Schedule III

(See section 129)

GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET AND

STATEMENT OF PROFIT AND LOSS OF A COMPANY

GENERAL INSTRUCTIONS

1. Where compliance with the requirements of the Act including Accounting Standards

as applicable to the companies 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 of this Schedule shall stand modified accordingly.

2. The disclosure requirements specified in this Schedule are in addition to and not in

substitution of the disclosure requirements specified in the Accounting Standards prescribed

under the Companies Act, 2013. Additional disclosures specified in the Accounting Standards

shall be made in the notes to accounts or by way of additional statement unless required to

be disclosed on the face of the Financial Statements. Similarly, all other disclosures as

required by the Companies Act shall be made in the notes to accounts in addition to the

requirements set out in this Schedule.

3. (i) Notes to accounts shall contain information in addition to that presented in the

Financial Statements and shall provide where required (a) narrative descriptions or

disaggregations of items recognised in those statements; and (b) information about items

that do not qualify for recognition in those statements.

(ii) Each item on the face of the Balance Sheet and Statement of Profit and Loss shall

be cross-referenced to any related information in the notes to accounts. In preparing the

Financial Statements including the notes to accounts, a balance shall be maintained between

providing excessive detail that may not assist users of financial statements and not providing

important information as a result of too much aggregation.

4. (i) Depending upon the turnover of the company, the figures appearing in the

Financial Statements may be rounded off as given below:—

Turnover

Rounding off

(a) less than one hundred crore rupees

To the nearest hundreds, thousands, lakhs

or millions, or decimals thereof.

(b) one hundred crore rupees or more

To the nearest lakhs, millions or crores, or

decimals thereof.

(ii) Once a unit of measurement is used, it shall be used uniformly in the Financial

Statements.

5. Except in the case of the first Financial Statements laid before the Company (after its

incorporation) the corresponding amounts (comparatives) for the immediately preceding

reporting period for all items shown in the Financial Statements including notes shall also be

given.

6. For the purpose of this Schedule, the terms used herein shall be as per the applicable

Accounting Standards.

Note:—This part of Schedule sets out the minimum requirements for disclosure on the face

of the Balance Sheet, and the Statement of Profit and Loss (hereinafter referred to as

“Financial Statements” for the purpose of this Schedule) and Notes. Line items,

sub-line items and sub-totals shall be presented as an addition or substitution on

the face of the Financial Statements when such presentation is relevant to an

understanding of the company’s financial position or performance or to cater to

industry/sector-specific disclosure requirements or when required for compliance

with the amendments to the Companies Act or under the Accounting Standards.

PART I — BALANCE SHEET

Name of the Company…………………….

Balance Sheet as at ………………………

(Rupees in…………)

Particulars

Note No.

Figures as at the end of current reporting period

Figures as at the end of the previous reporting period

1

2

3

4

I. EQUITY AND LIABILITIES

(1) Shareholders’ funds

(a) Share capital

(b) Reserves and surplus

(c) Money received against share

warrants

(2) Share application money pending

allotment

(3) Non-current liabilities

(a) Long-term borrowings

(b) Deferred tax liabilities (Net)

(c) Other Long term liabilities

(d) Long-term provisions

(4) Current liabilities

(a) Short-term borrowings

(b) Trade payables

(c) Other current liabilities

(d) Short-term provisions

TOTAL

II. ASSETS

Non-current assets

(1)        (a) Fixed assets

(i) Tangible assets

(ii) Intangible assets

(iii) Capital work-in-progress

(iv) Intangible assets under

development

(b) Non-current investments

(c) Deferred tax assets (net)

(d) Long-term loans and advances

(e) Other non-current assets

(2) Current assets

(a) Current investments

(b) Inventories

(c) Trade receivables

(d) Cash and cash equivalents

(e) Short-term loans and advances

(f) Other current assets

                                         TOTAL

See accompanying notes to the Financial Statements.

Notes

GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET

1. An asset shall be classified as current when it satisfies any of the following criteria:—

(a) it is expected to be realised in, or is intended for sale or consumption in, the

company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or

used to settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

2. An operating cycle is the time between the acquisition of assets for processing and

their realisation in cash or cash equivalents. Where the normal operating cycle cannot be

identified, it is assumed to have a duration of twelve months.

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

(a) it is expected to be settled in the company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date; or

(d) the company does not have an unconditional right to defer settlement of the

liability for at least twelve months after the reporting date. Terms of a liability that

could, at the option of the counterparty, result in its settlement by the issue of equity

instruments do not affect its classification.

All other liabilities shall be classified as non-current.

4. A receivable shall be classified as a “trade receivable” if it is in respect of the amount

due on account of goods sold or services rendered in the normal course of business.

5. A payable shall be classified as a “trade payable” if it is in respect of the amount due

on account of goods purchased or services received in the normal course of business.

6. A company shall disclose the following in the notes to accounts.

A. Share Capital

For each class of share capital (different classes of preference shares to be

treated separately):

(a) the number and amount of shares authorised;

(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 reporting period;

(e) the rights, preferences and restrictions attaching to each class of shares

including restrictions on the distribution of dividends and the repayment of

capital;

(f) shares in respect of each class in the company held by its holding

company or its ultimate holding company including shares held by or by

subsidiaries or associates of the holding company or the ultimate holding

company in aggregate;

(g) shares in the company held by each shareholder holding more than

5 per cent. shares specifying the number of shares held;

(h) shares reserved for issue under options and contracts/commitments

for the sale of shares/disinvestment, including the terms and amounts;

(i) for the period of five years immediately preceding the date as at which

the Balance Sheet is prepared:

(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.

(j) 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;

(k) calls unpaid (showing aggregate value of calls unpaid by directors and

officers);

(l) forfeited shares (amount originally paid-up).

B. Reserves and Surplus

(i) Reserves and Surplus shall be classified as:

(a) Capital Reserves;

(b) Capital Redemption Reserve;

(c) Securities Premium Reserve;

(d) Debenture Redemption Reserve;

(e) Revaluation Reserve;

(f) Share Options Outstanding Account;

(g) Other Reserves–(specify the nature and purpose of each reserve and

the amount in respect thereof);

(h) Surplus i.e., balance in Statement of Profit and Loss disclosing

allocations and appropriations such as dividend, bonus shares and transfer to/

from reserves, etc.;

(Additions and deductions since last balance sheet to be shown under

each of the specified heads);

(ii) A reserve specifically 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.

C. Long-Term Borrowings

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

(a) Bonds/debentures;

(b) Term loans:

(A) from banks.

(B) from other parties.

(c) Deferred payment liabilities;

(d) Deposits;

(e) Loans and advances from related parties;

(f) Long term maturities of finance lease obligations;

(g) Other loans and advances (specify nature).

(ii) Borrowings shall further be sub-classified as secured and unsecured. Nature

of security shall be specified separately in each case.

(iii) Where loans have been guaranteed by directors or others, the aggregate

amount of such loans under each head shall be disclosed.

(iv) Bonds/debentures (along with the rate of interest and particulars of

redemption or conversion, as the case may be) shall be stated in descending order of

maturity or conversion, starting from farthest redemption or conversion date, as the

case may be. Where bonds/debentures are redeemable by instalments, the date of

maturity for this purpose must be reckoned as the date on which the first instalment

becomes due.

(v) Particulars of any redeemed bonds/debentures which the company has power

to reissue shall be disclosed.

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

(vii) Period and amount of continuing default as on the balance sheet date in

repayment of loans and interest, shall be specified separately in each case.

D. Other Long-term Liabilities

Other Long-term Liabilities shall be classified as:

(a) Trade payables;

(b) Others.

E. Long-term provisions

The amounts shall be classified as:

(a) Provision for employee benefits;

(b) Others (specify nature).

F. Short-term borrowings

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

(a) Loans repayable on demand;

(A) from banks.

(B) from other parties.

(b) Loans and advances from related parties;

(c) Deposits;

(d) Other loans and advances (specify nature).

(ii) Borrowings shall further be sub-classified as secured and unsecured. Nature

of security shall be specified separately in each case.

(iii) Where loans have been guaranteed by directors or others, the aggregate

amount of such loans under each head shall be disclosed.

(iv) Period and amount of default as on the balance sheet date in repayment of

loans and interest, shall be specified separately in each case.

G. Other current liabilities

The amounts shall be classified as:

(a) Current maturities of long-term debt;

(b) Current maturities of finance lease obligations;

(c) Interest accrued but not due on borrowings;

(d) Interest accrued and due on borrowings;

(e) Income received in advance;

(f) Unpaid dividends;

(g) Application money received for allotment of securities and due for

refund and interest accrued thereon. Share application money includes advances

towards allotment of share capital. The terms and conditions including the number

of shares proposed to be issued, the amount of 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

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 “Óther current liabilities”;

(h) Unpaid matured deposits and interest accrued thereon;

(i) Unpaid matured debentures and interest accrued thereon;

(j) Other payables (specify nature).

H. Short-term provisions

The amounts shall be classified as:

(a) Provision for employee benefits.

(b) Others (specify nature).

I. Tangible assets

(i) Classification shall be given as:

(a) Land;

(b) Buildings;

(c) Plant and Equipment;

(d) Furniture and Fixtures;

(e) Vehicles;

(f) Office equipment;

(g) Others (specify nature).

(ii) Assets under lease shall be separately specified under each class of asset.

(iii) A reconciliation of the gross and net carrying amounts of each class of

assets at the beginning and end of the reporting period showing additions, disposals,

acquisitions through business combinations and other adjustments and the related

depreciation and impairment losses/reversals shall be disclosed separately.

(iv) Where sums have been 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.

J. Intangible assets

(i) Classification shall be given as:

(a) Goodwill;

(b) Brands /trademarks;

(c) Computer software;

(d) Mastheads and publishing titles;

(e) Mining rights;

(f) Copyrights, and patents and other intellectual property rights, services

and operating rights;

(g) Recipes, formulae, models, designs and prototypes;

(h) Licences and franchise;

(i) Others (specify nature).

(ii) A reconciliation of the gross and net carrying amounts of each class of

assets at the beginning and end of the reporting period showing additions, disposals,

acquisitions through business combinations and other adjustments and the related

amortization and impairment losses/reversals shall be disclosed separately.

(iii) Where sums have been 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.

K. Non-current investments

(i) Non-current investments shall be classified as trade investments and other

investments and further classified as:

(a) Investment property;

(b) Investments in Equity Instruments;

(c) Investments in preference shares;

(d) Investments in Government or trust securities;

(e) Investments in debentures or bonds;

(f) Investments in Mutual Funds;

(g) Investments in partnership firms;

(h) Other non-current investments (specify nature).

Under each classification, details shall be given of names of the bodies corporate

indicating separately whether such bodies are (i) subsidiaries, (ii) associates,

(iii) joint ventures, or (iv) controlled special purpose entities in whom investments

have been made and the nature and extent of the investment so made in each such

body corporate (showing separately investments which are partly-paid). In regard to

investments in the capital of partnership firms, the names of the firms (with the names

of all their partners, total capital and the shares of each partner) shall be given.

(ii) Investments carried at other than at cost should be separately stated specifying

the basis for valuation thereof;

(iii) The following shall also be disclosed:

(a) Aggregate amount of quoted investments and market value thereof;

(b) Aggregate amount of unquoted investments;

(c) Aggregate provision for diminution in value of investments.

L. Long-term loans and advances

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

(a) Capital Advances;

(b) Security Deposits;

(c) Loans and advances to related parties (giving details thereof);

(d) Other loans and advances (specify nature).

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

(a) Secured, considered good;

(b) Unsecured, considered good;

(c) Doubtful.

(iii) Allowance for bad and doubtful loans and advances shall be disclosed

under the relevant heads separately.

(iv) Loans and advances due by directors or other officers of the company or

any of them either severally or jointly with any other persons or amounts due by firms

or private companies respectively in which any director is a partner or a director or a

member should be separately stated.

M. Other non-current assets

Other non-current assets shall be classified as:

(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) (a) Secured, considered good;

(B) Unsecured, considered good;

(C) Doubtful.

(b) Allowance for bad and doubtful debts shall be disclosed under

the relevant heads separately.

(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.

N. Current Investments

(i) Current investments shall be classified as:

(a) Investments in Equity Instruments;

(b) Investment in Preference Shares;

(c) Investments in Government or trust securities;

(d) Investments in debentures or bonds;

(e) Investments in Mutual Funds;

(f) Investments in partnership firms;

(g) Other investments (specify nature).

Under each classification, details shall be given of names of the bodies corporate

[indicating separately whether such bodies are: (i) subsidiaries, (ii) associates,

(iii) joint ventures, or (iv) controlled special purpose entities] in whom investments

have been made and the nature and extent of the investment so made in each such

body corporate (showing separately investments which are partly paid). In regard to

investments in the capital of partnership firms, the names of the firms (with the names

of all their partners, total capital and the shares of each partner) shall be given.

(ii) The following shall also be disclosed:

(a) The basis of valuation of individual investments;

(b) Aggregate amount of quoted investments and market value thereof;

(c) Aggregate amount of unquoted investments;

(d) Aggregate provision made for diminution in value of investments.

O. Inventories

(i) Inventories shall be classified as:

(a) Raw materials;

(b) Work-in-progress;

(c) Finished goods;

(d) Stock-in-trade (in respect of goods acquired for trading);

(e) Stores and spares;

(f) Loose tools;

(g) Others (specify nature).

(ii) Goods-in-transit shall be disclosed under the relevant sub-head of inventories.

(iii) Mode of valuation shall be stated.

P. Trade Receivables

(i) Aggregate amount of Trade Receivables outstanding for a period exceeding

six months from the date they are due for payment should be separately stated.

(ii) Trade receivables shall be sub-classified as:

(a) Secured, considered good;

(b) Unsecured, considered good;

(c) Doubtful.

(iii) Allowance for bad and doubtful debts shall be disclosed under the relevant

heads separately.

(iv) Debts due by directors or other officers of the company or any of them

either severally or jointly with any other person or debts due by firms or private

companies respectively in which any director is a partner or a director or a member

should be separately stated.

Q. Cash and cash equivalents

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

(a) Balances with banks;

(b) Cheques, drafts on hand;

(c) Cash on hand;

(d) Others (specify nature).

(ii) Earmarked balances with banks (for example, for unpaid dividend) shall be

separately stated.

(iii) Balances with banks to the extent held as margin money or security against

the borrowings, guarantees, other commitments shall be disclosed separately.

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

be separately stated.

(v) Bank deposits with more than twelve months maturity shall be disclosed

separately.

R. Short-term loans and advances

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

(a) Loans and advances to related parties (giving details thereof);

(b) Others (specify nature).

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

(a) Secured, considered good;

(b) Unsecured, considered good;

(c) Doubtful.

(iii) Allowance for bad and doubtful loans and advances shall be disclosed

under the relevant heads separately.

(iv) Loans and advances due by directors or other officers of the company or

any of them either severally or jointly with any other person or amounts due by firms

or private companies respectively in which any director is a partner or a director or a

member shall be separately stated.

S. Other current assets (specify nature)

This is an all-inclusive heading, which incorporates current assets that do not fit

into any other asset categories.

T. Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities shall be classified as:

(a) Claims against the company not acknowledged as debt;

(b) Guarantees;

(c) Other money for which the company is contingently liable.

(ii) Commitments shall be classified as:

(a) Estimated amount of contracts remaining to be executed on capital

account and not provided for;

(b) Uncalled liability on shares and other investments partly paid;

(c) Other commitments (specify nature).

U. 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 preference shares shall also be

disclosed separately.

V. 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 unutilised amounts have

been used or invested.

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 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.

PART II – STATEMENT OF PROFIT AND LOSS

Name of the Company…………………….

Profit and loss statement for the year ended ………………………

(Rupees in…………)

 

Particulars

Note No.

Figures as at the end of current reporting period

Figures as at the end of the previous reporting period

 

1

2

3

4

I

Revenue from operations

 

xxx

xxx

II

Other income

 

xxx

xxx

III

Total Revenue (I + II)

 

xxx

xxx

IV

Expenses:

Cost of materials consumed

 

Purchases of Stock-in-Trade

 

Changes in inventories of finished goods work-in-progress and Stock-in-Trade

 

Employee benefits expense Finance costs

 

Depreciation and amortization expense

 

Other expenses

 

Total expenses

 

 

Xxx

 

Xxx

 

Xxx

 

 

 

xxx

 

Xxx

 

Xxx

 

Xxx

 

 

 

Xxx

 

V

Profit before exceptional and extraordinary items and tax (III - IV)

 

xxx

xxx

VI

Exceptional items

 

xxx

xxx

VII

Profit before extraordinary items and tax (V - VI)

 

xxx

xxx

VIII

Extraordinary items

 

xxx

xxx

IX

Profit before tax (VII- VIII)

 

xxx

xxx

X

Tax expense:

(1) Current tax

(2) Deferred tax

 

 

Xxx

Xxx

 

Xxx

Xxx

XI

Profit (Loss) for the period from continuing operations (VII-VIII)

 

xxx

xxx

XII

Profit/(loss) from discontinuing operations

 

xxx

xxx

XIII

Tax expense of discontinuing operations

 

xxx

xxx

XIV

Profit/(loss) from Discontinuing operations (after tax) (XII-XIII)

 

xxx

xxx

XV

Profit (Loss) for the period (XI + XIV)

 

xxx

xxx

XVI

Earnings per equity share:

(1) Basic

(2) Diluted

 

 

Xxx

xxx

 

Xxx

xxx

See accompanying notes to the financial statements.

GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF

PROFIT AND LOSS

1. The provisions of this Part shall apply to the income and expenditure account

referred to in sub-clause (ii) of clause (40) of section 2 in like manner as they apply to a

statement of profit and loss.

2. (A) In respect of a company other than a finance company revenue from operations

shall disclose separately in the notes revenue from—

(a) Sale of products;

(b) Sale of services;

(c) Other operating revenues;

Less:

(d) Excise duty.

(B) In respect of a finance company, revenue from operations shall include revenue

from—

(a) Interest; and

(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.

3. Finance Costs

Finance costs shall be classified as:

(a) Interest expense;

(b) Other borrowing costs;

(c) Applicable net gain/loss on foreign currency transactions and translation.

4. Other income

Other income shall be classified as:

(a) Interest Income (in case of a company other than a finance company);

(b) Dividend Income;

(c) Net gain/loss on sale of investments;

(d) Other non-operating income (net of expenses directly attributable

to such income).

5. Additional Information

A Company shall disclose by way of notes additional information regarding aggregate

expenditure and income on the following items:—

(i) (a) Employee Benefits Expense [showing separately (i) salaries and wages,

(ii) contribution to provident and other funds, (iii) expense on Employee Stock Option

Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses].

(b) Depreciation and amortisation expense;

(c) Any item of income or expenditure which exceeds one per cent. of the revenue

from operations or Rs.1,00,000, whichever is higher;

(d) Interest Income;

(e) Interest expense;

(f) Dividend income;

(g) Net gain/loss on sale of investments;

(h) Adjustments to the carrying amount of investments;

(i) Net gain or loss on foreign currency transaction and translation (other than

considered as finance cost);

(j) Payments to the auditor as (a) auditor; (b) for taxation matters; (c) for company

law matters; (d) for management services; (e) for other services; and (f) for

reimbursement of expenses;

(k) In case of Companies covered under section 135, amount of expenditure

incurred on corporate social responsibility activities;

(l) Details of items of exceptional and extraordinary nature;

(m) Prior period items;

(ii) (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, 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.

(iii) In the case of all concerns having works in progress, works-in-progress

under broad heads.

(iv) (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 commitment 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.

(v) (a) The aggregate, if material, of the amounts set aside to provisions made for

meeting specific liabilities, contingencies or commitments.

(b) The aggregate, if material, of the amounts withdrawn from such provisions,

as no longer required.

(vi) 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,

(vii) (a) Dividends from subsidiary companies.

(b) Provisions for losses of subsidiary companies.

(viii) 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;

(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;

IV. Other income, indicating the nature thereof.

Note:— Broad heads shall be decided taking into account the concept of materiality and

presentation of true and fair view of financial statements.

GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED

FINANCIAL STATEMENTS

1. Where a company is required to prepare Consolidated Financial Statements, i.e.,

consolidated balance sheet and consolidated statement of profit and loss, the company shall

mutatis mutandis follow the requirements of this Schedule as applicable to a company in the

preparation of balance sheet and statement of profit and loss. In addition, the consolidated

financial statements shall disclose the information as per the requirements specified in the

applicable Accounting Standards including the following:

(i) Profit or loss attributable to “minority interest” and to owners of the parent in

the statement of profit and loss shall be presented as allocation for the period.

(ii) “Minority interests” in the balance sheet within equity shall be presented

separately from the equity of the owners of the parent.

2. In Consolidated Financial Statements, the following shall be disclosed by way of

additional information:

Name of the entity in the

Net Assets, i.e., total assets minus total liabilities

Share in profit or loss

 

As % of consolidated net assets

Amount

As % of consolidated profit or loss

Amount

1

2

3

4

5

Parent

Subsidiaries

Indian

1.

2.

3.

.

.

Foreign

1.

2.

3.

.

.

Minority

Interests in

all subsidiaries

Associates

(Investment

as per the equity

method)

Indian

1.

2.

3.

.

.

Foreign

1.

2.

3.

.

.

Joint Ventures

(as per proportionate

consolidation/

investment

as per the

equity method)

Indian

1.

2.

3.

.

.

Foreign

1.

2.

3.

.

.

TOTAL

 

3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be

covered under consolidated financial statements.

4. An entity shall disclose the list of subsidiaries or associates or joint ventures which

have not been consolidated in the consolidated financial statements along with the reasons

of not consolidating.