Amendments in Schedule III from 1st day of April, 2021

As per the amendments many new disclosure has been mandatory as detailed below

  • Disclosure of Shareholding of Promoters
  • Trade Payables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years
  • Reconciliation of the gross and net carrying amounts of each class of assets
  • Trade Receivables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years
  • Detailed disclosure regarding title deeds of Immovable Property not held in name of the Company
  • Disclosure regarding revaluation & CWIP ageing.
  • Loans or Advances granted to promoters, directors, KMPs and the related parties
  • Details of Benami Property held
  • Reconciliation and reasons of material discrepancies, in quarterly statements submitted to bank and books of accounts.
  • Disclosure where a company is a declared willful defaulter by any Bank or Financial Institution
  • Relationship with Struck off Companies
  • Pending registration of charges or satisfaction with Registrar of Companies
  • Compliance with number of layers of companies
  • Disclosure of following Ratios :
    • Current Ratio\
    • Debt-Equity Ratio
    • Debt Service Coverage Ratio
    • Return on Equity Ratio
    • Inventory turnover ratio
    • Trade Receivables turnover ratio
    • Trade payables turnover ratio
    • Net capital turnover ratio
    • Net profit ratio
    • Return on Capital employed
    • Return on investment
  • Compliance with approved Scheme(s) of Arrangements
  • Utilisation of Borrowed funds and share premium
  • Details of transaction not recorded in the books that has been surrendered or disclosed as income in the tax assessments (undisclosed income)
  • Disclosure regarding Corporate Social Responsibility
  • Details of any trading or investment in Crypto Currency or Virtual Currency.\
For official notification, click here.

Other Matters to be Included in Auditors Report

  • Reporting regarding advances, loans & Investment other than disclosed in notes to accounts.
  • Receiving of funds for further lending or investing other than disclosed in notes to accounts.
  • Whether Dividend declared or paid is in compliance of section 123 of Companies Act, 2013.
  • Comment on use of Accounting Software having Audit Trail & other rules therein.

      For official notification, click here.

Mandatory use of Accounting Software having Audit Trail

From Financial Year commencing on 01.04.2021, every Company shall use Accounting Software having feature to record audit trail of each transaction, creating the edit log of changes made & ensuring that the audit trail cannot be disabled.

For official notification, click here.

Feel free to contact in case of any query or consultation.

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