For the Financial Year 2021-22 onwards its mandatory to rounding off the figures appearing in the Financial Statements depending upon the Total Income of the company



The Ministry of Corporate Affairs (MCA) has amended Schedule III of the Companies Act, 2013 Applicable  : 01stApril 2021

It has been made mandatory now for the companies to round off their figures on the basis of their ‘Total Income’ Not Turnover

“turnover” means the aggregate value of the realisation of amount made from the sale, supply or distribution of goods or on account of services rendered, or both, by the company during a financial year Section 2 (91).

Total Income includes :

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 Income (I + II)

 

xxx

xxx

“General instructions for preparation of Balance Sheet and statement of Profit and Loss of a company”, under sub-heading “General instructions”, in paragraph 4, in clause (i), for the word “may” the word “shall” and for the word “Turnover”, at both the places where it occurs, the words “Total Income” shall be substituted;

Applicable

(i) Depending upon the [Total Income] of the company, the figures appearing in the Financial Statements [shall] be rounded off 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. 

 

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

The rounding off shall be done to the nearest hundreds, thousands, lakhs or millions or decimal thereof in the case where the total income of the company is less than Rs 100 Crore. And in all other cases, the rounding off shall be done to the nearest lakhs, millions or crores or decimal thereof.

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