GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
Notification
New Delhi, 11th October, 2018
G.S.R. (E).—In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments in Schedule III to the said Act with effect from the date of publication of this notification in the Official Gazette, namely:-
In the said Schedule,-
(a) in Division I,-
(i) under the heading “General instructions for preparation of Balance Sheet and statement of Profit and Loss of a company”, under sub-heading “General instructions”, in paragraph 4, in clause (ii), for the word “shall”, the word “should” shall be substituted;
(ii) in Part I- Balance Sheet,-
(A) under the heading “II Assets”, under sub-heading “Non-current assets”, for the words “Fixed assets”, the words “Property, Plant and Equipment” shall be substituted;
(B) in the “Notes”, under the heading “General Instructions for preparation of Balance Sheet”, in paragraph 6,-
(I) under the heading “B. Reserves and Surplus”, in item (i), in sub- item (c), the word “Reserve” shall be omitted;
(II) in clause W., for the words “fixed assets”, the words “Property, Plant and Equipment” shall be substituted;
(b) in Division II, in Part I- Balance Sheet,-
(i) under the heading “Equity and Liabilities”, for the words “Trade payables” at both the places where they occur, the following shall be substituted, namely:— “Trade Payables:-
(A) total outstanding dues of micro enterprises and small enterprises; and
(B) total outstanding dues of creditors other than micro enterprises and small enterprises.”;
(ii) under the heading “Statement of Changes in Equity”, under sub-heading “B. Other Equity”,-
(A) for the words “Securities Premium Reserve”, the words “Securities Premium” shall be substituted;
(B) The “Note” shall be renumbered as clause (i) thereof and after clause (i) as so renumbered, the following clause shall be inserted, namely:-
“(ii) A description of the purposes of each reserve within equity shall be disclosed in the Notes.”;
(iii) in the “Notes”, under the heading “General Instructions for Preparation of Balance Sheet”,-
(A) in paragraph 6,-
(I) under the heading “A. Non-Current Assets”,-
(i) under sub-heading “VII. Trade Receivables”, for item (i), the following shall be substituted, namely:—
“(i) 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.”;
(ii) under sub-heading “VIII. Loans”, for item (ii), the following shall be substituted, namely:—
“(ii) 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) under the heading “B. Current Assets”,-
(i) under sub-heading “III. Trade Receivables”, for item (i) the following shall be substituted, namely:—
“(i) 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.”;
(ii) under sub-heading “V. Loans”, for item (ii), the following shall be substituted, namely:—
“(ii) 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.”;
(III) after the heading “F. Current Liabilities” and the entries relating thereto, the following shall be inserted, namely:—
“FA. Trade Payables
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 (whic h 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.”.
(B) in paragraph 9, after the words “For instance,”, the words “plain vanilla” shall be inserted;
(c) after Division II and the entries relating thereto, the following shall be inserted, namely:
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