Presented by

CA Durgesh Kumar Kabra

Financial year Applies to standalone
Period is the whole Applicability of
commencing FS, except clause 3 Concept of
accounting year for reporting for
April 1, 2021 (xxi) which applies to CFS materiality
reporting purposes components
and not to standalone FS

An introduction to amendments to Schedule III

Period can be interim Applicability to all

With effect from April
period for reporting three Divisions of the
1, 2021 (comparatives
purposes (Condensed Companies Act as per
to be disclosed)
or Complete Set) Schedule III

2
❑ CARO 2020 summary as mapped with the revised Schedule III – a bird’s eye view

@ Clause 3(iii)(a) and (e) not applicable for a Company whose principal business is to give loans* Disclosures required under Section 186(4) of
the Companies Act, 2013 applicable for all the Companies other than banking company, insurance company, housing finance company when
provided in the ordinary course of its business or companies engaged in the business of financing or providing infrastructure facilities
Modification in clause
New Clause
No change in clause
3
❑ CARO 2020 summary as mapped with the revised Schedule III – a bird’s eye view

# To be disclosed in the Report of Board of Directors

Modification in clause
^ To be disclosed in the financial statements as per Ind AS 107, as applicable
New Clause
No change in clause

4
❑ CARO 2020 summary as mapped with the revised Schedule III – a bird’s eye view

# To be disclosed in the Report of Board of Directors

Modification in clause
New Clause
No change in clause

5
❑ CARO 2020 summary as mapped with the revised Schedule III – a bird’s eye view

Modification to clause 12
New clause 25

No change in clause 10

6
❑ Amendments to Schedule III of the Companies Act, 2013 - MCA

Applicable for the financial years beginning on or after April 1, 2021 #

Additional disclosures in the financial statements to align with CARO 2020 Division I Division II Division III

Title deeds of immovable property not held in the name of the Company   
Whether revaluation, if any, of property, plant and equipment and intangible assets is based on the report of registered valuer   
including disclosure of amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value
of each class of Property, Plant and Equipment and Intangible assets)
Proceedings over holding any benami property   
For borrowings on the basis of security of current assets: Whether quarterly returns or statements filed with banks or financial   
institutions are in agreement with the books of accounts. If not, summary of reconciliation and reasons of material
discrepancies, if any.
Loans or Advances in the nature of loans, granted to promoters, directors, KMPs and the related parties which are either   
repayable on demand or without specifying any terms or period of repayment.
Utilisation of borrowings for the purposes other than for which it was taken   
If a Company is declared willful defaulter, date of such declaration and details of defaults   
Ratios *, explanation if change is more than 25%   
Details of any undisclosed income   

* For Division I and II: (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt Service Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade Receivables
turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j) Return on Capital employed, (k) Return on investment For Division III: (a)
Capital to risk-weighted assets ratio (CRAR), (b) Tier I CRAR, (c) Tier II CRAR, (d) Liquidity Coverage Ratio

7
❑ Amendments to Schedule III of the Companies Act, 2013 – MCA

Other key disclosures Division I Division II Division III

Prior period errors, if any: Statement of changes in equity to separately disclose the effect thereof and restatedbalance X  
Shareholding of promoters   
Trade Payables ageing schedule (from due date of payment/ date of transaction), payable to MSME and others, disputed dues-   
MSME and disputed dues- others
Trade receivables ageing schedule (from due date of payment/ date of transaction), disputed and undisputed   
Ageing schedule for Capital work-in progress, intangible assets under development   
For CWIP and Intangible assets under development whose completion is overdue or has exceeded its cost compared to its original   
plan, completion schedule to be given. Any projects suspended to be disclosed separately.
Fair valuation of investment property for disclosure purpose to be based on the valuation by a registered valuer X  
Relationship with Struck off Companies   
Delay in registration of charges or satisfaction with Registrar of Companies - details and reasons   
Compliance with number of layers of companies   
Compliance with approved Scheme(s) of Arrangements "in accordance with the Scheme" and "in accordance with accounting   
standards“
Details of funds, guarantee, security etc. given to / taken from Intermediaries for onward utilisation by Ultimate Beneficiaries   
Details of trading or investment in Crypto Currency or Virtual Currency   
Mandatory Rounding off amounts in the financial statements  Already mandatory
Unit of measurement for rounding off to be selected depending on the total income of the Company   
Details of Corporate Social Responsibility activities   

8
❑ Amendments to Schedule III of the Companies Act, 2013 - MCA

Regroupings / Others Division I Division II Division III

Current maturities of long-term debt: from other current liabilities to short-term borrowings  X X
Current maturities of long-term debt: from other financial liabilities toborrowings X  X
Security deposits: from Long-term loans and advances to Other non-current assets  X X
Security deposits: from Loans to Other Financial Assets X  X
Revenue from Operations: Insertion of new item “Grants or donations received (relevant in case of section 8 companies   X
only)”
Financial Liabilities: Insertion of “(ia) Lease liabilities” underFinancial liabilities X  X
Intangible assets: Under sub-heading “Non-current assets”, the words “Intangible asset” are inserted after the words  X X
“Property, Plant andEquipment”
Property, Plant and Equipment: Under sub-heading “Non-current assets”, for the words “Tangible Assets”, the words  X X
“Property, Plant and Equipment” are substituted.
‘Turnover’ to be renamed as ‘Total Income’  X X

Division I: Financial Statements for a company whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006.
Division II: Financial Statements for a company other than NBFCs whose financial statements are drawn up in compliance of the Companies (Indian
Accounting Standards) Rules, 2015.
Division III: Financial Statements for a Non-Banking Financial Company (NBFC) whose financial statements are drawn up in compliance of the Companies
(Indian Accounting Standards) Rules, 2015.

The Company need to prepare early as the aforesaid information for FY 20-21 will be required to be used as comparative information for FY 20-21

9
 Clause 3(i)(a)(A)
Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of
Property, Plant and Equipment ?
Includes:
• Right of Use assets
• Investment property
• Non-current assets held for sale
• Capital work-in-progress

 Revised Schedule III

Additional Regulatory information comprising:
• Prescribed bucket wise ageing schedule for CWIP for both Projects in progress and Projects temporarily suspended.
CWIP < 1 Year 1-2 Years 2-3 Years > 3 Years

• In Progress

• Temporarily Suspended

• For CWIP, where completion is overdue or has exceeded its cost compared to the its original plan, “Completion Schedule”
including the expected period of completion to be given.

10
 Clause 3(i)(a)(B)
Whether the company is maintaining proper records showing full particulars of intangible assets ?
Includes:
• Intangible assets (whether self-generated or not) only when capitalized
• Intangible assets under development

 Revised Schedule III

Additional Regulatory information comprising:
• Prescribed bucket wise ageing schedule for Intangible assets under development for both Projects in progress and Projects
temporarily suspended.
• For Intangible assets under development, where completion is overdue or has exceeded its cost compared to the its
original plan, “Completion Schedule” including the expected period of completion to be given.
• Relationship with struck off Companies (e.g.: Payable for PPE)

11
 Clause 3(i)(c)
Whether the title deeds of all the immovable properties (other than properties where the company is the lessee and the
lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the
company, if not, provide the details thereof.
Includes immovable properties under CWIP, investment property, non- current assets held for sale. Does not cover other
immovable properties not classified as PPE [e.g., inventories of immovable property]

 Revised Schedule III

Additional Regulatory information comprising:
• Details of all immovable properties where title deeds are not in the name of the Company OR jointly held with others; in the
prescribed format (to the extent of the company’sshare):
− Item of balance sheet
− Description of item of property
− Gross Carrying Value
− Title deeds held in name of
− Whether title deed holder is a promoter, director or relative of promoter/director or employee of promoter/director
− Property held since when date
− Reason for not being held in the name of the Company
− Disputes, if any
• Registration of charges or satisfaction yet to be registered with ROC beyond statutory period, details and reasons thereof to
be disclosed.

12
 Clause 3(i)(d)
Whether the company has revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or
both during the year and, if so, whether the revaluation is based on the valuation by a Registered Valuer; specify the
amount of change, if change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and
Equipment or intangible assets.

 Revised Schedule III

• Reconciliation of gross and net carrying amounts of each class of assets at the beginning and end of the reporting period
showing amount of change due to revaluation (if change >=10% in aggregate of the net carrying value for PPE and
Intangible assets. This is in addition to other prescribed disclosures which we have been hitherto disclosing.

Additional Regulatory information comprising:

• Whether Fair Value (FV)/revaluation is based on the valuation by a registered valuer as defined under Rule 2 of The
Companies (Registered Valuers and Valuation) Rules, 2017 for the following:
− Investment Property (FV)
− PPE
− Intangible assets

13
 Clause 3(i)(e)
Whether any proceedings have been initiated or are pending against the company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, if so, whether the company has
appropriately disclosed the details in its financial statements.
Reporting is limited to adequacy of disclosure in the financial statements and to cases where proceedings are initiated with
the company as benamidar and not as beneficial owner.

 Revised Schedule III

Additional Regulatory information comprising:
• Details of such property
• Amount thereof
• Details of beneficiaries
• If property in books, then reference to Balance sheet
• If property not in books, then fact to be stated with reasons
• Details where there are proceedings against the Company as an a bettor of transaction or as the transferor
• Nature of proceedings, status of the same and company’s view on same.

14
 Clause 3(ii)(a)
Whether physical verification of inventory has been conducted at reasonable intervals by the management
and whether, in the opinion of the auditor, the coverage and procedure of such verification by the
management is appropriate; whether any discrepancies of 10% or more in the aggregate for each class of
inventory were noticed and if so, whether they have been properly dealt with in the books of account.

 Revised Schedule III

There is no amendment in revised schedule III.

15
 Clause 3(ii)(b)
Whether during any point of time of the year, the company has been sanctioned working capital limits in
excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets; whether the quarterly returns or statements filed by the company with such banks or
financial institutions are in agreement with the books of account of the Company, if not, give details.
The word ‘sanctioned’ is key and use of the word ‘in agreement’ and not ‘audit’ is critical.

 Revised Schedule III

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

Additional Regulatory information comprising:

• The Company to disclose whether quarterly returns or statements of current assets filed by the Company
with banks or financial institutions agree with the books of accounts; if not, summary of reconciliation and
reasons of material discrepancies, if any.

16
 Clause 3(iii)
Whether during the year the company has made investments, provided any guarantee or security
or granted any loans or advances in the nature of loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or any other parties. (a,b,c,d,e,f)

17
 Clause 3(iii) [Contd.]
Whether during the year the company has made investments, provided any guarantee or security or granted any loans or advances in
the nature of loans, secured or unsecured to companies, firms, Limited Liability Partnerships or any other parties.

 Revised Schedule III

Additional Regulatory information comprising:
• Following disclosures shall be made where loans or advances in nature of loans are granted to promoters, directors, KMPS and the
related parties (defined under the Companies Act, 2013), either severally or jointly with any other person.
a. Repayable on demand or
b. Without specifying any terms of period of repayment
Disclosures to include:
− Type of borrower
− Amount of loan or advance in the nature of loan outstanding
− % to the total loans and advances in the nature of loans
• Relationship with struck off Companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956
including name of struck off company, nature of transactions, balance outstanding and relationship with the struck off Company, if
any, to be disclosed.
• Compliance with number of layers of Companies – Where the Company has not complied with the number of layers u/s 2(87) of the
Companies Act, 2013 read with the Companies (restriction of number of layers) Rules, 2017, the name and CIN of the Companies
beyond the specified layers and the relationship or extent of holding of the Company in such downstream Companies shall be
disclosed.

18
 Clause 3(iii) [Contd.]
Whether during the year the company has made investments, provided any guarantee or security or granted any loans or
advances in the nature of loans, secured or unsecured to companies, firms, Limited Liability Partnerships or any other
parties.

 Revised Schedule III

• Where Company has advanced or loaned or invested funds (either borrowed funds or share premium or any other source
or kind of funds) to any other person or entities, including foreign entities (intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries the Company shall disclose the
following:
− Date and amount of fund advances or loaned or invested in Intermediaries with complete details of each
intermediary
− Date and amount of fund further advanced or loaned or invested by such Intermediaries to other Intermediaries or
Ultimate Beneficiaries along with complete details of the ultimate beneficiaries.
− Date and amount of guarantee, security or the like provided to or on behalf of the ultimate beneficiaries
− Declaration that relevant provisions of FEMA Act, 1999 and the Companies Act, 2013 have been complied with for
such transactions and the transactions are not violative of the Prevention of Money-Laundering Act 2002.

19
 Clause 3(iii) [Contd.]
Whether during the year the company has made investments, provided any guarantee or security or granted any loans or
advances in the nature of loans, secured or unsecured to companies, firms, Limited Liability Partnerships or any other
parties.

 Revised Schedule III

20
 Clause 3(iv)
In respect of loans, investments, guarantees, and security, whether provisions of sections 185 and 186
of the Companies Act have been complied with, if not, provide the details thereof.

 Revised Schedule III

There is no amendment in revised Schedule III.

21
 Clause 3(v)
In respect of deposits accepted by the Company or amounts which are deemed to be deposits, whether the directives issued
by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules made thereunder, where applicable, have been complied with? If not, the nature of such contraventions
be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India
or any court or any other tribunal, whether the same has been complied with or not ?

 Revised Schedule III

• Where Company has received any fund from other person or entities including foreign entities (Funding party) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries the Company shall disclose the
following:
− Date and amount of fund received from funding parties with complete details of each funding party
− Date and amount of fund further advanced or loaned or invested by other Intermediaries or ultimate
beneficiaries along with complete details of the other intermediaries or ultimate beneficiaries.
− Date and amount of guarantee, security or the like provided to or on behalf of the ultimate beneficiaries.
− Declaration that relevant provisions of FEMA Act, 1999 and the Companies Act, 2013 have been complied with for
such transactions and the transactions are not violative of the prevention of Money Laundering Act, 2002.

22
 Clause 3(viii)
Whether any transactions not recorded in the books of account have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(43 of 1961), if so, whether the previously unrecorded income has been properly recorded in
the books of account during the year.

 Revised Schedule III

In the Statement of Profit and Loss, ‘paragraph 7. Additional information’, following to be inserted after item
“k-details of items of exceptional nature”:
• Details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under
any scheme.
• State whether the previously unrecorded income and related assets have been properly recorded in the
books of account during the year.

23
  Clause 3(ix)(a)
Whether the company has defaulted in repayment of loans or other borrowings or in the payment of interest thereon to
any lender.
Lender wise details to be provided in case of defaults to banks, financial institutions and Government.

 Revised Schedule III

• Under the heading ‘Non current liabilities’,
− In sub-heading ‘borrowings’ - ‘Long term maturities of finance lease obligations’ shall be omitted
• Under the heading ‘Current liabilities’
− In sub-heading ‘borrowings’ – ‘Current maturities of Long Term borrowings’ shall be disclosed separately
− In sub-heading ‘other financial liabilities’ – ‘current maturities of long term debt’ and ‘current maturities of finance
lease obligation’ shall be omitted.
• Under the heading ‘Non-current liabilities’ and ‘Current Liabilities’, in sub item ‘(a) Finance Liabilities’, after (i)
Borrowings, (ia) Lease Liabilities has to be inserted.
• To be disclosed separately - Where the company has not used the borrowings from banks and financial institutions for
the specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where
they have been used. Also, refer clause 3(ix)(c).

24
 Clause 3(ix)(b)
Whether the company is a declared Willful defaulter by any bank or financial institution or other
lender.

 Revised Schedule III

Additional Regulatory information comprising:
• If the Company is a declared willful defaulter by any bank of financial institution or lender - then
date of declaration as willful defaulter and details of defaults (nature and amount) to be disclosed.

25
  Clause 3(ix)(c)
Whether term loans were applied for the purpose for which the loans were obtained; if not, the
amount of loan so diverted and the purpose for which it is used may be reported.
Diversion of funds would be construed to include any one of the undernoted occurrences:
a. utilisation of short-term working capital funds for long-term purposes not in conformity with the terms of sanction;
b. deploying borrowed funds for purposes / activities or creation of assets other than those for which the loan was
sanctioned;
c. transferring borrowed funds to the subsidiaries / Group companies or other corporates by whatever modalities;
d. routing of funds through any bank other than the lender bank or members of consortium without prior permission
of the lender;
e. investment in other companies by way of acquiring equities / debt instruments without approval of lenders;
f. shortfall in deployment of funds vis-à-vis the amounts disbursed / drawn and the difference not being accounted
for.

 Revised Schedule III

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

26
  Clause 3(ix)(d)
Whether funds raised on short term basis have been utilised for long term purposes, if yes, the nature
and amount to be indicated.
To address asset liability maturity mismatch that indicates liquidity issues during next 1 year.

 Revised Schedule III

• Tobe disclosed separately:

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

27
 Clause 3(ix)(e)
whether the company has taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures, if so, details thereof with nature of such transactions and the amount in each
case.

 Revised Schedule III

• To be disclosed separately: Where the company has not used the borrowings from banks and financial institutions for the
specific purpose for which it was taken at the balance sheet date, the company shall disclose the details of where they
have been used.
• Where Company has received any fund from other person or entities including foreign entities (Funding party)) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries the Company shall disclose the
following:
− Date and amount of fund received from funding parties with complete details of each funding party
− Date and amount of fund further advanced or loaned or invested by other Intermediaries or ultimate
beneficiaries along with complete details of the other intermediaries or ultimate beneficiaries.
− Date and amount of guarantee, security or the like provided to or on behalf of the ultimate beneficiaries
− Declaration that relevant provisions of FEMA Act, 1999 and the Companies Act, 2013 have been complied with
for such transactions and the transactions are not violative of the Prevention of Money-Laundering Act 2002.

28
 Clause 3(ix)(f)
Whether the company has raised loans during the year on the pledge of securities held in its subsidiaries,
joint ventures or associate companies, if so, give details thereof and also report if the company has
defaulted in repayment of such loans raised.

 Revised Schedule III

Additional Regulatory information comprising:

• If the Company is a declared willful defaulter by any bank of financial institution or lender - then date of
declaration as willful defaulter and details of defaults (nature and amount) to be disclosed

29
 Clause 3(x)(a)
Whether moneys raised by way of initial public offer or further public offer (including debt instruments) during the year
were applied for the purposes for which those are raised, if not, the details together with delays or default and
subsequent rectification, if any, as may be applicable, be reported.

 Revised Schedule III

Additional Regulatory Information Comprising:
• Where Company has received any fund from other person or entities including foreign entities (Funding party) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries the Company shall disclose the
following:
− Date and amount of fund received from funding parties with complete details of each funding party
− Date and amount of fund further advanced or loaned or invested by other Intermediaries or ultimate
beneficiaries along with complete details of the other intermediaries or ultimate beneficiaries.
− Date and amount of guarantee, security or the like provided to or on behalf of the ultimate beneficiaries
− Declaration that relevant provisions of FEMA Act, 1999 and the Companies Act, 2013 have been complied with
for such transactions and the transactions are not violative of the prevention of Money laundering Act, 2002.

30
 Clause 3(xi)(a) and (b)
a) whether any fraud by the company or any fraud on the company has been noticed or reported during the year, if
yes, the nature and the amount involved is to be indicated.
b) whether any report under sub section (12) of section 143 of the Companies Act has been filed by the auditors in
Form ADT 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government.

 Revised Schedule III

Additional Regulatory information comprising:

• Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the
following shall be disclosed:-
− Profit or loss on transactions involving Crypto currency or Virtual currency
− Amount of currency held as at the reporting date
− Deposits or advances from any person for the purpose of trading or
− Investing in Crypto Currency or virtual currency

31
 Clause 3(xi)(c)

Whether the auditor has considered whistle blower complaints, if any, received during
the year by the company

 Revised Schedule III

There is no amendment in Revised schedule III.

32
 Clause 3(xii)

a) Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:
20 to meet out the liability
b) Whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified
in the Nidhi Rules, 2014 to meet out the liability;
c) Whether there has been any default in payment of interest on deposits or repayment thereof for
any period and if so, the details thereof

 Revised Schedule III

There is no amendment in Revised schedule III.

33
 Clause 3(xiv) (a) and (b)
a) whether the company has an internal audit system commensurate with the size and
nature of its business;
b) whether the reports of the Internal Auditors for the period under audit were
considered by the statutory auditor;

 Revised Schedule III

There is no amendment in Revised schedule III.

34
 Clause 3(xvi)
a) Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act,
1934 and if so, whether the registration has been obtained
b) Whether the Company has conducted any Non-Banking Financial or Housing Finance activities before
obtaining the Certificate of Registration(COR) from the Reserve Bank of India as per the RBI Act?
c) Whether the Company is a Core Investment Company (CIC) as defined under the Regulations by the
RBI? If so, whether it continues to fulfil the criteria of a CIC. In case the company is an
exempted/unregistered CIC, whether it continues to fulfil such criteria
d) Whether the Group has more than one CIC as part of the Group. If yes, indicate the number of CICs
which are part of the Group

 Revised Schedule III

There is no amendment in Revised schedule III.

35
 Clause 3(xvii)
Whether the company has incurred cash losses in the financial year and in the
immediately preceding financial year, if so, state the amount of cash losses

 Revised Schedule III

There is no specific amendment in Revised Schedule III. Also, refer CARO clause 3(xix).

36
 Clause 3(xviii)
Whether there has been any resignation of the statutory auditors during the
year, if so, whether the auditor has taken into consideration the issues,
objections or concerns raised by the outgoing auditors.

 Revised Schedule III

There is no amendment in revised Schedule III

37
 Clause 3(xix)
On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial
liabilities, other information accompanying the financial statements, the auditor’s knowledge of the Board of Directors and
management plans, whether the auditor is of the opinion that no material uncertainty exists as on the date of the audit
report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due
within a period of one year from the balance sheet date.

 Revised Schedule III

Additional Regulatory information comprising following Ratios to be disclosed:-

a) Current Ratio g) Trade Payable Turnover Ratio

b) Debt Equity Ratio h) Net Capital Turnonver ratio
c) Debt Service Coverage Ratio i) Net Profit Ratio
d) Return on Equity Ratio j) Return on Capital Employed
e) Inventory Turnover Ratio k) Return on Investment

f) Trade Receivables turnover ratio

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

38
 Clause 3(xx)
a) whether, in respect of other than ongoing projects, the company has transferred unspent amount to a Fund specified in
Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second
proviso to sub-section (5) of section 135 of the said Act
b) whether any amount remaining unspent under sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing
project, has been transferred to special account in compliance with the provision of sub-section (6) of section 135 of the said Act

 Consider factors :
• Section 135 (5) second proviso and Section 135 (6) – effective date of applicability not yet notified.
• Upon notification, unspent money to be transferred to earmarked account / government fund as applicable, within the timeline
specified.
Particulars Ongoing Projects In respect of Other than ongoing projects

Time limit for transfer of unspent amount Within 30 day from end of financial year Within six months of the expiry of the financial year.

Transfer of unspent amount to Special bank account “Unspent Corporate Social Responsibility Fund specified in Schedule VII of the Act.
Account”. (^)
Treatment of unspent amount as at the balance sheet Provision will be triggered
(*) Such amount transferred to be spent within a period of 3 financial years from the date of transfer failing which the Company shall transfer the same to Fund specified in
Schedule VII of the Act.
• Where the time period mentioned under this clause has not elapsed by the date of our report, reporting to be made accordingly.
• Amount towards Corporate Social Responsibility (CSR) spent in excess would be allowed to be carried forward to next year and could be adjusted against future obligation.
• Report the unspent amount transferred after the due date and the number of days delayed in transfer of such amount to the funds or special account as mentioned in the
sub-clause (a) and (b).

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 Clause 3 (xx)(Contd.)

 Revised Schedule III

In the Statement of Profit and Loss, ‘paragraph 7. Additional information’, following to be inserted after item ‘k-details of
items of exceptional nature”:
(m) Corporate Social Responsibility (CSR) –

Where the company covered under section 135 of the Companies Act, the following shall be disclosed with regard to CSR
activities:-
− amount required to be spent by the company during the year,
− amount of expenditure incurred,
− shortfall at the end of the year,
− total of previous years shortfall,
− reason for shortfall,
− nature of CSR activities,
− details of related party transactions, e.g., contribution to a trust controlled by the company in relation to CSR expenditure
as per relevant Accounting Standard,
− where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in
the provision during the year shall be shown separately.

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 Clause 3(xxi)
Whether there have been any qualifications or adverse remarks by
the respective auditors in the Companies (Auditor’s Report) Order
(CARO) reports of the companies included in the consolidated
financial statements, if yes, indicate the details of the companies
and the paragraph numbers of the CARO report containing the
qualifications or adverse remarks.

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