GOVERNMENT OF INDIA
Ministry of Corporate Affairs
NOTICE INVITING COMMENTS ON THE REVISED SCHEDULE III TO THE COMPANIES ACT, 2013 FOR A COMPANY WHOSE FINANCIAL STATEMENTS ARE DRAWN UP IN COMPLIANCE OF COMPANIES (INDIAN ACCOUNTING STANDARDS) RULES 2015 AND AS AMENDED FROM TIME TO TIME
Dated the 9th February, 2016
1. The draft revised Schedule III to the Companies Act, 2013 for a company whose financial statements are drawn up in compliance of companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time has been placed on the Ministry’s website at www.mca.gov.in. It has been decided to invite suggestions/comments on the above draft.
3. Suggestions/comments on above mentioned draft along with justification in brief may be sent latest by 23rd February, 2016 through email at sch3@mca.gov.in. It is requested that the name, Telephone number and address of the sender should be indicated clearly at the time of sending suggestions/comments.
Name, Address, Contact No. of Stake holder __________________
| SL.No | Para No. | Suggestion | Justification |
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, , 2016
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 amendments to schedule III of the said Act with effect from the date of publication of this notification in the Official Gazette, namely:-
1. In Schedule III, before the heading General instructions for preparation of Balance Sheet and Statements of Profit and Loss of a Company the following shall be inserted:
Division I
Financial Statements for a company whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006.
2. In Schedule III, the following shall be inserted after the end of para 4 under the heading General instructions for the preparation of consolidated financial statements:
Division II
Financial Statements for a company whose financial statements are drawn up in compliance of Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time.
GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY required to comply with Ind AS.
1. Every company to which Indian Accounting Standards ( Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015 apply, shall prepare its financial statements in accordance with this Schedule or as near thereto as circumstances admit.
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/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.
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(s) 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 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 recognized 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 company, the figures appearing in the Financial Statements may 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 |
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 and nature of the item judged in the particular circumstances.
8. For the purpose of this Schedule, the terms used herein shall be as per the 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’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 Indian Accounting Standards.
