Ministry of
Finance and Company Affairs
Department of
Company Affairs
5th
Floor, "A" Wing, Shastri Bhavan,
Dr. Rajendra
Prasad Road, New Delhi-110 001.
Dated
25th April, 2003
All Registrar of Companies
Subject:- Rounding off figures in
the Profit and Loss Account.
Sir,
Attention is drawn to Notification No. G.S.R. 545(E) dated 1st
August, 2002 whereby the figures in the balance sheet were permitted to be
rounded off to the nearest hundreds, thousands, lakhs, millions, or crores, or
decimals thereof.
2.
Doubts have been raised about the applicability of this notification to
the profit and loss account also.
As balance sheet and profit and loss accounts are forming part of annual
accounts of a company prepared under Schedule VI, it is clarified that, by
implication, the simplified procedure, as notified, may also apply to profit and
loss accounts. Only then will it be
of benefit to readers of these accounts, by being consistent across both the
balance sheet and profit & loss account.
Yours
faithfully,
(E.
Selvaraj)
Joint Director (T)