[TO BE PUBLISHED IN GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF CORPORATE AFFAIRS

Notification

New Delhi,  24^th March, 2021

G.S.R. (E).—In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments in Schedule III to the said Act with effect from 1^st day of April, 2021, namely:-

In the said Schedule,-

(a)  in Division I,-

(i)      under the heading “General instructions for preparation of Balance Sheet and statement of Profit and Loss of a company”, under sub-heading “General instructions”, in paragraph 4, in clause (i), for the word “may” the word “shall” and for the word “Turnover”, at both the places where it occurs, the words “Total Income” shall be substituted;

(ii)   in Part I- Balance Sheet,-

(A)   under the heading “II Assets”, under sub-heading “Non-current assets”, after the words “Property, Plant and Equipment”, the words “and Intangible assets” shall be inserted and for the words “Tangible Assets”, the words “Property, Plant and Equipment” shall be substituted;

(B)    in the “Notes”, under the heading “General Instructions for Preparation of Balance Sheet”, in paragraph 6,-

(I)    under the heading “A. Share Capital”, after item (l) and the entries relating thereto, the following shall be inserted, namely:

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

Total

*Promoter here means promoter as defined in the Companies Act, 2013.

**  Details shall be given separately for each class of shares

***  percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue. ”

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(II)           under the heading “F. Short-term borrowings”, after item (iv) and the entries relating thereto, the following shall be inserted, namely:

“(v) current maturities of Long term borrowings shall be disclosed separately.” ;

(III)         after the heading “FA. Trade Payables” and the entries relating thereto, the following shall be inserted, namely:

“FB. Trade payables due for payment

The following ageing schedule shall be given for Trade payables due for payment:-

Trade Payables ageing schedule

#  similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately;

(IV)   under the heading “G. Other current liabilities”, item (a) shall be omitted;

(V)        Under the heading “I. Tangible Assets”,-

(a)   for the words “Tangible Assets”, the words “Property, Plant and Equipment” shall be substituted;

(b)    for item (iii), the following shall be substituted, namely:-

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

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acquisitions through business combinations, amount of change due to revaluation (if change is 10% or more in the aggregate of the net carrying value of each class of intangible assets) and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.”;

(VII)  Under the heading “L. Long-term loans and advances”, in item (i), sub-item (b) shall be omitted;

(VIII)  Under the heading “M. Other non-current assets”,-

(a)    after item (i), the following shall be inserted, namely:

“(ia) Security Deposits”

(b)    after item (iii), the following shall be inserted, namely:

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

Trade Receivables ageing schedule

(Amount in Rs.)

#  similar information shall be given where no due date of payment is specified, in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately.”;

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(IX)      Under the heading “P. Trade Receivables”, for item (i), the following item shall be substituted, namely:-

“ (i) For trade receivables outstanding, the following ageing schedules shall be given:

Trade Receivables ageing schedule

#  similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately.”;

(X)   After heading “V.”, following shall be inserted, namely:-

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

(XI) in heading “W.”, after the words “Property, Plant and Equipment”, the words “,Intangible assets” shall be inserted;

(XII)   heading “X.” shall be omitted;

(XIII) after heading “X.”, the following shall be inserted, namely:

“Y. Additional Regulatory Information

(i)    Title deeds of Immovable Property not held in name of the Company

The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee)

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whose title deeds are not held in the name of the company in format given below and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.

#Relative here means relative as defined in the Companies Act, 2013.

*Promoter here means promoter as defined in the Companies Act, 2013.

(ii)            Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017.

(iii)           Following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a)   repayable on demand or

(b)   without specifying any terms or period of repayment

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”;

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

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

*Total shall tally with CWIP amount in the balance sheet.

(b)   For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**:

**Details of projects where activity has been suspended shall be given separately.

(v)  Intangible assets under development:

(a)  For Intangible assets under development, following ageing schedule shall be given:

Intangible assets under development aging schedule

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*  Total shall tally with the amount of Intangible assets under development in the balance sheet.

(b)   For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, following Intangible assets under development completion schedule shall be given**:

(Amount in Rs.)

Intangible assets under development

To be completed in

Project 1

Project 2

**Details of projects where activity has been suspended shall be given separately.

(vi)             Details of Benami Property held

Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company shall disclose the following:-

(a)    Details of such property, including year of acquisition,

(b)   Amount thereof,

(c)    Details of Beneficiaries,

(d)   If property is in the books, then reference to the item in the Balance Sheet,

(e)    If property is not in the books, then the fact shall be stated with reasons,

(f)    Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor then the details shall be provided,

(g)   Nature of proceedings, status of same and company’s view on same.

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

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

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

(viii)  Wilful Defaulter*

Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given:

(a)    Date of declaration as wilful defaulter,

(b)  Details of defaults (amount and nature of defaults),

* “wilful defaulter” here means a person or an issuer who or which is categorized as a wilful defaulter by any bank or financial institution (as defined under the Act) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix)   Relationship with Struck off Companies

Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details:-

(x)   Registration of charges or satisfaction with Registrar of Companies

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

(xi)     Compliance with number of layers of companies

Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the company in such downstream companies shall be disclosed.

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(xii)                   Following Ratios to be disclosed:-

(a)        Current Ratio,

(b)        Debt-Equity Ratio,

(c)        Debt Service Coverage Ratio,

(d)        Return on Equity Ratio,

(e)        Inventory turnover ratio,

(f)         Trade Receivables turnover ratio,

(g)        Trade payables turnover ratio,

(h)        Net capital turnover ratio,

(i)         Net profit ratio,

(j)         Return on Capital employed,

(k)        Return on investment.

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

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

Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained.

(xiv)       Utilisation of Borrowed funds and share premium:

(A)  Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(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:-

(I)   date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary.

(II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries.

(III)  date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries

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(IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;

(B)  Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company 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:-

(I)   date and amount of fund received from Funding parties with complete details of each Funding party.

(II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries’ or ultimate beneficiaries.

(III)  date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries

(IV)  declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;

(iii)    in Part II- Statement of Profit and Loss,-

(A) under the heading “III. Total Revenue (I +II)”, for the word “Revenue”, the word “Income” shall be substituted;

(B)  under the heading “General Instructions for Preparation of Statement of Profit and Loss”,-

(I)    in paragraph 2, in item (A), after sub-item (b), the following shall be inserted, namely:-

“(ba) Grants or donations received (relevant in case of section 8 companies only)”;

(II)         in paragraph “5. Additional information”, after item (viii) and the entries relating thereto, the following shall be inserted, namely:-

“(ix) Undisclosed income

The Company shall give details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under

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any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.;

(x) 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:-

(a)      amount required to be spent by the company during the year,

(b)     amount of expenditure incurred,

(c)      shortfall at the end of the year,

(d)     total of previous years shortfall,

(e)      reason for shortfall,

(f)      nature of CSR activities,

(g)     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,

(h)     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 should be shown separately.

(xi) Details of Crypto Currency or Virtual Currency

Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed:-

(a)      profit or loss on transactions involving Crypto currency or Virtual Currency

(b)     amount of currency held as at the reporting date,

(c)      deposits or advances from any person for the purpose of trading or investing in Crypto Currency/ virtual currency.”;

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(b)  in Division II,

(i) under the heading “General instructions for preparation of Financial Statements of a company required to comply with Ind AS”, in paragraph 5, for the word “Turnover”, at both the places where it occurs, the words “Total Income” shall be substituted;

(ii)  in Part I- Balance Sheet,-

(A)     under the heading “Equity and Liabilities”, in sub-heading “Liabilities”,-

(I)  in item “(1) Non-current liabilities”, in sub-item “(a) Financial Liabilities”, after (i), the following shall be inserted, namely:-

“(ia) Lease liabilities”

(II)  in item “(2) Current Liabilities”, in sub-item “(a) Financial Liabilities”, after (i), the following shall be inserted, namely:-

“(ia) Lease liabilities”

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(B) for the heading “Statement of Changes in Equity” and the entries relating thereto, the following shall be substituted, namely:

“STATEMENT OF CHANGES IN EQUITY

Name of the Company..............

A. Equity Share Capital

(1) Current reporting period

B. Other Equity

(1) Current reporting period

Equity

_Share      componen

applicatio          ^{t of}

_{n money}  compoun

pending ^d allotment _instrumen^financial

ts

13

Balance

at the

beginning

of the

current

reporting

period

Changes

in

accountin

g  policy or prior period errors

Restat

ed

balanc

e at the

beginn

ing of

the

current

reporti

ng

period

Total

Compreh

ensive

Income

for the

current

year

14

Dividend

s

Transfer

to

retained

earnings

Any

other

change

(to be

specified)

Balance

at the end

of the

current

reporting

period

(2) Previous reporting period

beginning

of the

previous

reporting

period

Changes

in

accountin

g

policy/pri

or period

errors

Restat

ed

balanc

e at the

beginn

ing of

the

previo

us

reporti

ng

period

Total

Compreh

ensive

Income

for the

previous

year

16

Dividend

s

Transfer

to

retained

earnings

Any

other

change

(to be

specified)

Balance

at the end

of the

previous

reporting

period

Note: Remeasurment of defined benefit plans and fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of such items alongwith the relevant amounts in the Notes or shall be shown as a separate column under Reserves and Surplus ”

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(C) in the “Notes”, under the heading “General Instructions For Preparation of Balance Sheet”,-

(I) In paragraph 6,-

(a) under the heading “A. Non-Current Assets”,-

(i)  under the sub-heading “I. Property, Plant and Equipment”, for item (iii), the following item shall be substituted, namely:-

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

(ii)  under the sub-heading “IV. Other Intangible assets”, for item (ii), the following item shall be substituted, namely:-

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

(iii)   under the sub-heading “VII. Trade Receivables”, after item (iii), the following item shall be inserted, namely:-

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

Trade Receivables ageing schedule

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(ii)                Undisputed Trade Receivables –

which have significant increase in credit risk

(iii)              Undisputed Trade Receivables – credit impaired

(iv)   Disputed Trade Receivables– considered good

(v)    Disputed Trade Receivables – which

have significant increase in credit risk

(vi)   Disputed Trade Receivables – credit impaired

#  similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately”;

(iv) Under the sub- heading “VIII. Loans”, in sub item (i), sub-item (a) shall be omitted;

(v)   For sub-heading “IX” and the entries relating thereto, the following shall be substituted, namely:-

“IX. Other financial assets

(i)  Security Deposits

(ii)  Bank deposits with more than 12 months maturity

(iii)  others(to be specified)” ;

(b) under the heading “B. Current Assets”,-

(i)    in the sub-heading “III. Trade Receivables”, after item (iii) and the entries relating thereto, the following shall be inserted, namely:-

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

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Trade Receivables ageing schedule

#  similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately”;

(ii)  under the sub-heading “V. Loans”, in item (i), sub-item (a) shall be omitted;

(iii)  after the sub-heading “V. Loans” and the entries relating thereto, the following shall be inserted, namely:-

“VA. Other Financial Assets: This is an all-inclusive heading, which incorporates financial assets that do not fit into any other financial asset categories, such as, Security Deposits.”

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(c)   under the heading “D. Equity”, in sub-heading “I. Equity Share Capital”, after item (l), the following item shall be inserted, namely:-

“(m) A company shall disclose Shareholding of Promoters* as under:

Total

*Promoter here means promoter as defined in the Companies Act, 2013.

**  Details shall be given separately for each class of shares

***  percentage change shall be computed with respect to the number at the beginning of the year or if issued during the year for the first time then with respect to the date of issue.”;

(d)  under the heading “E. Non-Current Liabilities”, in sub-heading “I. Borrowings”, in item (i), sub-item (f) shall be omitted;

(e)   under the heading “F. Current Liabilities”,-

(i)    in sub- heading “I. Borrowings”, after item (iv), the following item shall be inserted, namely:-

“(v) Current maturities of Long term borrowings shall be disclosed separately”.;

(ii)  under the sub- heading “II. Other Financial Liabilities”, items (a) and (b) shall be omitted;

(f)   after the heading “FA. Trade Payables”, and the entries relating thereto, the following shall be inserted, namely:-

“FB. For trade payables due for payment, following ageing schedule shall be given:

Trade Payables aging schedule

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(iv)Disputed     dues     -

Others

#  similar information shall be given where no due date of payment is specified in that case disclosure shall be from the date of the transaction.

Unbilled dues shall be disclosed separately”;

(g)    after heading “J” and the entries relating thereto, the following shall be inserted, namely:-

“JA. 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.”;

(h)  heading K and the entries relating thereto, shall be omitted;

(i)  after heading K and the entries relating thereto, the following shall be inserted, namely:-

“L. Additional Regulatory Information

(i)  Title deeds of Immovable Properties not held in name of the Company

The company shall provide the details 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) whose title deeds are not held in the name of the company in following format and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.

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Non-current asset held for sale

-

others

Land

Building

#Relative here means relative as defined in the Companies Act, 2013.

*Promoter here means promoter as defined in the Companies Act, 2013.

(ii)            The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

(iii)           Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

(iv)           Where the company has revalued its intangible assets, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

(v)             The following disclosures shall be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment,

Related Parties

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

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

Projects in progress

Projects       temporarily

suspended

*Total shall tally with CWIP amount in the balance sheet.

(b)   For capital-work-in progress, whose completion is overdue or has exceeded its cost compared to its original plan, following CWIP completion schedule shall be given**:

**Details of projects where activity has been suspended shall be given separately.

(vii)  Intangible assets under development:

(a)   For Intangible assets under development, following ageing schedule shall be given:

Intangible assets under development aging schedule

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Projects

temporarily

suspended

*  Total shall tally with the amount of Intangible assets under development in the balance sheet.

(b)   For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan, the following Intangible assets under development completion schedule shall be given**:

Project 1

Project 2

**Details of projects where activity has been suspended shall be given separately.

(viii)       Details of Benami Property held

Where any proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, the company shall disclose the following:-

(a)     Details of such property,

(b)     Amount thereof,

(c)     Details of Beneficiaries,

(d)     If property is in the books, then reference to the item in the Balance Sheet,

(e)     If property is not in the books, then the fact shall be stated with reasons,

(f)      Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor then the details shall be provided,

(g)     Nature of proceedings, status of same and company’s view on same.

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

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

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

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(x)    Wilful Defaulter*

Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, following details shall be given:

(a)Date of declaration as willful defaulter,

(b)  Details of defaults (amount and nature of defaults)

*  wilful defaulter” here means a person or an issuer who or which is categorized as a willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(xi)  Relationship with Struck off Companies

Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details, namely:-

(xii)  Registration of charges or satisfaction with Registrar of Companies (ROC)

Where any charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed.

(xiii)   Compliance with number of layers of companies

Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on 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.

(xiv)   Following Ratios to be disclosed:-

(a)   Current Ratio,

(b)   Debt-Equity Ratio,

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(c)   Debt Service Coverage Ratio,

(d)     Return on Equity Ratio,

(e)     Inventory turnover ratio,

(f)      Trade Receivables turnover ratio,

(g)     Trade payables turnover ratio,

(h)     Net capital turnover ratio,

(i)      Net profit ratio,

(j)      Return on Capital employed,

(k)     Return on investment.

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

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

Where the Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, the company shall disclose that the effect of such Scheme of Arrangements have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and any deviation in this regard shall be explained.

(xvi)                    Utilisation of Borrowed funds and share premium:

(A)  Where company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(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:-

(I)    date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary.

(II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries.

(III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries

(IV)  declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and

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the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;

(B)  Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company 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:-

(I)   date and amount of fund received from Funding parties with complete details of each Funding party.

(II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries’ or ultimate beneficiaries.

(III)  date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries

(IV)  declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).;