As per recent press release on on 10th August, 2021 in respect of ‘MCA amends Schedule III of Companies Act on disclosure norms in financial statements

As MCA by amendment in Rules of Schedule III on 24th march 2021 has already made lot of amendments in Schedule III of Companies Act, 2013. Schedule III stands for Financial Statement including Balance sheet, Profit and Loss Account, Cash flow statement etc.

Purpose of Amendment:

By these amendments MCA increasing stringency in compliances and adding numerous additional disclosures in Financial Statement, Directors Report and Audit Report. The main purpose behind these amendments is more transparency

Recently Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Rajya Sabha mentioned that these amendments made in order to bring in greater transparency in reporting of financial statements.

He majorly focused on new disclosures with respect to the virtual currency/crypto currency transactions and CSR spending in financial statement.

Below mentioned are the disclosure with respect to the virtual currency/crypto currency transactions and CSR spending:

A. Details of Crypto Currency or Virtual Currency

Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed:-

i. profit or loss on transactions involving Crypto currency or Virtual Currency

ii. amount of currency held as at the reporting date,

iii. deposits or advances from any person for the purpose of trading or investing in Crypto Currency/virtual currency.

B. Details of 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:-

a) amount required to be spent by the company during the year,

b) amount of expenditure incurred,

c) shortfall at the end of the year,

d) total of previous years shortfall,

e) reason for shortfall,

f) nature of CSR activities,

g) details of related party transactions, e., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard,

h) 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 should be shown separately.


These amendment in disclosure requirement required to mention in Financial statement to be prepare for F.Y. 2021-22 i.e. for financial year ended 31st March 2022. These all new disclosures shall increase the transparency in many folds.


Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).

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September 2021