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)
