The Companies Act, 2013
Administered Ministry: Ministry of Corporate Affairs
Schedule
First Schedule Schedule I
SCHEDULE I (See sections 4 and 5) TABLE –A MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY SHARES 1st The name of the company is “..................................Limited / Private Limited”. 2nd The registered office of the company will be situated in the State of................................... 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is limited and this liability is limited to the amount unpaid, if any, on the shares held by them. 5th The share capital of the company is..................................rupees, divided into..................................shares of..................................rupees each. 6th We, the several persons, whose names and addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set against our respective names:— Names, addresses, descriptions and occupations of subscribers No. of Shares taken by each subscriber Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant .............. Signed before me: Signature...................... C.D. of........Merchant .............. Signed before me: Signature...................... E.F. of........Merchant .............. Signed before me: Signature...................... G.H. of........Merchant .............. Signed before me: Signature...................... I.J. of........Merchant .............. Signed before me: Signature...................... K.L. of........Merchant .............. Signed before me: Signature...................... M.N. of........Merchant .............. Signed before me: Signature...................... Total shares taken: _____________ _____________ 7th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association and agree to take all the shares in the capital of the company (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 8th Shri/Smt.................., son/daughter of ......................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated........................................ the day of .......................... TABLE –B MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL 1st The name of the company is “..................................Limited/Private Limited”. 2nd The registered office of the company will be situated in the State of.................................. 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is limited. 5th Every member of the company undertakes to contribute: (i) to the assets of the company in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member; and (ii) to the costs, charges and expenses of winding up (and for the adjustment of the rights of the contributories among themselves), such amount as may be required, not exceeding..................................rupees. 6th We, the several persons, whose names and addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association. Names, addresses, descriptions and occupations of subscribers Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant Signed before me: Signature...................... C.D. of........Merchant Signed before me: Signature...................... E.F. of........Merchant Signed before me: Signature...................... G.H. of........Merchant Signed before me: Signature...................... I.J. of........Merchant Signed before me: Signature...................... K.L. of........Merchant Signed before me: Signature...................... M.N. of........Merchant Signed before me: Signature...................... 7th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 8th Shri/Smt............., son/daughter of .................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated............................ the day of .............................. TABLE -C MEMORANDUM OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A SHARE CAPITAL 1st The name of the company is “..................................Limited/Private Limited”. 2nd The registered office of the company will be situated in the State of.................................. 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is limited. 5th Every member of the company undertakes to contribute: (i) to the assets of the company in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member; and (ii) to the costs, charges and expenses of winding up (and for the adjustment of the rights of the contributories among themselves), such amount as may be required, not exceeding..................................rupees. 6th The share capital of the company is..................................rupees, divided into..................................shares of..................................rupees each 7th We, the several persons, whose names, addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association and we respectively agree to take the number of shares in the capital of the company set against our respective names:— Names, addresses, descriptions and occupations of subscribers No. of Shares taken by each subscriber Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant .............. Signed before me: Signature...................... C.D. of........Merchant .............. Signed before me: Signature...................... E.F. of........Merchant .............. Signed before me: Signature...................... G.H. of........Merchant .............. Signed before me: Signature...................... I.J. of........Merchant .............. Signed before me: Signature...................... K.L. of........Merchant .............. Signed before me: Signature...................... M.N. of........Merchant .............. Signed before me: Signature...................... 8th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association and agree to take all the shares in the capital of the company (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. of ........Merchant Signed before me: Signature...................... 9th Shri/Smt.............., son/daughter of .................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated............................ the day of........................... TABLE -D MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE CAPITAL 1st The name of the company is “..................................Company”. 2nd The registered office of the company will be situated in the State of.................................. 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is unlimited. 5th We, the several persons, whose names and addresses are subscribed are desirous of being formed into a company in pursuance of this memorandum of association. Names, addresses, descriptions and occupations of subscribers Signature of subscriber Signature, names, addresses, descriptions and occupations of witness A.B. of........Merchant Signed before me: Signature...................... C.D. of........Merchant Signed before me: Signature...................... E.F. of........Merchant Signed before me: Signature...................... G.H. of........Merchant Signed before me: Signature...................... I.J. of........Merchant Signed before me: Signature...................... K.L. of........Merchant Signed before me: Signature...................... M.N. of........Merchant Signed before me: Signature...................... 6th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 7th Shri/Smt.........., son/daughter of ....................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated...................... the day of.................... TABLE -E MEMORANDUM OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING SHARE CAPITAL 1st The name of the company is “..................................Company”. 2nd The registered office of the company will be situated in the State of................................... 3rd (a) The objects to be pursued by the company on its incorporation are:— (b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are:— 4th The liability of the member(s) is unlimited. 5th The share capital of the company is..................................rupees, divided into..................................shares of..................................rupees each. 6th We, the several persons, whose names, and addresses are subscribed, are desirous of being formed into a company in pursuance of this memorandum of association and we respectively agree to take the number of shares in the capital of the company set against our respective names:— Names, addresses, descriptions and occupations of subscribers No. of Shares taken by each subscriber Signature of subscriber Signature, names, addresses, descriptions and occupations of witnesses A.B. of........Merchant .............. Signed before me: Signature...................... C.D. of........Merchant .............. Signed before me: Signature...................... E.F. of........Merchant .............. Signed before me: Signature...................... G.H. of........Merchant .............. Signed before me: Signature...................... I.J. of.........Merchant .............. Signed before me: Signature...................... K.L. of........Merchant .............. Signed before me: Signature...................... M.N. of........Merchant .............. Signed before me: Signature...................... 7th I, whose name and address is given below, am desirous of forming a company in pursuance of this memorandum of association and agree to take all the shares in the capital of the company (Applicable in case of one person company):— Name, address, description and occupation of subscriber Signature of subscriber Signature, name, address, description and occupation of witness A.B. ........Merchant Signed before me: Signature...................... 8th Shri/Smt..........., son/daughter of ...................., resident of............ aged............ years shall be the nominee in the event of death of the sole member (Applicable in case of one person company) Dated.............................. the day of ............................. TABLE -F ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY SHARES Interpretation I. (1) In these regulations— (a) “the Act” means the Companies Act, 2013, (b) “the seal” means the common seal of the company. (2) Unless the context otherwise requires, words or expressions contained in these regulations shall bear the same meaning as in the Act or any statutory modification thereof in force at the date at which these regulations become binding on the company. Share capital and variation of rights II. 1. Subject to the provisions of the Act and these Articles, the shares in the capital of the company shall be under the control of the Directors who may issue, allot or otherwise dispose of the same or any of them to such persons, in such proportion and on such terms and conditions and either at a premium or at par and at such time as they may from time to time think fit. 2. (i) Every person whose name is entered as a member in the register of members shall be entitled to receive within two months after incorporation, in case of subscribers to the memorandum or after allotment or within one month after the application for the registration of transfer or transmission or within such other period as the conditions of issue shall be provided,— (a) one certificate for all his shares without payment of any charges; or (b) several certificates, each for one or more of his shares, upon payment of twenty rupees for each certificate after the first. 1[(ii) Every certificate shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two directors or by a director and the company secretary, wherever the company has appointed a company secretary: Provided that in case the company has a common seal it shall be affixed in the presence of the persons required to sign the certificate. Explanation.—For the purposes of this item, it is hereby clarified that in case of an One Person Company, it shall be sufficient if the certificate is signed by a director and the company secretary, wherever the company has appointed a company secretary, or any other person authorised by the Board for the purpose.] (iii) In respect of any share or shares held jointly by several persons, the company shall not be bound to issue more than one certificate, and delivery of a certificate for a share to one of several joint holders shall be sufficient delivery to all such holders. 3. (i) If any share certificate be worn out, defaced, mutilated or torn or if there be no further space on the back for endorsement of transfer, then upon production and surrender thereof to the company, a new certificate may be issued in lieu thereof, and if any certificate is lost or destroyed then upon proof thereof to the satisfaction of the company and on execution of such indemnity as the company deem adequate, a new certificate in lieu thereof shall be given. Every certificate under this Article shall be issued on payment of twenty rupees for each certificate. (ii) The provisions of Articles (2) and (3) shall mutatis mutandis apply to debentures of the company. 4. Except as required by law, no person shall be recognised by the company as holding any share upon any trust, and the company shall not be bound by, or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any share, or any interest in any fractional part of a share, or (except only as by these regulations or by law otherwise provided) any other rights in respect of any share except an absolute right to the entirety thereof in the registered holder. 1. Subs. by Notification No. G.S.R. 362(E), dated 10th April, 2018 for item (ii) in sub-paragraph (2) (w.e.f. 10-4-2018). 5. (i) The company may exercise the powers of paying commissions conferred by sub-section (6) of section 40, provided that the rate per cent. or the amount of the commission paid or agreed to be paid shall be disclosed in the manner required by that section and rules made thereunder. (ii) The rate or amount of the commission shall not exceed the rate or amount prescribed in rules made under sub-section (6) of section 40. (iii) The commission may be satisfied by the payment of cash or the allotment of fully or partly paid shares or partly in the one way and partly in the other. 6. (i) If at any time the share capital is divided into different classes of shares, the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, subject to the provisions of section 48, and whether or not the company is being wound up, be varied with the consent in writing of the holders of three-fourths of the issued shares of that class, or with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class. (ii) To every such separate meeting, the provisions of these regulations relating to general meetings shall mutatis mutandis apply, but so that the necessary quorum shall be at least two persons holding at least one-third of the issued shares of the class in question. 7. The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation or issue of further shares ranking pari passu therewith. 8. Subject to the provisions of section 55, any preference shares may, with the sanction of an ordinary resolution, be issued on the terms that they are to be redeemed on such terms and in such manner as the company before the issue of the shares may, by special resolution, determine. Lien 9. (i) The company shall have a first and paramount lien— (a) on every share (not being a fully paid share), for all monies (whether presently payable or not) called, or payable at a fixed time, in respect of that share; and (b) on all shares (not being fully paid shares) standing registered in the name of a single person, for all monies presently payable by him or his estate to the company: Provided that the Board of directors may at any time declare any share to be wholly or in part exempt from the provisions of this clause. (ii) The company’s lien, if any, on a share shall extend to all dividends payable and bonuses declared from time to time in respect of such shares. 10. The company may sell, in such manner as the Board thinks fit, any shares on which the company has a lien: Provided that no sale shall be made— (a) unless a sum in respect of which the lien exists is presently payable; or (b) until the expiration of fourteen days after a notice in writing stating and demanding payment of such part of the amount in respect of which the lien exists as is presently payable, has been given to the registered holder for the time being of the share or the person entitled thereto by reason of his death or insolvency. 11. (i) To give effect to any such sale, the Board may authorise some person to transfer the shares sold to the purchaser thereof. (ii) The purchaser shall be registered as the holder of the shares comprised in any such transfer. (iii) The purchaser shall not be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings in reference to the sale. 12. (i) The proceeds of the sale shall be received by the company and applied in payment of such part of the amount in respect of which the lien exists as is presently payable. (ii) The residue, if any, shall, subject to a like lien for sums not presently payable as existed upon the shares before the sale, be paid to the person entitled to the shares at the date of the sale. Calls on shares 13. (i) The Board may, from time to time, make calls upon the members in respect of any monies unpaid on their shares (whether on account of the nominal value of the shares or by way of premium) and not by the conditions of allotment thereof made payable at fixed times: Provided that no call shall exceed one-fourth of the nominal value of the share or be payable at less than one month from the date fixed for the payment of the last preceding call. (ii) Each member shall, subject to receiving at least fourteen days’ notice specifying the time or times and place of payment, pay to the company, at the time or times and place so specified, the amount called on his shares. (iii) A call may be revoked or postponed at the discretion of the Board. 14. A call shall be deemed to have been made at the time when the resolution of the Board authorising the call was passed and may be required to be paid by instalments. 15. The joint holders of a share shall be jointly and severally liable to pay all calls in respect thereof. 16. (i) If a sum called in respect of a share is not paid before or on the day appointed for payment thereof, the person from whom the sum is due shall pay interest thereon from the day appointed for payment thereof to the time of actual payment at ten per cent. per annum or at such lower rate, if any, as the Board may determine. (ii) The Board shall be at liberty to waive payment of any such interest wholly or in part. 17. (i) Any sum which by the terms of issue of a share becomes payable on allotment or at any fixed date, whether on account of the nominal value of the share or by way of premium, shall, for the purposes of these regulations, be deemed to be a call duly made and payable on the date on which by the terms of issue such sum becomes payable. (ii) In case of non-payment of such sum, all the relevant provisions of these regulations as to payment of interest and expenses, forfeiture or otherwise shall apply as if such sum had become payable by virtue of a call duly made and notified. 18. The Board— (a) may, if it thinks fit, receive from any member willing to advance the same, all or any part of the monies uncalled and unpaid upon any shares held by him; and (b) upon all or any of the monies so advanced, may (until the same would, but for such advance, become presently payable) pay interest at such rate not exceeding, unless the company in general meeting shall otherwise direct, twelve per cent. per annum, as may be agreed upon between the Board and the member paying the sum in advance. Transfer of shares 19. (i) The instrument of transfer of any share in the company shall be executed by or on behalf of both the transferor and transferee. (ii) The transferor shall be deemed to remain a holder of the share until the name of the transferee is entered in the register of members in respect thereof. 20. The Board may, subject to the right of appeal conferred by section 58 decline to register— (a) the transfer of a share, not being a fully paid share, to a person of whom they do not approve; or (b) any transfer of shares on which the company has a lien. 21. The Board may decline to recognise any instrument of transfer unless— (a) the instrument of transfer is in the form as prescribed in rules made under sub-section (1) of section 56; (b) the instrument of transfer is accompanied by the certificate of the shares to which it relates, and such other evidence as the Board may reasonably require to show the right of the transferor to make the transfer; and (c) the instrument of transfer is in respect of only one class of shares. 22. On giving not less than seven days’ previous notice in accordance with section 91and rules made thereunder, the registration of transfers may be suspended at such times and for such periods as the Board may from time to time determine: Provided that such registration shall not be suspended for more than thirty days at any one time or for more than forty-five days in the aggregate in any year. Transmission of shares 23. (i) On the death of a member, the survivor or survivors where the member was a joint holder, and his nominee or nominees or legal representatives where he was a sole holder, shall be the only persons recognised by the company as having any title to his interest in the shares. (ii) Nothing in clause (i) shall release the estate of a deceased joint holder from any liability in respect of any share which had been jointly held by him with other persons. 24. (i) Any person becoming entitled to a share in consequence of the death or insolvency of a member may, upon such evidence being produced as may from time to time properly be required by the Board and subject as hereinafter provided, elect, either— (a) to be registered himself as holder of the share; or (b) to make such transfer of the share as the deceased or insolvent member could have made. (ii) The Board shall, in either case, have the same right to decline or suspend registration as it would have had, if the deceased or insolvent member had transferred the share before his death or insolvency. 25. (i) If the person so becoming entitled shall elect to be registered as holder of the share himself, he shall deliver or send to the company a notice in writing signed by him stating that he so elects. (ii) If the person aforesaid shall elect to transfer the share, he shall testify his election by executing a transfer of the share. (iii) All the limitations, restrictions and provisions of these regulations relating to the right to transfer and the registration of transfers of shares shall be applicable to any such notice or transfer as aforesaid as if the death or insolvency of the member had not occurred and the notice or transfer were a transfer signed by that member. 26. A person becoming entitled to a share by reason of the death or insolvency of the holder shall be entitled to the same dividends and other advantages to which he would been titled if he were the registered holder of the share, except that he shall not, before being registered as a member in respect of the share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings of the company: Provided that the Board may, at any time, give notice requiring any such person to elect either to be registered himself or to transfer the share, and if the notice is not complied with within ninety days, the Board may thereafter withhold payment of all dividends, bonuses or other monies payable in respect of the share, until the requirements of the notice have been complied with. 27. In case of a One Person Company— (i) on the death of the sole member, the person nominated by such member shall be the person recognised by the company as having title to all the shares of the member; (ii) the nominee on becoming entitled to such shares in case of the member’s death shall be informed of such event by the Board of the company; (iii) such nominee shall be entitled to the same dividends and other rights and liabilities to which such sole member of the company was entitled or liable; (iv) on becoming member, such nominee shall nominate any other person with the prior written consent of such person who, shall in the event of the death of the member, become the member of the company. Forfeiture of shares 28. If a member fails to pay any call, or instalment of a call, on the day appointed for payment thereof, the Board may, at any time thereafter during such time as any part of the call or instalment remains unpaid, serve a notice on him requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued. 29. The notice aforesaid shall— (a) name a further day (not being earlier than the expiry of fourteen days from the date of service of the notice) on or before which the payment required by the notice is to be made; and (b) state that, in the event of non-payment on or before the day so named, the shares in respect of which the call was made shall be liable to be forfeited. 30. If the requirements of any such notice as aforesaid are not complied with, any share in respect of which the notice has been given may, at any time thereafter, before the payment required by the notice has been made, be forfeited by a resolution of the Board to that effect. 31. (i) A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the Board thinks fit. (ii) At any time before a sale or disposal as aforesaid, the Board may cancel the forfeiture on such terms as it thinks fit. 32. (i) A person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares, but shall, notwithstanding the forfeiture, remain liable to pay to the company all monies which, at the date of forfeiture, were presently payable by him to the company in respect of the shares. (ii) The liability of such person shall cease if and when the company shall have received payment in full of all such monies in respect of the shares. 33. (i) A duly verified declaration in writing that the declarant is a director, the manager or the secretary, of the company, and that a share in the company has been duly forfeited on a date stated in the declaration, shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the share; (ii) The company may receive the consideration, if any, given for the share on any sale or disposal thereof and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of; (iii) The transferee shall thereupon be registered as the holder of the share; and (iv) The transferee shall not be bound to see to the application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share. 34. The provisions of these regulations as to forfeiture shall apply in the case of non-payment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account of the nominal value of the share or by way of premium, as if the same had been payable by virtue of a call duly made and notified. Alteration of capital 35. The company may, from time to time, by ordinary resolution increase the share capital by such sum, to be divided into shares of such amount, as may be specified in the resolution. 36. Subject to the provisions of section 61, the company may, by ordinary resolution,— (a) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares; (b) convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-up shares of any denomination; (c) sub-divide its existing shares or any of them into shares of smaller amount than is fixed by the memorandum; (d) cancel any shares which, at the date of the passing of the resolution, have-not been taken or agreed to be taken by any person. 37. Where shares are converted into stock,— (a) the holders of stock may transfer the same or any part thereof in the same manner as, and subject to the same regulations under which, the shares from which the stock arose might before the conversion have been transferred, or as near thereto as circumstances admit: Provided that the Board may, from time to time, fix the minimum amount of stock transferable, so, however, that such minimum shall not exceed the nominal amount of the shares from which the stock arose. (b) the holders of stock shall, according to the amount of stock held by them, have the same rights, privileges and advantages as regards dividends, voting at meetings of the company, and other matters, as if they held the shares from which the stock arose; but no such privilege or advantage (except participation in the dividends and profits of the company and in the assets on winding up) shall be conferred by an amount of stock which would not, if existing in shares, have conferred that privilege or advantage. (c) such of the regulations of the company as are applicable to paid-up shares shall apply to stock and the words “share” and “shareholder” in those regulations shall include “stock” and “stock-holder” respectively. 38. The company may, by special resolution, reduce in any manner and with, and subject to, any incident authorised and consent required by law,— (a) its share capital; (b) any capital redemption reserve account; or (c) any share premium account. Capitalisation of profits 39. (i) The company in general meeting may, upon the recommendation of the Board, resolve— (a) that it is desirable to capitalise any part of the amount for the time being standing to the credit of any of the company’s reserve accounts, or to the credit of the profit and loss account, or otherwise available for distribution; and (b) that such sum be accordingly set free for distribution in the manner specified in clause (ii) amongst the members who would have been entitled thereto, if distributed by way of dividend and in the same proportions. (ii) The sum aforesaid shall not be paid in cash but shall be applied, subject to the provision contained in clause (iii), either in or towards— (A) paying up any amounts for the time being unpaid on any shares held by such members respectively; (B) paying up in full, unissued shares of the company to be allotted and distributed, credited as fully paid-up, to and amongst such members in the proportions aforesaid; (C) partly in the way specified in sub-clause (A) and partly in that specified in sub-clause (B); (D) A securities premium account and a capital redemption reserve account may, for the purposes of this regulation, be applied in the paying up of unissued shares to be issued to members of the company as fully paid bonus shares; (E) The Board shall give effect to the resolution passed by the company in pursuance of this regulation. 40. (i) Whenever such a resolution as aforesaid shall have been passed, the Board shall— (a) make all appropriations and applications of the undivided profits resolved to be capitalised thereby, and all allotments and issues of fully paid shares if any; and (b) generally do all acts and things required to give effect thereto. (ii) The Board shall have power— (a) to make such provisions, by the issue of fractional certificates or by payment in cash or otherwise as it thinks fit, for the case of shares becoming distributable infractions; and (b) to authorise any person to enter, on behalf of all the members entitled thereto, into an agreement with the company providing for the allotment to them respectively, credited as fully paid- up, of any further shares to which they may be entitled upon such capitalisation, or as the case may require, for the payment by the company on their behalf, by the application thereto of their respective proportions of profits resolved to be capitalised, of the amount or any part of the amounts remaining unpaid on their existing shares; (iii) any agreement made under such authority shall be effective and binding on such members. Buy-back of shares 41. Notwithstanding anything contained in these articles but subject to the provisions of sections 68 to 70 and any other applicable provision of the Act or any other law for the time being in force, the company may purchase its own shares or other specified securities. General meetings 42. All general meetings other than annual general meeting shall be called extraordinary general meeting. 43. (i) The Board may, whenever it thinks fit, call an extraordinary general meeting. (ii) If at any time directors capable of acting who are sufficient in number to form a quorum are not within India, any director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the Board. Proceedings at general meetings 44. (i) No business shall be transacted at any general meeting unless a quorum of members is present at the time when the meeting proceeds to business. (ii) Save as otherwise provided herein, the quorum for the general meetings shall be as provided in section 103. 45. The Chairperson, if any, of the Board shall preside as Chairperson at every general meeting of the company. 46. If there is no such Chairperson, or if he is not present within fifteen minutes after the time appointed for holding the meeting, or is unwilling to act as Chairperson of the meeting, the directors present shall elect one of their members to be Chairperson of the meeting. 47. If at any meeting no director is willing to act as Chairperson or if no director is present within fifteen minutes after the time appointed for holding the meeting, the members present shall choose one of their members to be Chairperson of the meeting. 48. In case of a One Person Company— (i) the resolution required to be passed at the general meetings of the company shall be deemed to have been passed if the resolution is agreed upon by the sole member and communicated to the company and entered in the minutes book maintained under section 118; (ii) such minutes book shall be signed and dated by the member; (iii) the resolution shall become effective from the date of signing such minutes by the sole member. Adjournment of meeting 49. (i) The Chairperson may, with the consent of any meeting at which a quorum is present, and shall, if so directed by the meeting, adjourn the meeting from time to time and from place to place. (ii) No business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. (iii) When a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. (iv) Save as aforesaid, and as provided in section 103 of the Act, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. Voting rights 50. Subject to any rights or restrictions for the time being attached to any class or classes of shares,— (a) on a show of hands, every member present in person shall have one vote; and (b) on a poll, the voting rights of members shall be in proportion to his share in the paid-up equity share capital of the company. 51. A member may exercise his vote at a meeting by electronic means in accordance with section 108 and shall vote only once. 52. (i) In the case of joint holders, the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint holders. (ii) For this purpose, seniority shall be determined by the order in which the names stand in the register of members. 53. A member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee or other legal guardian, and any such committee or guardian may, on a poll, vote by proxy. 54. Any business other than that upon which a poll has been demanded may be proceeded with, pending the taking of the poll. 55. No member shall be entitled to vote at any general meeting unless all calls or other sums presently payable by him in respect of shares in the company have been paid. 56. (i) No objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes. (ii) Any such objection made in due time shall be referred to the Chairperson of the meeting, whose decision shall be final and conclusive. Proxy 57. The instrument appointing a proxy and the power-of-attorney or other authority, if any, under which it is signed or a notarised copy of that power or authority, shall be deposited at the registered office of the company not less than 48 hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote, or, in the case of a poll, not less than 24 hours before the time appointed for the taking of the poll; and in default the instrument of proxy shall not be treated as valid. 58. An instrument appointing a proxy shall be in the form as prescribed in the rules made under section 105. 59. A vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the shares in respect of which the proxy is given: Provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the company at its office before the commencement of the meeting or adjourned meeting at which the proxy is used. Board of Directors 60. The number of the directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them. 61. (i) The remuneration of the directors shall, in so far as it consists of a monthly payment, be deemed to accrue from day-to-day. (ii) In addition to the remuneration payable to them in pursuance of the Act, the directors may be paid all travelling, hotel and other expenses properly incurred by them— (a) in attending and returning from meetings of the Board of Directors or any committee thereof or general meetings of the company; or (b) in connection with the business of the company. 62. The Board may pay all expenses incurred in getting up and registering the company. 63. The company may exercise the powers conferred on it by section 88 with regard to the keeping of a foreign register; and the Board may (subject to the provisions of that section) make and vary such regulations as it may thinks fit respecting the keeping of any such register. 64. All cheques, promissory notes, drafts, hundis, bills of exchange and other negotiable instruments, and all receipts for monies paid to the company, shall be signed, drawn, accepted, endorsed, or otherwise executed, as the case may be, by such person and in such manner as the Board shall from time to time by resolution determine. 65. Every director present at any meeting of the Board or of a committee thereof shall sign his name in a book to be kept for that purpose. 66. (i) Subject to the provisions of section 149, the Board shall have power at any time, and from time to time, to appoint a person as an additional director, provided the number of the directors and additional directors together shall not at any time exceed the maximum strength fixed for the Board by the articles. (ii) Such person shall hold office only up to the date of the next annual general meeting of the company but shall be eligible for appointment by the company as a director at that meeting subject to the provisions of the Act. Proceedings of the Board 67. (i) The Board of Directors may meet for the conduct of business, adjourn and otherwise regulate its meetings, as it thinks fit. (ii) A director may, and the manager or secretary on the requisition of a director shall, at any time, summon a meeting of the Board. 68. (i) Save as otherwise expressly provided in the Act, questions arising at any meeting of the Board shall be decided by a majority of votes. (ii) In case of an equality of votes, the Chairperson of the Board, if any, shall have a second or casting vote. 69. The continuing directors may act notwithstanding any vacancy in the Board; but, if and so long as their number is reduced below the quorum fixed by the Act for a meeting of the Board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company, but for no other purpose. 70. (i) The Board may elect a Chairperson of its meetings and determine the period for which he is to hold office. (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the directors present may choose one of their number to be Chairperson of the meeting. 71. (i) The Board may, subject to the provisions of the Act, delegate any of its powers to committees consisting of such member or members of its body as it thinks fit. (ii) Any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the Board. 72. (i) A committee may elect a Chairperson of its meetings. (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the members present may choose one of their members to be Chairperson of the meeting. 73. (i) A committee may meet and adjourn as it thinks fit. (ii) Questions arising at any meeting of a committee shall be determined by a majority of votes of the members present, and in case of an equality of votes, the Chairperson shall have a second or casting vote. 74. All acts done in any meeting of the Board or of a committee thereof or by any person acting as a director, shall, notwithstanding that it may be afterwards discovered that there was some defect in the appointment of any one or more of such directors or of any person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such director or such person had been duly appointed and was qualified to be a director. 75. Save as otherwise expressly provided in the Act, a resolution in writing, signed by all the members of the Board or of a committee thereof, for the time being entitled to receive notice of a meeting of the Board or committee, shall be valid and effective as if it had been passed at a meeting of the Board or committee, duly convened and held. 76. In case of a One Person Company— (i) where the company is having only one director, all the businesses to be transacted at the meeting of the Board shall be entered into minutes book maintained under section 118; (ii) such minutes book shall be signed and dated by the director; (iii) the resolution shall become effective from the date of signing such minutes by the director. Chief Executive Officer, Manager, Company Secretary or Chief Financial Officer 77. Subject to the provisions of the Act,— (i) A chief executive officer, manager, company secretary or chief financial officer may be appointed by the Board for such term, at such remuneration and upon such conditions as it may thinks fit; and any chief executive officer, manager, company secretary or chief financial officer so appointed may be removed by means of are solution of the Board; (ii) A director may be appointed as chief executive officer, manager, company secretary or chief financial officer. 78. A provision of the Act or these regulations requiring or authorising a thing to be done by or to a director and chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer. The Seal 79. (i) The Board shall provide for the safe custody of the seal. (ii) The seal of the company shall not be affixed to any instrument except by the authority of a resolution of the Board or of a committee of the Board authorised by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the Board may appoint for the purpose; and those two directors and the secretary or other person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence. 2[Explanation.—For the purposes of this sub-paragraph it is hereby clarified that on and from the commencement of the Companies (Amendment) Act, 2015 (21 of 2015), i.e. with effect from the 29th May, 2015, company may not be required to have the seal by virtue of registration under the Act and if a company does not have the seal, the provisions of this sub-paragraph shall not be applicable.] Dividends and Reserve 80. The company in general meeting may declare dividends, but no dividend shall exceed the amount recommended by the Board. 81. Subject to the provisions of section 123, the Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the company. 82. (i) The Board may, before recommending any dividend, set aside out of the profits of the company such sums as it thinks fit as a reserve or reserves which shall, at the discretion of the Board, be applicable for any purpose to which the profits of the company may be properly applied, including provision for meeting contingencies or for equalizing dividends; and pending such application, may, at the like discretion, either be employed in the business of the company or be invested in such investments (other than shares of the company) as the Board may, from time to time, thinks fit. (ii) The Board may also carry forward any profits which it may consider necessary not to divide, without setting them aside as a reserve. 83. (i) Subject to the rights of persons, if any, entitled to shares with special rights as to dividends, all dividends shall be declared and paid according to the amounts paid or credited as paid on the shares in respect whereof the dividend is paid, but if and so long as nothing is paid upon any of the shares in the company, dividends may be declared and paid according to the amounts of the shares. (ii) No amount paid or credited as paid on a share in advance of calls shall be treated for the purposes of this regulation as paid on the share. (iii) All dividends shall be apportioned and paid proportionately to the amounts paid or credited as paid on the shares during any portion or portions of the period in respect of which the dividend is paid; but if any share is issued on terms providing that it shall rank for dividend as from a particular date such share shall rank for dividend accordingly. 84. The Board may deduct from any dividend payable to any member all sums of money, if any, presently payable by him to the company on account of calls or otherwise in relation to the shares of the company. 85. (i) Any dividend, interest or other monies payable in cash in respect of shares may be paid by cheque or warrant sent through the post directed to the registered address of the holder or, in the case of joint holders, to the registered address of that one of the joint holders who is first named on the register of members, or to such person and to such address as the holder or joint holders may in writing direct. 1. The Explanation ins. by Notification No. G.S.R. 362(E) dated 10th April, 2018 (w.e.f. 10-4-2018). (ii) Every such cheque or warrant shall be made payable to the order of the person to whom it is sent. 86. Any one of two or more joint holders of a share may give effective receipts for any dividends, bonuses or other monies payable in respect of such share. 87. Notice of any dividend that may have been declared shall be given to the persons entitled to share therein in the manner mentioned in the Act. 88. No dividend shall bear interest against the company. Accounts 89. (i) The Board shall from time to time determine whether and to what extent and at what times and places and under what conditions or regulations, the accounts and books of the company, or any of them, shall be open to the inspection of members not being directors. (ii) No member (not being a director) shall have any right of inspecting any account or book or document of the company except as conferred by law or authorised by the Board or by the company in general meeting. Winding up 90. Subject to the provisions of Chapter XX of the Act and rules made thereunder— (i) If the company shall be wound up, the liquidator may, with the sanction of a special resolution of the company and any other sanction required by the Act, divide amongst the members, in specie or kind, the whole or any part of the assets of the company, whether they shall consist of property of the same kind or not. (ii) For the purpose aforesaid, the liquidator may set such value as he deems fair upon any property to be divided as aforesaid and may determine how such division shall be carried out as between the members or different classes of members. (iii) The liquidator may, with the like sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the contributories if he considers necessary, but so that no member shall be compelled to accept any shares or other securities whereon there is any liability. Indemnity 91. Every officer of the company shall be indemnified out of the assets of the company against any liability incurred by him in defending any proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted or in which relief is granted to him by the court or the Tribunal. Note: The Articles shall be signed by each subscriber of the memorandum of association who shall add his address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation, if any, and such signatures shall be in form specified below: Names, addresses, descriptions and occupations of subscribers Witnesses (along with names, addresses, descriptions and occupations) A.B. of………….Merchant Signed before me Signature……………. C.D. of………….Merchant Signed before me Signature……………. E.F. of…………. Merchant Signed before me Signature……………. G.H. of………….Merchant Signed before me Signature……………. I.J. of………….Merchant Signed before me Signature……………. K.L. of………….Merchant Signed before me Signature……………. M.N. of………….Merchant Signed before me Signature……………. Dated the……..day of ………20…… Place: ................................ TABLE – G ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND HAVING A SHARE CAPITAL 1. The number of members with which the company proposes to be registered is hundred, but the Board of Directors may, from time to time, register an increase of members. 2. All the articles of Table F in Schedule I annexed to the Companies Act, 2013 shall be deemed to be incorporated with these articles and to apply to the company. TABLE - H ARTICLES OF ASSOCIATION OF A COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL Interpretation I. (1) In these regulations— (a) “the Act” means the Companies Act, 2013; (b) “the seal” means the common seal of the company. (2) Unless the context otherwise requires, words or expressions contained in these regulations shall have the same meaning as in the Act or any statutory modification thereof in force at the date at which these regulations become binding on the company. Members II. 1. The number of members with which the company proposes to be registered is hundred, but the Board of Directors may, from time to time, whenever the company or the business of the company requires it, register an increase of members. 2. The subscribers to the memorandum and such other persons as the Board shall admit to membership shall be members of the company. General meetings 3. All general meetings other than annual general meeting shall be called extraordinary general meeting. 4. (i) The Board may, whenever it thinks fit, call an extraordinary general meeting. (ii) If at any time directors capable of acting who are sufficient in number to form a quorum are not within India, any director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the Board. Proceedings at general meetings 5. (i) No business shall be transacted at any general meeting unless a quorum of members is present at the time when the meeting proceeds to business. (ii) Save as otherwise provided herein, the quorum for the general meetings shall be as provided in section 103. 6. The Chairperson, if any, of the Board shall preside as Chairperson at every general meeting of the company. 7. If there is no such Chairperson, or if he is not present within fifteen minutes after the time appointed for holding the meeting, or is unwilling to act as Chairperson of the meeting, the directors present shall elect one of their members to be Chairperson of the meeting. 8. If at any meeting no director is willing to act as Chairperson or if no director is present within fifteen minutes after the time appointed for holding the meeting, the members present shall choose one of their members to be Chairperson of the meeting. Adjournment of meeting 9. (i) The Chairperson may, with the consent of any meeting at which a quorum is present, and shall, if so directed by the meeting, adjourn the meeting from time to time and from place to place. (ii) No business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. (iii) When a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. (iv) Save as aforesaid, and as provided in section 103 of the Act, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. Voting rights 10. Every member shall have one vote. 11. A member of unsound mind, or in respect of whom an order has been made by any Court having jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee or other legal guardian, and any such committee or guardian may, on a poll, vote by proxy. 12. No member shall be entitled to vote at any general meeting unless all sums presently payable by him to the company have been paid. 13. (i) No objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes. (ii) Any such objection made in due time shall be referred to the Chairperson of the meeting, whose decision shall be final and conclusive. 14. A vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the shares in respect of which the proxy is given: Provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the company at its office before the commencement of the meeting or adjourned meeting at which the proxy is used. 15. A member may exercise his vote at a meeting by electronic means in accordance with section 108 and shall vote only once. 16. Any business other than that upon which a poll has been demanded may be proceeded with, pending the taking of the poll. Board of Directors 17. The number of the directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them. 18. (i) The remuneration of the directors shall, in so far as it consists of a monthly payment, be deemed to accrue from day-to-day. (ii) In addition to the remuneration payable to them in pursuance of the Act, the directors may be paid all travelling, hotel and other expenses properly incurred by them— (a) in attending and returning from meetings of the Board of Directors or any committee thereof or general meetings of the company; or (b) in connection with the business of the company. Proceedings of the Board 19. (i) The Board of Directors may meet for the conduct of business, adjourn and otherwise regulate its meetings, as it thinks fit. (ii) A director may, and the manager or secretary on the requisition of a director shall, at any time, summon a meeting of the Board. 20. (i) Save as otherwise expressly provided in the Act, questions arising at any meeting of the Board shall be decided by a majority of votes. (ii) In case of an equality of votes, the Chairperson of the Board, if any, shall have a second or casting vote. 21. The continuing directors may act notwithstanding any vacancy in the Board; but, if and so long as their number is reduced below the quorum fixed by the Act for a meeting of the Board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company, but for no other purpose. 22. (i) The Board may elect a Chairperson of its meetings and determine the period for which he is to hold office. (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the directors present may choose one of their members to be Chairperson of the meeting. 23. (i) The Board may, subject to the provisions of the Act, delegate any of its powers to committees consisting of such member or members of its body as it thinks fit. (ii) Any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the Board. 24. (i) A committee may elect a Chairperson of its meetings. (ii) If no such Chairperson is elected, or if at any meeting the Chairperson is not present within five minutes after the time appointed for holding the meeting, the members present may choose one of their members to be Chairperson of the meeting. 25. (i) A committee may meet and adjourn as it thinks proper. (ii) Questions arising at any meeting of a committee shall be determined by a majority of votes of the members present, and in case of an equality of votes, the Chairman shall have a second or casting vote. 26. All acts done by any meeting of the Board or of a committee thereof or by any person acting as a director, shall, notwithstanding that it may be afterwards discovered that there was some defect in the appointment of any one or more of such directors or of any person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such director or such person had been duly appointed and was qualified to be a director. 27. Save as otherwise expressly provided in the Act, a resolution in writing, signed by all the members of the Board or of a committee thereof, for the time being entitled to receive notice of a meeting of the Board or committee, shall be as valid and effective as if it had been passed at a meeting of the Board or committee, duly convened and held. Chief Executive Officer, Manager, Company Secretary or Chief Financial Officer 28. Subject to the provisions of the Act,— (i) A chief executive officer, manager, company secretary or chief financial officer may be appointed by the Board for such term, at such remuneration and upon such conditions as it thinks fit; and any chief executive officer, manager, company secretary or chief financial officer so appointed may be removed by means of a resolution of the Board. (ii) A director may be appointed as chief executive officer, manager, company secretary or chief financial officer. 29. A provision of the Act or these regulations requiring or authorising a thing to be done by or to a director and chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer. The Seal 30. (i) The Board shall provide for the safe custody of the seal. (ii) The seal of the company shall not be affixed to any instrument except by the authority of a resolution of the Board or of a committee of the Board authorised by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the Board may appoint for the purpose; and those two directors and the secretary or other person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence. 3[Explanation.—For the purposes of this sub-paragraph it is hereby clarified that on and from the commencement of the Companies (Amendment) Act, 2015 (21 of 2015), i.e. with effect from the 29th May, 2015, company may not be required to have the seal by virtue of registration under the Act and if a company does not have the seal, the provisions of this sub-paragraph shall not be applicable.] Note: The Articles shall be signed by each subscriber of the memorandum of association who shall add his address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation, if any, and such signatures shall be in form specified below: Names, addresses, descriptions and occupations of subscribers Witnesses (along with names, addresses, descriptions and occupations) A.B. of………….Merchant Signed before me Signature……………. C.D. of………….Merchant Signed before me Signature……………. E.F. of…………. Merchant Signed before me Signature……………. G.H. of………….Merchant Signed before me Signature……………. I.J. of………….Merchant Signed before me Signature……………. K.L. of………….Merchant Signed before me Signature……………. 1. The Explanation ins. by Notification No. G.S.R. 362(E), dated 10th April 2018 (w.e.f. 10-4-2018). M.N. of………….Merchant Signed before me Signature……………. Dated the……..day of ………20…… Place: ................................ TABLE – I ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND HAVING A SHARE CAPITAL 1. The number of members with which the company proposes to be registered is hundred, but the Board of Directors may, from time to time, register an increase of members. 2. All the articles of Table F in Schedule I annexed to the Companies Act, 2013 shall be deemed to be incorporated with these articles and to apply to the company. TABLE - J ARTICLES OF ASSOCIATION OF AN UNLIMITED COMPANY AND NOT HAVING SHARE CAPITAL 1. The number of members with which the company proposes to be registered is hundred, but the Board of Directors may, from time to time, whenever the company or the business of the company requires it, register an increase of members. 2. The subscribers to the memorandum and such other persons as the Board shall admit to membership shall be members of the company. 3. All the articles of Table H in Schedule I annexed to the Companies Act, 2013 shall be deemed to be incorporated with these articles and to apply to the company.
Second Schedule Schedule II
SCHEDULE II
(See section 123)
USEFUL LIVES TO COMPUTE DEPRECIATION
PART ‘A’
1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.
The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its
residual value. The useful life of an asset is the period over which an asset is expected to be available for
use by an entity, or the number of production or similar units expected to be obtained from the asset by
the entity.
2. For the purpose of this Schedule, the term depreciation includes amortisation.
3. Without prejudice to the foregoing provisions of paragraph 1,—
1[(i) The useful life of an asset shall not ordinarily be different from the useful life specified in
Part C and the residual value of an asset shall not be more than five per cent. of the original cost of
the asset:
Provided that where a company adopts a useful life different from what is specified in Part C or
uses a residual value different from the limit specified above, the financial statements shall disclose
such difference and provide justification in this behalf duly supported by technical advice.]
2[(ii)
3[For intangible assets, the relevant Indian Accounting Standards (Ind As) shall apply. Where
a company is not required to comply with the Indian Accounting Standards (Ind As), it shall comply
with relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006] except in
case of intangible assets (Toll Roads) created under 'Build, Operate and Transfer', 'Build, Own,
Operate and Transfer' or any other form of public private partnership route in case of road projects.
Amortisation in such cases may be done as follows:—
(a) Mode of amortization
Amortisation Rate =
Amortisation Amount=
Cost of Intangible Assets (A) x
Amorisation Amount
x 100
Cost of Intangible Assets (A)
Actual Revenue for the year (B)
Projected Revenue from Intangible Asset
(till the end of the concession period) (C)
(b) Meaning of particulars are as follows :—
Cost of Intangible Assets (A) = Cost incurred by the company in accordance with
the accounting standards.
Actual Revenue for the year (13) = Actual revenue (Toll Charges) received during the
accounting year.
Projected Revenue from Intangible
Asset (C)
Total projected revenue from the Intangible Assets
as provided to the project lender at the time of
financial closure/agreement.
1. Subs. by Notification No. G.S.R. 627(E) dated 29th August 2014, for sub-paragraph (i) of paragraph 3 (w.e.f. 29-8-2014).
2. Subs. by Notification No. G.S.R. 237(E), dated 31st March 2014, for sub-paragraph (i) to (iii) of paragraph 3(w.e.f. 1-4-2014).
3. Subs. by Notification No. G.S.R. 1075(E), dated 17th November 2016 for sub-paragraph (iii) of paragraph 3 (w.e.f. 1-4-2016).
The amortisation amount or rate should ensure that the whole of the cost of the intangible asset is
amortised over the concession period.
Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted
to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the
concession period.
(c) Example:—
Cost of creation of Intangible Assets : Rs. 500 Crores
Total period of Agreement : 20 Years
Time used for creation of Intangible Assets : 2 Years
Intangible Assets to be amortised in : 18 Years
Assuming that the Total revenue to be generated out of Intangible Assets over the period
would be Rs. 600 Crores, in the following manner:—
Year No. Revenue( In Rs. Crores) Remarks
Year 1 5 Actual
Year 2 7.5 Estimate *
Year 3 10 Estimate *
Year 4 12.5 Estimate *
Year 5 17.5 Estimate *
Year 6 20 Estimate *
Year 7 23 Estimate *
Year 8 27 Estimate *
Year 9 31 Estimate *
Year 10 34 Estimate *
Year 11 38 Estimate *
Year 12 41 Estimate *
Year 13 46 Estimate *
Year 14 50 Estimate *
Year 15 53 Estimate *
Year 16 57 Estimate *
Year 17 60 Estimate*
Year 18 67.5 Estimate *
Total 600
„*‟ will be actual at the end of financial year.
Based on this the charge for first year would be Rs. 4.16 Crore (approximately) (i.e. Rs. 5/Rs. 600 x
Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16 Crore/ Rs. 500
Crore x 100) is the amortisation rate for the first year.
Where a company arrives at the amortisation amount in respect of the said Intangible Assets in
accordance with any method as per the applicable Accounting Standards, it shall disclose the same.]
PART ‘B’
4. The useful life or residual value of any specific asset, as notified for accounting purposes by a
Regulatory Authority constituted under an Act of Parliament or by the Central Government shall be
applied in calculating the depreciation to be provided for such asset irrespective of the requirements of
this Schedule.
PART ‘C’
5. Subject to Parts A and B above, the following are the useful lives of various tangible assets:
Nature of assets Useful Life
I. Buildings [NESD]
(a) Buildings (other than factory buildings) RCC Frame Structure 60 Years
(b) Buildings (other than factory buildings) other than RCC Frame
Structure
30 Years
(c) Factory buildings -do-
(d) Fences, wells, tube wells 5 Years
(e) Others (including temporary structure, etc.) 3 Years
II. Bridges, culverts, bunders, etc. [NESD] 30 Years
III. Roads [NESD]
(a) Carpeted roads
(i) Carpeted Roads-RCC 10 Years
(ii) Carpeted Roads-other than RCC 5 Years
(b) Non-carpeted roads 3 Years
IV. Plant and Machinery
(i) General rate applicable to plant and machinery not
covered under special plant and machinery
(a) Plant and Machinery other than continuous process plant not
covered under specific industries
15 Years
4[(b) continuous process plant for which no special rate has been
prescribed under (ii) below [NESD]
25 Years]
(ii) Special Plant and Machinery
(a) Plant and Machinery related to production and exhibition of
Motion Picture Films
1. Cinematograph films—Machinery used in the production and
exhibition of cinematograph films, recording and reproducing
equipments, developing machines, printing machines, editing
machines, synchronizers and studio lights except bulbs
13 Years
2. Projecting equipment for exhibition of films -do-
1. Subs. by Notification No. G.S.R. 237(E), dated 31st March 2014, for clause (b) (w.e.f. 1-4-2014).
(b) Plant and Machinery used in glass manufacturing
1. Plant and Machinery except direct fire glass melting furnaces
—Recuperative and regenerative glass melting furnaces
13 Years
2. Plant and Machinery except direct fire glass melting furnaces
—Moulds[NESD]
8 Years
3. Float Glass Melting Furnaces [NESD] 10 Years
(c) Plant and Machinery used in mines and quarries—Portable
underground machinery and earth moving machinery used in
open cast mining [NESD]
8 Years
(d) Plant and Machinery used in Telecommunications [NESD]
1. Towers 18 Years
2. Telecom transceivers, switching centres, transmission and
other network equipment
13 Years
3. Telecom—Ducts, Cables and optical fibre 18 Years
4. Satellites -do-
(e) Plant and Machinery used in exploration, production and
refining oil and gas [NESD]
1. Refineries 25 Years
2. Oil and gas assets (including wells), processing plant and
facilities
-do-
3. Petrochemical Plant -do-
4. Storage tanks and related equipment -do-
5. Pipelines 30 Years
6. Drilling Rig -do-
7. Field operations (above ground) Portable boilers, drilling
tools, well-head tanks, etc.
8 Years
8. Loggers -do-
(f) Plant and Machinery used in generation, transmission and
distribution of power [NESD]
1. Thermal/ Gas/ Combined Cycle Power Generation Plant 40 Years
2. Hydro Power Generation Plant -do-
3. Nuclear Power Generation Plant -do-
4. Transmission lines, cables and other network assets -do-
5. Wind Power Generation Plant 22 Years
6. Electric Distribution Plant 35 Years
7. Gas Storage and Distribution Plant 30 Years
8. Water Distribution Plant including pipelines -do-
(g) Plant and Machinery used in manufacture of steel
1. Sinter Plant 20 Years
2. Blast Furnace -do-
3. Coke ovens -do-
4. Rolling mill in steel plant -do-
5. Basic oxygen Furnace Converter 25 Years
(h) Plant and Machinery used in manufacture of non-ferrous
metals
1. Metal pot line [NESD] 40 Years
2. Bauxite crushing and grinding section [NESD] -do-
3. Digester Section [NESD] -do-
4. Turbine [NESD] -do-
5. Equipments for Calcination [NESD] -do-
6. Copper Smelter [NESD] -do-
7. Roll Grinder 40 Years
8. Soaking Pit 30 Years
9. Annealing Furnace -do-
10. Rolling Mills -do-
11. Equipments for Scalping, Slitting , etc. [NESD] -do-
12. Surface Miner, Ripper Dozer, etc., used in mines 25 Years
13. Copper refining plant [NESD] -do-
(i) Plant and Machinery used in medical and surgical operations
[NESD]
1. Electrical Machinery, X-ray and electrotherapeutic apparatus
and accessories thereto, medical, diagnostic equipments,
namely, Cat-scan, Ultrasound Machines, ECG Monitors, etc.
13 Years
2. Other Equipments. 15 Years
(j) Plant and Machinery used in manufacture of pharmaceuticals
and chemicals [NESD]
1. Reactors 20 Years
2. Distillation Columns -do-
3. Drying equipments/Centrifuges and Decanters -do-
4. Vessel/storage tanks -do-
(k) Plant and Machinery used in civil construction
1. Concreting, Crushing, Piling Equipments and Road Making 12 Years
Equipments
2. Heavy Lift Equipments—
Cranes with capacity of more than 100 tons 20 Years
Cranes with capacity of less than 100 tons 15 Years
3. Transmission line, Tunneling Equipments [NESD] 10 Years
4. Earth-moving equipments 9 Years
5. Others including Material Handling/Pipeline/Welding
Equipments [NESD]
12 Years
(l) Plant and Machinery used in salt works [NESD] 15 Years
V. Furniture and fittings [NESD]
(i) General furniture and fittings 10 Years
(ii) Furniture and fittings used in hotels, restaurants and boarding
houses, schools, colleges and other educational institutions,
libraries; welfare centres; meeting halls, cinema houses;
theatres and circuses; and furniture and fittings let out on hire
for use on the occasion of marriages and similar functions.
8 Years
VI. Motor Vehicles [NESD]
1. Motor cycles, scooters and other mopeds 10 Years
2. Motor buses, motor lorries, motor cars and motor taxies used
in a business of running them on hire
6 Years
3. Motor buses, motor lorries and motor cars other than those
used in a business of running them on hire
8 Years
4. Motor tractors, harvesting combines and heavy vehicles -do-
5. Electrically operated vehicles including battery powered or
fuel cell powered vehicles
8 Years
VII. Ships [NESD]
1. Ocean-going ships
(i) Bulk Carriers and liner vessels 25 Years
(ii) Crude tankers, product carriers and easy chemical carriers with
or without conventional tank coatings.
20 Years
(iii) Chemicals and Acid Carriers:
(a) With Stainless steel tanks 25 Years
(b) With other tanks 20 Years
(iv) Liquified gas carriers 30 Years
(v) Conventional large passenger vessels which are used for cruise
purpose also
-do-
(vi) Coastal service ships of all categories -do-
(vii) Offshore supply and support vessels 20 Years
(viii) Catamarans and other high speed passenger for ships or boats -do-
(ix) Drill ships 25 Years
(x) Hovercrafts 15 Years
(xi) Fishing vessels with wooden hull 10 Years
(xii) Dredgers, tugs, barges, survey launches and other similar
ships used mainly for dredging purposes
14 Years
2. Vessels ordinarily operating on inland waters—
(i) Speed boats 13 Years
(ii) Other vessels 28 Years
VIII. Aircrafts or Helicopters [NESD] 20 Years
IX. Railways sidings, locomotives, rolling stocks, tramways
and railways used by concerns, excluding railway concerns
[NESD]
15 Years
X. Ropeway structures [NESD] 15 Years
XI. Office equipment [NESD] 5 Years
XII. Computers and data processing units [NESD]
(i) Servers and networks 6 Years
(ii) End user devices, such as, desktops, laptops, etc. 3 Years
XIII. Laboratory equipment [NESD]
(i) General laboratory equipment 10 Years
(ii) Laboratory equipments used in educational institutions 5 Years
XIV. Electrical Installations and Equipment [NESD] 10 years
XV. Hydraulic works, pipelines and sluices [NESD] 15 Years
Notes.—
1. “Factory buildings” does not include offices, godowns, staff quarters.
2. Where, during any financial year, any addition has been made to any asset, or where any asset has
been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro
rata basis from the date of such addition or, as the case may be, up to the date on which such asset has
been sold, discarded, demolished or destroyed.
3. The following information shall also be disclosed in the accounts, namely:—
(i) depreciation methods used; and
(ii) the useful lives of the assets for computing depreciation, if they are different from the life
specified in the Schedule.
5[4(a) Useful life specified in Part C of the Schedule is for whole of the asset and where cost of a part of the asset
is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset,
useful life of that significant part shall be determined separately.
(b) The requirement under sub-paragraph (a) shall be voluntary in respect of the financial year
commencing on or after the 1st April, 2014 and mandatory for financial statements in respect of financial
years commencing on or after the 1st April, 2015.]
6
* * * * *
6. The useful lives of assets working on shift basis have been specified in the Schedule based on their
single shift working. Except for assets in respect of which no extra shift depreciation is permitted
(indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the
depreciation will increase by 50% for that period and incase of the triple shift the depreciation shall be
calculated on the basis of 100% for that period.
7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date—
(a) shall be depreciated over the remaining useful life of the asset as per this Schedule;
(b) after retaining the residual value,
7[may be recognised] in the opening balance of retained
earnings where the remaining useful life of an asset is nil.
8. “Continuous process plant” means a plant which is required and designed to operate for twenty-
four hours a day.
1. Subs. by Notification No. G.S.R. 627(E) dated 29th August 2014, for paragraph 4 (w.e.f. 29-8-2014).
2. Paragraph 5 omitted by Notification No. G.S.R. 237(E), dated 31st March , 2014 (w.e.f. 1-4-2014).
3. Subs. by Notification No. G.S.R. 627(E), dated 29th August 2014, for “shall be recognized” (w.e.f. 29-8-2014).
Third Schedule Schedule III
SCHEDULE III
(See section 129)
1[Division I
FINANCIAL STATEMENTS FOR A COMPANY WHOSE FINANCIAL STATEMENTS ARE
REQUIRED TO COMPLY WITH THE COMPANIES (ACCOUNTING STANDARDS) RULES, 2006
General Instructions for Preparation of Balance Sheet and Statement of Profit and Loss of a Company.]
GENERAL INSTRUCTIONS
1. Where compliance with the requirements of the Act including Accounting Standards as applicable to the
companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in
the head or 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.
2. The disclosure requirements specified in this Schedule are in addition to and not in substitution of the
disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, 2013.
Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of
additional statement 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 to accounts in addition to the requirements
set out in this Schedule.
3. (i) Notes to accounts shall contain information in addition to that presented in the Financial Statements and
shall provide where required (a) narrative descriptions or disaggregations of items recognised in those statements;
and (b) information about items that do not qualify for recognition in those statements.
(ii) Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to
any related information in the notes to accounts. In preparing the Financial Statements including the notes to
accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial
statements and not providing important information as a result of too much aggregation.
4. (i) Depending upon the turnover of the company, the figures appearing in the Financial Statements may be
rounded off as given below:—
Turnover Rounding off
(a) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or
millions, or decimals thereof.
(b) one hundred crore rupees or more To the nearest lakhs, millions or crores, or decimals
thereof.
(ii) Once a unit of measurement is used, it
2[should] be used uniformly in the Financial Statements.
5. Except in the case of the first Financial Statements laid before the Company (after its incorporation) the
corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the
Financial Statements including notes shall also be given.
6. For the purpose of this Schedule, the terms used herein shall be as per the applicable Accounting Standards.
Note:— This part of Schedule sets out the minimum requirements for disclosure on the face of the Balance Sheet,
and the Statement of Profit and Loss (hereinafter referred to as ―Financial Statements‖ for the purpose of
1. Subs. by G.S.R. 404(E), dated 6th April, 2016, for ―GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT OF
PROFIT AND LOSS OF A COMPANY‖.
2. Subs. by Notification No. G.S.R. 1022(E), dated 11th October, 2018, for ―shall‖ (w.e.f. 11-10-218).
this Schedule) and Notes. Line items, sub-line items and sub-totals shall be presented as an addition or
substitution on the face of the Financial Statements when such presentation is relevant to an understanding
of the company‘s financial position or performance or to cater to industry/sector-specific disclosure
requirements or when required for compliance with the amendments to the Companies Act or under the
Accounting Standards.
PART I — BALANCE SHEET
Name of the Company…………………….
Balance Sheet as at ………………………
(Rupees in…………)
Particulars Note
No.
Figures as at the
end of current
reporting period
Figures as at the end
of the previous
reporting period
1 2 3 4
I. EQUITY AND LIABILITIES
(1) Shareholders‘ funds
(a) Share capital
(b) Reserves and surplus
(c) Money received against share
warrants
(2) Share application money pending
allotment
(3) Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (Net)
(c) Other Long-term liabilities
(d) Long-term provisions
(4) Current liabilities
(a) Short-term borrowings
1[(b) Trade payables
(A) total outstanding dues of
micro enterprises and small
enterprises; and
(B) total outstanding dues of
creditors other than micro
enterprises and small enterprises.]
(c) Other current liabilities
(d) Short-term provisions
TOTAL
1. Subs. by Notification No. G.S.R. 679(E), dated 4th September 2015, for ―(b) Trade payables‖ (w.e.f. 4-9-2015).
1 2 3 4
II. ASSETS
Non-current assets
(1) (a)
1[Property, Plant and Equipment]
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under
development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets
(2) Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short-term loans and advances
(f) Other current assets
TOTAL
See accompanying notes to the Financial Statements.
Notes
GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET
1. An asset shall be classified as current when it satisfies any of the following criteria:—
(a) it is expected to be realised in, or is intended for sale or consumption in, the company‘s normal
operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realised within twelve months after the reporting date; or
(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting date.
All other assets shall be classified as non-current.
2. An operating cycle is the time between the acquisition of assets for processing and their realisation in cash
or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a duration of
twelve months.
3. A liability shall be classified as current when it satisfies any of the following criteria:—
(a) it is expected to be settled in the company‘s normal operating cycle;
1. Subs. by Notification No. G.S.R. 1022(E), dated 11th October, 2018, for ―Fixed assets‖ (w.e.f. 11-10-2018).
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date; or
(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting date. 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.
All other liabilities shall be classified 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.
5. 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.
6. A company shall disclose the following in the notes to accounts.
A. Share Capital
For each class of share capital (different classes of preference shares to be treated separately):
(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 reporting
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 per cent. 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:
(A) Aggregate number and class of shares allotted as fully paid-up pursuant to contract (s) without
payment being received in cash.
(B) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares.
(C) Aggregate number and class of shares bought back.
(j) terms of any securities convertible into equity/preference 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).
B. Reserves and Surplus
(i) Reserves and Surplus shall be classified as:
(a) Capital Reserves;
(b) Capital Redemption Reserve;
(c) Securities Premium
1
***;
1. The word ―Reserve‖ omitted by Notification No. G.S.R.1022(E), dated 11th October, 2018 (w.e.f. 11-10-2018).
(d) Debenture Redemption Reserve;
(e) Revaluation Reserve;
(f) Share Options Outstanding Account;
(g) Other Reserves–(specify the nature and purpose of each reserve and the amount in respect thereof);
(h) Surplus i.e., balance in Statement of Profit and Loss disclosing allocations and appropriations such
as dividend, bonus shares and transfer to/ from reserves, etc.;
(Additions and deductions since last balance sheet to be shown under each of the specified heads);
(ii) A reserve specifically represented by earmarked investments shall be termed as a ―fund‖.
(iii) Debit balance of statement of profit and loss shall be shown as a negative figure under the head
―Surplus‖. Similarly, the balance of ―Reserves and Surplus‖, after adjusting negative balance of surplus, if any,
shall be shown under the head ―Reserves and Surplus‖ even if the resulting figure is in the negative.
C. Long-Term Borrowings
(i) Long-term borrowings shall be classified as:
(a) Bonds/debentures;
(b) Term loans:
(A) from banks.
(B) from other parties.
(c) Deferred payment liabilities;
(d) Deposits;
(e) Loans and advances from related parties;
(f) Long term maturities of finance lease obligations;
(g) Other loans and advances (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 continuing default as on the balance sheet date in repayment of loans and
interest, shall be specified separately in each case.
D. Other Long-term Liabilities
Other Long-term Liabilities shall be classified as:
(a) Trade payables;
(b) Others.
E. Long-term provisions
The amounts shall be classified as:
(a) Provision for employee benefits;
(b) Others (specify nature).
F. Short-term borrowings
(i) Short-term borrowings shall be classified as:
(a) Loans repayable on demand;
(A) from banks.
(B) from other parties.
(b) Loans and advances from related parties;
(c) Deposits;
(d) Other loans and advances (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 loans and interest, shall be
specified separately in each case.
1[FA. Trade Payable:—
The following details relating to Micro, Small and Medium Enterprises shall be disclosed in the notes:
(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 (7 of 2006), along with the amount of the payment made to the
supplier beyond the appointed day during each accounding year;
(c) 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;
(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;
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.]
G. Other current liabilities
The amounts shall be classified as:
(a) Current maturities of long-term debt;
(b) Current maturities of finance lease obligations;
(c) Interest accrued but not due on borrowings;
1. Ins. by Notification No. G.S.R. 679(E), dated 4th September, 2015 (w.e.f. 4-9-2015).
(d) Interest accrued and due on borrowings;
(e) Income received in advance;
(f) Unpaid dividends;
(g) Application money received for allotment of securities and due for refund and interest accrued
thereon. Share application money includes advances towards allotment of share capital. The terms and
conditions including the number of shares proposed to be issued, the amount of premium, if any, and the
period before which shares shall be allotted shall be disclosed. It shall also be disclosed whether the
company has sufficient authorised capital to cover the share capital amount resulting from allotment of
shares out of such share application money. Further, the period for which the share application money has
been pending beyond the period for allotment as mentioned in the document inviting application for shares
along with the reason for such share application money being pending shall be disclosed. Share application
money not exceeding the issued capital and to the extent not refundable shall be shown under the head
Equity and share application money to the extent refundable, i.e., the amount in excess of subscription or
in case the requirements of minimum subscription are not met, shall be separately shown under ―Óther
current liabilities‖;
(h) Unpaid matured deposits and interest accrued thereon;
(i) Unpaid matured debentures and interest accrued thereon;
(j) Other payables (specify nature).
H. Short-term provisions
The amounts shall be classified as:
(a) Provision for employee benefits.
(b) Others (specify nature).
I. Tangible assets
(i) Classification shall be given as:
(a) Land;
(b) Buildings;
(c) Plant and Equipment;
(d) Furniture and Fixtures;
(e) Vehicles;
(f) Office equipment;
(g) Others (specify nature).
(ii) Assets under lease shall be separately specified under each class of asset.
(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.
(iv) Where sums have been written-off on a reduction of capital or revaluation of assets or where sums
have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition
shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of
the reduction or increase as applicable together with the date thereof for the first five years subsequent to the
date of such reduction or increase.
J. Intangible assets
(i) Classification shall be given as:
(a) Goodwill;
(b) Brands /trademarks;
(c) Computer software;
(d) Mastheads and publishing titles;
(e) Mining rights;
(f) Copyrights, and patents and other intellectual property rights, services and operating rights;
(g) Recipes, formulae, models, designs and prototypes;
(h) Licences and franchise;
(i) 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 amortization and impairment losses/reversals shall be disclosed separately.
(iii) Where sums have been written-off on a reduction of capital or revaluation of assets or where sums
have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition
shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of
the reduction or increase as applicable together with the date thereof for the first five years subsequent to the
date of such reduction or increase.
K. Non-current investments
(i) Non-current investments shall be classified as trade investments and other investments and further
classified as:
(a) Investment property;
(b) Investments in Equity Instruments;
(c) Investments in preference shares;
(d) Investments in Government or trust securities;
(e) Investments in debentures or bonds;
(f) Investments in Mutual Funds;
(g) Investments in partnership firms;
(h) Other non-current investments (specify nature).
Under each classification, details shall be given of names of the bodies corporate indicating separately
whether such bodies are (i) subsidiaries, (ii) associates,(iii) joint ventures, or (iv) controlled special purpose
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). In regard to investments in the
capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the
shares of each partner) shall be given.
(ii) Investments carried at other than at cost should be separately stated specifying the basis for valuation
thereof;
(iii) The following shall also be disclosed:
(a) Aggregate amount of quoted investments and market value thereof;
(b) Aggregate amount of unquoted investments;
(c) Aggregate provision for diminution in value of investments.
L. Long-term loans and advances
(i) Long-term loans and advances shall be classified as:
(a) Capital Advances;
(b) Security Deposits;
(c) Loans and advances to related parties (giving details thereof);
(d) Other loans and advances (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 and advances shall be disclosed under the relevant heads
separately.
(iv) Loans and advances 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.
M. Other non-current assets
Other non-current assets shall be classified as:
(i) Long-term Trade Receivables (including trade receivables on deferred credit terms);
(ii) Others (specify nature);
(iii) Long term Trade Receivables, shall be sub-classified as:
(A) (a) Secured, considered good;
(B) Unsecured, considered good;
(C) Doubtful.
(b) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.
(c) 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.
N. Current Investments
(i) Current 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 [indicating separately
whether such bodies are: (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose
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). In regard to investments in the
capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the
shares of each partner) shall be given.
(ii) The following shall also be disclosed:
(a) The basis of valuation of individual investments;
(b) Aggregate amount of quoted investments and market value thereof;
(c) Aggregate amount of unquoted investments;
(d) Aggregate provision made for diminution in value of investments.
O. 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.
P. Trade Receivables
(i) Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date
they are due for payment should be separately stated.
(ii) Trade receivables shall be sub-classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.
(iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.
(iv) 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.
Q. Cash and cash equivalents
(i) Cash and cash equivalents shall be classified as:
(a) Balances with banks;
(b) Cheques, drafts on hand;
(c) Cash on hand;
(d) Others (specify nature).
(ii) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated.
(iii) Balances with banks to the extent held as margin money or security against the borrowings,
guarantees, other commitments shall be disclosed separately.
(iv) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated.
(v) Bank deposits with more than twelve months maturity shall be disclosed separately.
R. Short-term loans and advances
(i) Short-term loans and advances shall be classified as:
(a) Loans and advances to related parties (giving details thereof);
(b) 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 and advances shall be disclosed under the relevant heads
separately.
(iv) Loans and advances 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.
S. Other current assets (specify nature)
This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset
categories.
T. 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;
(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).
U. 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
preference shares shall also be disclosed separately.
V. Where in respect of an issue of securities made for a specific purpose, the whole or part of the 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.
W. If, in the opinion of the Board, any of the assets other than
1[Property, Plant and Equipment] and non-
current investments do not have a value on realisation in the ordinary course of business at least equal to the
amount at which they are stated, the fact that the Board is of that opinion, shall be stated.
1. Subs. by Notification No. G.S.R. (E), dated 11th October, 2018, for ―fixed assets‖ (w.e.f. 11-10-2018).
1[X. Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during
the period from 8
th
November, 2016 to 30
th
December, 2016 as provided in the Table below:-
SBNs Other denomination
notes
Total
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12. 2016
Explanation : For the purposes of this clause, the term ‗Specified Bank Notes‘ shall have the same
meaning provided in the notification of the Government of India, in the Ministry of Finance, Department
of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.]
PART II – STATEMENT OF PROFIT AND LOSS
Name of the Company…………………….
Profit and loss statement for the year ended ………………………
(Rupees in…………)
Particulars Note
No.
Figures as at the end
of current reporting
period
Figures as at the end
of the previous
reporting period
1 2 3 4
I. Revenue from operations xxx xxx
II. Other income xxx xxx
III. Total Revenue (I + II) xxx xxx
IV. Expenses:
Cost of materials consumed
Purchases of Stock-in-Trade
Changes in inventories of
finished goods
xxx xxx
work-in-progress and xxx xxx
Stock-in-Trade xxx xxx
Employee benefits expense xxx xxx
Finance costs
Depreciation and amortisation
expense
Other expenses
1. Ins. by Notification No. G.S.R. 308(E), dated 30
th
March, 2017 (w.e.f. 30-3-2017).
1 2 3 4
Total expenses xxx xxx
V. Profit before exceptional and
extraordinary items and tax (III -
IV)
xxx xxx
VI. Exceptional items xxx xxx
VII. Profit before extraordinary items
and tax (V - VI)
xxx xxx
VIII. Extraordinary items xxx xxx
IX. Profit before tax (VII- VIII) xxx xxx
X. Tax expense:
(1) Current tax xxx xxx
(2) Deferred tax xxx xxx
XI. Profit (Loss) for the period from
continuing operations (VII-VIII)
xxx xxx
XII. Profit/(loss) from discontinuing
operations
xxx xxx
XIII. Tax expense of discontinuing
operations
xxx xxx
XIV. Profit/(loss) from Discontinuing
operations (after tax) (XII-XIII)
xxx xxx
XV. Profit (Loss) for the period (XI +
XIV)
xxx xxx
XVI. Earnings per equity share:
(1) Basic xxx xxx
(2) Diluted xxx xxx
See accompanying notes to the financial statements.
GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF
PROFIT AND LOSS
1. The provisions of this Part shall apply to the income and expenditure account referred to in sub-
clause (ii) of clause (40) of section 2 in like manner as they apply to a statement of profit and loss.
2. (A) In respect of a company other than a finance company revenue from operations shall disclose separately
in the notes revenue from—
(a) Sale of products;
(b) Sale of services;
(c) Other operating revenues;
Less:
(d) Excise duty.
(B) In respect of a finance company, revenue from operations shall include revenue from—
(a) Interest; and
(b) Other financial services.
Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent
applicable.
3. Finance Costs
Finance costs shall be classified as:
(a) Interest expense;
(b) Other borrowing costs;
(c) Applicable net gain/loss on foreign currency transactions and translation.
4. Other income
Other income shall be classified as:
(a) Interest Income (in case of a company other than a finance company);
(b) Dividend Income;
(c) Net gain/loss on sale of investments;
(d) Other non-operating income (net of expenses directly attributable to such income).
5. Additional Information
A Company shall disclose by way of notes additional information regarding aggregate expenditure and income
on the following items:—
(i) (a) Employee Benefits Expense [showing separately (i) salaries and wages,
(ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP)
and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses].
(b) Depreciation and amortisation expense;
(c) Any item of income or expenditure which exceeds one per cent. of the revenue from operations or
Rs.1,00,000, whichever is higher;
(d) Interest Income;
(e) Interest expense;
(f) Dividend income;
(g) Net gain/loss on sale of investments;
(h) Adjustments to the carrying amount of investments;
(i) Net gain or loss on foreign currency transaction and translation (other than considered as finance cost);
(j) Payments to the auditor as (a) auditor; (b) for taxation matters; (c) for company law matters; (d) for
management services; (e) for other services; and (f) for reimbursement of expenses;
(k) In case of Companies covered under section 135, amount of expenditure incurred on corporate social
responsibility activities;
(l) Details of items of exceptional and extraordinary nature;
(m) Prior period items;
(ii) (a) In the case of manufacturing companies,—
(1) Raw materials under broad heads.
(2) goods purchased under broad heads.
(b) In the case of trading companies, purchases in respect of goods traded in by the company under broad
heads.
(c) In the case of companies rendering or supplying services, gross income derived from services rendered
or supplied under broad heads.
(d) In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and
(c) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of
raw material and the gross income from services rendered is shown under broad heads.
(e) In the case of other companies, gross income derived under broad heads.
(iii) In the case of all concerns having works in progress, works-in-progress under broad heads.
(iv) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not
including provisions made to meet any specific liability, contingency or commitment known to exist at the date
as to which the balance sheet is made up.
(b) The aggregate, if material, of any amounts withdrawn from such reserves.
(v) (a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific
liabilities, contingencies or commitments.
(b) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required.
(vi) Expenditure incurred on each of the following items, separately for each item:—
(a) Consumption of stores and spare parts;
(b) Power and fuel;
(c) Rent;
(d) Repairs to buildings;
(e) Repairs to machinery;
(f) Insurance;
(g) Rates and taxes, excluding, taxes on income;
(h) Miscellaneous expenses,
(vii) (a) Dividends from subsidiary companies.
(b) Provisions for losses of subsidiary companies.
(viii) The profit and loss account shall also contain by way of a note the following information, namely:—
(a) Value of imports calculated on C.I.F basis by the company during the financial year in respect of—
I. Raw materials;
II. Components and spare parts;
III. Capital goods;
(b) Expenditure in foreign currency during the financial year on account of royalty, know-how,
professional and consultation fees, interest, and other matters;
(c) Total value if all imported raw materials, spare parts and components consumed during the
financial year and the total value of all indigenous raw materials, spare parts and components similarly
consumed and the percentage of each to the total consumption;
(d) The amount remitted during the year in foreign currencies on account of dividends with a specific
mention of the total number of non-resident shareholders, the total number of shares held by them on
which the dividends were due and the year to which the dividends related;
(e) Earnings in foreign exchange classified under the following heads, namely:—
I. Export of goods calculated on F.O.B. basis;
II. Royalty, know-how, professional and consultation fees;
III. Interest and dividend;
IV. Other income, indicating the nature thereof.
Note:— Broad heads shall be decided taking into account the concept of materiality and presentation of true
and fair view of financial statements.
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
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 and statement of profit and loss. In
addition, the consolidated financial statements shall disclose the information as per the requirements specified in
the applicable Accounting Standards including the following:
(i) Profit or loss attributable to ―minority interest‖ and to owners of the parent in the statement of profit
and loss shall be presented as allocation for the period.
(ii) ―Minority interests‖ in the balance sheet within equity shall be presented separately from the equity of
the owners of the parent.
2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information:
Name of the entity in
the
Net Assets, i.e., total assets minus total
liabilities
Share in profit or loss
As % of
consolidated net
assets
Amount As % of
consolidated profit
or loss
Amount
1 2 3 4 5
Parent
Subsidiaries
Indian
1.
2.
3.
.
.
Foreign
1.
2.
1 2 3 4 5
3.
.
.
Minority
Interest in
all subsidiaries
Associates
(Investment
as per the equity
method)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Joint Ventures
(as per proportionate
consolidation/
investment
as per the
equity method)
Indian ________________________________ _______________________________
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Total
3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated
financial statements.
4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been
consolidated in the consolidated financial statements along with the reasons of not consolidating.
1[Division II
Financial Statements for a company whose financial statements are drawn up in compliance of the Companies
(Indian Accounting Standards) Rules, 2015.
GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY
REQUIRED TO COMPLY WITH Ind AS
1. Every company to which Indian Accounting Standards apply, shall prepare its financial statements in
accordance with this Schedule or with such modification as may be required under certain circumstances.
2. 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 or sub-head or any changes inter se, in the financial or statements forming part thereof, the
same shall be made and the requirements under this Schedule shall stand modified accordingly.
3. The disclosure requirements specified in the 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 or statements unless
required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the
Companies Act, 2013 shall be made in the Notes in addition to the requirements set out in this Schedule.
4. (i) Notes shall contain information in addition to that presented in the Financial Statements and shall provide
where required-
(a) narrative descriptions or disaggregations of items recognised in those statements; and
(b) information about items that do not qualify for recognition in those statements.
(ii) Each item on the face of 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 preparing the Financial Statements
including the Notes, a balance shall be maintained between providing excessive detail that may not assist users of
Financial Statements and not providing important information as a result of too much aggregation.
5. Depending upon the turnover of the company, the figures appearing in the Financial Statements shall be
rounded off as below:
Turnover Rounding off
(i) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or
millions, or decimals thereof.
(ii) one hundred crore rupees or more To the nearest, lakhs, millions or crores, or
decimals thereof.
Once a unit of measurement is used, it should be used uniformly in the Financial Statements.
6. 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.
1. Ins. by Notification No. G.S.R. 404(E), dated 6th April, 2016 (w.e.f. 6-4-2016).
7. 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 or nature of the item or a combination of both, to be judged in the particular circumstances.
8. For the purpose of this Schedule, the terms used herein shall have the same meanings assigned to them in
Indian Accounting Standards.
9. Where any Act or Regulation requires specific disclosures to be made in the standalone financial statements
of a company, the said disclosures shall be made in addition to those required under this Schedule.
Note: This Schedule sets out the minimum requirements for disclosure on the face of the Financial Statements,
i.e., Balance Sheet, Statement of Changes in Equity for the period, the Statement of Profit and Loss for the period
(The term ‗Statement of Profit and Loss‘ has the same meaning as ‗Profit and Loss Account‘) and Notes. Cash
flow statement shall be prepared, where applicable, in accordance with the requirements of the relevant Indian
Accounting Standard.
Line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the
Financial Statements when such presentation is relevant to an understanding of the company‘s financial position
or performance or to cater to industry or sector-specific disclosure requirements or when required for compliance
with the amendments to the Companies Act, 2013 or under the Indian Accounting Standards.
PART I –BALANCE SHEET
Name of the Company .......................
Balance Sheet as at .............................
(Rupees in ............... )
Particulars Note No. Figures as at the end of
current reporting
period
Figures as at the end of
the previous reporting
period
1 2 3 4
(1) ASSETS
Non-current assets
(2)
(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
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
Total Assets
(1)
(2)
1[Trade Payables
(A) total outstanding dues of micro
enterprises and small enterprises;
and
(B) total outstanding dues of creditors
other than micro enterprises and
small enterprises.]
(a) LIABILITIES
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings
1[Trade Payables
(A) total outstanding dues of
micro enterprises and small
enterprises; and
(B) total outstanding dues of
creditors other than micro
enterprises and small
enterprises.]
(iii) Other financial
liabilities (other than
those specified in item
(b), to be specified)
(b) Provisions
(c) Deferred tax liabilities
(Net)
(d) Other non-current
liabilities
Current liabilities
(a) Financial Liabilities
(i) Borrowings
(ii) Trade payables
(iii) Other financial
liabilities (other than those
specified in item (c)
(b) Other current liabilities
(c) Provisions
(d) Current Tax Liabilities
(Net)
Total Equity and Liabilities
See accompanying notes to the financial statements
STATEMENT OF CHANGES IN EQUITY
Name of the Company ...............................
Statement of Changes in Equity for the period ended ..............................
(Rupees in ...................... )
A. Equity Share Capital
Balance at the beginning of the
reporting period
Changes in equity share capital
during the year
Balance at the end of the reporting period
1. Subs. by Notification No. G.S.R. 1022(E), dated 11-10-2018, for "(b) Trade payables" (w.e.f. 11-10-2018).
B. Other Equity
Share
applica-
tion
money
pending
allotment
Equity
component
of compound
financial
instruments
Reserves and Surplus
Debt instru-
ments through
Other
Comprehensive
Income
Equity Instru-
ments
through
Other
Comprehensive
Income
Effective
portion of
Cash Flow
Hedges
Revaluat
ion
Surplus
Exchange
differences
on trans-
lating the
financial
state-
ments of a
foreign
operation
Other items
of Other
Compre-
hensive
Income
(specify
nature)
Money
received
against
share
warrants
Total
Capital
Reserve
1[Securities
Premium
Reserve]
Other
Reserv
es
(specif
y
nature)
Retained
Earnings
Balance at the
beginning of the
reporting period
Changes in
accounting
policy or prior
period errors
Restated
balance at
the
beginning
of the
reporting
period
Total
Comprehensive
Income for the
year
Dividends
Transfer to
retained
earnings
Any other
change (to be
specified)
Balance at the
end of the
reporting period
Note:
2[i] Remeasurment of defined benefit plans and fair value changes relating to own credit risk of financial liabilities
designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of such
items along with the relevant amounts in the Notes.
3[(ii) A description of the purposes of each reserve within equity shall be disclosed in the Notes.
(iii) in the ―Notes‖, under the heading ―General Instructions for Preparation of Balance Sheet.]
Notes:
GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET
1. An entity shall classify an asset as current when-
(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) 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.
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 realisation 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-
(a) it expects to settle the liability in its normal operating cycle;
1. Subs. by Notification No. G.S.R. 1022(E), dated 11th October, 2018, for ―Securities Premium Reserve‖ (w.e.f. 11-10-2018).
2. Note renumbered as clause (i) thereof by Notification No. G.S.R. 1022(E), dated 11th October, 2018 (w.e.f. 11-10-2018).
3. Ins. by ibid.
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting period; or
(d) 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.
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.
5. 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.
6. A company shall disclose the following in the Notes:
A. Non-Current Assets
I. 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 or reversals shall be disclosed separately.
II. 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.
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:
(i) Classification shall be given as:
(a) Brands or 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 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.
VI. 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; or
(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 alongwith names of the firms,
their partners, total capital and the shares of each partner shall be disclosed separately.
The following shall also be disclosed:
(a) Aggregate amount of quoted investments and market value thereof;
(b) Aggregate amount of unquoted investments; and
(c) Aggregate amount of impairment in value of investments.
VII. Trade Receivables:
1[(i) 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.]
(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.
1. Subs. by Notification No. G.S.R. 1022(E), dated 11th October, 2018, for ―VII. Trade Receivable‖ (w.e.f. 11-10-2018).
VIII. Loans:
(i) Loans shall be classified as-
(a) Security Deposits;
(b) Loans to related parties (giving details thereof); and
(c) Other loans (specify nature).
1[(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) Trade 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.
IX. Bank deposits with more than 12 months maturity shall be disclosed under ‗Other financial assets‘;
X. Other non-current assets: Other non-current assets shall be classified as-
(i) Capital Advances; and
(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); and
(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).
B. Current Assets
I. 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; and
(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.
II. Investments:
(i) Investments shall be classified as-
1. Subs. by Notification No. G.S.R. 1022(E), dated 11th October, 2018, for ―VIII. Trade Receivable‖ (w.e.f. 11-10-2018).
(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; and
(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).
(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.
III. Trade Receivables:
1[(i) Trade 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) Trade Receivables - credit impaired.]
(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. 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; and
d. Others (specify nature).
V. Loans:
(i) Loans shall be classified as:
(a) Security deposits;
(b) Loans to related parties (giving details thereof); and
(c) Others (specify nature).
2[(ii) Trade 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) Trade Receivables - credit impaired.]
1. Subs. by Notification No. G.S.R. 1022(E), dated 11th October, 2018, for ―III Trade Receivables‖ (w.e.f. 11-10-2018).
2. Subs. by ibid., for ―V. Loans‖ (w.e.f. 11-10-2018).
(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.
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:
(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.
D. Equity
I. 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 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 five per cent. shares specifying the number of shares held;
(h) shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the
terms and amounts;
(i) 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;
(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).
II. 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; and
(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; and
(v) Under the sub-head ‗Other Equity‘, disclosure shall be made for the nature and amount of each item.
E. Non-Current Liabilities
I. Borrowings:
(i) 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) 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 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 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;
(v) particulars of any redeemed bonds or debentures which the company has power to reissue shall be disclosed;
(vi) terms of repayment of term loans and other loans shall be stated; and
(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.
II. Provisions: The amounts shall be classified as-
(a) Provision for employee benefits; and
(b) Others (specify nature).
III. Other non-current liabilities;
(a) Advances; and
(b) Others (specified nature).
F. Current Liabilities
I. 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.
II. Other Financial Liabilities: Other Financial liabilities shall be classified as-
(a) Current maturities of long-term debt;
(b) Current maturities of finance lease obligations;
(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; and
(h) Others (specify nature).
‗Long term debt‘ is a borrowing having a period of more than twelve months at the time of origination
III. Other current liabilities:
The amounts shall be classified as-
(a) revenue received in advance;
(b) other advances (specify nature); and
(c) others (specify nature);
IV. Provisions: The amounts shall be classified as-
(i) provision for employee benefits; and
(ii) others (specify nature).
1[FA. Trade Payables
The following details relating to Micro, Small and Medium Enterprises shall be disclosed in the notes:-
(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;
1. Ins. by Notification No. G.S.R. 1022(E), dated 11th October, 2018 (w.e.f. 11-10-2018).
(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 detay 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;
(d) the amount of interest accrued and remaining unpaid at the end of each accountang 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.
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.]
G. The presentation of liabilities associated with group 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).
H. 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; and
(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; 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 unutilised amounts have been
used or invested.
1[K. Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the
period 08/11/2016 to 30/12/2016 as provided in the Table below:-
SBNs Other denomination notes Total
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016
Explanation .— For the purposes of this clause, the term ‗Specified Bank Notes‘ shall have the same meaning
provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs
number S.O. 3407(E), dated the 8th November, 2016.]
1. Ins. by Notification No. G.S.R. 308(E), dated 30th March, 2017.
7. 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.
8. 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‘.
9. 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,
1[plain vanilla], redeemable preference shares shall be classified and presented under ‗non-
current liabilities‘ as ‗borrowings‘ and the disclosure requirements in this regard applicable to such borrowings shall be applicable
mutatis mutandis to redeemable preference shares.
10. 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 ‗Equity‘
and ‗Liabilities‘
11. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian
Accounting Standards.
PART II – STATEMENT OF PROFIT AND LOSS
Name of the Company ...........................
Statement of Profit and Loss for the period ended ..............................
(Rupees in ............... )
Particulars Note No. Figures for
the current
reporting
period
Figures for
the
previous
reporting
period
I Revenue From Operations
II Other Income
III Total Income (I+II)
Particulars Note No. Figures for
the current
reporting
period
Figures for
the
previous
reporting
period
IV EXPENSES
Cost of materials consumed
Purchases of Stock-in-Trade
Changes in inventories of finished goods,
Stock-in -Trade and work-in-progress
Employee benefits expense
Finance costs
Depreciation and amortization expense
Other expenses
Total expenses (IV)
V Profit/(loss) before exceptional items
and tax (I- IV)
1. Ins. by Notification No. G.S.R. 1022(E), dated 11th October, 2018 (w.e.f. 11-10-2018).
Particulars Note No. Figures for
the current
reporting
period
Figures for
the
previous
reporting
period
VI Exceptional Items
VII Profit/(loss) before tax
(V-VI)
VIII Tax expense:
(1) Current tax
(2) Deferred tax
IX Profit (Loss) for the period from
continuing operations (VII-VIII)
X Profit/(loss) from discontinued operations
XI Tax expense of discontinued operations
XII Profit/(loss) from Discontinued operations
(after tax) (X-XI)
XIII Profit/(loss) for the period (IX+XII)
XIV Other Comprehensive Income
A (i) Items that will not be reclassified to
profit or loss
(ii) Income tax relating to items that will
not be reclassified to profit or loss
B (i) Items that will be reclassified to profit
or loss
(ii) Income tax relating to items that will be
reclassified to profit or loss
XV Total Comprehensive Income for the period
(XIII+XIV)(Comprising Profit (Loss) and
Other Comprehensive Income for the
period)
Particulars Note No. Figures for
the current
reporting
period
Figures for
the
previous
reporting
period
XVI Earnings per equity share (for continuing
operation):
(1) Basic
(2) Diluted
XVII Earnings per equity share (for discontinued
operation):
(1) Basic
(2) Diluted
XVIII Earnings per equity share(for discontinued
& continuing operations)
(1) Basic
(2) Diluted
See accompanying notes to the financial statements
Notes:
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:
(1) Profit or loss for the period;
(2) Other Comprehensive Income for the period.
The sum of (1) and (2) above is ‗Total Comprehensive Income‘.
3. Revenue from operations shall disclose separately in the notes
(a) sale of products (including Excise Duty);
(b) sale of services; and
(c) other operating revenues.
4. 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).
5 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).
6. Other Comprehensive Income shall be classified into-
(A) Items that will not be reclassified to profit or loss
(i) Changes in revaluation surplus;
(ii) Remeasurements of the defined benefit plans;
(iii) Equity Instruments through Other Comprehensive Income;
(iv) Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss;
(v) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit
or loss; and
(vi) Others (specify nature).
(B) Items that will be reclassified to profit or loss;
(i) Exchange differences in translating the financial statements of a foreign operation;
(ii) Debt Instruments through Other Comprehensive Income;
(iii) The effective portion of gains and loss on hedging instruments in a cash flow hedge;
(iv) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent to be classified into
profit or loss; and
(v) Others (specify nature).
7. Additional Information: A Company shall disclose by way of notes, additional information regarding aggregate
expenditure and income on the following items:
(a) employee Benefits expense [showing separately (i) salaries and wages, (ii) contribution to provident and other
funds, (iii) share based payments to employees, (iv) staff welfare expenses].
(b) depreciation and amortisation 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 (a) auditor, (b) for taxation matters, (c) for company law matters, (d) for
other services, (e) for reimbursement of expenses;
(j) in case of companies covered under section 135, amount of expenditure incurred on corporate social
responsibility activities; and
(k) 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.
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:-
(i) 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‘.
(ii) ‗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‘.
(iii) Investments accounted for using the equity method.
2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information:
Name of the entity in the
Group
Net Assets, i.e., total
assets minus total
liabilities
Share in profit or
loss
Share in other
comprehensive
income
Share in total
comprehensive
income
As % of
consolidate
d net assets
Amount As % of
consolidate
d profit or
loss
Amount As % of
consolidated
other
comprehensi
ve income
Amount As % of total
comprehensi
ve income
Amount
Parent
Subsidiaries
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Non-controlling
Interests in
all
subsidiaries
Associates (Investment as
per the equity method)
Indian
1.
2.
Foreign
1.
2.
3.
.
.
Joint Ventures (investment as
per the equity method)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Total
3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated
financial statements.
4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been
consolidated in the consolidated financial statements along with the reasons of not consolidating.]
1[Division III
Financial Statements for a Non-Banking Financial Company (NBFC) whose financial statements are drawn up in
compliance of the Companies (Indian Accounting Standards) Rules, 2015.
GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A NON-BANKING
FINANCIAL COMPANY (NBFC) THAT IS REQUIRED TO COMPLY WITH INDIAN ACCOUNTING STAND-
ARDS (Ind AS)
1. Every Non-Banking Financial company as defined in the Companies (Indian Accounting Standards) (Amend-
ment) Rules, 2016 to which Indian Accounting Standards apply, shall prepare its financial statements in
accordance with this Schedule or with such modification as may be required under certain circumstances.
2. Where compliance with the requirements of relevant Act, Regulations, Guidelines or Circulars issued by the
relevant regulator from time to time including Indian Accounting Standards (Ind AS) (except the option of pre-
senting assets and liabilities in accordance with current, non-current classification as provided by relevant Ind
AS) as applicable to the NBFCs require any change in treatment or disclosure including addition, amendment,
substitution or deletion in the head or sub-head or any changes inter se, in the financial statements or statements
forming part thereof, the same shall be made and the requirements under this Schedule shall stand modified
accordingly.
3. 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 Ac- counting Standards shall be made in the Notes or by way of additional statement or statements
unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as
1. Ins. by Notification No. G.S.R. 1022(E), dated 11th October, 2018 (w.e.f. 11-10-2018).
required by the Companies Act, 2013 shall be made in the Notes in addition to the requirements set out in this
Schedule.
4. (i) Notes shall contain information in addition to that presented in the Financial Statements and shall provide
where required-
(a) narrative descriptions or disaggregations of items recognised in those statements; and
(b) information about items that do not qualify for recognition in those statements.
(ii) Each item on the face of 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 preparing the Financial Statements
including the Notes, a balance shall be maintained between providing excessive details that may not assist users
of Financial Statements and not providing important information as a result of too much aggregation.
5. Depending upon the total income of the NBFC, the figures appearing in the Financial Statements shall be
rounded off as below:
Total Income Rounding off
(i) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or
decimals thereof.
(ii) one hundred crore rupees or more To the nearest, lakhs, millions or crores, or decimals
thereof.
Once a unit of measurement is used, it should be used uniformly in the Financial Statements.
6. 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 after incorporation.
7. 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 or nature of the item or a combination of both, to be judged in the particular circumstances.
8. For the purpose of this Schedule, the terms used herein shall have the same meanings assigned to them in Indian
Accounting Standards.
9. Where any Act, Regulation, Guidelines or Circulars issued by the relevant regulators from time to time requires
specific disclosures to be made in the standalone financial statements of an NBFC, the said disclosures shall be
made in addition to those required under this Schedule.
10. The NBFCs preparing financial statements as per this Schedule may change the order of presentation of line
items on the face of financial statements or order of line items within the schedules in order of liquidity, if
appropriate, considering the operations performed by the NBFC.
Note: This Schedule sets out the minimum requirements for disclosure on the face of the Financial Statements, i.e., Balance
Sheet, Statement of Changes in Equity for the period, the Statement of Profit and Loss for the period (The term ‗Statement
of Profit and Loss‘ has the same meaning as ‗Profit and Loss Account‘) and Notes. Cash flow statement shall be prepared,
where applicable, in accordance with the requirements of the relevant Indian Accounting Standard.
Line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the Financial
Statements when such presentation is relevant to an understanding of the NBFC‘s financial position or performance or to
cater to categories of NBFCs as prescribed by the relevant regulator or sector-specific disclosure requirements or when
required for compliance with the amendments to the relevant statutes or under the Indian Accounting Standards.
PART I –BALANCE SHEET
Name of the Non-Banking Financial Company…………………….
Balance Sheet as at ………………………
Particulars
Note
No.
Figures as at the end
of current reporting
period
Figures as at the end of the
previous reporting period
1 2 3
ASSETS
(1) Financial Assets
(a) Cash and cash equivalents
(b) Bank Balance other than (a) above
(c) Derivative financial instruments
(d) Receivables
(I) Trade Receivables
(II) Other Receivables
(e) Loans
(f) Investments
(g) Other Financial assets (to be specified)
(2) Non-financial Assets
(a) Inventories
(b) Current tax assets (Net)
(c) Deferred tax Assets (Net)
(d) Investment Property
(e) Biological assets other than bearer plants
(f) Property, Plant and Equipment
(g) Capital work-in-progress
(h) Intangible assets under development
(i) Goodwill
(j) Other Intangible assets
(k) Other non-financial assets (to be specified)
Total Assets
LIABILITIES AND EQUITY
LIABILITIES
(1) Financial Liabilities
(a) Derivative financial instruments
(b) Payables
(I)Trade Payables
(i) total outstanding dues of micro enterprises and
small enterprises
(ii) total outstanding dues of creditors other than
micro enterprises and small enterprises
(II) Other Payables
(i) total outstanding dues of micro enterprises and
small enterprises
(ii) total outstanding dues of creditors other than micro
enterprises and small enterprises
(c) Debt Securities
(d) Borrowings (Other than Debt Securities)
(e) Deposits
(f) Subordinated Liabilities
(g) Other financial liabilities(to be specified)
(2) Non-Financial Liabilities
(a) Current tax liabilities (Net)
(b) Provisions
(c) Deferred tax liabilities (Net)
(d) Other non-financial liabilities(to be specified)
(3) EQUITY
(a) Equity Share capital
(b) Other Equity
Total Liabilities and
Equity
See accompanying notes to the financial statements
STATEMENT OF CHANGES IN EQUITY
Name of the Non-Banking Financial Company…………………….
Statement of Changes in Equity for the period ended ……………………
A. Equity Share Capital
(Rupees in… ................. )
Balance at the beginning of the
reporting period
Changes in equity share capital during
the year
Balance at the end of the reporting
period
Xxx xxx xxx
B. Other Equity
Note:
(i) Remeasurement of defined benefit plans and fair value changes relating to own credit risk of financial liabilities
designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate dis-
closure of such items along with the relevant amounts in the Notes.
(ii) A description of the purpose of each reserve within equity shall be disclosed in the Notes.
Share
applica-
tion
money
pending
allot-
ment
Equity
comp
o-
nent
of
com-
pound
finan-
cial
instru-
ments
Reserves and Surplus
Debt
instru-
ments
through
Other
Compre-
hensive
Income
Equity
Instru-
ments
through
Other
Compre-
hensive
Income
Effec-
tive
por-
tion of
Cash
Flow
Hedg-
es
Reval-
uation
Surplus
Ex-
change
differ-
ences on
translat-
ing the
finan-
cial
state-
ments of
a foreign
opera-
tion
Other
items of
Other
Compre-
hensive
Income
(specify
nature)
Mon- ey
re- ceive d
again st
share war-
rants
Total
Statu-
tory Re-
serves
Capi-
tal
Re-
serve
Secur
i- ties
Premi
- um
Other
Re-
serves
(spec-
ify
na-
ture)
Re-
tained
Earn-
ings
Balance at
the
beginning of
the reporting
period
Changes in
accounting
poli- cy/prior
period errors
Restated
balance at
the
beginning of
the reporting
period
Total
Compre-
hensive
Income for
the year
Dividends
Transfer to
retained
earnings
Any other
change (to
be specified)
Balance at
the end of
the reporting
period
Notes
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:
(i) Cash on hand
(ii) Balances with Banks (of the nature of cash and cash equivalents);
(iii) Cheques, drafts on hand; and
(iv) Others (specify nature).
Cash and Bank balances: The following disclosures with regard to cash and bank balances shall be made:
(i) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated.
(ii) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other
commitments shall be disclosed separately.
(iii) 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
Part I
(Current Year) (Previous Year)
Notional amounts Fair Value -
Assets
Fair Value -
Liabilities
Notional amounts Fair Value -
Assets
Fair Value -
Liabilities
(i)Currency
derivatives:
-Spot and forwards
-Currency Futures
-Currency swaps
-Options purchased
-Options sold (written)
-Others
Sub total (i)
(ii)Interest rate
derivatives
-Forward Rate
Agreements and
Interest Rate Swaps
-Options purchased
-Options sold (written)
-Futures
-Others
Subtotal(ii)
(iii)Credit derivatives
(iv) Equity linked
derivatives
(v) Other derivatives
(Please specify)
Total Derivative
Financial
Instruments
(i)+(ii)+(iii)+(iv)+(v)
Part II
Included in above
(Part
I) are derivatives
held for hedging
and risk
management
purposes as
follows:
(i)Fair value
hedging:
- Currency
derivatives
- Interest rate
derivatives
- Credit derivatives
- Equity linked
derivatives
- Others
Sub total (i)
(ii)Cash flow
hedging:
- Currency
derivatives
- Interest rate
derivatives
- Credit derivatives
- Equity linked
derivatives
- Others
Sub total (ii)
(iii)Net investment
hedging:
(iv) Undesignated
Derivatives
Total Derivative
Financial
Instruments (i)+
(ii)+(iii)+(iv)
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 types of hedges recognized for accounting purposes
and their usage/application by the entity.
(C) Receivables:
(i) 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
(ii) Allowance for impairment loss allowance shall be disclosed under the relevant heads separately.
(iii) 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.
(D) Loans
(Current Year) (Previous Year)
Amor-
tised
cost
At Fair Value Sub
total
Total Amor-
tised cost
At Fair Value Sub
total
Total
Through
Other
Compre-
hensive
Income
Through
profit or
loss
Designat-
ed at fair
value
through
profit or
loss
Through
Other
Comprehen-
sive Income
Through
profit or
loss
Designat-
ed at fair
value
through
profit or
loss
(1) (2) (3) (4) (5=2+
3+4)
(6=1
+ 5)
(7) (8) (9) (10) (11=8+
9+10)
(12=(7)
+ (11)
Loans
(A)
(i) Bills Purchased and
Bills Discounted
(ii) Loans repayable on
Demand
(iii) Term Loans
(iv) Leasing
(v) Factoring
(vi) Others (to be
specified)
Total (A) -Gross
Less:Impairment loss
allowance
Total (A) - Net
(B)
(i) Secured by
tangible assets
(ii)Secured by
intangible assets
(iii) Covered by
Bank/Government
Guarantees
(iv) Unsecured
Total (B)-Gross
Less: Impairment loss
allowance
Total (B)-Net
(C) (I) Loans in India
(i) Public Sector
(ii) Others (to be specified)
Total (C)- Gross
Less: Impairment loss
allowance
Total(C) (I)-Net
(C) (II)Loans
outside India
Less: Impairment
loss allowance
Total (C) (II)- Net
Total C(I) and C(II)
(E) Investments
Investments
Invest-
vest- ments
(Current Year) (Previous Year)
Amor-
tised
cost
At Fair Value
Sub-
Total
Oth-
ers*
Total
Amor-
tised
cost
At Fair Value
Sub-Total
Oth-
ers*
Total
Through
Other
Compre-
hensive
Income
Thro
ugh
profit
or
loss
Desig-
nated at
fair
value
through
profit
or loss
Through
Other
Compre-
hensive
Income
Thro
ugh
profit
or
loss
Desig-
nated
at fair
value
throug
h
profit
or loss
(1) (2) (3) (4) (5)=(2)+
(3)+(4)
(6)
(7)=(1)
+
(5)+(6)
(8)
(9) (10) (11) (12)=(9)+
(10)+(11)
(13)
(14)=(8)+
(12)+(13)
Mutual
funds
Gov-
ernment
securi- ties
Other ap-
proved
securi- ties
Debt
securi- ties
Equity
instru-
ments
Subsid-
iaries
Associates
Joint
Ven-
tures
Others
(specify)
Total –
Gross (A)
(i) Invest-
ments
outside
India
(ii) Invest-
ments in
India
Total (B)
Total
(A) to tally
with (B)
Less: Allow-
ance for
Impair- pair-
ment loss (C)
Total – Net
D= (A)-(C)
* Other basis of measurement such as cost may be explained as a footnote
(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
(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 asset.
(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 or reversals shall be disclosed separately.
(I) 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.
(J) Other Intangible assets
(iv) Classification shall be given as:
(a) Brands or 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 amortization and impairment losses or reversals shall be disclosed separately.
(K) Payables
The following details relating to Micro, Small and Medium Enterprises shall be disclosed:
(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, 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 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;
(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.
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
(Current Year) (Previous Year)
At Amortised
Cost
At Fair
Value
Through
profit or
loss
Designated at
fair value
through profit
or loss
Total At Amortised
Cost
At Fair
Value
Through
profit or
loss
Designated at
fair value
through profit
or loss
Total
(1) (2) (3) (4)=(1)+(2)+(3) (5) (6) (7) (8)=(5)+(6)+(7)
Liability
component of
compound
financial
instruments
Others (Bonds/
Debenture etc.)
Total (A)
Debt securities
in India
Debt securities
outside India
Total (B) to
tally with (A)
(i) 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 redemp- tion 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;
(ii) particulars of any redeemed bonds or debentures which the NBFC has power to reissue shall be disclosed.
(M) Borrowings (Other than Debt Securities)
(Current Year) (Previous Year)
At
Amortised
Cost
At fair value
Through
profit or loss
Designated at
fair value
through profit
or loss
Total At
Amortised
Cost
At fair value
Through
profit or loss
Designated at
fair value
through profit
or loss
Total
(1) (2) (3) (4)=(1)+(2)+(3) (1) (2) (3) (4)=(1)+(2)+(3)
(a)Term loans
(i)from banks
(ii)from other parties
(b)Deferred payment
liabilities
(c)Loans from related
parties
(d) Finance lease
obligations
(e)Liability
component of
compound financial
instruments
(f)Loans repayable on
demand
(i)from banks
(ii)from other parties
(g) Other loans
(specify nature)
Total (A)
Borrowings in India
Borrowings outside
India
Total (B) to tally
with (A)
(i) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in
each case.
(ii) Where borrowings have been guaranteed by directors or others, the aggregate amount of such borrowings under each
head shall be disclosed;
(iii) terms of repayment of term loans and other loans shall be stated; and
(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.
(N) Deposits
(Current Year) (Previous Year)
At Amortised
Cost
At fair
value
through
profit or
loss
Designated at
fair value
through profit
or loss
Total At Amortised
Cost
At fair
value
through
profit or
loss
Designated at
fair value
through profit
or loss
Total
(1) (2) (3) (4)=(1)+(2)+(3) (5) (6) (7) (8)=(5)+(6)+(7)
Deposits
(i) Public
Deposits
(ii) From
Banks
(iii)From
Others
Total
(O) Subordinated Liabilities
(Current Year) (Previous Year)
At
Amortised
Cost
At fair
value
through
profit or
loss
Designated
at fair
value
through
profit or
loss
Total At
Amortised
Cost
At fair
value
through
profit or
loss
Designated at
fair value
through
profit or loss
Total
(1) (2) (3) (4)=(1)+(2)+(3) (5) (6) (7) (8)=(5)+ (6)+(7)
Perpetual Debt
Instruments to the
extent that do not
qualify as equity
Preference Shares
other than those
that qualify as
Equity
Others (specifying
the nature and type
of instrument
issued)
Total (A)
Subordinated
Liabilities in India
Subordinated
Liabilities outside
India
Total (B) to tally
with (A)
(P) Other Financial Liabilities (to be specified): Other Financial liabilities shall be classified as-
(a) Interest accrued;
(b) Unpaid dividends;
(c) Application money received for allotment of securities to the extent refundable and interest accrued thereon;
(d) Unpaid matured deposits and interest accrued thereon;
(e) Unpaid matured debentures and interest accrued thereon;
(f) Margin money (to be specified);and
(g) Others (specify nature)
(Q) Provisions: The amounts shall be classified as-
(a) Provision for employee benefits; and
(b) Others (specify nature)
(R) Other Non-financial liabilities (to be specified):
(a) Revenue received in advance;
(b) Other advances (Specify nature); and
(c) Others (specify nature).
(S) Equity Share Capital : For each class of equity share capital:
(a) the number and amount of shares authorized;
(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 five percent shares specifying the number of
shares held;
(h) shares reserved for issue under options and contracts/commitments for the sale of shares or disinvestment,
including the terms and amounts;
(i) 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;
(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) An NBFC shall disclose information that enables users of its financial statements to evaluate the NBFC‘s
objectives, policies and processes for managing capital.
(T) 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) 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)
(iii) Retained Earnings represents surplus i.e. balance of the relevant column in the Statement of Changes in
Equity;
(iv) A reserve specifically represented by earmarked investments shall disclose the fact that it is so represented;
(v) 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;
(vi) Under the sub-head ‗Other Equity‘, disclosure shall be made for the nature and amount of each item; and
(vii) Under the sub-head ‗Other Equity‘, disclosure shall be made for conditions or restrictions for distribution
attached to statutory reserves.
(U) 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; and
(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 pro-
vided for;
(b) Uncalled liability on shares and other investments partly paid;
(c) Other commitments (specify nature).
(V) 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.
(W) 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.
(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 un- der 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.
PART II – STATEMENT OF PROFIT AND LOSS
Name of the Non-Banking Financial Company…………………….
Statement of Profit and Loss for the period ended ………………………
(Rupees in ...................... )
Particulars Note No. Figures for the current
reporting period
Figures for the previous
reporting period
Revenue from operations
(i) Interest Income
(ii) Dividend Income
(iii) Rental Income
(iv) Fees and commission Income
(v) Net gain on fair value changes
(vi) Net gain on derecognition of financial instruments under
amortised cost category
(vii) Sale of products(including Excise Duty)
(viii) Sale of services
(ix) Others (to be specified)
(I) Total Revenue from operations
(II) Other Income (to be specified)
(III) Total Income (I+II)
Expenses
(i) Finance Costs
(ii) Fees and commission expense
(iii) Net loss on fair value changes
(iv) Net loss on derecognition of financial instruments under
amortised cost category
(v) Impairment on financial instruments
(vi) Cost of materials consumed
(vii) Purchases of Stock-in-trade
(viii) Changes in Inventories of finished goods, stock-in-trade
and work-in- progress
(ix) Employee Benefits Expenses
(x) Depreciation, amortization and impairment
(xi) Others expenses (to be specified)
(IV ) Total Expenses (IV)
(V ) Profit / (loss) before exceptional items and tax (III-IV)
(VI ) Exceptional items
(VII ) Profit/(loss) before tax (V -VI )
(VIII) Tax Expense:
(1) Current Tax
(2) Deferred Tax
Particulars Note No. Figures for the current
reporting period
Figures for the
previous
reporting
period
Revenue from operations
(IX) Profit / (loss) for the period from continuing
operations(VII-VIII)
(X) Profit/(loss) from discontinued operations
(XI) Tax Expense of discontinued operations
(XII) Profit/(loss) from discontinued operations(After tax) (X-
XI)
(XIII) Profit/(loss) for the period (IX+XII)
(XIV) Other Comprehensive Income
(A) (i) Items that will not be reclassified to profit or loss
(specify items and amounts)
(ii) Income tax relating to items that will not be
reclassified to profit or loss
Subtotal (A)
(B) (i) Items that will be reclassified to profit or loss
(specify items and amounts)
(ii) Income tax relating to items that will be reclassified
to profit or loss
Subtotal (B)
Other Comprehensive Income (A + B)
(XV) Total Comprehensive Income for the period
(XIII+XIV) (Comprising Profit (Loss) and other
Comprehensive Income for the period)
(XVI) Earnings per equity share (for continuing operations)
Basic (Rs.)
Diluted (Rs.)
(XVII) Earnings per equity share (for discontinued
operations)
Basic (Rs.)
Diluted (Rs.)
(XVIII) Earnings per equity share (for continuing and
discontinued operations)
Basic (Rs.)
Diluted (Rs.)
See accompanying notes to the financial statements
Notes
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
Particulars
(Current Year) (Previous Year)
On Financial
Assets measured
at fair value
through OCI
On Financial Assets
measured at
Amortised Cost
Interest
Income on
Financial
Assets
classified at
fair value
through profit
or loss
On Financial
Assets
measured at
fair value
through OCI
On Financial
Assets measured
at Amortised Cost
Interest
Income on
Financial
Assets
classified at
fair value
through profit
or loss
Interest on Loans
Interest income from
investments
Interest on deposits with
Banks
Other interest Income
Total
4. Net gain/ (loss) on fair value changes*
Particulars (Current Year) (Previous Year)
(A) Net gain/ (loss) on financial instruments at fair
value through profit or loss
(i) On trading portfolio
- Investments
- Derivatives
- Others
(ii) On financial instruments designated at fair value
through profit or loss
(B) Others ( to be specified)
Total Net gain/(loss) on fair value changes (C)
Fair Value changes:
-Realised
-Unrealised
Total Net gain/(loss) on fair value changes(D) to tally
with (C)
*Fair value changes in this schedule are other than those arising on account of accrued interest income/expense.
5. Other Income (to be specified)
Particulars (Current Year) (Previous Year)
Net gain/(loss) on ineffective portion of hedges
Net gain/(loss) on derecognition of property, plant and equipment
Net gain or loss on foreign currency transaction and translation (other than
considered as finance cost)( to be specified)
Others ( to be specified)*
Total
* Any item under the subhead ‗Others‘ which exceeds one per cent of the total income to be presented separately.
6. Finance Costs
Particulars (Current Year) (Previous Year)
On Financial On Financial liabilities On Financial On Financial
liabilities measured at Amortised liabilities measured liabilities measured
measured at fair Cost at fair value through at Amortised Cost
value through profit or loss
profit or loss
Interest on deposits
Interest on borrowings
Interest on debt securities
Interest on subordinated liabilities
Other interest expense
Total
7. Employee Benefits Expenses
Particulars (Current Year) (Previous Year)
Salaries and wages
Contribution to provident and other funds
Share Based Payments to employees
Staff welfare expenses
Others (to be specified)
Total
8. Impairment on financial instruments
Particulars
(Current Year) (Previous Year)
On Financial instruments
measured at fair value
through OCI
On Financial
instruments
measured at
Amortised Cost
On Financial
instruments
measured at fair
value through OCI
On Financial
instruments
measured at
Amortised Cost
Loans
Investments
Others (to be specified)
Total
9. Other expenses (to be specified)
Particulars (Current Year) (Previous Year)
Rent, taxes and energy costs
Repairs and maintenance
Communication Costs
Printing and stationery
Advertisement and publicity
Director‘s fees, allowances and expenses
Auditor‘s fees and expenses
Legal and Professional charges
Insurance
Other expenditure
Total
* Any item under the subhead ‗Others expenditure‘ which exceeds one per cent of the total income to be presented
separately.
10. Other Comprehensive Income shall be classified into-
(A) Items that will not be reclassified to profit or loss
i. Changes in revaluation surplus;
ii. Remeasurements of the defined benefit plans;
iii. Equity Instruments through Other Comprehensive Income;
iv. Fair value changes relating to own credit risk of financial liabilities designated at fair value through
profit or loss;
v. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classi-
fied into profit or loss; and
vi. Others (specify nature).
(B) Items that will be reclassified to profit or loss;
i. Exchange differences in translating the financial statements of a foreign operation;
ii. Debt Instruments through Other Comprehensive Income;
iii. The effective portion of gains and loss on hedging instruments in a cash flow hedge;
iv. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent to be classified
into profit or loss; and
v. Others (specify nature).
11. Additional Information: An NBFC shall disclose by way of notes, additional information regarding aggregate
expenditure and income on the following items:
i. Depreciation, amortisation and impairment
ii. payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law matters, (d) for other
services, (e) for reimbursement of expenses;
iii. in case of NBFCs covered under section 135, amount of expenditure incurred on corporate social responsi-
bility activities; and
iv. details of items of exceptional nature
PART III- GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED
FINANCIAL STATEMENTS
(1) Where a Non-Banking Financial Company (NBFC) 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 NBFC shall mutatis mutandis follow the requirements of
this Schedule as applicable to an NBFC in the preparation of balance sheet, statement of changes in
equity and statement of profit and loss. However, where the consolidated financial statements contains
elements pertaining to NBFCs and other than NBFCs, mixed basis of presentation may be followed
for consolidated financial statements where both kinds of opera- tions are significant. 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 Ac- counting
Standards) Rules 2015, including the following, namely:-
(i) 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‘.
(ii) ‗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‘.
(iii) Investments accounted for using the equity method.
(2) In Consolidated Financial Statements, the following shall be disclosed by way of additional information:
Name of
the entity
in the
Group
Net Assets, i.e., total assets
minus total liabilities
Share in profit or loss Share in other
comprehensive income
Share in total
comprehensive income
As % of
consolidated
net assets
Amount
As % of
consolidated
profit or
loss
Amount As % of
consolidated
other
comprehensive
income
Amount As % of total
comprehensive
income
Amount
ent
Subsidiaries
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Non-
controlling
Interests in
all
subsidiaries
Associates
(Investment
as per the
equity
method)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Joint
Ventures(as
per the
equity
method)
Indian
1.
2.
3.
.
.
Foreign
1.
2.
3.
.
.
Total
(3) All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated
financial statements.
(4) An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been
consolidated in the consolidated financial statements along with the reasons of not consolidating.]
Fourth Schedule Schedule IV
SCHEDULE IV [See section 149(8)] CODE FOR INDEPENDENT DIRECTORS The Code is a guide to professional conduct for independent directors. Adherence to these standards by independent directors and fulfilment of their responsibilities in a professional and faithful manner will promote confidence of the investment community, particularly minority shareholders, regulators and companies in the institution of independent directors. I. Guidelines of professional conduct: An independent director shall: (1) uphold ethical standards of integrity and probity; (2) act objectively and constructively while exercising his duties; (3) exercise his responsibilities in a bona fide manner in the interest of the company; (4) devote sufficient time and attention to his professional obligations for informed and balanced decision making; (5) not allow any extraneous considerations that will vitiate his exercise of objective independent judgment in the paramount interest of the company as a whole, while concurring in or dissenting from the collective judgment of the Board in its decision making; (6) not abuse his position to the detriment of the company or its shareholders or for the purpose of gaining direct or indirect personal advantage or advantage for any associated person; (7) refrain from any action that would lead to loss of his independence; (8) where circumstances arise which make an independent director lose his independence, the independent director must immediately inform the Board accordingly; (9) assist the company in implementing the best corporate governance practices. II. Role and functions: The independent directors shall: (1) help in bringing an independent judgment to bear on the Board’s deliberations especially on issues of strategy, performance, risk management, resources, key appointments and standards of conduct; (2) bring an objective view in the evaluation of the performance of board and management; (3) scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance; (4) satisfy themselves on the integrity of financial information and that financial controls and the systems of risk management are robust and defensible; (5) safeguard the interests of all stakeholders, particularly the minority shareholders; (6) balance the conflicting interest of the stakeholders; (7) determine appropriate levels of remuneration of executive directors, key managerial personnel and senior management and have a prime role in appointing and where necessary recommend removal of executive directors, key managerial personnel and senior management; (8) moderate and arbitrate in the interest of the company as a whole, in situations of conflict between management and shareholder’s interest. III. Duties : The independent directors shall— (1) undertake appropriate induction and regularly update and refresh their skills, knowledge and familiarity with the company; (2) seek appropriate clarification or amplification of information and, where necessary, take and follow appropriate professional advice and opinion of outside experts at the expense of the company; (3) strive to attend all meetings of the Board of Directors and of the Board committees of which he is a member; (4) participate constructively and actively in the committees of the Board in which they are chairpersons or members; (5) strive to attend the general meetings of the company; (6) where they have concerns about the running of the company or a proposed action, ensure that these are addressed by the Board and, to the extent that they are not resolved, insist that their concerns are recorded in the minutes of the Board meeting; (7) keep themselves well informed about the company and the external environment in which it operates; (8) not to unfairly obstruct the functioning of an otherwise proper Board or committee of the Board; (9) pay sufficient attention and ensure that adequate deliberations are held before approving related party transactions and assure themselves that the same are in the interest of the company; (10) ascertain and ensure that the company has an adequate and functional vigil mechanism and to ensure that the interests of a person who uses such mechanism are not prejudicially affected on account of such use; (11) report concerns about unethical behavior, actual or suspected fraud or violation of the company’s code of conduct or ethics policy; (12) 1 [act within their authority], assist in protecting the legitimate interests of the company, shareholders and its employees; (13) not disclose confidential information, including commercial secrets, technologies, advertising and sales promotion plans, unpublished price sensitive information, unless such disclosure is expressly approved by the Board or required by law. IV. Manner of appointment: (1) Appointment process of independent directors shall be independent of the company management; while selecting independent directors the Board shall ensure that there is appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. (2) The appointment of independent director(s) of the company shall be approved at the meeting of the shareholders. (3) The explanatory statement attached to the notice of the meeting for approving the appointment of independent director shall include a statement that in the opinion of the Board, the independent director proposed to be appointed fulfils the conditions specified in the Act and the rules made thereunder and that the proposed director is independent of the management. (4) The appointment of independent directors shall be formalised through a letter of appointment, which shall set out : (a) the term of appointment; (b) the expectation of the Board from the appointed director; the Board-level committee(s) in which the director is expected to serve and its tasks; (c) the fiduciary duties that come with such an appointment along with accompanying liabilities; 1. Subs. by Notification No. S.O. 2113(E), dated 5th July 2017, for “ acting within his authority” . (d) provision for Directors and Officers (D and O) insurance, if any; (e) the Code of Business Ethics that the company expects its directors and employees to follow; (f) the list of actions that a director should not do while functioning as such in the company; and (g) the remuneration, mentioning periodic fees, reimbursement of expenses for participation in the Boards and other meetings and profit related commission, if any. (5) The terms and conditions of appointment of independent directors shall be open for inspection at the registered office of the company by any member during normal business hours. (6) The terms and conditions of appointment of independent directors shall also be posted on the company’s website. V. Re-appointment: The re-appointment of independent director shall be on the basis of report of performance evaluation. VI. Resignation or removal: (1) The resignation or removal of an independent director shall be in the same manner as is provided in sections 168 and 169 of the Act. (2) An independent director who resigns or is removed from the Board of the company shall be replaced by a new independent director within 2[three months] from the date of such resignation or removal, as the case may be. (3) Where the company fulfils the requirement of independent directors in its Board even without filling the vacancy created by such resignation or removal, as the case may be, the requirement of replacement by a new independent director shall not apply. VII. Separate meetings: (1) The independent directors of the company shall hold at least one meeting 3[in a financial year], without the attendance of non-independent directors and members of management; (2) All the independent directors of the company shall strive to be present at such meeting; (3) The meeting shall: (a) review the performance of non-independent directors and the Board as a whole; (b) review the performance of the Chairperson of the company, taking into account the views of executive directors and non-executive directors; (c) assess the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. VIII. Evaluation mechanism: (1) The performance evaluation of independent directors shall be done by the entire Board of Directors, excluding the director being evaluated. (2) On the basis of the report of performance evaluation, it shall be determined whether to extend or continue the term of appointment of the independent director. 4[Note: The Provisions of sub-paragraph (2) and (7) of paragraph II, paragraph IV, paragraph V, clauses (a) and (b) of sub-paragraph (3) of paragraph VI and paragraph VIII shall not apply in the case of a Government company as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), if the requirements in respect of matters specified in these paragraph are specified by the concerned Ministries or Departments of the Central Government or as the case may be, the State Governments and such requirements are complied with by the Government companies.] 1. Subs. by Notification No. S.O. 2113(E), dated 5th July 2017, for “a period of not more than one hundred and eight days” (w.e.f. 5-7-2017). 2. Subs. by ibid., for “in a year” (w.e.f. 5-7-2017). 3. Ins. by ibid.(w.e.f. 5-7-2017).
Fifth Schedule Schedule V
SCHEDULE V (See sections 196 and 197) PART I CONDITIONS TO BE FULFILLED FOR THE APPOINTMENT OF A MANAGING OR WHOLE-TIME DIRECTOR OR A MANAGER WITHOUT THE APPROVAL OF THE CENTRAL GOVERNMENT APPOINTMENTS No person shall be eligible for appointment as a managing or whole-time director or a manager (hereinafter referred to as managerial person) of a company unless he satisfies the following conditions, namely:— (a) he had not been sentenced to imprisonment for any period, or to a fine exceeding one thousand rupees, for the conviction of an offence under any of the following Acts, namely:— (i) the Indian Stamp Act, 1899 (2 of 1899); (ii) the Central Excise Act, 1944 (1 of 1944); (iii) the Industries (Development and Regulation) Act, 1951 (65 of 1951); (iv) the Prevention of Food Adulteration Act, 1954 (37 of 1954); (v) the Essential Commodities Act, 1955 (10 of 1955); 1[(vi) the Companies Act, 2013 (18 of 2013) or any previous company law;] (vii) the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (viii) the Wealth-tax Act, 1957 (27 of 1957); (ix) the Income-tax Act, 1961 (43 of 1961); (x) the Customs Act, 1962 (52 of 1962); (xi) the Competition Act, 2002 (12 of 2003); (xii) the Foreign Exchange Management Act, 1999 (42 of 1999); (xiii) the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); (xiv) the Securities and Exchange Board of India Act, 1992 (15 of 1992); (xv) the Foreign Trade (Development and Regulation) Act, 1922 (22 of 1922); (xvi) the Prevention of Money-Laundering Act, 2002 (15 of 2003); 2[(xvii) the Insolvency and Bankruptcy Code, 2016 (31 of 2016); (xviii) the Goods and Services Tax Act, 2017 (12 of 2017); (xix) the Fugitive Economic Offenders Act, 2018 (17 of 2018).] (b) he had not been detained for any period under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974): Provided that where the Central Government has given its approval to the appointment of a person convicted or detained under sub-paragraph (a) or sub-paragraph (b), as the case may be, no further approval of the Central Government shall be necessary for the subsequent appointment of that person if he had not been so convicted or detained subsequent to such approval. (c) he has completed the age of twenty-one years and has not attained the age of seventy years: 1. Subs. by Notification No. G.S.R. 2922(E), dated 12th September, 2016, for sub-paragraph (vi). 2. Ins. by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). Provided that where he has attained the age of seventy years; and where his appointment is approved by a special resolution passed by the company in general meeting, no further approval of the Central Government shall be necessary for such appointment; (d) where he is a managerial person in more than one company, he draws remuneration from one or more companies subject to the ceiling provided in section V of Part II; (e) he is resident of India. Explanation I.—For the purpose of this Schedule, resident in India includes a person who has been staying in India for a continuous period of not less than twelve months immediately preceding the date of his appointment as a managerial person and who has come to stay in India,— (i) for taking up employment in India; or (ii) for carrying on a business or vacation in India. Explanation II.—This condition shall not apply to the companies in Special Economic Zones as notified by Department of Commerce from time to time: Provided that a person, being a non-resident in India shall enter India only after obtaining a proper Employment Visa from the concerned Indian mission abroad. For this purpose, such person shall be required to furnish, along with the visa application form, profile of the company, the principal employer and terms and conditions of such person’s appointment. PART II REMUNERATION Section I.— Remuneration payable by companies having profits: Subject to the provisions of section 197, a company having profits in a financial year may pay remuneration to a managerial person or persons 1[or other director or directors] not exceeding the limits specified in such section. 2[Section II.— Remuneration payable by companies having no profit or inadequate profit 3***: Where in any financial year during the currency of tenure of a managerial person 1[or other director], a company has no profits or its profits are inadequate, it may, 3***, pay remuneration to the managerial person 1[or other director] not exceeding the limits under (A) and (B) given below:— 4[(A): (1) (2) (3) SI. No. Where the effective capital (in rupees) is Limit of yearly remuneration payable shall not exceed (in Rupees) in case of a managerial person Limit of yearly remuneration payable shall not exceed (in rupees) in case of other director (i) Negative or less than 5 crores. 60 lakhs 12 Lakhs (ii) 5 crores and above but less than 100 crores. 84 lakhs 17 Lakhs (iii) 100 crores and above but less than 250 crores. 120 lakhs 24 Lakhs (iv) 250 crores and above. 120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores: 24 Lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores:] 5[Provided that the remuneration in excess of above limits may be paid] if the resolution passed by the shareholders is a special resolution. 1. Ins. by Notification No. S.O. 1256(E), dated 18th March, 2021 (w.e.f. 18-3-2021). 2. Subs. by Notification No. S.O. 2922(E), dated 12th September 2016, for Section II. 3. The words “without Central Government approval” omitted by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 4. Subs. by Notification No. S.O. 1256(E), for Table (A) dated 18th March, 2021 (w.e.f. 18-3-2021). 5. Subs. by Notification No. S.O. 4822(E), for “Provided that the above limits shall be doubled” (w.e.f. 12-9-2018). Explanation.— It is hereby clarified that for a period less than one year, the limits shall be pro-rated. (B) In case of a managerial person who is functioning in a professional capacity, 1[remuneration as per item (A) may be paid], if such managerial person is not having any interest in the capital of the company or its holding company or any of its subsidiaries directly or indirectly or through any other statutory structures and not having any direct or indirect interest or related to the directors or promoters of the company or its holding company or any of its subsidiaries at any time during the last two years before or on or after the date of appointment and possesses graduate level qualification with expertise and specialised knowledge in the field in which the company operates: Provided that any employee of a company holding shares of the company not exceeding 0.5% of its paid up share capital under any scheme formulated for allotment of shares to such employees including Employees Stock Option Plan or by way of qualification shall be deemed to be a person not having any interest in the capital of the company: Provided further that the limits specified under items (A) and (B) of this section shall apply, if- (i) payment of remuneration is approved by a resolution passed by the Board and, in the case of a company covered under sub-section (1) of section 178 also by the Nomination and Remuneration Committee; (ii) 2[the company has not committed any default in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, and in case of default, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining the approval in the general meeting;] (iii) an ordinary resolution or a special resolution, as the case may be, has been passed for payment of remuneration as per 3*** item (A) or a special resolution has been passed for payment of remuneration as per item (B), at the general meeting of the company for a period not exceeding three years. (iv) a statement along with a notice calling the general meeting referred to in clause (iii) is given to the shareholders containing the following information, namely:- I. General information: (1) Nature of industry (2) Date or expected date of commencement of commercial production (3) In case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus (4) Financial performance based on given indicators (5) Foreign investments or collaborations, if any. II. Information about the appointee: (1) Background details (2) Past remuneration (3) Recognition or awards (4) Job profile and his suitability (5) Remuneration proposed (6) Comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be with respect to the country of his origin) (7) Pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel, if any. 1. Subs. by Notification No. S.O. 4822(E), dated 12th September, 2018, for “no approval of Central Government is required” (w.e.f. 12-9-2018). 2. Subs. by ibid., for clause (ii) (w.e.f. 12-9-2018). 3. The words “the limits laid down in” omitted by ibid., (w.e..f 12-9-2018). III. Other information: (1) Reasons of loss or inadequate profits (2) Steps taken or proposed to be taken for improvement (3) Expected increase in productivity and profits in measurable terms IV. Disclosures: The following disclosures shall be mentioned in the Board of Director’s report under the heading “Corporate Governance”, if any, attached to the financial statement: (i) all elements of remuneration package such as salary, benefits, bonuses, stock options, pension, etc., of all the directors; (ii) details of fixed component and performance linked incentives along with the performance criteria; (iii) service contracts, notice period, severance fees; and (iv) stock option details, if any, and whether the same has been issued at a discount as well as the period over which accrued and over which exercisable. Explanation: For the purposes of Section II of this part, “Statutory Structure” means any entity which is entitled to hold shares in any company formed under any statute. ] Section III.— Remuneration payable by companies having no profit or inadequate 1***profit in certain special circumstances: In the following circumstances a company may, 1***, pay remuneration to a managerial person 2[or other director] in excess of the amounts provided in Section II above:— (a) where the remuneration in excess of the limits specified in Section I or Section II is paid by any other company and that other company is either a foreign company or has got the approval of its shareholders in general meeting to make such payment, and treats this amount as managerial remuneration for the purpose of section 197 and the total managerial remuneration payable by such other company to its managerial persons including such amount or amounts is within permissible limits under section 197. 3[(b) where the company— (i) is a newly incorporated company, for a period of seven years from the date of its incorporation, or (ii) is a sick company, for whom a scheme of revival or rehabilitation has been ordered by the Board for Industrial and Financial Reconstruction for a period of five years from the date of sanction of scheme of revival, or (iii) is a company in relation to which a resolution plan has been approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) for a period of five years from the date of such approval, it may pay 4[any remuneration to its managerial persons 2[or other directors]].] (c) where remuneration of a managerial person 2[or other director] exceeds the limits in Section II but the remuneration has been fixed by the Board for Industrial and Financial Reconstruction or the National Company Law Tribunal: Provided that the limits under this Section shall be applicable subject to meeting all the conditions specified under Section II and the following additional conditions:— 1. The words “without Central Government approval” omitted by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). 2. Ins. by Notification No. S.O. 1256(E), dated 18th March, 2021 (w.e.f. 18-3-2021). 3. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for clause (b) (w.e.f. 15-11-2016). 4. Subs. by Notification No. S.O. 4822(E), dated 12th September, 2018, for “remuneration up to two times the amount permissible under Section II” (w.e.f. 12-9-2018). (i) except as provided in para (a) of this Section, the managerial person is not receiving remuneration from any other company; (ii) the auditor or Company Secretary of the company or where the company has not appointed a Secretary, a Secretary in whole-time practice, certifies that all secured creditors and term lenders have stated in writing that they have no objection for the appointment of the managerial person 1[or other director] as well as the quantum of remuneration and such certificate is filed along with the return as prescribed under sub-section (4) of section 196. (iii) the auditor or Company Secretary or where the company has not appointed a secretary, a secretary in whole-time practice certifies that there is no default on payments to any creditors, and all dues to deposit holders are being settled on time. 2* * * * * 1[Explanation.-For the purposes of Section I, Section II and Section III, the term “or other director” shall mean a non-executive director or an independent director.] Section IV.— Perquisites not included in managerial remuneration: 1. A managerial person shall be eligible for the following perquisites which shall not be included in the computation of the ceiling on remuneration specified in Section II and Section III:— (a) contribution to provident fund, superannuation fund or annuity fund to the extent these either singly or put together are not taxable under the Income-tax Act, 1961(43 of 1961); (b) gratuity payable at a rate not exceeding half a month’s salary for each completed year of service; and (c) encashment of leave at the end of the tenure. 2. In addition to the perquisites specified in paragraph 1 of this section, an expatriate managerial person (including a non-resident Indian) shall be eligible to the following perquisites which shall not be included in the computation of the ceiling on remuneration specified in Section II or Section III— (a) Children’s education allowance: In case of children studying in or outside India, an allowance limited to a maximum of Rs. 12,000 per month per child or actual expenses incurred, whichever is less. Such allowance is admissible up to a maximum of two children. (b) Holiday passage for children studying outside India or family staying abroad: Return holiday passage once in a year by economy class or once in two years by first class to children and to the members of the family from the place of their study or stay abroad to India if they are not residing in India, with the managerial person. (c) Leave travel concession: Return passage for self and family in accordance with the rules specified by the company where it is proposed that the leave be spent in home country instead of anywhere in India. Explanation I.— For the purposes of Section II of this Part, “effective capital” means the aggregate of the paid-up share capital (excluding share application money or advances against shares); amount, if any, for the time being standing to the credit of share premium account; reserves and surplus (excluding revaluation reserve); long-term loans and deposits repayable after one year (excluding working capital loans, overdrafts, interest due on loans unless funded, bank guarantee, etc., and other short-term arrangements) as reduced by the aggregate of any investments (except in case of investment by an investment company whose principal business is acquisition of shares, stock, debentures or other securities),accumulated losses and preliminary expenses not written off. Explanation II.— (a) Where the appointment of the managerial person is made in the year in which company has been incorporated, the effective capital shall be calculated as on the date of such appointment; (b) In any other case the effective capital shall be calculated as on the last date of the financial year preceding the financial year in which the appointment of the managerial person is made. 1. Ins. by Notification No. S.O. 1256(E), dated 18th March, 2021 (w.e.f. 18-3-2021). 2. Clause (d) omitted by Notification No. S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018). Explanation III.— For the purposes of this Schedule, “family” means the spouse, dependent children and dependent parents of the managerial person. Explanation IV.— The Nomination and Remuneration Committee while approving the remuneration under Section II or Section III, shall— (a) take into account, financial position of the company, trend in the industry, appointee’s qualification, experience, past performance, past remuneration, etc.; (b) be in a position to bring about objectivity in determining the remuneration package while striking a balance between the interest of the company and the shareholders. Explanation V.— For the purposes of this Schedule, “negative effective capital” means the effective capital which is calculated in accordance with the provisions contained in Explanation I of this Part is less than zero. Explanation VI.— For the purposes of this Schedule:— 1* * * * * (B) “Remuneration” means remuneration as defined in clause (78) of section 2 and includes reimbursement of any direct taxes to the managerial person. Section V. —Remuneration payable to a managerial person in two companies: Subject to the provisions of sections I to IV, a managerial person shall draw remuneration from one or both companies, provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person. PART III Provisions applicable to Parts I and II of this Schedule 1. The appointment and remuneration referred to in Part I and Part II of this Schedule shall be subject to approval by a resolution of the shareholders in general meeting. 2. The auditor or the Secretary of the company or where the company is not required to appointed a Secretary, a Secretary in whole-time practice shall certify that the requirement of this Schedule have been complied with and such certificate shall be incorporated in the return filed with the Registrar under sub- section (4) of section 196. PART IV The Central Government may, by notification, exempt any class or classes of companies from any of the requirements contained in this Schedule. 1. Clause (A) omitted by Notification No S.O. 4822(E), dated 12th September, 2018 (w.e.f. 12-9-2018).
Sixth Schedule Schedule VI
SCHEDULE VI (See sections 55 and 186) The term ―infrastructural projects‖ or ―infrastructural facilities‖ includes the following projects or activities:— (1) Transportation (including inter modal transportation), includes the following:— (a) roads, national highways, state highways, major district roads, other district roads and village roads, including toll roads, bridges, highways, road transport providers and other road-related services; (b) rail system, rail transport providers, metro rail roads and other railway related services; (c) ports (including minor ports and harbours), inland waterways, coastal shipping including shipping lines and other port related services; (d) aviation, including airports, heliports, airlines and other airport related services; (e) logistics services. (2) Agriculture, including the following, namely:— (a) infrastructure related to storage facilities; (b) construction relating to projects involving agro-processing and supply of inputs to agriculture; (c) construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality. (3) Water management, including the following, namely:— (a) water supply or distribution; (b) irrigation; (c) water treatment. (4) Telecommunication, including the following, namely:— (a) basic or cellular, including radio paging; (b) domestic satellite service (i.e., satellite owned and operated by an Indian company for providing telecommunication service); (c) network of trunking, broadband network and internet services. (5) Industrial, commercial and social development and maintenance, including the following, namely:— (a) real estate development, including an industrial park or special economic zone; (b) tourism, including hotels, convention centres and entertainment centres; (c) public markets and buildings, trade fair, convention, exhibition, cultural centres, sports and recreation infrastructure, public gardens and parks; (d) construction of educational institutions and hospitals; (e) other urban development, including solid waste management systems, sanitation and sewerage systems. (6) Power, including the following:— (a) generation of power through thermal, hydro, nuclear, fossil fuel, wind and other renewable sources; (b) transmission, distribution or trading of power by laying a network of new transmission or distribution lines. (7) Petroleum and natural gas, including the following:— (a) exploration and production; (b) import terminals; (c) liquefaction and re-gasification; (d) storage terminals; (e) transmission networks and distribution networks including city gas infrastructure. (8) Housing, including the following:— (a) urban and rural housing including public / mass housing, slum rehabilitation, etc; (b) other allied activities such as drainage, lighting, laying of roads, sanitation and facilities. (9) Other miscellaneous facilities/services, including the following:— (a) mining and related activities; (b) technology related infrastructure; (c) manufacturing of components and materials or any other utilities or facilities required by the infrastructure sector like energy saving devices and metering devices; (d) environment related infrastructure; (e) disaster management services; (f) preservation of monuments and icons; (g) emergency services (including medical, police, fire and rescue). (10) such other facility service as may be prescribed.
Seventh Schedule Schedule VII
SCHEDULE VII (See section 135) Activities which may be included by companies in their Corporate Social Responsibility Policies Activities relating to:— 1[(i) eradicating hunger, poverty and malnutrition, 2[promoting health care including preventive health] and sanitation 3[Including contribution to the Swatch Bharat Kosh set-up by the Central Government for the promotion of sanitation] and making available safe drinking water; (ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects; (iii) promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups; (iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water 4[including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga]; (v) protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts; (vi) measures for the benefit of armed forces veterans, war widows and their dependents, 5[Central Armed Police Forces (CAPE) and Central Para Military Forces (CPMF) veterans, and their dependents including windows]; (vii) training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports; (viii) contribution to the Prime Minister's National Relief Fund or 6[Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or] any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; 7[(ix) (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and (b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs)] 1. Subs. by Notification No. G.S.R. 130(E), dated 27th February 2014, for item (i) to (x) (w.e.f. 1-4-2014). 2. Subs. by Notification No. G.S.R. 261(E), dated 31st March 2014 for “promoting preventive health care” (w.e.f. 31-3- 2014). 3. Ins. by Notification No. G.S.R. 568(E), dated by 6th August, 2014. 4. Ins. by Notification No. G.S.R. 741 (E), dated by 24th October, 2014(w.e.f. 24-10-2014). 5. Ins. by Notification No. G.S.R. 399(E), dated 23rd June, 2020 (w.e.f. 23-06-2020). 6. Ins. by Notification No. G.S.R. 313(E), dated 26th May, 2020 (w.e.f. 26-05-2020). 7. Subs. by Notification No. G.S.R. 525(E), dated by 24th August, 2020 for item (ix) and the entries thereto (w.e.f. 24-8-2020). (x) rural development projects.] 1[(xi) slum are development.Explanation.— For the purposes of this item, the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.] 2[(xii) disaster management, including relief, rehabilitation and reconstruction activities.] 1. Ins. by Notification No. G.S.R. 390(E), dated by 30th May, 2019 (w.e.f. 30-5-2019). 2 Subs. by Notification No. G.S.R. 776(E), dated 11th October, 2019.