TaxTMI 
TaxTMI 
Amendment to Schedule III to the Companies Act, 2013
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.... shall be inserted and for the words "Tangible Assets", the words "Property, Plant and Equipment" shall be substituted; (B) in the "Notes", under the heading "General Instructions for Preparation of Balance Sheet", in paragraph 6,- (I) under the heading "A. Share Capital", after item (l) and the entries relating thereto, the following shall be inserted, namely: "(m) A company shall disclose Shareholding of Promoters* as below: Shares held by promoters at the end of the year % Change during the year*** S. No Promoter name No. of Shares** % of total shares** Total *Promoter here means promoter as defined in the Companies Act, 2013. ** Details shall be given separately for each class of shares *** percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue. " (II) under the heading "F. Short-term borrowings", after item (iv) and the entries relating thereto, the following shall be inserted, namely: ....
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....rsals shall be disclosed separately."; (VII) Under the heading "L. Long-term loans and advances", in item (i), sub-item (b) shall be omitted; (VIII) Under the heading "M. Other non-current assets",- (a) after item (i), the following shall be inserted, namely: "(ia) Security Deposits" (b) after item (iii), the following shall be inserted, namely: "(iv) For trade receivables outstanding, following ageing schedule shall be given: Trade Receivables ageing schedule (Amount in Rs.) Particulars Outstanding for following periods from due date of payment# Less than 6 months 6 months - 1 year 1-2 years 2-3 years More than 3 years Total (i) Undisputed Trade receivables - considered good (ii) Undisputed Trade Receivables - considered doubtful (iii) Disputed Trade Receivables considered good (iv) Disputed Trade Receivables considered doubtful # similar information shall be given where no due date of payment is specified, in that case disclosur....
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.... deeds held in the name of Whether title deed holder is a promoter, director or relative# of promoter*/director or employee of promoter/director Property held since which date Reason for not being held in the name of the company** PPE - Investment property - PPE retired from active use and held for disposal - others Land Building Land Building Land Building - - - - **also indicate if in dispute #Relative here means relative as defined in the Companies Act, 2013. *Promoter here means promoter as defined in the Companies Act, 2013. (i) Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017. (ii) Following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and ....
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....l plan, following Intangible assets under development completion schedule shall be given**: (Amount in Rs.) Intangible assets under development To be completed in Less than 1 year 1-2 years 2-3 years More than 3 years Project 1 Project 2 **Details of projects where activity has been suspended shall be given separately. (vi) Details of Benami Property held Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company shall disclose the following:- (a) Details of such property, including year of acquisition, (b) Amount thereof, (c) Details of Beneficiaries, (d) If property is in the books, then reference to the item in the Balance Sheet, (e) If property is not in the books, then the fact shall be stated with reasons, (f) Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor....
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....ereof shall be disclosed. (xi) Compliance with number of layers of companies Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be disclosed. (xii) Following Ratios to be disclosed:- (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt Service Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j) Return on Capital employed, (k) Return on investment. The company shall explain the items included in numerator and denominator for computing the above ratios. Further explanation shall be provided for any change in the ratio by more than 25% as c....
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....he Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the company shall disclose the following:- (I) date and amount of fund received from Funding parties with complete details of each Funding party. (II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries' or ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).; (iii) in Part II- Statement of Profit and Loss,- (A) under the heading "III. Total Revenue (I +II)", for the word "Revenue", the word "Income" shall be substituted; (B) under the heading "General Instructions for Prepa....
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....cy/ virtual currency."; (b) in Division II, (i) under the heading "General instructions for preparation of Financial Statements of a company required to comply with Ind AS", in paragraph 5, for the word "Turnover", at both the places where it occurs, the words "Total Income" shall be substituted; (ii) in Part I- Balance Sheet,- (A) under the heading "Equity and Liabilities", in sub-heading "Liabilities",- (I) in item "(1) Non-current liabilities", in sub-item "(a) Financial Liabilities", after (i), the following shall be inserted, namely:- "(ia) Lease liabilities" (II) in item "(2) Current Liabilities", in sub-item "(a) Financial Liabilities", after (i), the following shall be inserted, namely:- "(ia) Lease liabilities" (B) for the heading "Statement of Changes in Equity" and the entries relating thereto, the following shall be substituted, namely: "STATEMENT OF CHANGES IN EQUITY Name of the Company.............. A. Equity Share Capital (1) Current reporting period Balance at the beginning of the c....
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....p; Total Compre hensive Income for the current year Dividends Transfer to retained earnings Any other change (to be specified) Balance at the end of the current reporting period  ....
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....bsp; Balance at the end of the previous reporting period Note: Remeasurment of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of such items alongwith the relevant amounts in the Notes or shall be shown as a separate column under Reserves and Surplus " (C) in the "Notes", under the heading "General Instructions For Preparation of Balance Sheet",- (I) In paragraph 6,- (a) under the heading "A. Non-Current Assets",- (i) under the sub-heading "I. Property, Plant and Equipment", for item (iii), the following item shall be substituted, namely:- "(iii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showin....
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.... the entries relating thereto, the following shall be substituted, namely:- "IX. Other financial assets (i) Security Deposits (ii) Bank deposits with more than 12 months maturity (iii) others(to be specified)" ; (b) under the heading "B. Current Assets",- (i) in the sub-heading "III. Trade Receivables", after item (iii) and the entries relating thereto, the following shall be inserted, namely:- " (iv) For trade receivables outstanding, following ageing schedule shall be given: Trade Receivables ageing schedule (Amount in Rs.) Particulars Outstanding for following periods from due date of payment# Less than 6 months 6 months - 1 year 1-2 years 2-3 years More than 3 years Total (i) Undisputed Trade receivables - considered good (ii) Undisputed Trade Receivables - which have significant increase in credit risk (iii) Undisputed Trade Receivables - credit impaired (iv) Disputed Trade Receivables-considered good (v) Disputed Trade Receivables - which have significant increase in credit risk (vi) Disputed Trade Receivables - credit imp....
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....standing for following periods from due date of payment# Less than 1 year 1-2 years 2-3 years More than 3 years Total (i) MSME (ii) Others (iii) Disputed dues - MSME (iv)Disputed dues - Others # similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction. Unbilled dues shall be disclosed separately"; (g) after heading "J" and the entries relating thereto, the following shall be inserted, namely:- "JA. Where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used."; (h) heading K and the entries relating thereto, shall be omitted; (i) after heading K and the entries relating thereto, the following shall be inserted, namely:- "L. Additional Regulatory Information (i) Title deeds of Immovable Properties not held in name of the Company The company shall provide the details o....
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....fying any terms or period of repayment, Type of Borrower Amount of loan or advance in the nature of loan outstanding Percentage to the total Loans and Advances in the nature of loans Promoter Directors KMPs Related Parties (vi) Capital-Work-in Progress (CWIP) (a) For Capital-work-in progress, following ageing schedule shall be given: CWIP aging schedule (Amount in Rs.) CWIP Amount in CWIP for a period of Total* Less than 1 year 1-2 years 2-3 years More than 3 years Projects in progress Projects temporarily suspended *Total shall tally with CWIP amount in the balance sheet. (b) For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**: &nbs....
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.... Nature of proceedings, status of same and company's view on same. (ix) where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following:- (a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts; (b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed. (x) Wilful Defaulter* Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given: (a) Date of declaration as willful defaulter, (b) Details of defaults (amount and nature of defaults) * wilful defaulter" here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India. (xi) Relationship with Struck off Companies Where....
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....any 'in accordance with the Scheme' and 'in accordance with accounting standards' and any deviation in this regard shall be explained. (xvi) Utilisation of Borrowed funds and share premium: (A) Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company shall disclose the following:- (I) date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary. (II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries. ....
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....the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and shall also state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year. (m) Corporate Social Responsibility (CSR) Where the company covered under section 135 of the Companies Act, the following shall be disclosed with regard to CSR activities:- (i) amount required to be spent by the company during the year, (ii) amount of expenditure incurred, (iii) shortfall at the end of the year, (iv) total of previous years shortfall, (v) reason for shortfall, (vi) nature of CSR activities, (vii) details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard, (viii)where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year shall be shown separately. (n) details o....
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.... Exchange differences on translating the financial state ments of a foreign operation Other items of Other Compre hensive Income (specify nature) Balance at the beginning of the current reporting period Changes in accountin g policy/pri or period errors Restat ed balanc e at the beginn ing of the current reporti ng period Total Compreh ensive Income for the current year ....
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....bsp; Restat ed balanc e at the beginn ing of the previo us reporti ng period Total Compreh ensive Income for the previous year Dividend s Transfer to retained earnings Any other change (to be spe....
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....of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately."; (III) under the heading "(J) Other Intangible Assets", for item (ii)), the following item shall be substituted, namely:- "(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, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of intangible assets) and other adjustments and the related amortization and impairment losses or reversals shall be disclosed separately." (IV) after heading (K) and the entries relating thereto, the following shall be inserted, namely:- "(KA) For trade payables due for payment, following ageing schedule shall be given: Trade Payables aging schedule (Amount in Rs.) Particulars Outstanding for following periods from due dat....
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....of promoter/director Property held since which date Reason for not being held in the name of the company** PPE - Investment property - Non-current asset held for sale - others Land Building Land Building Land Building - - - - **also indicate if in dispute #Relative here means relative as defined in the Companies Act, 2013. *Promoter here means promoter as defined in the Companies Act, 2013. " (ii) The company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. (iii) Where the Company has revalued its Property, Plant and Equipment (including Rightof-Use Assets), the company shall disclose as to whether the revaluation is based on valuation by a Registered Valuer as defined under rule 2 of Companies (Registered Va....
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....ent Amount in CWIP for a period of Total* Less than 1 year 1-2 years 2-3 years More than 3 years Projects in progress Projects temporarily suspended * Total shall tally with the amount of Intangible assets under development in the balance sheet. (b) For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, following Intangible assets under development completion schedule shall be given**: (Amount in Rs.) Intangible assets under development To be completed in Less than 1 year 1-2 years 2-3 years More than 3 years Project 1 Project 2 **Details of projects where activity has been suspended shall be given separately. (viii) Details of Benami Property held Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, the company shall disclos....
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....Registration of charges or satisfaction with Registrar of Companies (ROC) Where any charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed. (xiii) Compliance with number of layers of companies Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be disclosed. (xiv) Following Ratios shall be disclosed. (a) Capital to risk-weighted assets ratio (CRAR) (b) Tier I CRAR (c) Tier II CRAR (d) Liquidity Coverage Ratio (xv) Compliance with approved Scheme(s) of Arrangements Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the C....
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.... the other intermediaries' or ultimate beneficiaries. (III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries (IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).; (ii) in Part II- Statement of Profit and Loss, under the heading "General Instructions for Preparation of Statement of Profit and Loss", in paragraph "11. Additional Information", after item "iv.", and the entries relating thereto, the following items shall be inserted, namely:- "v. undisclosed income The Company shall give details of any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme. Also, state whether the previously unrecorded income and related ....