MCA Changes in Schedule III as per Accounting Standards (not IndAS) CS Hemant Gupta

MCA vide Notification dated 24.03.2021, made some amendments in Schedule III to the Companies Act, 2013, applicable w.e.f. 01.04.2021, following are the important changes made in Schedule related to the Companies whose Financial Statements are to be prepared as per Accounting Standards (not IndAS):-

1. In General Instructions (Round Off of figures now Compulsory):-

(i) Depending upon the turnover Total Income of the company, the figures appearing in the Financial Statements may  shall be rounded off as given below:—

Turnover  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.

2. In Balance Sheet:-

Existing Presentation

Modified Presentation


Non-current Assets

(1)     (a) Property, Plant and Equipment

(i)                  Tangible Assets



Non-current Assets

(1)     (a) Property, Plant and Equipment and Intangible Assets

(i)     Property, Plant and Equipment


UNDER NOTE FOR SHARE CAPITAL, new disclosure Added:-

(m) A company shall disclose Shareholding of Promoters as below:

Shares held by promoters at the end of the year

% change during the year

S. No.

Promoter Name

No. of Shares

% of total shares








(v) current maturities of Long term borrowing shall be disclosed separately

5. After FA. Trade Payables,

    FB.Trade Payables due for payment

6. In Other Current Liabilities:-

(a) Current maturities of long-term debt;

7. In Note for Tangible Assets Property, Plant and Equipment:-



A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately.

A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment) and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately

Same as above for Intangible Assets

8. Long-term loans and advances

(b) Security Deposits;

9. Other Non-current assets

(ia) Security Deposits

(iv) For trade receivables outstanding, following ageing schedule shall be given:

10. Trade Receivables

 Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated

(iv) For trade receivables outstanding, following ageing schedule shall be given:

11. New Disclosure:-

VA- Where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they have been used.

12. Additional Regulatory Information

(i) 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) 5 whose title deeds are not held in the name of the company in format given

(ii) 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.

(iii) 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

Type of Borrower

Amount of loan or advance in the nature of loan outstanding

Percentage to the total Loans and Advances in the nature of loans










Related Parties



(iv) Capital-Work-in Progress (CWIP)

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

CWIP aging schedule:


(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**:


(v) Details of Benami Property held to be given

(vi) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following:-

(a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

(b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed.

(vii) Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, details to be given

( viii) Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details as per format given.

(ix) Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.

(x) Compliance with number of layers of companies

(xi) Following Ratios to be disclosed:- (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt Service Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j) Return on Capital employed, (k) Return on investment.

*The company shall explain the items included in numerator and denominator for computing the above ratios. Further explanation shall be provided for any change in the ratio by more than 25% as compared to the preceding year.

(xii) Compliance with approved Scheme(s) of Arrangements

(xiii) Utilisation of Borrowed funds and share premium:

(A) Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries, then the company has to give information as prescribed.

(B) Same as above if company has received any funds

13. Statement of Profit and Loss:-

i. Total Revenue Total Income

ii. 5. Additional information

(ix) Undisclosed income

The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under 11 any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.;

14. CSR Related disclosure

15. Details of Crypto Currency or Virtual Currency

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