TMI BlogForm of Balance-sheet The balance sheet of a company shall be either in horizontal form or vertical formX X X X Extracts X X X X X X X X Extracts X X X X ..... or by way of additional statement 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 to accounts in addition to the requirements set out in this Schedule. 3. Notes to accounts 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. Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts. In preparing the Financial Statements including the notes to accounts, 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. 4. Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as below: Turnover Rounding off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( b ) Deferred tax liabilities (Net) ( c ) Other Long-term liabilities ( d ) Long-term provisions (4) Current liabilities ( a ) Short-term borrowings ( b ) Trade payables ( c ) Other current liabilities ( d ) Short-term provisions TOTAL II. ASSETS Non-current assets (1) ( a ) Fixed assets ( i ) Tangible assets ( ii ) Intangible assets ( iii ) Capital work-in-progress ( iv ) Intangible assets under development ( b ) Non-current investments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect its classification. All other liabilities shall be classified as non-current. 4. A receivable shall be classified as a trade receivable if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. 5. A payable shall be classified as a trade payable if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 6. A company shall disclose the following in the notes to accounts: A. Share Capital for each class of share capital (different classes of preference shares to be treated separately): ( a ) the number and amount of shares authorized; ( b ) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid; ( c ) par value per share; ( d ) a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period; ( e ) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital; ( f ) shares in respect of each class in the company held by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be classified as: ( a ) Bonds/debentures. ( b ) Term loans u from banks. u from other parties. ( c ) Deferred payment liabilities. ( d ) Deposits. ( e ) Loans and advances from related parties. ( f ) Long-term maturities of finance lease obligations. ( g ) Other loans and advances (specify nature). ( ii ) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. ( iii ) Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. ( iv ) Bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due. ( v ) Particulars of any redeemed bonds/ debentures which the company has power to reissue shall be disclosed. ( vi ) Terms of repaym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y being pending shall be disclosed. Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable i.e. , the amount in excess of subscription or in case the requirements of minimum subscription are not met, shall be separately shown under ther current liabilities ; ( h ) Unpaid matured deposits and interest accrued thereon; ( i ) Unpaid matured debentures and interest accrued thereon; ( j ) Other payables (specify nature). H. Short-term provisions The amounts shall be classified as: ( a ) Provision for employee benefits. ( b ) Others (specify nature). I. Tangible assets ( i ) Classification shall be given as: ( a ) Land. ( b ) Buildings. ( c ) Plant and Equipment. ( d ) Furniture and Fixtures. ( e ) Vehicles. ( f ) Office equipment. ( g ) Others (specify nature). ( ii ) Assets under lease shall be separately specified under each class of asset. ( iii ) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estments in partnership firms; ( h ) Other non-current investments (specify nature). Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are ( i ) subsidiaries, ( ii ) associates, ( iii ) joint ventures, or ( iv ) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. ( ii ) Investments carried at other than at cost should be separately stated specifying the basis for valuation thereof. ( iii ) The following shall also be disclosed: ( a ) Aggregate amount of quoted investments and market value thereof; ( b ) Aggregate amount of unquoted investments; ( c ) Aggregate provision for diminution in value of investments. L. Long-term loans and advances ( i ) Long-term loans and advances shall be classified as: ( a ) Capital Advances; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. ( ii ) The following shall also be disclosed: ( a ) The basis of valuation of individual investments; ( b ) Aggregate amount of quoted investments and market value thereof; ( c ) Aggregate amount of unquoted investments; ( d ) Aggregate provision made for diminution in value of investments. O. Inventories ( i ) Inventories shall be classified as: ( a ) Raw materials; ( b ) Work-in-progress; ( c ) Finished goods; ( d ) Stock-in-trade (in respect of goods acquired for trading); ( e ) Stores and spares; ( f ) Loose tools; ( g ) Others (specify nature). ( ii ) Goods-in-transit shall be disclosed under the relevant sub-head of inventories. ( iii ) Mode of valuation shall be stated. P. Trade Receivables ( i ) Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated. ( ii ) Trade receivables shall be sub-classified as: ( a ) Secured, considered good; ( b ) U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmitments shall be classified as: ( a ) Estimated amount of contracts remaining to be executed on capital account and not provided for; ( b ) Uncalled liability on shares and other investments partly paid; ( c ) Other commitments (specify nature). U. The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on preference shares shall also be disclosed separately. V. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, there shall be indicated by way of note how such unutilized amounts have been used or invested. W. If, in the opinion of the Board, any of the assets other than fixed assets and non-current investments do not have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion, shall be stated. PART II Form of STATEMENT OF PROFIT AND LOSS Name of the Company . Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions (after tax) (XII-XIII) xxx xxx XV Profit (Loss) for the period (XI + XIV) xxx xxx XVI Earnings per equity share: (1) Basic xxx xxx (2) Diluted xxx xxx See accompanying notes to the financial statements GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS 1. The provisions of this Part shall apply to the income and expenditure account referred to in sub-section (2) of section 210 of the Act, in like manner as they apply to a statement of profit and loss. 2. (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from : ( a ) sale of products; ( b ) sale of services; ( c ) other operating revenues; Less : ( d ) excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from ( a ) Interest; and ( b ) Other financial services Revenue under eac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ( c ) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads. ( e ) In the case of other companies, gross income derived under broad heads. ( iii ) In the case of all concerns having works-in-progress, works-in-progress under broad heads. ( iv ) ( a ) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance-sheet is made up. ( b ) The aggregate, if material, of any amounts withdrawn from such reserves. ( v ) ( a ) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. ( b ) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. ( vi ) Expenditure incurred on each of the following items, separately for each item:- ( a ) Consumption of stores and spare parts. ( b ) Power and fuel. ( c ) R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, it read as under: [ Where the original cost aforesaid and additions and deductions thereto, relate to any fixed asset which has been acquired from a country outside India, and in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there has been an increase or reduction in the liability of the company, as expressed in Indian currency, for making payment towards the whole or a part of the cost of the asset or for repayment of the whole or a part of moneys borrowed by the company from any person, directly or indirectly in any foreign currency specifically for the purpose of acquiring the asset (being in either case the liability existing immediately before the date on which the change in the rate of exchange takes effect), the amount by which the liability is so increased or reduced during the year, shall be added to, or, as the case may be deducted from the cost, and the amount arrived at after such addition or deduction shall be taken to be the cost of the fixed asset. Explanation 1: This paragraph shall apply in relation to all balance-sheets that may be made out as at the 6th day of June,1966, or any day thereafter and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961. [23] Substituted by Notification No. GSR 78, dated 4-1-1963. [24] Substituted by Notification No. GSR 78, dated 4-1-1963. [25] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. [26] Inserted by Notification No. GSR 423(E), dated 13-9-1996. [27] Inserted by Notification No. GSR 414, dated 21-3-1961. [28] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. [29] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. [30] Item (8) relettered as sub-item ( a ) by Notification No. GSR 494(E), dated 30-10-1973. [31] Inserted by Notification No. GSR 494(E), dated 30-10-1973. [32] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [33] Substituted by Notification No. GSR 376(E), dated 22-5-2002. [34] Substituted by Notification No. GSR 78, dated 4-1-1963. [35] Inserted by Notification No. GSR 129(E), dated 22-2-1999. [36] Subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Substituted for para 4 by paras 4, 4A and 4B by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 217. [68] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [69] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [70] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [71] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [72] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [73] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [74] Substituted by Notification No. GSR 78, dated 4-1-1963. [75] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [76] Substituted by Notification No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d below, in respect of each class) ....shares of Rs. ... each. fittings, ( h ) development of property, ( i ) patents, trade marks and designs, ( j ) live-stock and ( k ) vehicles, etc. [3] [Where the original cost aforesaid and additions and deductions thereto, relate to any fixed asset which has been acquired from a country outside +Particulars of the different classes of preference shares to be given. +Subscribed (distinguishing between the various classes of Capital and stating the particulars specified below in respect of each class). ( c ) ...shares of Rs. ... ach. Rs. ... ..........called up. Of the above shares....... shares are allotted as fully paid-up pursuant to a contract without payments being received in cash. India, and in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there has been an increase or reduction in the liability of the company, as expressed in Indian currency, for making payment towards the whole or a part of the cost of the asset or for repayment of the whole or a part of moneys borrowed by the company from any person, directly or indirectly in any foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every case where the original cost cannot be ascertained, without unreasonable expense or delay, the valuation shown by the books shall be given. For the purposes of this paragraph, such valuation shall be the net amount at which an asset stood in the company's books at the commencement of this Act after deduction of the amounts previously provided or written off for depreciation or diminution in value, and where any such asset is sold, the amount of sale proceeds shall be shown as deduction.] Where sums have been written off on a reduction of capital or a revaluation of assets, every balance sheet, (after the first balance sheet) subsequent to the reduction or revaluation shall show the reduced figures and with the date of the reduction in place of the original cost. Each balance sheet for the first five years subsequent to the date of the reduction, shall show also the amount of the reduction made. Similarly, where sums have been added by writing up the assets, every balance-sheet subsequent to such writing up shall show the increased figures with the date of the increase in place of the original cost. Each balance sheet for the first five years subsequent to the date of wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n guaranteed by [17] [* * *] managers and/or directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head. + Terms of redemption or conversion (if any) of debentures issued to be stated together with earliest date of redemption or conversion. Secured Loans: *(1) Debentures+ *(2) Loans and Advances from Banks. *(3) Loans and Advances from subsidiries. *(4) Other Loans and Advances. (1) Interest accrued on In- vestments ++(2) Stores and spare parts. [18] [(3) Loose Tools.] ++(4) Stock-in-trade. **(5) Works-in-Progress +(6) Sundry debtors ( a ) Debts outstanding for a period exceeding six months. ( b ) Other debts. [19] [ Less : Provision] ++Mode of valuation of stock shall be stated and the amount in respect of raw material shall also be stated separately where practicable. ** Mode of valuation of works in-progress shall be stated. +In regard to Sundry Debtors particulars to be given separately of ( a ) debts considered good and in respect of which the company is fully secured; and ( b ) debts considered good for which the company holds no security other than the debtor's perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e head "Unsecured Loans".] +(2) Loans and Advances from subsidiaries. +(3) Short Term Loans and Advances: ( a ) From Banks. ( b ) From others. (4) Other Loans and Advances: B. Loans and Advances *The above instructions regarding "Sundry Debtors" apply to "Loans and Advances" also. +Where loans have been guaranteed by [29] [* * *] managers and/or directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head. ( a ) From Banks. (8) [30] [( a )] Advances and loans to subsidiaries. ( b ) From others. [31] [( b ) Advances and loans to partnership firms in which the company or any of its subsidiaries is a partner.] (9) Bills of Exchange. (10) Advances recoverable in cash or in kind or for value to be received, e.g. , Rates, Taxes, Insurance, etc. [32] [(11) * * *]. * See note ( d ) at foot of Current liabilities (12) Balances with Customs, Form and provisions Port Trust, etc. (where payable on demand). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the fact that it is so shown shall be stated. +The amount of any guarantees given by the company on behalf of Directors or other officers of the company shall be stated and where practicable, the general nature and amount of each such contingent liability, if material, shall also be specified. +(5) Other money for which the company is contingently liable. (3) Discount allowed on the issue of shares or debentures. (4) Interest paid out of capital during construction (also stating the rate of interest.) (5) Development expenditure not adjusted. (6) Other items (specifying nature). [39] [Profit and Loss Account.] [40] [+Show here the debit balance of profit and loss account carried forward after deduction of the uncommitted reserves, if any.] Notes . General instructions for preparation of balance sheet. ( a ) The information required to be given under any of the items or sub-items in this Form, if it cannot be conveniently included in the balance sheet itself, shall be furnished in a separate Schedule or Schedules to be annexed to and to form part of the balance sheet. This is recommended when items are numerous. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... names of the bodies corporate (indicating separately the names of the bodies corporate under the same management) in whose shares or debentures, investments have been made (including all investments whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and the nature and extent of the investment ; so made in each such body corporate; provided that in the case of an investment company that is to say, a company whose principal business is the acquisition of shares, stock, debentures or other securities, it shall be sufficient if the statement shows only the investments existing on the date as at which the balance sheet has been made out. In regard to the investments in the capital of partnership firms, the names of the firms (With the names of all their partners total capital and the shares of each partner) shall be given in the statement.] ( m ) If, in the opinion of the Board, any of the current assets, loans and advances have not a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion shall be stated. ( n ) Except in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ructions for preparation of balance sheet. 2. The Schedules, referred to above, accounting policies and explanatory notes that may be attached shall form an integral part of the balance sheet. [52] [3. The figures in the balance sheet may be rounded off as under: Where the turnover of the company in any financial year is: Round off permissible: ( i ) less than one hundred crore rupees to the nearest hundreds or thousands, or decimals thereof. ( ii ) one hundred crore rupees or more but less than five hundred crore rupees to the nearest hundreds, thousands, lakhs or millions, or decimals thereof. ( iii ) five hundred crore rupees or more to the nearest hundreds, thousands, lakhs, millions, or crores, or decimals thereof.] 4. A foot-note to the balance sheet may be added to show separately contingent liabilities. PART II Requirements as to Profit and Loss Account 1 . The provisions of this Part shall apply to the income and expenditure account referred to in sub-section (2) of section 210 of the Act, in like manner as they apply to a profit and loss account, but subject to the modification of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplied. ( d ) In the case of a company, which falls under more than one of the categories mentioned in ( a ), ( b ) and ( c ) above, it shall be sufficient compliance with the requirements herein if the total amounts are shown in respect of the opening and closing stocks, purchases, sales and consumption of raw material with value and quantitative break-up and the gross income from services rendered is shown. ( e ) In the case of other companies, the gross income derived under different heads. Note 1. The quantities of raw materials purchases, stocks, and the turnover shall be expressed in quantitative denominations in which these are normally purchased or sold in the market. Note 2. For the purpose of items ( ii )( a ), ( ii )( b ) and ( ii )( d ), the items for which the company is holding separate industrial licences, shall be treated as separate classes of goods, but where a company has more than one industrial licence for production of the same item at different places or for expansion of the licensed capacity, the item covered by all such licences shall be treated as one class. In the case of trading companies, the imported items shall be classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial, of the amounts to set aside to provisions made for meeting specific liabilities, contingencies or commitments. ( b ) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. ( x ) Expenditure incurred on each of the following items, separately for each item: ( a ) Consumption of stores and spare parts. ( b ) Power and fuel. ( c ) Rent. ( d ) Repairs to buildings. ( e ) Repairs to machinery. ( f ) (1) Salaries, wages and bonus. (2) Contribution to provident and other funds. (3) Workmen and staff welfare expenses [61] [to the extent not adjusted from any previous provision or reserve. Note [62] [1]. Information in respect of this item should also be given in the balance sheet under the relevant provision or reserve account.] Note 2. [63] [* * *] ( g ) Insurance. ( h ) Rates and taxes, excluding taxes on income. ( i ) Miscellaneous expenses: [64] [ Provided that any item under which the expenses exceed one per cent of the total revenue of the company or Rs. 5,000 whichever is higher shall be shown as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h or in kind (stating approximate money value where practicable); ( viii ) pensions, etc., ( a ) pensions, ( b ) gratuities, ( c ) payments from provident funds, in excess of own subscriptions and interest thereon, ( d ) compensation for loss of office, ( e ) consideration in connection with retirement from office.] 4A. The profit and loss account shall contain or give by way of a note a statement showing the computation of net profits in accordance with section 349 of the Act with relevant details of the calculation of the commissions payable by way of percentage of such profits to the directors (including managing directors), [75] [* * *] or manager (if any). 4B. The profit and loss account shall further contain or give by way of a note detailed information in regard to amounts paid to the auditor, [76] [whether as fees, expenses or otherwise for services rendered ] ( a ) as auditor; [77] [* * *] [78] [( b ) as adviser, or in any other capacity, in respect of ( i ) taxation matters; ( ii ) company law matters; ( iii ) management services; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( i ) export of goods calculated on F.O.B. basis; ( ii ) royalty, know-how, professional and consultation fees; ( iii ) interest and dividend; ( iv ) other income, indicating the nature thereof.] 5. The Central Government may direct that a company shall not be obliged to show the amount set aside to provisions other than those relating to depreciation, renewal or diminution in value of assets, if the Central Government is satisfied that the information should not be disclosed in the public interest and would prejudice the company, but subject to the condition that in any heading stating an amount arrived at after taking into account the amount set aside as such, the provision shall be so framed or marked as to indicate that fact. 6. (1) Except in the case of the first profit and loss account laid before the company after the commencement of the Act, the corresponding amounts for the immediately preceding financial year for all items shown in the profit and loss account shall also be given in the profit and loss account. (2) The requirement in sub-clause (1) shall, in the case of companies preparing quarterly or half-yearly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised during the year (Amount in Rs. Thousands) Public Issue Rights Issue ......... ......... Bonus Issue Private Placement ......... ......... III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) Total Liabilities Total Assets ......... ......... Source of Funds Paid-up Capital Reserves Surplus ......... ......... Secured Loans Unsecured Loans ......... ......... Application of Funds Net Fixed Assets Investments ......... ......... Net Current Assets Misc. Expenditure ......... ......... Accumulated Losses ......... IV. Performance of Company (Amount in Rs. Thousands) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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