Amendments In Division I of Schedule III of Companies Act 2013

Akansha Rathi 01 Jul 2022 2,076 Views 0 comment Print Company Law | Articles

Sponsored

Effective from 01st April 2021.(Notification Dated 24th March 2021)

Gist of changes in Division I (applicable for companies whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006)

SR.NO	AMENDMENTS
1	Rounding off the figures appearing in the Financial Statements is mandatory depending upon total Income.
2	Tangible assets item is replaced by Property, Plant and Equipment and Intangible assets
3	In share capital Shareholding of Promoters shall be disclosed along with % of changes during the year.
4	Current maturities of Long term borrowings shall be disclosed separately in short term borrowing.
5	Schedule for Trade Payable dues for payment has to be mentioned about outstanding dues dates of payments for period < 1year to > 3 years of MSME or others and their respective disputed dues.
6	Reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period, of any changes through business combinations, amount of change due to revaluation (in case it is 10% or more in the aggregate of the net carrying value) and the related depreciation and impairment losses/reversals shall be disclosed separately. Unbilled dues shall be disclosed separately.
7	“Security deposits” shall be disclosed under “Other non current assets”
8	Schedule for trade receivables outstanding from due dates of payments for < 6 month to >3years for disputed and undisputed trade receivables, considered good or doubtful has been inserted. Unbilled dues shall be disclosed separately.
9	Company has to disclose the details of any borrowing from bank or financial institutions which has not used for specified purpose.
10	Company has to disclose that revaluations of any property, plant and equipment has been valued by registered valuer.
11	Title deed of Immovables property not held in companies name: Companies has to provides the details of Immovables property whose title deeds are not held in name of the company in format containing item of balance sheet (PPE, Investments property, PPE Retired from active use and held for disposal, & others), Description of item of property, Date since property held, its gross carrying amount, whose name mentioned in title deed or whether title deed holder is promoters, directors or any of their relatives, reason of not holding title deed in name of company.
12	Disclosure has to be made if loans or advances in nature of loans are granted to promoters, Directors, KMP or their related parties.
13	Capital Work in Progress(CWIP) details has to be disclosed which shall includes details of amount in CWIP for period of < 1year to > 3years for projects in progress and projects temporarily suspended.(Similar information is to be provided in intangible assets under development)
14	Capital Work in Progress(CWIP) Completion schedule has to be provided whose completion period or cost exceeds its original plan and provide details of when it will be completed. Details of suspended projects has to be separately disclosed. (Similar information is to be provided in intangible assets under development completion schedule)
15	Any proceedings initiated or pending against company for holding any benami property under Benami Transactions (Prohibition) Act, 1988 has to disclose the details of such property, amounts, details of beneficiaries, if property mentioned in books then give reference in balance sheet, if not mentioned then disclose the reasons, details of proceedings.
16	If the company has borrowing from bank or financial institution by providing security of current assets then company has to disclose whether quarterly returns or statements filed with lenders tally with books of accounts, if not then provide summary of reconciliation and reason for the same.
17	If company is declared by lenders as wilful defaulters, then the company has to provide date of declaration and details of defaults.
18	If the company has any transaction with struck off companies then it has to provide details of stuck off companies, relationship, nature of transaction, amount outstanding.
19	When company has defaulted to register the charges or its satisfaction with registrar within time then details and reasons has to be disclosed.
20	When company has not complied with the restriction of layer of subsidiary then it has to disclosed the Name, CIN, Relationship and extend of holding in downstream subsidiary which are beyond the limits.
21	Current ratio, Debt-Equity Ratio, Debt Service Coverage Ratio, Return on Equity Ratio, Inventory turnover ratio, Trade Receivables turnover ratio, Trade payables turnover ratio, Net capital turnover ratio, Net profit ratio, Return on Capital employed, Return on investment has to be disclosed. Explanation has to be provided if >25% changes in ratio as compared to previous year.
22	When any scheme of arrangements has been approved, then the company has to disclose the effect in books of accounts in accordance with scheme and accounting standards and deviations if any.
23	If company has provided any advances, loans or invested fund in other person/entity and such person/entity(Intermediary) further invest, lend or provide any guarantee on behalf of company, then company has to disclose the date and details of amount lent, invest in intermediary, and details of further investing, lending made by intermediaries, and date, amount of guarantee, security provided to or on behalf of ultimate beneficiaries, declarations that relevant Foreign Exchange Management Act, 1999 provisions has been complied and does not violate Prevention of Money Laundering Act, 2002.
24	When company receive any fund from any person/entity with understanding to invest, lend, provide any guarantee to other persons/entities, then disclosures has to be made about date and details of fund received, and details of further investing, lending made, and date, amount of guarantee, security provided to or on behalf of ultimate beneficiaries, declarations that relevant Foreign Exchange Management Act, 1999 provisions has been complied and does not violate Prevention of Money Laundering Act, 2002.
25	In profit & Loss statement, “Total revenue” word is substituted by “Income”
26	In General Instruction for preparing profit & Loss “Grants or donations received by section 8 companies” item has been inserted.
27	Disclosures has to be provided about any undisclosed income
28	Companies to whom section 135 Corporate Social Responsibility (CSR) is applicable shall provide the disclosure about amount required to spend, actual expenditures, shortfall, nature of activity, etc.
29	Companies who have traded or invested in Crypto currency or Virtual Currency during the financial year, shall disclosed the details of profit and loss, amount of currency held or details of advance/deposits taken for purpose of such trading .