Section 4. Finance Costs: Finance costs shall be classified as

4. Finance Costs: Finance costs shall be classified as- - (a) interest; - (b) dividend on redeemable preference shares; - (c) exchange differences regarded as an adjustment to borrowing costs; and - (d) other borrowing costs (specify nature). 5 Other income: Other income shall be classified as- 4. Heading "X" omitted by Notification No. G.S.R. 207(E), dated 24th March, 2021, (w.e.f. 1-4-2021). 5. Ins. by Notification No. G.S.R. 207(E), dated 24th March, 2021, (w.e.f. 1-4-2021). (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 serverally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment |Type of Borrower|Amount of loan or advance in<br>the nature of loan outstanding|Percentage to the total Loans and Advances in<br>the nature of loans| |---|---|---| |Promoters||| |Directors||| |KMPs||| |Related Parties||| (iv) Capital-Work-in Progress (CWIP) (a) For Capital-work-in progress, following ageing schedule shall be given: CWIP aging schedule (Amount in Rs.) ||||||(Amount in Rs.| |---|---|---|---|---|---| |CWIP|Amount in CWIP for a period of||||Total*| ||Less than 1<br>year|1-2 years|2-3 years|More than 3 years|| |Projects in<br>progress<br>Projects<br>temporarily<br>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: (Amount in Rs.) |CWIP|To be completed in|To be completed in|To be completed in|To be completed in| |---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| |Project 1<br>Project 2"||||| Details of projects where actively 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 ||ts under development aging schedule|ts under development aging schedule| |---|---|---| ||(Amount in Rs.)<br>Amount in CWIP for a period of<br>Total*|| ||Amount in CWIP for a period of|Total*| |Intangible assets under<br>development|Less than 1<br>year|1-2 years|2-3 years|More than 3 years|| |---|---|---|---|---|---| |Projects in progress<br>Projects temporarily<br>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, following Intangible assets under development completion schedule shall be given: (Amount in Rs.) 4. (i) Depending upon the[2] [Total Income] of the company, the figures appearing in the Financial Statements 3[Shall] be rounded off as given below:— 2[Total Income] Rounding off (a) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. (b) one hundred crore rupees or more To the nearest lakhs, millions or crores, or decimals thereof. (ii) Once a unit of measurement is used, it[4] [should] be used uniformly in the Financial Statements. |Intangible assets<br>under development|To be completed in|To be completed in|To be completed in|To be completed in| |---|---|---|---|---| ||Less than 1 year|1-2 years|2-3 years|More than 3 years| |Project 1<br>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:- (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. 4. A receivable shall be classified as a "trade receivable" if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. (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 willful 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), * "willful 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 Act) or consortium thereof, in accordance with the guidelines on willful 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:- |Name of struck off<br>Company|Nature of transactions<br>with struck off Company|Balance<br>outstanding|Relationship with the Struck off<br>company, if any, to be disclosed| |---|---|---|---| ||Investments in securities||| ||Receivables||| ||Payables||| ||Shares held by stuck off<br>company||| ||Other outstanding<br>balances (to be specified)||| (x) Registration of charges or satisfaction with Registrar of Companies 4. Other income Other income shall be classified as: (a) Interest Income (in case of a company other than a finance company); (b) Dividend Income; (c) Net gain/loss on sale of investments; (d) Other non-operating income (net of expenses directly attributable to such income). 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. (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 4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating. 1[ Division II Financial Statements for a company whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015. GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY REQUIRED TO COMPLY WITH Ind AS 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. 4. (i) Notes shall contain information in addition to that presented in the Financial Statements and shall provide - where required (a) narrative descriptions or disaggregations of items recognised in those statements; and - (b) information about items that do not qualify for recognition in those statements. (ii) Each item on the face of the Balance Sheet, Statement of Changes in Equity and Statement of Profit and Loss shall be cross-referenced to any related information in the Notes. In preparing the Financial Statements including the Notes, a balance shall be maintained between providing excessive detail that may not assist users of Financial Statements and not providing important information as a result of too much aggregation. (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); (B) Where a company has received any fund from any persons (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 4. A receivable shall be classified as a 'trade receivable' if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. (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).] 4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating.] 1[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. GENERAL INSTURCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A NON-BANKING FINANCIAL COMPANY (NBFC) THAT IS REQUIRED TO COMPLY WITH INDIAN ACCOUNTING STANDARDS (Ind AS) 4. (i) Notes shall contain information in addition to that presented in the Financial Statements and shall provide where required- - (a) narrative descriptions or disaggregations of items recognised in those statements; and - (b) information about items that do not qualify for recognition in those statements. (ii) Each item on the face of the Balance Sheet, Statement of Changes in Equity and Statement of Profit and Loss shall be cross-referenced to any related information in the Notes. In preparing the Financial Statements including the Notes, a balance shall be maintained between providing excessive details that may not assist users of Financial Statements and not providing important information as a result of too much aggregation. 4. Compound financial instruments such as convertible debentures, where split into equity and liability components, as per the requirements of the relevant Indian Accounting Standards, shall be classified and presented un- der the relevant heads in ''Liabilities and Equity'.