You are on page 1of 18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

ScheduleIII
(Seesection129)
GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEETAND
STATEMENTOFPROFITANDLOSSOFACOMPANY
GENERALINSTRUCTIONS
1.WherecompliancewiththerequirementsoftheActincludingAccountingStandards
asapplicabletothecompaniesrequireanychangeintreatmentordisclosureincluding
addition,amendment,substitutionordeletionintheheadorsubheadoranychanges,
interse,inthefinancialstatementsorstatementsformingpartthereof,thesameshallbe
madeandtherequirementsofthisScheduleshallstandmodifiedaccordingly.
2.ThedisclosurerequirementsspecifiedinthisScheduleareinadditiontoandnotin
substitutionofthedisclosurerequirementsspecifiedintheAccountingStandardsprescribed
undertheCompaniesAct,2013.AdditionaldisclosuresspecifiedintheAccountingStandards
shallbemadeinthenotestoaccountsorbywayofadditionalstatementunlessrequiredto
bedisclosedonthefaceoftheFinancialStatements.Similarly,allotherdisclosuresas
requiredbytheCompaniesActshallbemadeinthenotestoaccountsinadditiontothe
requirementssetoutinthisSchedule.
3.(i)Notestoaccountsshallcontaininformationinadditiontothatpresentedinthe
FinancialStatementsandshallprovidewhererequired(a)narrativedescriptionsor
disaggregationsofitemsrecognisedinthosestatementsand(b)informationaboutitems
thatdonotqualifyforrecognitioninthosestatements.
(ii)EachitemonthefaceoftheBalanceSheetandStatementofProfitandLossshall
becrossreferencedtoanyrelatedinformationinthenotestoaccounts.Inpreparingthe
FinancialStatementsincludingthenotestoaccounts,abalanceshallbemaintainedbetween
providingexcessivedetailthatmaynotassistusersoffinancialstatementsandnotproviding
importantinformationasaresultoftoomuchaggregation.
4.(i)Dependingupontheturnoverofthecompany,thefiguresappearinginthe
FinancialStatementsmayberoundedoffasgivenbelow:
Turnover
Roundingoff
(a)lessthanonehundredcrorerupees Tothenearesthundreds,thousands,lakhs
ormillions,ordecimalsthereof.
(b)onehundredcrorerupeesormore Tothenearestlakhs,millionsorcrores,or
decimalsthereof.
(ii)Onceaunitofmeasurementisused,itshallbeuseduniformlyintheFinancial
Statements.
5.ExceptinthecaseofthefirstFinancialStatementslaidbeforetheCompany(afterits
incorporation)thecorrespondingamounts(comparatives)fortheimmediatelypreceding
reportingperiodforallitemsshownintheFinancialStatementsincludingnotesshallalsobe
given.
6.ForthepurposeofthisSchedule,thetermsusedhereinshallbeaspertheapplicable
http://www.mca.gov.in/SearchableActs/Schedule3.htm

1/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

AccountingStandards.
Note:ThispartofSchedulesetsouttheminimumrequirementsfordisclosureontheface
oftheBalanceSheet,andtheStatementofProfitandLoss(hereinafterreferredtoas
FinancialStatementsforthepurposeofthisSchedule)andNotes.Lineitems,
sublineitemsandsubtotalsshallbepresentedasanadditionorsubstitutionon
thefaceoftheFinancialStatementswhensuchpresentationisrelevanttoan
understandingofthecompanysfinancialpositionorperformanceortocaterto
industry/sectorspecificdisclosurerequirementsorwhenrequiredforcompliance
withtheamendmentstotheCompaniesActorundertheAccountingStandards.
PARTIBALANCESHEET
NameoftheCompany.
BalanceSheetasat
(Rupeesin)

Particulars

NoteNo.

Figuresasattheend
ofcurrentreporting
period

Figuresasattheend
oftheprevious
reportingperiod

I.EQUITYANDLIABILITIES
(1)Shareholdersfunds
(a)Sharecapital
(b)Reservesandsurplus
(c)Moneyreceivedagainstshare
warrants
(2)Shareapplicationmoneypending
allotment
(3)Noncurrentliabilities
(a)Longtermborrowings
(b)Deferredtaxliabilities(Net)
(c)OtherLongtermliabilities
(d)Longtermprovisions
(4)Currentliabilities
(a)Shorttermborrowings
(b)Tradepayables
(c)Othercurrentliabilities
(d)Shorttermprovisions
TOTAL
II.ASSETS
Noncurrentassets
(1)(a)Fixedassets
(i)Tangibleassets
http://www.mca.gov.in/SearchableActs/Schedule3.htm

2/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(ii)Intangibleassets
(iii)Capitalworkinprogress
(iv)Intangibleassetsunder
development
(b)Noncurrentinvestments
(c)Deferredtaxassets(net)
(d)Longtermloansandadvances
(e)Othernoncurrentassets
(2)Currentassets
(a)Currentinvestments
(b)Inventories
(c)Tradereceivables
(d)Cashandcashequivalents
(e)Shorttermloansandadvances
(f)Othercurrentassets
TOTAL
SeeaccompanyingnotestotheFinancialStatements.

Notes
GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
1.Anassetshallbeclassifiedascurrentwhenitsatisfiesanyofthefollowingcriteria:
(a)itisexpectedtoberealisedin,orisintendedforsaleorconsumptionin,the
companysnormaloperatingcycle
(b)itisheldprimarilyforthepurposeofbeingtraded
(c)itisexpectedtoberealisedwithintwelvemonthsafterthereportingdateor
(d)itiscashorcashequivalentunlessitisrestrictedfrombeingexchangedor
usedtosettlealiabilityforatleasttwelvemonthsafterthereportingdate.
Allotherassetsshallbeclassifiedasnoncurrent.
2.Anoperatingcycleisthetimebetweentheacquisitionofassetsforprocessingand
theirrealisationincashorcashequivalents.Wherethenormaloperatingcyclecannotbe
identified,itisassumedtohaveadurationoftwelvemonths.
3.Aliabilityshallbeclassifiedascurrentwhenitsatisfiesanyofthefollowingcriteria:
(a)itisexpectedtobesettledinthecompanysnormaloperatingcycle
(b)itisheldprimarilyforthepurposeofbeingtraded
(c)itisduetobesettledwithintwelvemonthsafterthereportingdateor
(d)thecompanydoesnothaveanunconditionalrighttodefersettlementofthe
liabilityforatleasttwelvemonthsafterthereportingdate.Termsofaliabilitythat
could,attheoptionofthecounterparty,resultinitssettlementbytheissueofequity
instrumentsdonotaffectitsclassification.
Allotherliabilitiesshallbeclassifiedasnoncurrent.
4.Areceivableshallbeclassifiedasatradereceivableifitisinrespectoftheamount
http://www.mca.gov.in/SearchableActs/Schedule3.htm

3/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

dueonaccountofgoodssoldorservicesrenderedinthenormalcourseofbusiness.
5.Apayableshallbeclassifiedasatradepayableifitisinrespectoftheamountdue
onaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusiness.
6.Acompanyshalldisclosethefollowinginthenotestoaccounts.
A.ShareCapital
Foreachclassofsharecapital(differentclassesofpreferencesharestobe
treatedseparately):
(a)thenumberandamountofsharesauthorised
(b)thenumberofsharesissued,subscribedandfullypaid,andsubscribed
butnotfullypaid
(c)parvaluepershare
(d)areconciliationofthenumberofsharesoutstandingatthebeginning
andattheendofthereportingperiod
(e)therights,preferencesandrestrictionsattachingtoeachclassofshares
includingrestrictionsonthedistributionofdividendsandtherepaymentof
capital
(f)sharesinrespectofeachclassinthecompanyheldbyitsholding
companyoritsultimateholdingcompanyincludingsharesheldbyorby
subsidiariesorassociatesoftheholdingcompanyortheultimateholding
companyinaggregate
(g)sharesinthecompanyheldbyeachshareholderholdingmorethan
5percent.sharesspecifyingthenumberofsharesheld
(h)sharesreservedforissueunderoptionsandcontracts/commitments
forthesaleofshares/disinvestment,includingthetermsandamounts
(i)fortheperiodoffiveyearsimmediatelyprecedingthedateasatwhich
theBalanceSheetisprepared:
(A)Aggregatenumberandclassofsharesallottedasfullypaidup
pursuanttocontract(s)withoutpaymentbeingreceivedincash.
(B)Aggregatenumberandclassofsharesallottedasfullypaidup
bywayofbonusshares.
(C)Aggregatenumberandclassofsharesboughtback.
(j)termsofanysecuritiesconvertibleintoequity/preferencesharesissued
alongwiththeearliestdateofconversionindescendingorderstartingfromthe
farthestsuchdate
(k)callsunpaid(showingaggregatevalueofcallsunpaidbydirectorsand
officers)
(l)forfeitedshares(amountoriginallypaidup).
B.ReservesandSurplus
(i)ReservesandSurplusshallbeclassifiedas:
(a)CapitalReserves
http://www.mca.gov.in/SearchableActs/Schedule3.htm

4/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(b)CapitalRedemptionReserve
(c)SecuritiesPremiumReserve
(d)DebentureRedemptionReserve
(e)RevaluationReserve
(f)ShareOptionsOutstandingAccount
(g)OtherReserves(specifythenatureandpurposeofeachreserveand
theamountinrespectthereof)
(h)Surplusi.e.,balanceinStatementofProfitandLossdisclosing
allocationsandappropriationssuchasdividend,bonussharesandtransferto/
fromreserves,etc.
(Additionsanddeductionssincelastbalancesheettobeshownunder
eachofthespecifiedheads)
(ii)Areservespecificallyrepresentedbyearmarkedinvestmentsshallbetermed
asafund.
(iii)Debitbalanceofstatementofprofitandlossshallbeshownasanegative
figureundertheheadSurplus.Similarly,thebalanceofReservesandSurplus,
afteradjustingnegativebalanceofsurplus,ifany,shallbeshownunderthehead
ReservesandSurpluseveniftheresultingfigureisinthenegative.
C.LongTermBorrowings
(i)Longtermborrowingsshallbeclassifiedas:
(a)Bonds/debentures
(b)Termloans:
(A)frombanks.
(B)fromotherparties.
(c)Deferredpaymentliabilities
(d)Deposits
(e)Loansandadvancesfromrelatedparties
(f)Longtermmaturitiesoffinanceleaseobligations
(g)Otherloansandadvances(specifynature).
(ii)Borrowingsshallfurtherbesubclassifiedassecuredandunsecured.Nature
ofsecurityshallbespecifiedseparatelyineachcase.
(iii)Whereloanshavebeenguaranteedbydirectorsorothers,theaggregate
amountofsuchloansundereachheadshallbedisclosed.
(iv)Bonds/debentures(alongwiththerateofinterestandparticularsof
redemptionorconversion,asthecasemaybe)shallbestatedindescendingorderof
maturityorconversion,startingfromfarthestredemptionorconversiondate,asthe
casemaybe.Wherebonds/debenturesareredeemablebyinstalments,thedateof
maturityforthispurposemustbereckonedasthedateonwhichthefirstinstalment
becomesdue.
(v)Particularsofanyredeemedbonds/debentureswhichthecompanyhaspower
http://www.mca.gov.in/SearchableActs/Schedule3.htm

5/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

toreissueshallbedisclosed.
(vi)Termsofrepaymentoftermloansandotherloansshallbestated.
(vii)Periodandamountofcontinuingdefaultasonthebalancesheetdatein
repaymentofloansandinterest,shallbespecifiedseparatelyineachcase.
D.OtherLongtermLiabilities
OtherLongtermLiabilitiesshallbeclassifiedas:
(a)Tradepayables
(b)Others.
E.Longtermprovisions
Theamountsshallbeclassifiedas:
(a)Provisionforemployeebenefits
(b)Others(specifynature).
F.Shorttermborrowings
(i)Shorttermborrowingsshallbeclassifiedas:
(a)Loansrepayableondemand
(A)frombanks.
(B)fromotherparties.
(b)Loansandadvancesfromrelatedparties
(c)Deposits
(d)Otherloansandadvances(specifynature).
(ii)Borrowingsshallfurtherbesubclassifiedassecuredandunsecured.Nature
ofsecurityshallbespecifiedseparatelyineachcase.
(iii)Whereloanshavebeenguaranteedbydirectorsorothers,theaggregate
amountofsuchloansundereachheadshallbedisclosed.
(iv)Periodandamountofdefaultasonthebalancesheetdateinrepaymentof
loansandinterest,shallbespecifiedseparatelyineachcase.
G.Othercurrentliabilities
Theamountsshallbeclassifiedas:
(a)Currentmaturitiesoflongtermdebt
(b)Currentmaturitiesoffinanceleaseobligations
(c)Interestaccruedbutnotdueonborrowings
(d)Interestaccruedanddueonborrowings
(e)Incomereceivedinadvance
(f)Unpaiddividends
(g)Applicationmoneyreceivedforallotmentofsecuritiesandduefor
refundandinterestaccruedthereon.Shareapplicationmoneyincludesadvances
towardsallotmentofsharecapital.Thetermsandconditionsincludingthenumber
ofsharesproposedtobeissued,theamountofpremium,ifany,andtheperiod
beforewhichsharesshallbeallottedshallbedisclosed.Itshallalsobedisclosed
whetherthecompanyhassufficientauthorisedcapitaltocoverthesharecapital
http://www.mca.gov.in/SearchableActs/Schedule3.htm

6/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

amountresultingfromallotmentofsharesoutofsuchshareapplicationmoney.
Further,theperiodforwhichtheshareapplicationmoneyhasbeenpending
beyondtheperiodforallotmentasmentionedinthedocumentinvitingapplication
forsharesalongwiththereasonforsuchshareapplicationmoneybeingpending
shallbedisclosed.Shareapplicationmoneynotexceedingtheissuedcapital
andtotheextentnotrefundableshallbeshownundertheheadEquityandshare
applicationmoneytotheextentrefundable,i.e.,theamountinexcessof
subscriptionorincasetherequirementsofminimumsubscriptionarenotmet,
shallbeseparatelyshownunderthercurrentliabilities
(h)Unpaidmatureddepositsandinterestaccruedthereon
(i)Unpaidmatureddebenturesandinterestaccruedthereon
(j)Otherpayables(specifynature).
H.Shorttermprovisions
Theamountsshallbeclassifiedas:
(a)Provisionforemployeebenefits.
(b)Others(specifynature).
I.Tangibleassets
(i)Classificationshallbegivenas:
(a)Land
(b)Buildings
(c)PlantandEquipment
(d)FurnitureandFixtures
(e)Vehicles
(f)Officeequipment
(g)Others(specifynature).
(ii)Assetsunderleaseshallbeseparatelyspecifiedundereachclassofasset.
(iii)Areconciliationofthegrossandnetcarryingamountsofeachclassof
assetsatthebeginningandendofthereportingperiodshowingadditions,disposals,
acquisitionsthroughbusinesscombinationsandotheradjustmentsandtherelated
depreciationandimpairmentlosses/reversalsshallbedisclosedseparately.
(iv)Wheresumshavebeenwrittenoffonareductionofcapitalorrevaluationof
assetsorwheresumshavebeenaddedonrevaluationofassets,everybalancesheet
subsequenttodateofsuchwriteoff,oradditionshallshowthereducedorincreased
figuresasapplicableandshallbywayofanotealsoshowtheamountofthereduction
orincreaseasapplicabletogetherwiththedatethereofforthefirstfiveyearssubsequent
tothedateofsuchreductionorincrease.
J.Intangibleassets
(i)Classificationshallbegivenas:
(a)Goodwill
(b)Brands/trademarks
http://www.mca.gov.in/SearchableActs/Schedule3.htm

7/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(c)Computersoftware
(d)Mastheadsandpublishingtitles
(e)Miningrights
(f)Copyrights,andpatentsandotherintellectualpropertyrights,services
andoperatingrights
(g)Recipes,formulae,models,designsandprototypes
(h)Licencesandfranchise
(i)Others(specifynature).
(ii)Areconciliationofthegrossandnetcarryingamountsofeachclassof
assetsatthebeginningandendofthereportingperiodshowingadditions,disposals,
acquisitionsthroughbusinesscombinationsandotheradjustmentsandtherelated
amortizationandimpairmentlosses/reversalsshallbedisclosedseparately.
(iii)Wheresumshavebeenwrittenoffonareductionofcapitalorrevaluation
ofassetsorwheresumshavebeenaddedonrevaluationofassets,everybalance
sheetsubsequenttodateofsuchwriteoff,oradditionshallshowthereducedor
increasedfiguresasapplicableandshallbywayofanotealsoshowtheamountofthe
reductionorincreaseasapplicabletogetherwiththedatethereofforthefirstfiveyears
subsequenttothedateofsuchreductionorincrease.
K.Noncurrentinvestments
(i)Noncurrentinvestmentsshallbeclassifiedastradeinvestmentsandother
investmentsandfurtherclassifiedas:
(a)Investmentproperty
(b)InvestmentsinEquityInstruments
(c)Investmentsinpreferenceshares
(d)InvestmentsinGovernmentortrustsecurities
(e)Investmentsindebenturesorbonds
(f)InvestmentsinMutualFunds
(g)Investmentsinpartnershipfirms
(h)Othernoncurrentinvestments(specifynature).
Undereachclassification,detailsshallbegivenofnamesofthebodiescorporate
indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,
(iii)jointventures,or(iv)controlledspecialpurposeentitiesinwhominvestments
havebeenmadeandthenatureandextentoftheinvestmentsomadeineachsuch
bodycorporate(showingseparatelyinvestmentswhicharepartlypaid).Inregardto
investmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenames
ofalltheirpartners,totalcapitalandthesharesofeachpartner)shallbegiven.
(ii)Investmentscarriedatotherthanatcostshouldbeseparatelystatedspecifying
thebasisforvaluationthereof
(iii)Thefollowingshallalsobedisclosed:
(a)Aggregateamountofquotedinvestmentsandmarketvaluethereof
http://www.mca.gov.in/SearchableActs/Schedule3.htm

8/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(b)Aggregateamountofunquotedinvestments
(c)Aggregateprovisionfordiminutioninvalueofinvestments.
L.Longtermloansandadvances
(i)Longtermloansandadvancesshallbeclassifiedas:
(a)CapitalAdvances
(b)SecurityDeposits
(c)Loansandadvancestorelatedparties(givingdetailsthereof)
(d)Otherloansandadvances(specifynature).
(ii)Theaboveshallalsobeseparatelysubclassifiedas:
(a)Secured,consideredgood
(b)Unsecured,consideredgood
(c)Doubtful.
(iii)Allowanceforbadanddoubtfulloansandadvancesshallbedisclosed
undertherelevantheadsseparately.
(iv)Loansandadvancesduebydirectorsorotherofficersofthecompanyor
anyofthemeitherseverallyorjointlywithanyotherpersonsoramountsduebyfirms
orprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectorora
membershouldbeseparatelystated.
M.Othernoncurrentassets
Othernoncurrentassetsshallbeclassifiedas:
(i)LongtermTradeReceivables(includingtradereceivablesondeferred
creditterms)
(ii)Others(specifynature)
(iii)LongtermTradeReceivables,shallbesubclassifiedas:
(A)(a)Secured,consideredgood
(B)Unsecured,consideredgood
(C)Doubtful.
(b)Allowanceforbadanddoubtfuldebtsshallbedisclosedunder
therelevantheadsseparately.
(c)Debtsduebydirectorsorotherofficersofthecompanyoranyof
themeitherseverallyorjointlywithanyotherpersonordebtsduebyfirms
orprivatecompaniesrespectivelyinwhichanydirectorisapartnerora
directororamembershouldbeseparatelystated.
N.CurrentInvestments
(i)Currentinvestmentsshallbeclassifiedas:
(a)InvestmentsinEquityInstruments
(b)InvestmentinPreferenceShares
(c)InvestmentsinGovernmentortrustsecurities
(d)Investmentsindebenturesorbonds
(e)InvestmentsinMutualFunds
http://www.mca.gov.in/SearchableActs/Schedule3.htm

9/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(f)Investmentsinpartnershipfirms
(g)Otherinvestments(specifynature).
Undereachclassification,detailsshallbegivenofnamesofthebodiescorporate
[indicatingseparatelywhethersuchbodiesare:(i)subsidiaries,(ii)associates,
(iii)jointventures,or(iv)controlledspecialpurposeentities]inwhominvestments
havebeenmadeandthenatureandextentoftheinvestmentsomadeineachsuch
bodycorporate(showingseparatelyinvestmentswhicharepartlypaid).Inregardto
investmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenames
ofalltheirpartners,totalcapitalandthesharesofeachpartner)shallbegiven.
(ii)Thefollowingshallalsobedisclosed:
(a)Thebasisofvaluationofindividualinvestments
(b)Aggregateamountofquotedinvestmentsandmarketvaluethereof
(c)Aggregateamountofunquotedinvestments
(d)Aggregateprovisionmadefordiminutioninvalueofinvestments.
O.Inventories
(i)Inventoriesshallbeclassifiedas:
(a)Rawmaterials
(b)Workinprogress
(c)Finishedgoods
(d)Stockintrade(inrespectofgoodsacquiredfortrading)
(e)Storesandspares
(f)Loosetools
(g)Others(specifynature).
(ii)Goodsintransitshallbedisclosedundertherelevantsubheadofinventories.
(iii)Modeofvaluationshallbestated.
P.TradeReceivables
(i)AggregateamountofTradeReceivablesoutstandingforaperiodexceeding
sixmonthsfromthedatetheyaredueforpaymentshouldbeseparatelystated.
(ii)Tradereceivablesshallbesubclassifiedas:
(a)Secured,consideredgood
(b)Unsecured,consideredgood
(c)Doubtful.
(iii)Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevant
headsseparately.
(iv)Debtsduebydirectorsorotherofficersofthecompanyoranyofthem
eitherseverallyorjointlywithanyotherpersonordebtsduebyfirmsorprivate
companiesrespectivelyinwhichanydirectorisapartneroradirectororamember
shouldbeseparatelystated.
Q.Cashandcashequivalents
(i)Cashandcashequivalentsshallbeclassifiedas:
http://www.mca.gov.in/SearchableActs/Schedule3.htm

10/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(a)Balanceswithbanks
(b)Cheques,draftsonhand
(c)Cashonhand
(d)Others(specifynature).
(ii)Earmarkedbalanceswithbanks(forexample,forunpaiddividend)shallbe
separatelystated.
(iii)Balanceswithbankstotheextentheldasmarginmoneyorsecurityagainst
theborrowings,guarantees,othercommitmentsshallbedisclosedseparately.
(iv)Repatriationrestrictions,ifany,inrespectofcashandbankbalancesshall
beseparatelystated.
(v)Bankdepositswithmorethantwelvemonthsmaturityshallbedisclosed
separately.
R.Shorttermloansandadvances
(i)Shorttermloansandadvancesshallbeclassifiedas:
(a)Loansandadvancestorelatedparties(givingdetailsthereof)
(b)Others(specifynature).
(ii)Theaboveshallalsobesubclassifiedas:
(a)Secured,consideredgood
(b)Unsecured,consideredgood
(c)Doubtful.
(iii)Allowanceforbadanddoubtfulloansandadvancesshallbedisclosed
undertherelevantheadsseparately.
(iv)Loansandadvancesduebydirectorsorotherofficersofthecompanyor
anyofthemeitherseverallyorjointlywithanyotherpersonoramountsduebyfirms
orprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectorora
membershallbeseparatelystated.
S.Othercurrentassets(specifynature)
Thisisanallinclusiveheading,whichincorporatescurrentassetsthatdonotfit
intoanyotherassetcategories.
T.Contingentliabilitiesandcommitments(totheextentnotprovidedfor)
(i)Contingentliabilitiesshallbeclassifiedas:
(a)Claimsagainstthecompanynotacknowledgedasdebt
(b)Guarantees
(c)Othermoneyforwhichthecompanyiscontingentlyliable.
(ii)Commitmentsshallbeclassifiedas:
(a)Estimatedamountofcontractsremainingtobeexecutedoncapital
accountandnotprovidedfor
(b)Uncalledliabilityonsharesandotherinvestmentspartlypaid
(c)Othercommitments(specifynature).
U.Theamountofdividendsproposedtobedistributedtoequityandpreference
http://www.mca.gov.in/SearchableActs/Schedule3.htm

11/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

shareholdersfortheperiodandtherelatedamountpershareshallbedisclosed
separately.Arrearsoffixedcumulativedividendsonpreferencesharesshallalsobe
disclosedseparately.
V.Whereinrespectofanissueofsecuritiesmadeforaspecificpurpose,the
wholeorpartoftheamounthasnotbeenusedforthespecificpurposeatthebalance
sheetdate,thereshallbeindicatedbywayofnotehowsuchunutilisedamountshave
beenusedorinvested.
W.If,intheopinionoftheBoard,anyoftheassetsotherthanfixedassetsand
noncurrentinvestmentsdonothaveavalueonrealisationintheordinarycourseof
businessatleastequaltotheamountatwhichtheyarestated,thefactthattheBoard
isofthatopinion,shallbestated.
PARTIISTATEMENTOFPROFITANDLOSS
NameoftheCompany.
Profitandlossstatementfortheyearended
(Rupeesin)

Particulars

NoteNo.

Figuresasattheend
ofcurrentreporting
period

Figuresasattheend
oftheprevious
reportingperiod

Revenuefromoperations

xxx

xxx

II

Otherincome

xxx

xxx

III

TotalRevenue(I+II)

xxx

xxx

IV

Expenses:
Costofmaterialsconsumed

PurchasesofStockinTrade

Changesininventoriesoffinished
goodsworkinprogressandStock
inTrade

Employeebenefitsexpense
Financecosts

Depreciationandamortization
expense

Otherexpenses

Totalexpenses
Profitbeforeexceptionaland

Xxx

Xxx

Xxx

Xxx

Xxx

Xxx

xxx

Xxx

xxx

xxx

extraordinaryitemsandtax(III
IV)
VI

Exceptionalitems

xxx

xxx

VII

Profitbeforeextraordinaryitems

xxx

xxx

andtax(VVI)
VIII

Extraordinaryitems

xxx

xxx

IX

Profitbeforetax(VIIVIII)

xxx

xxx

http://www.mca.gov.in/SearchableActs/Schedule3.htm

12/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

XI

Taxexpense:

(1)Currenttax

Xxx

Xxx

(2)Deferredtax

Xxx

Xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

(1)Basic

Xxx

Xxx

(2)Diluted

xxx

xxx

Profit(Loss)fortheperiodfrom

continuingoperations(VIIVIII)
XII

Profit/(loss)fromdiscontinuing
operations

XIII

Taxexpenseofdiscontinuing
operations

XIV

Profit/(loss)fromDiscontinuing
operations(aftertax)(XIIXIII)

XV

Profit(Loss)fortheperiod(XI+
XIV)

XVI

Earningsperequityshare:

Seeaccompanyingnotestothefinancialstatements.

GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOF
PROFITANDLOSS
1.TheprovisionsofthisPartshallapplytotheincomeandexpenditureaccount
referredtoinsubclause(ii)ofclause(40)ofsection2inlikemannerastheyapplytoa
statementofprofitandloss.
2.(A)Inrespectofacompanyotherthanafinancecompanyrevenuefromoperations
shalldiscloseseparatelyinthenotesrevenuefrom
(a)Saleofproducts
(b)Saleofservices
(c)Otheroperatingrevenues
Less:
(d)Exciseduty.
(B)Inrespectofafinancecompany,revenuefromoperationsshallincluderevenue
from
(a)Interestand
(b)Otherfinancialservices.
Revenueundereachoftheaboveheadsshallbedisclosedseparatelybywayofnotes
toaccountstotheextentapplicable.
3.FinanceCosts
Financecostsshallbeclassifiedas:
(a)Interestexpense
(b)Otherborrowingcosts
(c)Applicablenetgain/lossonforeigncurrencytransactionsandtranslation.
4.Otherincome
Otherincomeshallbeclassifiedas:
(a)InterestIncome(incaseofacompanyotherthanafinancecompany)
http://www.mca.gov.in/SearchableActs/Schedule3.htm

13/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

(b)DividendIncome
(c)Netgain/lossonsaleofinvestments
(d)Othernonoperatingincome(netofexpensesdirectlyattributable
tosuchincome).
5.AdditionalInformation
ACompanyshalldisclosebywayofnotesadditionalinformationregardingaggregate
expenditureandincomeonthefollowingitems:
(i)(a)EmployeeBenefitsExpense[showingseparately(i)salariesandwages,
(ii)contributiontoprovidentandotherfunds,(iii)expenseonEmployeeStockOption
Scheme(ESOP)andEmployeeStockPurchasePlan(ESPP),(iv)staffwelfareexpenses].
(b)Depreciationandamortisationexpense
(c)Anyitemofincomeorexpenditurewhichexceedsonepercent.oftherevenue
fromoperationsorRs.1,00,000,whicheverishigher
(d)InterestIncome
(e)Interestexpense
(f)Dividendincome
(g)Netgain/lossonsaleofinvestments
(h)Adjustmentstothecarryingamountofinvestments
(i)Netgainorlossonforeigncurrencytransactionandtranslation(otherthan
consideredasfinancecost)
(j)Paymentstotheauditoras(a)auditor(b)fortaxationmatters(c)forcompany
lawmatters(d)formanagementservices(e)forotherservicesand(f)for
reimbursementofexpenses
(k)IncaseofCompaniescoveredundersection135,amountofexpenditure
incurredoncorporatesocialresponsibilityactivities
(l)Detailsofitemsofexceptionalandextraordinarynature
(m)Priorperioditems
(ii)(a)Inthecaseofmanufacturingcompanies,
(1)Rawmaterialsunderbroadheads.
(2)goodspurchasedunderbroadheads.
(b)Inthecaseoftradingcompanies,purchasesinrespectofgoodstradedinby
thecompanyunderbroadheads.
(c)Inthecaseofcompaniesrenderingorsupplyingservices,grossincome
derivedfromservicesrenderedorsuppliedunderbroadheads.
(d)Inthecaseofacompany,whichfallsundermorethanoneofthecategories
mentionedin(a),(b)and(c)above,itshallbesufficientcompliancewiththerequirements
hereinifpurchases,salesandconsumptionofrawmaterialandthegrossincomefrom
servicesrenderedisshownunderbroadheads.
(e)Inthecaseofothercompanies,grossincomederivedunderbroadheads.
(iii)Inthecaseofallconcernshavingworksinprogress,worksinprogress
http://www.mca.gov.in/SearchableActs/Schedule3.htm

14/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

underbroadheads.
(iv)(a)Theaggregate,ifmaterial,ofanyamountssetasideorproposedtobeset
aside,toreserve,butnotincludingprovisionsmadetomeetanyspecificliability,
contingencyorcommitmentknowntoexistatthedateastowhichthebalancesheetis
madeup.
(b)Theaggregate,ifmaterial,ofanyamountswithdrawnfromsuchreserves.
(v)(a)Theaggregate,ifmaterial,oftheamountssetasidetoprovisionsmadefor
meetingspecificliabilities,contingenciesorcommitments.
(b)Theaggregate,ifmaterial,oftheamountswithdrawnfromsuchprovisions,
asnolongerrequired.
(vi)Expenditureincurredoneachofthefollowingitems,separatelyforeach
item:
(a)Consumptionofstoresandspareparts
(b)Powerandfuel
(c)Rent
(d)Repairstobuildings
(e)Repairstomachinery
(f)Insurance
(g)Ratesandtaxes,excluding,taxesonincome
(h)Miscellaneousexpenses,
(vii)(a)Dividendsfromsubsidiarycompanies.
(b)Provisionsforlossesofsubsidiarycompanies.
(viii)Theprofitandlossaccountshallalsocontainbywayofanotethefollowing
information,namely:
(a)ValueofimportscalculatedonC.I.Fbasisbythecompanyduringthe
financialyearinrespectof
I.Rawmaterials
II.Componentsandspareparts
III.Capitalgoods
(b)Expenditureinforeigncurrencyduringthefinancialyearonaccountof
royalty,knowhow,professionalandconsultationfees,interest,andothermatters
(c)Totalvalueifallimportedrawmaterials,sparepartsandcomponents
consumedduringthefinancialyearandthetotalvalueofallindigenousraw
materials,sparepartsandcomponentssimilarlyconsumedandthepercentage
ofeachtothetotalconsumption
(d)Theamountremittedduringtheyearinforeigncurrenciesonaccount
ofdividendswithaspecificmentionofthetotalnumberofnonresident
shareholders,thetotalnumberofsharesheldbythemonwhichthedividends
weredueandtheyeartowhichthedividendsrelated
(e)Earningsinforeignexchangeclassifiedunderthefollowingheads,
http://www.mca.gov.in/SearchableActs/Schedule3.htm

15/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

namely:
I.ExportofgoodscalculatedonF.O.B.basis
II.Royalty,knowhow,professionalandconsultationfees
III.Interestanddividend
IV.Otherincome,indicatingthenaturethereof.
Note:Broadheadsshallbedecidedtakingintoaccounttheconceptofmaterialityand
presentationoftrueandfairviewoffinancialstatements.
GENERALINSTRUCTIONSFORTHEPREPARATIONOFCONSOLIDATED
FINANCIALSTATEMENTS
1.WhereacompanyisrequiredtoprepareConsolidatedFinancialStatements,i.e.,
consolidatedbalancesheetandconsolidatedstatementofprofitandloss,thecompanyshall
mutatismutandisfollowtherequirementsofthisScheduleasapplicabletoacompanyinthe
preparationofbalancesheetandstatementofprofitandloss.Inaddition,theconsolidated
financialstatementsshalldisclosetheinformationaspertherequirementsspecifiedinthe
applicableAccountingStandardsincludingthefollowing:
(i)Profitorlossattributabletominorityinterestandtoownersoftheparentin
thestatementofprofitandlossshallbepresentedasallocationfortheperiod.
(ii)Minorityinterestsinthebalancesheetwithinequityshallbepresented
separatelyfromtheequityoftheownersoftheparent.
2.InConsolidatedFinancialStatements,thefollowingshallbedisclosedbywayof
additionalinformation:
Nameofthe

NetAssets,i.e.,totalassetsminus

entityinthe

totalliabilities

As%of

Amount

Shareinprofitorloss
As%of

consolidatednet

consolidatedprofit

assets

orloss

Amount

Parent
Subsidiaries
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
http://www.mca.gov.in/SearchableActs/Schedule3.htm

16/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

.
Minority
Interestsin
allsubsidiaries
Associates
(Investment
aspertheequity
method)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
JointVentures
(asperproportionate
consolidation/
investment
asperthe
equitymethod)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
TOTAL

http://www.mca.gov.in/SearchableActs/Schedule3.htm

17/18

10/26/2016

www.mca.gov.in/SearchableActs/Schedule3.htm

3.Allsubsidiaries,associatesandjointventures(whetherIndianorforeign)willbe
coveredunderconsolidatedfinancialstatements.
4.Anentityshalldisclosethelistofsubsidiariesorassociatesorjointventureswhich
havenotbeenconsolidatedintheconsolidatedfinancialstatementsalongwiththereasons
ofnotconsolidating.

http://www.mca.gov.in/SearchableActs/Schedule3.htm

18/18