Revised schedule III (under Companies Act 2013) - key considerations

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The Ministry of Corporate Affairs (MCA) has amended Schedule III of Companies Act 2013 (“Act”) on 24 March 2021 to increase transparency and provide additional disclosures to users of financial statements. These amendments are effective from 1 April 2021 onwards. Companies need to gear up to provide significant information about the new clauses in financial statements. In addition, companies may need to realign their Financial Statements Close Process (FSCP) and internal control over financial reporting. This is to ensure that the information and data relating to new clauses are compiled appropriately and on a timely basis to avoid last minute hassle in the preparation of financial statements.

Previously, MCA had issued the Companies (Auditor’s Report) Order, 2020 (CARO 2020), which is also applicable for audit reports to be issued on or after 1 April 12021. Some of the changes in Schedule III are in line with changes in CARO 2020, so Companies can provide the required information in financial statements for Auditors to report in CARO 2020.

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This webcast provided a comprehensive view of the new requirements in Division II (Applicable to Companies following Indian Accounting Standards “Ind AS”) of Schedule III (herein referred to as “Schedule III amendment” or “amendment”), and its implications on financial reporting.

Speakers

Jigar Parikh, Partner, Financial Accounting Advisory Services (FAAS), EY India

Webcast

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.