Schedule vi

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sir while preparing balance sheet acording to schedule VI do we necessarly need to round off the figures to nearest hundreds in case of compnies

thanks in advance reply soon

Replies (7)

yesyes

Originally posted by : himanshika juneja

sir while preparing balance sheet acording to schedule VI do we necessarly need to round off the figures to nearest hundreds in case of compnies
thanks in advance reply soon

Sch VI (R) prescribes “turnover–based” rounding off of figures for presenting in the Financial Statements. However, it is not compulsory to apply rounding off, and a Company can continue to disclose full figures. But, if the same is applied, the rounding off requirement should be complied with.

yes it necessary

ROUNDING OFF IS NOT COMPULSORY.
.
1) AS PER ICAI DRAFT GUIDANCE NOTE TO THE REVISED SCHEDULE VI TO THE COMPANIES ACT, 1956.
.
"However, it is not compulsory to apply rounding off and a company can continue to disclose full figures"

.
https://220.227.161.86/24323announ14223.pdf

 

.
2) ALSO AS PER MCA NOTIFICATION
.
"Depending upon the turnover of the company, the figures appearing in the Financial  Statements may be rounded off as below.
.
(It's may be and not should be)
.
https://www.mca.gov.in/Ministry/pdf/Schedule_VI_28feb2011.pdf
Originally posted by : himanshika juneja

sir while preparing balance sheet acording to schedule VI do we necessarly need to round off the figures to nearest hundreds in case of compnies

thanks in advance reply soon

Round off will be as follows:

-Turnover of co. upto 100 crore:Thousands,Lakhs,Millions

-Turnover of co. excceds 100 crore:Thousands,Lakhs,Millions,Crores

No its not necessary but once the companu=y exceeds a certain level of turnover it becomes too tedious and messy to show full figures in the Financials...!!!

thanks everyone for your precious replysmiley

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