CS Divesh Goyal

MANDATORY DISCLOSURE IN BALANCE SHEET:

As per MCA Notification No. G.S.R. 308(E) dated 30th March, 2017 In the Companies Act, 2013, in Schedule III, in Division I, in Part I under the heading “General instructions for preparation of Balance Sheet” in paragraph 6, after clause ‘W’, the following clause shall be inserted namely:-

♦ “X. Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016 as provided in the Notification.

In the principal Act, in Schedule III, in Division II, in Part I under the heading “General instructions for preparation of Balance Sheet” in paragraph 6, after clause ‘J’, the following clause shall be inserted namely:-

♦ “K. Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016 as provided in the Table below:-

Consequently, the financial statement of all the Companies for financial year ended 31.03.2017 compulsory to provide information of Closing cash in hand as on 08.11.2016, (+) Permitted receipts, (-) Permitted payments, (-) Amount deposited in Banks, Closing cash in hand as on 30.12.2016.

DISCLOSURE IN AUDITOR REPORT:

As per MCA Notification No. G.S.R. 307(E) dated 30th March, 2017 there is an amendment in Companies (Audit and Auditors) Rules, 2014, in rule 11 after clause (c), the following clause shall be inserted, namely:—

♦ “(d) whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.”.

Rule 11 relates to matter to be included in ‘Auditor Report’. As a result, the Auditor Report for the financial year ended 31st March, 2017 it is binding for the auditors to bring up above mentioned information relating to Specified Bank Notes in its reports.

(Author – CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com)

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2 responses to “Disclosrue of Specified Bank Notes in Balance Sheet”

  1. Aayush Agrawal says:

    1.Purpose behind this notification and does it has tax impact.

  2. Aayush Agrawal says:

    1.Purpose behind this notification and does it has tax impact.
    2. As on 8th November certain cash on hand is there , but how the management disclose its denomination , it can be possible through checking of deposit slips , can there be any other alternative available to trace it out.

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