9911796707
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 ..... nt 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 (i) less than one hundred crore rupees To the nearest hundreds, thousands, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed tax assets (net) (d) Long-term loans and advances (e) Other non-current assets (2) Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets TOTAL See accompanying notes to the financial statements Notes GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET 1. An asset shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be realized in, or is intended for sale or consumption in, the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets shall be classified as non-current. 2. An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a duration of 12 mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout payment being received in cash. u Aggregate number and class of shares allotted as fully paid up by way of bonus shares. u Aggregate number and class of shares bought back. (j) terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date; (k) calls unpaid (showing aggregate value of calls unpaid by directors and officers); (l) forfeited shares (amount originally paid up). B. Reserves and Surplus (i) Reserves and Surplus shall be classified as: (a) Capital Reserves; (b) Capital Redemption Reserve; (c) Securities Premium Reserve; (d) Debenture Redemption Reserve; (e) Revaluation Reserve; (f) Share Options Outstanding Account; (g) Other Reserves (specify the nature and purpose of each reserve and the amount in respect thereof);] (h) Surplus i.e., balance in Statement of Profit & Loss disclosing allocations and appropriations such as dividend, bonus shares and transfer to/from reserves etc. (Additions and deductions since last balance sheet to be shown under each of the specified heads). (ii) A reserve specifically represented by earmark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rately 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) Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. G. Other current liabilities The amounts shall be classified as: (a) Current maturities of long-term debt; (b) Current maturities of finance lease obligations; (c) Interest accrued but not due on borrowings; (d) Interest accrued and due on borrowings; (e) Income received in advance; (f) Unpaid dividends; (g) Application money received for allotment of securities and due for refund and interest accrued thereon. Share application money includes advances towards allotment of share capital. The terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed. It shall also be disclosed whether the company has sufficient authorized capital to cover the share capital amount resulting from allotment of shares out of such share application money. Further, the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately. (iii) Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. K. Non-current investments (i) Non-current investments shall be classified as trade investments and other investments and further classified as: (a) Investment property; (b) Investments in Equity Instruments; (c) Investments in preference shares; (d) Investments in Government or trust securities; (e) Investments in debentures or bonds; (f) Investments in Mutual Funds; (g) Investments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. N. Current Investments (i) Current investments shall be classified as: (a) Investments in Equity Instruments; (b) Investment in Preference Shares; (c) Investments in Government or trust securities; (d) Investments in debentures or bonds; (e) Investments in Mutual Funds; (f) Investments in partnership firms; (g) Other 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) The following shall also be disclosed: (a) The basis of valuation of individual in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. S. Other current assets (specify nature) This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories. T. Contingent liabilities and commitments (to the extent not provided for) (i) Contingent liabilities shall be classified as: (a) Claims against the company not acknowledged as debt; (b) Guarantees; (c) Other money for which the company is contingently liable. (ii) Commitments 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 dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable. 3. Finance Costs Finance costs shall be classified as: (a) Interest expense; (b) Other borrowing costs; (c) Applicable net gain/loss on foreign currency transactions and translation. 4. Other income Other income shall be classified as: (a) Interest Income (in case of a company other than a finance company); (b) Dividend Income; (c) Net gain/loss on sale of investments; (d) Other non-operating income (net of expenses directly attributable to such income). 5. Additional Information A Company shall disclose by way of notes additional information regarding aggregate expenditure and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gate, 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) Rent. (d) Repairs to buildings. (e)/(f) Repairs to machinery. (g) Insurance . (h) Rates and taxes, excluding, taxes on income. (i) Miscellaneous expenses. (vii) (a) Dividends from subsidiary companies. (b) Provisions for losses of subsidiary companies. (viii) The profit and loss account shall also contain by way of a note the following information, namely:- (a) Value of imports calculated on C.I.F. basis by the company during the financial year in respect of - I. Raw materials; II. Components and spare parts; III. Capital goods; (b) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; (c) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to all balance-sheets that may be made out as at the 6th day of June,1966, or any day thereafter and where, at the date of issue of the notification of the Government of India, in the Ministry of Industrial Development and Company Affairs (Department of Company Affairs), G.S.R. No. 129, dated the 3rd day of January, 1968, any balance sheet, in relation, to which this paragraph applies, has already been made out and laid before the company in Annual General Meeting, the adjustment referred to in this paragraph may be made in the first balance-sheet made out after the issue of the said notification. Explanation 2.--In this paragraph, unless the context otherwise requires, the expressions "rate of exchange", "foreign currency" and "Indian currency" shall have the meanings respectively assigned to them under sub-section (1) of section 43A of the Income-tax Act, 1961 (43 of 1961), and Explanation 2 and Explanation 3 of the said sub-section shall, as far as may be, apply in relation to the said paragraph as they apply to the said sub-section (1). "]. [4] Inserted by Notification No. GSR 414, dated 21-3-1961. [5] Substituted by Notification No. GSR 414, dated 21-3-1961. [6] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] Substituted Notification No. GSR 762(E), dated 13-11-2002. [37] Substituted by Notification No. GSR 414, dated 21-3-1961. [38] Inserted by Notification No. GSR 414, dated 21-3-1961. [39] Substituted by Notification No. GSR 414, dated 21-3-1961. [40] Inserted, Notification No. GSR 414, dated 21-3-1961. [41] Substituted by Notification No. GSR 414, dated 21-3-1961. [42] Substituted by Notification No. GSR 414, dated 21-3-1961. [43] Substituted by Notification No. GSR 414, dated 21-3-1961. [44] Substituted by Notification No. GSR 414, dated 21-3-1961. [45] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [46] Substituted by Notification No. GSR 414, dated 21-3-1961. [47] Substituted by Notification No. GSR 494(E), dated 30-10-1973. [48] Substituted by Notification No. GSR 414, dated 21-3-1961. [49] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [50] Inserted by Notification No. GSR 129(E), dated 22-2-1999. [51] Inserted by Notification No. GSR 220(E), dated 12-3-1979. [52] Substituted by Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, by Notification No. GSR 455, dated 27-4-1974. [79] Substituted for para 4C by paras 4C and 4D by Notification No. GSR 494(E), dated 30-10-1973. [80] Inserted by Notification No. GSR 388(E), dated 15-5-1995. [81] Replaced vide Notification No. S.O. 447(E), DATED 28-2-2011, before it was read as:- SCHEDULE VI (See section 211) [1][PART I Form of Balance-sheet] [2][The balance sheet of a company shall be either in horizontal form or vertical form A. HORIZONTAL FORM] Balance sheet of ................[Here enter the name of the Company] As at .............[Here enter the date as at which the balance-sheet is made out.] Instructions in LIABILITIES ASSETS Instructions in accordance accordance with ---------------------- ---------------------- with which assets should which liabilities Figures Figures Figures Figures be made out should be made out for the for the for the for the previous current previous current year year year year Rs. Rs. Rs. Rs. (b) (b) (b) (b) *Share Capital *Fixed Assets *Terms of redemption or conversion (if any), of any redeemable preference capital to be stated, together with earl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability 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 [7][+Any capital profit on reissue of forfeited shares should be transferred to Capital Reserve. (ii) By directors. (iii) By others. [8][+Add: Forfeited shares (amount originally paid up)]. where, at the date of issue of the notification of the Government of India, in the Ministry of Industrial Development and Company Affairs (Department of Company Affairs), G.S.R. No. 129, dated the 3rd day of January, 1968, any balance sheet, in relation, to which this paragraph applies, has already been made out and laid before the company in Annual General Meeting, the adjustment referred to in this paragraph may be made in the first balance-sheet made out after the issue of the said no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Surplus i.e., balance in profit and loss account after providing for proposed allocations, namely:-- Dividend, Bonus or Re-serves. (6) Proposed additions to Reserves. (7) Sinking Funds.] Showing nature of investments and mode of valuation, for example, cost or market value and distinguishing between-- *(1) Investments in Government or Trust Securities. *(2) Investments in shares, debentures or bonds (showing separately shares fully paid-up and partly paid up and also distinguishing the different classes of shares and showing also in similar details investments in shares, debentures or bonds of subsidiary companies. (3) Immovable properties. [12][(4) Investments in the capital of partnership firms.] [13][(5) Balance of unutilised monies raised by issue.] *Aggregate amount of company's quoted investment and also the market value thereof shall be shown. Aggregate amount of company's unquoted investments shall also be shown. [14][All unutilised monies out of the issue must be separately disclosed in the Balance Sheet of the company indicating the form in which such unutilised funds have been invested.] Current Assets, Loans and Advances: A. Current Assets [15][Loans from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. *(7B) Bank balances-- [24][*In regard to bank balances, particulars to be given separately of-- (a) with Scheduled Banks, and (b) with others. (a) the balances lying with Scheduled Banks on current accoounts, call accounts and deposit accounts; (b) the names of the bankers other than Scheduled Banks and the balance lying with each such banker on current accounts, call accounts and deposit accounts and the maximum amount outstanding at any time during the year from each such banker; and (c) the nature of the interest, if any, of any director or his relative or the [25][* * *] in each of the bankers (other than Scheduled Banks) referred to in (b) above.] [26][All unutilised monies out of the issue must be separately disclosed in the Balance Sheet of the company indicating the form in which such unutilised funds have been invested.] Unsecured Loans: (1) Fixed Deposits. +[27][Loans from directors, [28][***] manager should be shown separately. Interest accrued and due on Unsecured Loans should be included under the appropriate sub-heads under the head "Unsecured Loans".] +(2) Loans and Advances from subsidiaries. +(3) Short Term Loans and Advances: (a) From Banks. (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The period for which the dividends are in arrear or if there is more than one class of shares, the dividends on each such class are in arrear, shall be stated. ++(3) Arrears of fixed cumulative dividends. (4) Estimated amount of contracts remaining to be executed on capital account and not provided for. (1) Preliminary expenses. (2) Expenses including commission or brokerage on underwriting or subscription of shares or debentures. The amount shall be stated before deduction of in-come-tax, except that in the case of tax-free dividends the amount shall be shown free of income-tax 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany's debentures are held by a nominee or a trustee for the company, the nominal amount of the debentures and the amount at which they are stated in the books of the company shall be stated. [47](l) A statement of investments (whether shown under "Investment" or under "Current Assets" as stock-in-trade) separately classifying trade investments and other investments should be annexed to the balance sheet, showing the 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in separate Schedules. The Schedules shall incorporate all the information required to be given under A--Horizontal Form read with notes containing general instructions 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied. (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 classified in accordance with the classification adopt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts 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 separate and distinct item against an appropriate account head in the Profit and Loss Account and shall not be combined with any other item to be shown Under 'Miscellaneous expenses'.] (xi) (a) The amount of income from investments, distinguishing between trade investments and other investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (c) in any other manner].] [79][4C. In the case of manufacturing companies, the profit and loss account shall also contain, by way of a note in respect of each class of goods manufactured, detailed quantitative information in regard to the following, namely:-- (a) the licensed capacity (where licence is in force); (b) the installed capacity; and (c) the actual production. Note 1.--The licensed capacity and installed capacity of the company as on the last date of the year to which the profit and loss account relates, shall be mentioned against items (a) and (b) above, respectively. Note 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act. 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 accounts, relate to the profit and loss account for the period which entered on the corresponding date of the previous year. PART III Interpretation 7. (1) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires,-- (a) the expression "provision" shall, subject to sub-clause (2) of this clause, mean any amount written off or retained by way of providing for depreciation renewals or diminution in value of assets, or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy; (b) the expression "reserve" shall not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... monetary terms) Item Code No. (ITC Code) .......... Product Description .................. .................. .................. Item Code No. (ITC Code) .......... Product Description .................. .................. .................. Item Code No. (ITC Code) .......... Product Description .................... .................... .................... * Note: for ITC Code of Products please refer to the publication Indian Trade Classification based on harmonized commodity description and coding system by Ministry of Commerce, Directorate General of Commercial Intelligence & Statistics, Calcutta-700 001. Annexure I Code List 1: State Codes State Code State Name State Code State Name 01 Andhra Pradesh 02 Assam 03 Bihar 04 Gujarat 05 Haryana 06 Himachal Pradesh 07 Jammu & Kashmir 08 Karnataka 09 Kerala 10 Madhya Pradesh 11 Maharashtra 12 Manipur 13 Meghalaya 14 Nagaland 15 Orissa 16 Punjab 17 Rajasthan 18 Tamil Nadu 20 Uttar Pradesh 21 West Bengal 22 Sikkim 23 Arunachal Pradesh 24 Goa 52 Andaman Islands 53 Chandigarh 54 Dadra Islands 55 Delhi 56 Daman & Diu 57 Lakshadweep 58 Mizoram 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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