CA. PRAMOD JAINFCA, FCS, FCMA, LL.B, MIMA, DISA

CA. PRAMOD JAINFCA, FCS, FCMA, LL.B, MIMA, DISA

LUNAWAT & CO.Chartered Accountants

LUNAWAT & CO.Chartered Accountants11th December 201411th December 2014

Overview with Schedule IIIOverview with Schedule IIIOverview with Schedule IIIOverview with Schedule IIIOverview with Schedule IIIOverview with Schedule IIIOverview with Schedule IIIOverview with Schedule III

THE STRUCTURETHE STRUCTURETHE STRUCTURETHE STRUCTURE

1956195619561956 2013201320132013

13 Parts13 Parts13 Parts13 Parts 29 Chapters29 Chapters29 Chapters29 Chapters

658 Sections658 Sections658 Sections658 Sections 470 Sections470 Sections470 Sections470 Sections

15 Schedules15 Schedules15 Schedules15 Schedules 7 Schedules7 Schedules7 Schedules7 Schedules

67 Definitions67 Definitions67 Definitions67 Definitions 95 Definitions95 Definitions95 Definitions95 Definitions

Nil RulesNil RulesNil RulesNil Rules 400+ Rules400+ Rules400+ Rules400+ Rules

Lunawat & Co.

• 33 New Definitions; 11 removed• Phrase “as may be prescribed” appears

“346 times” in 2013 Act

GENERALGENERALGENERALGENERAL� It applies to the whole of India and is also It applies to the whole of India and is also It applies to the whole of India and is also It applies to the whole of India and is also

applicable to certain companies or bodies applicable to certain companies or bodies applicable to certain companies or bodies applicable to certain companies or bodies

corporate governed by Special Actscorporate governed by Special Actscorporate governed by Special Actscorporate governed by Special Acts

� Substantial part of the Companies Act, 2013 Substantial part of the Companies Act, 2013 Substantial part of the Companies Act, 2013 Substantial part of the Companies Act, 2013

in form of rules, prescribed separately.in form of rules, prescribed separately.in form of rules, prescribed separately.in form of rules, prescribed separately.

� 98 Sections98 Sections98 Sections98 Sections made applicable made applicable made applicable made applicable w.e.fw.e.fw.e.fw.e.f. 12. 12. 12. 12thththth

September 2013September 2013September 2013September 2013

� 183 Sections and Rules made applicable 183 Sections and Rules made applicable 183 Sections and Rules made applicable 183 Sections and Rules made applicable

w.e.fw.e.fw.e.fw.e.f. 1. 1. 1. 1stststst April 2014, Restructuring, NCLT & April 2014, Restructuring, NCLT & April 2014, Restructuring, NCLT & April 2014, Restructuring, NCLT &

NFRA pendingNFRA pendingNFRA pendingNFRA pending

Lunawat & Co.

Lunawat & Co.

Public PrivateCompany

NEW PROVISIONSNEW PROVISIONSNEW PROVISIONSNEW PROVISIONS

� OPCOPCOPCOPC

� Small Co.Small Co.Small Co.Small Co.

� Dormant CoDormant CoDormant CoDormant Co

� NCLT & NCALTNCLT & NCALTNCLT & NCALTNCLT & NCALT

� CSRCSRCSRCSR

� NFRANFRANFRANFRA

� Registered Registered Registered Registered ValuersValuersValuersValuers

� FraudFraudFraudFraud

Lunawat & Co.

STRESS CREATORSSTRESS CREATORSSTRESS CREATORSSTRESS CREATORS� Huge Penalties Huge Penalties Huge Penalties Huge Penalties

� Rampant Prosecution ProvisionsRampant Prosecution ProvisionsRampant Prosecution ProvisionsRampant Prosecution Provisions

� Fraud Fraud Fraud Fraud –––– 19 Provisions19 Provisions19 Provisions19 Provisions

� Imprisonment Imprisonment Imprisonment Imprisonment –––– 61 Provisions61 Provisions61 Provisions61 Provisions

� Class ActionsClass ActionsClass ActionsClass Actions

� Penalties for late filingsPenalties for late filingsPenalties for late filingsPenalties for late filings

� Even Board Resolutions to be filedEven Board Resolutions to be filedEven Board Resolutions to be filedEven Board Resolutions to be filed

� Bringing in monies made toughBringing in monies made toughBringing in monies made toughBringing in monies made tough

� Loans to be given only on interestLoans to be given only on interestLoans to be given only on interestLoans to be given only on interest

Lunawat & Co.

STRESS CREATORSSTRESS CREATORSSTRESS CREATORSSTRESS CREATORS� Detailed Annual Returns Detailed Annual Returns Detailed Annual Returns Detailed Annual Returns

� Detailed Directors Reports Detailed Directors Reports Detailed Directors Reports Detailed Directors Reports

� SA compliance made mandatory for SA compliance made mandatory for SA compliance made mandatory for SA compliance made mandatory for

auditorsauditorsauditorsauditors

� Director duties Director duties Director duties Director duties –––– conflict of interestconflict of interestconflict of interestconflict of interest

� Hosting on Website made mandatory Hosting on Website made mandatory Hosting on Website made mandatory Hosting on Website made mandatory ––––

17 17 17 17 provisions including:provisions including:provisions including:provisions including:

� Closure of members RegisterClosure of members RegisterClosure of members RegisterClosure of members Register

� GM noticeGM noticeGM noticeGM notice

� Director ResignationDirector ResignationDirector ResignationDirector Resignation

Lunawat & Co.

OPPORTUNITIESOPPORTUNITIESOPPORTUNITIESOPPORTUNITIES

�Women DirectorsWomen DirectorsWomen DirectorsWomen Directors

� Independent DirectorsIndependent DirectorsIndependent DirectorsIndependent Directors

�Resident DirectorsResident DirectorsResident DirectorsResident Directors

�Registered Registered Registered Registered ValuersValuersValuersValuers

�OPCOPCOPCOPC & Dormant Cos& Dormant Cos& Dormant Cos& Dormant Cos

�NCLT & NCALTNCLT & NCALTNCLT & NCALTNCLT & NCALT

�Cash Flow StatementCash Flow StatementCash Flow StatementCash Flow Statement

�Consolidated Financial Consolidated Financial Consolidated Financial Consolidated Financial StatementsStatementsStatementsStatements

Lunawat & Co.

OPPORTUNITIESOPPORTUNITIESOPPORTUNITIESOPPORTUNITIES

� Internal Internal Internal Internal AuditAuditAuditAudit

�Fixed Asset Registers to ascertain Fixed Asset Registers to ascertain Fixed Asset Registers to ascertain Fixed Asset Registers to ascertain

actual life of each assetactual life of each assetactual life of each assetactual life of each asset

� Internal Financial Control SystemsInternal Financial Control SystemsInternal Financial Control SystemsInternal Financial Control Systems

�Secretarial Records and compliance Secretarial Records and compliance Secretarial Records and compliance Secretarial Records and compliance

auditsauditsauditsaudits

�Fast Track MergerFast Track MergerFast Track MergerFast Track Merger

�Conversion into LLPConversion into LLPConversion into LLPConversion into LLP

Lunawat & Co.

Lunawat & Co.

BOOKSBOOKSBOOKSBOOKS� Permits the maintenance of books of a/Permits the maintenance of books of a/Permits the maintenance of books of a/Permits the maintenance of books of a/cscscscs & & & &

other books & papers in electronic mode other books & papers in electronic mode other books & papers in electronic mode other books & papers in electronic mode

� Shall remain accessible in India Shall remain accessible in India Shall remain accessible in India Shall remain accessible in India

�RRRRetained etained etained etained completely in the format in which they were completely in the format in which they were completely in the format in which they were completely in the format in which they were

originally generated, sent or originally generated, sent or originally generated, sent or originally generated, sent or receivedreceivedreceivedreceived

� Back up to kept in server located in IndiaBack up to kept in server located in IndiaBack up to kept in server located in IndiaBack up to kept in server located in India

� To intimate to ROC along with FSTo intimate to ROC along with FSTo intimate to ROC along with FSTo intimate to ROC along with FS

�Name Name Name Name of the service provider; of the service provider; of the service provider; of the service provider;

� IP IP IP IP address of service provider; address of service provider; address of service provider; address of service provider;

�Location Location Location Location of the service provider (wherever applicable); of the service provider (wherever applicable); of the service provider (wherever applicable); of the service provider (wherever applicable);

�Where Where Where Where the books the books the books the books maintained maintained maintained maintained on cloud, such address as on cloud, such address as on cloud, such address as on cloud, such address as

provided by the service provider. provided by the service provider. provided by the service provider. provided by the service provider.

Lunawat & Co.

BOOKSBOOKSBOOKSBOOKS

� Books on accrual basis and according to the Books on accrual basis and according to the Books on accrual basis and according to the Books on accrual basis and according to the

double entry system of accountingdouble entry system of accountingdouble entry system of accountingdouble entry system of accounting

� To be maintained at R.O. books, papers & FS To be maintained at R.O. books, papers & FS To be maintained at R.O. books, papers & FS To be maintained at R.O. books, papers & FS ––––

Branches Branches Branches Branches –––– summarized periodical returnssummarized periodical returnssummarized periodical returnssummarized periodical returns

� SSSSummarised ummarised ummarised ummarised returns of returns of returns of returns of books books books books of of of of a/c kept a/c kept a/c kept a/c kept and and and and

maintained outside India maintained outside India maintained outside India maintained outside India to to to to be sent to be sent to be sent to be sent to R.O R.O R.O R.O at at at at

quarterly intervals quarterly intervals quarterly intervals quarterly intervals

� Preserve books for 8 years Preserve books for 8 years Preserve books for 8 years Preserve books for 8 years –––– Investigation Investigation Investigation Investigation sepsepsepsep

� NonNonNonNon---- compliance compliance compliance compliance –––– MD, WTD in charge of MD, WTD in charge of MD, WTD in charge of MD, WTD in charge of

finance, CFO or other person in charge by Boardfinance, CFO or other person in charge by Boardfinance, CFO or other person in charge by Boardfinance, CFO or other person in charge by Board----

Imprisonment Imprisonment Imprisonment Imprisonment uptouptouptoupto I I I I yryryryr or Fine or Fine or Fine or Fine –––– 50 k to 500 k50 k to 500 k50 k to 500 k50 k to 500 k

Lunawat & Co.

FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS

� Financial Year Financial Year Financial Year Financial Year –––– 31/331/331/331/3

� Financial Statement defined Financial Statement defined Financial Statement defined Financial Statement defined ---- Includes Includes Includes Includes

notes on B/s, Profit & Loss statement, notes on B/s, Profit & Loss statement, notes on B/s, Profit & Loss statement, notes on B/s, Profit & Loss statement,

Cash FlowCash FlowCash FlowCash Flow

� Cash Flow for all except OPC, SC, DC. Cash Flow for all except OPC, SC, DC. Cash Flow for all except OPC, SC, DC. Cash Flow for all except OPC, SC, DC.

� Shall give true and fair view.Shall give true and fair view.Shall give true and fair view.Shall give true and fair view.

� Shall comply with Accounting StandardsShall comply with Accounting StandardsShall comply with Accounting StandardsShall comply with Accounting Standards

� Shall be in form of Schedule III.Shall be in form of Schedule III.Shall be in form of Schedule III.Shall be in form of Schedule III.

� To be laid before AGMTo be laid before AGMTo be laid before AGMTo be laid before AGM

Lunawat & Co.

FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS

� Has to be AS compliant:Has to be AS compliant:Has to be AS compliant:Has to be AS compliant:

� FS to disclose deviation from ASFS to disclose deviation from ASFS to disclose deviation from ASFS to disclose deviation from AS

�Reason for deviationReason for deviationReason for deviationReason for deviation

� Financial effect arising of deviation Financial effect arising of deviation Financial effect arising of deviation Financial effect arising of deviation

� NonNonNonNon---- compliancecompliancecompliancecompliance

�MD, MD, MD, MD,

�WTD WTD WTD WTD inchargeinchargeinchargeincharge of financeof financeof financeof finance

� CFOCFOCFOCFO

� Any other person charged by Board Any other person charged by Board Any other person charged by Board Any other person charged by Board

� If no one If no one If no one If no one –––– all directors all directors all directors all directors

� Imprisonment Imprisonment Imprisonment Imprisonment uptouptouptoupto I I I I yryryryr or F or F or F or F –––– 50 k to 500 k or both50 k to 500 k or both50 k to 500 k or both50 k to 500 k or both

Lunawat & Co.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED FINANCIAL STATEMENTS

� One or more subsidiaries One or more subsidiaries One or more subsidiaries One or more subsidiaries –––– CFS CFS CFS CFS –––– Intermediary Intermediary Intermediary Intermediary

Subs. not required. No exemption if Foreign Co.Subs. not required. No exemption if Foreign Co.Subs. not required. No exemption if Foreign Co.Subs. not required. No exemption if Foreign Co.

� Subsidiary shall include associate co. & Joint Subsidiary shall include associate co. & Joint Subsidiary shall include associate co. & Joint Subsidiary shall include associate co. & Joint

Venture Venture Venture Venture –––– exemption if no subsidiary till 31.3.15exemption if no subsidiary till 31.3.15exemption if no subsidiary till 31.3.15exemption if no subsidiary till 31.3.15

� Statement to be filed in AOCStatement to be filed in AOCStatement to be filed in AOCStatement to be filed in AOC----1 1 1 1 –––– of CFS not FSof CFS not FSof CFS not FSof CFS not FS

� In case not required to prepare CFS under AS In case not required to prepare CFS under AS In case not required to prepare CFS under AS In case not required to prepare CFS under AS ––––

just comply with Schedule III just comply with Schedule III just comply with Schedule III just comply with Schedule III ---- Para 11 of AS 21Para 11 of AS 21Para 11 of AS 21Para 11 of AS 21�Control intended is temporary Control intended is temporary Control intended is temporary Control intended is temporary –––– held for subsequent held for subsequent held for subsequent held for subsequent

disposaldisposaldisposaldisposal

�Operates under severe longOperates under severe longOperates under severe longOperates under severe long----term restrictions which term restrictions which term restrictions which term restrictions which

significantly impair its ability to transfer funds to holdingsignificantly impair its ability to transfer funds to holdingsignificantly impair its ability to transfer funds to holdingsignificantly impair its ability to transfer funds to holding

Lunawat & Co.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED FINANCIAL STATEMENTS

� Provisions under Companies Act 2013 Provisions under Companies Act 2013 Provisions under Companies Act 2013 Provisions under Companies Act 2013

applicable for:applicable for:applicable for:applicable for:

� PreparationPreparationPreparationPreparation

� AdoptionAdoptionAdoptionAdoption

� AuditAuditAuditAudit

� Appointment in AGM??Appointment in AGM??Appointment in AGM??Appointment in AGM??

� Appointment for 5 Years??Appointment for 5 Years??Appointment for 5 Years??Appointment for 5 Years??

� 20 limit??20 limit??20 limit??20 limit??

Lunawat & Co.

Lunawat & Co.

USEFUL LIVESUSEFUL LIVESUSEFUL LIVESUSEFUL LIVES1.1.1.1. BuildingsBuildingsBuildingsBuildings

2.2.2.2. Bridges, Culverts, Bridges, Culverts, Bridges, Culverts, Bridges, Culverts, bundersbundersbundersbunders, etc., etc., etc., etc.

3.3.3.3. RoadsRoadsRoadsRoads

4.4.4.4. Plant & MachineryPlant & MachineryPlant & MachineryPlant & Machinery

5.5.5.5. Furniture & FixtureFurniture & FixtureFurniture & FixtureFurniture & Fixture

6.6.6.6. Motor VehiclesMotor VehiclesMotor VehiclesMotor Vehicles

7.7.7.7. ShipsShipsShipsShips

8.8.8.8. Aircrafts & HelicoptersAircrafts & HelicoptersAircrafts & HelicoptersAircrafts & Helicopters

9.9.9.9. Railway sidings, Locomotives, Rolling Stocks, Railway sidings, Locomotives, Rolling Stocks, Railway sidings, Locomotives, Rolling Stocks, Railway sidings, Locomotives, Rolling Stocks,

Tramways…Tramways…Tramways…Tramways…

Lunawat & Co.

USEFUL LIVESUSEFUL LIVESUSEFUL LIVESUSEFUL LIVES10.10.10.10. Ropeway StructuresRopeway StructuresRopeway StructuresRopeway Structures

11.11.11.11. Office EquipmentOffice EquipmentOffice EquipmentOffice Equipment

12.12.12.12. Computers and Data Processing UnitsComputers and Data Processing UnitsComputers and Data Processing UnitsComputers and Data Processing Units

13.13.13.13. Laboratory EquipmentLaboratory EquipmentLaboratory EquipmentLaboratory Equipment

14.14.14.14. Electrical Installations and EquipmentElectrical Installations and EquipmentElectrical Installations and EquipmentElectrical Installations and Equipment

15.15.15.15. Hydraulic Works, Pipelines & SluicesHydraulic Works, Pipelines & SluicesHydraulic Works, Pipelines & SluicesHydraulic Works, Pipelines & Sluices

� 12 Industry Specific Rates12 Industry Specific Rates12 Industry Specific Rates12 Industry Specific Rates

� Double Double Double Double shift shift shift shift –––– increase by 50%, triple shift increase by 50%, triple shift increase by 50%, triple shift increase by 50%, triple shift ––––

100100100100% % % % ---- reduction in useful lifereduction in useful lifereduction in useful lifereduction in useful life

� 100% on assets below 5K 100% on assets below 5K 100% on assets below 5K 100% on assets below 5K –––– not not not not requiredrequiredrequiredrequired

Lunawat & Co.

DEPRECIATIONDEPRECIATIONDEPRECIATIONDEPRECIATION� The useful live of asset is period over which an The useful live of asset is period over which an The useful live of asset is period over which an The useful live of asset is period over which an

asset is expected to be available for use or the asset is expected to be available for use or the asset is expected to be available for use or the asset is expected to be available for use or the

no of production unit expected to be obtainedno of production unit expected to be obtainedno of production unit expected to be obtainedno of production unit expected to be obtained

� No rate for Intangible assets (except toll) No rate for Intangible assets (except toll) No rate for Intangible assets (except toll) No rate for Intangible assets (except toll) –––– AS AS AS AS

� Useful lives changed Useful lives changed Useful lives changed Useful lives changed EgEgEgEg::::––––

� Factory Building from 58 Factory Building from 58 Factory Building from 58 Factory Building from 58 YrsYrsYrsYrs to 30 to 30 to 30 to 30 YrsYrsYrsYrs: : : :

�General FFGeneral FFGeneral FFGeneral FF–––– 15 to 1015 to 1015 to 1015 to 10

� Plant & Mach. General Plant & Mach. General Plant & Mach. General Plant & Mach. General –––– 20 to 1520 to 1520 to 1520 to 15

�Motor Car Motor Car Motor Car Motor Car ---- 10 to 810 to 810 to 810 to 8

� Laptop, computer Laptop, computer Laptop, computer Laptop, computer ---- 6 app to 3 6 app to 3 6 app to 3 6 app to 3

Lunawat & Co.

WHAT TO DO??WHAT TO DO??WHAT TO DO??WHAT TO DO??� On commencement On commencement On commencement On commencement –––– would be depreciated would be depreciated would be depreciated would be depreciated

over remaining useful lifeover remaining useful lifeover remaining useful lifeover remaining useful life

� Where remaining useful live Where remaining useful live Where remaining useful live Where remaining useful live ---- nil nil nil nil ––––trftrftrftrf to Surplus to Surplus to Surplus to Surplus

� ThreeThreeThreeThree amendmentsamendmentsamendmentsamendments totototo ScheduleScheduleScheduleSchedule IIIIIIII::::

1.1.1.1. IfIfIfIf cocococo.... adoptsadoptsadoptsadopts differentdifferentdifferentdifferent usefulusefulusefuluseful lifelifelifelife ---- totototo bebebebe discloseddiscloseddiscloseddisclosed inininin FSFSFSFS

andandandand provideprovideprovideprovide justificationjustificationjustificationjustification dulydulydulyduly supportedsupportedsupportedsupported bybybyby technicaltechnicaltechnicaltechnical

adviceadviceadviceadvice....

2.2.2.2. ComponentComponentComponentComponent accountingaccountingaccountingaccounting isisisis voluntaryvoluntaryvoluntaryvoluntary wwww....eeee....ffff.... 1111....4444....14141414 &&&&

mandatorymandatorymandatorymandatory wwww....eeee....ffff.... 1111....4444....15151515

3.3.3.3. IfIfIfIf asset'sasset'sasset'sasset's usefulusefulusefuluseful lifelifelifelife asasasas onononon 31313131....3333....2015201520152015 isisisis Nil,Nil,Nil,Nil, CoCoCoCo.... hashashashas nownownownow

anananan optionoptionoptionoption totototo transfertransfertransfertransfer thethethethe balancebalancebalancebalance afterafterafterafter retainingretainingretainingretaining

residualresidualresidualresidual valuevaluevaluevalue totototo SurplusSurplusSurplusSurplus.... EarlierEarlierEarlierEarlier itititit waswaswaswas mandatorymandatorymandatorymandatory....

Lunawat & Co.

SCHEDULE IIISCHEDULE IIISCHEDULE IIISCHEDULE IIILunawat & Co.

STRUCTURE OF SCHEDULE IIISTRUCTURE OF SCHEDULE IIISTRUCTURE OF SCHEDULE IIISTRUCTURE OF SCHEDULE III

1.1.1.1. General InstructionsGeneral InstructionsGeneral InstructionsGeneral Instructions

2.2.2.2. Part IPart IPart IPart I

1.1.1.1. Form of Balance SheetForm of Balance SheetForm of Balance SheetForm of Balance Sheet

2.2.2.2. General Instructions for preparation of Balance General Instructions for preparation of Balance General Instructions for preparation of Balance General Instructions for preparation of Balance SheetSheetSheetSheet

3.3.3.3. Part IIPart IIPart IIPart II

1.1.1.1. Form of Statement of Profit and lossForm of Statement of Profit and lossForm of Statement of Profit and lossForm of Statement of Profit and loss

2.2.2.2. General Instructions for preparation of Statement General Instructions for preparation of Statement General Instructions for preparation of Statement General Instructions for preparation of Statement of Profit and Lossof Profit and Lossof Profit and Lossof Profit and Loss

3.3.3.3. General Instructions for preparation of General Instructions for preparation of General Instructions for preparation of General Instructions for preparation of Consolidated Financial StatementsConsolidated Financial StatementsConsolidated Financial StatementsConsolidated Financial Statements

Lunawat & Co.

GENERAL INSTRUCTIONSGENERAL INSTRUCTIONSGENERAL INSTRUCTIONSGENERAL INSTRUCTIONS

� Disclosure requirements of AS shall Disclosure requirements of AS shall Disclosure requirements of AS shall Disclosure requirements of AS shall prevailprevailprevailprevail over over over over

Schedule III. Companies Act disclosures also required.Schedule III. Companies Act disclosures also required.Schedule III. Companies Act disclosures also required.Schedule III. Companies Act disclosures also required.

� Disclosures are in addition to and not in substitution Disclosures are in addition to and not in substitution Disclosures are in addition to and not in substitution Disclosures are in addition to and not in substitution

of the disclosure requirements of AS.of the disclosure requirements of AS.of the disclosure requirements of AS.of the disclosure requirements of AS.

� Each item on face of B/S & Statement of P & L is to Each item on face of B/S & Statement of P & L is to Each item on face of B/S & Statement of P & L is to Each item on face of B/S & Statement of P & L is to

be cross referenced to related information in notes to be cross referenced to related information in notes to be cross referenced to related information in notes to be cross referenced to related information in notes to

a/ca/ca/ca/c

� Notes to accounts to contain information in addition Notes to accounts to contain information in addition Notes to accounts to contain information in addition Notes to accounts to contain information in addition

to that presented in the financial statement including to that presented in the financial statement including to that presented in the financial statement including to that presented in the financial statement including

narrative descriptionsnarrative descriptionsnarrative descriptionsnarrative descriptions

� Corresponding amounts for immediately preceding Corresponding amounts for immediately preceding Corresponding amounts for immediately preceding Corresponding amounts for immediately preceding

reporting period to be given, except for first year of reporting period to be given, except for first year of reporting period to be given, except for first year of reporting period to be given, except for first year of

incorporation.incorporation.incorporation.incorporation.

Lunawat & Co.

GENERAL INSTRUCTIONSGENERAL INSTRUCTIONSGENERAL INSTRUCTIONSGENERAL INSTRUCTIONS

� Balance to be maintained between providing Balance to be maintained between providing Balance to be maintained between providing Balance to be maintained between providing

excessive details that may not assist users and not excessive details that may not assist users and not excessive details that may not assist users and not excessive details that may not assist users and not

providing important information.providing important information.providing important information.providing important information.

� Terms used shall be as per ASTerms used shall be as per ASTerms used shall be as per ASTerms used shall be as per AS

� Rounding off based on turnover.Rounding off based on turnover.Rounding off based on turnover.Rounding off based on turnover.

� Less than Less than Less than Less than RsRsRsRs. 100 Crores . 100 Crores . 100 Crores . 100 Crores ---- To the nearest hundreds, To the nearest hundreds, To the nearest hundreds, To the nearest hundreds,

thousands, lacs or millions or decimal thereofthousands, lacs or millions or decimal thereofthousands, lacs or millions or decimal thereofthousands, lacs or millions or decimal thereof

� RsRsRsRs. 100 Crores or more . 100 Crores or more . 100 Crores or more . 100 Crores or more ---- To the nearest lacs or millions or To the nearest lacs or millions or To the nearest lacs or millions or To the nearest lacs or millions or

crores or decimal thereofcrores or decimal thereofcrores or decimal thereofcrores or decimal thereof

Lunawat & Co.

BASICS BASICS BASICS BASICS –––– CURRENT VS. NONCURRENT VS. NONCURRENT VS. NONCURRENT VS. NON----CURRENTCURRENTCURRENTCURRENT

� Current / NonCurrent / NonCurrent / NonCurrent / Non---- Current.Current.Current.Current.

� Current Asset Current Asset Current Asset Current Asset ---- satisfies any of following criteria; it is:satisfies any of following criteria; it is:satisfies any of following criteria; it is:satisfies any of following criteria; it is:

� In the company’s normal operating cycle it is; In the company’s normal operating cycle it is; In the company’s normal operating cycle it is; In the company’s normal operating cycle it is;

� Intended for sale; orIntended for sale; orIntended for sale; orIntended for sale; or

� Intended to be consumed; orIntended to be consumed; orIntended to be consumed; orIntended to be consumed; or

�Expected to be realized.Expected to be realized.Expected to be realized.Expected to be realized.

� Held primarily for the purpose of being traded; orHeld primarily for the purpose of being traded; orHeld primarily for the purpose of being traded; orHeld primarily for the purpose of being traded; or

� Expected to be realized within 12 months after the Expected to be realized within 12 months after the Expected to be realized within 12 months after the Expected to be realized within 12 months after the

reporting date; orreporting date; orreporting date; orreporting date; or

� Cash or cash equivalent unless it is restricted from being Cash or cash equivalent unless it is restricted from being Cash or cash equivalent unless it is restricted from being Cash or cash equivalent unless it is restricted from being

exchanged or used to settle a liability for at least 12 exchanged or used to settle a liability for at least 12 exchanged or used to settle a liability for at least 12 exchanged or used to settle a liability for at least 12

months after reporting date.months after reporting date.months after reporting date.months after reporting date.

Lunawat & Co.

BASICS BASICS BASICS BASICS –––– OPERATING CYCLEOPERATING CYCLEOPERATING CYCLEOPERATING CYCLE

� Operating cycle is the time between the acquisition of Operating cycle is the time between the acquisition of Operating cycle is the time between the acquisition of Operating cycle is the time between the acquisition of

assets for processing and their realization in Cash or assets for processing and their realization in Cash or assets for processing and their realization in Cash or assets for processing and their realization in Cash or

cash equivalent. cash equivalent. cash equivalent. cash equivalent.

� In other words Operating cycle is a period beginning In other words Operating cycle is a period beginning In other words Operating cycle is a period beginning In other words Operating cycle is a period beginning

from acquisition of raw material and ending on from acquisition of raw material and ending on from acquisition of raw material and ending on from acquisition of raw material and ending on

realization. realization. realization. realization.

� Hence, an operating cycle would be =Hence, an operating cycle would be =Hence, an operating cycle would be =Hence, an operating cycle would be =

Average holding period of Raw MaterialAverage holding period of Raw MaterialAverage holding period of Raw MaterialAverage holding period of Raw Material

++++ Average Production Period Average Production Period Average Production Period Average Production Period

+ + + + Average Holding period of Finished GoodsAverage Holding period of Finished GoodsAverage Holding period of Finished GoodsAverage Holding period of Finished Goods

+ + + + Average Collection PeriodAverage Collection PeriodAverage Collection PeriodAverage Collection Period

Lunawat & Co.

BASICS BASICS BASICS BASICS ---- CURRENT LIABILITYCURRENT LIABILITYCURRENT LIABILITYCURRENT LIABILITY

� A liability would be a current liability if it satisfies any A liability would be a current liability if it satisfies any A liability would be a current liability if it satisfies any A liability would be a current liability if it satisfies any

of the following criteria; if it is :of the following criteria; if it is :of the following criteria; if it is :of the following criteria; if it is :

� Expected to be settled in the company’s normal Expected to be settled in the company’s normal Expected to be settled in the company’s normal Expected to be settled in the company’s normal

operating cycle; oroperating cycle; oroperating cycle; oroperating cycle; or

�Held primarily for the purpose of being traded; orHeld primarily for the purpose of being traded; orHeld primarily for the purpose of being traded; orHeld primarily for the purpose of being traded; or

�Due to be settled within 12 months after reporting Due to be settled within 12 months after reporting Due to be settled within 12 months after reporting Due to be settled within 12 months after reporting

date; ordate; ordate; ordate; or

� The company does not have an unconditional right The company does not have an unconditional right The company does not have an unconditional right The company does not have an unconditional right

to defer settlement of liability for at least 12 to defer settlement of liability for at least 12 to defer settlement of liability for at least 12 to defer settlement of liability for at least 12

months after reporting date. Terms of a liability months after reporting date. Terms of a liability months after reporting date. Terms of a liability months after reporting date. Terms of a liability

that could, at option of counterparty, result in its that could, at option of counterparty, result in its that could, at option of counterparty, result in its that could, at option of counterparty, result in its

settlement by issue of equity do not affect its settlement by issue of equity do not affect its settlement by issue of equity do not affect its settlement by issue of equity do not affect its

classification.classification.classification.classification.

Lunawat & Co.

ORGANIZING THE BALANCE SHEETORGANIZING THE BALANCE SHEETORGANIZING THE BALANCE SHEETORGANIZING THE BALANCE SHEET

� Preparing Balance Sheet and Profit and Loss Preparing Balance Sheet and Profit and Loss Preparing Balance Sheet and Profit and Loss Preparing Balance Sheet and Profit and Loss

Account in “Horizontal Format” has been done Account in “Horizontal Format” has been done Account in “Horizontal Format” has been done Account in “Horizontal Format” has been done

away.away.away.away.

� Now only the “Vertical Format” is allowed.Now only the “Vertical Format” is allowed.Now only the “Vertical Format” is allowed.Now only the “Vertical Format” is allowed.

� No need to prepare schedules to form part of the No need to prepare schedules to form part of the No need to prepare schedules to form part of the No need to prepare schedules to form part of the

financial statements. Only notes are to be given.financial statements. Only notes are to be given.financial statements. Only notes are to be given.financial statements. Only notes are to be given.

� In place of “Schedule Numbers”, we shall have to In place of “Schedule Numbers”, we shall have to In place of “Schedule Numbers”, we shall have to In place of “Schedule Numbers”, we shall have to

give “Note Numbers”.give “Note Numbers”.give “Note Numbers”.give “Note Numbers”.

� Old terms of “Sources of Funds” and “Application of Old terms of “Sources of Funds” and “Application of Old terms of “Sources of Funds” and “Application of Old terms of “Sources of Funds” and “Application of

Funds” are replaced by “Equity & Liabilities” and Funds” are replaced by “Equity & Liabilities” and Funds” are replaced by “Equity & Liabilities” and Funds” are replaced by “Equity & Liabilities” and

“Assets”, respectively“Assets”, respectively“Assets”, respectively“Assets”, respectively

Lunawat & Co.

BALANCE SHEET AS AT …Particulars Note

No.

Figures as at the

end of the current

reporting period

Figures as at the

end of the previous

reporting period

I. EQUITY AND LIABILITIES

(1) Shareholders’ Funds

(2) Share Application Money

Pending Allotment

(3) Non-Current Liabilities

(4) Current Liabilities

TOTAL

II. ASSETS

(1) Non-Current Assets

(2) Current Assets

TOTAL

Lunawat & Co.

FORM OF BALANCE SHEET (PART 1)Particulars Note

No.

Figures as at the

end of the CRP

Figures as at the

end of the PRP

I. EQUITY AND LIABILITIES

(1) Shareholders’ Funds

(a) Share capital

(b) Reserve and Surplus

(c) Money received against share warrants

1

2

(2) Share application money pending allotment

3

(3) Non-current Liabilities

(a) Long term borrowings

(b) Deferred tax liabilities (net)

(c) Other long term liabilities

(d) Long term provisions

4

5

6

7

(4) Current Liabilities

(a) Short term borrowings

(b) Trade payables

(c) Other current liabilities

(d) Short term provisions

8

9

10

TOTAL

SHARE CAPITAL: DETAILS REQUIRED� No. and amount of authorized shares.No. and amount of authorized shares.No. and amount of authorized shares.No. and amount of authorized shares.

� No. of shares issued. No. of shares issued. No. of shares issued. No. of shares issued.

� No. of shares subscribed and fully paid up & subscribed but No. of shares subscribed and fully paid up & subscribed but No. of shares subscribed and fully paid up & subscribed but No. of shares subscribed and fully paid up & subscribed but

not fully paid up.not fully paid up.not fully paid up.not fully paid up.

� Par value of sharesPar value of sharesPar value of sharesPar value of shares

� Reconciliation of no of shares outstanding at beginning and at Reconciliation of no of shares outstanding at beginning and at Reconciliation of no of shares outstanding at beginning and at Reconciliation of no of shares outstanding at beginning and at

end of reporting period.end of reporting period.end of reporting period.end of reporting period.

� Rights, preference & restrictions attaching to each class of Rights, preference & restrictions attaching to each class of Rights, preference & restrictions attaching to each class of Rights, preference & restrictions attaching to each class of

shares including restrictions on distribution of dividends & shares including restrictions on distribution of dividends & shares including restrictions on distribution of dividends & shares including restrictions on distribution of dividends &

repayment of capital.repayment of capital.repayment of capital.repayment of capital.

� Shares in respect of each class held by its holding co. or its Shares in respect of each class held by its holding co. or its Shares in respect of each class held by its holding co. or its Shares in respect of each class held by its holding co. or its

ultimate holding co. including shares held by or by ultimate holding co. including shares held by or by ultimate holding co. including shares held by or by ultimate holding co. including shares held by or by

subsidiaries or associates of holding co or ultimate holding co. subsidiaries or associates of holding co or ultimate holding co. subsidiaries or associates of holding co or ultimate holding co. subsidiaries or associates of holding co or ultimate holding co.

in aggregate.in aggregate.in aggregate.in aggregate.

Lunawat & Co.

SHARE CAPITAL: DETAILS REQUIRED� Shares held by each shareholder >5% shares with no of shares held.Shares held by each shareholder >5% shares with no of shares held.Shares held by each shareholder >5% shares with no of shares held.Shares held by each shareholder >5% shares with no of shares held.

� Shares reserved for issue under options and contracts / Shares reserved for issue under options and contracts / Shares reserved for issue under options and contracts / Shares reserved for issue under options and contracts /

commitments for the sale of shares / disinvestment, including the commitments for the sale of shares / disinvestment, including the commitments for the sale of shares / disinvestment, including the commitments for the sale of shares / disinvestment, including the

terms and amounts.terms and amounts.terms and amounts.terms and amounts.

� For 5 yrs immediately preceding date as at balance sheet is For 5 yrs immediately preceding date as at balance sheet is For 5 yrs immediately preceding date as at balance sheet is For 5 yrs immediately preceding date as at balance sheet is

prepared:prepared:prepared:prepared:

� Aggregate no & class of shares allotted as fully paid up pursuant to Aggregate no & class of shares allotted as fully paid up pursuant to Aggregate no & class of shares allotted as fully paid up pursuant to Aggregate no & class of shares allotted as fully paid up pursuant to

contract(s) without payment received in cashcontract(s) without payment received in cashcontract(s) without payment received in cashcontract(s) without payment received in cash

� Aggregate no & class of shares allotted as fully paid up by way of bonus Aggregate no & class of shares allotted as fully paid up by way of bonus Aggregate no & class of shares allotted as fully paid up by way of bonus Aggregate no & class of shares allotted as fully paid up by way of bonus

� Aggregate no of shares bought backAggregate no of shares bought backAggregate no of shares bought backAggregate no of shares bought back

� Terms of any securities convertible into equity / preference shares Terms of any securities convertible into equity / preference shares Terms of any securities convertible into equity / preference shares Terms of any securities convertible into equity / preference shares

issued along with earliest date of conversion in descending order issued along with earliest date of conversion in descending order issued along with earliest date of conversion in descending order issued along with earliest date of conversion in descending order

starting from farthest such date.starting from farthest such date.starting from farthest such date.starting from farthest such date.

� Calls unpaid. Aggregate value by directors and officers Calls unpaid. Aggregate value by directors and officers Calls unpaid. Aggregate value by directors and officers Calls unpaid. Aggregate value by directors and officers ---- separatelyseparatelyseparatelyseparately

� Forfeited shares (amount originally paid up)Forfeited shares (amount originally paid up)Forfeited shares (amount originally paid up)Forfeited shares (amount originally paid up)

Lunawat & Co.

SHARE CAPITAL: ???

� Preference shares to be classified as equity or liability?Preference shares to be classified as equity or liability?Preference shares to be classified as equity or liability?Preference shares to be classified as equity or liability?

� There is no change in current period, but in previous There is no change in current period, but in previous There is no change in current period, but in previous There is no change in current period, but in previous

period only. Is the reconciliation still to be given?period only. Is the reconciliation still to be given?period only. Is the reconciliation still to be given?period only. Is the reconciliation still to be given?

� Shareholding of > 5% shares is to be disclosed of Shareholding of > 5% shares is to be disclosed of Shareholding of > 5% shares is to be disclosed of Shareholding of > 5% shares is to be disclosed of

person who held these throughout the year or who person who held these throughout the year or who person who held these throughout the year or who person who held these throughout the year or who

held these on any particular date ?held these on any particular date ?held these on any particular date ?held these on any particular date ?

� Is source of bonus shares required to be disclosed?Is source of bonus shares required to be disclosed?Is source of bonus shares required to be disclosed?Is source of bonus shares required to be disclosed?

� Is debt payable by co adjusted against subscription, Is debt payable by co adjusted against subscription, Is debt payable by co adjusted against subscription, Is debt payable by co adjusted against subscription,

amount to shares allotted without cash?amount to shares allotted without cash?amount to shares allotted without cash?amount to shares allotted without cash?

� Is conversion of loans into shares in event of default in Is conversion of loans into shares in event of default in Is conversion of loans into shares in event of default in Is conversion of loans into shares in event of default in

repayment amount to shares allotted without cash?repayment amount to shares allotted without cash?repayment amount to shares allotted without cash?repayment amount to shares allotted without cash?

Lunawat & Co.

SHARE CAPITAL: RECONCILIATION

Particulars Current

Period

Previous

PeriodNo. of

Shares

Amount No. of

Shares

Amount

No. of shares at the beginning

(+) Shares issued on conversion

(+) Shares issued on exercise of

employee stock option

(+) Bonus shares issued

(-) Buy back of shares

xxx

xxx

xxx

xxx

xxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxx

xxx

xxx

xxx

xxx

xxxx

xxxx

xxxx

xxxx

xxxx

No. of shares at the end xxx xxxx xxx xxxx

Lunawat & Co.

SHARE CAPITAL: 5% SHAREHOLDING

Names of Shareholders Current

Period

Previous

Period

No. of

Shares

% No. of

Share

%

Mr. A

Ms. B

X Pvt. Ltd

Y Ltd.

Z LLP

Others (holding less than 5% each)

xxx

xxx

Nil

xxx

xxx

xxx

06%

45%

Nil

13%

16%

20%

xxx

xxx

xxx

Nil

Nil

xxx

10%

25%

14%

Nil

Nil

51%

No. of shares at the end xxx 100% xxx 100%

Lunawat & Co.

SHARE CAPITAL: HOLDING / SUBS

Shareholders

Holding / Subsidiary /

Associate wise

Equity Shares Preference

SharesCurrent

Period

Previous

Period

Current

Period

Previous

Period

Holding Company

Subsidiary of Holding

Company

Associate of Holding

Company

Ultimate Holding Company

Subsidiary of Ultimate

Holding Company

Associate of Ultimate

Holding Company

xxx

xxx

xxx

xxx

xxx

Xxx

xxx

xxx

xxx

xxx

xxx

Xxx

xxx

xxx

xxx

xxx

xxx

Xxx

xxx

xxx

xxx

xxx

xxx

Xxx

Lunawat & Co.

RESERVES AND SURPLUS RESERVES AND SURPLUS RESERVES AND SURPLUS RESERVES AND SURPLUS ---- CLASSIFICATIONCLASSIFICATIONCLASSIFICATIONCLASSIFICATION

� Capital ReserveCapital ReserveCapital ReserveCapital Reserve

� Capital Redemption ReserveCapital Redemption ReserveCapital Redemption ReserveCapital Redemption Reserve

� Securities Premium ReserveSecurities Premium ReserveSecurities Premium ReserveSecurities Premium Reserve

� Debenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption ReserveDebenture Redemption Reserve

� Revaluation ReserveRevaluation ReserveRevaluation ReserveRevaluation Reserve

� Share Options Outstanding A/cShare Options Outstanding A/cShare Options Outstanding A/cShare Options Outstanding A/c

� Other Reserves Other Reserves Other Reserves Other Reserves (nature and purpose to be specified)(nature and purpose to be specified)(nature and purpose to be specified)(nature and purpose to be specified)

� Surplus i.e. balance in Statement of Profit and Surplus i.e. balance in Statement of Profit and Surplus i.e. balance in Statement of Profit and Surplus i.e. balance in Statement of Profit and

Loss disclosing allocations and appropriations Loss disclosing allocations and appropriations Loss disclosing allocations and appropriations Loss disclosing allocations and appropriations

for dividends, bonus, transfer to reserves, etc.for dividends, bonus, transfer to reserves, etc.for dividends, bonus, transfer to reserves, etc.for dividends, bonus, transfer to reserves, etc.

Lunawat & Co.

RESERVES AND SURPLUS RESERVES AND SURPLUS RESERVES AND SURPLUS RESERVES AND SURPLUS ---- ????????????

� How to disclose a reserve which represents any How to disclose a reserve which represents any How to disclose a reserve which represents any How to disclose a reserve which represents any

earmarked investments?earmarked investments?earmarked investments?earmarked investments?

� If after the debit balance in Statement of Profit If after the debit balance in Statement of Profit If after the debit balance in Statement of Profit If after the debit balance in Statement of Profit

and Loss, the net result of Reserve and Surplus and Loss, the net result of Reserve and Surplus and Loss, the net result of Reserve and Surplus and Loss, the net result of Reserve and Surplus

is negative, how to disclose the same?is negative, how to disclose the same?is negative, how to disclose the same?is negative, how to disclose the same?

� Schedule III uses Schedule III uses Schedule III uses Schedule III uses ----‘Securities Premium Reserve’ ‘Securities Premium Reserve’ ‘Securities Premium Reserve’ ‘Securities Premium Reserve’

However Companies Act However Companies Act However Companies Act However Companies Act ----‘Securities Premium ‘Securities Premium ‘Securities Premium ‘Securities Premium

A/c’. Which nomenclature to be used?A/c’. Which nomenclature to be used?A/c’. Which nomenclature to be used?A/c’. Which nomenclature to be used?

� How are reserves created under other statutes How are reserves created under other statutes How are reserves created under other statutes How are reserves created under other statutes

like Tonnage Tax Reserve, etc. to be disclosed?like Tonnage Tax Reserve, etc. to be disclosed?like Tonnage Tax Reserve, etc. to be disclosed?like Tonnage Tax Reserve, etc. to be disclosed?

Lunawat & Co.

RESERVES AND SURPLUS - FORMATParticulars Current Period Previous Period

Amount Amount Amount Amount

Securities Premium Account

As per last Balance Sheet

Add: on issue of shares

Less: on buy back of Equity Shares

General Reserve

As per last Balance Sheet

Add: Transfer from Surplus

Surplus

As per last Balance Sheet

Add: Net Profit after tax transferred from

Statement of Profit and Loss

Amount available for appropriation

Less: Appropriations

Proposed Dividend

Transfer to General Reserve

Tax on DividendTotal xxxxx xxxxx

Lunawat & Co.

SHARE APPLICATION MONEYSHARE APPLICATION MONEYSHARE APPLICATION MONEYSHARE APPLICATION MONEY

� Amount not exceeding the issued capital Amount not exceeding the issued capital Amount not exceeding the issued capital Amount not exceeding the issued capital

and to the extent not refundableand to the extent not refundableand to the extent not refundableand to the extent not refundable.S.

No.

Situation Disclosure

1 Share Application Money to be refunded Other Current liabilities

2 Share Application Money not exceeding issued

capital and not refundable

On the face of the B/S

between Shareholder’s

Funds and Non-Current

Liabilities

3 Share Application Money exceeding

authorized capital and approval of increase in

authorized capital is pending

Other Current liabilities

4 Share Application Money exceeding issued

capital

Other Current liabilities

5 Share Application Money in a public issue

where minimum subscription requirement is

not met

Other Current liabilities

Lunawat & Co.

SHARE APPLICATION MONEY SHARE APPLICATION MONEY SHARE APPLICATION MONEY SHARE APPLICATION MONEY ---- DISCLOSUREDISCLOSUREDISCLOSUREDISCLOSURE

� Terms & conditions & No. of shares proposed to Terms & conditions & No. of shares proposed to Terms & conditions & No. of shares proposed to Terms & conditions & No. of shares proposed to

be issued.be issued.be issued.be issued.

� Amount of premium, if any.Amount of premium, if any.Amount of premium, if any.Amount of premium, if any.

� Period before which the allotment shall be made.Period before which the allotment shall be made.Period before which the allotment shall be made.Period before which the allotment shall be made.

� Whether company has sufficient authorized Whether company has sufficient authorized Whether company has sufficient authorized Whether company has sufficient authorized

share capital to allot shares.share capital to allot shares.share capital to allot shares.share capital to allot shares.

� Period for which the share application money has Period for which the share application money has Period for which the share application money has Period for which the share application money has

been pending beyond the period for allotment as been pending beyond the period for allotment as been pending beyond the period for allotment as been pending beyond the period for allotment as

mentioned in the share application document.mentioned in the share application document.mentioned in the share application document.mentioned in the share application document.

� Reason for which such share application money Reason for which such share application money Reason for which such share application money Reason for which such share application money

is pending for allotment, if so pending.is pending for allotment, if so pending.is pending for allotment, if so pending.is pending for allotment, if so pending.

Lunawat & Co.

LIABILITIESLIABILITIESLIABILITIESLIABILITIES

(3) Non(3) Non(3) Non(3) Non----current liabilitiescurrent liabilitiescurrent liabilitiescurrent liabilities

� (a) Long term borrowings(a) Long term borrowings(a) Long term borrowings(a) Long term borrowings

� (b) Deferred tax liabilities (net)(b) Deferred tax liabilities (net)(b) Deferred tax liabilities (net)(b) Deferred tax liabilities (net)

� (c) Other long term liabilities(c) Other long term liabilities(c) Other long term liabilities(c) Other long term liabilities

� (d) Long term provisions(d) Long term provisions(d) Long term provisions(d) Long term provisions

(4) Current liabilities(4) Current liabilities(4) Current liabilities(4) Current liabilities

� (a) Short term borrowings(a) Short term borrowings(a) Short term borrowings(a) Short term borrowings

� (b) Trade payables(b) Trade payables(b) Trade payables(b) Trade payables

� (c) Other current liabilities(c) Other current liabilities(c) Other current liabilities(c) Other current liabilities

� (d) Short term provisions(d) Short term provisions(d) Short term provisions(d) Short term provisions

Lunawat & Co.

CURRENT AND NONCURRENT AND NONCURRENT AND NONCURRENT AND NON----CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIES

� Criteria to be met to classify as current liability:Criteria to be met to classify as current liability:Criteria to be met to classify as current liability:Criteria to be met to classify as current liability:� Expected to be settled in the Expected to be settled in the Expected to be settled in the Expected to be settled in the co’sco’sco’sco’s normal operating normal operating normal operating normal operating cycle,cycle,cycle,cycle,

�Due to be settled within twelve months after the Due to be settled within twelve months after the Due to be settled within twelve months after the Due to be settled within twelve months after the reporting date,reporting date,reporting date,reporting date,

�Held primarily for the purpose of being traded orHeld primarily for the purpose of being traded orHeld primarily for the purpose of being traded orHeld primarily for the purpose of being traded or

� There is no unconditional right to defer settlement There is no unconditional right to defer settlement There is no unconditional right to defer settlement There is no unconditional right to defer settlement for at least 12 months after the reporting date.for at least 12 months after the reporting date.for at least 12 months after the reporting date.for at least 12 months after the reporting date.

� All other liabilities are classified as nonAll other liabilities are classified as nonAll other liabilities are classified as nonAll other liabilities are classified as non----current current current current liabilities.liabilities.liabilities.liabilities.

� Trade payables: amount due on account of Trade payables: amount due on account of Trade payables: amount due on account of Trade payables: amount due on account of goods purchased or services received in the goods purchased or services received in the goods purchased or services received in the goods purchased or services received in the normal course of business.normal course of business.normal course of business.normal course of business.

Lunawat & Co.

CURRENT AND NONCURRENT AND NONCURRENT AND NONCURRENT AND NON----CURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIESCURRENT LIABILITIES

• The nature of each and every liability will The nature of each and every liability will The nature of each and every liability will The nature of each and every liability will

have to be analyzed before deciding it’s have to be analyzed before deciding it’s have to be analyzed before deciding it’s have to be analyzed before deciding it’s

classification.classification.classification.classification.

• The liabilities are to be classified as:The liabilities are to be classified as:The liabilities are to be classified as:The liabilities are to be classified as:

• Current liabilities.Current liabilities.Current liabilities.Current liabilities.

• Non current Non current Non current Non current liabilitiesliabilitiesliabilitiesliabilities. . . .

• For instance current maturities of a long term For instance current maturities of a long term For instance current maturities of a long term For instance current maturities of a long term

borrowing will have to be classified under borrowing will have to be classified under borrowing will have to be classified under borrowing will have to be classified under

Other Current LiabilitiesOther Current LiabilitiesOther Current LiabilitiesOther Current Liabilities

Lunawat & Co.

LONG TERM BORROWINGSLONG TERM BORROWINGSLONG TERM BORROWINGSLONG TERM BORROWINGS---- CLASSIFICATIONCLASSIFICATIONCLASSIFICATIONCLASSIFICATION

�Bonds/debenturesBonds/debenturesBonds/debenturesBonds/debentures

�Term loansTerm loansTerm loansTerm loans� From banksFrom banksFrom banksFrom banks

� From other partiesFrom other partiesFrom other partiesFrom other parties

�Deferred Payment liabilitiesDeferred Payment liabilitiesDeferred Payment liabilitiesDeferred Payment liabilities

�DepositsDepositsDepositsDeposits

�Loans and advances from related Loans and advances from related Loans and advances from related Loans and advances from related partiespartiespartiesparties

�Long term maturities of finance lease Long term maturities of finance lease Long term maturities of finance lease Long term maturities of finance lease obligationsobligationsobligationsobligations

�Other loans and advancesOther loans and advancesOther loans and advancesOther loans and advances

Lunawat & Co.

LONG TERM BORROWINGS LONG TERM BORROWINGS LONG TERM BORROWINGS LONG TERM BORROWINGS ---- DISCLOSURESDISCLOSURESDISCLOSURESDISCLOSURES

� Secured, unsecured Secured, unsecured Secured, unsecured Secured, unsecured –––– nature of security to be nature of security to be nature of security to be nature of security to be stated and guaranteed by directors to be stated and guaranteed by directors to be stated and guaranteed by directors to be stated and guaranteed by directors to be shown separately.shown separately.shown separately.shown separately.

� Term of repayment of term loans to be givenTerm of repayment of term loans to be givenTerm of repayment of term loans to be givenTerm of repayment of term loans to be given

�Period of maturity with respect to B/S datePeriod of maturity with respect to B/S datePeriod of maturity with respect to B/S datePeriod of maturity with respect to B/S date

�Number of installments dueNumber of installments dueNumber of installments dueNumber of installments due

�Amount of installments dueAmount of installments dueAmount of installments dueAmount of installments due

�Applicable rate of interestApplicable rate of interestApplicable rate of interestApplicable rate of interest

�Other significant relevant terms, if anyOther significant relevant terms, if anyOther significant relevant terms, if anyOther significant relevant terms, if any

� Period & amount of default in payment of Period & amount of default in payment of Period & amount of default in payment of Period & amount of default in payment of principal and interest as on the B/S date.principal and interest as on the B/S date.principal and interest as on the B/S date.principal and interest as on the B/S date.

Lunawat & Co.

LONG TERM BORROWINGS LONG TERM BORROWINGS LONG TERM BORROWINGS LONG TERM BORROWINGS ---- ????????????

� If a person other than the company itself has given a If a person other than the company itself has given a If a person other than the company itself has given a If a person other than the company itself has given a security, would such loan be classified as secured ?security, would such loan be classified as secured ?security, would such loan be classified as secured ?security, would such loan be classified as secured ?

� Loans and advances from related parties are to be Loans and advances from related parties are to be Loans and advances from related parties are to be Loans and advances from related parties are to be disclosed. Who are related parties?disclosed. Who are related parties?disclosed. Who are related parties?disclosed. Who are related parties?

� A liability is to be settled by issue of equity A liability is to be settled by issue of equity A liability is to be settled by issue of equity A liability is to be settled by issue of equity instruments, at the option of counterparty, does this instruments, at the option of counterparty, does this instruments, at the option of counterparty, does this instruments, at the option of counterparty, does this impact its classification?impact its classification?impact its classification?impact its classification?

� If there is default during the year and at the end of If there is default during the year and at the end of If there is default during the year and at the end of If there is default during the year and at the end of the year it is made good. Does there is still a the year it is made good. Does there is still a the year it is made good. Does there is still a the year it is made good. Does there is still a requirement of disclosure?requirement of disclosure?requirement of disclosure?requirement of disclosure?

� Is default like nonIs default like nonIs default like nonIs default like non----compliance of debt covenants compliance of debt covenants compliance of debt covenants compliance of debt covenants need to be disclosed?need to be disclosed?need to be disclosed?need to be disclosed?

� Can a borrowing be bifurcated into longCan a borrowing be bifurcated into longCan a borrowing be bifurcated into longCan a borrowing be bifurcated into long----term as well term as well term as well term as well as other current liability?as other current liability?as other current liability?as other current liability?

Lunawat & Co.

LONG TERM BORROWINGS - FORMAT

Particulars Current Period Previous Period

Non-

Current

Current Non-

Current

Current

Secured

Non-Convertible Debentures

Term-Loans from Banks

Long-term maturities of finance lease

obligations

Total

Unsecured

Bonds

Deposits

Deferred Payment Liabilities

Loans and Advances from Related

Parties

xxxx

xxxx

xxx

xxx

xxxx

xxx

xxxxx

xxx

xxx

xxx

xx

xxxx

xxx

xxx

xxxx

xxxx

xxx

xxx

xxxx

xxx

xxxxx

xxx

xxx

xx

xxx

xxx

xxxx

Total xxxxx xxxxx xxxxx xxxxx

Lunawat & Co.

LONG TERM BORROWINGS - FORMAT1. Non-convertible Debentures referred to above to the extent of:

1. Rs. xxx are secured by way of mortgage / charge on the immovable properties situated at Bahadurgarh Plant of the Company

2. Rs. xxx are secured by way of mortgage / charge on the immovable properties situated at Gurgaon Plant of the Company

2. Term Loans from Banks referred to above to the extent of:1. Rs. xxx are secured by way of mortgage / charge on the plant and

machinery at Manesar Plant of the Company. It would mature on 31.12.2015 having 33 remaining installments amounting to Rs. xxxx each and bearing interest @ x% (Pr. Yr. x%)

2. Rs. xxx are secured by way of mortgage / charge on the Vehicles of the Company. It would mature on 31.12.2014 having 21 remaining installments amounting to Rs. xxxx each and bearing interest @ x% (Pr Yr x%)

3. Finance lease obligations are secured against leased assets4. Loans and advances from related parties are due to be matured in

2018-19 and is carrying x% interest rate (Pr. Yr. x%)

Lunawat & Co.

LONG TERM BORROWINGS - FORMAT

Rate of

Interest

Maturity Profile

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

X% xx xx xx xx - -

X% - - - xx xx -

X% - - - - - xx

5. Maturity profile and rate of interest of non5. Maturity profile and rate of interest of non5. Maturity profile and rate of interest of non5. Maturity profile and rate of interest of non----convertible debentures are as under:convertible debentures are as under:convertible debentures are as under:convertible debentures are as under:

6. Maturity profile and rate of interest of bonds are as under:6. Maturity profile and rate of interest of bonds are as under:6. Maturity profile and rate of interest of bonds are as under:6. Maturity profile and rate of interest of bonds are as under:Rate of

Interest

Maturity Profile

2015-16 2018-19 2022-23 2031-32 2052-53 2053-54

X% xx xx xx xx - -

X% - - - xx xx -

X% - - - - xx xx

7. Maturity profile and rate of interest of deposits are as under:7. Maturity profile and rate of interest of deposits are as under:7. Maturity profile and rate of interest of deposits are as under:7. Maturity profile and rate of interest of deposits are as under:

Rate of

Interest

Maturity Profile

2012-13 2013-14 2014-15 2015-16 2016-17

X% xx xx xx - -

X% xx xx xx xx xx

X% xx xx xx xx -

Lunawat & Co.

DEFERRED TAX LIABILITYDEFERRED TAX LIABILITYDEFERRED TAX LIABILITYDEFERRED TAX LIABILITY

� To be disclosed as nonTo be disclosed as nonTo be disclosed as nonTo be disclosed as non---- current liability in current liability in current liability in current liability in

Schedule IIISchedule IIISchedule IIISchedule III

� Para 30 of ASPara 30 of ASPara 30 of ASPara 30 of AS---- 22222222---- presentationpresentationpresentationpresentation---- after the after the after the after the

head ‘unsecured loan’ ?head ‘unsecured loan’ ?head ‘unsecured loan’ ?head ‘unsecured loan’ ?

� It is being amended by revision to AS 22It is being amended by revision to AS 22It is being amended by revision to AS 22It is being amended by revision to AS 22

� Para 31 of ASPara 31 of ASPara 31 of ASPara 31 of AS---- 22 22 22 22 –––– breakup of major breakup of major breakup of major breakup of major

components of the respective balances to be components of the respective balances to be components of the respective balances to be components of the respective balances to be

disclosed.disclosed.disclosed.disclosed.

Lunawat & Co.

OTHER LONGOTHER LONGOTHER LONGOTHER LONG----TERM LIABILITIESTERM LIABILITIESTERM LIABILITIESTERM LIABILITIES

� Other LongOther LongOther LongOther Long----term liabilities to be classified as:term liabilities to be classified as:term liabilities to be classified as:term liabilities to be classified as:

� Trade PayablesTrade PayablesTrade PayablesTrade Payables

�Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

� Trade Payable is not same as sundry creditors Trade Payable is not same as sundry creditors Trade Payable is not same as sundry creditors Trade Payable is not same as sundry creditors

under old Schedule VI.under old Schedule VI.under old Schedule VI.under old Schedule VI.

� Trade Payable is an amount due on account of Trade Payable is an amount due on account of Trade Payable is an amount due on account of Trade Payable is an amount due on account of

goods purchased or services received in goods purchased or services received in goods purchased or services received in goods purchased or services received in

normal course of business. normal course of business. normal course of business. normal course of business.

� MSMED disclosure is required.MSMED disclosure is required.MSMED disclosure is required.MSMED disclosure is required.

Lunawat & Co.

LONGLONGLONGLONG----TERM PROVISIONSTERM PROVISIONSTERM PROVISIONSTERM PROVISIONS

� LongLongLongLong----term provisions to be classified as:term provisions to be classified as:term provisions to be classified as:term provisions to be classified as:

� Provision for Employee benefitsProvision for Employee benefitsProvision for Employee benefitsProvision for Employee benefits

�Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

� AS 15, Employee Benefits governs AS 15, Employee Benefits governs AS 15, Employee Benefits governs AS 15, Employee Benefits governs

measurement of various employee benefit measurement of various employee benefit measurement of various employee benefit measurement of various employee benefit

obligations, but their classification as current obligations, but their classification as current obligations, but their classification as current obligations, but their classification as current

and nonand nonand nonand non----current will be governed by criteria current will be governed by criteria current will be governed by criteria current will be governed by criteria

laid down in Schedule III.laid down in Schedule III.laid down in Schedule III.laid down in Schedule III.

� Others Others Others Others –––– Example Example Example Example ---- warrantieswarrantieswarrantieswarranties

Lunawat & Co.

SHORT TERM BORROWINGSSHORT TERM BORROWINGSSHORT TERM BORROWINGSSHORT TERM BORROWINGS� ClassificationClassificationClassificationClassification

� Loans repayable on demandLoans repayable on demandLoans repayable on demandLoans repayable on demand

�From banksFrom banksFrom banksFrom banks

�From other partiesFrom other partiesFrom other partiesFrom other parties

� Loans and advances from related partiesLoans and advances from related partiesLoans and advances from related partiesLoans and advances from related parties

�DepositsDepositsDepositsDeposits

�Other loans and advancesOther loans and advancesOther loans and advancesOther loans and advances

� DisclosureDisclosureDisclosureDisclosure

� Secured, unsecured and guaranteed by directors to Secured, unsecured and guaranteed by directors to Secured, unsecured and guaranteed by directors to Secured, unsecured and guaranteed by directors to be shown separately.be shown separately.be shown separately.be shown separately.

� Period and amount of default in payment of Period and amount of default in payment of Period and amount of default in payment of Period and amount of default in payment of principal and interest as on the balance sheet principal and interest as on the balance sheet principal and interest as on the balance sheet principal and interest as on the balance sheet date.date.date.date.

Lunawat & Co.

OTHER CURRENT LIABILITIESOTHER CURRENT LIABILITIESOTHER CURRENT LIABILITIESOTHER CURRENT LIABILITIES

� The amount shall be classified as:The amount shall be classified as:The amount shall be classified as:The amount shall be classified as:� Current maturities of long term debtsCurrent maturities of long term debtsCurrent maturities of long term debtsCurrent maturities of long term debts

� Current maturities of finance lease obligationsCurrent maturities of finance lease obligationsCurrent maturities of finance lease obligationsCurrent maturities of finance lease obligations

� Interest accrued but not due on borrowingsInterest accrued but not due on borrowingsInterest accrued but not due on borrowingsInterest accrued but not due on borrowings

� Interest accrued and due on borrowingsInterest accrued and due on borrowingsInterest accrued and due on borrowingsInterest accrued and due on borrowings

� Income received in advanceIncome received in advanceIncome received in advanceIncome received in advance

� Unpaid dividendsUnpaid dividendsUnpaid dividendsUnpaid dividends

� Share Application money due for refund and interest Share Application money due for refund and interest Share Application money due for refund and interest Share Application money due for refund and interest accrued thereon (including advances for allotment of accrued thereon (including advances for allotment of accrued thereon (including advances for allotment of accrued thereon (including advances for allotment of share Capital)share Capital)share Capital)share Capital)

� Unpaid matured deposit and interest thereonUnpaid matured deposit and interest thereonUnpaid matured deposit and interest thereonUnpaid matured deposit and interest thereon

� Unpaid matured debentures and interest thereonUnpaid matured debentures and interest thereonUnpaid matured debentures and interest thereonUnpaid matured debentures and interest thereon

� Other payablesOther payablesOther payablesOther payables

Lunawat & Co.

OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES

� Others payable may include:Others payable may include:Others payable may include:Others payable may include:

� Statutory obligations like, ESI, PF, VAT, CST, etc.Statutory obligations like, ESI, PF, VAT, CST, etc.Statutory obligations like, ESI, PF, VAT, CST, etc.Statutory obligations like, ESI, PF, VAT, CST, etc.

� Liability for purchase of fixed assetsLiability for purchase of fixed assetsLiability for purchase of fixed assetsLiability for purchase of fixed assets

� Contractually reimbursable expensesContractually reimbursable expensesContractually reimbursable expensesContractually reimbursable expenses

� Interest accrued on trade payablesInterest accrued on trade payablesInterest accrued on trade payablesInterest accrued on trade payables

� Expenses Payable.Expenses Payable.Expenses Payable.Expenses Payable.

� TDS PayableTDS PayableTDS PayableTDS Payable

� Trade / Security DepositTrade / Security DepositTrade / Security DepositTrade / Security Deposit

� MarkMarkMarkMark----totototo----market loss on forward and option market loss on forward and option market loss on forward and option market loss on forward and option contractscontractscontractscontracts

� Retention MoniesRetention MoniesRetention MoniesRetention Monies

� Accrued salaries and benefitsAccrued salaries and benefitsAccrued salaries and benefitsAccrued salaries and benefits

Lunawat & Co.

FORM OF BALANCE SHEET (PART 2)Particulars Note

No.Figures as at the end of the CRP

Figures as at the end of the PRP

II. ASSETS

(1)Non-current assets

(a) Fixed assets

(i) Tangible assets

(ii) Intangible assets

(iii) Capital work-in-progress

(iv) Intangible assets under development

(b) Non- current investments

(c) Deferred tax assets (Net)

(d) Long term loans and advances

(e) Other non-current assets

11

12

13

14

15

(2) Current assets

(a) Current investments

(b) Inventories

(c) Trade receivables

(d) Cash and cash equivalents

(e) Short term loans and advances

(f) Other current assets

16

17

18

19

20

TOTAL

CURRENT AND NONCURRENT AND NONCURRENT AND NONCURRENT AND NON----CURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETS

� Criteria to be met to classify as current asset:Criteria to be met to classify as current asset:Criteria to be met to classify as current asset:Criteria to be met to classify as current asset:

� Expected to be Expected to be Expected to be Expected to be realisedrealisedrealisedrealised in or intended for sale or in or intended for sale or in or intended for sale or in or intended for sale or consumption in normal operating cycle of the co.,consumption in normal operating cycle of the co.,consumption in normal operating cycle of the co.,consumption in normal operating cycle of the co.,

� Held primarily for the purpose of trading,Held primarily for the purpose of trading,Held primarily for the purpose of trading,Held primarily for the purpose of trading,

� Expected to be Expected to be Expected to be Expected to be realisedrealisedrealisedrealised within 12 months from the within 12 months from the within 12 months from the within 12 months from the closing date closing date closing date closing date orororor

� It is cash or cash equivalent.It is cash or cash equivalent.It is cash or cash equivalent.It is cash or cash equivalent.

� Operating cycle Operating cycle Operating cycle Operating cycle –––– time between the acquisition of time between the acquisition of time between the acquisition of time between the acquisition of assets for processing and their assets for processing and their assets for processing and their assets for processing and their realisationrealisationrealisationrealisation in cash in cash in cash in cash or cash equivalents. If can not be identifiedor cash equivalents. If can not be identifiedor cash equivalents. If can not be identifiedor cash equivalents. If can not be identified----duration of twelve months.duration of twelve months.duration of twelve months.duration of twelve months.

� All other assets shall be classified as nonAll other assets shall be classified as nonAll other assets shall be classified as nonAll other assets shall be classified as non----current.current.current.current.

Lunawat & Co.

FIXED ASSETS FIXED ASSETS FIXED ASSETS FIXED ASSETS ---- CLASSIFICATIONCLASSIFICATIONCLASSIFICATIONCLASSIFICATION

�Fixed Asset on the face of the Fixed Asset on the face of the Fixed Asset on the face of the Fixed Asset on the face of the

Balance Sheet has to be classified Balance Sheet has to be classified Balance Sheet has to be classified Balance Sheet has to be classified

as follows:as follows:as follows:as follows:

�Tangible AssetsTangible AssetsTangible AssetsTangible Assets

�Intangible AssetsIntangible AssetsIntangible AssetsIntangible Assets

�Capital workCapital workCapital workCapital work----inininin----progressprogressprogressprogress

�Intangible assets under developmentIntangible assets under developmentIntangible assets under developmentIntangible assets under development

Lunawat & Co.

FIXED ASSETSFIXED ASSETSFIXED ASSETSFIXED ASSETS----TANGIBLE ASSETSTANGIBLE ASSETSTANGIBLE ASSETSTANGIBLE ASSETS� Classification shall be given asClassification shall be given asClassification shall be given asClassification shall be given as::::

� Land Land Land Land

� BuildingBuildingBuildingBuilding

� Plant and equipmentPlant and equipmentPlant and equipmentPlant and equipment

� Furniture and fixturesFurniture and fixturesFurniture and fixturesFurniture and fixtures

� VehiclesVehiclesVehiclesVehicles

� Office equipmentsOffice equipmentsOffice equipmentsOffice equipments

� OthersOthersOthersOthers

� Assets under lease Assets under lease Assets under lease Assets under lease –––– to be specified under each head.to be specified under each head.to be specified under each head.to be specified under each head.

� Reconciliation of gross & net carrying amount of each Reconciliation of gross & net carrying amount of each Reconciliation of gross & net carrying amount of each Reconciliation of gross & net carrying amount of each

class of assets class of assets class of assets class of assets ---- beginning to close of a/beginning to close of a/beginning to close of a/beginning to close of a/cingcingcingcing periodperiodperiodperiod

� WrittenWrittenWrittenWritten----off or add on account of revaluation of assets off or add on account of revaluation of assets off or add on account of revaluation of assets off or add on account of revaluation of assets

shall show reduced figure and shall give by way of note shall show reduced figure and shall give by way of note shall show reduced figure and shall give by way of note shall show reduced figure and shall give by way of note

( for 5 yrs) the details of such revaluation.( for 5 yrs) the details of such revaluation.( for 5 yrs) the details of such revaluation.( for 5 yrs) the details of such revaluation.

Lunawat & Co.

FIXED ASSETSFIXED ASSETSFIXED ASSETSFIXED ASSETS----INTANGIBLE ASSETSINTANGIBLE ASSETSINTANGIBLE ASSETSINTANGIBLE ASSETS

� Classification shall be given as:Classification shall be given as:Classification shall be given as:Classification shall be given as:

� GoodwillGoodwillGoodwillGoodwill

� Brands/trade marksBrands/trade marksBrands/trade marksBrands/trade marks

� Computer softwareComputer softwareComputer softwareComputer software

� Mastheads and publishing titlesMastheads and publishing titlesMastheads and publishing titlesMastheads and publishing titles

� Mining rightsMining rightsMining rightsMining rights

� Copyrights, patents and other IPRsCopyrights, patents and other IPRsCopyrights, patents and other IPRsCopyrights, patents and other IPRs

� Recipes, formulae, models, designs and prototypesRecipes, formulae, models, designs and prototypesRecipes, formulae, models, designs and prototypesRecipes, formulae, models, designs and prototypes

� Licenses and franchises.Licenses and franchises.Licenses and franchises.Licenses and franchises.

� OthersOthersOthersOthers

� A reconciliation of gross and net carrying amount of each A reconciliation of gross and net carrying amount of each A reconciliation of gross and net carrying amount of each A reconciliation of gross and net carrying amount of each

class of assets from beginning to close of accounting period.class of assets from beginning to close of accounting period.class of assets from beginning to close of accounting period.class of assets from beginning to close of accounting period.

� Written off or add on account of revaluation of assets shall Written off or add on account of revaluation of assets shall Written off or add on account of revaluation of assets shall Written off or add on account of revaluation of assets shall

show reduced figure and shall give by way of note ( for 5 yrs) show reduced figure and shall give by way of note ( for 5 yrs) show reduced figure and shall give by way of note ( for 5 yrs) show reduced figure and shall give by way of note ( for 5 yrs)

the details of such revaluation.the details of such revaluation.the details of such revaluation.the details of such revaluation.

Lunawat & Co.

FIXED ASSETSFIXED ASSETSFIXED ASSETSFIXED ASSETS

� Assets under lease would mean:Assets under lease would mean:Assets under lease would mean:Assets under lease would mean:

� For For For For LessorLessorLessorLessor ---- Asset given on Operating LeaseAsset given on Operating LeaseAsset given on Operating LeaseAsset given on Operating Lease

� For Lessee For Lessee For Lessee For Lessee ---- Asset taken on Financial LeaseAsset taken on Financial LeaseAsset taken on Financial LeaseAsset taken on Financial Lease

� AAAA reconciliation should be made for fixed assets:reconciliation should be made for fixed assets:reconciliation should be made for fixed assets:reconciliation should be made for fixed assets:

� The gross and net carrying amounts of each class of assets The gross and net carrying amounts of each class of assets The gross and net carrying amounts of each class of assets The gross and net carrying amounts of each class of assets

at the beginning and end of the reporting period showing:at the beginning and end of the reporting period showing:at the beginning and end of the reporting period showing:at the beginning and end of the reporting period showing:

�AdditionsAdditionsAdditionsAdditions

�DisposalsDisposalsDisposalsDisposals

�Acquisitions through business combinationsAcquisitions through business combinationsAcquisitions through business combinationsAcquisitions through business combinations

�Other adjustmentsOther adjustmentsOther adjustmentsOther adjustments

� Related depreciationRelated depreciationRelated depreciationRelated depreciation

� Impairment losses / reversalsImpairment losses / reversalsImpairment losses / reversalsImpairment losses / reversals

Lunawat & Co.

FIXED ASSETSFIXED ASSETSFIXED ASSETSFIXED ASSETS

� Reconciliation of capital workReconciliation of capital workReconciliation of capital workReconciliation of capital work----inininin----progress and progress and progress and progress and

intangible assets under development is not requiredintangible assets under development is not requiredintangible assets under development is not requiredintangible assets under development is not required

� AS 10 requires to disclose gross book value of AS 10 requires to disclose gross book value of AS 10 requires to disclose gross book value of AS 10 requires to disclose gross book value of

revalued assets, method to be adopted to compute revalued assets, method to be adopted to compute revalued assets, method to be adopted to compute revalued assets, method to be adopted to compute

revalued amounts, nature of indices used, yr of revalued amounts, nature of indices used, yr of revalued amounts, nature of indices used, yr of revalued amounts, nature of indices used, yr of

appraisal & involvement of external appraisal & involvement of external appraisal & involvement of external appraisal & involvement of external valuervaluervaluervaluer as long as as long as as long as as long as

concerned assets are held by it. concerned assets are held by it. concerned assets are held by it. concerned assets are held by it.

� Live stock, railway sidings, etc. Live stock, railway sidings, etc. Live stock, railway sidings, etc. Live stock, railway sidings, etc. ---- separate asset class.separate asset class.separate asset class.separate asset class.

� Assets held for sale Assets held for sale Assets held for sale Assets held for sale ––––not fixed asset but current assetnot fixed asset but current assetnot fixed asset but current assetnot fixed asset but current asset

� Leasehold land Leasehold land Leasehold land Leasehold land –––– separate class under tangible assetseparate class under tangible assetseparate class under tangible assetseparate class under tangible asset

� Capital advances not to be grouped as Capital WorkCapital advances not to be grouped as Capital WorkCapital advances not to be grouped as Capital WorkCapital advances not to be grouped as Capital Work----

inininin----Progress but long term loans and advances?Progress but long term loans and advances?Progress but long term loans and advances?Progress but long term loans and advances?

Lunawat & Co.

NONNONNONNON---- CURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTS

�To be classified as trade investments and To be classified as trade investments and To be classified as trade investments and To be classified as trade investments and other investments and further classified other investments and further classified other investments and further classified other investments and further classified as investment in:as investment in:as investment in:as investment in:� PropertyPropertyPropertyProperty

� Equity instrumentsEquity instrumentsEquity instrumentsEquity instruments

� Preference sharesPreference sharesPreference sharesPreference shares

�Government and trust securitiesGovernment and trust securitiesGovernment and trust securitiesGovernment and trust securities

�Debentures and bondsDebentures and bondsDebentures and bondsDebentures and bonds

�Mutual fundsMutual fundsMutual fundsMutual funds

� Partnership firmsPartnership firmsPartnership firmsPartnership firms

�OthersOthersOthersOthers

Lunawat & Co.

NONNONNONNON---- CURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTS� Names of the bodies corporate in whom investments have Names of the bodies corporate in whom investments have Names of the bodies corporate in whom investments have Names of the bodies corporate in whom investments have

been made : been made : been made : been made : Subsidiaries / Associates / Joint ventures / Controlled Subsidiaries / Associates / Joint ventures / Controlled Subsidiaries / Associates / Joint ventures / Controlled Subsidiaries / Associates / Joint ventures / Controlled

special purpose entitiesspecial purpose entitiesspecial purpose entitiesspecial purpose entities

� Nature and extent of investment so made in each such Nature and extent of investment so made in each such Nature and extent of investment so made in each such Nature and extent of investment so made in each such

body corporate (showing separately body corporate (showing separately body corporate (showing separately body corporate (showing separately ----partly paidpartly paidpartly paidpartly paid----up)up)up)up)

� With regard to investment in partnership firm:With regard to investment in partnership firm:With regard to investment in partnership firm:With regard to investment in partnership firm:

� Name of the firm; Names of all their partnersName of the firm; Names of all their partnersName of the firm; Names of all their partnersName of the firm; Names of all their partners

� Total capital ; Shares of each partnerTotal capital ; Shares of each partnerTotal capital ; Shares of each partnerTotal capital ; Shares of each partner

� Investments carried at other than cost should be Investments carried at other than cost should be Investments carried at other than cost should be Investments carried at other than cost should be

separately stated specifying the basis of valuation thereof.separately stated specifying the basis of valuation thereof.separately stated specifying the basis of valuation thereof.separately stated specifying the basis of valuation thereof.

� Aggregate amount of quoted investments & market value Aggregate amount of quoted investments & market value Aggregate amount of quoted investments & market value Aggregate amount of quoted investments & market value

thereofthereofthereofthereof

� Aggregate amount of unquoted investmentsAggregate amount of unquoted investmentsAggregate amount of unquoted investmentsAggregate amount of unquoted investments

� Aggregate provision for diminution in value of investmentsAggregate provision for diminution in value of investmentsAggregate provision for diminution in value of investmentsAggregate provision for diminution in value of investments

Lunawat & Co.

LONG TERM LOANS AND ADVANCESLONG TERM LOANS AND ADVANCESLONG TERM LOANS AND ADVANCESLONG TERM LOANS AND ADVANCES

� To be classified as:To be classified as:To be classified as:To be classified as:� Capital advancesCapital advancesCapital advancesCapital advances� Security depositsSecurity depositsSecurity depositsSecurity deposits� Loans and advances to related partiesLoans and advances to related partiesLoans and advances to related partiesLoans and advances to related parties� Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

� SubSubSubSub----classification into:classification into:classification into:classification into:� Secured, considered goodSecured, considered goodSecured, considered goodSecured, considered good� Unsecured, considered goodUnsecured, considered goodUnsecured, considered goodUnsecured, considered good� DoubtfulDoubtfulDoubtfulDoubtful

� Allowance for bad and doubtful loans and Allowance for bad and doubtful loans and Allowance for bad and doubtful loans and Allowance for bad and doubtful loans and advances under relevant headsadvances under relevant headsadvances under relevant headsadvances under relevant heads

� Due by directors and other officers, firms and Due by directors and other officers, firms and Due by directors and other officers, firms and Due by directors and other officers, firms and companies in which directors are interested to companies in which directors are interested to companies in which directors are interested to companies in which directors are interested to be separately stated.be separately stated.be separately stated.be separately stated.

Lunawat & Co.

LONG TERM LOANS AND ADVANCES LONG TERM LOANS AND ADVANCES LONG TERM LOANS AND ADVANCES LONG TERM LOANS AND ADVANCES ---- ????????

� Capital Advance given by the company against Capital Advance given by the company against Capital Advance given by the company against Capital Advance given by the company against which machinery is expected to be delivered which machinery is expected to be delivered which machinery is expected to be delivered which machinery is expected to be delivered in three monthsin three monthsin three monthsin three months---- should this be grouped under should this be grouped under should this be grouped under should this be grouped under Current Assets?Current Assets?Current Assets?Current Assets?

� What details in respect of related parties need What details in respect of related parties need What details in respect of related parties need What details in respect of related parties need to be disclosed?to be disclosed?to be disclosed?to be disclosed?

� What constitute Other Loans & Advances?What constitute Other Loans & Advances?What constitute Other Loans & Advances?What constitute Other Loans & Advances?� Prepaid Expenses, Advance Tax, CENVAT credit, Prepaid Expenses, Advance Tax, CENVAT credit, Prepaid Expenses, Advance Tax, CENVAT credit, Prepaid Expenses, Advance Tax, CENVAT credit, VAT credit, VAT credit, VAT credit, VAT credit, etcetcetcetc if expected not to be if expected not to be if expected not to be if expected not to be realisedrealisedrealisedrealised within within within within 12 months of the reporting date or operating 12 months of the reporting date or operating 12 months of the reporting date or operating 12 months of the reporting date or operating cycle, whichever is longercycle, whichever is longercycle, whichever is longercycle, whichever is longer

Lunawat & Co.

OTHER NONOTHER NONOTHER NONOTHER NON----CURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETS

� Other nonOther nonOther nonOther non----current assets to be classified as:current assets to be classified as:current assets to be classified as:current assets to be classified as:

� LongLongLongLong----term Trade Receivables (including on term Trade Receivables (including on term Trade Receivables (including on term Trade Receivables (including on

deferred credit terms)deferred credit terms)deferred credit terms)deferred credit terms)

�Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

� SubSubSubSub----classification into:classification into:classification into:classification into:� Secured, considered goodSecured, considered goodSecured, considered goodSecured, considered good

� Unsecured, considered goodUnsecured, considered goodUnsecured, considered goodUnsecured, considered good

�DoubtfulDoubtfulDoubtfulDoubtful

� Allowance for bad and doubtful debtsAllowance for bad and doubtful debtsAllowance for bad and doubtful debtsAllowance for bad and doubtful debts

� Due by directors and other officers, firms and Due by directors and other officers, firms and Due by directors and other officers, firms and Due by directors and other officers, firms and companies in which directors are interested to companies in which directors are interested to companies in which directors are interested to companies in which directors are interested to be separately stated.be separately stated.be separately stated.be separately stated.

Lunawat & Co.

CURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTS

�To be classified as investment in:To be classified as investment in:To be classified as investment in:To be classified as investment in:� Equity instrumentsEquity instrumentsEquity instrumentsEquity instruments

� Preference sharesPreference sharesPreference sharesPreference shares

�GovtGovtGovtGovt and trust securitiesand trust securitiesand trust securitiesand trust securities

�Debentures and bondsDebentures and bondsDebentures and bondsDebentures and bonds

�Mutual fundsMutual fundsMutual fundsMutual funds

� Partnership firmsPartnership firmsPartnership firmsPartnership firms

�OthersOthersOthersOthers

� Basis of valuation shall be given for each Basis of valuation shall be given for each Basis of valuation shall be given for each Basis of valuation shall be given for each individual investment.individual investment.individual investment.individual investment.

� No need to classify current investments into No need to classify current investments into No need to classify current investments into No need to classify current investments into trade and others.trade and others.trade and others.trade and others.

Lunawat & Co.

CURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTSCURRENT INVESTMENTS

� Names of the bodies corporate in whom investments have Names of the bodies corporate in whom investments have Names of the bodies corporate in whom investments have Names of the bodies corporate in whom investments have

been made : been made : been made : been made : Subsidiaries / Associates / Joint ventures / Controlled Subsidiaries / Associates / Joint ventures / Controlled Subsidiaries / Associates / Joint ventures / Controlled Subsidiaries / Associates / Joint ventures / Controlled

special purpose entitiesspecial purpose entitiesspecial purpose entitiesspecial purpose entities

� Nature and extent of investment so made in each such body Nature and extent of investment so made in each such body Nature and extent of investment so made in each such body Nature and extent of investment so made in each such body

corporate (showing separately corporate (showing separately corporate (showing separately corporate (showing separately ----partly paidpartly paidpartly paidpartly paid----up)up)up)up)

� With regard to investment in partnership firm:With regard to investment in partnership firm:With regard to investment in partnership firm:With regard to investment in partnership firm:

� Name of the firm; Names of all their partnersName of the firm; Names of all their partnersName of the firm; Names of all their partnersName of the firm; Names of all their partners

� Total capital ; Shares of each partnerTotal capital ; Shares of each partnerTotal capital ; Shares of each partnerTotal capital ; Shares of each partner

� Aggregate amount of quoted investments & market value Aggregate amount of quoted investments & market value Aggregate amount of quoted investments & market value Aggregate amount of quoted investments & market value

� Aggregate amount of unquoted investmentsAggregate amount of unquoted investmentsAggregate amount of unquoted investmentsAggregate amount of unquoted investments

� Aggregate provision for diminution in value of investmentsAggregate provision for diminution in value of investmentsAggregate provision for diminution in value of investmentsAggregate provision for diminution in value of investments

� Provision for Diminution, means the amount written down based on Provision for Diminution, means the amount written down based on Provision for Diminution, means the amount written down based on Provision for Diminution, means the amount written down based on

measurement principles of Current Investments as per AS 13 on a measurement principles of Current Investments as per AS 13 on a measurement principles of Current Investments as per AS 13 on a measurement principles of Current Investments as per AS 13 on a

cumulative basis. It is not actually a provision.cumulative basis. It is not actually a provision.cumulative basis. It is not actually a provision.cumulative basis. It is not actually a provision.

Lunawat & Co.

INVENTORIESINVENTORIESINVENTORIESINVENTORIES

�Classification into:Classification into:Classification into:Classification into:� Raw MaterialsRaw MaterialsRaw MaterialsRaw Materials

� WorkWorkWorkWork----inininin----progressprogressprogressprogress

� Finished goodsFinished goodsFinished goodsFinished goods

� StockStockStockStock----inininin----trade (trading goods)trade (trading goods)trade (trading goods)trade (trading goods)

� Stores and sparesStores and sparesStores and sparesStores and spares

� Loose toolsLoose toolsLoose toolsLoose tools

� Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

� Finished goods should include all goods except Finished goods should include all goods except Finished goods should include all goods except Finished goods should include all goods except

acquired for trading purposesacquired for trading purposesacquired for trading purposesacquired for trading purposes

� GoodsGoodsGoodsGoods----inininin----transit transit transit transit ----disclose under relevant subdisclose under relevant subdisclose under relevant subdisclose under relevant sub----headheadheadhead

� Mode of valuation to be statedMode of valuation to be statedMode of valuation to be statedMode of valuation to be stated

Lunawat & Co.

CURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETS---- TRADE RECEIVABLESTRADE RECEIVABLESTRADE RECEIVABLESTRADE RECEIVABLES

� Words ‘Sundry Debtors’ have been replaced Words ‘Sundry Debtors’ have been replaced Words ‘Sundry Debtors’ have been replaced Words ‘Sundry Debtors’ have been replaced

with ‘Trade Receivables’.with ‘Trade Receivables’.with ‘Trade Receivables’.with ‘Trade Receivables’.

� Separate disclosure on outstanding for a Separate disclosure on outstanding for a Separate disclosure on outstanding for a Separate disclosure on outstanding for a

period exceeding six months ‘period exceeding six months ‘period exceeding six months ‘period exceeding six months ‘from the date from the date from the date from the date

they became due for paymentthey became due for paymentthey became due for paymentthey became due for payment’. ’. ’. ’. –––– old old old old –––– from from from from

date of billingdate of billingdate of billingdate of billing

� SubSubSubSub----classification into:classification into:classification into:classification into:� Secured, considered goodSecured, considered goodSecured, considered goodSecured, considered good

� Unsecured, considered goodUnsecured, considered goodUnsecured, considered goodUnsecured, considered good

�DoubtfulDoubtfulDoubtfulDoubtful

Lunawat & Co.

CURRENT ASSETSCURRENT ASSETSCURRENT ASSETSCURRENT ASSETS---- TRADE RECEIVABLESTRADE RECEIVABLESTRADE RECEIVABLESTRADE RECEIVABLES

� Allowance for bad and doubtful debtsAllowance for bad and doubtful debtsAllowance for bad and doubtful debtsAllowance for bad and doubtful debts

� Due by directors and other officers, firms and Due by directors and other officers, firms and Due by directors and other officers, firms and Due by directors and other officers, firms and companies in which directors are interested to companies in which directors are interested to companies in which directors are interested to companies in which directors are interested to be separately statedbe separately statedbe separately statedbe separately stated

� Where no due date is specifically agreed upon, Where no due date is specifically agreed upon, Where no due date is specifically agreed upon, Where no due date is specifically agreed upon,

normal credit period allowed should be normal credit period allowed should be normal credit period allowed should be normal credit period allowed should be

consideredconsideredconsideredconsidered

� Trade receivable would be current if it is likely Trade receivable would be current if it is likely Trade receivable would be current if it is likely Trade receivable would be current if it is likely

to be realized within 12 months from date of to be realized within 12 months from date of to be realized within 12 months from date of to be realized within 12 months from date of

B/S or within operating cycle of the business.B/S or within operating cycle of the business.B/S or within operating cycle of the business.B/S or within operating cycle of the business.

Lunawat & Co.

CASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTS

�To be classified as:To be classified as:To be classified as:To be classified as:� Balances with banksBalances with banksBalances with banksBalances with banks

� ChequesChequesChequesCheques, drafts in hand, drafts in hand, drafts in hand, drafts in hand

� Cash on handCash on handCash on handCash on hand

�Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

�Earmarked balances with banks to be Earmarked balances with banks to be Earmarked balances with banks to be Earmarked balances with banks to be stated separately (e.g. unpaid dividend)stated separately (e.g. unpaid dividend)stated separately (e.g. unpaid dividend)stated separately (e.g. unpaid dividend)

�Balances with banks kept as margin Balances with banks kept as margin Balances with banks kept as margin Balances with banks kept as margin money or security against the borrowings money or security against the borrowings money or security against the borrowings money or security against the borrowings to be disclosed separately.to be disclosed separately.to be disclosed separately.to be disclosed separately.

�Bank deposits with more than 12 months Bank deposits with more than 12 months Bank deposits with more than 12 months Bank deposits with more than 12 months maturity shall be disclosed separately.maturity shall be disclosed separately.maturity shall be disclosed separately.maturity shall be disclosed separately.

Lunawat & Co.

CASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTSCASH AND CASH EQUIVALENTS� Repatriation restrictions, if any, in respect of cash and bank Repatriation restrictions, if any, in respect of cash and bank Repatriation restrictions, if any, in respect of cash and bank Repatriation restrictions, if any, in respect of cash and bank

balances shall be stated separately.balances shall be stated separately.balances shall be stated separately.balances shall be stated separately.

� AS3 visAS3 visAS3 visAS3 vis----àààà----vis Schedule IIIvis Schedule IIIvis Schedule IIIvis Schedule III

� Cash and Bank BalancesCash and Bank BalancesCash and Bank BalancesCash and Bank Balances� CashCashCashCash and Cash Equivalents and Cash Equivalents and Cash Equivalents and Cash Equivalents

�Balances with banksBalances with banksBalances with banksBalances with banks

�ChequesChequesChequesCheques, drafts in hand, drafts in hand, drafts in hand, drafts in hand

�Bank deposit with less than 3 months original maturityBank deposit with less than 3 months original maturityBank deposit with less than 3 months original maturityBank deposit with less than 3 months original maturity

�Cash on handCash on handCash on handCash on hand

� Other Bank Balances Other Bank Balances Other Bank Balances Other Bank Balances

�Balances with Banks to the extent held as margin Balances with Banks to the extent held as margin Balances with Banks to the extent held as margin Balances with Banks to the extent held as margin money money money money

�Unclaimed dividend a/cUnclaimed dividend a/cUnclaimed dividend a/cUnclaimed dividend a/c

�Earmarked a/c for unclaimed right issue Earmarked a/c for unclaimed right issue Earmarked a/c for unclaimed right issue Earmarked a/c for unclaimed right issue –––– application application application application refundrefundrefundrefund

�Bank deposit with less than 12 months maturityBank deposit with less than 12 months maturityBank deposit with less than 12 months maturityBank deposit with less than 12 months maturity

Lunawat & Co.

SHORT TERM LOANS AND ADVANCESSHORT TERM LOANS AND ADVANCESSHORT TERM LOANS AND ADVANCESSHORT TERM LOANS AND ADVANCES

� To be classified as:To be classified as:To be classified as:To be classified as:� Loans and advances to related partiesLoans and advances to related partiesLoans and advances to related partiesLoans and advances to related parties

�Others (specifying nature)Others (specifying nature)Others (specifying nature)Others (specifying nature)

� SubSubSubSub----classification into:classification into:classification into:classification into:� Secured, considered goodSecured, considered goodSecured, considered goodSecured, considered good

� Unsecured, considered goodUnsecured, considered goodUnsecured, considered goodUnsecured, considered good

�DoubtfulDoubtfulDoubtfulDoubtful

� Allowance for bad and doubtful loans and Allowance for bad and doubtful loans and Allowance for bad and doubtful loans and Allowance for bad and doubtful loans and advances under relevant headsadvances under relevant headsadvances under relevant headsadvances under relevant heads

� Due by directors and other officers, firms Due by directors and other officers, firms Due by directors and other officers, firms Due by directors and other officers, firms and companies in which directors are and companies in which directors are and companies in which directors are and companies in which directors are interested to be separately stated.interested to be separately stated.interested to be separately stated.interested to be separately stated.

Lunawat & Co.

CONTINGENT LIABILITIES & COMMITMENTSCONTINGENT LIABILITIES & COMMITMENTSCONTINGENT LIABILITIES & COMMITMENTSCONTINGENT LIABILITIES & COMMITMENTS� Contingent Liabilities to be classified as (to the Contingent Liabilities to be classified as (to the Contingent Liabilities to be classified as (to the Contingent Liabilities to be classified as (to the

extent not provided for):extent not provided for):extent not provided for):extent not provided for):� Claims against company not acknowledged as debtClaims against company not acknowledged as debtClaims against company not acknowledged as debtClaims against company not acknowledged as debt

� GuaranteesGuaranteesGuaranteesGuarantees

� Other money for which the company is contingently Other money for which the company is contingently Other money for which the company is contingently Other money for which the company is contingently liableliableliableliable

� Commitments to be classified as (to the extent Commitments to be classified as (to the extent Commitments to be classified as (to the extent Commitments to be classified as (to the extent not provided for):not provided for):not provided for):not provided for):� Estimated amount of contracts remaining to be Estimated amount of contracts remaining to be Estimated amount of contracts remaining to be Estimated amount of contracts remaining to be executed on capital account and not provided forexecuted on capital account and not provided forexecuted on capital account and not provided forexecuted on capital account and not provided for

� Uncalled liability on shares and other investments Uncalled liability on shares and other investments Uncalled liability on shares and other investments Uncalled liability on shares and other investments partly paidpartly paidpartly paidpartly paid

� Other commitments (specify nature)Other commitments (specify nature)Other commitments (specify nature)Other commitments (specify nature)

Lunawat & Co.

OTHER DISCLOSURES IN NOTESOTHER DISCLOSURES IN NOTESOTHER DISCLOSURES IN NOTESOTHER DISCLOSURES IN NOTES–––– B/SB/SB/SB/S� Amount of dividend to be distributed to equity & preference Amount of dividend to be distributed to equity & preference Amount of dividend to be distributed to equity & preference Amount of dividend to be distributed to equity & preference

shareholders & related amount per share. ASshareholders & related amount per share. ASshareholders & related amount per share. ASshareholders & related amount per share. AS----4 revision is 4 revision is 4 revision is 4 revision is accordingly being made:accordingly being made:accordingly being made:accordingly being made:

� If dividends are declared after the balance sheet date but If dividends are declared after the balance sheet date but If dividends are declared after the balance sheet date but If dividends are declared after the balance sheet date but before the financial statements are approved for issue, the before the financial statements are approved for issue, the before the financial statements are approved for issue, the before the financial statements are approved for issue, the dividends are not dividends are not dividends are not dividends are not recognisedrecognisedrecognisedrecognised as a liability at the balance as a liability at the balance as a liability at the balance as a liability at the balance sheet date because no obligation exists at that time. Such sheet date because no obligation exists at that time. Such sheet date because no obligation exists at that time. Such sheet date because no obligation exists at that time. Such dividends are disclosed in the notes.dividends are disclosed in the notes.dividends are disclosed in the notes.dividends are disclosed in the notes.

� Arrears of fixed cumulative dividends on preference shares.Arrears of fixed cumulative dividends on preference shares.Arrears of fixed cumulative dividends on preference shares.Arrears of fixed cumulative dividends on preference shares.

� Where securities (equity / preference) issued for specific Where securities (equity / preference) issued for specific Where securities (equity / preference) issued for specific Where securities (equity / preference) issued for specific purpose, but whole / part not used for that specific purpose purpose, but whole / part not used for that specific purpose purpose, but whole / part not used for that specific purpose purpose, but whole / part not used for that specific purpose –––– how the unutilized amount is used / invested.how the unutilized amount is used / invested.how the unutilized amount is used / invested.how the unutilized amount is used / invested.

� If any asset other than fixed assets and nonIf any asset other than fixed assets and nonIf any asset other than fixed assets and nonIf any asset other than fixed assets and non----current current current current investments are not stated at realizable value in ordinary investments are not stated at realizable value in ordinary investments are not stated at realizable value in ordinary investments are not stated at realizable value in ordinary course of business in the opinion of the Board.course of business in the opinion of the Board.course of business in the opinion of the Board.course of business in the opinion of the Board.

Lunawat & Co.

PROFIT & LOSS PROFIT & LOSS PROFIT & LOSS PROFIT & LOSS ---- BASICSBASICSBASICSBASICS

� Specific Format Specific Format Specific Format Specific Format ---- only vertical format to be allowed.only vertical format to be allowed.only vertical format to be allowed.only vertical format to be allowed.

� P L now to be called “ Statement of Profit & Loss”P L now to be called “ Statement of Profit & Loss”P L now to be called “ Statement of Profit & Loss”P L now to be called “ Statement of Profit & Loss”

� No Appropriation accounts in Statement of Profit & Loss. No Appropriation accounts in Statement of Profit & Loss. No Appropriation accounts in Statement of Profit & Loss. No Appropriation accounts in Statement of Profit & Loss.

Appropriation to be disclosed in R& S Appropriation to be disclosed in R& S Appropriation to be disclosed in R& S Appropriation to be disclosed in R& S –––– SurplusSurplusSurplusSurplus

� Item of Income/expense Item of Income/expense Item of Income/expense Item of Income/expense >>>>1% of revenue from operation or 1% of revenue from operation or 1% of revenue from operation or 1% of revenue from operation or

Rs. 1,00,000Rs. 1,00,000Rs. 1,00,000Rs. 1,00,000////---- (earlier Rs 5000/(earlier Rs 5000/(earlier Rs 5000/(earlier Rs 5000/----) ) ) ) whichever is higher, will whichever is higher, will whichever is higher, will whichever is higher, will

be disclosed as separate items under respective heads.be disclosed as separate items under respective heads.be disclosed as separate items under respective heads.be disclosed as separate items under respective heads.

� Major exclusionsMajor exclusionsMajor exclusionsMajor exclusions

� Managerial Remuneration & Computation thereof.Managerial Remuneration & Computation thereof.Managerial Remuneration & Computation thereof.Managerial Remuneration & Computation thereof.

� Details of licensed capacity, installed capacity.Details of licensed capacity, installed capacity.Details of licensed capacity, installed capacity.Details of licensed capacity, installed capacity.

� Quantitative information about actual production , Quantitative information about actual production , Quantitative information about actual production , Quantitative information about actual production ,

purchase, sales, consumption etc.purchase, sales, consumption etc.purchase, sales, consumption etc.purchase, sales, consumption etc.

Lunawat & Co.

FORM OF STATEMENT OF PROFIT AND LOSSParticulars Note

No.Figures for

the CRPFigure for the PRP

I. Revenue from operations 21

II. Other income 22

III Total Revenue (I + II)

Iv. Expenses 23

V. Profit before exceptional and extraordinary items and tax (III -IV)

VI. Exceptional items 24

VII. Profit before extraordinary items and tax (V-VI)

VIII. Extraordinary items 25

IX. Profit before tax (VII-VIII)

X. Tax Expenses 26

XI. Profit (loss) for the period from continuing operations (IX-X)

XII Profit (Loss) from the discontinuing business 27

XIII Tax expenses of discontinuing operations 28

XIV. Profit (Loss) from discontinuing operations (after tax) (XII-XIV)

XV. Profit (Loss) for the period (XI+XIV) 29

XVI. Earnings per equity share

Lunawat & Co.

REVENUE FROM OPERATIONSREVENUE FROM OPERATIONSREVENUE FROM OPERATIONSREVENUE FROM OPERATIONS

� Distinction of finance company and other companiesDistinction of finance company and other companiesDistinction of finance company and other companiesDistinction of finance company and other companies

� For companies other than finance company:For companies other than finance company:For companies other than finance company:For companies other than finance company:

� Sale of ProductsSale of ProductsSale of ProductsSale of Products

� Sale of ServicesSale of ServicesSale of ServicesSale of Services

� Other Operating RevenuesOther Operating RevenuesOther Operating RevenuesOther Operating Revenues

�Less: Excise DutyLess: Excise DutyLess: Excise DutyLess: Excise Duty

� For Finance company:For Finance company:For Finance company:For Finance company:

� InterestInterestInterestInterest

� Other Financial servicesOther Financial servicesOther Financial servicesOther Financial services

� As per AS 9 presentation for excise duty As per AS 9 presentation for excise duty As per AS 9 presentation for excise duty As per AS 9 presentation for excise duty ---- on face of PLon face of PLon face of PLon face of PL

� Revenues to be grossed up of indirect taxes if on Revenues to be grossed up of indirect taxes if on Revenues to be grossed up of indirect taxes if on Revenues to be grossed up of indirect taxes if on

principal basis. If on agency basis principal basis. If on agency basis principal basis. If on agency basis principal basis. If on agency basis –––– net off.net off.net off.net off.

Lunawat & Co.

REVENUE REVENUE REVENUE REVENUE ---- FINANCE COMPANYFINANCE COMPANYFINANCE COMPANYFINANCE COMPANY

� As per RBI As per RBI As per RBI As per RBI –––– 45 I (c) & (f)45 I (c) & (f)45 I (c) & (f)45 I (c) & (f)

� Asset finance companyAsset finance companyAsset finance companyAsset finance company

� Investment companiesInvestment companiesInvestment companiesInvestment companies

� Leasing & hire purchase companiesLeasing & hire purchase companiesLeasing & hire purchase companiesLeasing & hire purchase companies

� Loan companiesLoan companiesLoan companiesLoan companies

� Infra finance companiesInfra finance companiesInfra finance companiesInfra finance companies

� Core investment companiesCore investment companiesCore investment companiesCore investment companies

�MicroMicroMicroMicro----finance companiesfinance companiesfinance companiesfinance companies

�Housing finance companiesHousing finance companiesHousing finance companiesHousing finance companies

�OthersOthersOthersOthers

Lunawat & Co.

OTHER INCOMEOTHER INCOMEOTHER INCOMEOTHER INCOME

� To be classified as:To be classified as:To be classified as:To be classified as:

� Interest income (other than for finance company)Interest income (other than for finance company)Interest income (other than for finance company)Interest income (other than for finance company)

� DividendDividendDividendDividend

� Dividend from subsidiary companyDividend from subsidiary companyDividend from subsidiary companyDividend from subsidiary company

� Net gain / loss on sale of investmentsNet gain / loss on sale of investmentsNet gain / loss on sale of investmentsNet gain / loss on sale of investments

� Other nonOther nonOther nonOther non----operating income operating income operating income operating income

� Interest, dividend, etc. to be disclosed separately for Interest, dividend, etc. to be disclosed separately for Interest, dividend, etc. to be disclosed separately for Interest, dividend, etc. to be disclosed separately for

Current as well as Non Current InvestmentsCurrent as well as Non Current InvestmentsCurrent as well as Non Current InvestmentsCurrent as well as Non Current Investments

� Dividend to be accounted for only when right to receive Dividend to be accounted for only when right to receive Dividend to be accounted for only when right to receive Dividend to be accounted for only when right to receive

as on B/S date as on B/S date as on B/S date as on B/S date –––– change in Accounting policychange in Accounting policychange in Accounting policychange in Accounting policy

� Other Income be shown net off expenses. However Other Income be shown net off expenses. However Other Income be shown net off expenses. However Other Income be shown net off expenses. However

expenses so netted off are to be shown separately.expenses so netted off are to be shown separately.expenses so netted off are to be shown separately.expenses so netted off are to be shown separately.

Lunawat & Co.

OTHER OPERATING REVENUES V/S OTHER INCOME

Lunawat & Co.

Other Operating RevenueOther Operating RevenueOther Operating RevenueOther Operating Revenue OtherOtherOtherOther IncomeIncomeIncomeIncome

Revenue arising from

company’s operating activities

Revenue arising from other

than company’s operating

activities

In case co has a real estate

arm & continuously engaged

in leasing out - rent

In case a part of building

being temporarily let out - rent

Sale of manufacturing scrap Profit on sale of fixed assets

Net foreign exchange gain

Interest; dividend

Net gain on sale of investment

PROFIT FROM PARTNERSHIP FIRMPROFIT FROM PARTNERSHIP FIRMPROFIT FROM PARTNERSHIP FIRMPROFIT FROM PARTNERSHIP FIRM

� No specific requirement of disclosure in No specific requirement of disclosure in No specific requirement of disclosure in No specific requirement of disclosure in

Schedule IIISchedule IIISchedule IIISchedule III

� Share in profit accrues the moment it is Share in profit accrues the moment it is Share in profit accrues the moment it is Share in profit accrues the moment it is

credited in partner’s capital a/c.credited in partner’s capital a/c.credited in partner’s capital a/c.credited in partner’s capital a/c.

� To be disclosed under Other Income / ExpenseTo be disclosed under Other Income / ExpenseTo be disclosed under Other Income / ExpenseTo be disclosed under Other Income / Expense

� If partner for a period and not full year If partner for a period and not full year If partner for a period and not full year If partner for a period and not full year

disclosure to be made accordinglydisclosure to be made accordinglydisclosure to be made accordinglydisclosure to be made accordingly

� Company’s share to be accounted for Company’s share to be accounted for Company’s share to be accounted for Company’s share to be accounted for

according to company’s financial yearaccording to company’s financial yearaccording to company’s financial yearaccording to company’s financial year

� AOP and LLP on similar basisAOP and LLP on similar basisAOP and LLP on similar basisAOP and LLP on similar basis

Lunawat & Co.

EXPENSESEXPENSESEXPENSESEXPENSES

Disclosure on face of the PL:Disclosure on face of the PL:Disclosure on face of the PL:Disclosure on face of the PL:

� Cost of material consumedCost of material consumedCost of material consumedCost of material consumed

� Purchase of stockPurchase of stockPurchase of stockPurchase of stock----inininin----tradetradetradetrade

� Changes in inventories of finished goods Changes in inventories of finished goods Changes in inventories of finished goods Changes in inventories of finished goods

WorkWorkWorkWork----inininin----progress and stock in tradeprogress and stock in tradeprogress and stock in tradeprogress and stock in trade

� Employee benefit expensesEmployee benefit expensesEmployee benefit expensesEmployee benefit expenses

� Finance costFinance costFinance costFinance cost

� Depreciation and amortization expensesDepreciation and amortization expensesDepreciation and amortization expensesDepreciation and amortization expenses

� Other expenses.Other expenses.Other expenses.Other expenses.

Lunawat & Co.

COST OF MATERIAL CONSUMEDCOST OF MATERIAL CONSUMEDCOST OF MATERIAL CONSUMEDCOST OF MATERIAL CONSUMED

� Applicable only to manufacturing companiesApplicable only to manufacturing companiesApplicable only to manufacturing companiesApplicable only to manufacturing companies

� Where packing materials are not classified as raw Where packing materials are not classified as raw Where packing materials are not classified as raw Where packing materials are not classified as raw

materials, consumption thereof materials, consumption thereof materials, consumption thereof materials, consumption thereof ---- disclose separatelydisclose separatelydisclose separatelydisclose separately

� Stores, fuel, spare parts etc do not enter physically Stores, fuel, spare parts etc do not enter physically Stores, fuel, spare parts etc do not enter physically Stores, fuel, spare parts etc do not enter physically

into the product, to be disclosed separately.into the product, to be disclosed separately.into the product, to be disclosed separately.into the product, to be disclosed separately.

� Company should provide for actual consumption and Company should provide for actual consumption and Company should provide for actual consumption and Company should provide for actual consumption and

not the derived consumption. In case derived not the derived consumption. In case derived not the derived consumption. In case derived not the derived consumption. In case derived

consumption is taken consumption is taken consumption is taken consumption is taken ---- suitable footnotesuitable footnotesuitable footnotesuitable footnote

� Shortages / wastages if within norms of acceptable Shortages / wastages if within norms of acceptable Shortages / wastages if within norms of acceptable Shortages / wastages if within norms of acceptable

margin, should form part of consumption. Abnormal margin, should form part of consumption. Abnormal margin, should form part of consumption. Abnormal margin, should form part of consumption. Abnormal

variations to be disclosed separately.variations to be disclosed separately.variations to be disclosed separately.variations to be disclosed separately.

Lunawat & Co.

EMPLOYEE BENEFITS EXPENSESEMPLOYEE BENEFITS EXPENSESEMPLOYEE BENEFITS EXPENSESEMPLOYEE BENEFITS EXPENSES

� Master servant relationship is importantMaster servant relationship is importantMaster servant relationship is importantMaster servant relationship is important

� Salaries and wagesSalaries and wagesSalaries and wagesSalaries and wages

� BonusBonusBonusBonus

� Leave encashmentLeave encashmentLeave encashmentLeave encashment

� CompensationsCompensationsCompensationsCompensations

� Contribution to provident and other funds Contribution to provident and other funds Contribution to provident and other funds Contribution to provident and other funds

� Gratuity funds, Gratuity funds, Gratuity funds, Gratuity funds,

� Superannuation fundsSuperannuation fundsSuperannuation fundsSuperannuation funds

� Penalties and similar amounts not to be disclosed herePenalties and similar amounts not to be disclosed herePenalties and similar amounts not to be disclosed herePenalties and similar amounts not to be disclosed here

� ESOP & ESPPESOP & ESPPESOP & ESPPESOP & ESPP

� Staff welfare expensesStaff welfare expensesStaff welfare expensesStaff welfare expenses

Lunawat & Co.

FINANCE COSTFINANCE COSTFINANCE COSTFINANCE COST

� Interest expenseInterest expenseInterest expenseInterest expense� Interest on borrowings, debentures, bonds, etc.Interest on borrowings, debentures, bonds, etc.Interest on borrowings, debentures, bonds, etc.Interest on borrowings, debentures, bonds, etc.

� Finance charges on finance lease are in nature of interestFinance charges on finance lease are in nature of interestFinance charges on finance lease are in nature of interestFinance charges on finance lease are in nature of interest

� Interest on fixed period loans & other borrowings were required to be Interest on fixed period loans & other borrowings were required to be Interest on fixed period loans & other borrowings were required to be Interest on fixed period loans & other borrowings were required to be

bifurcatedbifurcatedbifurcatedbifurcated---- Now NOT required Now NOT required Now NOT required Now NOT required ----Old Schedule VIOld Schedule VIOld Schedule VIOld Schedule VI

� Other borrowing costsOther borrowing costsOther borrowing costsOther borrowing costs� Commitment chargesCommitment chargesCommitment chargesCommitment charges

� Loan processing chargesLoan processing chargesLoan processing chargesLoan processing charges

� Guarantee chargesGuarantee chargesGuarantee chargesGuarantee charges

� Loan facilitation chargesLoan facilitation chargesLoan facilitation chargesLoan facilitation charges

� Discounts/ premium on borrowingsDiscounts/ premium on borrowingsDiscounts/ premium on borrowingsDiscounts/ premium on borrowings

� Other ancillary Other ancillary Other ancillary Other ancillary costscostscostscosts

� Applicable net loss on foreign currency transactions to Applicable net loss on foreign currency transactions to Applicable net loss on foreign currency transactions to Applicable net loss on foreign currency transactions to

the extent they are regarded as adjust to interest cost the extent they are regarded as adjust to interest cost the extent they are regarded as adjust to interest cost the extent they are regarded as adjust to interest cost

Lunawat & Co.

OTHER EXPENSESOTHER EXPENSESOTHER EXPENSESOTHER EXPENSES

� All other expenses will be grouped here. Following to be All other expenses will be grouped here. Following to be All other expenses will be grouped here. Following to be All other expenses will be grouped here. Following to be

disclosed separately:disclosed separately:disclosed separately:disclosed separately:

� Consumption of stores and spares Consumption of stores and spares Consumption of stores and spares Consumption of stores and spares

� Power and fuelPower and fuelPower and fuelPower and fuel

� RentRentRentRent

� Repairs to buildingsRepairs to buildingsRepairs to buildingsRepairs to buildings

� Repairs to machineryRepairs to machineryRepairs to machineryRepairs to machinery

� InsuranceInsuranceInsuranceInsurance

� Rates and taxes, excluding taxes on incomeRates and taxes, excluding taxes on incomeRates and taxes, excluding taxes on incomeRates and taxes, excluding taxes on income

� Miscellaneous expensesMiscellaneous expensesMiscellaneous expensesMiscellaneous expenses

� Any item of expenditure which exceeds 1% of the revenue from Any item of expenditure which exceeds 1% of the revenue from Any item of expenditure which exceeds 1% of the revenue from Any item of expenditure which exceeds 1% of the revenue from

operations or Rs.1,00,000, whichever is higher operations or Rs.1,00,000, whichever is higher operations or Rs.1,00,000, whichever is higher operations or Rs.1,00,000, whichever is higher ---- separateseparateseparateseparate

� Items of similar nature can be classified under one head.Items of similar nature can be classified under one head.Items of similar nature can be classified under one head.Items of similar nature can be classified under one head.

Lunawat & Co.

OTHER DISCLOSUREOTHER DISCLOSUREOTHER DISCLOSUREOTHER DISCLOSURE

� Interest IncomeInterest IncomeInterest IncomeInterest Income

� Interest ExpenseInterest ExpenseInterest ExpenseInterest Expense

� Dividend IncomeDividend IncomeDividend IncomeDividend Income

� Net Gain / loss on sale of investmentNet Gain / loss on sale of investmentNet Gain / loss on sale of investmentNet Gain / loss on sale of investment

� Adjustment to carrying cost of investmentsAdjustment to carrying cost of investmentsAdjustment to carrying cost of investmentsAdjustment to carrying cost of investments

� Net gain/loss on foreign currency transaction Net gain/loss on foreign currency transaction Net gain/loss on foreign currency transaction Net gain/loss on foreign currency transaction

and translation (other than considered under and translation (other than considered under and translation (other than considered under and translation (other than considered under

finance cost)finance cost)finance cost)finance cost)

Lunawat & Co.

EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS –––– AS AS AS AS ---- 5555

� Para 13: These items may not be extraordinary but the nature Para 13: These items may not be extraordinary but the nature Para 13: These items may not be extraordinary but the nature Para 13: These items may not be extraordinary but the nature and amount of these items may be relevant to the users in and amount of these items may be relevant to the users in and amount of these items may be relevant to the users in and amount of these items may be relevant to the users in understanding the financial statements & making projections.understanding the financial statements & making projections.understanding the financial statements & making projections.understanding the financial statements & making projections.

� Para 14: Circumstances which may give rise to separate Para 14: Circumstances which may give rise to separate Para 14: Circumstances which may give rise to separate Para 14: Circumstances which may give rise to separate disclosure:disclosure:disclosure:disclosure:

� Disposal of items of fixed assetsDisposal of items of fixed assetsDisposal of items of fixed assetsDisposal of items of fixed assets

� Disposal of long term investmentsDisposal of long term investmentsDisposal of long term investmentsDisposal of long term investments

� Para 12: When items within profit or loss from ordinary Para 12: When items within profit or loss from ordinary Para 12: When items within profit or loss from ordinary Para 12: When items within profit or loss from ordinary activities are of such size, nature or incidence that requires a activities are of such size, nature or incidence that requires a activities are of such size, nature or incidence that requires a activities are of such size, nature or incidence that requires a separate disclosureseparate disclosureseparate disclosureseparate disclosure

� Legislative changes having retrospective applicationLegislative changes having retrospective applicationLegislative changes having retrospective applicationLegislative changes having retrospective application

� Litigation settlementsLitigation settlementsLitigation settlementsLitigation settlements

� WriteWriteWriteWrite----down inventories to NRV & reversal of such writedown inventories to NRV & reversal of such writedown inventories to NRV & reversal of such writedown inventories to NRV & reversal of such write----downdowndowndown

� Other reversals of provisionsOther reversals of provisionsOther reversals of provisionsOther reversals of provisions

Lunawat & Co.

EXTRAORDINARY ITEMSEXTRAORDINARY ITEMSEXTRAORDINARY ITEMSEXTRAORDINARY ITEMS

� ASASASAS----5 Net Profit or Loss for the Period, Prior Period Items and 5 Net Profit or Loss for the Period, Prior Period Items and 5 Net Profit or Loss for the Period, Prior Period Items and 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting PoliciesChanges in Accounting PoliciesChanges in Accounting PoliciesChanges in Accounting Policies

� Extraordinary itemsExtraordinary itemsExtraordinary itemsExtraordinary items---- income or expenses that arise income or expenses that arise income or expenses that arise income or expenses that arise from events or transactions that are clearly distinct from events or transactions that are clearly distinct from events or transactions that are clearly distinct from events or transactions that are clearly distinct from the ordinary activities of the enterprises and from the ordinary activities of the enterprises and from the ordinary activities of the enterprises and from the ordinary activities of the enterprises and are not expected to recur frequently or regularly.are not expected to recur frequently or regularly.are not expected to recur frequently or regularly.are not expected to recur frequently or regularly.

� The nature and amount of each extraordinary item The nature and amount of each extraordinary item The nature and amount of each extraordinary item The nature and amount of each extraordinary item is separately disclosed in the statement of Profit is separately disclosed in the statement of Profit is separately disclosed in the statement of Profit is separately disclosed in the statement of Profit and Loss in such manner that its impact on current and Loss in such manner that its impact on current and Loss in such manner that its impact on current and Loss in such manner that its impact on current profit or loss can be perceived.profit or loss can be perceived.profit or loss can be perceived.profit or loss can be perceived.

Lunawat & Co.

PRIOR PERIOD ITEMSPRIOR PERIOD ITEMSPRIOR PERIOD ITEMSPRIOR PERIOD ITEMS

� No specific requirement in Schedule IIINo specific requirement in Schedule IIINo specific requirement in Schedule IIINo specific requirement in Schedule III

� AS AS AS AS ----5 “5 “5 “5 “Net Profit or Loss for the Period, Prior Net Profit or Loss for the Period, Prior Net Profit or Loss for the Period, Prior Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Period Items and Changes in Accounting Period Items and Changes in Accounting Period Items and Changes in Accounting PoliciesPoliciesPoliciesPolicies::::

� “The nature and amount of prior period items “The nature and amount of prior period items “The nature and amount of prior period items “The nature and amount of prior period items should be separately disclosed in the statement of should be separately disclosed in the statement of should be separately disclosed in the statement of should be separately disclosed in the statement of profit and loss in a manner that their impact on the profit and loss in a manner that their impact on the profit and loss in a manner that their impact on the profit and loss in a manner that their impact on the current profit or loss can be perceived”current profit or loss can be perceived”current profit or loss can be perceived”current profit or loss can be perceived”

Lunawat & Co.

TAX EXPENSETAX EXPENSETAX EXPENSETAX EXPENSE� To be disclosed as:To be disclosed as:To be disclosed as:To be disclosed as:

� Current TaxCurrent TaxCurrent TaxCurrent Tax

� Deferred TaxDeferred TaxDeferred TaxDeferred Tax

� MAT is a current tax. In year of MAT credit becoming MAT is a current tax. In year of MAT credit becoming MAT is a current tax. In year of MAT credit becoming MAT is a current tax. In year of MAT credit becoming

eligible: said asset should be created by way of credit to eligible: said asset should be created by way of credit to eligible: said asset should be created by way of credit to eligible: said asset should be created by way of credit to

P&L A/c and presented as a separate line item. P&L A/c and presented as a separate line item. P&L A/c and presented as a separate line item. P&L A/c and presented as a separate line item.

� Interest on tax is in nature of finance cost & should be Interest on tax is in nature of finance cost & should be Interest on tax is in nature of finance cost & should be Interest on tax is in nature of finance cost & should be

disclosed in finance cost and not as current tax.disclosed in finance cost and not as current tax.disclosed in finance cost and not as current tax.disclosed in finance cost and not as current tax.

� Penalties under IT laws if compensatory in nature Penalties under IT laws if compensatory in nature Penalties under IT laws if compensatory in nature Penalties under IT laws if compensatory in nature ----

treated as interest. Other tax penalties treated as interest. Other tax penalties treated as interest. Other tax penalties treated as interest. Other tax penalties ---- other expensesother expensesother expensesother expenses

� Wealth Tax is not a tax on income and should be Wealth Tax is not a tax on income and should be Wealth Tax is not a tax on income and should be Wealth Tax is not a tax on income and should be

included in Rates & Taxes under other expensesincluded in Rates & Taxes under other expensesincluded in Rates & Taxes under other expensesincluded in Rates & Taxes under other expenses

Lunawat & Co.

DISCONTINUING OPERATIONSDISCONTINUING OPERATIONSDISCONTINUING OPERATIONSDISCONTINUING OPERATIONS

� ASASASAS----24 24 24 24 ---- Definition of discontinuing operationsDefinition of discontinuing operationsDefinition of discontinuing operationsDefinition of discontinuing operations

� Disclosure requirements of ASDisclosure requirements of ASDisclosure requirements of ASDisclosure requirements of AS---- 24242424

� Revenue and expenses in respect of the ordinary Revenue and expenses in respect of the ordinary Revenue and expenses in respect of the ordinary Revenue and expenses in respect of the ordinary

activities activities activities activities

� PrePrePrePre----tax profit or loss and the income tax expense tax profit or loss and the income tax expense tax profit or loss and the income tax expense tax profit or loss and the income tax expense

relating to ordinary activitiesrelating to ordinary activitiesrelating to ordinary activitiesrelating to ordinary activities

�attributable to the discontinuing operation during the attributable to the discontinuing operation during the attributable to the discontinuing operation during the attributable to the discontinuing operation during the

current financial reporting period.current financial reporting period.current financial reporting period.current financial reporting period.

Lunawat & Co.

EARNING PER EQUITY SHAREEARNING PER EQUITY SHAREEARNING PER EQUITY SHAREEARNING PER EQUITY SHARE

(1)(1)(1)(1) BasicBasicBasicBasic

(2)(2)(2)(2) DilutedDilutedDilutedDiluted

� As per Accounting StandardAs per Accounting StandardAs per Accounting StandardAs per Accounting Standard---- 20202020

� Par Value of shares also to be givenPar Value of shares also to be givenPar Value of shares also to be givenPar Value of shares also to be given

Lunawat & Co.

ADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTES

� In the case of a manufacturing company:In the case of a manufacturing company:In the case of a manufacturing company:In the case of a manufacturing company:

�Raw materials under broad headsRaw materials under broad headsRaw materials under broad headsRaw materials under broad heads

�Goods purchase under broad headsGoods purchase under broad headsGoods purchase under broad headsGoods purchase under broad heads

� In case of all companies:In case of all companies:In case of all companies:In case of all companies:

�WorkWorkWorkWork----in progress under broad headsin progress under broad headsin progress under broad headsin progress under broad heads

� In the case of a trading company:In the case of a trading company:In the case of a trading company:In the case of a trading company:

�Goods traded in under broad headsGoods traded in under broad headsGoods traded in under broad headsGoods traded in under broad heads

� In the case of service company:In the case of service company:In the case of service company:In the case of service company:

�Gross income from services rendered or Gross income from services rendered or Gross income from services rendered or Gross income from services rendered or

supplied under broad headssupplied under broad headssupplied under broad headssupplied under broad heads

Lunawat & Co.

ADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTES

� In the case of other companies:In the case of other companies:In the case of other companies:In the case of other companies:

�Gross income derived under broad headsGross income derived under broad headsGross income derived under broad headsGross income derived under broad heads

� No quantities No quantities No quantities No quantities –––– only values to be givenonly values to be givenonly values to be givenonly values to be given

� Broad heads would mean Broad heads would mean Broad heads would mean Broad heads would mean –––– 10% of value of 10% of value of 10% of value of 10% of value of

sale/service or any other threshold taking sale/service or any other threshold taking sale/service or any other threshold taking sale/service or any other threshold taking

into a/c concept of materiality and into a/c concept of materiality and into a/c concept of materiality and into a/c concept of materiality and

presentation of true and fair view of FSpresentation of true and fair view of FSpresentation of true and fair view of FSpresentation of true and fair view of FS

Lunawat & Co.

ADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTES

� Payment to auditors:Payment to auditors:Payment to auditors:Payment to auditors:

� For AuditFor AuditFor AuditFor Audit

� For tax mattersFor tax mattersFor tax mattersFor tax matters

� For company law mattersFor company law mattersFor company law mattersFor company law matters

� For management servicesFor management servicesFor management servicesFor management services

� For other servicesFor other servicesFor other servicesFor other services

� For reimbursement of expensesFor reimbursement of expensesFor reimbursement of expensesFor reimbursement of expenses

� Prior period items to be disclosed Prior period items to be disclosed Prior period items to be disclosed Prior period items to be disclosed

separately.separately.separately.separately.

Lunawat & Co.

ADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTESADDITIONAL INFORMATION BY WAY OF NOTES

� Transfer to/from Reserves:Transfer to/from Reserves:Transfer to/from Reserves:Transfer to/from Reserves:

� The aggregate of any amounts, if material, set The aggregate of any amounts, if material, set The aggregate of any amounts, if material, set The aggregate of any amounts, if material, set aside or proposed to be set aside, to reserve but aside or proposed to be set aside, to reserve but aside or proposed to be set aside, to reserve but aside or proposed to be set aside, to reserve but not including provisionsnot including provisionsnot including provisionsnot including provisions

� Any amount withdrawn from such reservesAny amount withdrawn from such reservesAny amount withdrawn from such reservesAny amount withdrawn from such reserves

� Transfer to/from ProvisionsTransfer to/from ProvisionsTransfer to/from ProvisionsTransfer to/from Provisions

� The aggregate of the amount, if material, set aside The aggregate of the amount, if material, set aside The aggregate of the amount, if material, set aside The aggregate of the amount, if material, set aside to provisions made to meeting liabilities, to provisions made to meeting liabilities, to provisions made to meeting liabilities, to provisions made to meeting liabilities, contingencies or commitmentscontingencies or commitmentscontingencies or commitmentscontingencies or commitments

� Any amount withdrawn from such provisions.Any amount withdrawn from such provisions.Any amount withdrawn from such provisions.Any amount withdrawn from such provisions.

Lunawat & Co.

OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES –––– IMPORTS CIFIMPORTS CIFIMPORTS CIFIMPORTS CIF� Value of imports made during the year on CIF basis:Value of imports made during the year on CIF basis:Value of imports made during the year on CIF basis:Value of imports made during the year on CIF basis:----

� Raw MaterialsRaw MaterialsRaw MaterialsRaw Materials

� Components (intermediaries & components) & Spare Parts (for capital Components (intermediaries & components) & Spare Parts (for capital Components (intermediaries & components) & Spare Parts (for capital Components (intermediaries & components) & Spare Parts (for capital

equipment)equipment)equipment)equipment)

� Capital GoodsCapital GoodsCapital GoodsCapital Goods

� Aggregate amount in each category is required to be disclosed. Aggregate amount in each category is required to be disclosed. Aggregate amount in each category is required to be disclosed. Aggregate amount in each category is required to be disclosed.

Components & spare parts shall be disclosed separately, if Components & spare parts shall be disclosed separately, if Components & spare parts shall be disclosed separately, if Components & spare parts shall be disclosed separately, if

practically separable.practically separable.practically separable.practically separable.

� Value of imports is to be disclosed, even if payments not made or Value of imports is to be disclosed, even if payments not made or Value of imports is to be disclosed, even if payments not made or Value of imports is to be disclosed, even if payments not made or

made in rupee terms. made in rupee terms. made in rupee terms. made in rupee terms.

� Only direct imports to be disclosed here. However imports through Only direct imports to be disclosed here. However imports through Only direct imports to be disclosed here. However imports through Only direct imports to be disclosed here. However imports through

agent would be disclosed here.agent would be disclosed here.agent would be disclosed here.agent would be disclosed here.

� Import in transit to be included if risks & rewards are transferred.Import in transit to be included if risks & rewards are transferred.Import in transit to be included if risks & rewards are transferred.Import in transit to be included if risks & rewards are transferred.

Lunawat & Co.

OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES –––– EXP FOREIGN CURRENCYEXP FOREIGN CURRENCYEXP FOREIGN CURRENCYEXP FOREIGN CURRENCY

� Expenditure in foreign currency on:Expenditure in foreign currency on:Expenditure in foreign currency on:Expenditure in foreign currency on:

� RoyaltyRoyaltyRoyaltyRoyalty

� KnowKnowKnowKnow----howhowhowhow

� Professional & consultation feeProfessional & consultation feeProfessional & consultation feeProfessional & consultation fee

� InterestInterestInterestInterest

� OthersOthersOthersOthers

� No disclosure required if payment is made in Rupees, any No disclosure required if payment is made in Rupees, any No disclosure required if payment is made in Rupees, any No disclosure required if payment is made in Rupees, any

other method or adjustment not involving other method or adjustment not involving other method or adjustment not involving other method or adjustment not involving forexforexforexforex

� No disclosure required if the company itself does not incur a No disclosure required if the company itself does not incur a No disclosure required if the company itself does not incur a No disclosure required if the company itself does not incur a

foreign currency expenditureforeign currency expenditureforeign currency expenditureforeign currency expenditure---- where company makes payment where company makes payment where company makes payment where company makes payment

in rupees and such other person makes in rupees and such other person makes in rupees and such other person makes in rupees and such other person makes forexforexforexforex remittanceremittanceremittanceremittance

� Disclosure on accrual basis. Gross expense to be disclosedDisclosure on accrual basis. Gross expense to be disclosedDisclosure on accrual basis. Gross expense to be disclosedDisclosure on accrual basis. Gross expense to be disclosed

Lunawat & Co.

OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES ---- CONSUMPTIONCONSUMPTIONCONSUMPTIONCONSUMPTION

� Disclosure is to be made for all imported and Disclosure is to be made for all imported and Disclosure is to be made for all imported and Disclosure is to be made for all imported and

indigenous indigenous indigenous indigenous

�Raw materialsRaw materialsRaw materialsRaw materials

� Spare parts (for plant & machinery and similar Spare parts (for plant & machinery and similar Spare parts (for plant & machinery and similar Spare parts (for plant & machinery and similar

nature items)nature items)nature items)nature items)

� Components Components Components Components

� consumed during the financial year.consumed during the financial year.consumed during the financial year.consumed during the financial year.

� Aggregate value of each item & its percentage with Aggregate value of each item & its percentage with Aggregate value of each item & its percentage with Aggregate value of each item & its percentage with

respect to total consumption is to be disclosedrespect to total consumption is to be disclosedrespect to total consumption is to be disclosedrespect to total consumption is to be disclosed

� Actual cost to be taken not FOB or CIF valueActual cost to be taken not FOB or CIF valueActual cost to be taken not FOB or CIF valueActual cost to be taken not FOB or CIF value

� Total consumption should tally with PLTotal consumption should tally with PLTotal consumption should tally with PLTotal consumption should tally with PL

Lunawat & Co.

OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES ---- DIVIDENDDIVIDENDDIVIDENDDIVIDEND

� If paid in foreign currency, disclose:If paid in foreign currency, disclose:If paid in foreign currency, disclose:If paid in foreign currency, disclose:

� Total amount remitted during the year in foreign Total amount remitted during the year in foreign Total amount remitted during the year in foreign Total amount remitted during the year in foreign

currencycurrencycurrencycurrency

� Total number of nonTotal number of nonTotal number of nonTotal number of non----resident shareholdersresident shareholdersresident shareholdersresident shareholders

� Total number of shares held by them on which Total number of shares held by them on which Total number of shares held by them on which Total number of shares held by them on which

dividend was duedividend was duedividend was duedividend was due

� Year to which dividend relatesYear to which dividend relatesYear to which dividend relatesYear to which dividend relates

� Disclosure to be made in Indian currencyDisclosure to be made in Indian currencyDisclosure to be made in Indian currencyDisclosure to be made in Indian currency

� If no dividend is remitted, no such disclosure is If no dividend is remitted, no such disclosure is If no dividend is remitted, no such disclosure is If no dividend is remitted, no such disclosure is

required required required required –––– Cash basis to be followed.Cash basis to be followed.Cash basis to be followed.Cash basis to be followed.

Lunawat & Co.

OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES –––– FC EARNINGSFC EARNINGSFC EARNINGSFC EARNINGS

�To be classified as:To be classified as:To be classified as:To be classified as:

�Export of goods (calculated on F.O.B. basis)Export of goods (calculated on F.O.B. basis)Export of goods (calculated on F.O.B. basis)Export of goods (calculated on F.O.B. basis)

�Royalty, know how, professional and Royalty, know how, professional and Royalty, know how, professional and Royalty, know how, professional and

consultation feesconsultation feesconsultation feesconsultation fees

� Interest and dividendsInterest and dividendsInterest and dividendsInterest and dividends

�Other income (indicating the nature thereof)Other income (indicating the nature thereof)Other income (indicating the nature thereof)Other income (indicating the nature thereof)

�Disclosure to be made on accrual basisDisclosure to be made on accrual basisDisclosure to be made on accrual basisDisclosure to be made on accrual basis

�Disclosure is to be made with gross Disclosure is to be made with gross Disclosure is to be made with gross Disclosure is to be made with gross

figures with a mention of tax deducted at figures with a mention of tax deducted at figures with a mention of tax deducted at figures with a mention of tax deducted at

source.source.source.source.

Lunawat & Co.

CA. Pramod JainCA. Pramod JainCA. Pramod JainCA. Pramod Jainpramodjain@lunawat.compramodjain@lunawat.compramodjain@lunawat.compramodjain@lunawat.com

+91 9811073867+91 9811073867+91 9811073867+91 9811073867

© 2014 CA. Pramod Jain, Lunawat & Co