Rounding off figures in the Profit and Loss Account. - Companies Law - 20/2003

General Circular No. 20/2003 No.1/5/2002-CL.V Government of India Ministry of Finance and Company Affairs Department of Company Affairs 5th Floor, "A" Wing, Shastri Bhavan, Dr. Rajendra Prasad Road, New Delhi-110 001. Dated 25th April, 2003 To All Regional Directors All Registrar of Companies Subject:- Rounding off figures in the Profit and Loss Account. Sir, 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. Yours faithfully, (E. Selvaraj) Joint Director (T)