Guidance Note on Division I – Non Ind AS Schedule III to the Companies Act 2013 issued by CL&CGC ICAI [January, 2022 Edition]


  1. Introduction
    1.1 Schedule III to the Companies Act, 2013 (‘the Act’) provides the manner in which every company registered under the Act shall prepare its Balance Sheet, Statement of Profit and Loss and notes thereto. In the light of various economic and regulatory reforms that have taken place for companies over the last several years, there was a need for harmonizing and synchronizing the notified Accounting Standards as applicable (‘AS’/‘Accounting Standard(s)’).

1.2 The relevant format of Schedule III to the Act is given in Annexure A (Pg 142). As per the Act and Rules / Notifications thereunder, the Schedule applies to all companies, except for those companies where Division II and Division III of the Schedule III is applicable, for the Financial Statements to be prepared for the financial year commencing on or after April 1, 2014. This Guidance Note also incorporates the changes made by various MCA Notifications upto 31 March 2021 to Division I to the Schedule III (hereinafter, referred to as ‘Schedule III’).

1.3 The requirements of the Schedule III however, do not apply to companies as referred to in the proviso to Section 129(1) of the Act, i.e., any insurance or banking company, or any company engaged in the generation or supply of electricity or to any other class of company for which a form of financial statement has been specified in or under the Act governing such class of company.

1.4 It may be clarified that for companies engaged in the generation and supply of electricity, however, neither the Electricity Act, 2003, nor the rules framed thereunder, prescribe any specific format for presentation of Financial
Statements by an electricity company. Section 1(4)(d) of the Companies Act, 2013 states that the provisions of the Companies Act shall apply to companies engaged in the generation or supply of electricity, except in so far
as the said provisions are inconsistent with the provisions of the Electricity Act, 2003. Keeping this in view, Schedule III may be followed by such companies till the time any other format is prescribed by the relevant statute……………..

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