Companies Act section 5: Regulatory Deferral Account Balances shall be presented…

In force · As amended up to 2026-08

5. A payable shall be classified as a 'trade payable' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 5. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian Accounting Standards. PART II - STATEMENT OF PROFIT AND LOSS Name of the Non-Banking Financial Company……………………. Statement of Profit and Loss for the period ended ……………………… 5. The "and" omitted by Act 1 of 2018, s. 30 (w.e.f. 7-5-2018). 6. The proviso subs. by Act 29 of 2020, s. 22 (w.e.f. 22-1-2021). (a) the names of the directors present at the meeting; and (b) in the case of each resolution passed at the meeting, the names of the directors, if any, dissenting from, or not concurring with the resolution. (5) There shall not be included in the minutes, any matter which, in the opinion of the Chairman of the meeting,— (a) is or could reasonably be regarded as defamatory of any person; or - (b) is irrelevant or immaterial to the proceedings; or - (c) is detrimental to the interests of the company. (6) The Chairman shall exercise absolute discretion in regard to the inclusion or non-inclusion of any matter in the minutes on the grounds specified in sub-section (5). (7) The minutes kept in accordance with the provisions of this section shall be evidence of the proceedings recorded therein. (8) Where the minutes have been kept in accordance with sub-section (1) then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and the resolutions passed by postal ballot to have been duly passed and in particular, all appointments of directors, key managerial personnel, auditors or company secretary in practice, shall be deemed to be valid. 5. Subject to Parts A and B above, the following are the useful lives of various tangible assets: 5. Additional Information A Company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:— (i) (a) Employee Benefits Expense [showing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses]. (b) Depreciation and amortisation expense; (c) Any item of income or expenditure which exceeds one per cent. of the revenue from operations or Rs.1,00,000, whichever is higher; 1. Ins. by Notification No. G.S.R. 207(E), dated 24th March, 2021, (w.e.f. 1-4-2021). - (d) Interest Income; - (e) Interest expense; - (f) Dividend income; - (g) Net gain/loss on sale of investments; - (h) Adjustments to the carrying amount of investments; (i) Net gain or loss on foreign currency transaction and translation (other than considered as finance cost); (j) Payments to the auditor as (a) auditor; (b) for taxation matters; (c) for company law matters; (d) for management services; (e) for other services; and (f) for reimbursement of expenses; (k) In case of Companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities; - (l) Details of items of exceptional and extraordinary nature; - (m) Prior period items; |(Rupees in ...................... )|(Rupees in ...................... )|(Rupees in ...................... )|(Rupees in ...................... )|(Rupees in ...................... )| |---|---|---|---|---| ||Particulars|Note No.|Figures for the current reporting period|Figures for the previous reporting period| ||Revenue from operations|||| |(i)|Interest Income|||| |(ii)|Dividend Income|||| |(iii)|Rental Income|||| |(iv)|Fees and commission Income|||| |(v)|Net gain on fair value changes|||| |(vi)|Net gain on derecognition of financial instruments under amortised cost category|||| |(vii)|Sale of products(including Excise Duty)|||| |(viii)|Sale of services|||| |(ix)|Others (to be specified)|||| |(I)|Total Revenue from operations|||| |||||| |(II)|Other Income (to be specified)|||| |(III)|Total Income (I+II)|||| |||||| ||Expenses|||| |(i)|Finance Costs|||| |(ii)|Fees and commission expense|||| |(iii)|Net loss on fair value changes|||| |(iv)|Net loss on derecognition of financial instruments under amortised cost category|||| |(v)|Impairment on financial instruments|||| |(vi)|Cost of materials consumed|||| |(vii)|Purchases of Stock-in-trade|||| |(viii)|Changes in Inventories of finished goods, stock-in-trade and work-in- progress|||| |(ix)|Employee Benefits Expenses|||| |(x)|Depreciation, amortization and impairment|||| |(xi)|Others expenses (to be specified)|||| |(IV )|Total Expenses (IV)|||| |||||| |(V )|Profit / (loss) before exceptional items and tax (III-IV)|||| |(VI )|Exceptional items|||| |(VII )|Profit/(loss) before tax (V -VI )|||| |(VIII)|Tax Expense: (1) Current Tax (2) Deferred Tax|||| 5. A payable shall be classified as a "trade payable" if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. (9) No document purporting to be a report of the proceedings of any general meeting of a company shall be circulated or advertised at the expense of the company, unless it includes the matters required by this section to be contained in the minutes of the proceedings of such meeting. (10) Every company shall observe secretarial standards with respect to general and Board meetings specified by the Institute of Company Secretaries of India constituted under section 3 of the Company Secretaries Act, 1980 (56 of 1980), and approved as such by the Central Government. (11) If any default is made in complying with the provisions of this section in respect of any meeting, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees. (12) If a person is found guilty of tampering with the minutes of the proceedings of meeting, he shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees. |Nature|of assets|Useful Life| |---|---|---| |I.|Buildings [NESD]|| |(a) |Buildings (other than factory buildings) RCC Frame Structure|60 Years| |(b) |Buildings (other than factory buildings) other than RCC Frame|30 Years| ||Structure|| |(c) |Factory buildings|-do-| |(d) |Fences, wells, tube wells|5 Years| |(e) |Others (including temporary structure, etc.)|3 Years| |II.|Bridges, culverts, bunders, etc. [NESD]|30 Years| |III.|Roads [NESD]|| |(a) |Carpeted roads|| |(i) |Carpeted Roads-RCC|10 Years| |(ii) |Carpeted Roads-other than RCC|5 Years| |(b) |Non-carpeted roads|3 Years| |IV.|Plant and Machinery|| |(i) |General rate applicable to plant and machinery not covered|| ||under special plant and machinery|| |(a) |Plant and Machinery other than continuous process plant not|15 Years| ||covered under specific industries|| |1[(b)|continuous process plant for which no special rate has been|25 Years]| ||prescribed under (ii) below [NESD]|| |(ii) |Special Plant and Machinery|| |(a) |Plant and Machinery related to production and exhibition of|| ||Motion Picture Films|| |1.|Cinematograph films—Machinery used in the production and|13 Years| ||exhibition of cinematograph films, recording and reproducing|| ||equipments, developing machines, printing machines, editing|| ||machines, synchronizers and studio lights except bulbs|| |2.|Projecting equipment for exhibition of films|-do-| |(b) |Plant and Machinery used in glass manufacturing|| |1.|Plant and Machinery except direct fire glass melting furnaces|13 Years| ||—Recuperative and regenerative glass melting furnaces|| |2.|Plant and Machinery except direct fire glass melting furnaces|8 Years| ||—Moulds[NESD]|| |3.|Float Glass Melting Furnaces [NESD]|10 Years| |(c) |Plant and Machinery used in mines and quarries—Portable|8 Years| ||underground machinery and earth moving machinery used in|| ||open cast mining [NESD]|| - (ii) (a) In the case of manufacturing companies,— (1) Raw materials under broad heads. - (2) goods purchased under broad heads. (b) In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. (c) In the case of companies rendering or supplying services, gross income derived from services rendered or supplied under broad heads. (d) In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads. (e) In the case of other companies, gross income derived under broad heads. (iii) In the case of all concerns having works in progress, works-in-progress under broad heads. (iv) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made up. (b) The aggregate, if material, of any amounts withdrawn from such reserves. (v) (a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. ||Particulars|Note No.|Figures for the current reporting period|Figures for the previous reporting period| |---|---|---|---|---| ||Revenue from operations|||| |(IX)|Profit / (loss) for the period from continuing operations(VII-VIII)|||| |(X)|Profit/(loss) from discontinued operations|||| |(XI)|Tax Expense of discontinued operations|||| |(XII)|Profit/(loss) from discontinued operations(After tax) (X- XI)|||| |(XIII)|Profit/(loss) for the period (IX+XII)|||| |||||| |(XIV)|Other Comprehensive Income|||| ||(A) (i) Items that will not be reclassified to profit or loss (specify items and amounts)|||| ||(ii) Income tax relating to items that will not be reclassified to profit or loss|||| ||Subtotal (A)|||| ||(B) (i) Items that will be reclassified to profit or loss (specify items and amounts)|||| ||(ii) Income tax relating to items that will be reclassified to profit or loss|||| ||Subtotal (B)|||| ||Other Comprehensive Income (A + B)|||| |||||| |(XV)|Total Comprehensive Income for the period (XIII+XIV) (Comprising Profit (Loss) and other Comprehensive Income for the period)|||| |||||| |(XVI)|Earnings per equity share (for continuing operations)|||| ||Basic (Rs.)|||| ||Diluted (Rs.)|||| |||||| |(XVII)|Earnings per equity share (for discontinued operations)|||| ||Basic (Rs.)|||| ||Diluted (Rs.)|||| |||||| |(XVIII)|Earnings per equity share (for continuing and discontinued operations)|||| ||Basic (Rs.)|||| ||Diluted (Rs.)|||| 5. Depending upon the[2] [Total Income] of the company, the figures appearing in the Financial Statements shall be rounded off as below: |2[Total Income]|Rounding off| |---|---| |(i) less than one hundred crore rupees| To the nearest hundreds, thousands, lakhs or millions, or decimals thereof.| |(ii) one hundred crore rupees or more|To the nearest, lakhs, millions or crores, or decimals thereof.| Once a unit of measurement is used, it should be used uniformly in the Financial Statements. (b) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. (vi) Expenditure incurred on each of the following items, separately for each item:— - (a) Consumption of stores and spare parts; - (b) Power and fuel; - (c) Rent; - (d) Repairs to buildings; - (e) Repairs to machinery; - (f) Insurance; - (g) Rates and taxes, excluding, taxes on income; (h) Miscellaneous expenses, (vii) (a) Dividends from subsidiary companies. (b) Provisions for losses of subsidiary companies. (viii) The profit and loss account shall also contain by way of a note the following information, namely:— - (a) Value of imports calculated on C.I.F basis by the company during the financial year in respect of— - I. Raw materials; - II. Components and spare parts; - III. Capital goods; (b) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; (c) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; See accompanying notes to the financial statements Notes GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS 1. The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss. 2. The Statement of Profit and Loss shall include: - (A) Profit or loss for the period; - (B) Other Comprehensive Income for the period. The sum of (A) and (B) above is 'Total Comprehensive Income'. 3. Interest Income |Particulars|(Current Year)|(Current Year)|(Current Year)|(Previous Year)|(Previous Year)|(Previous Year)| |---|---|---|---|---|---|---| ||On Financial Assets measured at fair value through OCI|On Financial Assets measured at Amortised Cost|Interest Income on Financial Assets classified at fair value through profit or loss|On Financial Assets measured at fair value through OCI|On Financial Assets measured at Amortised Cost|Interest Income on Financial Assets classified at fair value through profit or loss| |Interest on Loans||||||| |Interest income from investments||||||| |Interest on deposits with Banks||||||| |Other interest Income||||||| |Total||||||| 4. Net gain/ (loss) on fair value changes* (d) The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related; - (e) Earnings in foreign exchange classified under the following heads, namely:— - I. Export of goods calculated on F.O.B. basis; - II. Royalty, know-how, professional and consultation fees; - III. Interest and dividend; - IV. Other income, indicating the nature thereof. Note:— Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements. 1[(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 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, |Particulars|(Current Year)|(Previous Year)| |---|---|---| |(A) Net gain/ (loss) on financial instruments at fair value through profit or loss||| |(i) On trading portfolio||| |- Investments||| |- Derivatives||| |- Others||| |(ii) On financial instruments designated at fair value through profit or loss||| |(B) Others ( to be specified)||| |Total Net gain/(loss) on fair value changes (C)||| |Fair Value changes: -Realised -Unrealised||| |Total Net gain/(loss) on fair value changes(D) to tally with (C)||| *Fair value changes in this schedule are other than those arising on account of accrued interest income/expense. 5. Other Income (to be specified) |Particulars|(Current Year)|(Previous Year)| |---|---|---| |Net gain/(loss) on ineffective portion of hedges||| |Netgain/(loss)on derecognition ofproperty, plant and equipment||| |Net gain or loss on foreign currency transaction and translation (other than considered as finance cost)( to be specified)||| |Others(to be specified)*||| |Total||| * Any item under the subhead 'Others' which exceeds one per cent of the total income to be presented separately. 6. Finance Costs 5. Depending upon the total income of the NBFC, the figures appearing in the Financial Statements shall be rounded off as below: |Total Income|Rounding off| |---|---| |(i) less than one hundred crore rupees|To the nearest hundreds, thousands, lakhs or millions, or decimals thereof.| |(ii) one hundred crore rupees or more|To the nearest, lakhs, millions or crores, or decimals thereof.| Once a unit of measurement is used, it should be used uniformly in the Financial Statements. - (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. 1. Ins. by Notification No. G.S.R. 207(E), dated 24th March, 2021, (w.e.f. 1-4-2021). (xi) Details of Crypto Currency of 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 or 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.] GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS |Particulars|(Current Year)|(Current Year)|(Previous Year)|(Previous Year)| |---|---|---|---|---| ||On Financial liabilities measured at fair value through profit or loss|On Financial liabilities measured at Amortised Cost|On Financial liabilities measured at fair value through profit or loss|On Financial liabilities measured at Amortised Cost| |Interest on deposits||||| |Interest on borrowings||||| |Interest on debt securities||||| |Interest on subordinated liabilities||||| |Other interest expense||||| |Total||||| 7. Employee Benefits Expenses |Particulars|(Current Year)|(Previous Year)| |---|---|---| |Salaries and wages||| |Contribution toprovident and other funds||| |Share Based Payments to employees||| |Staff welfare expenses||| |Others(to be specified)||| |Total||| 8. Impairment on financial instruments |Particulars|(Current Year)|(Current Year)|(Previous Year)|(Previous Year)| |---|---|---|---|---| ||On Financial instruments measured at fair value through OCI|On Financial instruments measured at Amortised Cost|On Financial instruments measured at fair value through OCI|On Financial instruments measured at Amortised Cost| |Loans||||| |Investments||||| |Others(to be specified)||||| |Total||||| 9. Other expenses (to be specified) ==> picture [500 x 185] intentionally omitted <== * Any item under the subhead 'Others expenditure' which exceeds one per cent of the total income to be presented separately. 10. Other Comprehensive Income shall be classified into- - (A) Items that will not be reclassified to profit or loss - i. Changes in revaluation surplus; - ii. Remeasurements of the defined benefit plans; - iii. Equity Instruments through Other Comprehensive Income; - iv. Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss; - v. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit or loss; and - vi. Others (specify nature). - (B) Items that will be reclassified to profit or loss; - i. Exchange differences in translating the financial statements of a foreign operation; - ii. Debt Instruments through Other Comprehensive Income; - iii. The effective portion of gains and loss on hedging instruments in a cash flow hedge; - iv. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent to be classified into profit or loss; and - v. Others (specify nature).

Source: India Code