Annual accounts - Form and contents of –Corresponding figures for immediately preceding financial year given for each group head as a whole instead of for each item ‑ Whether sufficient compliance of the sub‑section - Companies Law - No. 6(2)‑CL‑VI/57,

Circular: No. 6(2) ‑ CL ‑ VI/57, dated 7 ‑ 3 ‑ 1957. Subjects:- Annual accounts - Form and contents of Corresponding figures for immediately preceding financial year given for each group head as a whole instead of for each item ‑ Whether sufficient compliance of the sub ‑ section As far as possible, in every balance sheet, prepared in accordance with Schedule VI, the corresponding figures for the immediately preceding financial year for all the items in the balance sheet and the profit and loss account shall be given. However, if the company finds it difficult to give the corresponding figures for the immediately preceding year for each of the items shown in the balance sheet and profit and loss account, the Government would deem it sufficient compliance of the provisions of section 211(1) and (2) if the corresponding figure is given for each group head as a whole (with a suitable explanatory note) instead of for each item, as indicated in the illustration contained in the specified table. It will be seen from the above illustration that in the previous year s balance sheet details about the investments, details of bonus paid to employees and the contribution to provident fund were not given. Instead of recalculating these figures, it will serve the purpose if figures against groups are shown as illustrated above. While displaying the figures for the previous year care should, however, be taken to ensure that all the items in the audited balance sheet and the profit and loss account are fully incorporated in the current year s balance sheet and profit and loss account as corresponding figures for previous years. The intention of displaying the figures relating to the previous year is to facilitate the comparative study of the items in the balance sheet and the profit and loss account, so that the significance of the figures for the current year can be more readily appreciated and understood. It is necessary that a beginning should be made with the commencement of the Act, although complete corresponding figures will become available only for the next financial year.