
that the entity intends to hedge.
Part II below caters to the derivative financial instruments on which hedge
accounting is applied or not applied.
The notional amounts, fair value ­ assets, and fair value ­ liabilities shall be
disclosed for each category and sub-category of Derivative financial
instruments as:
       1. Part I
           (i) Currency Derivatives
                     - Spot and forwards
                     - Currency futures
                     - Currency swaps
                     - Options purchased
                     - Options sold (written)
                     - Others
                              Subtotal (i)
              (ii) Interest Rate Derivatives
                          - Forward rate agreements and interest rate
                               swaps
                          -    Options purchased
                          -    Options sold (written)
                          -    Futures
                          -    Others
                               Subtotal (ii)
           (iii) Credit Derivatives
           (iv) Equity Linked Derivatives
           (v) Other Derivatives (Please specify)
                 Total Derivative financial instruments
                 (i)+(ii)+(iii)+(iv)+(v)
       2. Part II
            Included in above (Part I) are derivatives held for hedging and risk

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            management purposes as follows
            (i)   Fair value hedging
                       - Currency Derivatives
                       - Interest rate derivatives
                       - Credit derivatives
                       - Equity linked derivatives
                       - Others
                           Subtotal (i)
            (ii)  Cash flow hedging
                       - Currency Derivatives
                       - Interest rate derivatives
                       - Credit derivatives
                       - Equity linked derivatives
                       - Others
                           Subtotal (ii)
            (iii) Net investment hedging
            (iv)  Undesignated derivatives
                  Total Derivative financial instruments (i)+(ii)+(iii)+(iv)

With respect to hedges and hedge accounting, NBFCs should provide a
description in accordance with the requirements of Indian Accounting
Standards, of how derivatives are used for hedging, explain types of hedges
recognized for accounting purposes and their usage/ application by the
entity.

8.1.4. Receivables:
Receivables are classified as `Trade and Other Receivables'.
A receivable should be classified as '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 and the company has a right to an amount of
consideration that is unconditional (i.e. if only the passage of time is required
before payment of that consideration is due).
Other receivables would generally mean receivables emanating from items
that are classified as `others' under `Revenue from Operations'. Other
receivables shall also include debts due by directors or other officers of the
NBFC or any of them either severally or jointly with any other person or debts
due by firms including limited liability partnerships (LLPs), private companies


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respectively in which any director is a partner or a director or a member if the
same is not in the nature of Trade receivables.
Refer para 8.1.7 for items that may be classified as `other financial assets'.
Receivables shall be sub-classified as:
(i)      (a) Receivables considered good - Secured;
         (b) Receivables considered good - Unsecured;
         (c)   Receivables which have significant increase in credit risk; and
         (d) Receivables ­ credit impaired
(ii)     Allowance for impairment loss allowance shall be disclosed under the
         relevant heads separately.
(iii)    Debts due by directors or other officers of the NBFC or any of them
         either severally or jointly with any other person or debts due by firms
         including limited liability partnerships (LLPs), private companies
         respectively in which any director is a partner or a director or a
         member should be separately stated.


Impairment on Trade Receivables
As per Ind AS 109, the company is required to recognize a loss allowance
(i.e. impairment) for expected credit losses on financial assets including trade
receivables.
The impairment requirements in Ind AS 109 are based on forward-looking
expected credit loss (ECL) model which requires an application of one of the
following:
        a) The general approach, where an entity recognises ECL in the
           following stages viz.,
                  credit exposures for which there has not been a significant
                  increase in credit risk since initial recognition;
                  credit exposures for which there has been a significant
                  increase in credit risk since initial recognition but not credit-
                  impaired;
                  credit exposures that are credit impaired;

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    b) The simplified approach, where an entity does not separately track
       changes in credit risk.
    c) The purchased or originated credit-impaired approach.
For trade receivables that do not contain a significant financing component, it
is a requirement to apply a simplified approach while for trade receivables
that contain a significant financing component, and for lease receivables, a
choice between a general approach or simplified approach is available.
Application Guidance to Ind AS 109 allows using practical expedients when
measuring expected credit losses if they are consistent with the
measurement principles reflecting a probability-weighted outcome, the time
value of money and reasonable and supportable information that is available
without undue cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions, for e.g., using a
provision matrix based calculation of expected credit loss on trade
receivables.
Disclosure under the general approach
If the company chooses to calculate impairment under the general approach
for trade receivables containing significant financing component, then the
disclosure representing the following different categories of Trade
Receivables would be provided:
 Trade Receivables
            Particulars                 Exposure            Loss           Net
                                                         Allowance        Amount
                                           Rs.              Rs.             Rs.
 Considered good ­ Secured                  --               --              --
 Considered          good         ­        1,25,000          13,000        1,12,000
 Unsecured*
 Trade Receivables which have                20,000          10,000          10,000
 significant increase in credit
 risk
 Trade Receivables ­ credit                      5,000         4,000          1,000
 impaired


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 Total                                     1,50,000          27,000        1,23,000
* It is assumed for simplicity that all the Trade Receivables considered good
are Unsecured.
Similar table as mentioned above would be required for any debts due which
are in the nature of trade receivables and where general approach has been
used by the company for any debts due by any directors or other officers of
the NBFC or any of them either severally or jointly with any other person or
debts due by firms including limited liability partnerships (LLPs), private
companies respectively in which any director is a partner or a director or a
member
Except in case of purchased or originated credit-impaired trade receivables
where a company only recognises cumulative changes in lifetime expected
credit losses since initial recognition, the impairment loss allowance does not
reduce the carrying amount of the trade receivables.
In disclo sing `Trade Receivables which have significant increase in credit
risk', the company shall disclose the amount of trade receivables that have
experienced significant increase in credit risk since initial recognition but are
not credit-impaired.
In disclos ing `Trade Receivables ­ credit impaired', the company shall
disclose the amount of trade receivables which are credit impaired as
defined in Ind AS- 109 .
The balance amount of trade receivables which have neither experienced
significant increase in credit risk nor are credit impaired as per Ind AS 109,
shall be disclosed as `good'.
For calculating the loss allowance, reference shall be drawn from Ind AS
109.
Disclosure under the simplified approach
If the company chooses to calculate impairment under the simplified
approach for trade receivables containing significant financing component
and for the impairment calculated on trade receivables that do not contain
significant financing component, then the company is not required to
separately track changes in credit risk of trade receivables as the impairment
amount represents "lifetime" expected credit loss.


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Accordingly, based on a harmonious reading of Ind AS 109 and the break-up
requirements under Schedule III, the disclosure for all such trade receivables
would be made as below, irrespective of whether they contain a significant
financing component or not:
  Trade Receivables
            Particulars                 Exposure           Loss            Net
                                                        Allowance         Amount
                                           Rs.              Rs.                    Rs.
  Considered Good ­ Secured                        --              --               --
 Considered          Good         ­        2,00,000          25,000        1,75,000
 Unsecured*
 Trade Receivables which have                       -               -                -
 significant increase in credit
 risk
 Trade Receivables ­ credit                         -               -                -
 impaired
 Total                                     2,00,000          25,000        1,75,000
* It is assumed for simplicity that all the Trade Receivables are Unsecured.


Break- up of trade receivables into `significant increase in credit risk'
and `credit impaired'
Ind AS 109 neither prohibits nor mandates a company to perform individual
assessment of credit risk for some of its financial assets, if company
performs individual credit risk assessment on specific parties despite the
normal collective pool-based assessment for a group of parties falling under
a particular credit exposure bucket (e.g., ageing, rating, etc.) and if it
indicates that a trade receivable has experienced a significant increase in
credit risk or is credit impaired then disclosure to be provided as under.
The disclosure of trade receivables in the manner as required by Schedule III
shall be made specifically where the company has a trade receivable for
which credit risk is assessed individually. However, the disclosure of `trade


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receivables ­ credit impaired' shall be made if such trade receivables meet
the definition of `credit impaired' as per Ind AS 109.
When a company has assessed credit risk on an individual basis irrespective
of recognition of a loss allowance, it is recommended that a company should
disclose the following by way of a footnote just after the illustrative table
given below:
     The amount of trade receivables for which the company has assessed
     credit risk on an individual basis; and
     The amount of loss allowance recognized for such trade receivables .


  Trade Receivables
            Particulars                 Exposure           Loss            Net
                                                        Allowance         Amount
                                           Rs.              Rs.                    Rs.
  Considered Good ­ Secured                        --              --               --
 Considered          Good         ­        1,50,000          25,000        1,25,000
 Unsecured*
 Trade Receivables which have                       -               -                -
 significant increase in credit
 risk
 Trade Receivables ­ credit                  50,000          50,000                  -
 impaired
 Total                                     2,00,000          75,000        1,25,000


*Where a company has performed credit assessment on an individual basis
and the assessment indicates that the trade receivable has experienced
significant increase in credit risk but is not credit impaired, in that case the
exposure to such trade receivable and its respective loss allowance would be
shown as part of Considered good - secured and Considered good ­
Unsecured as the case may be. In case of `trade receivables' under the
simplified approach a company is not required to separately track the


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changes in credit risk and even if the company does individual assessment it
will not be possible for a company to establish that there has been significant
increase in credit risk. Hence any exposure of trade receivables other than
that which is credit impaired and the respective loss allowance will be shown
as part of Considered Good ­ Secured / Unsecured as the case may be.
Similar tables as mentioned above would be required for any debts due by
directors or other officers of the NBFC or any of them either severally or
jointly with any other person or debts due by firms including limited liability
partnerships (LLPs), private companies respectively in which any director is a
partner or a director or a member.
Presentation of loss allowance
Except in case of purchased or originated credit-impaired trade receivables
where a company only recognises cumulative changes in lifetime expected
credit losses since initial recognition, the impairment loss allowance does not
reduce the carrying amount of the trade receivables. Accordingly, the total
expected credit loss allowance is presented as a deduction in a single line
item from the total carrying amount of the trade receivables, as shown above.
The above disclosure is consistent with the requirements of Ind AS 109 and
modification of the requirements under Ind AS Schedule III may be modified
in light of para 2 of `General Instructions for Preparation of Financial
Statements of a Company Required to comply with Ind AS' to Ind AS
Schedule III.
Impairment for Other Receivables
Similar disclosures as mentioned above under the general approach may be
followed for impairment for Other Receivables.

8.1.5. Loans:
 An NBFC shall disclose the following in the Notes under the head `Loans':
(i) Bills purchased and bills discounted
(ii) Loans repayable on demand
(iii) Term Loans
(iv) Leasing
(v) Factoring

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(vi) Others (to be specified , example of `Others' could be Inter -corporate
     Deposits, Staff loans , loans to related party, etc)
Loans should be classified as measured at amortised cost, at fair value
through Other Comprehensive Income, fair value through Profit or Loss, or
designated at fair value through Profit or Loss.. The impairment loss
allowance as per Ind AS 109 should be disclosed as a separate line item
under the aforesaid measurement category.
A break up of the total loan should also be disclosed as:
(a) Secured by tangible assets
(b) Secured by intangible assets
(c) Covered by Bank/ Government Guarantee
(d) Unsecured
As per Guidance Note on Terms Used in Financial Statements, Secured
loan is defined as loan secured wholly or partly against an asset.
Loans shall be additionally disclosed into loans secured by book debts, fixed
deposits and other working capital items as applicable. Loans to the extent
they are covered by guarantees of Indian/ foreign governments and Indian/
foreign banks shall be included in line item (c) above. Government refers to
government, government agencies, and similar bodies whether local, national
or international. All loans or parts thereof that are not classified under the
previous sub-heads shall be included in line item (d) above. For instance, if
an advance is secured by tangible assets to the extent of 75 percent, the
secured component shall be reflected under secured advance, while the
balance 25 percent unsecured component would be included under this sub-
head. The total of the above line items, after deducting impairment loss
allowance in a separate line item, should match with the net loans and
advances.
Additional disclosure of loans within India and outside India is required to be
made. Further within India it should be classified as public sector and others
(to be specified). Advances to Central and State Governments and other
Government undertakings including Government Companies and statutory
corporations are to be included in the category `Public Sector'. All other loans
are included in `Others ' category for example loans to retail or Corporate or
industry wise classification etc. based on the business of the company.

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All the above mentioned disclosures are required to be given for each of the
measurement categories namely measured at amortised cost, at fair value
through other comprehensive income, fair value through Profit or Loss or
designated at fair value through Profit or Loss.
For finance lease receivables, an entity shall apply the presentation and
disclosure requirements under Ind AS 116 in addition to the requirements of
Ind AS Schedule III. The disclosure requirements of Ind AS 107 would also
apply to such receivables and the requirements under this schedule stand
modified accordingly (Refer para 2 of General Instructions for preparation of
Financial Statements of a Non-Banking Financial Company (NBFC) that are
required to comply with Indian Accounting Standards (Ind AS))

8.1.6.   Investments:
Investments shall be classified as:
    (i) Investments in Mutual funds
    (ii) Investments in Government securities
    (iii) Investments in Other approved securities
    (iv) Investments in Debt Securities
    (v) Investments in Equity Instruments
    (vi) Investments in Subsidiaries
    (vii) Investments in Associates
    (viii) Investments in Joint Ventures
    (ix) Others (Specify)


Investments should further be classified as:
    a.) Measured at amortised cost,
    b.) Fair value through Other Comprehensive Income,
    c.) Fair value through Profit or Loss, and
    d.) Designated at fair value through Profit or Loss.
Additional disclosure of Investments within and outside India is required to be
provided.

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Where the NBFC has used a basis other than amortised cost or fair value,
the same may be included in column `Others', with the basis of measurement
to be disclosed as a footnote. Eg. Investment in subsidiaries measured at
cost under Ind AS 109 shall be classified under `Others'.
The impairment loss allowance as per Ind AS 109 should be disclosed as a
separate line item under the sub-heads mentioned above.
8.1.6.1 Aggregate amount for impairment in value of investments
As per Ind AS Schedule III, this amount should be disclosed separately. As
per Ind AS 109, the company is required to recognize a loss allowance (i.e.
impairment) for expected credit losses on investments measured at
amortized cost. Such loss allowance should be presented as an adjustment
to the amortized cost of the investment.
As per Ind AS 109, in case of debt investments measured at fair value
through other comprehensive income, the fair value changes will be
presented in other comprehensive income. A company shall estimate a
portion of fair value change, if any, attributable to a change in credit risk of
such investment, by applying the impairment requirements of Ind AS 109 in
recognising and measuring the loss allowance, and disclose the same in the
statement of profit and loss with a corresponding impact in other
comprehensive income. In other words, the company shall not
reduce/increase the carrying amount of such investment in the balance sheet
on account of change in the credit risk as the investment needs to be
presented at fair value. Disclosure pertaining to impairment shall be
disclosed by way of Notes in accordance with the requirements of Ind AS
107.
As per Ind AS 109, equity instruments measured at other than at cost and
debt instruments measured at fair value through profit or loss do not require
a separate evaluation of impairment amount. Hence, in such cases the
disclosure pertaining to impairment shall not be applicable.
For the purpose of disclosing aggregate provision for impairment in the value
of investments, an entity shall disclose an amount equal to the aggregate
amount of impairment recognized and measured in accordance with Ind AS
109, as stated in the paragraphs above.
The aggregate provision for impairment shall be presented in totality for each
measurement category.

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8.1.6.2 Investments in Subsidiaries / Associates / Joint Ventures
The terms `subsidiary', `associate' and `joint venture' shall be as defined in
the respective Ind AS. Ind AS 32, Ind AS 107 and Ind AS 109 scope out
those interests in subsidiaries, associates, joint ventures that are accounted
for in accordance with Ind AS 110 Consolidated Financial Statements , Ind AS
27 Separate Financial Statements or Ind AS 28 Investments in Associates
and Joint Ventures .
In some cases, Ind AS 110, Ind AS 27 or Ind AS 28 require or permit an
entity to account for an interest in a subsidiary, associate or joint venture in
accordance with Ind AS 109. Accordingly, only in its Separate Financial
Statements, the entity shall present such interests in a subsidiary, associate
or joint venture under `Others' if an entity uses a basis for measurement for
the same other than specified under Ind AS 109.
As per Part III General Instructions for the Preparation of Consolidated
Financial Statements, the Consolidated Financial statements shall further
disclose the information as per the requirements specified in the applicable
Indian Accounting Standards notified under the Companies (Indian Ac-
counting Standards) Rules 2015. Thus for an entity's Consolidated Financial
Statements, investments accounted using the equity method (i.e. associates
and joint ventures) need to be shown under the line item `Investments' under
the heading `Financial Assets'.
Structured Entities
In Ind AS Schedule III, in addition to investment in subsidiaries, associates,
joint ventures, there is also a requirement to disclose the names of bodies
corporate, including separate disclosure of investments in "structured
entities". Ind AS-112 Disclosure of Interests in Other Entities states that a
"structured entity" is an entity that has been designed so that voting or similar
rights are not the dominant factor in deciding who controls the entity, such as
when any voting rights are related to administrative tasks only and the
relevant activities are directed by means of contractual arrangements.
Non-Ind AS Schedule III requires similar details to be given for only
"controlled special purpose entities" whereas, under Ind AS Schedule III,
investments in all structured entities need to be given, irrespective of whether
controlled or not.



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Ind AS Schedule III also requires disclosure of the `nature and extent' of the
investment so made. In case of an Investment in other than a structured
entity, the nature and extent would imply the number of such instruments
held and the face value of such instrument. In case of a Structured Entity,
rights are mainly established by way of contractual arrangements and
therefore as a part of `nature and extent', a bri ef description of the nature of
contracts may be provided along with the rights held in such entities as
evidenced by such contracts.

8.1.7.         Other Financial assets:
Other financial assets shall include items such as dues in respect of
insurance claims, sale of Property, Plant and Equipment, contractually
reimbursable expenses, security deposits etc. In case advances are of the
nature of a financial asset as per Ind AS 32, these are to be disclosed under
`other financial assets' separately.
Application money paid towards securities
Any application money paid towards securities, where security has not been
allotted on the date of the Balance Sheet, shall be disclosed as a separate line
item under `other financial assets'. If the amount is material, details about the
date of allotment or when the allotment is expected to be completed may also be
disclosed.


Non-Financial Assets

8.1.8.         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).

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(ii)   Goods-in-transit shall be disclosed under the relevant sub-head of
       inventories.
(iii) Mode of valuation shall be stated.
       As per Ind AS Schedule III, goods in transit should be included under
       relevant heads with suitable disclosure. Further, mode of valuation for
       each class of inventories should be disclosed.
       The heading Finished goods should comprise of all finished goods other
       than those stock-in-trade acquired for trading purposes.



8.1.9. Current Tax Assets (Net):
If amount of tax already paid in respect of current and prior periods exceeds
the amount of tax due for those periods (assessment year-wise and not
cumulative unless tax laws allow for e.g., say tax laws in the country of
overseas subsidiary permits), then such excess tax shall be recognised as
an asset. The excess tax paid (presented as current tax assets) may not be
recovered / realised within one year from the balance sheet date and if so ,
the same shall be presented under non-financial assets. An entity should
evaluate whether current tax assets meet the definition of current assets or
not and should accordingly present the same.

8.1.10. Investment property:
Ind AS 40 Investment Property defines Investment Property as the property
(land or a building--or part of a building --or both) held (by the owner or by
the lessee as a right of use asset) to earn rentals or for capital appreciation
or both, rather than for: (a) use in the production or supply of goods or
services or for administrative purposes; or (b) sale in the ordinary course of
business.

Ind AS Schedule III requires 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 depreciation and impairment losses or
reversals shall be disclosed separately.


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The guidance given below on Property, Plant and Equipment, to the extent
applicable, is also to be used for Investment Property.

8.1.11. Biological assets other than bearer plants:
As per Ind AS-41 Agriculture , a biological asset is a living animal or plant.
Examples of biological assets are sheep, Trees in a timber plantation, Dairy
Cattle, Cotton plants, Tea bushes, Oil palms, Fruit trees, etc. Some plants, for
example, cotton plants, tea bushes, oil palms, fruit trees, grape vines, usually
meet the definition of a bearer plant. However, the produce growing on bearer
plants, viz., cotton, tea leaves, oil palm fruit, fruits, grapes, are biological assets
other than bearer plants.

As per Ind AS 41, an entity shall present a reconciliation of changes in the
carrying amount of biological assets between the beginning and the end of the
current period. The reconciliation shall include:
(i)     the gain or loss arising from changes in fair value less costs to sell;
(ii)    increases due to purchases;
(iii)   decreases attributable to sales and biological assets classified as held for
        sale (or included in a disposal group that is classified as held for sale) in
        accordance with Ind AS 105;
(iv)    decreases due to harvest;
(v)     increases resulting from business combinations;
(vi)    net exchange differences arising on the translation of financial statements
        into a different presentation currency, and on the translation of a foreign
        operation into the presentation currency of the reporting entity; and
(vii)   other changes.
The guidance given below on Property, Plant and Equipment, to the extent
applicable, is also to be used for Biological Assets other than bearer plants.

8.1.12. Property, Plant and Equipment:
The company shall disclose the following in the Notes under the head
`Property, Plant and Equipment':
(i)     Classification shall be given as:

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        (a)    Land;
        (b)    Buildings;
        (c)    Plant and Equipment;
        (d)    Furniture and Fixtures;
        (e)    Vehicles;
        (f)    Office equipment;
        (h)    Bearer Plants;
        (g)    Others (specify nature).
(ii)    Assets under lease shall be separately specified under each class of
        asset as part of Notes.
        For assets under lease, an entity shall apply the presentation and
        disclosure requirements under Ind AS 116 in addition to the
        requirements of Ind AS Schedule III.
(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.
Illustrative Table
 Particulars                                                  Building
                                                      Freeh    Owner     Right to
                                                              Occupied     Use
                                                       old    property   under a
                                                                          lease
 Current Year
 At cost or fair value at the beginning of the year
    Additions
    Revaluation adjustment, if any
    Disposals
    Reclassification from/to held for sale
    Other adjustments (please specify)
 At cost or fair value at the end of the year
 Accumulated depreciation and impairment as at
 the beginning of the year
    Depreciation for the year
    Disposals
    Impairment/(reversal) of impairment


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    Reclassification from/to held for sale
    Other adjustments (please specify)
 Accumulated depreciation and impairment as at
 the end of year
 Net carrying amount as at the end of the year (A)
 Capital Work in Progress including advances for
 capital assets (B)
 Total (C) = (A) + (B)


`Similar presentation may be provided for all the above mentioned assets.


8.1.12.1 Since reconciliation of gross and net carrying amounts of Property,
Plant and Equipment, Investment Property and Other Intangible assets is
required, the corresponding depreciation/amortization for each class of asset
should be disclosed in terms of Opening Accumulated Depreciation, Depreciation
/ amortization for the year, Deductions / Other adjustments and Closing
Accumulated Depreciation / Amortization. Similar disclosures should also be
made for Impairment, if any, as applicable.
8.1.12.2 As per Ind AS 101, para D5 and D6, an entity may elect to measure an
item of property, plant and equipment at the date of transition to Ind ASs at its
fair value or use a previous GAAP revaluation as deemed cost. Further, as per
para D7AA of Ind AS 101, an entity may also consider previous GAAP carrying
amount of all its property, plant and equipment as its deemed cost on the date of
transition. In case when a company applies para D5 or para D7AA, the deemed
cost considered on the date of transition shall become the new `gross block' and
accordingly presented in the reconciliation statement as required by Ind AS
Schedule III.
8.1.12.3 In case if the company wants to disclose information regarding gross
block of assets, accumulated depreciation and provision for impairment as per
previous GAAP, the same may only be disclosed as an additional information by
way of a note forming part of the financial statements.
8.1.12.4 All acquisitions, whether by way of an asset acquisition or through a
business combination are to be disclosed as part of the reconciliation in the note
on Property, Plant and Equipment, Investment Property (refer para 8.1.10), Other
Intangible assets (refer para 8.1.16) and Biological Assets other than bearer
plants (refer para 8.1.11). Acquisitions through `Business Combinations' need to
be disclosed separately for each class of assets. Similarly, though not specifically
required, it is advisable that asset disposals through demergers, etc. may also be
disclosed separately for each class of assets.


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8.1.12.5 Other adjustments may include items as required by disclosure
requirements of Ind AS 16 and such disclosure should be made in the manner
prescribed therein. It may also include, for example net exchange gain / loss
arising on the translation of the financial statements from the functional currency
into a presentation currency.
8.1.12.6 Under the Ind AS Schedule III, land and building are presented as two
separate classes of property, plant and equipment. In contrast, paragraph 37 of
Ind AS 16 gives an example of grouping land and building under same class for
revaluation purposes. The para states that a class of property, plant and
equipment is a grouping of assets of a similar nature and use in an entity's
operations. However, companies should continue to present land and building
separately as given in Ind AS Schedule III and such presentation needs to be
followed consistently.

8.1.13. Capital work-in-progress
As per Ind AS Schedule III, capital advances should be included under other
non-financial assets and hence, cannot be included under capital work-in-
progress.

8.1.14. Intangible assets under development
Intangible Assets under development should be disclosed under this head
provided they can be recognized based on the criteria laid down in Ind AS-38
Intangible Assets .

8.1.15. Goodwill
Ind AS Schedule III requires a company to present Goodwill as a separate line
item on the face of the balance sheet apart from `Other Intangible Assets'.
Further, it requires 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.

8.1.16. Other Intangible assets
The company shall disclose the following in the Notes to Accounts:
(i)    Classification shall be given as:
       (a) Brands / trademarks;
       (b) Computer software;


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       (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;
       (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 or
       reversals shall be disclosed separately.
The guidance given above on Property, Plant and Equipment, to the extent
applicable, is also to be used for Other Intangible Assets.
8.1.17. Contract assets and impairment thereof
Ind AS 115 requires in case of a contract with customer, when either party has
performed, to present a contract asset in the balance sheet as a line item
separate from trade receivables. Contract asset arises if an entity performs by
transferring goods or services to a customer before the customer pays
consideration or before payment is due. It excludes any amounts presented as a
receivable.
The presentation requirements of trade receivables (viz., secured and
unsecured, considered good, significant increase in credit risk and credit
impaired) may be applied to contract assets if a company has sufficient and
appropriate information.
Ind AS 115 also requires impairment of contract assets to be measured
presented and disclosed on the same basis as a financial asset that is within
the scope of Ind AS 109.
Accordingly, all the impairment related requirements as outlined above for trade
receivables (Section 8.1.4) shall be applied to contract assets as well.




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8.1.18. Other non-financial assets (to be specified)
Capital advances are advances given for procurement of Property, Plant and
Equipment including bearer plants, Investment Property, Other Intangible
Assets or Biological Assets which are non-financial assets. Typically,
companies do not expect to realize them in cash. Rather, over the period,
these get converted into Property, Plant and Equipment including bearer
plants, Investment Property, Other Intangible assets or Biological Assets,
respectively, which are non-financial assets. Hence, capital advances should
be treated as other non-financial assets irrespective of when the Property,
Plant and Equipment including bearer plants, Investment Property, Other
Intangible assets or Biological Assets are expected to be received.
Security Deposits under other non-financial assets should include those
deposits which do not meet the definition of a financial asset.
Other advances include all other items in the nature of advances which do
not meet the definition of a financial asset viz., Prepaid expenses, GST
receivable, etc.
It may be noted that in case advances are of the nature of a financial asset
as per Ind AS 32, these are to be disclosed under `other financial assets'
separately.
Non-current Assets and disposal group held for sale
The presentation of liabilities associated with group of assets classified as
held for sale and non-current assets classified as held for sale shall be in
accordance with Ind AS 105.


8.2 Liabilities and Equity
Liabilities
On the face of the Balance Sheet, Ind AS Schedule III requires the following
items to be presented under financial liabilities as well as non-financial
liabilities as below:
Financial Liabilities
(a)    Derivative financial instruments
(b)    Payables


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(I) Trade Payables
 (i) total outstanding dues of micro enterprises and small enterprises
 (ii) total outstanding dues of creditors other than micro enterprises and
small enterprises
(II) Other Payables
 (i) total outstanding dues of micro enterprises and small enterprises
 (ii) total outstanding dues of creditors other than micro enterprises and
small enterprises
(c)    Debt Securities
(d)    Borrowings (Other than Debt Securities)
(e)    Deposits
(f)    Subordinated Liabilities
(g)    Other financial liabilities (to be specified)
Non-financial Liabilities
(a)    Current tax liabilities (Net)
(b)    Provisions
(c)    Deferred tax liabilities (Net)
(d)    Other non-financial liabilities (to be specified)


Financial Liabilities

8.2.1. Payables
8.2.1.1 Ind AS Schedule III requires presenting `Payables' as a separate line
item on the face of the Balance Sheet under `Financial Liabilities'.The following
shall be disclosed as sub-heads on the face of the Balance Sheet under
payables as per Division III of Schedule III:
     (I) Trade Payables
             (i) Total outstanding dues of micro enterprises and small
                  enterprises
             (ii) Total outstanding dues of creditors other than micro
                  enterprises and small enterprises

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    (II) Other Payables
             (i) Total outstanding dues of micro enterprises and small
                  enterprises
              (ii) Total outstanding dues of creditors other than micro
                  enterprises and small enterprises

8.2.1.2 A payable shall be classified as '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. Amounts due under contractual obligations other than
purchase of goods and services or statutory payables shall not be included within
Trade Payables. Such items may include dues payable in respect of statutory
obligations like contribution to provident fund or contractual obligations like
contractually reimbursable expenses, amounts due towards purchase of capital
goods, etc. These amounts should be shown under Non-financial liability (Refer
para 8.2.9).

8.2.1.3 Unpaid Creditors for Capital goods and Debts due to directors or other
officers of the NBFC or any of them either severally or jointly with any other
person or debts due to firms including LLPs, Private companies respectively in
which director is a partner or a director or a member if they are not in the nature
of `Trade Payables' should be classified as `Other payables'.

As per Schedule III, the Payables should present separately the portion
representing outstanding dues of micro and small enterprises and others.
Amount due from `Medium enterprises' shall form part of `Others'

8.2.1.4 As per the requirements of Schedule III the following shall be disclosed:
  (a) the principal amount and the interest due thereon (to be shown
        separately) remaining unpaid to any supplier at the end of each
        accounting year;
  (b) the amount of interest paid by the buyer in terms of section 16 of the
        Micro, Small and Medium Enterprises Development Act, 2006, along
        with the amount of the payment made to the supplier beyond the
        appointed day during each accounting year;
  (c) the amount of interest due and payable for the period of delay in making
        payment (which has been paid but beyond the appointed day during the
        year) but without adding the interest specified under the Micro, Small
        and Medium Enterprises Development Act, 2006;
  (d) the amount of interest accrued and remaining unpaid at the end of each


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         accounting year; and
 (e)     the amount of further interest remaining due and payable even in the
         succeeding years, until such date when the interest dues above are
         actually paid to the small enterprise, for the purpose of disallowance of a
         deductible expenditure under section 23 of the Micro, Small and Medium
         Enterprises Development Act, 2006.


Similar requirements are given under The Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006.

8.2.1.5         The terms ''appointed day'', ''buyer'', ''enterprise'', ''micro
enterprise'', "medium enterprise", ''small enterprise'' and'' supplier'', shall be as
defined under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the
Micro, Small and Medium Enterprises Development Act, 2006.

8.2.2. Debt Securities
8.2.2.1 The head `Debt Securities' under `Financial Liabilities' will include
securities other than those which are classified as `Subordinated debt'. Debt
securities shall comprise of liability component of Compound Financial
instruments as per Ind AS and Other such as Bonds and Debentures. Debt
securities should be further classified into the following measurement categories
such as
     a) Amortised Cost,
     b) Fair value through Profit or loss and
     c) Designated at Fair Value through Profit or loss.

8.2.2.2 Additional disclosures of Debt securities within India and Outside India
is required to be made.

8.2.2.3 Refer para 8.2.12.8 on guidance on liability component of compound
financial instrument. Moreover disclosure requirements as applicable to other
debt securities shall be applicable to `liability component of compound financial
instrument' under the heading `Debt securities'

8.2.2.4 Bonds or 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 earliest redemption or conversion
date, as the case may be. Where bonds/debentures are redeemable by


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instalments, the date of maturity for this purpose must be reckoned as the date
on which the first instalment becomes due.

8.2.2.5 Particulars of any redeemed bonds or debentures which the NBFC has
power to reissue shall be disclosed.

8.2.2.6 Liabilities arising out of Securitisation transactions resulting into issue of
Debt securities shall be classified as Debt securities.

8.2.3. Borrowings (Other than Debt Securities)
Borrowings (Other than Debt Securities) shall be classified as:

(a)    Term Loans
       (i) From banks
       (ii) From other parties
(b)    Deferred payment liabilities
(c)    Loans from related parties
(d)    Finance lease obligations*
(e)    Liability component of compound financial instruments
(f)    Loans repayable on demand
       (i) From banks
       (ii) From other parties
(g)    Other loans (specify nature) ­ example securitization liabilities.


*Ind AS Schedule III requires finance lease obligation to be disclosed under
Borrowings, however basis the facts and circumstances of the case the
presentation may be different i.e. if it is presented as other financial liabilities
instead of Borrowings.

8.2.3.1 The borrowings should be further classified into the following
measurement categories such as:
     a) Amortised Cost,
     b) Fair value through Profit or loss and
     c) Designated at Fair Value through Profit or loss.

Additional disclosures of Borrowings within India and Outside India is required to
be made.


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8.2.3.2 Borrowings shall further be sub-classified as secured and unsecured.
Nature of security shall be specified separately in each case.

8.2.3.3 Where borrowings have been guaranteed by directors or others, the
aggregate amount of such borrowings under each head shall be disclosed. The
word "others" used in the phrase "directors or others" would mean any person or
entity other than a director. Therefore, this is not restricted to mean only parties
related to the Directors.

8.2.3.4 Terms of repayment of term loans and other loans is also required to be
stated.

8.2.3.5 Period and amount of default as on the Balance Sheet date in
repayment of borrowings and interest shall be specified separately in each case.

8.2.3.6 The phrase "term loan" has not been defined in the Schedule III. Term
loans normally have a fixed or pre-determined maturity period and / or repayment
schedule.

8.2.3.7 Deferred payment liabilities would include any liability for which
payment is to be made on deferred credit terms. E.g. deferred payment for
acquisition of Property, Plant and Equipment, etc.

8.2.3.8 Ind AS Schedule III also stipulates that the nature of security shall be
specified separately in each case. A blanket disclosure of different securities
covering all loans classified under the same head such as `All Term loans from
banks' will not suffice. However, where one security is given for multiple loans,
the same may be clubbed together for disclosure purposes with adequate details
or cross referencing.

8.2.3.9 Disclosure about the nature of security should also cover the type of
asset given as security e.g. inventories, plant and machinery, land and building,
etc. This is because the extent to which loan is secured may vary with the nature
of asset against which it is secured.

8.2.3.10 When promoters, other shareholders or any third party have given any
personal security for any borrowing, such as shares or other assets held by
them, disclosure should be made thereof, though such security does not result in
the classification of such borrowing as secured.

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8.2.3.11 Ind AS Schedule III requires that under the head "Borrowings," period
and amount of default as on the Balance Sheet date in repayment of borrowings
and interest shall be specified separately in each case. Even one default by a
company would create an obligation to disclose the period and amount of default.
Further, in line with para 18 of Ind AS 107, if there was a default during the
reporting period, an entity shall provide a disclosure even if the default was
remedied before the financial statements were approved for issue.

8.2.3.12 The word "loan" has been used in a more generic sense. Hence, the
disclosures relating to default should be made for all items listed under the
category of borrowings such as deferred payment liabilities, finance lease
obligations, etc. and not only to items classified as "loans" such as term loans,
etc.

8.2.3.13 Ind AS Schedule III requires separate disclosure for default, as on the
balance sheet date, in repayment of borrowings and interest but does not require
any disclosure of breaches. However, para 18 of Ind AS 107 would require an
entity to disclose those breaches made during the reporting period, which
permitted the lender to demand accelerated repayment and, were not remedied
on or before the end of the reporting period.

8.2.3.14 Terms of repayment of term loans and other loans shall be disclosed.
The term `other loans' is used in general sense and should be interpreted to
mean all categories listed under the heading `Borrowings' as per Ind AS
Schedule III. Disclosure of terms of repayment should be made for each loan
unless the repayment terms of individual loans within a category are similar, they
may be aggregated.

8.2.3.15 Disclosure of repayment terms should include the period of maturity
with respect to the Balance Sheet date, number and amount of instalments due,
the applicable rate of interest, other significant and relevant terms, if any.

8.2.3.16 Loans from related parties are required to be disclosed. All the
disclosure requirements of borrowings would be applicable to such loans from
related parties.

8.2.3.17 Refer para 8.2.12.8 for guidance on liability component of compound
financial instrument. Moreover disclosure requirements as applicable to other


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Borrowings shall be applicable to `liability component of compound financial
instrument' under the heading `Borrowings'.

8.2.3.18 Liabilities arising out of Securitisation transactions resulting into issue of
Borrowings shall be classified as Borrowings.


8.2.4. Deposits
8.2.2.7 Deposits shall be classified as Public Deposits, from Banks, and
from others. Others would also include Inter corporate deposits. Deposits
should be further classified into the following measurement categories such as:
     d) Amortised Cost,
     e) Fair value through Profit or loss and
     f) Designated at Fair Value through Profit or loss.


8.2.5. Subordinated Liabilities
Subordinated Liabilities shall be classified as:
(a)   Perpetual Debt Instruments to the extent that do not qualify as
      equity;
(b)   Preference Shares other than those that qualify as equity;
(c)   Others (Specifying the nature and type of instrument issued).


The subordinated liabilities shall be disclosed both within and outside India.



Others will include those liabilities which are considered as subordinated by the
respective regulator for e.g. RBI has defined it as "subordinated debt" means an
instrument, which is fully paid up, is unsecured and is subordinated to the claims
of other creditors and is free from restrictive clauses and is not redeemable at the
instance of the holder or without the consent of the supervisory authority of the
non-banking financial company. The book value of such instrument shall be
subjected to discounting as provided hereunder:

Remaining Maturity of the instruments Rate of discount


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(a) Upto one year 100 per cent
(b) More than one year but upto two years 80 per cent
(c) More than two years but upto three years 60 per cent
(d) More than three years but upto four years 40 per cent
(e) More than four years but upto five years 20 per cent to the extent such
discounted value does not exceed fifty per cent of Tier I capital;


Disclosure as required by `debt securities' will have to be given and additional
disclosures as required by the RBI.

8.2.6. Other Financial liabilities (to be specified)
Ind AS Schedule III requires presenting `Other Financial Liabilities' as a
separate line item on the face of the Balance Sheet under `Financial
Liabilities'. Items which meet the definition of financial liabilities as per Ind
AS 32 should be presented under other financial liabilities, as under:

(a)    Interest accrued;
(b)    Unpaid dividends;
(c)    Application money received for allotment of securities to the extent
       refundable and interest accrued thereon;
(d)    Unpaid matured deposits and interest accrued thereon;
(e)    Unpaid matured debentures and interest accrued thereon;
(f)    Margin money (to be specified); and
(g)    Others (specify nature)

Items which meet the definition of financial liabilities as per Ind AS 32, like
contingent consideration, derivative contracts, financial guarantee contracts
issued, contractually reimbursable expenses etc. should be presented under
other financial liabilities.

Interest Accrued
Interest accrued on financial liabilities shall form part of its carrying amount
whether it is at amortized cost (i.e. as per effective interest method), or at fair
value. Accordingly, an entity shall not present `Interest Accrued' separately
from the related financial liability.
Offsetting a Financial Asset and a Financial Liability

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In accordance with Para 42 of Ind AS 32, to offset a financial asset and a
financial liability, an entity must have a currently enforceable legal right to set
off the recognised amounts and the intension to either settle on a net basis
or to realize the asset and settle the liability simultaneously.

Non-financial liabilities

Current Tax Liabilities

Current tax is the amount of income taxes payable (recoverable) in respect of
the taxable profit (tax loss) for a period. Currently tax for current and prior
periods shall, to the extent unpaid, be recognised as a liability.

If the amount already paid in respect of current and prior periods exceeds the
amount due for those periods, the excess shall be recognised as an asset.

8.2.7. Provisions
The amounts shall be classified as:
(a)      Provision for employee benefits;
(b)      Others (specify nature).
Others would include all provisions other than provisions for employee
benefits such as provision for litigation, provision for decommissioning
liabilities, loan commitments etc. These amounts should be disclosed
separately specifying nature thereof.
For loan commitments and financial guarantee contracts as per Ind AS 109 the
loss allowance is recognised as a provision. An entity should disclose information
about the changes in the loss allowance for financial assets separately from
those for loan commitments and financial guarantee contracts. However, if a
financial instrument includes both a loan (i.e. financial asset) and an undrawn
commitment (i.e. loan commitment) component and the entity cannot separately
identify the expected credit losses on the loan commitment component from
those on the financial asset component, the expected credit losses on the loan
commitment should be recognised together with the loss allowance for the
financial asset. To the extent that the combined expected credit losses exceed
the gross carrying amount of the financial asset, the expected credit losses
should be recognised as a provision.



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8.2.8. Deferred Tax Liability (Net)
Ind AS 12 requires companies to recognise deferred tax assets or liabilities
using a balance sheet approach, i.e. comparing the Ind AS carrying value o f
the asset or liability to its tax base

8.2.9. Other non-financial liabilities (to be specified)
The amounts shall be classified as:

(a) Revenue received in advance;
(b) Other advances (specify nature);
(c) Others (specify nature).
Other advances, that satisfy the requirements for being classified as non-
financial liabilities as defined in Ind AS 32, should be classified under `Other
non- financial liabilities'. For e.g., amount received in advance. Others should
include items under other non-financial liabilities for e.g., statutory dues
payable, legal claims outstanding.
Trade Deposits and Security Deposits, which do not meet the definition of
financial instruments, should be classified as `Others' grouped under this
head. Others may also include liabilities in the nature of statutory dues such
as Withholding taxes, Goods and Services Tax (GST), etc.
Guidance on disclosure under this clause should be drawn from the guidance
given under Other Financial Liabilities, to the extent applicable.


Contract Liability
Ind AS 115 requires in case of a contract with customer, when either party has
performed, to present a contract liability in the balance sheet. Contract liability
arises if a customer pays consideration, or an entity has a right to an amount
of consideration that is unconditional (i.e. a receivable), before the entity
transfers a good or service to the customer, the entity shall present the
contract as a contract liability when the payment is made or the payment is
due (whichever is earlier).
A company shall apply the requirements of Ind AS 1 and Ind AS 32 to
determine whether it is appropriate to offset contract assets and liabilities
against other balance sheet items (e.g., receivables).


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8.2.10. Liabilities for assets held for sale
As per Ind AS 105, the liabilities associated with group of assets classified
as held for sale and assets classified as held for sale shall be presented
under this section.

8.2.11. Contingent liabilities and commitments
    (i) Contingent liabilities shall be classified as:
         (a) Claims against the company not acknowledged as debt;
         (b) Guarantees excluding financial guarantees; and
         (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)

The provisions of Ind AS-37 Provisions, Contingent Liabilities and Contingent
Assets , will be applied for determining contingent liabilities.
8.2.11.1 Ind AS Schedule III requires guarantees other than financial
guarantees to be disclosed as a part of contingent liabilities, since financial
guarantees are recognized on the balance sheet in accordance with Ind AS
109. Ind AS 107 specifies certain disclosure in respect of the exposure to
credit risk on financial guarantee contracts as a part of the disclosures on
`credit risk exposures', which an entity should provide in its Notes to
Accounts.

Where a company undertakes to perform its own obligations, and for this
purpose issues, what is called a "guarantee", it does not represent a
contingent liability and it is misleading to show such items as contingent
liabilities in the Balance Sheet. For various reasons, it is customary for
guarantees to be issued by Bankers e.g. for payment of insurance premium,
deferred payments to foreign suppliers, letters of credit, etc. For this
purpose, the company issues a "counter-guarantee" to its Bankers. Such
"counter-guarantee" is not really a guarantee at all, but is an undertaking to
perform what is in any event the obligation of the company, namely, to pay


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the insurance premium when demanded or to make deferred payments when
due. Hence, such performance guarantees and counter guarantees should
not be disclosed as contingent liabilities.

8.2.11.2 The Ind AS Schedule III also requires disclosures pertaining to
various commitments such as Capital commitments not provided for and
Uncalled liability on shares. It also requires disclosures pertaining to `Other
commitments', with specification of nature thereof.
8.2.11.3 The word `commitment' has not been defined in the Schedule III.
The Guidance Note on Terms Used in Financial Statements issued by ICAI
defines `Capital Commitment' as future liability for capital expendit ure in
respect of which contracts have been made. Hence, drawing inference from
such definition, the term `commitment' would simply imply future liability for
contractual expenditure. Accordingly, the term `Other commitments' would
include all expenditure related contractual commitments apart from capital
commitments such as undrawn lease commitments, employee contracts,
lease commitments, etc. However, the disclosure of all contractual
commitments should be made bearing in mind the overarching principle
under Note 4(ii) in General Instructions for Preparation of Financial
Statements that "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 t oo much aggregation."
8.2.11.4 Disclosures relating to lease commitments are required to be
disclosed as per Ind AS-116 Leases for example short term leases as per
para 5 of Ind AS 116.
8.2.11.5 Accordingly, the disclosures required to be made for `other
commitments' should include only those non-cancellable contractual
commitments (i.e. cancellation of which will result in a penalty
disproportionate to the benefits involved) based on the professional
judgement of the management which are material and relevant in
understanding the Financial Statements of the company and impact the
decision making of the users of Financial Statements. Examples may include
commitments in the nature of buy-back arrangements, commitments to fund
subsidiaries and associates, non-disposal of investments in subsidiaries and
undertakings, derivative related commitments, etc. Care should be taken to
ensure that items that are to be reflected as liabilities under Ind AS do not

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get disclosed under this head and appropriate disclosure required by Ind AS
should be complied with.
8.2.11.6 The Ind AS Schedule III requires disclosure of the amount of
dividends proposed to be distributed to equity and preference shareholders
for the period and the related amount per share to be disclosed separately.
Though, the Act prohibits issue of irredeemable preference shares, Ind AS
Schedule III requires separate disclosure of the arrears of fixed cumulative
dividends on irredeemable preference shares. Term `irredeemable' is used in
the context of compulsorily convertible preference share rather than in the
context of perpetual preference share which are neither convertible nor
redeemable. Ind AS-10 Events after the Reporting Period requires that
dividends in respect of the period covered by the Financial Statements,
which are proposed or declared by the enterprise after the Balance Sheet
date but before approval of the Financial Statements, should not be adjusted
but should be disclosed in accordance with Ind AS-1 Presentation of
Financial Statements .
The Ind AS Schedule III requires that where, in respect of an issue of
securities made for a specific purpose, the whole or part of the amount has
not been used for the specific purpose at the Balance Sheet date, then the
company shall indicate by way of note, how such unutilized amounts have
been used or invested.
Equity
Under this head, following line items are to be disclosed on the face of the
Balance Sheet:
       Equity Share Capital;
       Other Equity;
Ind AS Schedule III, Part I ­ Format of Balance Sheet includes not only the
format of Balance Sheet but also includes a `Statement of Changes in Equity'
comprising (A) Equity Share Capital and (B) Other Equity. Presentation and
Disclosures for both of these are included in Note (S) and (T) to General
Instructions for Preparation of Balance Sheet.
In the Statement of Changes in Equity, the portion for `Equity Share Capital'
provides reconciliation:
(a)    Balance at the beginning of the reporting period;

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(b)     Changes in equity share capital during the year;
(c)     Balance at the end of the reporting period.
As a part of Statement of Changes in Equity, the portion for `Other Equity'
requires an entity to provide a reconciliation during a particular reporting
period, as a part of one single statement, of all items other than equity share
capital, that are attributable to the holders of equity instruments of an entity.
The items included in columnar form are listed below:
(a)     Share application money pending allotment;
(b)     Equity component of compound financial instruments;
(c)     Reserves and Surplus:
        (i)     Capital Reserve;
        (ii)    Securities Premium Reserve;
        (iii)   Other Reserves (specify nature);
        (iv)    Retained Earnings;
(d)     Debt instruments at fair value through other comprehensive income;
(e)     Equity instruments at fair value through other comprehensive income;
(f)     Effective portion of Cash Flow Hedges;
(g)     Revaluation Surplus;
(h)     Exchange differences on translating the financial statements of a
        foreign operation;
(i)     Other items of other comprehensive income (specify nature);
(j)     Money received against share warrants;
(k)     Non-controlling interests (for Statement of Changes in Equity of
        Consolidated Financial Statements)
The reconciliation of above line items needs to be provided by way of the
following line items:
(i)     Balance at the beginning of the reporting period;
(ii)    Changes in accounting policy or prior period errors;
(iii)   Restated balance at the beginning of the reporting period;


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(iv)    Total comprehensive income for the year;
(v)     Dividends;
(vi)    Transfer to retained earnings;
(vii)   Any other change (to be specified);
(viii) Balance at the end of the reporting period.
Reconciliation as described in para 109 of Ind AS 1 stat es that, "changes in
an entity's equity between the beginning and the end of the reporting period
reflect the increase or decrease in its net assets during the period. Except for
changes resulting from transactions with owners acting in their capacity as
owners (such as equity contributions, reacquisitions of the entity's own equity
instruments and dividends) and transaction costs directly related to such
transactions, the overall change in equity during a period represents the total
amount of income and expenses, including gains and losses, generated by
the entity's activities during that period."

8.2.12. Equity Share Capital
8.2.12.1 Notes to the General Instructions for Preparation of Balance Sheet
require a company to disclose in the Notes items referred to in Note (S).
Such disclosures are required for each class of equity share capital. The
disclosure requirements for share capital are common under Non-Ind AS
Schedule III as well as Ind AS Schedule III. However, Division III restricts the
disclosures to `Equity' while D ivision I makes it applicable for all kinds of
`Share Capital' but states an exception that different classes of preference
shares are to be treated separately.
8.2.12.2 As per ICAI Guidance Note on Terms Used in Financial Statements,
`Capital' refers "to the amount invested in an enterprise by its owners e.g.
paid-up share capital in a corporate enterprise. It is also used to refer to the
interest of owners in the assets of an enterprise ."
8.2.12.3 The said Guidance Note defines `Share Capital' as the "aggregate
amount of money paid or credited as paid on the shares and/or stocks of a
corporate enterprise."
8.2.12.4 Section 2(84) of the Act defines "share" as " a share in the share
capital of a company and includes stock" . While, section 2(30) of the Act
defines "debenture" to "include debenture stock, bonds or any other

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instrument of a company evidencing a debt, whether constituting a charge on
the assets of the company or not" . Further, section 43 of the Act gives two
kinds of share capital of a company limited by shares viz.,
(a)    Equity share capital;
(b)    Preference share capital.
8.2.12.5 On the other hand, Ind AS 32 defines an equity instrument as " any
contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities" . The accounting definition of `Equity' is principle
based as compared to the legal definition of `Equity' or `Share', such that any
contract that evidences residual interest in an entity's net asset is termed as
`Equity' irrespective of whether it is legally recognized as a `Share' or not.
Accordingly, all instruments (including convertible preference shares and
convertible debentures) that meet the definition of `Equity' as per Ind AS 32
in its entirety and when they do not have any component of liability, should
be considered as having the n ature of `Equity' for the purpose of Ind AS
Schedule III. Such instruments shall be termed as `Instruments entirely equity
in nature'.
 As per Para 11 of Ind AS 32 "The issuer of a financial instrument shall
classify the instrument, or its component parts, on initial recognition as a
financial liability, a financial asset or an equity instrument in accordance with
the substance of the contractual arrangement and the definitions of a
financial liability, a financial asset and an equity instrument." A preference
share, for example, may display either equity or liability characteristics
depending on the substance of the rights attaching to it.
8.2.12.6 Instruments entirely equity in nature, may be presented as a
separate line item on the face of the Balance Sheet under `Equity' after
`Equity Share Capital' but before `Other Equity', as shown below:
Name of the Company..........
Balance Sheet as at...............
                                                              (Rupees in.............)
         Particulars                             Note      Figures       Figures
                                                 No.       as at the     as at the
                                                            end of        end of


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                                                           current       previous
                                                          reporting      reporting
                                                           period          period
         EQUITY AND LIABILITIES
         Equity
         (a) Equity Share Capital
         (b) Instruments entirely equity in
         nature
         (c) Other Equity

In the Statement of Changes in Equity, the reconciliation for instruments
entirely equity in nature should be presented as below:
                    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 Changes in equity             Balance at the end of
beginning      of     the share capital during          the reporting period
reporting period          the period


B.     Instruments entirely equity in nature *
(a)    Compulsorily Convertible Preference Shares
Balance       at      the Changes              in       Balance at the end of
beginning      of     the compulsorily                  the reporting period
reporting period          convertible preference
                          shares during the
                          period




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(b)    Compulsorily Convertible Debentures
Balance       at      the Changes              in       Balance at the end of
beginning      of     the compulsorily                  the reporting period
reporting period          convertible debentures
                          during the period


(c)    [Instrument] (Any other instrument entirely equity in nature)
Balance       at      the Changes               in      Balance at the end of
beginning      of     the [Instrument] during the       the reporting period
reporting period          period







C.     Other Equity
[Table providing reconciliation of Other Equity]
* It is assumed that Instruments entirely equity in nature have such terms and
conditions that qualify them for being entirely equity in nature based on the
criteria given in para 16 of Ind AS 32. Companies should assess terms and
conditions specific to their instruments for deciding whether they are entirely
equity in nature.
All the disclosures as required by Note (S) to General Instructions in
Preparation of Balance Sheet shall be provided for all instruments entirely
equity in nature, to the extent applicable.
8.2.12.7 Premium received on Compulsorily Convertible Preference Shares
which are entirely equity in nature shall be classified and presented as a part
of `Other Equity' under `Securities Premium'.
8.2.12.8 As per Para 28 of Ind AS 32, "The issuer of a non-derivative
financial instrument shall evaluate the terms of the financial instrument to
determine whether it contains both a liability and an equity component. Such
components shall be classified separately as financial liabilities, financial
assets or equity instruments in accordance with paragraph 15 " . Hence, all
those compound financial instruments which have both `Equity' and `Liability'
components, shall be split and their `Equity component' shall be presented
under `Other Equity' portion of Statement of Changes in Equity while their


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`Liability component' shall be presented as a separate line item under either
`Debt Securities' or `Borrowings'.
An entity may issue an instrument that at the end of its life is mandatorily
convertible into a fixed number of its equity shares (rather than conversion
being at the option of the holder). This instrument may carry an obligation for
the issuer for fixed interest payments during the life of the mandatorily
convertible instrument. In such a case, the instrument also includes a
financial liability component.


8.2.12.9 Ind AS Schedule III, Notes 2 and 3 of Other Classification related
General Instructions highlight that the disclosure and presentation
requirements as applicable to the relevant class of `Equity' or `Liability' shall
be applicable mutatis mutandis to the instruments (including, their
components) classified and presented under the relevant heads in `Equity'
and `Liabilities'. Accordingly, it is recommended that the companies provi de
all the relevant disclosures for `Equity component of a compound financial
instrument' as applicable to `Equity Share Capital' (given in Note (S) of
General Instructions for Preparation of Balance Sheet), to the extent
applicable. An example could be to disclose, for equity component of
compound financial instrument, terms as per Clause (j) i.e. 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, etc. For
the liability component of compound financial instruments, all the disclosures
applicable to `Debt Securities' and `borrowings' (refer para 8.2.2 and 8.2.3)
shall be made, to the extent applicable. An example could be to disclose the
rate of interest, particulars of redemption or conversion stated in descending
order of maturity or conversion, etc. However, for those instruments which
are entirely liability in nature, all disclosures applicable to `Borrowings' or
`Debt Securities' should be made.
8.2.12.10 Clause (a) of Note (S) - the number and amount of shares
authorized:
As per the Guidance Note on Terms Used in Financial Statements
`Authorised Share Capital' means "the number and par value, of each class
of shares that an enterprise may issue in accordance with its instrument of
incorporation. This is sometimes referred to as nominal share capital ."



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This disclosure is recommended for instruments entirely equity in nature as
well as for compound instruments that have an equity component, to the
extent applicable.
8.2.12.11 Clause (b) of Note (S) - the number of shares issued,
subscribed and fully paid, and subscribed but not fully paid:
The disclosure is for shares:
       Issued;
       Subscribed and fully paid;
       Subscribed but not fully paid.
Though the disclosure is only for the number of shares under each of the
above three categories, to make the disclosure relevant to understanding the
company's share capital, even the amount for each category above should
be disclosed. Issued shares are those which are offered for subscription
within the authorised limit. It is possible that all shares offered are not
subscribed to and to the extent of unsubscribed portion, there will be
difference between shares issued and subscribed. As per the Guidance Note
on Terms Used in Financial Statements, the expression `Subscribed Share
Capital' is "that portion of the issued share capital which has actually been
subscribed and allotted. This includes any bonus shares issued to the
shareholders."
Though there is no requirement to disclose the amount per share called, if
shares are not fully called, it should be appropriate to state the amount per
share called.
As per the definition contained in the Guidance Note on Terms Used in
Financial Statements, the expression `Paid- up Share Capital' is "that part of
the subscribed share capital for which consideration in cash or otherwise has
been received. This includes bonus shares allotted by the corporate
enterprise."
This disclosure is recommended for instruments entirely equity in nature as
well as for compound instruments that have an equity component, to the
extent applicable.
8.2.12.12 Clause (c) of Note (S) ­ par value per share:



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Par value per share is the face value of a share as indicated in the Capital
Clause of the Memorandum of Association of a company. It is also referred
to as `face value' per share. In the case of a company having share capital,
(unless the company is an unlimited company), the Memorandum shall also
state the amount of share capital with which the company is registered and
their division thereof into shares of fixed amount as required under clause
(e)(i) to the sub-section (1) of section 4 of the Act. In the case of a company
limited by guarantee, Memorandum shall state that each member undertakes
to contribute to the assets of the company in the event of winding -up while
he is a member or within one year after he ceases to be a member, for
payment of debts and liabilities of the company, as the case may be. There is
no specific mention for the disclosure by companies limited by guarantee and
having share capital, and companies limited by guarantee and not having
share capital. Such companies need to consider the requirement so as to
disclose the amount each member undertakes to contribute as per their
Memorandum of Association.
This disclosure is recommended for instruments entirely equity in nature as
well as for compound instruments that have an equity component, to the
extent applicable.
8.2.12.13 Clause (d) of Note (S) ­ a reconciliation of the number of
shares outstanding at the beginning and at the end of the reporting
period:
As per Ind AS Schedule III, opening number of shares outstanding, shares
issued, shares bought back, other movements, etc. during the year and
closing number of outstanding shares should be shown. Though the
requirement is only for a reconciliation of the number of shares, as given for
the disclosure of issued, subscribed capital, etc. [Clause (b) of Note (S)]
above, to make the disclosure relevant for understanding the company's
share capital, the reconciliation is to be given even for the amount of share
capital. Reconciliation for the comparative previous period is also to be
given. Further, the above reconciliation should be disclosed separately for
each class of Equity Shares issued.
This disclosure is recommended for instruments entirely equity in nature.
Also, for compound instruments having both equity and liability components,
the reconciliation should be given for total number of shares / debentures


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outstanding, which will facilitate understanding the movement of compound
instrument upon either redemption or conversion or when both occur partly.
8.2.12.14 Clause (e) of Note (S) ­ the rights, preferences and restrictions
attaching to each class of shares including restrictions on the
distribution of dividends and the repayment of capital:
As per the Guidance Note on Terms Used in Financial Statements, the
expression `Preference Share Capital' means "that part of the share capital of
a corporate enterprise which enjoys preferential rights in respect of payments
of fixed dividend and repayment of capital. Preference shares may also have
full or partial participating rights in surplus profits or surplus capital." The
rights, preferences and restrictions attached to shares are based on the
classes of shares, terms of issue, etc., whether equity or preference. In
respect of Equity Share Capital, it may be with voting rights or with
differential voting rights as to dividend, voting or otherwise in accordance
with such rules and subject to such conditions as may be prescribed under
Companies (Share Capital and Debentures) Rules, 2014. In respect of
Preference Shares, the rights include (a) with respect to dividend, a
preferential right to be paid a fixed amount or at a fixed rate and, (b) with
respect to capital, a preferential right of repayment of amount of capital on
winding up. For Compulsorily Convertible Debentures, the rights could be
with the holder to convert into Equity Shares.
This disclosure is recommended for instruments entirely equity in nature as
well as for compound instruments that have an equity component, to the
extent applicable.
8.2.12.15 Clause (f) of Note (S) ­ 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:
The requirement is to disclose shares of the company held by -
       Its holding company;
       Its ultimate holding company;
       Subsidiaries of its holding company;
       Subsidiaries of its ultimate holding company;


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       Associates of its holding company; and
       Associates of its ultimate holding company.
Aggregation should be done for each of the above categories.
The terms `subsidiary' and `associate' should be understood as defined
under Ind AS 110 and Ind AS 28. The term `holding company' is not defined
in Ind AS, therefore, it may be referred from the definition as per Section 2
(46) of the Act. The equivalent term `parent' is defined in Ind AS 110.
Notwithstanding the aforesaid definitions, for the purposes of the above
disclosures, shares held by the entire chain of subsidiaries and associates
starting from the holding company and going right up to the ultimate holding
company would have to be disclosed.
In case of a joint arrangement viz., a joint venture or a joint operation
conducted through a separate legal entity, disclosure may be made for
shares of such joint arrangement held by its venturers.
This disclosure is recommended for instruments entirely equity in nature, to
the extent applicable.
8.2.12.16 Clause (g) of Note (S) ­shares in the company held by each
shareholder holding more than 5 percent shares specifying the number
of shares held:
In the absence of any specific indication of the date of holding, the date for
computing such percentage should be taken as the Balance Sheet date. For
example, if during the year, any shareholder held more than 5% Equity
shares but does not hold as much at the Balance Sheet date, disclosur e is
not required. Though it is not specified as to whether the disclosure is
required for each class of shares or not, companies should disclose the
shareholding for each type of Equity Instruments. Accordingly, such
percentage should be computed separately for each class of shares
outstanding within Equity Shares. This information should also be given for
the comparative previous period.
This disclosure is recommended for instruments entirely equity in nature, to
the extent applicable.
8.2.12.17 Clause (h) of Note (S)­ shares reserved for issue under
options and contracts or commitments for the sale of shares or
disinvestment, including the terms and amounts:

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Shares under options generally arise under promoters or collaboration
agreements, loan agreements or debenture deeds (including convertible
debentures), agreement to convert preference shares into equity shares,
ESOPs or contracts for supply of capital goods, etc. The disclosure would be
required for the number of shares, amounts and other terms for shares so
reserved. Such options are in respect of unissued portion of share capital.
This disclosure is recommended for instruments entirely equity in nature as
well as for compound instruments that has an equity component and liability
component, to the extent applicable.
8.2.12.18 Clause (i) of Note (S) ­ For the period of five years immediately
preceding the date as at which the Balance Sheet is prepared:(a)
Aggregate number and class of shares allotted as fully paid up pursuant
to contract(s) without payment being received in cash. (b) Aggregate
number and class of shares allotted as fully paid up by way of bonus
shares. (c) Aggregate number and class of shares bought back:
(a)    Aggregate number and class of shares allotted as fully paid up
       pursuant to contract(s) without payment being received in cash.
       The following illustrate the allotments which are considered as shares
       allotted for payment being received in cash and not as without
       payment being received in cash and accordingly, the same are not to
       be disclosed under this Clause:
       (i)    If the subscription amount is adjusted against a bona fide debt
               payable in money at once by the company;
       (ii)   Conversion of loan into shares in the event o f default in
              repayment.
(b)    Aggregate number and class of shares allotted as fully paid up by way
       of bonus shares.
       As per the Guidance Note on Terms Used in Financial Statements
       `Bonus shares' are defined as shares allotted by capitalisation of the
       reserves or surplus of a corporate enterprise. The requirement of
       disclosing the source of bonus shares is omitted in the Schedule III.
(c)    Aggregate number and class of shares bought back.



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       The total number of shares bought back for each class of shares
       needs to be disclosed.
All the above details pertaining to aggregate number and class of shares
allotted for consideration other than cash, bonus shares and shares bought
back need to be disclosed only if such event has occurred during a period of
five years immediately preceding the Balance Sheet date. Since disclosure is
for the aggregate number of shares, it is not necessary to give the year-wise
break-up of the shares allotted or bought back, but the aggregate number for
the last five financial years needs to be disclosed.
This disclosure is recommended for instruments entirely equity in nature, to
the extent applicable.
8.2.12.19 Clause (j) of Note (S) ­ Terms of any securities convertible into
equity/preference shares issued along with the earliest date of
conversion in descending order starting from the farthest such date:
Under this Clause, disclosure is required for any security, when it is either
convertible into equity or preference shares. In this case, terms of such
securities and the earliest date of conversion are required to be disclosed. If
there are more than one date of conversion, disclosure is to be made in the
descending order of conversion. If the option can be exercised in different
periods then earlier date in that period is to be considered. In case of
compulsorily convertible securities, where conversion is done in fixed
tranches, all the dates of conversion have to be considered. Terms of
convertible securities are required to be disclosed under this Clause.
However, in case of Convertible debentures/bonds, etc., for the purpose of
simplification, reference may also be made to the terms disclosed und er the
note on borrowings where these are required to be classified in the Balance
Sheet, rather than disclosing the same again under this clause.
This disclosure is recommended for instruments entirely equity in nature and
compound instruments that have an equity component and a liability
component. In other words, this disclosure is not required for instruments
entirely liability in nature (for e.g., those instruments which entirely meet the
definition of a financial liability as per para 11 of Ind AS 32) since similar
disclosure needs to be provide d as a part of `Borrowings'. Accordingly,
duplication of disclosures is not intended.



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8.2.12.20 Clause (k) of Note (S) - Calls unpaid (showing aggregate value
of calls unpaid by directors and officers):
A separate disclosure is required for the aggregate value of calls unpaid by
directors and also officers of the company.
However, the unpaid amount towards shares subscribed by the subscribers
of the Memorandum of Association should be considered as 'subscribed and
paid-up capital' in the Balance Sheet and the debts due from the subscriber
should be appropriately disclosed as an asset in the balance sheet.
This disclosure is recommended for instruments entirely equity in nature, to
the extent applicable.
8.2.12.21 Clause (m) of Note (S) - An NBFC shall disclose information
that enables users of its financial statements to evaluate the NBFC's
objectives, policies and processes for managing capital.


Para 134 of Ind AS 1 also requires an entity to disclose information that
enables users of its financial statements to evaluate the entity's objectives,
policies and processes for managing capital. . Hence guidance as stated in
Para 135 and 136 of Ind AS 1 may be referred upon for this disclosure.

8.2.13. Other Equity
Note (T) of the General Instructions for Preparation of Balance Sheet deals
with the disclosures of "Other Equity" in the Notes. Disclosure should be
made for the nature and amount of each item.
Disclosures in Other Equity are required to be made for the following:
(i)    Share application money pending allotment
       Share Application money pending allotment is to be disclosed as a
       separate line item under Other Equity. Note 2 of Other Classification
       related General Instructions states that share application money
       pending allotment shall be classified into equity or liability in
       accordance with relevant Ind AS. Share application money to the
       extent not refundable shall be shown in this line item and share
       application money to the extent refundable shall be separately shown
       under `other financial liabilities'.


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(ii)    Equity component of compound financial instruments
        For compound financial instruments that have both equity as well as
        liability component, Ind AS 32 requires splitting the two components
        and separately recognizing `equity component of compound financial
        instrument'. Such equity co mponent is required to be presented as a
        part of `Other Equity' under this head. On the other hand, the `liability
        component of compound financial instrument' is required to be
        presented as a part of `Borrowings' (refer para 8.2.3. above).For
        recommended disclosures for equity component of compound financial
        instrument, refer guidance given in para 8.2.12.8 Reserves and
        Surplus ­ these shall be further disclosed as (discussed in para
        8.2.13):
        (a)   Capital Reserve;
        (b)   Securities Premium;
        (c)   Other Reserves
                  i.   Capital Redemption Reserve;
                 ii.   Debenture Redemption Reserve;
                iii.   Share Options Outstanding Account;
                iv.    Statutory Reserves;
                 v.    Others ­ (specify the nature and purpose of each reserve
                       and the amount in respect thereof);
        (d)   Retained Earnings.
(iii)   Debt Instruments through Other Comprehensive Income ­
        As per Ind AS 109, investments are subsequently measured at FVOCI
        based on the company's business model for managing the portfolio of
        debt instruments as well as the debt instruments' contractual cash flow
        characteristics. Any fair value gain or loss on debt instruments
        measured at FVOCI is presented as a part of Other Equity under this
        heading until the debt instrument is derecognized;
(iv)    Equity Instruments through Other Comprehensive Income ­
        As per Ind AS 109, companies have an option to designate
        investments in equity instruments to be measured at FVOCI. For such

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        instruments, the cumulative fair value gain or loss is presented as a
        part of Other Equity under this heading;
(v)     Effective portion of Cash Flow Hedges ­
        For all qualifying cash flow hedges, this component of Other Equity
        associated with the hedged item (i.e. cash flow hedge reserve) is
        adjusted to the lower of the cumulative change in the fair value of the
        hedging instrument and the cumulative change in the fair value of the
        hedged item attributable to the hedged risk. The portion of the gain or
        loss on the hedging instrument that is determined to be an effective
        hedge (i.e. the portion that is offset by the change in the cash flow
        hedge reserve) is recognized in Other Comprehensive Income. Also,
        Ind AS 109 requires that exchange differences on monetary items that
        qualify as hedging instruments in a cash flow hedge are recognized
        initially in other comprehensive income to the extent that the hedge is
        effective;
(vi)    Revaluation Surplus ­
        As per Ind AS 16 and Ind AS 38 , if an asset's carrying amount is
        increased as a result of revaluation, the increase shall be recognized
        in other comprehensive income and accumulated in equity under the
        heading of revaluation surplus. However, such increase shall be
        recognized in profit or loss to the extent that it reverses a revaluation
        decrease of the same asset previously recognized in profit or loss.
        Correspondingly, decreases as a result of revaluation are recognized
        in other comprehensive income thereby reducing the amount
        accumulated under this heading of revaluation surplus, to the extent of
        any credit balance existing in the revaluation surplus in respect of that
        asset.
(vii)   Exchange differences on translating the Financial Statements of a
        foreign operation ­
        In accordance with Ind AS 21 The Effects of Changes in Foreign
        Exchange Rates , the exchange differences arising on translation of the
        financial statements of foreign operation from functional currency to
        presentation currency needs to be included in this head of OCI.
(viii) Other items of Other Comprehensive Income (specific nature)

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       Any other items that need to be presented in Other Comprehensive
       Income as per the relevant Ind AS shall be included under this head of
       OCI.
       Refer para 8.2.13.3. for guidance on presentation of `re -measurement
       of defined benefit plans'.
(ix)   Money received against share warrants
       Generally, in case of listed companies, share warrants are issued to
       promoters and others in terms of the Guidelines for preferential issues
       viz., SEBI (Issue of Capital and Disclosure Requirements), Guidelines,
       2009. Ind AS 33 Earnings per Share defines `warrants' as "financial
       instruments which give the holder the right to acquire equity shares".
       Thus, effectively, warrants are nothing but the amount which would
       ultimately form part of the Shareholders' funds. Since shares are yet to
       be allotted against the same, these are not reflected as part of Share
       Capital but as a separate line item ­ `Money received against share
       warrants.'
8.2.13.1 Reserves & Surplus:
Ind AS 103, Appendix C on Business Combinations under Common Control
defines the term `Reserve' as "the por tion of earnings, receipts or other
surplus of an entity (whether capital or revenue) appropriated by the
management for a general or a specific purpose other than a provision for
depreciation ." `Reserves' should be distinguished from `provisions'. For thi s
purpose, reference may be made to the definition of the expression
`provision' in Ind AS 37 Provisions, Contingent Liabilities and Contingent
Assets.
As per Ind AS 37 , a `provision' is "a liability of uncertain timing or amount". A
`liability' is "a pres ent obligation of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits." `Present obligation' ­ "an
obligation is a present obligation if, taking account of all available evidence, it
is more likely than not that a present obligation exists at the end of the
reporting period".
(a)    Capital Reserves :
It is necessary to make a distinction between capital reserves and revenue


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reserves in the accounts. A revenue reserve is a reserve which is available
for distribution. The term "Capital Reserve" has not been defined under Ind
AS Schedule III. However, as per the Guidance Note on Terms Used in
Financial Statements, the expression `capital reserve' is defined as "a
reserve of a corporate enterprise which is not available for distribution as
dividend ". Though the Ind AS Schedule III does not have the requirement of
"transferring capital profit on reissue of forfeited shares to capital reserve",
since profit on re-issue of forfeited shares is basically transaction with the
shareholders / owners of entity hence it should be recognized in equity as a
credit to Capital Reserve.
A gain on bargain purchase arising in a business combination where clear
   evidence of the underlying reasons does not exist, shall be recognized
   directly in equity as Capital Reserves as per para 36 of Ind AS 103.
   Further as per para 34 of Ind AS 103 where clear evidence of the
   underlying reasons exists the acquirer shall recognise the resulting gain
   in other comprehensive income on the acquisition date and accumulate
   the same in equity as capital reserve.
(b)    Securities Premium:
The Guidance Note of Terms Used in Financial Statements defines `Share
Premium' as "the excess of the issue price of shares over their face value."
Other Reserves (specify the nature and purpose of reserve and the
amount in respect thereof) :
Every other reserve which is not covered in above paragraphs is to be
reflected as `Other Reserves'. However, since the nature, purpose a nd the
amount are to be shown, each reserve under `Other Reserves' is to be
shown separately in Notes to Accounts. This would include, for e.g., reserves
to be created under other statutes.
(i)    Capital Redemption Reserve:
       Under the Act, Capital Redemption Reserve is required to be created
       in the following two situations:
       (a)    Under the provisions of Section 55 of the Act, where the
              redemption of preference shares is out of profits, an amount
              equal to nominal value of shares redeemed is to be transferred
              to a res erve called `capital redemption reserve'.

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        (b)   Under Section 69 of the Act, if the buy-back of shares is out of
              free reserves, the nominal value of the shares so purchased is
              required to be transferred to capital redemption reserve from
              distributable profit.
(ii)    Debenture Redemption Reserve :
        According to Section 71 of the Act where a company issues
        debentures, it is required to create a debenture redemption reserve for
        the redemption of such debentures. The company is required to credit
        adequate amounts, out of its profits every year to debenture
        redemption reserve, until such debentures are redeemed.
        On redemption of the debentures for which the reserve is created, the
        amounts no longer necessary to be retained in this account need to be
        transferred to the Retained Earnings. The Ministry of Corporate Affairs
        on 19th August 2019 has amended the Companies (Share Capital &
        Debentures) Rules by removing Debenture Redemption Reserve
        requirement for Listed Companies, NCFCs and HFCs. The
        Amendment


(iii)   Share Options Outstanding Account :
        Ind AS Schedule III requires Share Options Outstanding Account to be
        shown as a part of `Reserve and Surplus' under `Other Reserves'.
(iv)    Statutory Reserves:
        Ind AS Schedule III requires Statutory Reserves to be shown as a part
        of `Reserve and Surplus' under `Other Reserves'. For instance,
        Section 29C (i) of The National Housing Bank Act, 1987 defines that
        every housing finance institution which is a Company shall create a
        reserve fund and transfer therein a sum not less than twenty percent
        of its net profit every year as disclosed in the statement of profit and
        loss before any dividend is declared. For this purpose any special
        reserve created by the Company under Section 36(1) (viii) of Income
        tax Act 1961, is considered to be an eligible transfer.
        Similarly section 45-IC of Reserve Bank of India Act, 1934 requires
        every non-banking financial company to create a reserve fund to
        transfer a sum not less than twenty per cent of its net profit every year

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       as disclosed in the profit and loss account and before any dividend is
       declared.


       Thus, the amounts transferred to such reserve and the nature and
       purpose of the reserve shall be disclosed.


(c) Additions and deductions since the last Balance Sheet to be
shown under each of the specified heads:
This requires the company to disclose the movement in each of the reserves
and surplus since the last Balance Sheet.
Further, as per Ind AS Schedule III, a reserve specifically represented by
earmarked investments shall disclose the fact that it so represented.
(d)    Debit balance of Statement of Profit and Loss and in Other Equity:
Debit balance of Statement of Profit and Loss which would arise in case of
accumulated losses, is to be shown as a negative figure under the head
`Retained Earnings'. The aggregate amount of the balance of `Other Equity',
is to be shown after adjusting negative balance of retained earnings, if any. If
the net result is negative, the negative figure is to be shown under the head
`Other Equity'.
8.2.13.2 Gain / Loss on changes in the proportion held by non-
      controlling interests
Ind AS 110, para B96 requires that an entity shall recognize directly in
`Equity' any difference between the amount by which the non -controlling
interests are adjusted and the fair value of the consideration paid or
received, and attribute it to the owners of the parent.
Ind AS 1, para 106(d)(iii) requires for each component of equity, a
reconciliation between the carrying amount at the beginning and the end of
the period, separately disclosing changes resulting from changes in
ownership interests in subsidiaries that do not result in a loss of control.
For such difference, which is the gain / loss on changes in the proportion
held by non-controlling interests, Ind AS does not specify whether such gain /
loss should be presented separately under `Capital Reserve' or under `Other
Reserves'. Ind AS Schedule III also does not specify anything in this regard.

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An entity may present such gain / loss separately as `Non -controlling Interest
Reserve' shown under `Other Reserves' by specifying the nature.
8.2.13.3 Reconciliation of items in Other Equity
Reconciliations for each component of other equity are required to be made
in the following manner (to the extent applicable):
(i)     Balance at the beginning of the reporting period
(ii)    Changes in accounting policy or prior period error
(iii)   Restated balance at the beginning of the reporting period
(iv)    Total Comprehensive Income for the year
(v)     Dividends
(vi)    Transfer to retained earnings
(vii)   Any other change (to be specified)
(viii) Balance at the end of reporting period
Apart from the above items, Ind AS Schedule III states that:
        Re-measurement of defined benefit plans; and
        Fair value changes relating to own credit risk of financial liabilities
        designated at fair value through profit or loss,
shall be recognised as a part of retained earnings with separate disclosure of
such items along with the relevant amounts in the Notes.
Ind AS 19 states that re-measurements of the net defined benefit liability
(asset) recognized in other comprehensive income shall not be reclassified to
profit or loss in a subsequent period. However, the entity may transfer those
amounts recognized in other comprehensive income within equity.
Ind AS Schedule III requires `re - measurements of defined benefit plans'
during the reporting period to be shown as a separate line item in other
comprehensive income. (Refer para 10.2)
As per Ind AS Schedule III requirement mentioned above, such re-
measurements of defined benefit plans, when accumulated at the end of
every reporting period, shall be recognized as a part of retained earnings
with separate disclosure of such item along with the relevant amounts in the
Notes to Accounts.

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Accordingly, a company shall present the accumulated re-measurements of
defined benefit plans at the end of each reporting period as a part of retained
earnings.


8.3 Regulatory Deferral Account Balances
Regulatory Deferral Account Balances are defined in Ind AS 114 as that
arising when an entity provides goods or services to customers at a price or
rate that is subject to rate regulation.
Note 5 of Other Classification Related General Instructions requires
Regulatory Deferral Account Balances to be presented in the Balance Sheet
in accordance with the relevant Ind AS.
Accordingly, as per Ind AS 114, the separate line items for the totals of all
regulatory deferral account debit balances and the totals of all regulatory
deferral account credit balances shall be distinguished from the assets and
liabilities that are presented in accordance with other Standards by the use of
sub-totals, which are drawn before the regulatory deferral account balances
are presented.
8.4 Presentation of earlier comparative period
Note 1 to Other Classification Related General Instructions states that 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
presented.
Similar requirement is also in para 40A of Ind AS 1, which requires an entity
to present a third balance sheet as at the beginning of the preceding period
in addition to the minimum comparative financial statements required if:
  a. An entity applies an accounting policy retrospectively, makes a
     retrospective restatement of items in its financial statements or
     reclassifies items in its financial statements; and
The retrospective application, retrospective restatement or the
reclassification has a material effect on the information in the balance sheet
at the beginning of the preceding period.


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9. Part II ­ Statement of Profit and Loss and Notes ­
   General Instructions for Preparation of Statement of
   Profit and Loss: Notes 1 to 10
Part II deals with disclosures relating to the Statement of Profit and Loss.
The format prescribed is the vertical form wherein disclosure for revenues
and expenses has been given in various line items. Part II contains items I to
XVIII which lists items of Revenue, Expenses, Profit / (Loss) and Other
Comprehensive Income. "General Instructions for Preparation of Statement
of Profit and Loss" govern the other disclosures and presentation aspects
related to the Statement of Profit and Loss.
As per Note 1 of "General Instructions for Preparation of Statement of Profit
and Loss", the provisions of this part also apply to the income and
expenditure account referred to in sub clause (ii) of clause (40) of section 2
of the Act in the same manner as they apply to a Statement of Profit and
Loss.
As per Note 2 of "Gener al Instructions for Preparation of Statement of Profit
and Loss", 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'.
`Profit or loss' is defined in Ind AS 1 as ` the total of income less expenses,
excluding the components of other comprehensive income .
`Other comprehensive income' is defined in Ind AS 1 as ` comprising items of
income and expense (including reclassification adjustments) that are not
recognised in profit or loss as required or permitted by other Ind ASs .
Other comprehensive income shall be presented as:
(a)    Items that will not be reclassified to profit or loss and its related
       income tax effects;
(b)    Items that will be reclassified to profit or loss and its related income
       tax effects.
`Reclassification adjustments' are defined in Ind AS 1 as amounts
reclassified to profit or loss in the current period that were recognised in


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other comprehensive income in the current or previous periods.
The Statement of Profit and Loss is a single statement of profit and loss, with
profit or loss and other comprehensive income presented in two sections, as
per Part II of Ind AS Schedule III. The sections are presented together, with
the profit or loss section presented first followed directly by the other
comprehensive income section. This is in sync with para 10A of Ind AS 1.
Ind AS 1 prohibits an entity from presenting any items of income or expense
as extraordinary items, in the statement of profit and loss or in the notes.
Accordingly, there are no line items like `Extraordinary items' and `Profit
before extraordinary items and tax' in this Schedule.
The specific format laid down for presentation of various items of Income and
Expenses in the Statement of Profit and Loss indicate that expenses should
be aggregated based on their nature, which is in sync with Ind AS 1 para 99.
Accordingly, functional classification of expenses is prohibited.
As per the Ind AS Framework for the Preparation and Presentation of
Financial Statements, income and expenses are defined as follows:
(a)    Income encompasses both revenue and gains. Revenue arises in the
       course of the ordinary activities of an entity. Gains represent other
       items that meet the definition of income and may or may not, arise in
       the course of the ordinary activities of an entity. Gains represent
       increases in economic benefits and as such are no different in nature
       from revenue.
(b)    Expenses encompasses losses as well as those expenses that arise in
       the course of the ordinary activities of the entity. Losses represent
       other items that meet the definition of expenses and may or may not,
       arise in the course of the ordinary activities of the entity. Losses
       represent decreases in economic benefits and as such they are no
       different in nature from other expenses.
Further, separate line items should be included in the profit or loss section of
the Statement of Profit and Loss to present the following items in line with
para 82 of Ind AS 1:
(a)    Revenue, presenting separately interest revenue calculated using the
       effective interest method;
(b)    Gains and losses arising from the de-recognition of financial assets
       measured at amortized cost;

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(c)    Finance costs
(d)    Impairment losses (including impairment gains or reversals of
       impairment losses) determined as per Ind AS 109, Section 5.5;
(e)    Share of profit or loss of associates and joint ventures accounted for
       using the equity method;
(f)    Any gain or loss arising from a difference between the previous
       amortized cost of the financial asset and its fair value at the date when
       the financial asset is reclassified from amortized cost to fair value
       through profit or loss;
(g)    Any cumulative gain or loss previously recognized in other
       comprehensive income that is reclassified to profit or loss, when the
       financial asset is reclassified from fair value through other
       comprehensive to fair value through profit or loss;
(h)    A single amount for the total of discontinued operations, as per Ind AS
       105.
In separately disclosing the above, consideration should be given to Note 5
and Note 9 of General Instructions for Preparation of Statement of Profit and
Loss, that requires disclosure of any item of `Other Income' or `Other
Expenses' exceeding one percent of the total income, in addition to the
consideration of `materiality'. An entity should consider these requirements
as mutually exclusive.
9.1. Revenue from operations
The aggregate of Revenue from operations needs to be disclosed on the
face of the Statement of Profit and Loss as per Schedule III.
9.1.1. Note 3 of General Instructions for the Preparation of Statement of
Profit and Loss require that revenue from operations is to be separately
disclosed on the face of the Statement of Profit and Loss, showing:
(a)    Interest Income;
(b)    Dividend Income;
(c)    Rental Income;
(d)    Fees and commission Income;
(e)    Net gain on fair value changes;


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(f)   Net gain on derecognition of financial instruments under amortised
cost category;
(g)    Sale of products (including Excise duty);
(h)    Sale of services; and
(i)    Others (to be specified)
9.1.2. For the purpose of presentation Ind AS 113 and 115 will have to be
referred to. As per the definition of Revenue in Ind AS 115, "revenue is
income arising in the course of an entity's ordinary activities" and as per
definition of Income in Ind AS 115, "increases in economic benefits during
the accounting period in the form of income or enhancements of assets or
decreases of liabilities that result in an increase in equity, other than those
relating to contributions from equity participants". Further, as per Ind AS
115, revenue includes only the gross increase in economic benefits occurring
to the entity on its own account. Amounts collected, in capacity of an agent,
on behalf of third parties such as sales taxes, goods and services taxes and
value added taxes are not economic benefits which flow to the entity and do
not result in increases in equity. Therefore, they are excluded from revenue.
Similarly, in an agency relationship, the gross increase in economic benefits
include amounts collected on behalf of the principal and which do not result
in increases in equity for the entity. The amounts collected on behalf of the
principal are not revenue.
9.1.3. Under the GST regime, the collection of GST by an entity would not be
an inflow on the entity's own account but it shall be made on behalf of the
government authorities. Accordingly, the revenue from operations should be
presented net of GST.
9.1.4. The revenue from operation shall include:
9.1.7.1 Interest Income:
As per Note 3 of General Instructions for Preparation of Profit and Loss,
Interest Income shall be classified as:
(a)    Interest on loans;
(b)    Interest income from investments;
(c)    Interest on deposits with banks;


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(d)    Other interest income
Interest income should be classified based on the financial assets measured
at fair value through OCI, at amortised cost, or classified as fair value through
profit or loss.
As per para 82 (a) of Ind AS 1, in addition to items required by other Ind ASs,
the profit or loss section of the statement of profit and loss shall include line
items that present the revenue, presenting separately interest revenue
calculated using the effective interest method.
Ind AS 107, para 20(b) requires total interest revenue calculated using the
effective interest method for financial assets that are measured at amortized
cost and that are measured at FVOCI, to be shown separately. The Effective
interest rate is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial instrument or, when appropriate, a
shorter period, to the net carrying amount of the financial asset.
Interest Income - Other Interest Income includes any other interest/ discount
income not included in sub-heads (a), (b) and (c) as mentioned above.
Dividend in the nature of interest should be classified here as per the
requirements of Indian Accounting Standards. Also, interest income on
unwinding of security deposits and interest received on delayed payments by
customers should be classified under other interest income. Interest income
on income tax refund which are in the nature of income tax should be treated
as per Ind AS 12.
Ind AS 107 para B5(e) requires a company to disclose whether interest
income on financial assets measured at FVTPL is included as a part of fair
value changes. Accordingly, a company shall disclose as its accounting
policy, whether it presents interest income on financial assets at FVTPL as
part of fair value changes or presents separately.
9.1.7.2 Dividend Income
         As per Para 5.7.1A of Ind AS 109 dividends are recognised in profit
         or loss only when:
         (a) the entity's right to receive payment of the dividend is
         established;
         (b) it is probable that the economic benefits associated with the
         dividend will flow to the entity; and


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         c) the amount of the dividend can be measured reliably.

         As per para 5.7.6 of Ind AS 109 if the entity makes an make an
         irrevocable election to present the fair value changes in other
         comprehensive income, it shall recognize in profit or loss
         dividends from that investment in accordance with para 5.7.1A
         of Ind AS 109.

        Further, Ind AS 107 para B5(e) requires a company to disclose
        whether dividend income on financial assets measured at
        FVTPL is included as a part of fair value changes. Accordingly,
        a company shall disclose as its accounting policy, whether it
        presents dividend income on financial assets at FVTPL as part
        of fair value changes or presents separately.
9.1.7.3 Rental Income
Rental Income shall comprise of rent on Investment property and operating
lease payments received if the entity is in the nature of such renting business.
9.1.7.4 Fees and commission income:
Fees that are not an integral part of effective interest rate in accordance with
Ind AS 109 should be considered under this head. `Fees and Commission
Income' shall include all remuneration on services such as commission on
collections, commission/ exchange on remittances and transfers, commission
on letters of credit, and guarantees, commission on Government business,
commission on other permitted agency business including consultancy,
distribution of third party products and other services, brokerage, fees
charged for servicing a loan, loan syndication fees etc.
9.1.7.5 Net gain/(loss) on fair value changes:
As per Note 4 of General Instructions for preparation of Profit and Loss , the
fair value gains or losses (net) on financial assets which are measured at
FVTPL should be presented under `Revenue from Operations' with t he
following line items:
(A)    Net Gain/ (Loss) on financial instruments at fair value through profit or
       loss
       (i) On trading portfolio
       - Investments

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        - Derivatives
        - Others
        (ii) On financial instruments designated at fair value through profit or
        loss
(B)     Others (to be specified)
Total Net gain/ (loss) on fair value changes (C)
Fair value changes:
      - Realised
      - Unrealised
Total Net gain/ (loss) on fair value changes (D) to tally with (C)
The fair value changes in this schedule are other than those arising on
account of accrued interest income/ expense.
The amount of net loss under this section should be disclosed in Expenses ­
Net loss on fair value changes.
Others may include those instruments other than for trading or designated at
fair value through profit or loss such as debt instruments which are classified
as fair value through profit or loss.
Further, Para B5(e ) of Ind AS 107 as mentioned above is also required to be
referred.
9.1.7.6 Others (to be specified) ­ The term "others" is not defined. This
would include Revenue ari sing from a company's operating activities, i.e.,
either its principal or ancillary revenue-generating activities, but which is not
revenue arising from the sub items mentioned above. Whether a particular
income constitutes "other operating revenue" or "other income" is to be
decided based on the facts of each case and detailed understanding of the
company's activities.
9.2. Other income
The aggregate of `Other income' is to be disclosed on face of the Statement
of Profit and Loss. As per Note 5 of General Instructions for the Preparation
of Statement of Profit and Loss `Other Income' shall be classified as:
(a)     Net gain/ (loss) on ineffective portion of hedges;


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(b)    Net gain/ (loss) on derecognition of property, plant and equipment;
(c)    Net gain or loss on foreign currency transaction and translation (other
       than considered as finance cost)(to be specified)
(d)    Others (to be specified)
As per para 6.5.11 (b) and (c) of Ind AS 109, for designated and qualifying
cash flow hedges, the effective portion of the cumulative gain or loss on
the hedging instrument is initially recognised directly in OCI within equity
(cash flow hedge reserve). The ineffective portion of the gain or loss on the
hedging instrument is recognised immediately in net gain/loss on fair value
changes in the profit and loss statement.
Net gain/ (loss) on derecognition of property, plant and equipment includes
profit/loss on sale of furniture, land and building, motor vehicles, etc. Only
the net position should be shown. If the net position is a loss, the amount
should be shown as an expense.
Any gains on account of foreign exchange fluctuations are to be disclosed
separately as per Ind AS 21. Thus, net exchange gain should be classified
under other income and the amount so included should be separately
disclosed.
Interest on Income tax refund shall form part of `others' under `Other Income'.
Rental income other than those presented under `Revenue from operations'
shall be disclosed under `others'.
Income under `others' should be disclosed net off expenses directly
attributable to such income. However, the expenses so netted off should be
separately disclosed.
Any item under the head `Other Income' which exceeds one per cent of the
total income should be presented separately.
9.3. Expenses
The aggregate of the following expenses are to be disclosed on the face
of the Statement of Profit and Loss:
       Finance Costs
       Fees and commission expense
       Net loss on fair value changes

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        Net loss on derecognition of financial instruments under amortised
        cost category
        Impairment of financial instruments
        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
        Depreciation, amortization and impairment
        Other expenses (to be specified)

9.3.1     Finance Costs
As per Note 6 of the General Instructions for the Preparation of the
Statement of Profit and Loss, disclosure of finance costs is to be bifurcated
under the following:
(a)     Interest on deposits
(b)     Interest on borrowings
(c)     Interest on debt securities
(d)     Interest on subordinated liabilities
(e)     Other interest expense
The finance costs should be classified based on financial liabilities measured
at fair value through profit or loss or on financial liabilities measured at
amortised cost. The same should be calculated as per the effective interest
method as per Ind AS 107.
Interest on deposits: Interest on deposits includes interest paid on all types
of deposits including deposits from banks and other institutions.
Interest on deposits also includes unwinding of the discount that results in an
increase in financial liabilities such as security deposits for assets taken on
lease.
Interest on borrowings: Interest on borrowings includes discount/interest on
all borrowings and refinance from banks and other institutions and agencies.

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Interest in respect of lease liabilities recognised in accordance with Ind AS 116,
Leases
Interest on debt securities: Interest on debt securities includes interest on
bonds/ debentures and liability component of financial instruments.
Dividend on preferences shares, whether redeemable or convertible, is of the
nature of `Interest expense', only where there is no discretion of the issuer
over the payment of such dividends. In such case, the portion of dividend as
determined by applying the effective interest method should be presented as
`Other Interest expense' under `Finance cost'. Accordingly, the corresponding
Dividend Distribution Tax on such portion of non-discretionary dividends
should also be presented in the Statement of Profit and Loss under `Interest
expense'. On the other hand, where there is a discretion of issuer over the
payments of dividend on preference shares, whether redeemable or
convertible, the entire dividend is in the nature of distribution of profit and
accordingly, shall be presented in Statement of Changes in Equity.
Accordingly, the corresponding Dividend Distribution Tax should also be
presented in Statement of Changes in Equity.
Interest on subordinated liabilities: This includes interest expense on all
subordinated liabilities.
Other interest expense: Other interest expense comprises of the following:
1.      Increases in the carrying amount of provisions / decommissioning
        liabilities where such increase reflects the passage of time;
2.      Net interest on net defined benefit liability which reflects the change in
        net defined benefit liability that arises from the passage of time.

9.3.2    Ind AS 21 and Ind AS 23 deal with foreign exchange differences
         arising on foreign currency transactions included in the financial
         statements of an entity. The same shall be disclosed under `Other
         interest expense' finance cost. All exchange differences wit hin the
         purview of Ind AS 21 are recognized as exchange differences and
         presented accordingly. However, all exchange differences arising
         from foreign currency borrowings are within the purview of Ind AS 23
         and are regarded as a cost of borrowing irrespective of whether they
         are capitalized or not as a part of the cost of the asset. In
         accordance with Ind AS 23 ­ `Borrowing Costs' that are directly
         attributable to the acquisition, construction or production of a

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        qualifying asset form part of the cost of that asset. For the purpose
        of capitalization, borrowing costs also include exchange difference
        regarded as an adjustment to borrowing costs. Exchange difference
        eligible for capitalization are determined in accordance with para
        6(e) and 6A of Ind AS 23. Accordingly, in case a company has
        utilized its foreign currency borrowings for the purpose of acquisition
        or construction of a qualifying asset, it would capitalize certain
        portion of foreign exchange difference in accordance with the para
        6(e) and 6A of Ind AS 23. All other borrowing costs are recognized
        as an expense. For presenting foreign exchange differences arising
        on foreign currency borrowings in statement of profit and loss, there
        is no specific requirement to apply the limit prescribed in paragraphs
        6(e) and 6A of Ind AS 23 since the nature of the exchange
        difference on foreign currency borrowing is effectively a cost of
        borrowing. Accordingly, the entire foreign exchange differences
        relating to foreign currency borrowings to the extent not capitalized
        in accordance with Ind AS 23 can be presented under the head
        `finance costs'. Fees and commission expense
Fee and commission expenses includes all expenses on services such as
commission on documents sent on collection, commission/ exchange on
remittances and transfers, commission on letters of credit, and guarantees,
commission on other permitted agency business including consultancy and
other services, brokerage, etc. If any of these elements are required to be
included under effective interest under Indian Accounting Standards, it
should not be considered under this head.

9.3.3 Net loss on fair value changes
(Refer para 9.1.7.5. for the line items to be presented as a part of Net gains
(losses) on fair value changes)

9.3.4 Impairment of financial instruments
As per Note 8 of the General Instructions for the Preparation of the
Statement of Profit and Loss, disclosure of Impairment of financial
instruments is to be bifurcated under the following:
(a)    Loans
(b)    Investments
(c)    Others (to be specified)

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The same is to be classified based on financial instruments measured at fair
value through OCI, and on financial instruments measured at amortised cost.
Ind AS 109 requires that its impairment provisions are also applied to loan
commitments and trade receivables. Thus the same would be included under
the sub- head `Others' as mentioned above.
Amount of loss written-off which is greater than the accumulated loss
allowance, the difference will be in the nature of impairment loss and should
thus be presented under this line item. In case of subsequent recoveries
which is higher than previously written off asset, the nature of recoveries is
similar to reversals of impairment and should thus be presented in the
impairment line in profit or loss as it would provide useful and relevant
information to the users of the financial statements.

9.3.5    Employee benefits expense [Note 7]
This requires disclosure of the following details:
As per para 7 of Ind AS 19 states the following: An employee may provide
services to an entity on a full-time, part-time, permanent, casual or temporary
basis. For the purpose of this Standard, employees include directors and
other management personnel.

9.3.5.1 Salaries and wages
The aggregate amounts paid/payable by the company for payment of
salaries and wages are to be disclosed here. Expenses on account of bonus,
leave encashment, compensation and other similar payments also need to
be disclosed here. Where a separate fund is maintained for Gratuity payouts,
contribution to Gratuity fund should be disclosed under the sub-head
Contribution to provident and other funds.
9.3.5.2 Contribution to provident and other funds
The aggregate amounts paid / payable by a company on account of
contributions to provident fund and other funds like Superannuation fund,
ESI, Labour Welfare Fund, etc., are to be disclosed here. This is true for
defined contribution plans since the expense recognized for a defined benefit
plan is not necessarily the amount of the contribution due for the period.
Contributions for such funds for contract labour may also be separately
disclosed here. However, penalties and other similar amounts paid to the

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statutory authorities are not strictly in the nature of `contribution' and should
not be disclosed here.
9.3.5.3 Share based payment to employees
The amount of expense under this head should be determined in accordance
with Ind AS 102 ­ Share-based Payments and/or the SEBI (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999,
as applicable. Companies should also consider all disclosures required by
the Ind AS 102.
9.3.5.4 Staff welfare expense
The total expenditure on staff welfare is to be disclosed herein.

9.3.6 Depreciation, amortization and impairment
A company has to disclose depreciation provided on Property, Plant and
Equipment, Investment Property and amortization of intangible assets and
any impairment under this head.

9.3.7     Other Expenses
All other expenses not classified under other heads will be classified here. As
per Note 9 of General instructions for preparation of Profit and Loss, Other
expenses shall be bifurcated into:
(a)     Rent, taxes and energy costs;
(b)     Repairs and maintenance;
(c)     Communication costs;
(d)     Printing and stationery;
(e)     Advertisement and publicity;
(f)     Director's fees, allowances, and expenses;
(g)     Auditor's fees and expenses;
(h)     Legal and Professional charges;
(i)     Insurance;
(j)     Other expenditure.
Rent, taxes and energy costs: Rent will include expenses such as rent on low


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value or short term leases. Taxes shall include municipal and other taxes
(excluding income tax) and energy cost shall include electricity and other
similar charges and levies.
Repairs and maintenance: This includes repairs to company's property, plant
and equipment and their maintenance charges, etc.
Communication costs: This includes postal charges (like stamps),
telephones, courier costs, facsimile, e-mail, internet, SWIFT charges etc.
Printing and stationery: This includes cost of books, forms and stationery
used by the company and other printing charges which are not incurred by
way of publicity expenditure.
Advertisement and publicity: This includes expenditure incurred by the
company for advertisement and publicity purposes including printing charges
on publicity material.
Director's fees, allowances and expenses: This includes sitting fees and all
other items of expenditure incurred on behalf of Directors including all
allowances and expenses on behalf of directors. The daily allowance, hotel
charges, conveyance charges, etc. which though in the nature of
reimbursement of expenses incurred may be included under this head.
Auditor's fees and expenses: This includes the fees paid to the statutory
auditors and branch auditors for professional services rendered and all
expenses for performing their duties, even though they may be in the nature
of reimbursement of expenses.
Legal and Professional charges: All legal expenses and reimbursement of
expenses incurred in connection with legal services are to be included here.
Professional charges could include fee paid for consultancy, valuations, etc.
Insurance: This includes insurance charges on company's property, plant
and equipment, etc.
Other expenditure: All expenses other than those not included in any of the
other heads like license fees, donations, subscriptions to papers, periodicals,
entertainment expenses, travel expenses, etc. may be included under this
head.
Any item under the head `Other expenditure' which exceeds one per cent of
the total income shall be presented separately.


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9.4. Exceptional items
The term `Exceptional items' is neither defined in Ind AS Schedule III nor in
Ind AS. However, Ind AS 1 has reference to such items in paras 85, 86, 97
and 98.
Para 85 states that additional line items, headings and subtotals in the
statement of profit and loss shall be presented, when such presentation is
relevant to an understanding of the entity's financial performance.
Further, para 86 states that disclosing the components of financial
performance assists users in understanding the financial performance
achieved and in making projections of future financial performance. An entity
considers factors including materiality and the nature and function of the
items of income and expense.
Para 97 states that when items of income or expense are material, an entity
shall disclose their nature and amount separately. Para 98 gives
circumstances that would give rise to the separate disclosure of items of
income and expense and includes:
(a)    Write-downs of inventories to net realisable value or of property, plant
       and equipment to recoverable amount, as well as reversals of such
       write-downs;
(b)    restructurings of the activities of an entity and reversals of any
       provisions for the costs of restructuring;
(c)    disposals of items of property, plant and equipment;
(d)    disposals of investments;
(e)    discontinued operations;
(f)    litigation settlements; and
(g)    other reversals of provisions.
In case the company has more than one such item of income / expense of
the above nature which is exceptional, then such items should be disclosed
on the face of the Statement of Profit and Loss. Details of all the individual
items should be disclosed in the Notes.
9.5. Tax expense
This is to be disclosed on the face of the Statement to Profit and Loss and
bifurcated into:

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(1)    Current tax and
(2)    Deferred tax
9.5.1 Current tax
The term `Current tax' has been defined under Ind AS - 12 "Income Taxes" as
the amount of income taxes payable (recoverable) in respect of the taxable
profit (tax loss) for a period . Hence, details of all taxes on income payable
under the applicable taxation laws should be disclosed here.
Any interest on shortfall in payment of advance income-tax is in the nature of
finance cost and hence should not be clubbed with the Current tax. The
same should be classified as interest expense under finance costs. However,
such amount should be separately disclosed.
Any penalties levied under Income tax laws should not be classified as
Current tax. Penalties which are compensatory in nature should be treated
as interest and disclosed in the manner explained above. Other tax penalties
should be classified under `Other Expenses'.
Excess/Short provision of tax relating to earlier years should be separately
disclosed.
9.5.2 Deferred tax
Any charge/credit for deferred taxes needs to be disclosed separately on the
face of the Statement of Profit and Loss.
Ind AS 12 defines `deferred tax liabilities', `deferred tax assets', `temporary
differences' as:
`Deferred tax liabilities' are the amounts of income taxes payable in future
periods in respect of taxable temporary differences;
`Deferred tax assets' are the amounts of income taxes recoverable in future
periods in respect of:
(a)    deductible temporary differences;
(b)    the carry forward of unused tax losses; and
(c)    the carry forward of unused tax credits.
`Temporary differences' are differences between the carrying amount of an
asset or liability in the balance sheet and its tax base
Ind AS 12 has the concept of temporary differences as against AS 22 which

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had a concept of timing differences. Moreover, deferred tax asset is defined
in Ind AS 12 to include the carry forward of unused tax credits. MAT Credits
are in the form of unused tax credits that are carried forward by the company
for a specified period of time. Accordingly, MAT Credit Entitlement should be
grouped with Deferred Tax Asset (net) in the Balance Sheet of an entity and
a separate note should be provided specifying the nature and amount of MAT
Credit included as a part of deferred tax. However, the company should
review at each balance sheet date the reasonable certainty to recover
deferred tax asset including MAT Credit Entitlement.
Correspondingly, MAT Credit Entitlement should be grouped with deferred
tax in the Statement of Profit and Loss and a separate note should be
provided specifying the amount of MAT Credit.
9.6. Profit / (loss) from discontinued operations
The term 'discontinued operations' is defined in Ind AS 105 "Non-current
Assets Held for Sale and Discontinued Operations" as a component of an
entity that either has been disposed of or is classified as held for sale and:
(a)    represents a separate major line of business or geographical area of
       operations,
(b)    is part of a single co-ordinated plan to dispose of a separate major line
       of business or geographical area of operations; or
(c)    is a subsidiary acquired exclusively with a view to resale.
Profit or loss from Discontinued Operations needs to be separately disclosed
on the face of Statement of Profit and Loss. This disclosure is in line with the
disclosure requirement of Ind AS 105 para 33(a) which requires a single
amount in the statement of profit and loss comprising the total of: (i) post-tax
profit or loss of discontinued operations; and (ii) post-tax gain or loss
recognized on the measurement to fair value less costs to sell or on the
disposal of the assets or disposal group(s) constituting the discontinued
operation.
Further, Ind AS-105 para 33(b) requires an entity to present an analysis of a
single amount either in Notes or on the face of the Statement of Profit and
Loss:
(i)    the revenue, expenses and pre-tax profit or loss of discontinued
       operations;

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(ii)    the gain or loss recognised on the measurement to fair value less costs to
        sell or on the disposal of the assets or disposal group(s) constituting the
        discontinued operation.
(iii)   the related income tax expense as required by paragraph 81(h) of Ind AS
        12.
If the above analysis is presented in the Statement of Profit and Loss, then it
shall be presented in a section identified as relating to discontinued
operations, i.e. separately from continuing operations.
9.7. Tax expense of discontinued operations
In case there are any taxes payable / tax credits available on profits / losses
of discontinued operations, the same needs to be disclosed as a separate
line item on the Statement of Profit and Loss, when presenting a separate
analysis as per para 33(b) of Ind AS 105, as stated above in para 9.6.
9.8. Earnings per equity share
Computation of Basic and Diluted Earnings per Share should be made in
accordance with Ind AS 33 Earnings per Share . It is pertinent to note that the
nominal value of equity shares should be disclosed along with the Earnings
per Share figures as required by Ind AS 33.


10.       Other Comprehensive Income
10.1 `Other comprehensive income' (OCI) is defined in Ind AS 1 as
`comprising items of income and expense (including reclassification
adjustments) that are not recognised in profit or loss as required or permitted
by other Ind ASs.
10.2 Note 10 of General Instructions for Preparation of Statement of Profit
and Loss state that `Other Comprehensive Income' shall be classified into:
(a)     Items that will not be reclassified to profit or loss and its related
        income tax effects:
        (1)   Changes in revaluation surplus;
        (2)   Re-measurements of the defined benefit plans;
        (3)   Equity Instruments through other comprehensive income;
        (4)   Fair value changes relating to own credit risk of financial

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              liabilities designated at fair value through profit or loss;
       (5)    Share of Other Comprehensive Income in Associates and Joint
              Ventures, to the extent not to be classified into profit or loss;
              and
       (6)    Others (specify nature);
(b)    Items that will be reclassified to profit or loss and its related income
       tax effects:
       (1)    Exchange differences in translating the financial statements of a
              foreign operation;
       (2)    Debt Instruments through other comprehensive income;
       (3)    The effective portion of gain and loss on hedging instruments in
              a cash flow hedge;
       (4)    Share of Other Comprehensive Income in Associates and Joint
              Ventures, to the extent to be classified into profit or loss; and
       (5)    Others (specify nature).
10.3 As a part of the definition of OCI given in Ind AS 1, the components of
OCI, which are in addition to above, are stated to include:
Items that will not be reclassified to profit or loss and its related income tax
effects:
(a)    Gains and losses on hedging instruments that hedge investments in
       equity instruments measured through Other Comprehensive Income;
Items that will be reclassified to profit or loss and its related income tax
effects:
(b)    Changes in time value of options when separating the intrinsic value
       and time value of an option contract and designating only intrinsic
       value changes as the hedging instrument;
(c)    Changes in the value of the forward elements of forward contracts
       when separating the forward element and spot element of a forward
       contract and designating only spot element changes as hedging
       instrument;
(d)    Changes in the value of the foreign currency basis spread of a
       financial instrument when excluding it from the designation of that

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        financial instrument as the hedging instrument.
10.4 Schedule III requires an entity to present items of OCI in aggregate
and the related tax effects to be shown separately.
However Ind AS 1, para 91 also gives a choice of presentation for items net-
off tax effects.
10.5 Further, an entity shall present for each component of equity, an
analysis of other comprehensive income by item as required by Ind AS 1,
para 106A (including, reclassification adjustments as required by Ind AS 1,
para 92). Such presentation may be made either in the Statement of
Changes in Equity or in the Notes to Accounts.
10.6 Ind AS Schedule III does not highlight about the presentation of
bargain purchase gains arising in a business combination. Para 34 of Ind AS
103, requires an acquirer to recognize a bargain purchase gain in other
comprehensive income on the acquisition date, after meeting the
requirements of para 36 of Ind AS 103. Such gain shall be attributed to the
acquirer (i.e. parent and not non-controlling interest) and may be presented
under `Other Items of other comprehensive income' in statement of changes
in equity. However, if para 36 requirements are not met, Then, the acquirer shall
recognize and disclose such gain directly in capital reserve as per para 36A of
Ind AS 103.


11. Additional information to be disclosed by way of
    Notes to Statement of Profit and Loss
Besides the above disclosures, Note 11 of the General instructions for
Preparation of Statement of Profit and Loss also require disclosure by way of
notes, additional information regarding aggregate expenditure and income on
the following items:
11.11     Depreciation, amortization and impairment [Clause (i) of Note
          11]
A company has to disclose depreciation provided on Property, Plant and
Equipment, Investment Property and amortization of intangible assets and
any impairment under this head.
11.12     Payments to the auditor [Clause (ii) of Note 11]


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Payments covered here should be for payments made to the firm of
auditor(s). Expenses incurred towards such auditor's remuneration should be
disclosed under each of the following sub-heads as follows:
(a)     Auditor,
(b)     For taxation matters,
(c)     For company law matters,
(d)     For other services,
(e)     For reimbursement of expenses;
11.13     In case of NBFCs covered under section 135, amount of
          expenditure incurred on corporate social responsibility
          activities [Clause (iii) of Note 11]
This new requirement introduced by the Act is that the companies which are
covered under Section 135 are required to disclose the amount of
expenditure incurred on corporate social responsibility activities. The
Guidance Note on Accounting for Expenditure on Corporate Social
Responsibility Activities issued may be referred to for disclosure
requirements, which are essentially as under:
(a)     From the perspective of better financial reporting and in line with the
        requirements of Schedule III in this regard, it is recommended that all
        expenditure on CSR activities, that qualify to be recognised as
        expense should be recognised as a separate line item as `CSR
        expenditure' in the statement of profit and loss. Further, the relevant
        note should disclose the break-up of various heads of expenses
        included in the line item `CSR expenditure'.
(b)     The notes to accounts relating to CSR expenditure should also contain
        the following:
        (1)   Gross amount required to be spent by the company during the
              year.
        (2)   Amount spent during the year on:
              (i)    Construction/acquisition of any asset
              (ii)   On purposes other than (i) above
        The above disclosure, to the extent relevant, may also be made in the
        notes to the cash flow statement, where applicable.

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(c)    Details of related party transactions, e.g., contribution to a trust
       controlled by the company in relation to CSR expenditure as per Ind
       AS 24, Related Party Disclosures.
(d)    Where a provision is made in accordance with paragraph above
       the same should be presented as per the requirements of Schedule III
       to the Act. Further, movements in the provision during the year should
       be shown separately.


12. Part III ­ General Instructions for Preparation of
   Consolidated Financial Statements
The Act defines a `subsidiary company' and an `associate company' which is
different from the definition of a `subsidiary', an `associate' and a `joint
venture' under Ind AS. An amendment to Companies (Accounts) Rules, 2014
on 4 September 2015, newly inserted Rule 4A which state that "financial
statements shall be in the form specified in Schedule III to the Act and
comply with Accounting Standards or Indian Accounting Standards as
applicable, provided that the items contained in financial statements shall be
prepared in accordance with the definitions and other requirements specified
in the Accounting Standards or the Indian Accounting Standards, as the case
may be."
The Act mandates that the companies which have one or more subsidiaries
or associates (which as per the Act includes joint ventures) are required to
prepare Consolidated Financial Statements (CFS), except under certain
circumstances exempted under the Act and Rules.
Accordingly, Ind AS definitions of subsidiary, associate and joint venture
shall be considered for assessment of control, joint control and significant
influence even though the requirement of preparation of CFS will be
governed by the Act.
The companies are expected to prepare the Standalone Financial
Statements in addition to Consolidated Financial Statements.
Part III of Ind AS Schedule III provides for General Instructions for
Preparation of Consolidated Financial Statements. This is a new addition
brought in under the Act.
12.1 General requirements

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Where the 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 preparation of the Standalone Financial Statements. This
means that all the reporting requirements of the Schedule III need to be
aggregated and reported for the group as a whole in the Consolidated
Financial Statements. However, where the consolidated financial statements
contains elements pertaining to NBFCs and other than NBFCs, mixed basis
of presentation may be followed for consolidated financial statements where
both kinds of operations are significant.
In addition, the Consolidated Financial Statements shall disclose the
information as per the requirements specified in the applicable Ind AS
notified under the Companies Ind AS Rules, including the following, namely:
(1)    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'. This requirement is
       in line with para 81B of Ind AS 1.
(2)    `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'.
(3)    Investments accounted for using the equity method.
(4)    Ind AS 110 para B96 deals with Changes in proportion held by non-
       controlling interest. When the proportion of the equity held by non-
       controlling interests changes, an entity shall adjust the carrying
       amounts of the controlling and non-controlling interests to reflect the


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       changes in their relative interests in the subsidiary. The entity shall
       recognise directly in equity any difference between the amount by
       which the non-controlling interests are adjusted and the fair value of
       the consideration paid or received, and attribute it to the owners of the
       parent. An entity may present such gain / loss separately as `Non-
       controlling Interest Reserve' shown under `Other Reserves' by
       specifying the nature.
All of these would also indicate the need to obtain such information for all the
subsidiaries / associates for preparing the Consolidated Financial
Statements, including where such subsidiaries / associates are not audited
under the Act.
However, due note has to be taken of the fact that the Schedule III itself
states that the provisions of the schedule are to be followed mutatis mutandis
for a Consolidated Financial Statements. MCA has also clarified vide General
Circular No. 39 / 2014 dated 14 th October 2014 that Schedule III to the Act
[Refer Annexure E (Pg 175) ] read with the applicable Accounting Standards
does not envisage that a company while preparing its CFS merely repeats
the disclosures made by it under stand-alone accounts being consolidated.
Accordingly, the company would need to give all disclosures relevant for CFS
only.
In this context, the requirements of Ind AS Schedule III shall apply to a CFS,
subject to the following exemptions / modifications based on the relevance to
the CFS:
 Ind AS Schedule III Requirements           Applicability to CFS (if left blank,
                                            is applicable, as it is)
 Share capital ­ authorized, issued,        It is adequate to present paid up
 subscribed and paid up                     capital and any calls in arrears
                                            Note: It has no relevance in the CFS
                                            context.
 Source from which bonus shares             Not relevant at CFS level and
 are issued, e.g., capitalisation of        hence, may be dispensed with.
 profits or Reserves or from
 Securities Premium Account.
 Disclosure of all unutilized monies        Not relevant at CFS level and

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 out of the issue indicating the form       hence, may be dispensed with.
 in which such unutilized funds have
 been invested.
 (a) Period      and     amount     of      On all these items, disclosure can
     continuing default as on the           be limited to those which are
     Balance       Sheet    date    in      material to the CFS; materiality
     repayment of borrowings and            could be considered at 10% of the
     interest, shall be specified           respective balance sheet item
     separately in each case.
 (b) 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
     due by firms or private
     companies respectively in
     which any director is a partner
     or a director or a member
     should be separately stated
 (c) 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
 (d) Where in respect of an issue of
     securities made for a specific
     purpose, the whole or part of
     the 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


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      have been used or invested.
 Share application money pending            Separate disclosure should be given
 allotment shall be classified into         for such monies due outside the
 equity or liability in accordance with     group in respect of entities which are
 relevant Ind AS. Share application         consolidated.
 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
 financial liabilities'.
 Additional Information for                 Not relevant at CFS level and
 disclosure:                                hence, may be dispensed with.
 (a) 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;
 (b) In case of Companies covered
     under section 135, amount of
     expenditure       incurred    on
     corporate social responsibility
     activities
 (c) Disclosures required as per the
     MSMED Act, 2006

12.2 Indian Accounting Standards
The Consolidated Financial Statements shall also disclose the information as
required under the various Indian Accounting Standards applicable.
12.3 Additional information on the entities included in the
     Consolidated Financial Statements
Ind AS Schedule III also requires specific disclosure of additional information
on the entities which are included in the Consolidated Financial Statements
in the following format:
   Name of      Net Assets i.e.,   Share in profit   Share in other     Share in total

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  the entity         total assets        or loss   comprehensiv        comprehensiv
    in the           minus total                      e income           e income
    Group             liabilities
                  As % of Amount As % of Amount As % of Amount        As % of Amount
                  Consoli         Consoli        consolid               total
                   dated           dated           ated               compre
                    net           profit or       other               hensive
                  assets            loss         compre               income
                                                 hensive
                                                 income
Parent
Subsidiaries
Indian
1
2
3
...
.....
Foreign
1
2
3
...
.....
Non-
controlling
interest in all
subsidiaries
Associates
(Investment
as per equity
method)
Indian
1
2
3
...


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...
Foreign
1
2
3
...
.....
Joint
Ventures
(Investment
as per equity
method)
Indian
1
2
3
...
.....
Foreign
1
2
3
...
.....
TOTAL
Certain joint arrangements which are of the nature of joint operations will be
consolidated to the extent of the share of joint operator based on the
principles laid down in Ind AS 111. Even though the above table does not
specify a disclosure about joint operations' net assets, profit or loss, other
comprehensive income and total comprehensive income, it should be
disclosed in similar manner as disclosed for joint ventures. This requirement
would apply only if a joint operation is conducted through a separate legal
entity.
Moreover, as regards consolidation adjustments (including elimination of
intra-group transactions), it should be ensured that these are either disclosed


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as a single line item separately or adjusted in the information (e.g., net
assets) disclosed for the parent and its each component.
These are necessary in order to match the respective amounts reported in
Consolidated Financial Statements with the respective Total amounts in the
above table.
12.4 Entities not consolidated
Entities which are not covered in the Consolidated Financial Statements,
whether subsidiaries, associates or joint ventures are to be listed in the
Consolidated Financial Statements along with the reasons for not
consolidating such entities. Additional disclosure requirements as set out in
Ind AS 112 should also be complied with in this regard.
12.5 Definition of terms relevant for consolidation
The terms "Control", "Subsidiary" and "Associate" are defined very differently
in the Act as compared to definition in Ind AS. Rule 6 of the Companies
(Accounts) Rules, 2015 however states that Consolidated Financial
Statements shall be prepared in accordance with the provisions of Ind AS
Schedule III of the Act and the applicable Ind AS. Further, Rule 4A of the
Companies (Accounts) Rules, 2015 provides that the items contained in the
financial statements shall be prepared in accordance with the definitions and
other requirements specified in Ind AS.




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                                                                                                             Annexure A
________________________________________________________________________________________

                                                         "Division III
   Financial Statements for a Non-Banking Financial Company (NBFC) whose financial statements are drawn up
   in compliance of the Companies (Indian Accounting Standards) Rules,2015.

GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A NON-
  BANKING FINANCIAL COMPANY (NBFC) THAT IS REQUIRED TO COMPLY WITH
  INDIAN ACCOUNTING STANDARDS (Ind AS)
        1. Every Non-Banking Financial company as defined in the Companies (Indian Accounting Standards)
           (Amendment) Rules, 2016 to which Indian Accounting Standards apply, shall prepare its financial statements
           in accordance with this Schedule or with such modification as may be required under certain circumstances.

        2. Where compliance with the requirements of relevant Act, Regulations, Guidelines or Circulars issued by the
           relevant regulator from time to time including Indian Accounting Standards (Ind AS) (except the option of
           presenting assets and liabilities in accordance with current, non-current classification as provided by relevant
           Ind AS) as applicable to the NBFCs require any change in treatment or disclosure including addition,
           amendment, substitution or deletion in the head or sub-head or any changes inter se, in the financial
           statements or statements forming part thereof , the same shall be made and the requirements under 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 or statements
           unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as
           required by the Companies Act, 2013 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 recognised 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 details that may not assist users of Financial Statements and not providing important
             information as a result of too much aggregation.

        5. Depending upon the total income of the NBFC, the figures appearing in the Financial Statements shall be
           rounded off as below:



                               Total Income                                                  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 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 or nature of the item or a combination of both, to be judged in the particular circumstances.

   8. For the purpose of this Schedule, the terms used herein shall have the same meanings assigned to them in Indian
      Accounting Standards.

   9. Where any Act, Regulation, Guidelines or Circulars issued by the relevant regulators from time to time requires
      specific disclosures to be made in the standalone financial statements of an NBFC, the said disclosures shall be
      made in addition to those required under this Schedule.

 10.     The NBFCs preparing financial statements as per this Schedule may change the order of presentation of line
         items on the face of financial statements or order of line items within the schedules in order of liquidity, if
         appropriate, considering the operations performed by the NBFC.


   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 NBFC's financial position or performance or
   to cater to categories of NBFCs as prescribed by the relevant regulator or sector-specific disclosure requirements or
   when required for compliance with the amendments to the relevant statutes or under the Indian Accounting
   Standards.


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                                                                             PART I ­BALANCE SHEET
       Name of the Non-Banking Financial Company.........................

       Balance Sheet as at ...........................

                                                                                                                                                (Rupees in............)
                          Particulars                                                            Note       Figures as at the          Figures as at the end of
                                                                                                 No.        end     of current         the previous reporting
                                                                                                            reporting period           period
                                                           1                                                           2                            3
                             ASSETS

              (1)         Financial Assets

              (a)         Cash and cash equivalents
              (b)         Bank Balance other than (a) above
              (c)         Derivative financial instruments
              (d)         Receivables
                              (I) Trade Receivables
                              (II) Other Receivables
              (e)         Loans
              (f)         Investments
              (g)         Other Financial assets (to be specified)

              (2)         Non-financial Assets

              (a)         Inventories
              (b)         Current tax assets (Net)
              (c)         Deferred tax Assets (Net)
              (d)         Investment Property
              (e)         Biological assets other than bearer plants
              (f)         Property, Plant and Equipment
              (g)         Capital work-in-progress
              (h)         Intangible assets under development

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              (i)        Goodwill
              (j)        Other Intangible assets
              (k)        Other non-financial assets (to be specified)

                                                                                  Total Assets
                         LIABILITIES AND EQUITY

                         LIABILITIES

              (1)        Financial Liabilities

              (a)        Derivative financial instruments
              (b)        Payables

                         (I)Trade Payables


                              (i) total outstanding dues of micro enterprises and small
                                    enterprises

                              (ii) total outstanding dues of creditors other than micro
                                     enterprises and small enterprises
                         (II) Other Payables
                              (i) total outstanding dues of micro enterprises and small
                                    Enterprises

                             (ii) total outstanding dues of creditors other than micro
                                    enterprises and small enterprises
              (c)        Debt Securities
              (d)        Borrowings (Other than Debt Securities)
              (e)        Deposits
              (f)        Subordinated Liabilities
              (g)        Other financial liabilities(to be specified)


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              (2)         Non-Financial Liabilities
              (a)         Current tax liabilities (Net)
              (b)         Provisions
              (c)         Deferred tax liabilities (Net)
              (d)         Other non-financial liabilities(to be specified)


              (3)         EQUITY
              (a)         Equity Share capital
              (b)         Other Equity
                                                               Total Liabilities and Equity
See accompanying notes to the financial statements


                                                                        STATEMENT OF CHANGES IN EQUITY
                Name of the Non-Banking Financial 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                                             the year


                                                                                xxx
                                  Xxx                                                                                           xxx




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B. Other Equity


                                                        Reserves and Surplus

                    Share        Equity   Statutory Capital Securities Other Retained                 Debt      Equity      Effective    Revalu Exchange         Other      Money Total
                  application component Reserve Reserve Premium Reserves Earnings                 instrument Instrumen     portion of     ation differences on items of     receive
                  money             of        s                        (specify                         s    ts through    Cash Flow     Surplu translating the Other          d
                   pending compound                                    nature)                      through Other           Hedges          s       financial  Compreh      against
                  allotment     financial                                                            Other Compreh                              statements of a ensive       share
                              instrument                                                          Comprehe ensive                                    foreign    Income      warrant
                                    s                                                                nsive     Income                              operation    (specify       s
                                                                                                    Income                                                      nature)
  Balance at
  the
  beginning
  of the
  reporting
  period

   Changes
   in
   accounting
   policy/prior
   period
   errors




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   Restate
   d
   balance
   at the
   beginni
   ng of
   the
   reportin
   g period


   Total
   Comprehen
   sive
   Income for
   the year


   Dividends

   Transfer
   to retained
   earnings


   Any other
   change (to
   be
   specified)

   Balance at
   the end of
   the
   reporting
   period



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       Note:

            (i) Remeasurement of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss
                 shall be recognised as a part of retained earnings with separate disclosure of such items alongwith the relevant amounts in theNotes.
            (ii) A description of the purpose of each reserve within equity shall be disclosed in the Notes.
Notes
                    GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET


       A Non-Banking Financial company shall disclose the following in the notes to accounts:

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

            (i)     Cash on hand
            (ii)    Balances with Banks (of the nature of cash and cash equivalents);
            (iii)   Cheques, drafts on hand; and
            (iv)    Others (specify nature).

                Cash and Bank balances: The following disclosures with regard to cash and bank balances shall be made:


            (i) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated.
            (ii) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately.
            (iii) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated.

       (B) Derivative financial Instruments

                    1 Explain use of derivatives
                    2 Cross-reference to Financial Risks section for management of risks arising from derivatives

                                                            (Current Year)                                                      (Previous Year)
       Part I                     Notional amounts         Fair Value ­         Fair Value -            Notional                Fair Value - Assets      Fair Value -
                                                           Assets               Liabilities             amounts                                          Liabilities
       (i)Currency
       derivatives:

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       -Spot and forwards
       -Currency Futures
       -Currency swaps
       -Options
       purchased
       -Options sold
       (written)
       -Others
       Subtotal (i)


       (ii)Interest rate
       Derivatives

       -Forward Rate
       Agreements and
       Interest Rate
       Swaps
       -Options
       Purchased
       -Options sold
       (written)
       -Futures
       -Others
       Subtotal(ii)

       (iii)Credit
       derivatives
       (iv)Equity linked
       Derivatives
       (v)Other
       derivatives
       (Please specify)

       Total Derivative



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       Financial
       Instruments
       (i)+(ii)+(iii)+(iv)+ (v)



       Part II

       Included in above
       (Part I) are
       derivatives held for
       hedging and risk
       management
       purposes as
       follows:

       (i)Fair value
       hedging:

       - Currency
       Derivatives
       - Interest rate
       derivatives
       - Credit
       derivatives
       - Equity linked
       Derivatives
       - Others
       Subtotal (i)

       (ii)Cash flow
       hedging:

       - Currency
       derivatives
       - Interest rate
       derivatives


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       - Credit
       derivatives
       - Equity linked
       derivatives
       - Others
       Subtotal (ii)

       (iii)Net
       investment hedging:


       (iv)Undesignated
       Derivatives

       Total Derivative
       Financial
       Instruments (i)+
       (ii)+(iii)+(iv)


       With respect to hedges and hedge accounting, NBFCs may provide a description in accordance with the requirements of Indian Accounting Standards, of how
       derivatives are used for hedging, explain types of hedges recognized for accounting purposes and their usage/application by the entity.

(C) Receivables:

       (i) Receivables shall be sub-classified as:
                         (a) Receivables considered good - Secured;
                         (b) Receivables considered good - Unsecured;
                         (c) Receivables which have significant increase in Credit Risk; and
                         (d) Receivables - credit impaired

       (ii) Allowance for impairment loss allowance shall be disclosed under the relevant heads separately.

       (iii) Debts due by directors or other officers of the NBFC or any of them either severally or jointly with any other person or debts due by firms including limited liability
       partnerships (LLPs), private companies respectively in which any director is a partner or a director or a member should be separately stated.

(D) Loans
                                                        (Current Year)                                                                       (Previous Year)
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                        Amorti            At Fair Value                 Subtotal           Total           Amorti             At Fair Value                      Subtotal          Total
                        sed       Through Through          Designat                                        sed        Through Through       Designate
                        cost      Other      profit or     ed      at                                      cost       Other    profit or d at fair
                                  Compre     loss          fair value                                                 Compreh loss          value
                                  hensive                  through                                                    ensive                through
                                  Income                   profit                                                     Income                profit or
                                                           or loss                                                                          loss

                        (1)       (2)         (3)          (4)          (5=2+3+4)          (6=1+5)         (7)        (8)          (9)            (10)           (11=8+9+10)       (12=(7)
                                                                                                                                                                                   + (11)



       Loans
       (A)
       (i)      Bills
       Purchased
       and      Bills
       Discounted
       (ii) Loans
       repayable on
       Demand
       (iii) Term
       Loans
       (iv)
       Leasing
       (v)
       Factoring
       (vi) Others
       (to         be
       specified)
       Total (A) ­
       Gross
       Less:
       Impairment
       loss
       allowance


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       Total     (A)
       - Net

       (B)
       (i) Secured
       by tangible
       assets
       (ii)Secure
       d          by
       intangible
       assets
       (iii)
       Covered by
       Bank/Govern
       ment
       Guarantees
       (iv)
       Unsecured
       Total (B)-
       Gross

       Less:
       Impairment
               loss
       Allowance
       Total (B)-
       Net

       (C)        (I)
       Loans in
       India
       (i) Public
       Sector
       (ii) Others (to
                   be
       specified)
       Total (C)-
       Gross
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       Less:
       Impairment
                 loss
       Allowance
       Total(C)
       (I)-Net
       (C)
       (II)Loans
       outside
       India
       Less:
       Impairment
                 loss
       Allowance
       Total (C)
       (II)- Net
       Total C(I)
       and C(II)

(E) Investments

        Investments
                                                       (Current Year)                                                           (Previous Year)
                                            At Fair Value                          Others Total                           At Fair Value                                  Other Total
                          Amor      Through     Through       Designa              *                     Amortise Through     Through     Designat                       s*
                          tised     Other       profit or     ted at                                     d cost     Other     profit or   ed at fair
                          cost      Comprehe loss             fair                                                Comprehe       loss     value
        Investments                                           value                                                                       through
                                    nsive                                                                           nsive
                                    Income                    through Su                                           Income                 profit or
                                                              profit  b-                                                                  loss                  Sub-
                                                              or loss Tot                                                                                       Total
                                                                      al




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                             (1)    (2)           (3)            (4)       (5)=                                           (9)           (10)          (11)      (12)=            (14)
                                                                           (2)+                                                                                 (9)+(            =(8)
                                                                                            (7)=(1)+
                                                                           (3)+    (6)                   (8)                                                    10)+(    (13)    +(12
                                                                                            (5)+(6)
                                                                           (4)                                                                                  11)              )+(1
                                                                                                                                                                                 3)
        Mutual funds
        Government
        securities
        Other
        approved
        securities
        Debt
        securities
         Equity
        instruments
        Subsidiaries
        Associates
        Joint
        Ventures
        Others
        (specify)
        Total ­ Gross
        (A)
        (i)
        Investments
        outside India
        (ii)
        Investments
        in India
        Total (B)
        Total (A) to tally
        with (B)
        Less:
        Allowance
        for
        Impairment

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        loss (C)
        Total ­ Net
        D= (A)-(C)
        * Other basis of measurement such as cost may be explained as a footnote




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(F) 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 depreciation and impairment losses or reversals shall be disclosed separately.

(G) 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.


(H) 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 or reversals shall be disclosed separately.


(I) 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.

(J) Other Intangible assets

                    (i)      Classification shall be given as:

                                       (a)   Brands or 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
                                       (h) Others (specify nature)
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                      (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 or reversals
                              shall be disclosed separately.

(K) Payables

          The following details relating to Micro, Small and Medium Enterprises shall be disclosed:

                 (a) the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier
                     at the end of each accounting year;
                 (b) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises
                     Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed
                     day during each accounting year;
                 (c) the amount of interest due and payable for the period of delay in making payment (which have
                     been paid but beyond the appointed day during the year) but without adding the interest specified
                     under the Micro, Small and Medium Enterprises Development Act, 2006;
                 (d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and
                 (e) the amount of further interest remaining due and payable even in the succeeding years, until such date when
                     the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a
                     deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.

                 Explanation.- The terms `appointed day', `buyer', `enterprise', `micro enterprise', `small enterprise' and
                 `supplier', shall have the same meaning assigned to those under clauses (b), (d), (e), (h), (m) and
                 (n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006."


(L) Debt Securities

                                              (Current Year)                                                 (Previous Year)

                    At              At Fair       Designate              Total              At          At Fair        Designated      Total
                    Amortised       Value         d at fair                              Amortised      Value          at fair value
                    Cost            Through       value                                    Cost         Through        through
                                    profit or     through                                               profit or      profit or
                                    loss          profit or                                             loss           loss
                                                  loss

                                                                    (4)=(1)+(2)+(3)                                                    (8)=(5)+(
                    (1)                 (2)       (3)                                        (5)            (6)        (7)             6)+(7)
   Liability
   component
   of
   compound
   financial
   instruments



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   Others
   (Bonds/
   Debenture
   etc.)
   Total (A)
   Debt
   securities
   in India
   Debt
   securities
   outside
   India
   Total (B)
   to tally
   with (A)

    (i)       bonds or debentures (along with the rate of interest, and particulars of redemption or conversion, as the case
              maybe) shall be stated in descending order of maturity or conversion, starting from earliest 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;
    (ii)      particulars of any redeemed bonds or debentures which the NBFC has power to reissue shall be disclosed




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(M) Borrowings (Other than Debt Securities)
                                                    (Current Year)                                                        (Previous Year)
                         At              At     fair Designated          Total                   At              At     fair Designated          Total
                         Amortised       value         at fair value                             Amortised       value         at       fair
                         Cost            Through       through                                   Cost            Through       value
                                         profit or     profit       or                                           profit or     through
                                         loss          loss                                                      loss          profit     or
                                                                                                                               loss

                         (1)             (2)           (3)               (4)=(1)+(2)+(3)         (1)             (2)            (3)              (4)=(1)+(2)+(3)
 (a)Term loans

       (i)from banks

        (ii)from other
            parties

 (b)Deferred
 payment liabilities

 (c)Loans from
 related parties

 (d) Finance lease
 obligations

 (e)Liability
 component of
 compound
 financial instruments

 (f)Loans
 repayable on
 demand


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   (i)from banks

   (ii)from        other
   parties

   (g) Other loans
   (specify nature)

   Total (A)

   Borrowings             in
   India

   Borrowings
   outside India

   Total (B) to tally
   with (A)



                   (i)         Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.

                   (ii)        Where borrowings have been guaranteed by directors or others, the aggregate amount of such borrowings under each head shall be
                               disclosed;

                   (iii)       terms of repayment of term loans and other loans shall be stated; and

                   (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.



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(N) Deposits

                                                     (Current Year)                                                         (Previous Year)
                         At                 At fair          Designated        Total              At                At fair         Designated        Total
                         Amortised          value            at fair value                        Amortised         value           at fair
                         Cost               through          through                              Cost              through         value
                                            profit or        profit or                                              profit or       through
                                            loss             loss                                                   loss            profit or
                                                                                                                                    loss
                         (1)                (2)                   (3)          (4)=(1)+(2)+(3)    (5)               (6)             (7)               (8)=(5)+(6)+(7)
   Deposits

   (i) Public
        Deposits
   (ii) From Banks

   (iii)From Others

   Total


(O) Subordinated Liabilities

                                                        (Current Year)                                                      (Previous Year)


                           At Amortised       At fair       Designated       Total                    At            At fair     Designated at       Total
                           Cost               value         at fair value                          Amortised        value       fair value
                                             through        through                                  Cost          through      through profit
                                             profit or      profit or                                              profit or    or loss
                                               loss         loss                                                     loss

                           (1)                    (2)       (3)              (4)=(1)+(2)+(3)            (5)           (6)       (7)                 (8)=(5)+(6)+(7)
   Perpetual Debt
   Instruments to the

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   extent that do not
   qualify as equity

   Preference Shares
   other than those that
   qualify as Equity


   Others (specifying
   the nature and type
   of instrument issued)


   Total (A)


   Subordinated
   Liabilities in India

   Subordinated
   Liabilities outside
   India

   Total (B) to tally
   with (A)



(P) Other Financial Liabilities (to be specified):

Other Financial liabilities shall be classified as-

        (a) Interest accrued;
        (b) Unpaid dividends;
        (c) Application money received for allotment of securities to the extent refundable and interest accrued thereon;
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       (d) Unpaid matured deposits and interest accrued thereon;
       (e) Unpaid matured debentures and interest accrued thereon;

       (f) Margin money (to be specified);and
       (g) Others (specify nature)


(Q) Provisions:

The amounts shall be classifiedas-

        (a) Provision for employee benefits; and
        (b) Others (specify nature)


(R) Other Non-financial liabilities (to be specified):

        (a) Revenue received in advance;
        (b) Other advances (Specify nature); and
        (c) Others (specify nature).


(S) 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;
       (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 five percent shares specifying the number of shares held;
       (h) shares reserved for issue under options and contracts/commitments for the sale of shares or disinvestment, including the terms and amounts;
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       (i) For the period of five years immediately preceding the date at which the Balance Sheet isprepared:

                     Aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash;
                     Aggregate number and class of shares allotted as fully paid up by way of bonus shares; and
                     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)

       (m) An NBFC shall disclose information that enables users of its financial statements to evaluate the NBFC's objectives, policies and processes for managing
           capital.

(T) 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)       Statutory Reserves; and
                              (e)       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)

                   (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; and

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                  (vi) Under the sub-head `Other Equity', disclosure shall be made for conditions or restrictions for distribution attached to statutory reserves.


(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 excluding financial guarantees; and
                                    (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).


   (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) Other Classification related General Instructions

       1.        When an NBFC 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 NBFC shall attach to the Balance Sheet, a "Balance Sheet" as at the beginning of the earliest comparative period
                 presented.

       2.       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 financial liabilities'.

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       3.       Preference shares including premium received on issue, 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, plain vanila redeemable preference shares shall be
                classified and presented under `liabilities' as `borrowings' or `subordinated liability' and the disclosure requirements in this regard applicable to such
                borrowings shall be applicable mutatis mutandis to redeemable preference shares.

       4.       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 ``Liabilities and Equity'.

       5.       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 Non-Banking Financial Company.........................

   Statement of Profit and Loss for the period ended ...........................

                                                                                                                              (Rupees in .................)
                       Particulars                                                   Note No.           Figures for the               Figures for the
                                                                                                      current reporting            previous reporting
                                                                                                                 period                        period
                       Revenue from operations

           (i)         Interest Income
           (ii)        Dividend Income
            (iii)      Rental Income
            (iv)       Fees and commission Income
           (v)         Net gain on fair value changes
            (vi)       Net gain on derecognition of financial instruments
                       under amortised cost category
            (vii)      Sale of products(including Excise Duty)
             (viii)    Sale of services
            (ix)        Others (to be specified)

   (I)                Total Revenue from operations

   (II)                Other Income (to be specified)

   (III)               Total Income (I+II)

                       Expenses

           (i)         Finance Costs
           (ii)        Fees and commission expense
            (iii)      Net loss on fair value changes


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            (iv)      Net loss on derecognition of financial instruments under
                      amortised cost category
           (v)        Impairment on financial instruments
            (vi)      Cost of materials consumed
            (vii)     Purchases of Stock-in-trade
             (viii)   Changes in Inventories of finished goods, stock-in- trade
                      and work-in- progress
            (ix)      Employee Benefits Expenses
           (x)        Depreciation, amortization and impairment
            (xi)      Others expenses (to be specified)

   (IV )              Total Expenses (IV)

   (V )                Profit / (loss) before exceptional items and tax (III-
                      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)

   (XIV)              Other Comprehensive Income
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                      (A) (i) Items that will not be reclassified to profit or
                      loss
                      (specify items and amounts)









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                       (ii) Income tax relating to items that will not be
                       reclassified to profit or loss

                       Subtotal (A)

                       (B) (i) Items that will be reclassified to profit or
                       loss
                       (specify items and amounts)

                       (ii) Income tax relating to items that will be
                       reclassified to profit or loss

                       Subtotal (B)

                       Other Comprehensive Income (A + B)

   (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 operations)

                       Basic (Rs.)
                       Diluted (Rs.)

   (XVII)              Earnings per equity share (for discontinued
                       operations)
                       Basic (Rs.)
                       Diluted (Rs.)

   (XVIII)         Earnings per equity share (for continuing and
                   discontinued operations)
                   Basic (Rs.)
                   Diluted (Rs.)
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:
             (A) Profit or loss for the period;

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             (B) Other Comprehensive Income for the period.
             The sum of (A) and (B) above is `Total Comprehensive Income'.

     3.      Interest Income
                                            (Current Year)                                  (Previous Year)
          Particulars            On           On Financial          Interest      On           On                   Interest
                                 Financial    Assets                Income        Financial    Financial            Income
                                 Assets       measured at           on            Assets       Assets               on
                                 measured at Amortised              Financial     measured     measured at          Financial
                                 fair value   Cost                  Assets        at fair      Amortised            Assets
                                 through                            classified    Value        Cost                 classified
                                 OCI                                at fair       through                           at fair
                                                                    value         OCI                               value
                                                                    through                                         through
                                                                    profit or                                       profit or
                                                                    loss                                            loss
   Interest on Loans
   Interest income from
   investments
   Interest on deposits
   with Banks
   Other interest
   Income
   Total


   4. Net gain/ (loss) on fair value changes*

                      Particulars                  (Current Year)                            (Previous Year)

      (A) Net gain/ (loss) on financial
      instruments at fair value through profit
      or loss

      (i) On trading portfolio
      - Investments

      - Derivatives

      - Others

      (ii) On financial instruments
      designated at fair value through
      profit or loss
      (B) Others ( to be specified)
      Total Net gain/(loss) on fair value
      changes (C)



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     Fair Value changes:

     -Realised
     -Unrealised
    Total Net gain/(loss) on fair value
    changes(D) to tally with (C)

   *Fair value changes in this schedule are other than those arising on account of accrued interest
   income/expense.

     5.       Other Income (to be specified)

                                    Particulars                           (Current Year)               (Previous Year)

          Net gain/(loss) on ineffective portion of hedges
          Net gain/(loss) on derecognition of property, plant
          and equipment
           Net gain or loss on foreign currency transaction and
          translation (other than considered as finance cost)(
          to be specified)
          Others ( to be specified)*

          Total

   * Any item under the subhead `Others' which exceeds one per cent of the total income to be presented
   separately.

     6.       Finance Costs

                   Particulars                     (Current Year)                       (Previous Year)
                                                  On              On Financial          On Financial       On Financial
                                                  Financial       liabilities           liabilities        liabilities
                                                  liabilities     measured at           measured at        measured at
                                                  measured at Amortised Cost            fair value         Amortised
                                                  fair value                            through            Cost
                                                  through                               profit or loss
                                                  profit or
                                                  Loss
    Interest on deposits
    Interest on borrowings
    Interest on debt securities
    Interest on subordinated liabilities

    Other interest expense
    Total



   7. Employee Benefits Expenses

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                                  Particulars                                (Current Year)          (Previous Year)
       Salaries and wages
       Contribution to provident and other funds
       Share Based Payments to employees
       Staff welfare expenses
       Others (to be specified)
       Total



   8. Impairment on financial instruments

                                                          (Current Year)                              (Previous Year)
                  Particulars                   On Financial          On Financial            On Financial      On Financial
                                                instruments           Instruments             instruments       instruments
                                                measured at fair      measured at             measured at       measured at
                                                value through OCI     Amortised               fair value        Amortised
                                                                      Cost                    through OCI       Cost
         Loans
        Investments
        Others (to be specified)
        Total



   9. Other expenses (to be specified)

                           Particulars                         (Current Year)                      (Previous Year)

       Rent, taxes and energy costs
       Repairs and maintenance
       Communication Costs
       Printing and stationery
       Advertisement and publicity
       Director's fees, allowances and expenses
       Auditor's fees and expenses
       Legal and Professional charges
       Insurance
       Other expenditure
       Total
   * Any item under the subhead `Others expenditure' which exceeds one per cent of the total income to be
   presented separately.
     10.    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 of financial liabilities designated at fair value
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                           through profit or loss;
                  v.       Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be
                           classified into profit or loss; and
              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; and
               v.    Others (specify nature).

   11. Additional Information: An NBFC shall disclose by way of notes, additional information regarding aggregate
       expenditure and income on the following items:

            i.         Depreciation, amortisation and impairment
            ii.        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;

            iii. in case of NBFCs covered under section 135, amount of expenditure incurred on corporate social
                 responsibility activities; and
            iv. details of items of exceptional nature




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PART III-  GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED
FINANCIAL STATEMENTS
        (1) Where a Non-Banking Financial Company (NBFC) 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 NBFC shall mutatis mutandis follow the requirements of this Schedule as applicable to an
            NBFC in the preparation of balance sheet, statement of changes in equity and statement of profit and loss.
            However, where the consolidated financial statements contains elements pertaining to NBFCs and other than
            NBFCs, mixed basis of presentation may be followed for consolidated financial statements where both kinds
            of operations are significant. 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, namely:-

            (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 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.




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            (2) In Consolidated Financial Statements, the following shall be disclosed by way of additional information:

   Name        of    the   Net Assets, i.e., total assets minus total        Share in profit or loss                           Share        in              other     Share   in total
   entity      in    the   Liabilities                                                                                         comprehensive income                   comprehensive
   Group                                                                                                                                                              income

                           As % of            Amount
                           consolidated                                      As % of Amount                                   As % of     Amount                      As % of Amount
                           net assets                                        consolidated                                     consolidate                             total
                                                                             profit or loss                                   d     other                             comprehe
                                                                                                                              comprehens                              nsive
                                                                                                                              ive                                     income
                                                                                                                              income
   Parent

   Subsidiaries
      Indian
      1.
      2.
      3.
       .
       .
       Foreign
      1.
      2.
      3.
       .
       .
   Non-controlling
   Interests in all
   Subsidiaries

   Associates
   (Investment  as
   per the equity

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   method)




                                                                                          137
GN on Division III - Ind AS Schedule III to the Companies Act 2013




      Indian
       1.
       2.
       3.
       .
       .
     Foreign 1.
       2.
       3.
       .
       .
  Joint Ventures(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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                                                               Annexure B
___________________________________________________________

Key Differences in Division I and Ind AS Schedule III to the Companies
Act, 2013
          Division I                                         Division III
Division I is applicable to a      Division III is applicable to every NBFC to which Ind AS
Company whose Financial            apply in preparation of its financial statements .
Statements are not required
to comply Ind AS.
What it includes?
Division I includes                Division III includes
1. Balance Sheet                   1. Balance Sheet
2. Statement of Profit and         2. Statement of Changes in Equity
Loss                               3. Statement of Profit and Loss.
3. Statement of Cash Flow          4. Statement of Cash Flow
4. Notes, comprising a             5. Notes, comprising a summary of significant accounting
summary        of   significant    policies and other explanatory information
accounting policies and other      6. A balance as at the beginning of the earliest
explanatory information            comparative period when an entity applies an accounting
                                   policy retrospectively or makes a retrospective
                                   restatement of items in its Financial Statements, or when
                                   it reclassifies items in its Financial Statements.
                                   Statement of Profit and Loss shall include profit or loss for
                                   the period and Other Comprehensive Income for the
                                   period.
3. Materiality
A Company shall disclose by        A NBFC shall disclose by way of notes additional
way of notes additional            information for any item of `other income' or `other
information any item of            expenditure' which exceeds 1 percent of the total
expenditure and income             income.
which exceeds one per cent         Also disclosure is to be made of all material items i.e. the
of    the   revenue    from        items if they could, individually or collectively, influence
GN on Division III - Ind AS Schedule III to the Companies Act 2013

         Division I                              Division III
operations or Rs. 1,00,000 the economic decisions that users make on the Financial
whichever is higher.       Statements.
4. Earnings per Share
No separate disclosure is Division III requires separate disclosure of the earning per
required for earning per share for continuing and discontinuing operations.
share for continuing and
discontinuing operations.
5. Extraordinary items
Separate      disclosure     is There is no separate disclosure of extraordinary items
required.                       which is in line with IND AS 1.
6. Investments
Under each classification of      The head `investments' includes the total investments
investments details shall be      including investments at amortised cost, at fair value
given of names of bodies          through Other Comprehensive Income, at fair value
corporate            indicating   through Profit or Loss, and designated at fair value
separately whether such           through Profit or Loss both within and outside India.
bodies are                        Where the NBFC has used a basis other than amortised
1. Subsidiaries                   cost or fair value, the same may be included in column
2. Associates                     `Others', with the basis of measurement disclosed as a
3. Joint ventures                 footnote. The impairment loss allowance as per Ind AS
4. Controlled special purpose     109 should be disclosed as a separate line item under the
entities                          sub-heads mentioned above.
The following shall also be       Investments shall be classified as:
disclosed.                        (i)    Investments in Mutual funds
(a) The basis of valuation        (ii)   Investments in Government securities
       of            individual
       investment                 (iii) Investments in Other approved securities
(b) Aggregate amount of           (iv) Investments in Debt Securities
       quoted     investments
                                  (v)    Investments in Equity Instruments
       and market value
       thereof                    (vi) Investments in Subsidiaries
(c) Aggregate amount of           (vii) Investments in Associates
       unquoted investments
                                  (viii) Investments in Joint Ventures
(d) Aggregate provision
       made for diminution in     (ix) Others (Specify)

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          Division I                                      Division III
      value of investments
7. Trade Receivables
Aggregate amount of Trade         As per the amendments to Schedule III, `trade
receivable outstanding for a      receivables' should be classified as follows:
period exceeding six months       a) Trade receivables considered good (Secured)
from the date they are due        b) Trade receivables considered good (Unsecured)
for payment should be
                                  c) Trade receivables which have significant increase in
separately disclosed
                                  credit risk and
                                  d) Trade receivables ­ credit impaired.
                                  A separate disclosure under `receivables' is required
                                  for any debts due from any Limited Liability
                                  Partnership (LLP) in which its director is a partner or
                                  member.
8. Contingent liabilities
Contingent liabilities includes   Contingent liabilities pertaining to guarantees excluding
all guarantees                    financial guarantees.
                                  Further, the following has been removed for Division
                                  III:
                                  W. If, in the opinion of the Board, any of the assets
                                  other than fixed assets and non-current investments
                                  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.
9. Finance Cost
Finance cost shall be             Finance Cost shall be classified as
classified as                     (a) Interest on deposits
(a) Interest Expense              (b)   Interest on borrowings
(b) Other borrowing cost
(c) Applicable           net      (c)   Interest on debt securities
       gain/loss on foreign       (d)   Interest on subordinated liabilities
       currency transactions      (e)   Other interest expense
       and translations

10. Revenue

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GN on Division III - Ind AS Schedule III to the Companies Act 2013

         Division I                                   Division III
Revenue is disclosed as        Revenue includes excise duty .
Sales net of Excise duty       Also, NBFCs are required to disclose items
                               comprising `revenue from operations' and `other
                               comprehensive income' on the face of the statement
                               of profit and loss.
11. Bank Deposits
Cash and cash equivalents      Cash and cash equivalent

Cash and Cash equivalents      Cash and Cash equivalents shall be classified as:
shall be classified as:
                               (a) Balance with banks (of the nature of cash and cash
(a) Balance with banks         equivalents)


Bank deposits with more than
12 months maturity should be
classified under Other bank
balances
12. Defined benefit plan
Gains/losses arising on        Ind AS Schedule III states that Re-measurement gains/
defined benefit plan is        losses on defined benefit plans should form part of
recognized in statement of     retained earnings.
profit and loss                Ind AS requires that Re-measurement gains/ (losses)
                               arising on defined benefit plans should be recognized in
                               the other comprehensive income (OCI) and these gains/
                               losses cannot subsequently be reclassified to profit or
                               loss.
                               However, Ind AS does not contain any specific guidance/
                               requirement whether such gains/ losses should be
                               recognized in the retained earnings or should appear as a
                               separate reserve within the statement of changes in
                               equity.
13. Liquidity
Where compliance with the Where any Act, Regulation, Guidelines or Circulars
requirements of the Act issued by the relevant regulators from time to time
including      Accounting requires disclosures to be made in the standalone

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GN on Division III - Ind AS Schedule III to the Companies Act 2013

           Division I                                     Division III
Standards as applicable to         financial statements of an NBFC, the said disclosures
the companies require any          shall be made in addition to those required under this
change in treatment or             Schedule. The NBFCs preparing financial statements as
disclosure including addition,     per this Schedule may change the order of
amendment, substitution or         presentation of line items on the face of financial
deletion in the head or sub-       statements or order of line items within the schedules
head or any changes, inter         in order of liquidity, if appropriate, considering the
se,     in     the     financial   operations performed by the NBFC.
statements or statements
forming part thereof, the
same shall be made and the
requirements        of      this
Schedule        shall     stand
modified accordingly.

14. Other disclosures of
Statement of Profit and Loss
The following disclosures are These disclosures are no longer required under
required                       Division III to Schedule III.
A. (a) In the case of
manufacturing companies,
(1) Raw materials under
        broad heads.
(2) goods           purchased
        under broad heads.
(b) In the case of trading
companies, purchases in
respect of goods traded in by
the company under broad
heads.
(c) In the case of companies
rendering      or    supplying
services,     gross    income
derived      from     services
rendered or supplied under
broad heads.
(d) In the case of a company,
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GN on Division III - Ind AS Schedule III to the Companies Act 2013

          Division I                                Division III
which falls under more than
one of the categories
mentioned in (a), (b) and (c)
above, it shall be sufficient
compliance        with        the
requirements       herein       if
purchases,       sales       and
consumption of raw material
and the gross income from
services rendered is shown
under broad heads.
(e) In the case of other
companies, gross income
derived under broad heads.
B. In the case of all concerns
having works in progress
under broad heads.
C. (a) The aggregate, if
material, of any amounts set
aside or proposed to be set
aside, to reserve, but not
including provisions made to
meet any specific liability,
Contingency or commitments
known to exist at the date as
to which the balance sheet is
made up.
(b) The aggregate, if
material, of any amounts
withdrawn       from       such
reserves.
D. (a) The aggregate, if
material, of the amounts set
aside to provisions made for
meeting specific liabilities,
contingencies                  or
commitments.

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           Division I                               Division III
(b) The aggregate, if
material, of the amounts
withdrawn        from     such
provisions, as no longer
required.
E. Expenditure incurred on
each of the following items,
separately for each item:
(a) Consumption of stores
       and spare parts;
(b) Power and fuel;
(c) Rent;
(d) Repairs to buildings;
(e) Repairs to machinery;
(f)    Insurance;
(g) Rates and taxes,
       excluding taxes on
       income;
(h) Miscellaneous
       expenses,
F. (a) Dividends from
subsidiary companies.
(b) Provisions for losses of
subsidiary companies.
G. The profit and loss
account shall also contain by
way of a note the following
information, namely:
(a)     Value      of  imports
calculated on C.I.F basis by
the company during the
financial year in respect of
I.     Raw materials;
II.    Components          and
spare parts;
III.   Capital goods;
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            Division I                              Division III
(b) Expenditure in foreign
currency during the financial
year on account of royalty,
know-how, professional and
consultation fees, interest,
and other matters;
(c) Total value if all imported
raw materials, spare parts
and components consumed
during the financial year and
the total value of all
indigenous raw materials,
spare parts and components
similarly consumed and the
percentage of each to the
total consumption;
(d) The amount remitted
during the year in foreign
currencies on account of
dividends with a specific
mention of the total number
of non-resident shareholders,
the total number of shares
held by them on which the
dividends were due and the
year to which the dividends
related;
(e) Earnings in foreign
exchange classified under
the following heads, namely:
I.      Export     of     goods
        calculated on F.O.B.
        basis;
II.     Royalty,     know-how,
        professional        and
        consultation fees;
III.    Interest and dividend;

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          Division I                                  Division III
IV.   Other          income,
      indicating the nature
      thereof.
15. Dividend on Preference
Shares
Dividend on redeemable          Dividend on redeemable preference shares is now
preference shares was           presented as a part of Finance cost.
regarded as an adjustment to
reserves.
16. Prior Period Items
A separate disclosure was       There is no concept of Prior period items and any
required for Prior Period       retrospective application of accounting policy or
Items.                          retrospective restatement of items in Financial
                                Statements, or reclassification of items in Financial
                                Statements requires restatement of comparative period.
17. Rounding off Disclosure
Depending upon the turnover Depending upon the turnover of the company, the figures
of the company, the figures appearing in the Financial Statements shall be rounded
appearing in the Financial off as given in Ind AS Schedule III.
Statements may be rounded
off as given in Non-Ind AS
Schedule III.
18. Investments ­ Names of
Bodies Corporate
Under each classification of    The head `investments' includes the total investments
investments details shall be    including investments at amortised cost, at fair value
given of names of bodies        through Other Comprehensive Income, at fair value
corporate          indicating   through Profit or Loss, and designated at fair value
separately whether such         through Profit or Loss both within and outside India.
bodies are                      Where the NBFC has used a basis other than amortised
 1. Subsidiaries                cost or fair value, the same may be included in column
2. Associates                   `Others', with the basis of measurement disclosed as a
                                footnote. The impairment loss allowance as per Ind AS
3. Joint ventures
                                109 should be disclosed as a separate line item under the
4. Control special purpose      sub-heads mentioned above.
entities
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         Division I                                   Division III
                               Investments shall be classified as:
                               (x)   Investments in Mutual funds
                               (xi) Investments in Government securities
                               (xii) Investments in Other approved securities
                               (xiii) Investments in Debt Securities
                               (xiv) Investments in Equity Instruments
                               (xv) Investments in Subsidiaries
                               (xvi) Investments in Associates
                               (xvii) Investments in Joint Ventures
                               Others (Specify)
19. Investment Property
Investment property was        Investment Property is disclosed as a separate line item
disclosed as a part of         on the face of balance sheet.
Investments .                  Also the following disclosure needs to be given
                               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
                               depreciation and impairment losses or reversals shall
                               be disclosed separately.
20. Disclosure in standalone
financial statements
No such explicit Requirement   Disclosures required by Act, Regulation, Guidelines or
                               Circulars issued by the relevant regulators from time
                               to time shall be made in the standalone financial
                               statements which shall be made in addition to those
                               required under this Schedule.
21. Property, Plant and
Equipment and Intangible
Assets
Tangible assets                Property, Plant and Equipment

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          Division I                                       Division III
Classification shall be given     Classification shall be given as:
as:                               (i) Land
(i)   Land;                       (ii) Buildings
(ii) Buildings;                   (iii) Plant and Equipment
(iii) Plant and Equipment;        (iv) Furniture and Fixtures
(iv) Furniture and Fixtures;      (v) Vehicles
(v) Vehicles;                     (vi) Office equipment
(vi) Office equipment;            (vii) Bearer Plants
(vii) Others (specify nature)     (viii) Others (specify nature)

Clause common to Tangible         Clause common to Property, Plant & Equipment and Other
assets and Intangible assets:     Intangible Assets:


22. Capital Reduction
Where sums have been              No such requirement
written-off on a reduction of
capital or revaluation of
assets or where sums have
been added on revaluation of
assets, every balance sheet
subsequent to date of such
write-off, or addition shall
show the reduced or
increased       figures      as
applicable and shall by way
of a note also show the
amount of the reduction or
increase     as      applicable
together with the date thereof
for the first five years
subsequent to the date of
such reduction or increase.
23. Biological Assets other
than bearer plants
Biological assets other than      Biological assets other than bearer plants
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          Division I                                     Division III
bearer plants                     Biological assets other than bearer plants need to be
No such requirement               disclosed separately on the face of balance sheet.

                                  Further, 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.
24. Loans: Non-current
Long-term      loans       and    As per the amendment to Schedule III, `loans receivables'
advances shall be classified      should be classified as follows:
as:                               (a) Loans receivables considered good - Secured;
(a) Capital Advances ;            (b) Loans receivables considered good ­ Unsecured;
(b) Security Deposits;            (c) Loans receivables which have significant increase in
(c) Loans and advances            credit risk; and
      to related parties          (d) Loans receivables ­ credit impaired.
      (giving details thereof);
(d) Other       loans      and
      advances         (specify
      nature).
25. Other non-current assets
Other non-current assets There is no line item as Other non-current assets in
shall be classified as:          Division III to Schedule III.
(i)     Long-term          Trade
        Receivables (including
        trade receivables on
        deferred credit terms);
(ii) Others             (specify
        nature);
(iii) Long-term            Trade
        Receivables, shall be
        sub-classified as:
     a. Secured,      considered
          good;
     b. Unsecured, considered
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GN on Division III - Ind AS Schedule III to the Companies Act 2013

         Division I                                  Division III
        good;
    c. Doubtful.

Allowance for bad and doubtful
debts shall be disclosed under
the relevant heads separately.

Debts due by 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.
26. Loans: Current
Short-term     loans       and There is no line item as Loans: Current in Division III
advances shall be classified to Schedule III.
as:
(a) Loans and advances
      to related parties
      (giving details thereof);
(b) Others             (specify
      nature).
27. Other current assets
This is an all-inclusive There is no line item as Other current assets in
heading, which incorporates Division III to Schedule III.
current assets that do not fit
into    any    other   asset
categories.
28. Share capital

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          Division I                                      Division III
For each class of share           For each class of equity share capital (different classes of
capital (different classes of     preference shares to be treated separately):
preference shares to be
treated separately):              (j) terms of any securities convertible into equity/
(j)    terms of any securities    preference shares issued along with the earliest date of
convertible               into    conversion in descending order starting from the farthest
equity/preference      shares     such date;
issued along with the earliest
date of conversion in
descending order starting
from the farthest such date;
29.      Reserves          and
Surplus/Other Equity
(i)    Reserves and Surplus       (i) `Other Reserves' shall be classified in the notes as -
shall be classified as:           (a) Capital Reserve;
(a) Capital Reserves;             (a) Capital Redemption Reserve;
(b) Capital        Redemption     (c) Securities Premium Reserve;
       Reserve;                   (b) Debenture Redemption Reserve;
(c) Securities         Premium    (c) Share Options Outstanding Account
       Reserve;
(d) Debenture
                                  (d) Statutory Reserves; and
       Redemption Reserve;
(e) Revaluation Reserve;
                                  (e) Others - (specify the nature and purpose of each
(f)    Share            Options
                                        reserve and the amount in respect thereof);
       Outstanding Account;
                                  (Additions and deductions since last balance sheet to be
(g) Other            Reserves-
                                   shown under each of the specified heads)
       (specify the nature and
                                  (ii) Retained Earnings represents surplus i.e. balance of
       purpose      of    each
       reserve      and     the    the relevant column in the Statement of Changes in
       amount in respect           Equity;
       thereof);                  (iii) A reserve specifically represented by earmarked
(h) Surplus i.e., balance in      investments shall disclose the fact that it is so
       Statement of Profit and    represented;
       Loss          disclosing   (iv) Debit balance of Statement of Profit and Loss shall be
       allocations          and   shown as a negative figure under the head `retained
       appropriations such as     earnings'. Similarly, the balance of `Other Equity', after

                                   152
GN on Division III - Ind AS Schedule III to the Companies Act 2013

            Division I                                       Division III
       dividend,         bonus     adjusting negative balance of retained earnings, if any,
       shares and transfer to/     shall be shown under the head `Other Equity' even if the
       from reserves, etc.;        resulting figure is in the negative; and
(Additions and deductions          (v) Under the sub- head `Other Equity', disclosure shall be
since last balance sheet to        made for the nature and amount of each item.
be shown under each of the         (vi) Under the sub- head `Other Equity', disclosure
specified heads);                  shall be made for conditions or restrictions for
(ii) A reserve specifically        distribution attached to statutory reserves.
represented by earmarked
investments shall be termed
as a "fund".
(iii) Debit       balance     of
statement of profit and loss
shall be shown as a negative
figure under the head
"Surplus ". Similarly, the
balance of "Reserves and
Surplus ", after adjusting
negative balance of surplus,
if any, shall be shown under
the head "Reserves and
Surplus " even if the resulting
figure is in the negative.


30. Borrowings: Non-current
Long-term borrowings shall         There are no current and non-current classifications in
be classified as:                  Division III. Borrowings and Debt Securities fall under the
(a)Bonds/debentures;               head `Financial Liabilities'.
(b) Term loans:
      (A) from banks.              Borrowings (Other than Debt Securities) shall be classified
      (B) from other parties.      as:
(c) Deferred payment
liabilities;                       (a) Term Loans
(d) Deposits;                             (i) From banks
(e) Loans and advances from               (ii) From other parties
related parties;                   (b) Deferred payment liabilities
(f) Long term maturities of        (c) Loans from related parties

                                    153
GN on Division III - Ind AS Schedule III to the Companies Act 2013

           Division I                                  Division III
finance lease obligations;   (d) Finance lease obligations
(g) Other loans and advances (e) Liability component of compound financial
(specify nature).                 instruments
                             (f) Loans repayable on demand
Period and amount of                 (i) From banks
continuing default as on the         (ii) From other parties
balance sheet date in (g) Other loans (specify nature)
repayment of loans and The borrowings shall be disclosed at amortised cost and at
interest, shall be specified fair value through profit or loss, and designated at fair value
separately in each case.     through profit and loss, both within and outside India.

                                    The head `Debt Securities' under `Financial Liabilities'
                                    includes Liability component of compound financial
                                    instruments as per applicable accounting standards and
                                    Others (Bonds/ Debentures etc.) i.e. debt securities other
                                    than subordinated liabilities; including debt securities at
                                    amortised cost and at fair value, both within and outside
                                    India.
31. Other non-current liabilities


Other Long-term Liabilities         There is no line item as `Other non - current liabilities'
shall be classified as:             in Division III to Schedule III. Other financial liabilities
(a) Trade payables                  and other non-financial liabilities are disclosed as
(b) Others                          line items in the balance sheet.
32. Borrowings: Current
Short-term borrowings shall There are no current and non-current classifications in
be classified as:           Division III. Borrowings and Debt Securities fall under the
(a) Loans repayable on      head `Financial Liabilities'.
demand;
     (A) from banks.                Borrowings (Other than Debt Securities) shall be classified
     (B) from other parties.        as:
(b) Loans and advances
from related parties;
(c) Deposits;
                                    (h) Term Loans
(d) Other loans and                       (i) From banks
advances (specify nature).                (ii) From other parties
                                    (i) Deferred payment liabilities
                                    (j) Loans from related parties
                                     154
GN on Division III - Ind AS Schedule III to the Companies Act 2013

           Division I                                        Division III
                                   (k) Finance lease obligations
                                   (l) Liability component of compound financial
Period and amount of default            instruments
as on the balance sheet date       (m) Loans repayable on demand
in repayment of loans and                  (i) From banks
interest, shall be specified               (ii) From other parties
separately in each case.           (n) Other loans (specify nature)
                                   The borrowings shall be disclosed at amortised cost and at
                                   fair value through profit or loss, and designated at fair value
                                   through profit and loss, both within and outside India.

                                   The head `Debt Securities' under `Financial Liabilities'
                                   includes Liability component of compound financial
                                   instruments as per applicable accounting standards and
                                   Others (Bonds/ Debentures etc.) i.e. debt securities other
                                   than subordinated liabilities; including debt securities at
                                   amortised cost and at fair value, both within and outside
                                   India.
33. Other current liabilities

Other current liabilities          There is no line item as `Other current liabilities' in
The amounts shall be               Division III to Schedule III. Other financial liabilities
classified as:                     and other non-financial liabilities are disclosed as
(a) Current maturities of          line items in the balance sheet.
       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

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GN on Division III - Ind AS Schedule III to the Companies Act 2013

          Division I                                   Division III
      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).
34. Non-current assets held
for sale
No such requirement             The presentation of liabilities associated with group 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).
35. Proposed dividend           The amount of dividends proposed to be distributed to
                                equity and preference shareholders for the period and the
The amount of dividends         related amount per share shall be disclosed separately.
proposed to be distributed to   Arrears of fixed cumulative dividends on irredeemable
equity    and     preference    preference shares shall also be disclosed separately.
shareholders for the period
and the related amount per      As per Ind AS 10 Events after the Reporting Period,
share shall be disclosed        proposed dividends should not be recognized as a liability
separately. Arrears of fixed    but rather should be disclosed as a separate note. Hence,
cumulative dividends on         there is no difference between Indian GAAP and Ind AS.
preference shares shall also
be disclosed separately.



As per AS 4 Contingencies
and Events Occurring After
the Balance Sheet Date
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GN on Division III - Ind AS Schedule III to the Companies Act 2013

          Division I                                     Division III
(Revised 2016) , proposed
dividends should not be
recognized as a liability but
rather should be disclosed as
a separate note.
36. Share application money


Share application money            Share application money pending allotment shall be
includes advances towards          classified into equity or liability in accordance with
allotment of share capital .       relevant Indian Accounting Standards. Share application
The terms and conditions           money to the extent not refundable shall be shown under
including the number of            the head Equity and share application money to the
shares proposed to be              extent refundable shall be separa tely shown under `Other
issued, the amount of              financial liabilities'.
premium, if any, and the
period before which shares
shall be allotted shall be
disclosed. It shall also be
disclosed      whether       the
company       has     sufficient
authorised capital to cover
the share capital amount
resulting from allotment of
shares out of such share
application money. Further,
the period for which the
share application money has
been pending beyond the
period for allotment as
mentioned in the document
inviting application for shares
along with the reason for
such      share     application
money being pending shall
be       disclosed.       Share
application     money        not
exceeding the issued capital
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GN on Division III - Ind AS Schedule III to the Companies Act 2013

             Division I                                   Division III
and to the extent not
refundable shall be shown
under the head Equity and
share application money to
the extent refundable, i.e.,
the amount in excess of
subscription or in case the
requirements of minimum
subscription are not met,
shall be separately shown
under         "Other    current
liabilities"
37.     Classification       of
preference shares
No such requirement               Preference shares including premium received on issue,
                                  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,
                                  plain vanila redeemable preference shares shall be
                                  classified and presented under `liabilities' as
                                  `borrowings' or `subordinated liability' and the
                                  disclosure requirements in this regard applicable to such
                                  borrowings shall be applicable mutatis mutandis to
                                  redeemable preference shares.
38. Compound          financial
instruments
No such requirement               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 `Liabilities and
                                  Equity'.
39.    Regulatory     Deferral

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GN on Division III - Ind AS Schedule III to the Companies Act 2013

          Division I                                      Division III
Account
No such requirement              Regulatory Deferral Account Balances and changes in
                                 such Balances shall be presented in the Balance Sheet
                                 and Statement of Profit and Loss in accordance with the
                                 relevant Indian Accounting Standards.
40. Boards opinion         on
realizable value
If, in the opinion of the        No such requirement in accordance with Ind AS.
Board, any of the assets
other than fixed assets and
non-current investments do
not have a value on
realisation 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.
41. Revenue from operations
In respect of a company          Revenue from operations shall be separately disclosed on
other than a finance             the face of the Statement of Profit and Loss, showing:
company     revenue   from       (a)   Interest Income;
operations shall disclose
separately in the notes          (b)   Dividend Income;
revenue from-                    (c)   Rental Income;
(a) Sale of products;            (d)   Fees and commission Income;
(b) Sale of services;            (e)   Net gain on fair value changes;
(c) Other         operating
revenues;                        (f)   Net gain on derecognition of financial instruments
                                 under amortised cost category;
Less:
(d) Excise duty                  (g)   Sale of products (including Excise duty);
In respect of a finance          (h)   Sale of services; and
company, revenue from            (i)   Others (to be specified)
operations shall include
revenue from-

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GN on Division III - Ind AS Schedule III to the Companies Act 2013

         Division I                                       Division III
(a) Interest
(b) Other           financial
services
Revenue under each of the
above heads shall be
disclosed separately by way
of notes to accounts to the
extent applicable.
42. Other income
Other income shall be             `Other Income' shall be classified as:
classified as:                    (a)   Net gain/ (loss) on ineffective portion of hedges;
(a) interest income (in
                                  (b)   Net gain/ (loss) on derecognition of property, plant
       case of a company
                                        and equipment;
       other than a finance
       company)                   (c)   Net gain or loss on foreign currency transaction
(b) dividend income                     and translation (other than considered as finance
                                        cost)(to be specified)
(c) Net gain/loss on sale
       of investments             (d)   Others (to be specified)
(d) other        non-operating
       income      (net      of
       expenses        directly
       attributable to such
       income)
43.    Employee        benefit
expense
Employee benefits expense         Employee benefits expense shall classified as:
shall classified as:              (a) salaries and wages
(i)    salaries and wages,        (b) contribution to provident and other funds
(ii) contribution          to     (c) share based payments to employees
       provident and other        (d) staff welfare expenses
       funds
(iii) expense on Employee
       Stock Option Scheme
       (ESOP) and Employee
       Stock Purchase Plan

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GN on Division III - Ind AS Schedule III to the Companies Act 2013

          Division I                                    Division III
       (ESPP)
(iv)   staff welfare expenses


44. Adjustments to carrying
amount of investments
A Company shall disclose by No such requirement
way of notes additional
information       regarding
aggregate expenditure and
income on adjustments to the
carrying     amount       of
investments.
45. Payment to auditors
Payments to auditor shall be    Payments to auditor shall be classified as:
classified as:                  (a)     auditor
(a) auditor                     (b)     for taxation matters
(b) for taxation matters        (c)     for company law matters
(c) for        company   law    (d)     for management services
matters                         (d) for other services
(d) for           management    (e) for reimbursement of expenses
services
(e) for other services
(f)    for reimbursement of
expenses
46. Consolidated financial
statements
"Minority interests" in the     `Non- controlling interests' in the Balance Sheet and in the
balance sheet within equity     Statement of Changes in Equity, within equity, shall be
shall be presented separately   presented separately from the equity of the `owners of the
from the equity of the owners   parent'.
of the parent.                  Consolidated financial statements shall also disclose
                                investments accounted for using the equity method.
47.             Retrospective
restatement                or

                                 161
GN on Division III - Ind AS Schedule III to the Companies Act 2013

           Division I                                  Division III
reclassification
No such requirement           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 presented.
48. Other     Comprehensive
Income
No such requirement           Other Comprehensive Income shall be classified into:
                              (A) Items that will not be reclassified to profit or loss:
                                  (i) Changes in revaluation surplus;
                                  (ii) Remeasuremnts of the defined benefit plans;
                                  (iii) Equity         Instruments        through       Other
                                         Comprehensive Income;
                                  (iv) Fair value changes relating to own credit risk of
                                         financial liabilities designated at FVTPL; or
                                  (v) Share of Other Comprehensive Income in
                                       Associates and Joint Ventures, to the extent not to
                                       be classified into profit or loss; and
                                  (vi) Others (specify nature).

                              Income tax relating to items that will not be reclassified to
                              profit or loss

                              (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; and
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GN on Division III - Ind AS Schedule III to the Companies Act 2013

         Division I                                      Division III
                                      (v) Others (specify nature).

                                Income tax relating to items that will be reclassified to
                                profit or loss


Key Differences in Division II and Division III Ind AS Schedule III to the
Companies Act, 2013


S.             Division II                                  Division IIII
No
      Division II is applicable to a Division III is applicable to every NBFC to which Ind AS
      company whose financial apply in preparation of its financial statements.
      statements are prepared in
      accordance with Ind AS
      (other than Non-Banking
      Financial         Companies
      (NBFCs)).
1.    In the Balance Sheet, assets In the Balance Sheet, assets are divided under the
      are divided under the broad broad head of financial assets and non-financial assets.
      head of non-current assets
      and current assets

2.    Non-current assets includes     Financial assets include
      (a) Property, Plant and         (a) Cash and cash equivalents
           Equipment                  (b) Bank Balance other than (a) above
      (b) Capital           work-in   (c) Derivative financial instruments
           progress                   (d) Receivables
      (c) Investment Property              (I) Trade Receivables
      (d) Goodwill                        (II) Other Receivables
      (e) Other Intangible assets     (e) Loans
      (f) Intangible assets under     (f) Investments
           development                (g) Other Financial assets (to be specified)
      (g) Biological Assets other
           than bearer plants
      (h) Financial Assets
           (i) Investments
           (ii) Trade receivables
                                  163
GN on Division III - Ind AS Schedule III to the Companies Act 2013

          (iii) Loans
          (iv) Others (to be
                specified)
     (i) Deferred tax assets
          (net)
     (j)         Other non-current
     assets
3.   Current assets includes           Non-financial Assets includes
     (a) Inventories                   (a) Inventories
     (b) Financial Assets              (b) Current tax assets (Net)
           (i) Investments             (c) Deferred tax Assets (Net)
          (ii) Trade receivables       (d) Investment Property
         (iii) Cash and cash           (e) Biological assets other than bearer plants
                equivalents            (f) Property, Plant and Equipment
         (iv) Bank         balances    (g) Capital work-in-progress
                other than (iii)       (h) Intangible assets under development
                above                  (i) Goodwill
          (v) Loans                    (j) Other Intangible assets
         (vi) Others       (to   be    (k) Other non-financial assets (to be specified)
                specified)
     (c)      Current Tax Assets
           (Net)
     (d) Other current assets

4.   In the Balance Sheet, In the Balance Sheet, liabilities are divided under the
     liabilities are divided under broad head of financial liabilities and non-financial
     the broad head of non- liabilities.
     current liabilities and current
     liabilities.

5.   Non-current           liabilities Financial liabilities include
     includes                          (a) Derivative financial instruments
     (a) Financial Liabilities         (b) Payables
           (i) Borrowings                    (I) Trade Payables
          (ii) Trade payables                    (i) total outstanding dues of micro enterprises
               (A) Total                               and small enterprises
                   outstanding                   (ii) total outstanding dues of creditors other than
                   dues of Small                       micro enterprises and small enterprises
                   Enterprises and       (II) Other Payables
                   Micro                          (i) total outstanding dues of micro enterprises
                   enterprises                           and small enterprises

                                    164
GN on Division III - Ind AS Schedule III to the Companies Act 2013

                (B) Total                          (ii) total outstanding dues of creditors other
                    outstanding                          than micro enterprises and small
                    dues          of                     enterprises
                    creditors other      (c)   Debt Securities
                    than       small     (d)   Borrowings (Other than Debt Securities)
                    enterprises and      (e)   Deposits
                    micro                (f)   Subordinated Liabilities
                    enterprises.         (g)   Other financial liabilities(to be specified)
        (iii)   Other        financial
                liabilities (other
                than            those
                specified in item
                (b),       to      be
                specified)
     (b) Provisions
     (c) Deferred tax liabilities
           (Net)
     (d)      Other    non-current
           liabilities



6.   Current liabilities includes    Non-financial liabilities includes
     (a) Financial Liabilities          (a) Current tax liabilities (Net)
          (i) Borrowings                (b) Provisions
         (ii) Trade payables            (c) Deferred tax liabilities (Net)
               (A) Total                (d) Other non-financial liabilities(to be specified)
                   outstanding
                   dues of Micro
                   enterprises and
                   Small
                   Enterprises (B)
                   Total
                   outstanding
                   dues           of
                   creditors other
                   than        micro
                   enterprises and
                   small
                   enterprises.
          (iii) Other financial

                                     165
GN on Division III - Ind AS Schedule III to the Companies Act 2013

             liabilities     (other
             than             those
             specified in item (c)
     (b) Other current liabilities
     (c) Provisions
     (d) Current Tax Liabilities
         (Net)
7.   Other Financial liabilities          Other Financial liabilities shall be classified as-
     shall be classified as-               (i) Interest accrued;
         (i) Current maturities of        (ii) Unpaid dividends;
             long term debt;             (iii) Application money received for allotment of
        (ii) Current maturities of              securities to the extent refundable and interest
             finance           lease            accrued thereon;
             obligations;                (iv) Unpaid matured deposits and interest accrued
       (iii) Interest accrued;                  thereon;
       (iv) Unpaid dividends;             (v) Unpaid matured debentures and interest accrued
        (v) Application money                   thereon;
             received for allotment      (vi)    Margin money (to be specified);and
             of securities to the       (vii) Others (specify nature)
             extent      refundable
             and interest accrued
             thereon;
       (vi) Unpaid          matured
             deposits and interest
             accrued thereon;
      (vii) Unpaid          matured
             debentures          and
             interest       accrued
             thereon; and
     (viii) Others           (specify
             nature).

8.   For each class of equity For each class of equity share capital, an NBFC shall
     share capital, no such disclose information that enables users of its financial
     disclosure is required.  statements to evaluate the NBFC's objectives, policies
                              and processes for managing capital.
9.   Other Reserves' shall be           Other Reserves' shall be classified in the notes as:
     classified in the notes as-         (a) Capital Redemption Reserve;
     (a)      Capital Redemption         (b) Debenture Redemption Reserve;
     Reserve;                            (c) Share Options Outstanding Account;

                                    166
GN on Division III - Ind AS Schedule III to the Companies Act 2013

      (b) Debenture Redemption (d) Statutory Reserves; and
      Reserve;                     (e) Others ­ (specify the nature and purpose of each
      (c)        Share    Options        reserve and the amount in respect thereof);
      Outstanding Account; and    (Additions and deductions since last balance sheet to
      (d) Others­ (specify the be shown under each of the specified heads)
      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.   A separate disclosure is No such separate disclosure needed.
      required in the Revenue
      from operations in the notes
       (a) sale      of    products
            (including       Excise
            Duty);
       (b) sale of services; and
       (c) other          operating
            revenues.

11.   Revenue from operations Revenue from operations in the statement of profit and
      and other income is shown loss shall be classified as:-
      on the face of statement of    (i) Interest Income
      profit and loss as total       (ii) Dividend Income
      income.                       (iii) Rental Income
                                    (iv) Fees and commission Income
                                     (v) Net gain on fair value changes
                                    (vi) Net gain on de-recognition of financial
                                          instruments under amortised cost category
                                   (vii) Sale of products(including Excise Duty)
                                  (viii) Sale of services
                                    (ix) Others (to be specified)

12.   Expenses in the statement of Expenses in the statement of profit and loss shall be
      profit and loss shall be classified as:-
      classified as:-                 (i) Finance Costs
         (i) Cost of materials       (ii) Fees and commission expense
               consumed;            (iii) Net loss on fair value changes
        (ii) Purchases of Stock- (iv)     Net loss on de-recognition of financial

                                 167
GN on Division III - Ind AS Schedule III to the Companies Act 2013

               in-Trade;                         instruments under amortised cost category
       (iii)   Changes             in    (v)     Impairment on financial instruments
               inventories         of     (vi)   Cost of materials consumed
               finished goods;           (vii)   Purchases of Stock-in-trade
       (iv)    Stock-in-Trade;          (viii)    Changes in Inventories of finished goods,
        (v)    work-in progress;                 stock-in trade and work-in- progress
       (vi)    Employee benefits         (ix)    Employee Benefits Expenses
               expense;                   (x)    Depreciation, amortization and impairment
       (vii)    Finance costs ;          (xi)    Others expenses (to be specified)
      (viii)    Depreciation     and
               amortization
               expense;
       (ix)    Other expenses.


13.   A Company shall disclose by       A Company shall disclose by way of notes, additional
      way of notes, additional          information regarding any item of income or
      information regarding any         expenditure which exceeds one per cent of the revenue
      item     of    income    or       from operations.
      expenditure which exceeds
      one per cent of the revenue
      from       operations    or
      Rs.10,00,000, whichever is
      higher.

14.   Other income shall be             Other income mentions the details regarding the
      classified as-                    following:
        (a) interest Income ;           (a) Net gain/(loss) on ineffective portion of hedges
        (b) dividend Income; and        (b) Net gain/(loss) on de-recognition of property, plant
        (c) other      non-operating         and equipment
            income       (net      of   (c) Net gain or loss on foreign currency transaction and
            expenses         directly        translation (other than considered as finance cost)(
            attributable to such             to be specified)
            income).                    (d) Others ( to be specified, depending upon the
                                             percentage of the total income)

15.   Since, consolidated financial     In cases of consolidated financial statements that
      statements does not contain       contains elements pertaining to NBFCs and other than
      elements    pertaining     to     NBFCs, mixed basis of presentation may be followed
      NBFC's, no such disclosure        for consolidated financial statements where both kinds
      needed                            of operations are significant.


                                    168
GN on Division III - Ind AS Schedule III to the Companies Act 2013

16.   No such disclosure required A separate disclosure under `receivables' is required for
      under `receivables'         any debts due from any Limited Liability Partnership
                                  (LLP) in which its director is a partner or member.

17.   Companies are required to NBFCs are required to disclose items comprising
      disclose items comprising `revenue from operations' and `other comprehensive
      `revenue from operations' income' on the face of the statement of profit and loss.
      and `other comprehensive
      income' as part of the notes.




                                  169
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI



                                                               Annexure C
___________________________________________________________

Illustrative list of disclosures required under the Companies Act 2013
1.    Section 69 - Transfer of certain sums to capital redemption
reserve account.
Where a company purchases its own shares out of free reserves or securities
premium account, a sum equal to the nominal value of the shares so
purchased shall be transferred to the capital redemption reserve account and
details of such transfer shall be disclosed in the balance sheet.
2.     Section 129 - Financial Statements
( 5) Without prejudice to sub-section ( 1), where the Financial Statements
of a company do not comply with the accounting standards referred to in sub -
section (1), the company shall disclose in its Financial Statements, the
deviation from the accounting standards, the reasons for such deviation and
the financial effects, if any, arising out of such deviation.
3.   Section 131 - Voluntary revision of Financial Statements or
Board's report
( 1) If it appears to the directors of a company that--
( a) the Financial Statements of the company; or
( b) the report of the Board, do not comply with the provisions of section 129
or section 134 they may prepare revised Financial Statements or a revised
report in respect of any of the three preceding financial years after obtaining
approval of the Tribunal on an application made by the company in such form
and manner as may be prescribed and a copy of the order passed by the
Tribunal shall be filed with the Registrar:
Provided that the Tribunal shall give notice to the Central Government and
the Income tax authorities and shall take into consideration the
representations, if any, made by that Government or the authorities before
passing any order under this section:
Provided further that such revised Financial Statements or report shall not be
prepared or filed more than once in a financial year:
Provided also that the detailed reasons for revision of such Financial
GN on Division III - Ind AS Schedule III to the Companies Act 2013

Statements or report shall also be disclosed in the Board's report in the
relevant financial year in which such revision is being made.
4.   Section 135 - Corporate Social Responsibility
(2) The Board's report under sub-section (3) of section 134 shall disclose
the composition of the Corporate Social Responsibility Committee.
5.    Section 182 - Prohibitions and restrictions regarding political
contributions (as amended)
( 3) Every company shall disclose in its profit and loss account the total
amount contributed by it under this section during the financial year to which
the account relates.
6.    Section 183 - Power of Board and other persons to make
contributions to national defence fund, etc.
( 2) Every company shall disclose in its profit and loss account the total
amount or amounts contributed by it to the Fund referred to in sub -section (1)
during the financial year to which the amount relates.
7.    Section 186 - Loan and investment by company
( 4) The company shall disclose to the members in the Financial
Statements the full particulars of the loans given, investment made or
guarantee given or security provided and the purpose for which the loan or
guarantee or security is proposed to be utilised by the recipient of the loan or
guarantee or security.
8.    Section 272 - Petition for winding up
( 4) The Registrar shall be entitled to present a petition for winding up
under subsection ( 1) on any of the grounds specified in sub-section ( 1) of
section 271, except on the grounds specified in clause ( b), clause (d) or
clause ( g) of that sub-section:
Provided that the Registrar shall not present a petition on the ground that the
company is unable to pay its debts unless it appears to him either from the
financial condition of the company as disclosed in its balance sheet or from
the report of an inspector appointed under section 210 that the company is
unable to pay its debts:
Provided further that the Registrar shall obtain the previous sanction of the
Central Government to the presentation of a petition:
Provided also that the Central Government shall not accord its sanction
unless the company has been given a reasonable opportunity of making
                                   171
GN on Division III - Ind AS Schedule III to the Companies Act 2013

representations.




                               172
Exposure Draft of Revised Guidance Note on Division III to Schedule III to the
Companies Act, 2013 for NBSC that is required to comply with Ind AS by Corporate
Laws & Corporate Governance Committee ICAI



                                                               Annexure D
___________________________________________________________

List of Indian Accounting Standards notified as on date:
Ind AS          Description
Ind AS 101      First-time Adoption of Indian Accounting Standards
Ind AS 102      Share-based Payment
Ind AS 103      Business Combinations
Ind AS 104      Insurance Contracts
Ind AS 105      Non-current Assets Held for Sale and Discontinued
                Operations
Ind AS 106      Exploration for and Evaluation of Mineral Resources
Ind AS 107      Financial Instruments: Disclosures
Ind AS 108      Operating Segments
Ind AS 109      Financial Instruments
Ind AS 110      Consolidated Financial Statements
Ind AS 111      Joint Arrangements
Ind AS 112      Disclosure of Interests in Other Entities
Ind AS 113      Fair Value Measurement
Ind AS 114      Regulatory Deferral Accounts
Ind AS 115      Revenue from Contracts with Customers
Ind AS 1        Presentation of Financial Statements
Ind AS 2        Inventories
Ind AS 7        Statement of Cash Flows
Ind AS 8        Accounting Policies, Changes in Accounting Estimates and
                Errors
Ind AS 10       Events after the Reporting Period
Ind AS 11       Construction Contracts
GN on Division III - Ind AS Schedule III to the Companies Act 2013

Ind AS 12     Income Taxes
Ind AS 16     Property, Plant and Equipment
Ind AS 17     Leases
Ind AS 19     Employee Benefits
Ind AS 20     Accounting for Government Grants and Disclosure of
              Government Assistance
Ind AS 21     The Effects of Changes in Foreign Exchange Rates
Ind AS 23     Borrowing Costs
Ind AS 24     Related Party Disclosures
Ind AS 27     Separate Financial Statements
Ind AS 28     Investments in Associates and Joint Ventures
Ind AS 29     Financial Reporting in Hyperinflationary Economies
Ind AS 32     Financial Instruments: Presentation
Ind AS 33     Earnings per Share
Ind AS 34     Interim Financial Reporting
Ind AS 36     Impairment of Assets
Ind AS 37     Provisions, Contingent Liabilities and Contingent Assets
Ind AS 38     Intangible Assets
Ind AS 40     Investment Property
Ind AS 41     Agriculture




                                  174
GN on Division II - Ind AS Schedule III to the Companies Act 2013



                                                            Annexure E

          General Circular No. 39/2014 dated: 14 th October, 2014
To
All Regional Directors,
All registrars of Companies,
All Stakeholders
Subject: Clarification on matters relating to Consolidated Financial
Statements.
Sir,
Government has received representations from stakeholders seeking
clarifications on the manner of presentation of notes in Consolidated
Financial Statements (CFS) to be prepared under Schedule III to the Act.
These representations have been examined in consultation with the Institute
of Chartered Accountants of India (ICAI) and it is clarified that Schedule III to
the Act read with the applicable Accounting Standards does not envisage
that a company while preparing its CFS merely repeats the disclosures made
by it under stand-alone accounts being consolidated. In the CFS, the
company would need to give all disclosures relevant for CFS only.
2.     This issues with the approval of the competent authority




                                    175
                                                     Glossary
Act                   The Companies Act, 2013
Ind AS Schedule III   Division II to Ind AS Schedule III
Ind AS                Indian Accounting Standards
Companies Ind AS      Companies Ind AS Rules, 2015 as amended from
Rules                 time to time
Ind AS Framework      Framework for the preparation and presentation
                      of Financial Statements in accordance with Indian
                      Accounting Standards
Non Ind AS            Accounting Standards
Companies AS Rules    Companies Accounting Standards Rules, 2006 as
                      amended from time to time
FVTPL                 Fair Value through Profit or Loss
FVOCI                 Fair Value through other Comprehensive Income
SEBI                  Securities and Exchange Board of India
SEBI (LODR)           SEBI (Listing Obligations and Disclosure
                      Requirements) Regulations, 2015
GAAP                  Generally Accepted Accounting Principles
MSMED                 The Micro, Small and Medium Enterprises
                      Development Act, 2006
CENVAT                Central Value Added Tax
GST                   Goods and Services Tax
MAT                   Minimum Alternate Tax
CFS / SFS             Consolidated Financial Statements / Standalone
                      Financial Statements

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