# 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;

1. Sub- item “(I a) Security Deposits” reclassified under “Other non-current assets” from “Long-term loans and advances” i.e. Security Deposit – To be shown separately under other non -current assets instead of Loans and advances.
2. Short Term Borrowings: From 1^st April 2021 onwards, the current maturities within 12 months from long term borrowings is required to be separately disclosed in the financial statements.
3. For trade receivables outstanding, both non-current and current following ageing schedule shall be given:

Trade Receivables ageing schedule

(Amount in )

# 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.”

1. 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.”;

Additional Regulatory Information

•  Title deeds of Immovable Property not held in name of the Company
  The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee whose title deeds are not held in the name of the company in format given below 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.

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

•  Capital-Work-in Progress (CWIP)
  (a). For Capital-work-in progress, following ageing schedule shall be given:

CWIP aging schedule

(Amount in )

*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**:

CWIP aging schedule

(Amount in )

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

•  Details of Benami Property held
  Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company shall disclose the following:-
  (a). Details of such property, including year of acquisition,
  (b). Amount thereof,
  (c). Details of Beneficiaries,
  (d). If property is in the books, then reference to the item in the Balance Sheet,
  (e). If property is not in the books, then the fact shall be stated with reasons,
  (f). Where there are proceedings against the company under this law as an co-conspirator of the transaction or as the transferor then the details shall be provided,
  (g). Nature of proceedings, status of same and company’s view on
•  Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following:-
  (a). Whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of
  (b). if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately
•  Willful Defaulter*
  Where a company is a declared willful defaulter by any bank or financial Institution or other lender, following details shall be given:
  (a). Date of declaration as willful defaulter,
  (b). Details of defaults (amount and nature of defaults),
  * “willful defaulter” here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Act) or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
•  Relationship with Struck off Companies
  Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details:-

1. Current Ratio
The current ratio indicates a company’s overall liquidity position. It is widely used by banks in making decisions regarding the advancing of working capital credit to their clients.
Current Ratio = Current Assets/ Current Liabilities

2. Debt – Equity Ratio
Debt-to-equity ratio compares a Company’s total debt to shareholders equity. Both of these numbers can be found in a Company’s balance sheet.
Debt – Equity Ratio = Total Debt/ Shareholder’s Equity

3. Debt Service Coverage Ratio
Debt Service coverage ratio is used to analyze the firm’s ability to pay-off current interest and installments. Debt Service Coverage Ratio = Earnings available for debt service / Debt Service
Earning for Debt Service = Net Profit before taxes + Non-cash operating expenses like depreciation and other amortizations + Interest + other adjustments like loss on sale of Fixed assets etc.
Debt service = Interest & Lease Payments + Principal Repayments. “Net Profit after tax” means reported amount of “Profit / (loss) for the period” and it does not include items of other comprehensive income.

4. Return on Equity (ROE):
It measures the profitability of equity funds invested in the Company. The ratio reveals how profitability of the equity-holders’ funds have been utilized by the Company. It also measures the percentage return generated to equity-holders. The ratio is computed as:ROE = Net Profits after taxes – Preference Dividend (if any) / Average Shareholder’s Equity

8. Net capital turnover ratio
It indicates a company’s effectiveness in using its working capital. The working capital turnover ratio is calculated as follows: Net Sales divided by the average amount of working capital during the same period.
Net capital turnover ratio = Net Sales/ Average Working Capital
Net Sales shall be calculated as total sales minus sales returns.
Working capital shall be calculated as current assets minus current liabilities.

9. Net profit ratio
It measures the relationship between net profit and sales of the business.
Net Profit Ratio = Net Profit / Net Sales
Net profit shall be after tax.
Net sales shall be calculated as total sales minus sales returns.

10. Return on capital employed (ROCE)
Return on capital employed indicates the ability of a company’s management to generate returns for both the debt holders and the equity holders. Higher the ratio, more efficiently is the capital being employed by the company to generate returns.
ROCE = Earnings before interest and taxes / Capital Employed Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax Liability

•  Compliance with approved Scheme(s) of Arrangements
  Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained.
•  Utilization of Borrowed funds and share premium:
  (A). Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
  (i). directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
  (ii). provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company shall disclose the following:-

1. date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each
2. date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate
3. date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries
4. declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;

•  Undisclosed income
  The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.;
•  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,
  (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.g., 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
•  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:-

The majority of the modifications made in Schedule III and CARO 2020 were to match the two reporting frameworks and improve transparency between the company and the users of financial statements. It further enabled the reduction of the risk of fraud and other unethical behavior on part of the companies.

CARO 2020 provides a para-wise commentary on Companies (Auditor’s Report) Order. It is a complete guide on the applicability and the matters that need to be reported by an Auditor on CARO, supplemented by Clause-wise Ready Reckoner, FAQs, Case Studies, in a Nutshell, etc.These amendments bring in numerous additional disclosures in Financial Statement, Directors Report and Audit Report. Companies will have to gear up to comply with the additional disclosure requirements with regards to these requirements; MCA/ICAI should come up with guidance/clarifications so as to enable consistency in reporting.Here is an overview of the requirement of schedule III specifically with respect to Division-II of Schedule-III-Financial Statements for a company whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.

As per Ind AS 101, a company’s first Ind AS financial statements shall include at least three balance sheets, two statements of profit and loss, two statements of cash flows and two statements of changes in equity and related notes. This Guidance Note does not deal with the presentation aspects of reconciliations that are required to be provided as a part of a company’s first Ind AS financial statements.If an entity publishes a complete set of Financial Statements in its interim financial report, the form and content of those statements shall conform to the requirements of Ind AS 1 for a complete set of Financial Statements.

To comply with all these amendments, the Company/Auditor needs to check every aspect of financial transactions thoroughly and needs to incorporate these amendments in the financials of 31-03-2022 onwards

1. An entity shall classify an asset as current when-
   (i). it expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
   (ii). it holds the asset primarily for the purpose of trading;
   (iii). it expects to realize the asset within twelve months after the reporting period; or
   (iv). the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
   (v). An entity shall classify all other assets as non-current.
2. The operating cycle of an entity is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. When the entity’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.
3. An entity shall classify a liability as current when-
   (i). it expects to settle the liability in its normal operating cycle;
   (ii). it holds the liability primarily for the purpose of trading;
   (iii). the liability is due to be settled within twelve months after the reporting period; or
   (iv). it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification
   (v). An entity shall classify all other liabilities as non-current.
4. 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.

III. 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.
IV. Other Intangible assets:

•  Classification shall be given as:
  (a). Brands or trademarks
  (b). Computer software
  (c). Mastheads and publishing titles
  (d). Mining rights copyrights, patents, other intellectual property rights, services and operating rights
  (e). Recipes, formulae, models, designs and prototypes
  (f). License and franchises
  (g). Other (specify nature)
•  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, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of intangible assets) and other adjustments and the related amortization and impairment losses or reversals shall be disclosed separately.

V. 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.

VII. Trade Receivables:

•  Trade Receivables shall be sub-classified as:
  (a). Trade Receivables considered good – Secured;
  (b). Trade Receivables considered good – Unsecured;
  (c). Trade Receivables which have significant increase in Credit Risk; and
  (d). Trade Receivables – credit impaired.
•  Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.
•  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:

# 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;

VIII. Loans:
(i). Loans shall be classified as-
(a). Loans to related parties (giving details thereof); and

(c) Other loans (specify nature).
(ii). Loans Receivables shall be sub-classified as:
(a). Loans Receivables considered good – Secured;
(b). Loans Receivables considered good – Unsecured;
(c). Loans Receivables which have significant increase in Credit Risk; and
(d). Loans Receivables – credit impaired,

(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.

B. Current Assets

I. Inventories:
Inventories shall be classified as-

•  Raw materials;
•  Work-in-progress;
•  Finished goods;
•  Stock-in-trade (in respect of goods acquired for trading);
•  stores and spares;
•  Loose tools; and
•  Others (specify nature).

Goods-in-transit shall be disclosed under the relevant sub-head of inventories.
Mode of valuation shall be stated.

II. Investments:
(i). Investments shall be classified as-

•  Investments in Equity Instruments;
•  Investment in Preference Shares;
•  Investments in government or trust securities;
•  Investments in debentures or bonds;
•  Investments in Mutual Funds;
•  Investments in partnership firms; and
•  Other investments (specify nature).

Trade Receivables ageing schedule

(Amount in )

# 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.

VA. Other Financial Assets:
This is an all-inclusive heading, which incorporates financial assets that do not fit into any other financial asset categories, such as, Security Deposits.

VI. Other current assets (specify nature):
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. 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.

(ii) Others (specify nature)

C. Cash and Bank balances:

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

•  Earmarked balances with banks (for example. for unpaid dividend) shall be separately stated.
•  Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately.
•  Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated.

D. Equity

I. Equity Share Capital:
For each class of equity share capital:

•  the number and amount of shares authorized;
•  the number of shares issued, subscribed and fully paid, and subscribed but not fully paid;
•  par value per share;
•  a reconciliation of the number of shares outstanding at the beginning and at the end of the period;
•  the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital;
•  shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or the ultimate holding company In aggregate;
•  Shares in the company held by each shareholder holding more than five per cent shares specifying the number of shares held;
•  shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts;
•  for the period of five years immediately preceding the date at which the Balance Sheet is prepared-
•  aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash;
•  aggregate number and class of shares allotted as fully paid up by way of bonus shares; and
•  aggregate number and class of shares bought back;
•  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;
•  calls unpaid (showing aggregate value of calls unpaid by directors and officers)

E. Non-Current Liabilities

I. Borrowings:

•  borrowings shall be classified as-
  (a). Bonds or debentures
  (b). Term loans
  (I). from banks
  (II). from other Parties
  (c). Deferred payment liabilities
  (d). Deposits
  (e). (e) Loans from related Parties
  (f). Liability component of compound financial instruments
  (g). Other loans (specify nature);
•  borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case
•  where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed;
•  bonds or 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, stating from farthest redemption or conversion date, as the case may be, where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due;
•  particulars of any redeemed bonds or debentures which the company has power to reissue shall be disclosed;
•  terms of repayment of term loans and other loans shall be stated; and
•  Period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case.
  (III). Provisions:
  The amounts shall be classified as-
  (a). Provision for employee benefits; and
  (b). Others (specify nature).
  (IV). Other current liabilities:
  (a). Advances; and
  (b). Others (specify nature).

FA. Trade Payables

The following details relating to micro, small and medium enterprises shall be disclosed in the notes:

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

Explanation.- The terms ‘appointed day’, ‘buyer’, ‘enterprise’, ‘micro enterprise’, ‘small enterprise’ and ‘supplier’, shall have the same meaning as assigned to them under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.FB. Trade payables due for payment

H. Contingent Liabilities and Commitments:
(To the extent not provided for)

•  Contingent Liabilities shall be classified as-
  (a). claims against the company not acknowledged as debt;
  (b). guarantees excluding financial guarantees; and
  (c). other money for which the company is contingently liable.
•  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; and
  (c). other commitments (specify nature).

I. 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.

J. 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 unutilized amounts have been used or invested.

(vi). Capital-Work-in Progress (CWIP)
(a). For Capital-work-in progress, following ageing schedule shall be given:

CWIP aging schedule

(Amount in )

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

(b). For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, the following shall be given**:

Intangible assets under development completion schedule

(Amount in )

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

(viii).Details of Benami Property held

Where any proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, the company shall disclose the following:-

•  Details of such property,
•  Amount thereof,
•  Details of Beneficiaries,

(xi). Relationship with Struck off Companies
Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details, namely:-

(xii). Registration of charges or satisfaction with Registrar of Companies (ROC)
Where any charges or satisfaction are yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed.

(B). Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

•  directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
•  provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the company shall disclose the following:-
•  date and amount of fund received from Funding parties with complete details of each Funding party.
•  date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries’ or ultimate beneficiaries.
•  date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries
•  declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003)

When a company applies an accounting policy retrospectively or makes a restatement of items in the financial statements or when it reclassifies items in its financial statements, the company shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the earliest comparative period presented.

General Instructions for Preparation of Statement of Profit And Loss

The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss.The Statement of Profit and Loss shall include:

1. Proflt of loss for the Period;
2. Other comprehensive Income for the period.

The sum of (1) and (2) above is ‘Total Comprehensive Income’.

1. Revenue from operations shall disclose separately in the notes
   (a). sale of products (including Excise Duty);
   (b). sale of services;
   (ba) Grants or donations received (relevant in case of section 8 companies only); and
   (c). other operating revenues.
2. Finance Costs: Finance costs shall be classified as-
   (a). interest;
   (b). dividend on redeemable preference shares;
   (c). exchange differences regarded as an adjustment to borrowing costs; and
   (d). other borrowing costs (specify nature).
3. Other income: other income shall be classified as-
   (a). interest Income;
   (b). dividend Income; and
   (c). other non-operating income (net of expenses directly attributable to such income).

(b). depreciation and amortization expense;
(c). any item of income or expenditure which exceeds one per cent of the revenue from ‘ ‘ operations or Rs.10,00,000, whichever is higher, in addition to the consideration of ‘materiality’ as specified in clause 7 of the General Instructions for Preparation of Financial Statements of a Company,
(d). interest Income;
(e). interest Expense;
(f). dividend income;
(g). net gain or loss on sale of investments;
(h). net gain or loss on foreign currency transaction and translation (other than considered as finance cost);
(i). payments to the auditor as

1. auditor,
2. for taxation matters,
3. for company law matters,
4. for other services,
5. for reimbursement of expenses;

•  in case of companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities; and
•  details of items of exceptional nature; 8. Changes in Regulatory Deferral Account Balances shall be presented in the Statement of Profit and Loss in accordance with the relevant Indian Accounting Standards.
•  Undisclosed income The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and shall also state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.

Part III. General Instructions for the Preparation of Consolidated Financial Statements

1. Where a company is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet, consolidated statement of changes in equity and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of this Schedule as applicable to a company in the preparation of balance sheet, statement of changes in equity and statement of profit and loss in addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Indian Accounting Standards notified under the Companies (Indian Accounting Standards) Rules 2015, including the following, namely:-

•  Profit or loss attributable to ‘non-controlling interest’ and to ‘owners of the parent’ in the statement of profit and loss shall be presented as allocation for the period Further, ‘total comprehensive income ‘for the period attributable to ‘non-controlling interest’ and to ‘owners of the parent’ shall be presented in the statement of profit and loss as allocation for the period. The aforesaid disclosures for ‘total comprehensive income’ shall also be made in the statement of changes in equity In addition to the disclosure requirements in the Indian Accounting Standards, the aforesaid disclosures shall also be made in respect of ‘other comprehensive Income.
•  ‘Non-controlling interests’ in the Balance Sheet and in the Statement of Changes in Equity, within equity, shall be presented separately from the equity of the ‘owners of the parent’.
•  Investments accounted for using the equity method.

1. For Intangible assets 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, disposal acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of intangible assets) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.”
2. A company shall disclose Shareholding of Promoters* in the Notes – Share Capital, as below:

*Promoter here means promoter as defined in the Companies Act, 2013.
** Details shall be given separately for each class of shares Advertisement
*** 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. ”

1. Sub- item “(I a) Security Deposits” reclassified under “Other non-current assets” from “Long-term loans and advances” i.e. Security Deposit – To be shown separately under other non -current assets instead of Loans and advances.
2. Short Term Borrowings: From 1^st April 2021 onwards, the current maturities within 12 months from long term borrowings is required to be separately disclosed in the financial statements.
3. For trade receivables outstanding, both non-current and current following ageing schedule shall be given:

Trade Receivables ageing schedule

(Amount in )

# 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.”

1. 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.”;

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

CWIP aging schedule

(Amount in )

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

•  Intangible assets under development:
  (a). For Intangible assets under development, following ageing schedule shall be given:

Intangible assets under development aging schedule

(Amount in )

* Total shall tally with the amount of Intangible assets under development in the balance sheet.

•  Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following:-
  (a). Whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of
  (b). if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately

•  Willful Defaulter*
  Where a company is a declared willful defaulter by any bank or financial Institution or other lender, following details shall be given:
  (a). Date of declaration as willful defaulter,
  (b). Details of defaults (amount and nature of defaults),
  * “willful defaulter” here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Act) or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
•  Relationship with Struck off Companies
  Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details:-

1. Current Ratio
The current ratio indicates a company’s overall liquidity position. It is widely used by banks in making decisions regarding the advancing of working capital credit to their clients.
Current Ratio = Current Assets/ Current Liabilities

2. Debt – Equity Ratio
Debt-to-equity ratio compares a Company’s total debt to shareholders equity. Both of these numbers can be found in a Company’s balance sheet.
Debt – Equity Ratio = Total Debt/ Shareholder’s Equity

3. Debt Service Coverage Ratio
Debt Service coverage ratio is used to analyze the firm’s ability to pay-off current interest and installments.Debt Service Coverage Ratio = Earnings available for debt service / Debt Service Earning for Debt Service =Net Profit before taxes + Non-cash operating expenses like depreciation and other amortizations + Interest + other adjustments like loss on sale of Fixed assets etc. Debt service = Interest & Lease Payments + Principal Repayments. “Net Profit after tax” means reported amount of “Profit / (loss) for the period” and it does not include items of other comprehensive income.

4. Return on Equity (ROE):
It measures the profitability of equity funds invested in the Company. The ratio reveals how profitability of the equity-holders’ funds have been utilized by the Company. It also measures the percentage return generated to equity-holders. The ratio is computed as:
ROE = Net Profits after taxes – Preference Dividend (if any) / Average Shareholder’s Equity

8. Net capital turnover ratio
It indicates a company’s effectiveness in using its working capital. The working capital turnover ratio is calculated as follows: Net Sales divided by the average amount of working capital during the same period.Net capital turnover ratio = Net Sales/ Average Working Capital Net Sales shall be calculated as total sales minus sales returns. Working capital shall be calculated as current assets minus current liabilities.

9. Net profit ratio
It measures the relationship between net profit and sales of the business.
Net Profit Ratio = Net Profit / Net Sales
Net profit shall be after tax.
Net sales shall be calculated as total sales minus sales returns.

10. Return on capital employed (ROCE)
Return on capital employed indicates the ability of a company’s management to generate returns for both the debt holders and the equity holders. Higher the ratio, more efficiently is the capital being employed by the company to generate returns.
ROCE = Earnings before interest and taxes / Capital Employed Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax Liability

•  Compliance with approved Scheme(s) of Arrangements
  Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained.
•  Utilization of Borrowed funds and share premium:
  (A).Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
  (i). directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
  (ii). provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company shall disclose the following:-
  (I). date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each
  (II). date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate
  (III). date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries
  (IV). declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;

•  Undisclosed income
  The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.;
•  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:-

1. amount required to be spent by the company during the year,
2. amount of expenditure incurred,
3. shortfall at the end of the year,
4. total of previous years shortfall,
5. reason for shortfall,
6. nature of CSR activities,
7. details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard,
8. 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

•  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:-
  (a). profit or loss on transactions involving Crypto currency or Virtual Currency
  (b). amount of currency held as at the reporting date,
  (c). deposits or advances from any person for the purpose of trading or investing in Crypto Currency/ virtual currency.”

•  The following are the additional disclosures related to MSMEs that must be made:

1. The principal amount and the interest thereon remaining unpaid at the end of the financial year.
2. The amount of interest paid in accordance with Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) along with the amount paid to the supplier beyond the day appointed during each accounting year.
3. The amount of interest which is due and payable for the period of delay in making payment (which has been paid but beyond the day appointed during the year) but without adding the interest defined under the Micro, Small and Medium Enterprises Development Act 2006.
4. The amount of accrued interest and remaining unpaid at the end of each accounting year.
5. The amount of further interest remaining due and payable even in the following years, until such interest is paid to the small enterprise, for disallowance of an expenditure deductible under Section 23 of the Micro, Small, and Medium Enterprises Development Act, 2006.

Companies many need to realign their Financial Statements Close Process (FSCP) and internal control over financial reporting to ensure that information and data relating to new clauses are compiled appropriately and on timely basis to avoid last minutes hassles in preparation of financial statements.

Division III to schedule III to the Companies Act, 2013 deals with the Financial Statements for an NBFC whose financial statements are drawn in compliance with the Companies (Indian Accounting Standards) Rules, 2015.

NBFC that must comply with Indian AS – General Instructions

Every NBFC in the Companies (Indian Accounting Standards) (Amendment) Rules, 2016 that is companies to which the Indian Accounting Standards apply, shall prepare the financial statements in accordance with this Schedule or with such changes as may be required under certain circumstances.When the compliance with the Act and all accompanying regulation, guidelines, circulars issued by the regulator from time to time applicable to NBFCs, require any change in treatment or disclosure including changes to the financial statements or statements part of it, the same shall be made. The requirements of this Schedule shall stand modified. The only exception is the option of presenting assets and liabilities in accordance with current, non-current classification as per the relevant Ind AS.The disclosure requirements that are specified here are in addition to the disclosure requirements specified in Indian Accounting Standards and such disclosures will be made in the Notes to Accounts or by way of additional statements unless and until required to be disclosed on the face of the financial statements. The same also applies to disclosures required to be made under the Companies Act 2013.

The Notes shall provide for the following in addition to that is presented in financial statements:

•  Disaggregation or narrative descriptions of items recognized in those statements.
•  Information about items that do not qualify for the recognition in those statements.
•  Every item in the Balance Sheet, Statement of Changes in Equity, and Statement of Profit and Loss shall be cross-referenced to any related information in the Notes. In preparation of Notes, there must be a balance between excessive details that may not burden the users of financial statements and miss out on important information due to aggregation.

Derivatives:

Derivatives need to be classified into various sub-classes along with notional amounts as follows:

Derivatives needs to be further reclassified as follows:

Loans:

Loans need to be primarily classified under schedule as follows:

Loans needs to be further re-classified under schedule on basis of security as follows:

Loans need to be re-classified under schedule on basis of in India lending and outside India lending as follows:

Investments:

Debt Securities:

Debt Securities needs to be classified as follows:

Borrowings (Other than Debt Securities):

Borrowings need to be classified as follows:

Borrowings needs to be further reclassified into secured / unsecured, if guaranteed by any party disclosure needs to be given for the guaranteed amount under each head. Other disclosure includes terms of repayment, period and amount of default on the balance sheet date.

Subordinated Liabilities:

Subordinated Liabilities needs to be classified as follows:

Net gain / (loss) on fair value changes

*Fair value changes in this schedule are other than those arising on account of accrued interest income/expense.

Finance Cost

Impairment on Financial Instruments

General Instructions for Preparation of Balance Sheet

A Non-Banking Financial company shall disclose the following in the notes to accounts:

(A) Cash and cash equivalents:

Cash and cash equivalents shall be classified as:

•  Cash on hand
•  Balances with Banks (of the nature of cash and cash equivalents);
•  Cheques, drafts on hand; and
•  Others (specify nature).

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

•  Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated.
•  Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately
•  Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated.

(B) Derivative financial Instruments

1. Explain use of derivatives
2. Cross-reference to Financial Risks section for management of risks arising from derivatives

With respect to hedges and hedge accounting, NBFCs may provide a description in accordance with the requirements of Indian Accounting Standards, of how derivatives are used for hedging, explain

C) Receivables:

•  Receivables shall be sub-classified as:
  (a). Receivables considered good – Secured;
  (b). Receivables considered good – Unsecured;
  (c). Receivables which have significant increase in Credit Risk; and
  (d). Receivables – credit impaired
•  Allowance for impairment loss allowance shall be disclosed under the relevant heads separately.
•  Debts due by directors or other officers of the NBFC or any of them either severally or jointly with any other person or debts due by firms including limited liability partnerships (LLPs), private companies respectively in which any director is a partner or a director or a member should be separately stated.
•  For the trade receivables outstanding, following ageing schedule shall be given:

D) Loans

(E) Investments

(F) 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 depreciation and impairment losses or reversals shall be disclosed separately.

(G) 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.

(H) Property, Plant and Equipment

•  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)
•  Assets under lease shall be separately specified under each class of asset.
•  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, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.
•  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 or reversals shall be disclosed separately.

(K) Payables

The following details relating to Micro, Small and Medium Enterprises shall be disclosed:

•  the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier at the end of each accounting year;
•  the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year;
•  the amount of interest due and payable for the period of delay in making payment (which have 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;
•  the amount of interest accrued and remaining unpaid at the end of each accounting year; and
•  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.

Explanation.- The terms ‘appointed day’, ‘buyer’, ‘enterprise’, ‘micro enterprise’, ‘small enterprise’ and ‘supplier’, shall have the same meaning assigned to those under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.”

(L) Debt Securities

•  bonds or 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 earliest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due;
•  particulars of any redeemed bonds or debentures which the NBFC has power to reissue shall be disclosed.

(M) Borrowings (Other than Debt Securities)

•  Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.
•  Where borrowings have been guaranteed by directors or others, the aggregate amount of such borrowings under each head shall be disclosed;
•  terms of repayment of term loans and other loans shall be stated; an
•  period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case.

(N) Deposits

(O) Subordinated Liabilities

P) Other Financial Liabilities (to be specified):
Other Financial liabilities shall be classified as-

•  Interest accrued;
•  Unpaid dividends;
•  Application money received for allotment of securities to the extent refundable and interest accrued thereon;
•  Unpaid matured deposits and interest accrued thereon;
•  Unpaid matured debentures and interest accrued thereon;
•  Margin money (to be specified);and
•  Others (specify nature)

(Q) Provisions:
The amounts shall be classified as-

•  Provision for employee benefits; and
•  Others (specify nature)

(R) Other Non-financial liabilities (to be specified):

•  Revenue received in advance;
•  Other advances (Specify nature); and
•  Others (specify nature).

(S) Equity Share Capital:
For each class of equity share capital:

•  the number and amount of shares authorized;
•  the number of shares issued, subscribed and fully paid, and subscribed but not fully paid;
•  par value per share;

*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.

(T) Other Equity

•  Other Reserves’ shall be classified in the notes as:
  (a). Capital Redemption Reserve;
  (b). Debenture Redemption Reserve;
  (c). Share Options Outstanding Account;
  (d). Statutory Reserves; and
  (e). 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)
•  Retained Earnings represents surplus i.e. balance of the relevant column in the Statement of Changes in Equity;
•  A reserve specifically represented by earmarked investments shall disclose the fact that it is so represented;
•  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;
•  Under the sub-head ‘Other Equity’, disclosure shall be made for the nature and amount of each item; and
•  Under the sub-head ‘Other Equity’, disclosure shall be made for conditions or restrictions for distribution attached to statutory reserves.

•  Capital Work-in Progress (CWIP)

CWIP aging schedule

(Amount in )

* Total shall tally with the amount of Intangible assets under development in the balance sheet.
(b).For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, following Intangible assets under development completion schedule shall be given**:

(Amount in )

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

•  Details of Benami Property held

Where any proceedings have been initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, the company shall disclose the following:-
(a). Details of such property,
(b). Amount thereof,
(c). Details of Beneficiaries,
(d). If property is in the books, then reference to the item in the Balance Sheet,
(e). If property is not in the books, then the fact shall be stated with reasons,
(f). Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor then the details shall be provided.
(g). Nature of proceedings, status of same and company’s view on same.

•  Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following:-
  (a). whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts,
  (b). if not, summary of reconciliation and reasons of material discrepancies if any to be adequately disclosed.

•  Compliance with number of layers of companies
  Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be disclosed.
•  Following Ratios shall be disclosed.
  (a). Capital to risk-weighted assets ratio (CRAR)
  (b). Tier I CRAR
  (c). Tier II CRAR
  (d). Liquidity Coverage Ratio
•  Compliance with approved Scheme(s) of Arrangements
  Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’. Any deviation in this regard shall be explained.
•  Utilization of Borrowed funds and share premium:

(A) Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including-foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

•  directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
•  provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, the company shall disclose the following:-
•  Date and amount of fund received from Funding parties with complete details of each Funding party.
•  Date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries’ or ultimate beneficiaries.
•  Date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries
•  Declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;

(X) Other Classification related General Instructions

1. When an NBFC applies an accounting policy retrospectively or makes a restatement of items in the financial statements or when it reclassifies items in its financial statements, the NBFC shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the earliest comparative period presented.
2. Share application money pending allotment shall be classified into equity or liability in accordance with relevant Indian Accounting Standards. Share application money to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable shall be separately shown under ‘Other financial liabilities’.
3. Preference shares including premium received on issue, shall be classified and presented as ‘Equity’ or ‘Liability’ in accordance with the requirements of the relevant Indian Accounting Standards. Accordingly, the disclosure and presentation requirements in this regard applicable to the relevant class of equity or liability shall be applicable mutatis mutandis to the preference shares. For instance, plain vanila redeemable preference shares shall be classified and presented under ‘liabilities’ as ‘borrowings’ or ‘subordinated liability’ and the disclosure requirements in this regard applicable to such borrowings shall be applicable mutatis mutandis to redeemable preference shares.
4. Compound financial instruments such as convertible debentures, where split into equity and liability components, as per the requirements of the relevant Indian Accounting Standards, shall be classified and presented under the relevant heads in ‘‘Liabilities and Equity’.
5. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian Accounting Standards.

General Instructions for Preparation of Statement of Profit and Loss

1. The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss.
2. The Statement of Profit and Loss shall include:
(A) Profit or loss for the period;
(B) Other Comprehensive Income for the period.The sum of (A) and (B) above is ‘Total Comprehensive Income’.

3. Interest Income

4. Net gain/ (loss) on fair value changes*

*Fair value changes in this schedule are other than those arising on account of accrued interest income/expense.

6. Finance Costs

9. Other expenses (to be specified)

11. Additional Information:
An NBFC shall disclose by way of notes, additional information regarding aggregate expenditure and income on the following items:

•  Depreciation, amortization and impairment
•  Payments to the auditor as
  (a). auditor,
  (b). for taxation matters,
  (c). for company law matters,
  (d). or other services,
  (e). for reimbursement of expenses;
•  in case of NBFCs covered under section 135, amount of expenditure incurred on corporate social responsibility activities; and
•  Details of items of exceptional nature
•  undisclosed income
  The Company shall give details of any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme. Also, state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.
•  Corporate Social Responsibility (CSR)
  (vi).Where the company (NBFC) 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.g., 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 shall be shown separately.