The Ministry Of Corporate Affairs, Government of India, issued notification dated 24th March, 2021 to amend Schedule III of the Companies Act, 2013 to enhance the disclosures required to be made by the company in its Financial Statement.
The amendments shall be applicable on Companies for Financial Year start on or after 1st April, 2021 i.e, Financial Year 2021-22. Schedule III of The Companies Act, 2013 provides the framework for preparing Financial Statements such as the Balance Sheet and the Statement of Profit & Loss of the Company.
Schedule III divided into three parts:
· DIVISION I
Financial Statements for a company whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006.
· DIVISION II
Financial Statements for a company whose Financial Statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.
· DIVISION III
Financial Statements for a Non-Banking Financial Company (NBFC) whose Financial Statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.
Basic Instruction for preparation of Balance Sheet:
Rounding Off:
Depending upon the Turnover of the Company, the figures appearing in the Financial
Statements may be rounded off as given below:
TOTAL INCOME
ROUNDING OFF
(a) Less Than One Hundred Crore Rupees To the nearest hundreds, thousands, lakhs, millions, or decimals thereof.
(b) One Hundred Crore Rupees or more To the nearest lakhs, millions, or decimals thereof.
There are also important changes in Financial Statements relating to Promoters Details, trade receivables/ payables, Fixed Assets, Disclosures relating to Loans / Advances, Corporate Social Responsibility, Ratio Analysis etc.
For more clarification on the amendments, we have drafted the amended Financial Statements as per the current changes in Schedule III for the beneficial of all the professionals.
Hereby, enclosing the excel formal of the amended financial statement for the Companies falls under:
Division I i.e Financial Statements for a company whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006.
Division II i.e Financial Statements for a company whose Financial Statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.