FAQs on Schedule III of Companies Act 2013 (Division II – For Ind AS entities)

Where compliance with the requirements of the Act including Indian Accounting Standards (except the option of presenting assets and liabilities in the order of liquidity as provided by the relevant Ind AS) as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head / sub-head or any changes inter se, in the financial statements or statements forming part thereof, the same shall be made and the requirements of this Schedule shall stand modified accordingly.

The disclosure requirements specified in this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Indian Accounting Standards. Additional disclosures specified in the Indian Accounting Standards shall be made in the Notes or by way of additional statement(s) unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act shall be made in the Notes in addition to the requirements set out in this Schedule.

Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as below:

Once a unit of measurement is used, it should be used uniformly in the Financial Statements.

Financial Statements shall contain the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including Notes except in the case of first Financial Statements laid before the company after incorporation.

Financial Statements shall disclose all ‘material’ items, i.e., the items if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size and nature of the item judged in the particular circumstances.

The components of equity are:
Equity
(a) Equity Share capital
(b) Other Equity

The components of non-current liabilities are as under:
Non-current liabilities
(a) Financial Liabilities

(i) Borrowings
(ia) Lease liabilities
(ii) Trade payables

(A) Total outstanding dues of small enterprises and micro enterprises and
 (B) Total outstanding dues of creditors other than small enterprises and micro                   enterprises
(iii) Other financial liabilities (other than those specified in (b) below, to be specified)

(b) Provisions
(c) Deferred tax liabilities (Net)
(d) Other non-current liabilities

The components of current liabilities are:
Current liabilities
(a) Financial Liabilities

(i) Borrowings
(ia) Lease liabilities
(ii) Trade payables

(A) Total outstanding dues of small enterprises and micro enterprises and

(B) Total outstanding dues of creditors other than small enterprises and micro enterprises
(iii) Other financial liabilities (other than those specified in (c) below)

(b) Other current liabilities
(c) Provisions
(d) Current Tax Liabilities (Net)

The components of non-current assets are:

Non-current assets

(a)    Property, Plant and Equipment

(b)   Capital work-in-progress

(c)    Investment Property

(d)   Goodwill

(e)    Other Intangible assets

(f)    Intangible assets under development

(g)    Biological Assets other than bearer plants

(h)   Financial Assets

(i)    Investments

(ii)   Trade receivables

(iii)  Loans

(iv)  Others (to be specified)

(i)    Deferred tax assets (net)

(j)     Other non-current assets

The components of current assets are:

Current assets

(a) Inventories

(b) Financial Assets

(i) Investments

(ii) Trade receivables

(iii) Cash and cash equivalents

(iv) Bank balances other than (iii) above

(v) Loans

(vi) Others (to be specified)

(c) Current Tax Assets (Net)

(d) Other current assets

A receivable shall be classified as a ‘trade receivable’ if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business.

A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business.

Non-current assets are classified and disclosed as follows:

Non-Current Assets

1. Property, Plant and Equipment

(i)    Classification shall be given as:

(a)    Land.

(b)   Buildings.

(c)    Plant and Equipment.

(d)   Furniture and Fixtures.

(e)    Vehicles.

(f)    Office equipment.

(g)    Bearer Plants

(h)   Others (specify nature).

(ii)   Assets under lease shall be separately specified under each class of assets.

(iii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately

Investment properties are disclosed as follows:

Investment Property

A reconciliation of the gross and net carrying amounts of each class of property at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortisation and impairment losses/reversals shall be disclosed separately

Goodwill is disclosed in Financial Statements as follows:
Goodwill
A reconciliation of the gross and net carrying amount of goodwill at the beginning and end of the reporting period showing additions, impairments, disposals and other adjustments.

Other intangible assets are disclosed as follows:

Other Intangible assets

(i)     Classification shall be given as:

(a)   Brands /trademarks.

(b)   Computer software.

(c)   Mastheads and publishing titles.

(d)   Mining rights.

(e)   Copyrights, patents, other intellectual property rights, services and operating rights.

(f)    Recipes, formulae, models, designs and prototypes.

(g)   Licenses and franchises.

(h)   Others (specify nature).

 (ii)    A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortisation and impairment losses/reversals shall be disclosed separately.

Biological assets other than bearer plants are disclosed in Financial Statements as follows:

Biological Assets other than bearer plants

A reconciliation of the carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments shall be disclosed separately.

Investments are classified and disclosed as follows:

Investments

(i)    Investments shall be classified as:

(a)   Investments in Equity Instruments;

(b)   Investments in Preference Shares;

(c)   Investments in Government or trust securities;

(d)   Investments in debentures or bonds;

(e)   Investments in Mutual Funds;

(f)    Investments in partnership firms;

(g)   Other investments (specify nature).

Under each classification, details shall be given of names of the bodies corporate that are

(i)    subsidiaries,

(ii)   associates,

(iii)  joint ventures, or

(iv)  structured entities, in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). Investments in partnership firms along with names of the firms, their partners, total capital and the shares of each partner shall be disclosed separately.

(ii)   The following shall also be disclosed:

(a)    Aggregate amount of quoted investments and market value thereof;

(b)   Aggregate amount of unquoted investments;

(c)    Aggregate amount of impairment in value of investments.

Trade Receivables are classified and disclosed as follows:
Trade Receivables
(i) Trade receivables shall be sub-classified as:
(a) Secured, considered good;
(b) Unsecured considered good;
(c) Doubtful.
(ii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.
(iii) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.
iv) For trade receivables outstanding, following ageing schedule shall be given:

Trade Receivables ageing schedule

(Amount in Rs)

# similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately.

Loans are classified and disclosed as follows:

Loans

(i)    Loans shall be classified as:

(a)   Security Deposits;

(b)   Loans to related parties (giving details thereof);

(c)   Other loans (specify nature).

(ii)   The above shall also be separately sub-classified as:

(a)   Secured, considered good;

b) Unsecured, considered good;

(c)   Doubtful.

(iii)  Allowance for bad and doubtful loans shall be disclosed under the relevant heads separately.

(iv)  Loans due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

Bank deposits with more than 12 months maturity shall be disclosed under ‘Other financial assets’.

Other non-current assets are classified and disclosed as follows:

Other non-current assets

Other non-current assets shall be classified as-

(i)    Capital Advances;

(ii)   Advances other than capital advances;

1. Advances other than capital advances shall be classified as:

(a)   Security Deposits;

(b)   Advances to related parties (giving details thereof);

(c)   Other advances (specify nature).

2. Advances to directors or other officers of the company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. In case advances are of the nature of a financial asset as per relevant Ind AS, these are to be disclosed under ‘other financial assets’ separately.

(iii)          Others (specify nature).

Current investments are classified and disclosed as under:

Investments

(i)    Investments shall be classified as:

(a)   Investments in Equity Instruments;

(b)   Investment in Preference Shares;

(c)   Investments in government or trust securities;

(d)   Investments in debentures or bonds;

(e)   Investments in Mutual Funds;

(f)    Investments in partnership firms;

(g)   Other investments (specify nature).

Under each classification, details shall be given of names of the bodies corporate that are

subsidiaries,

associates,

joint ventures, or

structured entities, in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid).

1. ii) The following shall also be disclosed

(a)    Aggregate amount of quoted investments and market value thereof;

(b)   Aggregate amount of unquoted investments;

(c)   Aggregate amount of impairment in value of investments.

Inventories are classified and disclosed under current assets as follows:

Inventories

(i)    Inventories shall be classified as:

(a)   Raw materials;

(b)   Work-in-progress;

(c)   Finished goods;

(d)   Stock-in-trade (in respect of goods acquired for trading);

(e)   Stores and spares;

(f)    Loose tools;

(g)   Others (specify nature).

(ii)   Goods-in-transit shall be disclosed under the relevant sub-head of inventories.

(iii) Mode of valuation shall be stated.

Trade Receivables are classified and disclosed under current assets as follows:

Trade Receivables

(i) Trade receivables shall be sub-classified as:

(a)   Secured, considered good;

(b)   Unsecured considered good;

(c)   Doubtful.

(ii)   Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.

(iii)  Debts due by directors or other officers of the company or any of them   either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

For trade receivables outstanding, following ageing schedule shall be given:

Trade Receivables ageing schedule                                                                    

(Amount in Rs)

# similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately.

Cash and cash equivalents are disclosed as follows:

Cash and cash equivalents

Cash and cash equivalents shall be classified as:

(a)    Balances with Banks (of the nature of cash and cash equivalents);

(b)   Cheques, drafts on hand;

(c)    Cash on hand;

(d)   Others (specify nature).

1. Cash and bank balances: The following disclosures with regard to cash and bank balances shall be made:

(a)    Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated.

(b)   Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately.

(c)   Repatriation restrictions, if any, in respect of cash and bank balances shall  be separately stated.

Loans are presented as under:

Loans

(i)    Loans shall be classified as:

(a)   Security deposits;

(b)   Loans to related parties (giving details thereof);

(c)   Others (specify nature).

(ii)   The above shall also be sub-classified as:

(a)   Secured, considered good;

(b)   Unsecured, considered good;

(c)   Doubtful.

(iii) Allowance for bad and doubtful loans shall be disclosed under the relevant heads separately.

(iv) Loans due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated.

Other current assets are classified and presented in Financial Statements as under:

This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories.

Other current assets shall be classified as-

(i)    Advances other than capital advances

1. 1. Advances other than capital advances shall be classified as:

(a)    Security Deposits;

(b)   Advances to related parties (giving details thereof);

(c)    Other advances (specify nature).

1. 2. Advances to directors or other officers of the company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

(ii)  Others (specify nature)

Components of equity are as under:

Equity

1. Equity Share Capital

for each class of equity share capital:

(a)    the number and amount of shares authorised;

(b)   the number of shares issued, subscribed and fully paid, and subscribed but not fully paid;

(c)    par value per share;

(d)   a reconciliation of the number of shares outstanding at the beginning and at the end of the period;

(e)    the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital;

(f)    shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate;

(g)    shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held;

(h)   shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts;

(i)    For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

• • Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash.
  • Aggregate number and class of shares allotted as fully paid up by way of bonus shares.
  • Aggregate number and class of shares bought back.

(j)    Terms of any securities convertible into equity shares issued along with the earliest date of conversion in descending order starting from the farthest such date.

(k)   Calls unpaid (showing aggregate value of calls unpaid by directors and officers)

(l)    Forfeited shares (amount originally paid up)

(m) A company shall disclose Shareholding of Promoters* as under:

*Promoter here means promoter as defined in the Companies Act, 2013.

** Details shall be given separately for each class of   shares

*** percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue.

Components of other equity are as follows:

Other Equity

(i) ‘Other Reserves’ shall be classified in the notes as:

(a)    Capital Redemption Reserve;

(b)   Debenture Redemption Reserve;

(c)    Share Options Outstanding Account;

(d)   Others– (specify the nature and purpose of each reserve and the amount in respect thereof);

(Additions and deductions since last balance sheet to be shown under each of the specified heads)

(ii)   Retained Earnings represents surplus i.e. balance of the relevant column in the Statement of Changes in Equity.

(iii)  A reserve specifically represented by earmarked investments shall disclose the fact that it is so represented.

(iv)  Debit balance of Statement of Profit and Loss shall be shown as a negative figure under the head ‘retained earnings’. Similarly, the balance of ‘Other Equity’, after adjusting negative balance of retained earnings, if any, shall be shown under the head ‘Other Equity’ even if the resulting figure is in the negative.

(v)  Under the sub-head ‘Other Equity’, disclosure shall be made for the nature and amount of each item.

Components of borrowings under non-current liabilities are as under:

Borrowings

(i)    Borrowings shall be classified as:

(a)   Bonds/debentures

(b)   Term loans

I       from banks.

II     from other parties.

(c)   Deferred payment liabilities.

(d)   Deposits.

(e)   Loans from related parties.

(f)    Long term maturities of finance lease obligations

(g)   Liability component of compound financial instruments

(h)   Other loans (specify nature).

(ii)   Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.

(iii)  Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed.

(iv)  Bonds/debentures (along with the rate of interest, and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due.

(v)   Particulars of any redeemed bonds/ debentures which the company has power to reissue shall be disclosed.

(vi)  Terms of repayment of term loans and other loans shall be stated.

(vii) Period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case.

Components of other non-current liabilities are:

Other non-current liabilities

(a)    Advances

(b)  Others (specify nature)

Components of provision are:

Provisions

The amounts shall be classified as:

(a)    Provision for employee benefits.

(b)  Others (specify nature).

Classification of borrowings under current liabilities is as under:

Borrowings

(i)    Borrowings shall be classified as:

(a)   Loans repayable on demand

(I)    from banks.

(II)   from other parties.

(b)   Loans from related parties.

(c)   Deposits.

(d)   Other loans (specify nature).

(ii)   Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.

(iii)  Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed.

(iv)  Period and amount of default as on the balance sheet date in repayment of borrowings and interest, shall be specified separately in each case.

(v)  Current maturities of long-term borrowing shall be disclosed separately.

Components of other financial liabilities are as follows:

Other Financial Liabilities

Other Financial liabilities shall be classified as:

(a)    Omitted

(b)   Omitted

(c)    Interest accrued;

(d)   Unpaid dividends;

(e)    Application money received for allotment of securities to the extent refundable and interest accrued thereon;

(f)    Unpaid matured deposits and interest accrued thereon;

(g)    Unpaid matured debentures and interest accrued thereon;

(h)   Others (specify nature).

‘Long term debt’ is a borrowing having a period of more than twelve months at the time of origination

Other current liabilities and provisions would include the following:

Other current liabilities

The amounts shall be classified as:

(a)    Revenue received in advance;

(b)   Other advances (specify nature);

(c)   Others (specify nature);

Provisions

The amounts shall be classified as:

 (i)   Provision for employee benefits.

 (ii)  Others (specify nature).

(a)  the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year;

(b)  the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during each accounting year;

(c)   the amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006;

(d)   the amount of interest accrued and remaining unpaid at the end of each accounting year; and

(e)   the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.

For trade payables due for payment, the following ageing schedule shall be given:

Trade Payables aging schedule (Amount in Rs.)

# similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately.

According to Clause G of General instructions to Part I, Division II of Schedule III, the presentation of liabilities associated with group(s) of assets classified as held for sale and non-current assets classified as held for sale shall be in accordance with the relevant Indian Accounting Standards (Ind ASs).

Disclosure requirement related to Contingent liabilities and contingent assets is as under:

Contingent Liabilities and Commitments (to the extent not provided for)

(i)    Contingent Liabilities shall be classified as:

(a)    Claims against the company not acknowledged as debt;

(b)   Guarantees excluding financial guarantees;

(c)    Other money for which the company is contingently liable.

(ii)   Commitments shall be classified as:

(a)    Estimated amount of contracts remaining to be executed on capital account and not provided for;

(b)   Uncalled liability on shares and other investments partly paid;

(c)    Other commitments (specify nature).

According to clause I, of Part I, Division II of Schedule III of Companies Act 2013 the amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on irredeemable preference shares shall also be disclosed separately

According to clause J, of Part I, Division II of Schedule III of Companies Act 2013, Where in respect of an issue of securities made for a specific purpose the whole or part of amount has not been used for the specific purpose at the Balance Sheet date, there shall be indicated by way of note how such unutilised amounts have been used or invested. Also, where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used. (Clause JA)

The disclosure requirement related to title deed of immovable property not held in the name of the company, would be:
(i) Title deeds of Immovable Properties not held in name of the Company
The company shall provide the details of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company in following format and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.

#Relative here means relative as defined in the Companies Act, 2013.

*Promoter here means promoter as defined in the Companies Act, 2013

Disclosure of fair value of investment property would be as under:
(ii) Fair Value of investment property

The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

(iii) Revaluation of Property, Plant and Equipment (including Right-of-use Assets)

Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

(iv) Revaluation of intangible assets
Where the company has revalued its intangible assets, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

(v) Disclosure of Loans or Advances in the nature of loans to promoters, directors, KMPs and other related parties
The following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment,

(vi) Capital-Work-in Progress (CWIP)

(a) For Capital-work-in progress, following ageing schedule shall be given: CWIP aging schedule                                               (amount in Rs)

*Total shall tally with CWIP amount in the balance sheet.

(b) For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**:   (Amount in Rs.)

**Details of projects where activity has been suspended shall be given separately