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Whether we should round off nearest hundreds, thousands, lakhs or millions, or decimals for pvt ltd

SANDIP (ARTICLE ASSISTANT) (213 Points)

13 June 2022

Earlier is was optional but not it is mandatory to rounding off the figures appearing in the Financial Statements depending upon the Total Income of the company, as given below:—

[Total Income] 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.

whether we should round off nearest hundreds, thousands, lakhs or millions, or decimals for private limited co ?

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CA. ANKIT PANDYA (CA) (682 Points)
Replied 14 June 2022

Private Limited Companies are no exception. Depending upon the applicability of Ind AS, Financials are required to be prepared by companies as per Revised Schedule III as prescribed in Division I for Non Ind AS and Division II for Ind AS applicable companies.

Guidance note on Revised Schedule III clearly states and is quoted as under:

"Depending upon the total income of the company, the figures appearing in the Financial Statements shall be rounded off. It is now compulsory to apply rounding off and a company cannot continue to disclose full figures. In order to apply the same, the rounding off requirement should be complied with."