valid as on 20/10/2019

Section 129. Financial statement
Effective from 01-04-2014

Regulation 33,52 of LODR

(1) The  shall give a true and fair view of the state of affairs of the  or companies, comply with the   notified under section 133 and shall be in the form or forms as may be provided for different class or classes of companies in :

Provided that the items contained in such financial statements shall be in accordance with the accounting standards:

Provided further that nothing contained in this sub-section shall apply to any insurance or or any company engaged in the generation or supply of electricity, or to any other class of company for which a form of financial statement has been specified in or under the Act governing such class of company:

Provided also that the financial statements shall not be treated as not disclosing a true and fair view of the state of affairs of the company, merely by reason of the fact that they do not disclose—-

(a) in the case of an insurance company, any matters which are not required to be disclosed by the Insurance Act, 1938, or the Insurance Regulatory and Development Authority Act, 1999;

(b) in the case of a banking company, any matters which are not required to be disclosed by the Banking Regulation Act, 1949;

(c) in the case of a company engaged in the generation or supply of electricity, any matters which are not required to be disclosed by the Electricity Act, 2003;

(d) in the case of a company governed by any other law for the time being in force, any matters which are not required to be disclosed by that law.

(2) At every annual general meeting of a company, the  of the company shall lay before such meeting financial statements for the

(3) Where a company has one or more , it shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the company and of all the subsidiaries in the same as that of its own which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub-section (2):

Provided that the company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries in such form :

Provided further that the Central Government may provide for the consolidation of accounts of companies in such manner .

Explanation.—For the purposes of this sub-section, the word “subsidiary” shall include associate company and joint venture.

Where a company has one or more subsidiaries or , it shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the company and of all the subsidiaries and associate companies in the same form and manner as that of its own and in accordance with applicable accounting standards, which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub-section (2):

the company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its  or subsidiaries and associate companies or companies in such form as may be prescribed:

the Central Government may provide for the consolidation of accounts of companies in such manner as may be prescribed.

(4) The provisions of this Act applicable to the preparation, adoption and audit of the financial statements of a  shall, mutatis mutandis, apply to the consolidated financial statements referred to in sub-section (3).

(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.

(6) The Central Government may, on its own or on an application by a class or classes of companies, by , exempt any  from complying with any of the requirements of this section or the rules made thereunder, if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification.

(7) If a company contravenes the provisions of this section, the , the in charge of finance, the  or any other person charged by the Board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above, all the directors shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

Explanation.—For the purposes of this section, except where the context otherwise requires, any reference to the financial statement shall include any notes annexed to or forming part of such financial statement, giving information required to be given and allowed to be given in the form of such notes under this Act.

In case of Government Company, Section 129 shall not apply to companies engaged in defence production to the extent of application of relevant Accounting Standard on segment reporting. Exemption notification dated 05.06.2015 is substituted vide notification dated 23.02.2018 To view the notification,Click Here

In case of Government Company, Section 129 shall not apply to the extent of application of Accounting Standard 17 (Segment Reporting) to the companies engaged in defence production vide GSR 463(E) dated 5th June, 2015.

(The exceptions, modifications and adaptations provided above shall be applicable only to those Government Companies which has not committed a default in filing its financial statements under section 137 of the said act or annual return under section 92 of the said act with the registrar, vide notification dated 13th June, 2017)

To view the notification,Click Here

2(40) Financial Statement in relation to a company, includes—

(i) a balance sheet as at the end of the financial year;

(ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year;

(iii) cash flow statement for the financial year;

(iv) a statement of changes in equity, if applicable; and

(v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv):

Provided that the financial statement, with respect to one person company, small company, dormant company and private company (if such private company is a start-up)may  not include the cash flow statement;

Explanation. – For the purposes of this Act, the term ‘start-up’ or “start-up company” means a private company incorporated under the Companies Act, 2013 (18 of 2013) or the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

2(20) Company means a company incorporated under this Act or under any previous company law
2(2) Accounting Standards means the standards of accounting or any addendum thereto for companies or class of companies referred to in section 133.
To view the schedule,Click Here
2(9)  Banking Company means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)
2(10) Board of Directors, in relation to a company, means the collective body of the directors of the company
2(41) Financial Year, in relation to any company or body corporate, means the period ending on the 31st day of March every year, and where it has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up:

Provided that on an application made by a company or body corporate, which is a holding company or a subsidiary or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Tribunal may, if it is satisfied, allow any period as its financial year, whether or not that period is a year:

Provided further that a company or body corporate, existing on the commencement of this Act, shall, within a period of two years from such commencement, align its financial year as per the provisions of this clause

Provided also that in case of a Specified IFSC public company, which is a subsidiary of a foreign company, the financial year of the subsidiary may be same as the financial year of its holding company and approval of the Tribunal shall not be required.

Provided also that in case of a Specified IFSC private company, which is a subsidiary of a foreign company, the financial year of the subsidiary may be same as the financial year of its holding company and approval of the Tribunal shall not be required.

2(87)  Subsidiary , in relation to any other company (that is to say the holding company), means a company in which the holding company—

(i) controls the composition of the Board of Directors; or

(ii) exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies:

Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed.(Not notified)

Explanation.—For the purposes of this clause,—

(a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company;

(b) the composition of a company’s Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors;

(c) the expression “company” includes any body corporate;

(d) “layer” in relation to a holding company means its subsidiary or subsidiaries

Refer Rule 6- Companies (Accounts) Rules,2014 and General Circular No. 39-2014.To view the rule,Click Here
Refer Rule 5 of The Companies (Accounts)Rules,2014.To view the rule,Click Here
Refer Rule 6 of The Companies (Accounts)Rules,2014.To view the rule,Click Here
Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018, effective from 07.05.2018. To view commencement notification,Click Here

To view the notification of Companies Amendment Act,2017 Click Here

2(6) Associate Company, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.
Explanation.—For the purpose of this clause—
(a) the expression “significant influence” means control of at least twenty per cent. of total voting power, or control of or participation in business decisions under an agreement;
(b) the expression “joint venture” means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement;
Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018, effective from 07.05.2018. To view commencement notification,Click Here

To view the notification of Companies Amendment Act,2017 Click Here

2(87) Subsidiary Company or Subsidiary, in relation to any other company (that is to say the holding company), means a company in which the holding company—

(i) controls the composition of the Board of Directors; or

(ii) exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiary companies:

Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers  as may be prescribed.

Explanation.—For the purposes of this clause,—

(a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company;

(b) the composition of a company’s Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors;

(c) the expression “company” includes any body corporate;

(d) “layer” in relation to a holding company means its subsidiary or subsidiaries.

Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018, effective from 07.05.2018. To view commencement notification,Click Here

To view the notification of Companies Amendment Act,2017 Click Here

2(46) Holding Company, in relation to one or more other companies, means a company of which such companies are subsidiary companies.

Explanation.- For the purposes of this clause, the expression “company” includes any body corporate;

2(58) Notification means a notification published in the Official Gazette and the expression “notify” shall be construed accordingly
The Notification dated 05.02.2018 is amended to omit the restriction of seven years vide notification dated 02.04.2018. To view the Notification, Click Here

The provisions of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability shall not apply, for seven years with effect from the 1st April, 2017, to a Government company which:—
(a) is a public financial institution under sub-clause (iv) of clause (72) of section 2 of the Companies Act, 2013;
(b) is a Non-Banking Financial Company registered with the Reserve Bank of India under section 45-IA of the Reserve bank of India Act, 1934; and
(c) is engaged in the business of infrastructure finance leasing with not less than seventy five per cent. of its total revenue being generated from such business with Government companies or other entities owned or controlled by Government vide notification dated 05.02.2018. To view the Notification, Click Here

2(54) Managing Director means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, by whatever name called.

Explanation.—For the purposes of this clause, the power to do administrative acts of a routine nature when so authorised by the Board such as the power to affix the common seal of the company to any document or to draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, shall not be deemed to be included within the substantial powers of management.

2(94) Whole-time director” includes a director in the whole-time employment of the company
2(19) Chief Financial Officer means a person appointed as the Chief Financial Officer of a company

9.1.5-Companies (Accounts) Rules,2014

5.Form of Statement containing salient features of financial statements of subsidiaries.-

The statement containing the salient feature of the financial statement of a company’s subsidiary or subsidiaries,  or companies and joint venture or ventures under the first proviso to sub-section (3) of section 129 shall be in 

2(6) Associate Company, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.
Explanation.—For the purpose of this clause—
(a) the expression “significant influence” means control of at least twenty per cent. of total voting power, or control of or participation in business decisions under an agreement;
(b) the expression “joint venture” means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement;
To view the return,Click Here

9.1.6- Companies (Accounts) Rules,2014

6. Manner of consolidation of accounts.-

The consolidation of financial statements of the company shall be made in accordance with the provisions of Schedule III of the Act and the applicable accounting standards:

Provided that in case of a company covered under sub-section (3) of section 129 which is not required to prepare consolidated financial statements under the Accounting Standards, it shall be sufficient if the company complies with provisions on consolidated financial statements provided in Schedule III of the Act.

that nothing in this rule shall apply in respect of preparation of consolidated financial statements by a company if it meets the following conditions:-

(i) it is a wholly-owned subsidiary, or is a partially-owned subsidiary of another company and all its other members, including those not otherwise entitled to vote, having been intimated in writing and for which the proof of delivery of such intimation is available with the company, do not object to the company not presenting consolidated financial statements;

(ii) it is a company whose securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India and

(iii) its ultimate or any intermediate holding company files consolidated financial statements with the Registrar which are in compliance with the applicable Accounting Standards.

also that nothing in this rules shall apply in respect of consolidation of financial statement by a company having subsidiary or subsidiaries incorporated outside India only for the financial year commencing on or after 1st April, 2014

Inserted vide  notification dated 27.07.2016,  the Companies (Accounts) Amendment Rules, 2016. To view the notification,Click Here
 Companies (Accounts) Amendment Rules, 2015. To view the notification,Click Here

GSR 723 E


[(SO 990 E) Companies (Auditors Report ) Order,2015] Suppressed by Companies (Auditor’s Report) Order, 2016


Companies (Removal of Difficulties) Third Order, 2016 [S.O. 2264 (E)] dated 30/06/2016


Amendment to Schedule III [GSR 308(E) dated 30/03/2017


Amendment to schedule III notification dated 06/04/2016


Commencement Notification dated 07/05/2018


Companies (Accounts) Amendment Rules, 2015 [GSR 37(E)] dated 16/01/2015


Companies (Accounts) Amendment Rules, 2016 [GSR 742(E)] dated 27/07/2016


Enforcement Notification S.O. 902(E) dated 26/03/2014


Exemption Notification for Government Companies dated 5.02.2018


Exemption Notification on Segment Reporting for Government Companies dated 23.02.2018


Exemption to Govt Companies G.S.R. 463(E) dated 05/06/2015


Exemptions to Government Companies [Amendment to GSR 463(E)] dated 13/06/2017


Notification amending exemption notification dated 05.02.2018


Notification on amendments to Schedule III of the Companies Act, 2013 dated 11.10.2018


The Companies (Amendment) Act, 2017 (Effective from 03.01.2018)


General Circular 08/2014


General Circular 39/2014


Form AOC-1


Schedule III

Schedule III
(See section 129)

Financial Statements for a company whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006.

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 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 counter party, 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   ;

(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 of that opinion, shall be stated.

Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016 as provided in the Table below:-

SBNs Other denomination
notes
Total
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016

Explanation : For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016

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 Stockin-Trade

Employee benefits expense Financecosts

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
VII 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

operation

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 consolidates 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.

Financial Statements for a company whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.

GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY REQUIRED TO COMPLY WITH Ind AS

1. Every company 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 the Act including Indian Accounting Standards (except the option of presenting assets and liabilities in the order of liquidity as provided by the relevant Ind AS) 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 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 the 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.

(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 detail that may not assist users of Financial Statements and not providing important information as a result of too much aggregation.

5. Depending upon the turnover of the companies the figures appearing in the Financial Statements shall be rounded off as below:

Turnover

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 laid before the company 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 or Regulation requires specific disclosures to be made in the standalone financial statements of a company, the said disclosures shall be made in addition to those required under this Schedule.

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 company financial position or performance  or to cater to industry or sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act, 2013 or under the Indian Accounting Standards.

PART I –BALANCE SHEET

Name of the Company….

Balance Sheet as at…

(Rupees in…..)

Particulars

Note No. Figures as at the of current reporting period

 

Figures as at the end of the previous reporting period
1 2 3

4

ASSETS

1.Non-current assets

a) Property, Plant and Equipment

(b) Capital work-in-progress

(c) lnvestment Property

(d) Goodwill

(e) Other Intangible assets

(f) Intangible assets under development

(g) Biological Assets other than bearer plants

(h) FinancialAssets

(i) Investments

(ii) Trade receivables

(iii) Loans

(iv) Others (to be specified)

(i) Deferred tax assets (net)

j) Other non-current assets

2. Current assets

(a) Inventories

(b) Financial Assets

(i) Investrnents

(ii) Trade receivables

(iii) Cash and cash equivalents

(iv) Bank balances other than (iii) above

(v) Loans

(vi) Others (to be specified)

(c) Current Tax Assets (Net)

(d) Other cufrent assets

TOTAL ASSETS

EQUITY AND LIABILITIES

Equity

(a) Equity Share capital

(b) Other Equity

LIABILITIES

1.Non-current liabilities

(a) Financial Liabilities

(i) Borrowings

(ii)  Trade payables

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

2.Current liabilities

(a) Financial Liabilities

(i) Borrowings

(ii)  Trade payables

(iii) Other financial liabilities (other than those specified in item (c)

(b) Other current liabilities

(c) Provisions

(d) Current Tax Liabilities (Net)

Total Equity and Liabilities

See accompanying notes to the financial Statements

STATEMENTS OF CHANGES IN EQUITY

Name of the Company………….

Statement of changes in Equity for the period ended……..

(Rupees in……….)

A. Equity share capital

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

B. Other Equity

Share application money pending allotment Equity component of compound financial instruments Reserves and Surplus Debt instruments through other comprehensive income Equity instrument through other comprehensive instrument Effective portion of cash flow hedges Revaluation of surplus Exchange difference on translating the financial statements of a foreign operation Other items of other comprehensive income (specify nature) Money received against share warrants Total
Balance at the beginning of reporting period
Changes in accounting policy or prior period errors
Restated balance at the beginning of the reporting period
Total comprehensive income for the year
Income for the year
Dividends
Transfer to retained earnings
Any other change (to be specified)
Balance at the end of the year

Note: GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET

  1. An entity shall classify an asset as current when-    

(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;

(b) it holds the asset primarily for the purpose of trading;

(c) it expects to realise the asset within twelve months after the reporting period; or

(d) the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

An entity shall classify all other assets as non-current.

2. The operating cycle of an entity is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. When the entity’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

3. An entity shall classify a liability as current when-

(a) it expects to settle the liability in its normal operating cycle;

(b) it holds the liability primarily for the purpose of trading;

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

(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. 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.

An entity shall classify all other liabilities 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:

A. Non-Current Assets

I. Property, Plant and Equipment :

(i) Classification shall be given as:

a) Land

b) Buildings

c) Plant and Equipment

d) Furniture and Fixtures

e) Vehicles

f) Office equipment

g) Bearer Plants

h) Others (specify nature)

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

(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.

II. 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.

III.  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.

IV. Other Intangible assets:

(i) Classification shall be given as:

(a) Brands or trademarks

(b) Computer software

(c) Mastheads and publishing titles

(d) Mining rights copyrights, patents, other intellectual property rights, services and operating rights

(e) Recipes, formulae, models, designs and prototypes

(g) Licence and franchises

(h) other (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.

V. 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.

VI. Investments:

(i) Investments shall be classified as

(a) Investments in Equity Instruments;

(b) Investments in Preference Shares;

(c) Investments in Government or trust securities;

(d) Investments in debentures or bonds;

(e) Investments in Mutual Funds;

(f) Investments in partnership firms; or

(g) Other investments (specify nature).

Under each classification, details shall be given of names of the bodies corporate that are- (i) subsidiaries,

(ii) associates,

(iii) joint ventures, or

(iv) structured entities,

in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). Investments in partnership firms along with names of the firms, their partners, total capital and the shares of each partner shall be disclosed separately.

(ii) The following shall also be disclosed:

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

(b) Aggregate amount of unquoted investments; and

(c) Aggregate amount of impairment in value of investments.

VII. Trade Receivables:

Trade Receivables shall be sub-classified as:

(a) Trade Receivables considered good – Secured;

(b) Trade Receivables considered good – Unsecured;

(c) Trade Receivables which have significant increase in Credit Risk; and

(d) Trade Receivables – credit impaired.

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

(a) Secured, considered good;

(b) Unsecured considered good; and

(c) Doubtful.

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

(iii) 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.

VIII.  Loans:

(i) Loans shall be classified as-

(a) Security Deposits;

(b) Loans to related parties (giving details thereof); and

(c) Other loans (specify nature).

   Loans Receivables shall be sub-classified as:

(a) Loans Receivables considered good – Secured;

(b) Loans Receivables considered good – Unsecured;

(c) Loans Receivables which have significant increase in Credit Risk; and

(d) Loans Receivables – credit impaired,

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

(a) Secured, considered good;

(b) Unsecured, considered good; and

(c) Doubtful.

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

(iv) Loans 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.

IX. Bank deposits with more than 12 months maturity shall be disclosed under ‘Other financial assets’;

X. Other non-current assets:

Other non-current assets shall be classified as-

      (i) Capital Advances; and

     (ii) Advances other than capital advances;

                   (1) Advances other than capital advances shall be classified as:

                            (a) Security DePosits;

                            (b) Advances to related parties (giving details thereof); and

                            (c) Other advances (specify nature).

                   (2) Advances to directors or other officers of the company or any of them either severally or jointly with any other persons 0r advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated, in case advances are of the nature of a financial asset as per relevant Ind AS, these are to be disclosed under ‘other financial assets’ separately.

     (iii) Others (specify nature).

 B. Current Assets

I. Inventories:

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; and

(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.

II. Investments:

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; and

(g) Other investments (specify nature).

Under each classification, details shall be given of names of the bodies corporate that are- (i) subsidiaries,

(ii) associates,

(iii) joint ventures, or

(iv) structured entities

in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid).

(ii) The following shall also be disclosed:

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

         (b) Aggregate amount of unquoted investments;

         (c) Aggregate amount of impairment in value of investments,

III. Trade Receivables:

Trade Receivables shall be sub-classified as:

(a) Trade Receivables considered good – Secured;

(b) Trade Receivables considered good – Unsecured;

(c) Trade Receivables which have significant increase in Credit Risk; and

(d) Trade Receivables – credit impaired.

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

(a) Secured, considered good;

(b) Unsecured considered good; and

(c) Doubtful.

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

(iii) 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.

IV. Cash and cash equivalents:

Cash and cash equivalents shall be classified as-

a. Balances with Banks (of the nature of cash and cash equivalents);

b. Cheques, drafts on hand;

c. Cash on hand; and

d. Others (specify nature).

V. Loans

(i) Loans shall be classified as:

     (a) Security deposits;

    (b) Loans to related parties (giving details thereof); and

    (c) others (specify nature).

  Loans Receivables shall be sub-classified as:

(a) Loans Receivables considered good – Secured;

(b) Loans Receivables considered good – Unsecured;

(c) Loans Receivables which have significant increase in Credit Risk; and

(d) Loans Receivables – credit impaired

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

     (a) Secured, considered good;

     (b) Unsecured, considered good; and

     (c) Doubtful.

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

(iv) Loans 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.

VI. Other current assets (specify nature): This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories. Other current assets shall be classified as-

 (i) Advances other than capital advances

             (1) Advances other than capital advances shall be classified as:

                   (a) Security Deposits;

                   (b) Advances to related parties (giving details thereof;

                   (c) Other advances (specify nature).

            (2) Advances to 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.

(ii) Others (specify nature)

C. Cash and Bank balances:

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

(a) Earmarked balances with banks (for example. 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.

D. Equity

I.  Equity Share Capital:

For each class of equity share capital:

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

(h) shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts;

(i) for the period of five years immediately preceding the date at which the Balance Sheet is prepared-

  • 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)

(i) forfeited shares (amount originally paid up).

II. Other Equity

‘Other Reserves’ shall be classified in the notes as-

(a) Capital Redemption Reserve;

(b) Debenture Redemption Reserve;

(c) Share Options Outstanding Account; and

(d) 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; 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; and

(v) Under the sub-head ‘Other Equity’, disclosure shall be made for the nature and amount of each item.

E. Non-Current Liabilities

I. Borrowings:

(i) borrowings shall be classified as-

(a) Bonds or debentures

(b) Term loans

(I) from banks

(lI) from other Parties

(c) Deferred payment liabilities

(d) Deposits

(e) Loans from related Parties

(f) Long term maturities of finance lease obligations

(g) Liability component of compound financial instruments

(h) Other loans (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 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, stating from farthest redemption or conversion date, as the case may be, where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due;

(v) particulars of any redeemed bonds or debentures which the company has power to reissue shall be disclosed;

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

(vii) period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case.

III. Provisions:

The amounts shall be classified as-

(a) Provision for employee benefits; and

(b) Others (specify nature).

IV. Other current liabilities:

(a) Advances; and

(b) Others (specify nature).

F. Current Liabilities

I. Borrowings:

(i) Borrowings shall be classified as-

(a) Loans repayable on demand

(I) from banks

(II) from other parties

(b) Loans from related parties

(c) Deposits

(d) Other loans (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 borrowings and interest, shall be specified separately in each case.

II. Other Financial Liabilities:

Other Financial liabilities shall be classified as-

(a) Current maturities of long-term debt;

(b) Current maturities of finance lease obligations;

(c) Interest accrued;

(d) Unpaid dividends

(e) Application money received for allotment of securities to the extent refundable and interest accrued thereon;

(f) Unpaid matured deposits and interest accrued thereon;

(g) Unpaid matured debentures and interest accrued thereon; and

(h) Others (specify nature).

‘Long term debt’ is a borrowing having a period of more than twelve months at the time of origination.

III. Other current liabilities:

The amounts shall be classified as

(a) revenue received in advance;

(b) other advances (specify nature);

(c) and others (specify nature);

IV.  Provisions: The amounts shall be classified as-

(i) provision for employee benefits; and

(ii) others (specify nature).


The following details relating to micro, small and medium enterprises shall be disclosed in the notes:-

(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 (27 of 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 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 as assigned to them under clauses (b), (d), (e), (h), (m) and ( n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.

G. 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).

H. 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; and

(c) other commitments (specify nature).

I. 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.

J.  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 unutilised amounts have been used or invested.

Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016 as provided in the Table below:-

SBNs Other denomination notesTotal
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016

Explanation : For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

7. When a company applies an accounting policy retrospectively or makes a restatement of items in the financial statements or when it reclassifies items in its financial statements, the company shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the earliest comparative period presented.

8. 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’.

9. 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 thas regard applicable to the relevant class of equity or liability shall be applicable mutatis mutandis to the preference shares. For instance,   redeemable preference shares shall be classified and presented under ‘non-current liabilities’ as ‘borrowings’ and the disclosure requirements in this regard applicable to such borrowings shall be applicable mutatis mutandis to redeemable preference shares.

10. Compound financial instruments such as convertible debentures, where split into equity and liability components, as per the requirements of the relevant Indian Accounting Standards, shall be classified and presented under the relevant heads in ‘Equity’ and ‘Liabilities’.

11. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian Accounting Standards.

PART II – STATEMENT OF PROFIT AND LOSS

Name of the Company…………………….

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

(Rupees in …………….)

Particulars Note No.   Figure for current reporting period   Figures for the previous reporting period
I. Revenue from operations
II. Other Income
III. Total Income (I + II)
IV. EXPENSES

Cost of Material Consumed

Purchase of stock in trade
Changes in inventories of finished goods, stock in trade and work in progress
Employee benefit expense
Finance Costs
Depreciation and amortization expense
Other expenses
Total Expenses IV
V. Profit/(loss) before exceptional

items or tax (I-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 of continuing operation (VII-VIII)
X. Profit/(loss) from discontinued operations
XI. Tax expense for discontinued operation
XII. Profit/(loss) from discontinued operations (after tax)  (X-XI)
XIII. Profit/(loss) for the period (IX+XII)
XIV. Other comprehensive income

A (i) Items that will not be reclassified to profit or loss

(ii) Income tax relating to items

 

B (i) that will not be reclassified to

profit or loss

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

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 operation):

(1) Basic

(2) Diluted

XVII. Earnings per equity share (for

discontinued operation):

(1) Basic

(2) Diluted

XVIII. Earnings per equity share (for discontinued and continuing operations

(1)    Basic

(2)    Diluted

See accompanying notes to the financial statements

NOTEs:

GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS

  1. The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss.
  2. The Statement of Profit and Loss shall include:

(1) Proflt of loss for the Period;

(2) Other comprehensive Income for the period.

The sum of (1) and (2) above is ‘Total Comprehensive Income’.

3. Revenue from operations shall disclose separately in the notes

(a) sale of products (including Excise Duty);

(b) sale of services; and

(c) other operating revenues.

4.  Finance Costs: Finance costs shall be classified as-

(a) interest;

(b) dividend on redeemable preference shares;

(c) exchange differences regarded as an adjustment to borrowing costs; and

(d) other borrowing costs (specify nature).

5. Other income: other income shall be classified as-

(a) interest Income;

(b) dividend Income; and

(c) other non-operating income (net of expenses directly attributable to such income).

6. Other Comprehensive Income shall be classified into-

(A) Items that will not be reclassified to profit or loss

(i) Changes in revaluation surplus;

(ii) Remeasurements of the defined benefit plans;

(iii) Equity Instruments through Other Comprehensive Income;

(iv) Fair value changes relating to own credit risk of financial liabilities designated at fair value 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)

7. Additional Information: A Company shall disclose by way of notes, additional information regarding aggregate expenditure and income on the following items:

(a) employee Benefits expense [showing separately

(i) salaries and wages,

(ii) contribution to provident and other funds,

(iii) share based payments to employees,

(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.10,00,000, whichever is higher, in addition to the consideration of ‘materiality’ as specified in clause 7 of the General Instructions for Preparation of Financial Statements of a Company,

(d) interest Income;

(e) interest Expense;

(f) dividend income;

(g) net gain or loss on sale of investments;

(h) net gain or loss on foreign currency transaction and translation (other than considered as finance cost);

(i) 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; 0) in case of companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities; and

(k) details of items of exceptional nature; 8. Changes in Regulatory Deferral Account Balances shall be presented in the Statement of Profit and Loss in accordance with the relevant Indian Accounting Standards.

PART III . GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

1. Where a company is required to prepare Consolidated Financial Statements, i.e,, consolidated balance sheet, consolidated statement of changes in equity and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of this Schedule as applicable to a company in the preparation of balance sheet, statement of changes in equity and statement of profit and loss in addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable 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.

2. In consolidated financial statements, the following shall be disclosed by way of additional information:

Name of the entity in the group Net assets i.e. total assets minus liabilities Share in profit or loss Share in other comprehensive income Share in total comprehensive income
As % of consolidated assets Amount As % of consolidated profit or loss Amount As % of other consolidated comprehensive income Amount As % of total comprehensive income Amount
Parent

 

Subsidiaries

Indian

1.

2.

3.

Foreign

1.

2.

3.

Non-Controlling interests in all subsidiaries

 

Associates (Investments as per the equity method)

Indian

1.

2.

3.

Foreign

1.

2.

3.

Joint Ventures (Investments as per 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 reason of not consolidating.


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 NONBANKING 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 par t 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.

(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 IncomeRounding off
(i) less than one hundred crore rupeesTo the nearest hundreds, thousands, lakhs or millions, or decimals thereof.
(ii) one hundred crore rupees or moreTo 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.

PART I –BALANCE SHEET

Name of the Non-Banking Financial Company…………………….
Balance Sheet as at ………………………

(Rupees in…………)

ParticularsNote
No.
Figures as at the end of current reporting periodFigures as at the end of the previous reporting period
123
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
(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)
(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 f or the period ended ……………………

(Rupees in……………..)

A. Equity Share Capital

Balance at the beginning of the reporting periodChanges in equity share capital during the yearBalance at the end of the reporting period
XXXXXXXXX

B. Other Equity

Reserves and Surplus
Share application
money pending
allotment
Equity component of compound financial instrumentsStatutory ReservesCapital ReserveSecurities PremiumOther Reserves
(specify nature)
Retained EarningsDebt instruments
through Other
Comprehensive Income
Equity Instruments
through Other
Comprehensive
Income
Effective portion of
Cash Flow Hedges
Revaluation SurplusExchange differences on translating the financial statements of
a foreign operation
Other items of
Other Comprehensive Income (specify
nature)
Money received
against share
warrants
Total
Balance at the
beginning of the
reporting period
Changes in
accounting
policy/prior period
errors
Restated balance at the beginning of
the reporting period
Total Comprehensive
Income for the
year
Dividends
Transfer to
retained earnings
Any other change
(to be specified)
Balance at the end
of the reporting period

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 the Notes.
(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 INotional amountsFair Value - AssetsFair Value - LiabilitiesNotional amountsFair Value - AssetsFair Value - Liabilities
(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)
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
- 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)
Amortised
cost
At Fair ValueSubtotalTotalAmortised
cost
At Fair ValueSubtotalTotal
Through Other
Comprehensive
Income
Through profit
or loss
Designated at
fair value through
profit or loss
Through Other
Comprehensive
Income
Through profit or lossDesignated at fair
value through
profit or 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
Total (A)
- Net
(B)
(i) Secured
by tangible
assets
(ii)Secure
d by intangible
assets
(iii)
Covered by
Bank/Government
Guarantees
(iii)
Covered by
Bank/Government
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
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
InvestmentsAmortised
cost
At Fair ValueSub-TotalOthers*TotalAmortised costAt Fair ValueSub-TotalOthers*Total
Through Other Comprehensive
Income
Through
profit or loss
Designated
at fair value
through profit
or loss
Through Other
Comprehensive
Income
Through
profit or loss
Designated at
fair value through
profit or loss
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 loss (C)
Total – Net
D= (A)-(C)
* Other basis of measurement such as cost may be explained as a footnote

(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)

(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 Amortised CostAt Fair Value Through
profit or loss
Designated at fair
value through
profit or loss
TotalAt Amortised CostAt Fair Value Through profit or lossDesignated
at fair value
through profit or
loss
Total
(1)(2)(3)(4)=(1)+(2)+(3)(5)(6)(7)(8)=(5)+(6)+(7)
Liability
component
of compound financial
instruments
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 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 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.

(M) Borrowings (Other than Debt Securities)

(Current Year)(Previous Year)
At Amortised CostAt fair value
Through profit or loss
Designated at fair value through
profit or loss
TotalAt Amortised CostAt fair value
Through profit or
loss
Designated
at fair value through
profit or loss
Total
(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
(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.

(N) Deposits

(Current Year)(Previous Year)
At Amortised CostAt fair value
through profit or loss
Designated at fair
value through
profit or loss
TotalAt Amortised CostAt fair value
through profit or
loss
Designated at fair
value through
profit or loss
Total
(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 CostAt fair value through profit or lossDesignated at fair
value through
profit or loss
TotalAt Amortised CostAt fair value
through profit or loss
Designated at fair value through profit or lossTotal
(1)(2)(3)(4)=(1)+(2)+(3)(5)(6)(7)(8)=(5)+(6)+(7)
Perpetual Debt
Instruments to the 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;
(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 classified as-

(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;
(i) For the period of five years immediately preceding the date at which the Balance Sheet is prepared:

  • 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

(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 t he
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’.

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.

PART II – STATEMENT OF PROFIT AND LOSS

Name of the Non-Banking Financial Company…………………….
Statement of Prof it and Loss f or the period ended ………………………

(Rupees in ……………..)

ParticularsNote No.Figures for the
current reporting
period
Figures for the
previous reporting
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
(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-intrade
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
(A) (i) Items that will not be reclassified to profit or loss
(specify items and amounts)
(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;
(B) Other Comprehensive Income for the period.
The sum of (A) and (B) above is ‘Total Comprehensive Income’.

3. Interest Income

Particulars(Current Year)(Previous Year)
On Financial
Assets measured at fair value through OCI
On Financial
Assets measured at Amortised
Cost
Interest Income
on Financial Assets classified
at fair value through profit or loss
On
Financial
Assets
measured
at fair value through OCI
On Financial
Assets measured at Amortised Cost
Interest Income
on Financial
Assets classified
at fair value through profit or 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)
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 Financial
liabilities measured at
fair value through
profit or loss
On Financial
liabilities
measured at
Amortised Cost
On Financial liabilities
measured at fair value
through profit or loss
On Financial
liabilities
measured at Amortised
Cost
Interest on deposits
Interest on borrowings
Interest on debt securities
Interest on subordinated
liabilities
Other interest expense
Total

7. Employee Benefits Expenses

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

Particulars(Current Year)(Previous Year)
On Financial
instruments
measured at fair
value through OCI
On Financial
instruments
measured at
Amortised
Cost
On Financial
instruments
measured at
fair value
through OCI
On Financial
instruments
measured at
Amortised
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 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

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 alloc at ion 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.

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

Name of the
entity in the
Group
Net Assets, i.e., total assets minus total
liabilities
Share in profit or lossShare in other
comprehensive income
Share in total
comprehensive
income
As % of
consolidated
net assets
AmountAs % of
consolidated
profit or loss
AmountAs % of
consolidated other
comprehensive
income
AmountAs % of
total
comprehensive
income
Amount
Parent

Subsidiaries

Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Non-controlling
Interests in all
subsidiaries
Associates
(Investment as
per the equity
method)

Indian
1.
2.
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.

 

Substituted vide notification date 06.04.2016.To view the notification,Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Omitted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Inserted vide Notification GSR 308 (E) dated 30.03.2017. To view the notification,Click Here
Inserted vide notification date 06.04.2016.To view the notification,Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification,Click Here
Substituted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Inserted vide amendment notification dated 11.10.2018. To view the Notification, Click Here
Inserted vide Notification GSR 308 (E) dated 30.03.2017. To view the notification,Click Here
Inser

ted vide amendment notification dated 11.10.2018. To view the Notification, Click Here

Inserted vide amendment notification dated 11.10.2018. To view the Notification, Click Here

CAIRR PLUS on Google Playsecretarial automation?Subscribe for Updates