Profit and loss account - Rounding off figures in the Profit and Loss Account - Companies Law - Circular : No. 20/2003,

Circular : No. 20/2003, dated 25-4-2003 Subject:- Profit and loss account - Rounding off figures in the Profit and Loss Account Attention is drawn to Notification No. G.S.R. 545(E) dated 1st August, 2002 whereby the figures in the balance sheet were permitted to be rounded off to the nearest hundreds, thousands, lakhs, millions, or crores, or decimals thereof. 2. Doubts have been raised about the applicability of this notification to the profit and loss account also. As balance sheet and profit and loss accounts are forming part of annual accounts of a company prepared under Schedule VI, it is clarified that, by implication, the simplified procedure, as notified, may also apply to profit and loss accounts. Only then will it be of benefit to readers of these accounts, by being consistent across both the balance sheet and profit loss account.