Clause 98 - Preparation of balance sheet for computing gross assets - Direct Taxes Code Bill, 2009

Preparation of balance sheet for computing gross assets 98. (1) Every company shall, for the purposes of section 97, prepare his balance sheet for the relevant financial year in accordance with the provisions of Part I of Schedule VI to the Companies Act, 1956. (2) The company shall, for the purposes of preparing the balance sheet referred to in sub-section (1), adopt the same accounting policies, the accounting standards adopted for preparing its accounts including profit and loss account and the method and rates adopted for calculating the depreciation as have been adopted for the purpose of preparing the accounts- (a) laid by the company at its annual general meeting in accordance with the provisions of section 210 of the Companies Act, 1956; or (b) delivered to the Registrar under section 594 of the Companies Act, 1956. (3) The company shall, in a case where the financial year adopted under the Companies Act, 1956 is different from the financial year under this Code, adopt the same accounting policies, the accounting standards adopted for preparing its accounts including profit and loss account and the method and rates adopted for calculating the depreciation as have been adopted for preparing the accounts for such financial year or part of such financial year falling within the relevant financial year. (4) Every other person, in respect of whom the foregoing provisions of this section does not apply, shall also prepare its balance sheet and profit and loss account as if the foregoing provisions of this section apply. (5) The Board may prescribe such rules, as may be necessary, to modify the provisions of sub-sections (1) to (3) for the purposes of enabling the preparation of the balance sheet and profit and loss account under sub-section (4).