Amendments in Schedule III of Companies Act 2013 - Part 1

Several changes have been brought into Schedule III to the Companies Act, 2013. This article deals with the changes brought into Schedule III applicable to the companies whose financial statements are prepared in accordance with the Companies(Accounting Standards) Rules,2006. Let's understand the changes one by one-

1. i) Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as given below

(ii) Once a unit of measurement is used, it shall be used uniformly in the Financial Statements.

2. A company shall disclose Shareholding of Promoters as below

Promoter means a person:

• who has been named as such in a prospectus or is identified by the company in the annual return referred to in section 92; or
• who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or
• in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act;

Provided that nothing in sub-clause (c) shall apply to a person who is acting merely in a professional capacity;

*Details shall be given separately for each class of shares

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

3. Trade payables ageing Schedule

4. Trade Receivables Ageing Schedule

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

5. Title deeds of Immovable Property not held in name of the Company

The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company in format given below and where such immovable property is jointly held with others, details are required to be given to the extent of the company‘s share.

6. Disclosure on Revaluation of Assets

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

7. Disclosure on Loans/ Advance to Directors/ KMP/ Related parties

Following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

8. Capital-Work-in Progress (CWIP)

(a) For Capital-work-in progress, the following ageing schedule shall be given:

CWIP ageing schedule

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

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

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

9. Intangible assets under development

a. For Intangible assets under development, the following ageing schedule shall be given:

Intangible assets under development ageing schedule

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

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

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

The remaining changes are dealt with in the next part of the article.