Amendments in Schedule III of the Companies Act, 2013 are as follows:-
1. Rounding Off:
It is an option to do rounding off of figures till the financial year ended 31.03.2021. To round off the figures appearing in the Financial Statements for the financial year ending 31.03.2022, the Company’s total income shall be considered as the basis.
|TOTAL INCOME||ROUNDING OFF|
|Less than 100 Crore Rupees||To the nearest hundreds, thousands, lakhs, or millions or decimals thereof|
|100 Crore Rupees or more||To the nearest lakhs, millions or crores, or decimals thereof|
2. Disclosure of Shareholding of Promoters:
The note on Share Capital in the Financial Statements shall mention details of the Shareholding of the Promotes along with changes, if any, during the Financial Year.
Trade Payables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years. These include trade payables to MSMEs, disputed dues to MSMEs, and other dues and disputed dues.
Trade Receivables ageing schedule with age 6 months, 6 months-1 year, 1-2 year, 2-3 year & More than 3 years.
3. Detailed disclosure regarding title deeds of Immovable Property not held in name of the Company:
The Company shall provide the details of the immovable property (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 the prescribed format. If such immovable property is jointly held with others, details are required to be given to the extent of the Company’s share.
4. Current maturities of Long term borrowings shall be disclosed separately.
5. For Intangible assets under development, ageing schedule is to be given.
6. For Capital-work-in progress, ageing schedule shall be given.
7. Details of Crypto Currency or Virtual Currency:
Where the Company has traded or invested in Cryptocurrency or Virtual Currency during the financial year, the following shall be disclosed: –
- profit or loss on transactions involving Cryptocurrency or Virtual Currency
- the amount of currency held as at the reporting date,
- deposits or advances from any person for the purpose of trading or investing in Crypto Currency/ virtual currency.
8. Details of transaction not recorded in the books that have been surrendered or disclosed as income in the tax assessments.
9. Details in respect of Utilization of Borrowed funds and share premium shall be provided.
10. Where a scheme of arrangement has been approved, disclosure shall be made of the effect of the same on the books of accounts and any deviation from the accounting standards for the same.
11. Disclosure of Ratios:
The amendment requires the companies to disclose the following ratios:
- Current Ratio,
- Debt-Equity Ratio,
- Debt Service Coverage Ratio,
- Return on Equity Ratio,
- Inventory turnover ratio,
- Trade Receivables turnover ratio,
- Trade payables turnover ratio,
- Net capital turnover ratio,
- Net profit ratio,
- Return on Capital employed,
- Return on investment.
Note: The company shall explain the items included in the numerator and denominator for computing the above ratios and an explanation shall be provided for any change in the ratio by more than 25% as compared to the preceding year.
12. Pending registration of charges or satisfaction beyond the statutory period with Registrar of Companies.
13. Compliance with number of layers of companies.
14. Wilful Defaulter:
Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given:
- Date of declaration as wilful defaulter,
- Details of defaults (amount and nature of defaults),
15. Reconciliation and reasons of material discrepancies, in quarterly statements submitted to bank and books of accounts.
16. Details of Benami Property held:
In case, any proceedings have been initiated or pending against the entity under the Benami Transactions (Prohibitions) Act, 1988, the corresponding disclosures shall be provided in the financial statements. The Company shall disclose the followings:
- Details of such property, including year of acquisition,
- Amount thereof,
- Details of Beneficiaries,
- If property is in the books, then reference to the item in the Balance Sheet,
- If property is not in the books, then the fact shall be stated with reasons,
- 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,
- Nature of proceedings, status of same and company’s view on same.
17. Disclosure of Loans or Advances granted to promoters, directors, KMPs and the related parties
|TYPE OF BORROWER||AMOUNT OF LOAN OR ADVANCE IN THE NATURE OF LOAN OUTSTANDING||PERCENTAGE TO THE TOTAL LOANS AND ADVANCES IN THE NATURE OF LOANS|
18. Disclosure regarding revaluation of Assets:
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, 2017.
19. Relationship and nature of transactions with Struck off Companies:
|Name of struck off Company||Nature of transactions with struck-off Company||Balance outstanding||Relationship with the Struck off company, if any, to be disclosed|
|Investments in securities|
|Shares held by stuck off company|
|Other outstanding balances (to be specified)|