Amendment to Schedule III of Companies Act 2013

 

MCA has revised Schedule III of Companies Act 2013 to increase strictness in compliances and add several additional disclosures in Financial Statement. The main purpose behind these amendments is more clarity.

Financial statement of the company The Ministry of Corporate Affairs (MCA) vides notification dated 24 Mar 2021 has revised Schedule III to the Companies Act, 2013, which shall be effective from the 1st day of April 2021. Earlier companies had to round off the figures developing in the financial statements based on “turnover”; however, based on the latest amendment, circulating off will be based on your company’s “total income”.

Purpose of amendment In recent years, there have been significant changes in the detailed requirement by the auditors, but no such corresponding amendments were made in Schedule-III for the preparation of the financial statements. Thus, to range the company’s financial statements in accordance with the auditor’s reporting requirements, the following amendments have been considered in this write-up. majority of the amendments to Schedule III to the Companies Act, 2013 have been assumed in response to the amendments protected in the newly issued Companies (Auditors and Report Order) 2020 and the Companies (Indian Accounting Standards) Amendment Rules, 2020.

Brief on amendments to Schedule III Division I, to the Act (for Companies whose financial statements are required to observe with the Accounting Standards):

• General instruction for preparation of balance sheet

1. Rounding off It’s choice to do rounding off of figures till fiscal year ended 31.03.2021. To round off the figures appearing within the Financial Statements for the fiscal year ending 31.03.2022, the entire income of the corporate shall be considered because of the basis.
2. Additional disclosure in notes to balance sheet Shareholding of promoter The note on share capital in the financial statements shall mention details of the shareholding of the advances along with changes, if any, during the financial year.
3. Additional disclosure in notes to profit & loss account: Undisclosed Income (Reconciliation of Income Tax and Companies Act) The company shall give specific 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, unless there is exclusion 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.

We assist our clients in dealing with compliances related to company incorporation, business setup, ROC filings, and winding up of the company etc. if you have any questions or wish to know more about Amendment under Schedule III of Companies Act, kindly contact us.

Source: newcompanyregistrationindia.com

GOVERNMENT SCHEMES FOR SMALL SCALE BUSINESSES IN INDIA

GOVERNMENT SCHEMES FOR SMALL BUSINESS IN INDIA

• The Credit Guarantee Fund Scheme for Micro and Small Enterprises

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to provide collateral-free credit to Indian MSMEs. Both the existing and the new enterprises are eligible for the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the scheme.Company formation services in India

• Credit Link Capital Subsidy Scheme for Technology Upgradation

Upgradation of the process as well as the corresponding plant and machinery is important to help SMEs reduce the cost of production and remain price competitive in the global market. To help SMEs flourish in international trade markets, the Ministry of Small Scale Industries (SSI) runs a scheme for technology upgradations of Small Scale Industries. Known as the Credit Linked Capital Subsidy Scheme (CLCSS), it aims at facilitating technology upgradations by providing an upfront capital subsidy of 15% (limited to maximum Rs.15 lakhs) to SSI units for credit availed by them for the modernisation of their plant and machinery. All sole proprietorship, partnership firms, cooperative, private and public limited companies are eligible for this scheme. Since the inception of this scheme, more than 28,287 units have availed subsidy of Rs.1619.32 crore. Company formation in delhi

• Small Industries Development Bank of India (SIDBI)

Small Industries Development Bank of India (SIDBI) started its small business funding programs way back in 1990. Established by an act of Parliament, SIDBI is now one of the most illustrious names among the government financial institutions. This loan has played an active role in the promotion and development of the small business industry. Company formations Procedure in India

• National Small Industries Corporation Limited (NSIC)

National Small Industries Corporation Limited (NSIC) came into effect in the year 1999 with an objective of encouraging the small scale industries in the country. The prime feature of NSIC is to import machines on hire-purchase terms. It lay emphasis on supplying and distributing both indigenous and imported raw material as well as on exporting the products of small business units. Besides, it also creates awareness of advancements occurring in the field of small scale industries. New Company Registration in delhi

• National Bank for Agriculture and Rural Development (NABARD)

National Bank for Agriculture and Rural Development or NABARD came into existence mainly for promoting agriculture-based rural business enterprises. NABARD mostly offers financial assistance to small scale industries viz; cottage and village industry. New Company Registration in india

• Market Development Assistance Scheme for MSMEs

To help Indian manufacturing SMEs gain traction in the international markets, the Market Development Assistance Scheme for MSMEs offers funding for participation in international trade fairs and exhibitions under MSME India stall. It also offers funding for sector-specific market studies by industry associations, export promotion councils, and FIEO. This scheme offers reimbursement of 75% of a one-time registration fee and 75% of annual fees (recurring) paid to GSI by SMEs for the first three years for the bar code.To know more 

• Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises

This scheme aims at sensitizing the manufacturing MSME sector to use energy efficient technologies and manufacturing processes in order to reduce production cost and emissions of harmful gasses. The scheme also aims to improve the product quality of MSMEs to encourage them towards becoming globally competitive. For this, the Government of India provides financial support to the extent of 75% of the actual expenditure to help to manufacture MSMEs buy energy efficient technologies for production.To know more 

• Mini Tools Room and Training Centre Scheme

To assist state governments set up Mini Tool Room and Training Centres, the Government of India provides financial assistance in the form of one-time grant-in-aid. The financial aid equals to 90% of the cost of machinery/equipment (maximum to Rs. 9 crores) in case new Mini Tool Room has to be created and 75% of the cost (maximum to Rs. 7.50 crore) in case an existing room has to be upgraded. The main objective of this scheme is to develop more tool room facilities in order to provide technological support to the MSMEs and training facility in tool manufacturing and tool design to create a workforce of skilled workers, supervisors, engineers/designers, etc.To know more