Round off Figures Appearing In Financial Statement and New Financial statement format for all entity

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Hukam Chand (Querist)
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03 January 2025 Dear CA Club Team,
whenever I prepare financial statements at the time of audit, one thing is not clear to me that the figures that I should write in it should be written in thousands, lakhs, millions.

Is there any such company act or government circular according to which it is necessary to write the figures of financial statements in thousands, lakhs, millions. If so, then please share any circular, notification.

Secondly, I want to know whether any new format of financial statement has come which is necessary for corporate and non-corporate assessees. Please share the new financial format and also share the notification.

Third point, is there any website from where all these types of notifications, circulars can be seen? Please share it so that I can also get updated on time.

Thanks

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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12 August 2025 Hey! Here's a clear response to your queries about rounding off figures, new financial statement formats, and where to track official updates:

1. Rounding Off Figures in Financial Statements
No strict legal mandate under the Companies Act or Accounting Standards specifically requires figures to be rounded off in thousands, lakhs, or millions.

However, commonly accepted practice (and recommended for readability) is:

For small companies and individual accounts, figures are usually shown as they are (units or thousands).

For large companies or group accounts, figures are often rounded off to thousands (in '000) or lakhs (in ₹ lakhs) for simplicity and to avoid clutter.

If rounding off, a note must be added in the financial statements stating the unit of figures, e.g., "Figures are rounded off to nearest thousand."

Relevant references:

Schedule III of the Companies Act, 2013 doesn’t mandate a specific rounding format but requires disclosure of units in notes.

Ind AS 1 (Presentation of Financial Statements) allows rounding but emphasizes clarity and consistency.

2. New Format of Financial Statements
The Ministry of Corporate Affairs (MCA) revises the format of financial statements and schedules periodically.

Revised Schedule III (w.e.f. 1 April 2021) is currently applicable for all companies, which prescribes the format for Balance Sheet, Statement of Profit & Loss, and Notes.

For non-corporate assessees, there is no mandatory prescribed format like Schedule III, but they should comply with applicable Accounting Standards.

The MCA website publishes all relevant notifications and circulars related to financial statement formats.

Link to MCA Notifications on Format:
MCA Circulars & Notifications
(Check “Notifications” and “Circulars” section)

3. Where to Track Notifications, Circulars
MCA Portal is the primary official source for:

Companies Act amendments,

Notifications,

Circulars,

Financial statement formats,

Rules & regulations.

Other helpful sources:

ICAI website (www.icai.org) – for accounting standards and related guidance.

Income Tax Department website – for tax-related circulars.

GST Portal – for GST notifications.

Govt Gazette website for official gazette notifications.

You can subscribe to MCA newsletters or use professional update portals like Taxmann, ClearTax, or CAclubindia to stay updated.

Summary:
Query Answer/Reference
Rounding off figures No strict mandate; commonly done in thousands/lakhs; disclose rounding method in notes
New financial statement format Revised Schedule III applicable for companies from 1 April 2021; MCA website for latest formats
Where to see updates MCA website (mca.gov.in), ICAI website, official gazette, tax portals, and professional sites

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