Division-III to the Schedule III to the Companies Act, 2013 was first notified by the Ministry of Corporate Affairs (MCA) in October, 2018 for the NonBanking Financial Companies (NBFCs) that are required to comply with the Indian Accounting Standards (Ind AS) and therefore, the Institute of Chartered Accountants of India (ICAI) through its Corporate Laws & Corporate Governance Committee (CL&CGC) brought out the Guidance Note on Division-III to the Schedule III to the Companies Act, 2013 in the year 2019 to assist the members in discharging their duties and responsibilities more effectively and efficiently.
In the year 2021, the MCA has revised Division-III to Schedule III to incorporate several additional disclosure requirements vide its notification dated 24th March 2021; thereby necessitating the need to revise the aforementioned Guidance Note earlier issued by ICAI in 2019.
Major amendments that have been introduced in Division-III relate to disclosure of Ageing Schedule of Trade Payables, Trade Receivables, Capital work in progress (CWIP) and Intangible Assets under developments, disclosure of shareholding of Promoters, Ratios, Undisclosed Income, Crypto Currency, and Wilful Defaulters.
In light of the same, the CL&CGC of ICAI has decided to revise the earlier edition of the Guidance Note to incorporate the guidance on additional and significant matters introduced vide recent amendments. I heartily congratulate Corporate Laws & Corporate Governance Committee of ICAI to for taking this initiative and coming up with the Revised Edition of Guidance Note on Division-III to Schedule III to the Companies Act, 2013. I compliment CA. Shriniwas Y. Joshi, Chairman, Corporate Laws & Corporate Governance Committee, CA. Anuj Goyal, Vice-Chairman and all the members of the Corporate Laws & Corporate Governance Committee who
have made invaluable contribution in the revision of this Guidance Note.
I am sure that the members and other stakeholders at large would find the Guidance Note immensely useful.
CA. Nihar N. Jambusaria