TaxTMI 
TaxTMI 
Form of Balance-sheet The balance sheet of a company shall be either in horizontal form or vertical form
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.... to accounts 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 (i)&nbs....
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.... (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 ....
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....twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect 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....
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....h of the specified heads). (ii) A reserve specifically represented by earmarked investments shall be termed as a 'fund'. (iii) Debit balance of statement of profit and loss shall be shown as a negative figure under the head 'Surplus'. Similarly, the balance of 'Reserves and Surplus', after adjusting negative balance of surplus, if any, shall be shown under the head 'Reserves and Surplus' even if the resulting figure is in the negative. C. Long-Term Borrowings (i) Long-term borrowings shall 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 bee....
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....nbsp; 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 for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed. Share application money not exceeding the issued capital and to the extent not refundable shall be shown u....
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....es, formulae, models, designs and prototypes. (h) Licenses and franchise. (i) Others (specify nature). (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)&n....
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....urrent assets Other non-current assets shall be classified as: (i) Long-term Trade Receivables (including trade receivables on deferred credit terms); (ii) Others (specify nature); (iii) Long-term Trade Receivables, shall be sub-classified as: (i) (a) Secured, considered good; (b) Unsecured considered good; (c) Doubtful. (ii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (iii) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person 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 debenture....
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....vate companies respectively in which any director is a partner or a director or a member should be separately stated. Q. Cash and cash equivalents (i) Cash and cash equivalents shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (c) Cash on hand; (d) Others (specify nature). (ii) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (iii) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iv) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. (v) Bank deposits with more than 12 months maturity shall be disclosed separately. R. Short-term loans and advances (i) Short-term loans and advances shall be classified as: (a) Loans and advances to related parties (giving details thereof); (b) Others (specify nature). (ii) The above shall a....
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....TEMENT OF PROFIT AND LOSS Name of the Company......................... Profit and loss statement for the year ended ........................... (Rupees in............) Particulars Note No. Figures for the current reporting period Figures for the previous reporting period I. Revenue from operations xxx xxx II. Other income xxx xxx III. Total Revenue (I + II) xxx xxx IV. Expenses: Cost of materials consumed xxx xxx Purchases of Stock-in-Trade xxx xxx Changes in inventories of finished goods work-in-progress and Stock-in-Trade xxx xxx Employee benefits expense Finance costs Depreciation and amortization expense Ot....
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....l 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 income on the following items:- (i) (a) Employee Benefits Expense [showing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses]; ....
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.... (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) 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; ....
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....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 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 par....
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....ence 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] 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 21-3-19....
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....nt 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. GSR 78, dated 4-1-1963. [77] The word "and" omitted by Notification No. GSR 455, dated 27-4-1974. [78] Substituted, 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. HORIZON....
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....eduction 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 ^[4][Specify the source from which bonus shares are issued, e.g., capitalisa- tion of profits or Reserves or from Share Premium Account.] ^[5][Of the above shares ..... shares are allotted as fully paid-up by way of bonus shares*] Less: Calls unpaid: ^[6][(i) By managing agent or secretaries and treasurers and where the managing agent or secretaries and treasurers are a firm, by the partners thereof, and where the managing agent or secretaries and treasurers are a private company by the directors or members of that company.] 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....
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.... 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 writing up shall also show the amount of increase made. ^[10][Explanation.-Nothing contained in the preceding two paragraphs shall apply to any adjustment made in accordance with the second paragraph.] *Reserves and Surplus Investments *Additions and deductions since last balance sheet to be shown under each of the specified heads. The word "fund" in relation to any "Reserve" should be used only where such Reserve is specifically represented by earmarked investments. ^[11][(1) Capital Reserves. (2) Capital Redemption Reserve. (3) Share Premium Account (cc). (4) Other Reserves speci-fying the nature of each Reserve and the amount in respect thereof. Less: Debit balance in profit and loss account (if any) (h). (5) 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....
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....d 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 personal security; and (c) debts considered doubtful or bad. Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member to be separately stated. ^[20][Debts due from other companies under the same management within the meaning of sub-section (1B) of section 370, to be disclosed with the names of the Companies. The maximum amount due by directors or other officers of the company at any time during the year to be shown by way of a note. The ^[21][provisions to be shown under this head should not exceed the amount of debts stated to be considered doubtful or bad and any surplus of such ^[22][provision if already created, should be shown at every closing under "Reserves and Surplus" (in the liabilities side) under a separate sub-head "Reserve for Doubtful or Bad Debts".  ....
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....p; A. Current Liabilities ^[33][The name(s) of small scale industrial under taking(s) to whom the company owe any sum together with interest outstanding for more than thirty days, are to be disclosed.] ^[34][(1) Acceptances. (2) Sundry creditors. ^[35][(i) Total outstanding dues to small scale industrial undertaking(s); and (ii) Total outstanding dues of creditors other than small scale industrial undertaking(s).] (3) Subsidiary companies. (4) Advance payments and unexpired discounts for the portion for which value has still to be given e.g., in the case of the following classes of companies:- Newspaper, Fire Insurance, Theatres, Clubs, Banking, Steamship Companies, etc. ^[36][(5) Investor Education and Protection Fund shall be credited by the following amounts namely:- (a) Unpaid dividend; (b) Unpaid application money received by the companies for allotment of securities and due for refund; (c) Unpaid Matured Deposits; (d) Unpaid Matured Debentures; (e) Interest accrued on (a) to (d) above.] (6) Other Liabilities (if any). (7) Interest accrued but not due on loans.] B.....
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....nbsp; (b) Naye Paise can also be given in addition to Rupees, if desired. (c) In the case of ^[41][subsidiary companies] the number of shares held by the holding company as well as by the ultimate holding company and its subsidiaries must be separately stated. The auditor is not required to certify the correctness of such shareholdings as certified by the management. ^ [42][(cc) The item "Share Premium Account" shall include details of its utilisation in the manner provided in section 78 in the year of utilisation.] (d) Short Term Loans will include those which are due for not more than one year as at the date of the balance-sheet. (e) Depreciation written off or provided shall be allocated under the different asset heads and deducted in arriving at the value of Fixed Assets. (f) Dividends declared by subsidiary companies after the date of the balance sheet ^[43][should not be included] unless they are in respect of period which closed on or before the date of the balance sheet. (g) An....
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....rent 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 the case of the first balance sheet 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 balance sheet shall be also given in the balance sheet.The requirement in this behalf shall, in the case of companies preparing quarterly or half-yearly accounts, etc., relate to the balance sheet for the corresponding date in the previous year. (o) The amounts to be shown under Sundry Debtors shall include the amounts due in respect of goods sold or services rendered or in respect of other contractual obligations but shall not include the amounts which are in the nature of loans or advances. ^[48][(p) Current accounts with directors, ^[49][* * *] and Manager, whether they are in credit or debit, shall be shown separately.] ^[50][(q) A small scale industrial u....
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....t 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 references as specified in that sub-section. 2. The profit and loss account- (a) shall be so made out as clearly to disclose the result of the working of the company during the period covered by the account ; and (b) shall disclose every material feature, including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature. 3. The profit and loss account shall set out the various items relating to the income and expenditure of the company arranged under the most convenient heads; and in particular, shall disclose the following information in respect of the period covered by the account:- &....
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....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 adopted by the Chief Controller of Imports and Exports in granting the import licences. Note 3.-In giving the break-up of purchases, stocks and turnover, items like spare parts and accessories, the list of which is too large to be included in the break-up, may be grouped under suitable headings without quantities, provided all those items, which in value individually account for 10 per-cent or more of the total value of the purchases, stocks, or turnover, as the case may be, are shown as separate and distinct items wi....
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....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 ....
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....bsp; (iv) ^[72][* * *]; (v) ^[73][* * *]; ^[74][(vi) other allowances and commission including guarantee commission (details to be given)]; (vii) any other perquisites or benefits in cash 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 manag....
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....nbsp; (iii) capital goods; (b) expenditure in foreign currency during the financial year on account of royalty, know-how, professional, consultation fees, interest, and other matters; (c) value of all imported raw materials, spare parts and components consumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; (d) the amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the number of non-resident share-holders, the number of shares held by them on which the dividends were due and the year to which the dividends related; (e) earnings in foreign exchange classified under the following heads, namely:- (i) export of goods calculated on F.O.B. basis; (ii) royalty, know-how, professional and consultation fees; &nb....
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....ent liabilities. (2) Where- (a) any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, not being an amount written off in relation to fixed assets before the commencement of this Act; or (b) any amount retained by way of providing for any known liability; is in excess of the amount which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of this Schedule as a reserve and not as a provision. 8. For the purposes aforesaid, the expression "quoted investment" means an investment as respects which there has been granted a quotation or permission to deal on a recognised stock exchange, and the expression "unquoted investment" shall be construed accordingly. ^[80][Part IV Balance Sheet Abstract and Company's General Business Profile I. Registration Details Registration No. ...... State Code .. (Refer Code List) Balance Sheet Date .. .. .. Date Month Year II. Capital raised during the year (Amount i....