Exposure draft issued on Guidance Note on Division I, II & III of Schedule III to the Companies Act, 2013

A few months back the Ministry of Corporate Affairs (MCA), vide notification dated 24 March 2021 had amended Schedule III to the Companies Act, 2013 with its immediate applicability from the 1st day of April 2021. The notification incorporates various additional disclosure requirements while preparing the financial statements of an entity which are covered under the following three divisions of Schedule III to the Companies Act, 2013.

1. Division I – Guidelines for entities whose financial statements are required to comply with the Companies (Accounting Standards) Rules, 2006.

2. Division II – Guidelines for entities whose financial statements are required to comply with the Companies (Indian Accounting Standards) Rules, 2015.

3. Division III – Guidelines for Non- Banking Financial Companies (NBFCs) whose financial statements are required to comply with Companies (Indian Accounting Standards) Rules, 2015.

In order to lay down the broad guidelines on how to deal with the various practical issues that may arise during the implementation of Schedule III, the Corporate Laws & Corporate Governance Committee of the ICAI has issued exposure drafts on Revised Guidance Note under three divisions of the Schedule III to the Companies Act, 2013. The stakeholders are requested to submit their comments by 10 September 2021.

The detailed document can be accessed here