The Companies Act, 1956

211. Form and contents of balance-sheet and profit and loss account.
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[(1) Every balance-sheet of a company shall give a true and fair view of the state of affairs of the company as at the end of the financial year and shall, subject to the provisions of this section, be in the form set out in Part I of Schedule VI, or as near thereto as circumstances admit or in such order form as may be approved by the Central Government either generally or in any particular case; and in preparing the balance-sheet due regard shall be had, as far as may be, to the general instructions for preparation of balance-sheet under the heading Notes at the end of that Part: Provided that nothing contained in this sub-section shall apply to any insurance or banking company or any company engaged in the generation or supply of electricity or to any other class of company for which a form of balance-sheet has been specified in or under the Act governing such class of company.] (2) Every profit and loss account of a company shall give a true and fair view of the profit or loss of the company for the financial year and shall, subject as aforesaid, comply with the requirements of Part II of Schedule VI, so far as they are applicable thereto: Provided that nothing contained in this sub-section shall apply to any insurance or banking company 2[or any company engaged in the generation or supply of electricity], or to any other class of company for which a form of profit and loss account has been specified in or under the Act governing such class of company. (3) The Central Government may, by notification in the Official Gazette, exempt any class of companies from compliance with any of the requirements in Schedule VI if, in its opinion, it is necessary to grant the exemption in the 3[public interest]. Any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification.
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[(3A) Every profit and loss account and balance-sheet of the company shall comply with the accounting standards. (3B) Where the profit and loss account and the balance-sheet of the company do not comply with the accounting standards, such companies shall disclose in its profit and loss account and balance-sheet, the following, namely: (a) the deviation from the accounting standards; (b) the reasons for such deviation; and

(c) the financial effect, if any, arising due to such deviation. (3C) For the purposes of this section, the expression accounting standards means the standards of accounting recommended by the Institute of Chartered Accountants of India constituted under the Chartered Accountants Act, 1949 (38 of 1949), as may be prescribed by the Central Government in consultation with the National Advisory Committee on Accounting Standards established under sub-section (1) of section 210A: Provided that the standards of accounting specified by the Institute of Chartered Accountants of India shall be deemed to be the accounting standards until the accounting standards are prescribed by the Central Government under this subsection.] (4) The Central Government may, on the application or with the consent of the Board of directors of the company, by order, modify in relation to that company any of the requirements of this Act as to the matters to be stated in the companys balance sheet or profit and loss account for the purpose of adapting them to the circumstances of the company. (5) The balance-sheet and the profit and loss account of a company 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 (i) in the case of an insurance company, any matters which are not required to be disclosed by the Insurance Act, 1938 (4 of 1938); (ii) in the case of a banking company, any matters which are not required to be disclosed by the Banking Companies Act, 1949 (10 of 1949); (iii) in the case of a company engaged in the generation or supply of electricity, any matters which are not required to be disclosed by 5[both the Indian Electricity Act, 1910 (9 of 1910), and the Electricity (Supply) Act, 1948 (34 of 1948)]; (iv) in the case of a company governed by any other special Act for the time being in force, any matters which are not required to be disclosed by that special Act; or (v) in the case of any company, any matters which are not required to be disclosed by virtue of the provisions contained in Schedule VI or by virtue of a notification issued under sub-section (3) or an order issued under sub-section (4). (6) For the purposes of this section, except where the context otherwise requires, any reference to a balance-sheet or profit and loss account shall include any notes thereon or documents annexed thereto, giving information required by this Act, and allowed by this Act to be given in the form of such notes or documents. (7) If any such person as is referred to in sub-section (6) of section 209 fails to take all reasonable steps to secure compliance by the company, as respects any accounts laid

before the company in general meeting, with the provisions of this section and with the other requirements of this Act as to the matters to be stated in the accounts, he shall, in respect of each offence, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to 6[ten thousand rupees], or with both: Provided that in any proceedings against a person in respect of an offence under this section, it shall be a defence to prove 7[***] that a competent and reliable person was charged with the duty of seeing that the provisions of this section and the other requirements aforesaid were complied with and was in a position to discharge that duty: Provided further that no person shall be sentenced to imprisonment for any such offence unless it was committed wilfully. (8) If any person, not being a person referred to in sub-section (6) of section 209, having been charged by the 8[***] 9[managing director or manager,] or Board of directors, as the case may be, with the duty of seeing that the provisions of this section and the other requirements aforesaid are complied with, makes default in doing so, he shall, in respect of each offence, be punishable with imprisonment for a term which may extend to six months or with fine which may extend to 10[ten thousand rupees], or with both: Provided that no person shall be sentenced to imprisonment for any such offence unless it was committed wilfully. ---------------------------1. Subs. by Act 65 of 1960, sec. 62, for sub-section (1) (w.e.f. 28-12-1960). 2. Ins. by Act 65 of 1960, sec. 62 (w.e.f. 28-12-1960). 3. Subs. by Act 65 of 1960, sec. 62, for national interest (w.e.f. 28-12-1960). 4. Ins. by Act 21 of 1999, sec. 14 (w.r.e.f. 31-10-1998). 5. Subs. by Act 65 of 1960, sec. 62, for the Electricity (Supply) Act, 1948 (54 of 1948) (w.e.f. 28-12-1960). 6. Subs. by Act 53 of 2000, sec. 98, for one thousand rupees (w.e.f. 13-12-2000). 7. The words that he had reasonable ground to believe and did believe omitted by Act 65 of 1960, sec. 62 (w.e.f. 28-12-1960). 8. The words managing agent, secretaries and treasurers, omitted by Act 53 of 2000, sec. 98 (w.e.f. 13-12-2000). 9. Ins. by Act 65 of 1960, sec. 62 (w.e.f. 28-12-1960).

10. Subs. by Act 53 of 2000, sec. 98, for one thousand rupees (w.e.f. 13-122000).

Most accounting balance sheets classify a company's assets and liabilities into distinctive groupings such as Current Assets; Property, Plant, and Equipment; Current Liabilities; etc. These classifications make the balance sheet more useful. The following balance sheet example is a classified balance sheet.

Sample Balance Sheet:

Example Company Balance Sheet December 31, 2010

ASSETS Current Assets

LIABILITIES Current Liabilities $ 2,100 100 10,000 40,500 31,000 3,800 1,500 89,000

Cash Petty Cash Temporary Investments Accounts Receivable - net Inventory Supplies Prepaid Insurance
Total Current Assets

Notes Payable Accounts Payable Wages Payable Interest Payable Taxes Payable Warranty Liability Unearned Revenues
Total Current Liabilities

$ 5,000 35,900 8,500 2,900 6,100 1,100 1,500 61,000 -

Investments

36,000

Long-term Liabilities

Notes Payable

20,000

Property, Plant & Equipment

Bonds Payable
5,500 6,500 180,000 201,000 Total Liabilities (56,000) 337,000 Total Long-term Liabilities

400,000 420,000

Land Land Improvements Buildings Equipment

Less: Accum Depreciation Prop, Plant & Equip - net

481,000

Intangible Assets STOCKHOLDERS' EQUITY 105,000 200,000 305,000

Goodwill Trade Names

Total Intangible Assets

Common Stock Retained Earnings

Less: Treasury Stock Total Stockholders' Equity

110,000 229,000 (50,000) 289,000

Other Assets

3,000 -

Total Assets

$770,000 Total Liab. & Stockholders' Equity

$770,000

Laws - The Central Excise Act,1944

4. VALUATION OF EXCISABLE GOODS FOR PURPOSES OF CHARGING OF DUTY OF EXCISE.
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[Valuation of excisable goods for purposes of charging of duty of excise.(1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of goods are not related and the price is the sole consideration for the sale, be the transaction value; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed.
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[Explanation.For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, flowing directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such price-cum-duty, excluding sales tax and other taxes, if any, actually paid, shall be deemed to include the duty payable on such goods.] (2) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of section 3. (3) For the purposes of this section, (a) assessee means the person who is liable to pay the duty of excise under this Act and includes his agent; (b) persons shall be deemed to be related if (i) they are inter-connected undertakings; (ii) they are relatives; (iii) amongst them the buyer is a relative and distributor of the assessee, or a subdistributor of such distributor; or (iv) they are so associated that they have interest, directly or indirectly, in the business of each other. Explanation.In this clause

(i) inter-connected undertakings shall have the meaning assigned to it in clause (g) of section 2 of the Monopolies and Restrictive Trade Practices Act, 1969 (64 of 1969); and (ii) relative shall have the meaning assigned to it in clause (41) of section 2 of the Companies Act, 1956 (1 of 1956); (c) place of removal means (i) a factory or any other place or premises of production or manufacture of the excisable goods; (ii) a warehouse or any other place on premises wherein the excisable goods have been permitted to be deposited without 3[payment of duty;]
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[(iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory;] from where such goods are removed;
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[(cc) "time of removal", in respect of the excisable goods removed from the place of removal referred to in sub-clause (iii) of clause (c), shall be deemed to be the time at which such goods are cleared from the factory;] (d) transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods.] Comments Assessment of value of goods If a higher discount on goods sold to stockists and a lower discount on goods sold to sub-stockists is allowed and the differential discount is passed on to the stockists then differential discount is not deductible in assessing the value of goods to sub-stockists; Escorts Ltd. v. Collector of Central Excise, Chandigarh, (2003) 4 SCC 285. Basis of excise duty Under the Central Excise Act, excise duty is chargeable on the value of the goods. The Value is the normal price, i.e., the price at which such goods are ordinarily sold by the assessee to a buyer, where the buyer is not related person and the price is the sole consideration for sale; Tata Iron & Steel Co. Ltd. v. Collector of Central Excise, AIR 2003 SC 144.

The mere fact of making an interest free advance by a buyer to the manufacturer, by itself will not be a sufficient ground to reload the assessable value with notional interest. It would be necessary for the revenue to show that such advance has influenced in the lowering of the price and that it is not depicting the normal price of the goods; Commr. of Central Excise v. I.S.P. Industries Ltd., 2003 AIR SCW 2264 Freight and insurance charges upto depot would be includible in assessable value for purposes of excise; Prabhat Zarda Factory Limited v. Commissioner of Central Excise, 2002 (146) ELT 497 (SC). Show-cause notice If all the requirements of clause (a) are fulfilled but the allegations in show-cause notice proceeded on the basis as if clause (b) was applicable, the authorities lacks jurisdiction to issue show-cause notice; Union of India v. Hindalco Industries, (2003) 5 SCC 194. 1. Subs. by Act 10 of 2000, sec. 94 , for section 4 (w.e.f. 1-4-2000). Earlier section 4 was substituted by Act 22 of 1973, sec. 2 (w.e.f. 1-10-1975). 2. Ins. by Act 32 of 2003, sec. 136 (w.e.f. 14-5-2003). 3. Subs. by Act 32 of 2003, sec. 136, for "payment of duty," (w.e.f. 14-5-2003). 4. Ins. by Act 32 of 2003, sec. 136 (w.e.f. 14-5-2003).

Re: Can you recollect what are the configuration steps you did in GL, AP, AR, AND Asset accounting in your implementation project...? Answer GL CONFIGURATION: # 1 1.DEFINE COMPANY

2.DEFINE COMPANY CODE 3.DEFINE BUSINESS AREA 4.ASSIGN COMPANY CODE TO COMPANY 5.DEFINE FISCAL YEAR 6.ASSIGN COMPANY CODE TO FISCAL YEAR 7.DEFINE VARIANTS FOR OPEN POSTING PERIODS 8.ASSIGN VARIANTS TO COMPANY CODE 9.OPEN AND CLOSE POSTING PERIODS 10.DEFINE DOCUMENT TYPE 11.DEFINE FIELD STATUS VARIANTS 12.ASSIGN COMPANY CODE TO FISCAL YEAR VARIANT AP CONFIGURATION: 1.DEFINE A/C GROUPS 2.CREATE NUMBER RANGES FOR VENDOR A/C 3.ASSIGN NUMBER RANGES TO VENDOR A/C 4.DEFINE TOLERANCE 7.MAINTAIN NUMBER RANGES FOR KR,KZ,KA(VENDOR INVOICE, PAYMENTS, DOCUMENTS) 6.CREATE VENDOR RECONSILLATION 7.CREATE VENDOR MASTER RECORD(FK01) 8.CREATE SERVICE GL MASTER RECORD AR CONFIGURATION:

1.DEFINE A/C GROUPS WITH SCREEN LAYOUTS(CUST) 2.CREATE NUMBER RANGES FOR CUSTOMER 3.ASSIGN NUMBER RANGES TO CUSTOMER A/C GROUPS 4.CREATION OF RECONSILLATION GL MASTER RECORD 5.CREATION CUSTOMER MASTER RECORD(FD01) 6.CREATION OF SERVICE REVENUE A/C 7.MAINTAIN NUMBER RANGES FOR DR,DZ,DA(CUST INVOICE, PAYMENTS,DOCs) ASSET A/C CONFIGURATION: 1.MAINTAIN CHART OF DEPRECIATION 2.ASSIGN INPUT TAX INDICATOR FOR NON TAXABLE AQUITIONS 3.ASSIGN CHART OF DEPRECIATION TO COMPANY CODE 4.SPECIFY A/C DETERMINATION 5.DEFINE SCREEN LAYOUT RULES 6.DEFINE NUMBER RANGE INTERVAL 7.DEFINE ASSET CLASSES 8.DETERMINE DEPRECIATION AREAS IN THE ASSET CLASS 9.MAINTAIN DEPRECIATION KEY
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