(See Section 211)

1. Loans from Directors; or Manager should be separately shown.

2. Interest accrued and due on unsecured loans must be included under the appropriate sub-heads under the head
   "Unsecured Loans".

3. Where loans have been guaranteed by the managers and/or directors a mention thereof should be made and also the aggregate amount of such loans under each head.

4. Short-term loans are defined to include those loans which are due for not more than 1 year as on the date of the balance sheet.

5. Maximum amount raised through ‘Commercial Paper’ and outstanding balance at year end to be disclosed as per RBI stipulations.

1. Advance payments/unexpired discounts are that portion for which value has still to be given; e.g. in case of following companies.
   
   Newspapers, Fire insurance, Theatres, Clubs, Banking companies, Steamship companies, etc.

2. Current account balances with directors, and manager, shall be shown separately.

3. The name(s) of the small scale industrial undertaking(s) to whom the company owes any sum exceeding Rs. 1,00,000/- together with interest which is outstanding for more than 30 days are to be disclosed.

1. These are to be shown by way of a footnote and their amounts do not form part of the total of the balance sheet.

2. In case of arrears of fixed cumulative dividends, the period for which the dividends are in arrears or if there is more than one class of shares, the dividends on each of such class are in arrears, shall be stated separately. The amount shall be stated before deduction of income tax except that in the case of tax free dividends the amount shall be shown free
   of income-tax and the fact that it is so shown must be stated.

3. The amount of any guarantee given by the company on behalf of the directors or other officers of the company should be stated.

4. The contingent liabilities with their general nature and amount of each such contingent liability, if material, should be stated.

1. The fixed assets must be classified and distinguished as far as possible between the heads given in the balance sheet.

2. Under each head, the following details have to be separately given:

a) Original cost of the asset.

b) Additions thereto during the year.

c) Deductions therefrom during the year.

d) Total depreciation written off or provided up to the end of the year.

3. Where the fixed asset was purchased from a foreign country, and as a result of a change in the exchange rate after such purchase, there is an increase or reduction in the liability of the company in terms of rupees, for making payment towards the whole or part of the cost of the asset or for the repayment of the moneys borrowed in foreign currency for such purchase of an asset, the amount by which the liability has increased or reduced, must be added to or deducted from the cost of the asset, as the case may be, and the resultant figure will be treated as the cost of the asset.

4. Where the original cost of the asset cannot be ascertained without unreasonable expense or delay, the valuation shown by the books must be given. Such valuation shall be the net amount at which the asset stood in the company’s books at the commencement of the Companies Act, 1956, after deduction for depreciation etc.

5. Where any sum has been written off on a reduction of capital or revaluation of assets, every balance sheet subsequent to such reduction or revaluation must show the reduced figures and the date of the reduction. For a period of five years, the amount of the reduction made shall also be stated.

6. Similarly, where sums have been added by writing up the asset, each subsequent balance sheet, should show the increased figures with the date of the increase. For a period of five years, the amount of the increase shall also be stated.

7. Depreciation written off or provided should be allocated under the different heads of assets and deducted in arriving at the value of the fixed assets.

1. The nature of investment and the mode of valuation for example at cost or market value shall be stated.

2. The investments shall be distinguished between quoted and unquoted investments and where quoted, the market value must be shown.

3. Investments in shares, debentures or bonds must be classified into fully paid or partly paid and into different classes of shares.

4. Investments in subsidiaries must be separately stated.

5. Investments must also be classified into trade investments and other investments. "Trade investment" means an investment by a company in the shares or debentures of another company, not being its subsidiary, for the purpose of promoting the trade or business of the first company.

6. A separate schedule of investments, showing the names of bodies corporate (showing separately the bodies corporate under the same management) in whose shares or debentures, investments have been made, should be annexed. The schedule also should show all the investments whether existing or not, made subsequent to the date as at which previous balance sheet was made out. In case of investment company (principal business of acquisition of shares, debentures, etc.), investments existing on the date as at which the balance sheet was made out may be given.

7. In regard to the investments in the capital of partnership firms, the names of the firms, names of all other partners, total capital and share of each partner shall be given.

8. All unutilised monies out of the issue must be separately disclosed in the Balance Sheet of the company indicating the form in which such unutilised funds have been invested.

1. If, in the opinion of the Board, any of the current assets, loans and advances have not a value on realisation in the ordinary course of the business at least equal to the amount at which they are stated, the fact that the Board is of that opinion shall be stated.

2. In case of stores and spare parts, stock-in-trade and work-in-progress, the mode of valuation shall be stated. Amount in respect of raw materials should be stated separately wherever practicable.

3. In case of investment in shares, debentures, etc. classified under current assets as a stock-in-trade information as per paras 5 and 6 above under ‘Investment' shall also be given separately.

4. In regard to sundry debtors particulars should be given separate in respect of :

a) debts considered good and in respect of which the company is fully secured.

b) debts considered good for which the company holds no security other than the debtor’s personal security, and

c) debts considered doubtful or bad.

A separate disclosure should also be made in respect of following:

a) debts due by —

i) directors or other officers of the company

ii) directors or other officers of the company jointly with any other person

iii) firms in which any director is partner

iv) private companies in which any director is a director or a member

b) debts due from other companies under the same management within the meaning of sub-section (1B) of S. 370 together with the names of such cos.

c) the maximum amount due by directors or other officers of the company at any time during the year.

The term "Sundry Debtors" has been defined to include "the amounts due in respect of goods sold or services rendered or in respect of other contractual obligations". It does not, however, include amounts which are in the nature of loans or advances.

The provision for bad and doubtful debts under the head ‘sundry debtors’ should not exceed the amount of debts stated to be considered bad or doubtful. Any surplus of such provision should be shown as reserve for bad or doubtful debts under the head ‘Reserves and Surplus’ on the liabilities side.

5. In regard to ‘bank balances’, the following particulars should be given :

a) the balance lying with scheduled banks on current accounts, call accounts and deposit accounts;

b) the names of the bankers (other than scheduled banks) and the balances lying with each such banker on current accounts, call accounts and deposit accounts, and the maximum amount outstanding at any time during the year from each such banker; and

c) the nature of the interest, if any, of any director or his relative in each of the banks, referred to in (b) above.

6. In regard to loans and advances, all instructions regarding ‘Sundry Debtors’ would apply to "Loans and Advances" also.

The amounts due from other companies under the same management within the meaning of S. 370(1B) shall be given with the names of such companies.

The maximum amount due from every one of such companies at any time during the year must also be stated.

Current accounts with directors and managers should be shown separately.

1. The debit balance of profit and loss account should be shown as a deduction from the free or uncommitted reserves, if any.

2. While showing "interest paid out of capital during construction", the rate of interest shall be stated.

1. If the required information cannot be given conveniently in the given form in the balance sheet itself, it may be furnished in separate schedules annexed to and forming part of the balance sheet.

2. Except in the case of the first balance sheet, the corresponding amounts for the immediately preceding financial year for all items shall also be shown.

3. Paise can also be given in addition to rupees, if desired.

4. Dividends declared by subsidiary companies after the date of the balance sheet should not be included unless they are in respect of the period which closed on or before the date of the balance sheet.

5. Any reference to benefits expected from contracts to the extent executed shall not be made in the balance sheet but shall be made in the Board's Report.

6. A small-scale industrial undertaking has the same meaning as assigned to it under clause (j) of sec. 3 of the Industries
   (Development and Regulation) Act, 1951.

7. The figures in the balance sheet may be rounded off as under:

• Less than Rs. 100 crores : to the nearest hundreds or thousands or decimal thereof

• Between Rs. 100 crore or more, but less than Rs. 500 crores : to the nearest hundreds, thousands, lakhs or millions or decimal thereof

• Rs. 500 crores or more, to the nearest hundreds, thousands, lakhs, millions or crores or decimal thereof.

Notes :

1. Details under each of the above items shall be given in separate Schedules. The Sche-dules shall incorporate all the information required to be given under A Horizontal Form read with notes containing general instructions for preparation of balance sheet. The Schedules, referred to above, accounting policies and explanatory notes that may be attached shall form an integral part of the balance sheet.

2. The figures in the balance sheet may be rounded off as mentioned in "Other general instructions" – Point No. 7, under the previous topic of "Requirements as to Balance Sheet".

3. A footnote to the balance sheet may be added to show separately contingent liabilities.

3. Payment to Directors including Managing Directors/ Manager, if any by the Company, subsidiary of the Company and any other person for following :

a) Managerial remuneration u/s. 198.

b) Other allowance and commission including guarantee commission (details to be given).

c) Any other perquisite or benefits in cash or in kind. (Stating approximate money value where practicable)

d) Pension, gratuities, payments from provident funds, in excess of own subscription and interest thereon, compensation for loss of office, retirement consideration, etc.

4. Computation of net profit u/s 349 with details of the commission payable as percentage of profits to the directors including Managing Directors/Manager (if any).

5. Payments to the Auditors (Whether as fees, expenses or otherwise for services rendered)

a) As auditor;

b) As adviser, or in any other capacity, in respect of

i) taxation matters;

ii) company law matters;

iii) management services; and

c) in any other manner.

6. In case of manufacturing companies in respect of each class of goods manufactured, detailed quantitative information in regard to:

a) the licensed capacity	as on the last date of the year.
(where licence is in force)
b) the installed capacity; and
c) the actual production

7. Following information to be included by way of note;

a) Value of imports on C.I.F. basis in respect of (i) raw materials; (ii) components and spare parts; (iii) capital goods;

b) expenditure in foreign currency for royalty, know-how, professional and consultation fees, interest and other matters.

c) value of imported raw materials, spare parts and components consumed; value of indigenous raw materials, spare parts and components consumed; and percentage of each to total consumption.

d) dividends remitted in foreign currencies; number of non-resident shareholders; number of shares held by them on which dividends are due and the year to which dividends relate.

e) Earnings in foreign exchange, namely

(i) Exports (F.O.B. basis) (ii) royalty, know-how, professional and consultation fees; (iii) interest and dividend (iv) other income, indicating the nature thereof.

8. Except in the case of the first Profit & Loss A/c, the corresponding amounts for the immediately preceding financial year for all items shall also be shown.

a) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires :

1. the expression "provision" shall, subject to sub-clause (b) of this clause, mean any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy;

2. the expression "reserve" shall not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability;

3. the expression "capital reserve" shall not include any amount regarded as free for distribution through the profit and loss account; and the expression "revenue reserve" shall mean any reserve other than a capital reserve; and in this sub-clause the expression "liability" shall include all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities.

b) Where

1. any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, not being an amount written off in relation to fixed assets before the commencement of this Act; or

2. any amount retained by way of providing for any known liability

is in excess of the amount which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of this Schedule as a reserve and not as a provision.

a) Item code No. (ITC Code)

b) Product description

Notes :

1. ‘Generic names’ means general terminology of products, rather than giving technical name/description of product.

2. For item code No. please refer to the publication ‘Indian Trade Classification’ by Ministry of Commerce, D.G. of Commercial Intelligence and Statistics, Kolkata 700 001.

3. Annexure 1 (not reproduced here) gives the list of State codes — Code for Maharashtra is 11 and for Gujarat is 04.