Technical Guide on

Financial Statements of
Non-Corporate Entities

The Institute of Chartered Accountants of India

(Set up by an Act of Parliament)
New Delhi
© The Institute of Chartered Accountants of India
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form, or by any means, electronic,
mechanical, photocopying, recording, or otherwise without prior permission, in
writing, from the publisher.
Basic draft of this publication was prepared by CA. Vishal Doshi.

First Edition : June 2022

Committee/Department : Accounting Standards Board

E-mail : asb@[Link]

Website : [Link] / [Link]

Price : Rs.150/-

ISBN No : 978-93-90668-07-6

Published by : The Publication Department on behalf of the

Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi - 110 002.

Printed by : Friends Digital Color Print Shop, Okhla

Phase – II, New Delhi – 110020
June | 2022 | P3077 (New)
 FOREWORD

Accounting Standards prescribe the principles for recognition and measurement of

events, transactions and various elements of the financial statements as well as
lay down presentation and disclosure requirements for the same. General Purpose
Financial Statements prepared in accordance with the Accounting Standards
provide relevant and reliable information which enables the users of financial
statements to make informed economic decisions about the entity.

The Institute of Chartered Accountants of India (ICAI), through its Accounting

Standards Board (ASB), apart from formulating high quality Accounting Standards
(viz., Ind AS and AS) and recommending these Standards to the Government of
India for notification under section 133 of the Companies Act, 2013, also issues
Accounting Standards for non-company entities.

Entities other than Companies incorporated under the Companies Act, 2013, are
considered to be non-company entities. Non-company entities include sole
proprietorship firms, partnership firms, limited liability partnerships, trusts, Hindu
Undivided Families, association of persons and co-operative societies, etc. For the
applicability of Accounting Standards to these non-company entities, the ICAI has
prescribed the criteria classifying non-company entities into four levels, viz-a-viz,
Level I, Level II, Level III and Level IV non-company entities.

I am happy to share that to standardise the formats of the financial statements to

be prepared by the non-corporate entities, the ASB has taken a significant step by
formulating this Technical Guide recommending the formats of financial
statements for non-corporate entities. This would enable these entities to
communicate their financial performance and financial position in standardised
formats thereby enhancing their comparability. The Technical Guide has been
developed in a simple manner to assist and enable preparers and other
stakeholders to discharge their functions effectively and efficiently. Since Limited
Liability Partnerships (LLPs) incorporated under Limited Liability Partnerships Act,
2008, are corporate form of entity, these entities are scoped out of the applicability
of the Technical Guide.
I appreciate the initiative taken by the ASB in coming out with this Technical
Guide. I express my sincere appreciation for CA. Pramod Jain, Chairman, ASB,
CA. Abhay Chhajed, Vice-chairman, ASB, CA. Vishal Doshi, Convenor of the
Study Group constituted to formulate this Technical Guide and all members of the
Study Group and the ASB for bringing out this Technical Guide.

I am sure that this Technical Guide would bring consistency and comparability in
the presentation and disclosure of financial information reported by the non-
corporate entities and would be of immense use to professionals and other
stakeholders.

New Delhi CA. (Dr.) Debashis Mitra

June 02, 2022 President, ICAI
 PREFACE

Financial reporting by an entity about its activities, financial position and financial
performance play a very important role not only in the context of that entity but
also for the economic development of the country regardless of the objective or
purpose of formation of the entity and its legal structure. Financial statements of
an entity provide useful information to wide range of users to help them in making
decisions about an entity.

While recognition and measurement principles laid down in the Accounting

Standards issued by the ICAI are applicable to non-corporate entities and certain
disclosures and presentation aspects have also been dealt with under the
Accounting Standards, formats for presentation of financial statements of non-
corporate entities have not been prescribed. Efforts have always been made to
provide necessary guidance to such entities from time to time. For example, to
ensure effective implementation of Accounting Standards, ICAI announced the
scheme for applicability of Accounting Standards to non-company entities. For this
purpose, non-company entities are classified into four levels, viz., Level I, Level II,
Level III and Level IV non-company entities. Level I entities are large size entities
and required to comply with all the standards. Level IV, Level III and Level II non-
company entities are considered as Micro, Medium and Small Sized non-company
Entities and have been granted certain exemptions/relaxations.

Moving forward in the direction of effective implementation of Accounting

Standards, formats for preparation of financial statements have been prescribed
for non-corporate entities which can be applied by all non-corporate entities except
where relevant law/regulation/authority has prescribed any other specific formats
for the concerned non-corporate entities. The formats have been prescribed by the
Accounting Standards Board (ASB) of ICAI in form of Technical Guide for Non-
Corporate Entities which is recommended for all non-corporate entities except
Limited Liability Partnerships which are corporate form of entities. The Technical
Guide also includes Illustrative formats for Financial Statements for the guidance
of the stakeholders.

The Technical Guide should be read in conjunction with the relevant Accounting
Standards.
I would like to convey my sincere gratitude to our Honourable President, CA. (Dr.)
Debashis Mitra and Vice-President, CA. Aniket Sunil Talati, for providing us the
opportunity of bringing out this Technical Guide. I am also thankful to Vice
Chairman, ASB, CA. Abhay Chhajed, for his support in the effective functioning of
the ASB. I would also like to thank all the members of the ASB for their valuable
contribution to various endeavours of the ASB.

I wish to place on record my sincere appreciation to CA. Vishal Doshi for leading
the Study Group for the preparation and finalisation of this Technical Guide. I also
acknowledge the contributions of the members of the Study Group comprising CA.
Padmashree Crasto, CA. Dimpy Khandhar, CA. Vivek Newatia, CA. Rajesh Kumar
Jain, CA. Manoj Kumar Mittal, CA. Kunal Kapoor, CA. Mukesh Chhajed, CA.
Madhu Sudan Ladha, CA. Asha Taneja, CA. Shreya Jain and CA. Nitika Khiwani
for preparing this Technical Guide.

I would like to acknowledge the sincere efforts and support of CA. S.N. Gupta,
Joint Director, Technical Directorate, CA. Parminder Kaur, Secretary, ASB, CA.
Sonia Minocha, Deputy Secretary, ASB and CA. Ekta Gurnasinghani, Consultant,
ASB, in the development of this Technical Guide.

I am sure that this Technical Guide would be of enormous use and interest to the
stakeholders. I strongly recommend the non-corporate entities to follow these
formats for formulation of their financial statements. I also urge other stakeholders
and auditors of such entities’ financial statements to ensure that these formats are
followed in preparation of financial statements of non-corporate entities.

New Delhi CA. Pramod Jain

June 01, 2022 Chairman
Accounting Standards Board
 Contents

1. Chapter I – Background 1

2. Chapter II – Financial Statements 6

3. Chapter III – Balance Sheet 8

4. Chapter IV – Statement of Profit and Loss 9

5. Chapter V – Cash Flow Statements 10

6. Chapter VI – Formats of Financial Statements 12

for Non-corporate Entities

7. Appendices

Appendix A – Announcement for Criteria for 30

classification of Non-company entities for
applicability of Accounting Standards

Appendix B – Illustrative Financial Statements 42

 Chapter I
Background

A financial reporting system supported by strong governance, high quality standards, and
firm regulatory framework is the key to economic development. The sound financial
reporting emphasises the trust that investors and other stakeholders like lenders,
grantors, etc. place in financial reporting information. Thus, it is very essential that
financial reporting of an entity should be comparable, transparent, complete and
unbiased.
Accounting Standards contain wholesome principles of accounting and can be viewed as
standardised language of business to communicate high quality information in financial
statements based on principles of transparency, consistency and also comparability and
reliability. Accounting standards are a set of principles which entities follow while
preparing the financial statements providing a standardised way of describing the entity’s
financial position and financial performance.

The objective of this Technical Guide is to deal with applicability of Accounting Standards
to the non-corporate entities and to prescribe format of the financial statements for the
Non-Corporate entities. It may be clarified that Limited Liability Partnerships (LLPs) form
of entities are scoped out of this Technical Guide.

Non-Corporate Entities – A wide spectrum of entities

All Business or Professional Entities, other than Companies incorporated under
Companies Act and Limited Liability Partnerships incorporated under Limited Liability
Partnership Act are considered to be Non-Corporate entities. Corporate or Company form
of legal structure is the most commonly used one for commercial or business activities.
Entities for business, commercial or other economic and social activities can be
established under variety of structures and the most common structures are as follows:
(a) Sole proprietorship firms

(b) Hindu Undivided Family

(c) Partnership Firms

i) Registered Partnership Firms
ii) Unregistered Partnership Firms

1
 (d) Association of Persons
i) Partnership firms not covered above
ii) Body of Individuals
iii) Resident welfare Association

(e) Society registered under any law for the time being in force

(f) Trust (private or public) registered or unregistered under any law for the time
being in force.

(g) Statutory Corporations, Autonomous bodies and Authorities

(h) Any form of organisation that is engaged fully or partially in any Business or
Professional activities unless their activities are fully charitable in nature.

This Technical Guide is relevant for the purpose of preparation of the financial statements
of the above mentioned Non-Corporate Entities unless any formats/principles are
specifically prescribed by the relevant Statute or Regulator or any Authority, e.g., formats
have been prescribed for Trusts under Maharashtra Public Trust Rules, 1951, Guidance
has been specifically given by ICAI (e.g., Educational Institutions, Political Parties, etc.).

Financial information needs of Non-Corporate Entities

In case of corporate entities, the users or primary users of financial information are
shareholders, regulators, potential investors, lenders, creditors and other stakeholders.
These users need financial information of the reporting entities to make various economic
decisions. Formats for financial statements of companies are specifically provided under
Schedule III of the Companies Act, 2013.

In case of the Non-Corporate entities, considering the wide spectrum of role and
responsibilities performed by them, undoubtedly there are wide users/stakeholders of the
financial information of these Non-Corporate entities. The users could be present and
potential investors, employees, lenders, suppliers, other trade creditors, customers.

Further, in case of some Non-Corporate entities the users of financial information are
similar to the corporate sector, e.g., many statutory corporations or authorities raise
substantial financial resources from capital and financial markets. Therefore, the investors
or lenders of such Non-Corporate entities have similar financial information needs as that

2
of corporate investors. Currently, such Non-Corporate entities do not have standardised
formats for presentation of financial statements.

Extent or size of economic and financial activities of the Non-Corporate entities have
grown over the period of time. In recent times, Indian government has initiated many steps
to create or upgrade infrastructure for public services such as roads, bridges, tunnels,
airports, hospitals, water distribution facilities, energy supply, telecommunication networks
and educational institutions. While there is push for higher private participation through
‘Public-Private-Partnership’ model, it has also led to substantial increase in the number of
Non-Corporate entities in private sector as well as in government sector and increase in
size of financial activities of these Non-Corporate entities.

Financial Statements form the backbone for financial planning, analysis, benchmarking
and decision making. If Non-Corporate entities follow high quality reporting framework, its
financial statements faithfully represent its transactions and are more reliable, complete
and comparable.

APPLICABILITY OF ACCOUNTING STANDARDS

In view of the above, Accounting Standards apply in respect of any entity engaged in
commercial, industrial or business activities. Exclusion of an entity from the applicability of
the Accounting Standards is permissible only if no part of the activity of such entity is
commercial, industrial or business in nature. Even if where a very small proportion of the
activities of an entity were considered to be commercial, industrial or business in nature,
the Accounting Standards would apply to all its activities including those, which are not
commercial, industrial or business in nature.

At present, there are three sets of Accounting Standards:

(i) Indian Accounting Standards (Ind AS) for specified class of companies;
(ii) Accounting Standards (AS) notified under Companies (Accounting Standards) Rules,
2021, for companies other than those following Ind AS;
(iii) Accounting Standards (AS) prescribed by ICAI for entities other than companies.

(i) Indian Accounting Standards (Ind AS) for Companies

In view of global developments and importance of integrating local Accounting

Standards with global financial reporting standards, keeping in view the Indian legal
and economic scenario, IFRS converged Ind AS have been notified and are
applicable to all listed companies and Non-Banking Financial Companies (NBFCs)
3
 and to unlisted companies and unlisted NBFCs with networth of INR 250 crores or
more. Ind AS are also applicable to holding/subsidiaries/joint ventures/associates
companies of such companies.

(ii) Accounting Standards (AS) notified under Companies (Accounting Standards)

Rules, 2021 for companies other than those following Ind AS

Companies that are not covered under Ind AS, as given in paragraph above, are
required to apply Accounting Standards (AS) notified under the Companies Act as
Companies (Accounting Standards) Rules, 2021. As on date, Accounting Standards
(AS) 1 to 5, 7 and 9 to 29 are effective. As per the Companies (Accounting
Standards) Rules, 2021, Small and Medium Companies (SMCs) are given certain
exemptions/relaxations.

(iii) Accounting Standards (AS) prescribed by ICAI for entities other than
companies.

ICAI, keeping in view the fact that the Accounting Standards (AS) notified under
Companies Act will only be applicable to the companies, announced the scheme for
applicability of Accounting Standards (AS) issued by ICAI to non-company entities.
In this regard, the criteria for classification of non-company entities as decided by
ICAI is given in Appendix A.
It may be noted that for the purpose of applicability of Accounting Standards (AS),
entities are classified into four categories viz., Level I, Level II, Level III and Level IV
non-company entities. Level I non-company entities are required to comply fully with
all the AS. Level IV, Level III and Level II non-company entities are considered as
Micro, Small and Medium Sized Entity (MSMEs) that have been granted certain
exemptions/relaxations by the ICAI. The applicability of AS and
exemptions/relaxations thereof for MSMEs are given in Appendix A.
Compliance with Accounting Standards

Apart from requirements to comply with AS, as may be prescribed in relevant standards,
the ‘Preface to the Statements of Accounting Standards’, issued by the ICAI, lays down a
few critical principles, which are reproduced below, regarding compliance with Accounting
Standards:

“6.1 The Accounting Standards will be mandatory from the respective date(s)
mentioned in the Accounting Standard(s). The mandatory status of an Accounting
4
 Standard implies that while discharging their attest functions, it will be the duty of the
members of the Institute to examine whether the Accounting Standard is complied with
in the presentation of financial statements covered by their audit. In the event of any
deviation from the Accounting Standard, it will be their duty to make adequate
disclosures in their audit reports so that the users of financial statements may be
aware of such deviation.

6.2 Ensuring compliance with the Accounting Standards while preparing the financial
statements is the responsibility of the management of the enterprise. Statutes
governing certain enterprises require of the enterprises that the financial statements
should be prepared in compliance with the Accounting Standards, e.g., the Companies
Act, 19561 (section 211), and the Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance Companies)
Regulations, 2000.

6.3 Financial Statements cannot be described as complying with the Accounting

Standards unless they comply with all the requirements of each applicable Standard.”

In view of the above, the auditors are required to examine compliance with AS
while discharging their attest function.

Audit of Financial Statements

For non-corporate entities, if audit of financial statements is required under a statute,

the Auditor shall conduct the audit and issue the Auditors’ Report in accordance with
the Standards on Auditing issued by the ICAI. For the purpose of tax audit, the auditor
should issue a report taking into consideration the "Guidance Note on Tax Audit under
Section 44AB of the Income-tax Act, 1961” issued by the ICAI.

In case of tax audit under section 44AB of the Income-tax Act, 1961, it is pertinent to
note that the auditor is required to conduct audit of financial statements to give a true
and fair view thereon and report the same in Form 3CB. Along with the Report in
Form 3CB, they have to state true and correct view of particulars annexed in Form
3CD.

1 With regard to the reference to Companies Act, 1956, relevant section of Companies Act, 2013,
shall be referred.

5
 Chapter II
Financial Statements

What Are Financial Statements?

Financial statements form part of the process of financial reporting. A complete set of
financial statements normally includes:
 a balance sheet,
 a statement of profit and loss,
 a cash flow statement and
 those notes and other statements and explanatory material that are an integral part
of the financial statements.

The notes also include significant accounting policies as required by applicable

Accounting Standards. They may also include supplementary schedules and information
based on or derived from, and expected to be read with, such statements. The objective
of financial statements is to provide information about the financial position, performance
and cash flows of an entity.

Few critical principles prescribed in the ‘Framework for the preparation and presentation
of Financial Statements’, issued by the ICAI, are reproduced below:

Financial Position, Performance and Cash Flows

15. The economic decisions that are taken by users of financial statements require an
evaluation of the ability of an entity to generate cash and cash equivalents and of the
timing and certainty of their generation. This ability ultimately determines, for example, the
capacity of an entity to pay its employees and suppliers, meet interest payments, repay
loans, and make distributions to its owners. Users are better able to evaluate this ability to
generate cash and cash equivalents if they are provided with information that focuses on
the financial position, performance and cash flows of an entity.

16. The financial position of an entity is affected by the economic resources it controls,
its financial structure, its liquidity and solvency, and its capacity to adapt to changes in the
environment in which it operates. Information about the economic resources controlled by
the entity and its capacity in the past to alter these resources is useful in predicting the
ability of the entity to generate cash and cash equivalents in the future. Information about
financial structure is useful in predicting future borrowing needs and how future profits and
6
cash flows will be distributed among those with an interest in the entity; it is also useful in
predicting how successful the entity is likely to be in raising further finance. Information
about liquidity and solvency is useful in predicting the ability of the entity to meet its
financial commitments as they fall due. Liquidity refers to the availability of cash in the
near future to meet financial commitments over this period. Solvency refers to the
availability of cash over the longer term to meet financial commitments as they fall due.

17. Information about the performance of an entity, in particular its profitability, is

required in order to assess potential changes in the economic resources that it is likely to
control in the future. Information about variability of performance is important in this
respect. Information about performance is useful in predicting the capacity of the entity to
generate cash flows from its existing resource base. It is also useful in forming
judgements about the effectiveness with which the entity might employ additional
resources.

18. Information concerning cash flows of an entity is useful in order to evaluate its
investing, financing and operating activities during the reporting period. This information is
useful in providing the users with a basis to assess the ability of the entity to generate
cash and cash equivalents and the needs of the entity to utilise those cash flows.

19. Information about financial position is primarily provided in a balance sheet.

Information about performance is primarily provided in a statement of profit and loss.
Information about cash flows is provided in the financial statements by means of a cash
flow statement.

20. The component parts of the financial statements are interrelated because they
reflect different aspects of the same transactions or other events. Although each
statement provides information that is different from the others, none is likely to serve only
a single purpose nor to provide all the information necessary for particular needs of users.

Notes and Supplementary Schedules

21. The financial statements also contain notes and supplementary schedules and other
information. For example, they may contain additional information that is relevant to the
needs of users about the items in the balance sheet and statement of profit and loss. They
may include disclosures about the risks and uncertainties affecting the entity and any
resources and obligations not recognised in the balance sheet (such as mineral reserves).
Information about business and geographical segments and the effect of changing prices
on the entity may also be provided in the form of supplementary information.
7
 Chapter III
Balance Sheet
Information about financial position is provided through balance sheet. The elements
directly related to the measurement of financial position in the balance sheet are assets,
liabilities and equity.

Items Included in the Balance Sheet

As per the Framework for the Preparation and Presentation of Financial Statements,
issued by the ICAI:

49. The elements directly related to the measurement of financial position are assets,
liabilities and equity. These are defined as follows:

(a) An asset is a resource controlled by the enterprise as a result of past events from
which future economic benefits are expected to flow to the enterprise.

(b) A liability is a present obligation of the enterprise arising from past events, the
settlement of which is expected to result in an outflow from the enterprise of
resources embodying economic benefits.

(c) Equity is the residual interest in the assets of the enterprise after deducting all its
liabilities.

The definitions of an asset and a liability identify their essential features but do not attempt
to specify the criteria that need to be met before they are recognised in the balance sheet.
Thus, the items are recognised as assets or liabilities in the balance sheet if they satisfy
the criteria for recognition as specified in the relevant Accounting Standards and, if there
is no specific Accounting Standard, as specified in the said Framework.

8
 Chapter IV
Statement of Profit and Loss
Statement of Profit and Loss is one of the three important elements of the financial
statements used for reporting an entity’s financial performance over a specific accounting
period. It is also known as the ‘Income Statement’ or ‘Profit & Loss Account’. The
Statement of Profit and Loss primarily focuses on an entity’s income and expenses during
a particular period.

As per the Framework for the Preparation and Presentation of Financial Statements ,
issued by the ICAI:

68. Profit is frequently used as a measure of performance or as the basis for other
measures, such as return on investment or earnings per share. The elements directly
related to the measurement of profit are income and expenses. The recognition and
measurement of income and expenses, and hence profit, depends in part on the concepts
of capital and capital maintenance used by the enterprise in preparing its financial
statements.

69. Income and expenses are defined in the Framework as follows:

(a) Income is increase in economic benefits during the accounting period in the form of
inflows or enhancements of assets or decreases of liabilities that result in increases in
equity, other than those relating to contributions from equity participants.

(b) Expenses are decreases in economic benefits during the accounting period in the form
of outflows or depletions of assets or incurrences of liabilities that result in decreases in
equity, other than those relating to distributions to equity participants.

The definitions of income and expenses identify their essential features but do not attempt
to specify the criteria that need to be met before they are recognised in the statement of
profit and loss. Criteria for recognition of income and expenses are prescribed in relevant
Accounting Standards and, if there is no specific Accounting Standard dealing with the
item, the recognition criteria prescribed in the Framework may be referred.

9
 Chapter V
Cash Flow Statements

As per Accounting Standard (AS) 3, Cash Flow Statements, a cash flow statement, when
used in conjunction with the other financial statements, provides information that enables
users to evaluate the changes in net assets of an enterprise, its financial structure
(including its liquidity and solvency) and its ability to affect the amounts and timing of cash
flows in order to adapt to changing circumstances and opportunities. Cash flow
information is useful in assessing the ability of the enterprise to generate cash and cash
equivalents and enables users to develop models to assess and compare the present
value of the future cash flows of different enterprises. It also enhances the comparability
of the reporting of operating performance by different enterprises because it eliminates the
effects of using different accounting treatments for the same transactions and events.

For non-company entities, AS 3 provides that financial statements of Micro, Small and
Medium Sized Enterprises (Level IV, Level III and Level II non-company entities), may not
include cash flow statements, i.e., preparation of cash flow statement is not mandatory.
Such entities are, however, encouraged to comply with this standard.

The cash flow statement reconciles the income statement with the balance sheet in three
major business activities. The three components of the cash flow statement are listed
below.

a) Operating Activities
Operating activities are the principal revenue-producing activities of the enterprise
and other activities that are not investing or financing activities. The operating
activities in the Cash Flow Statement include any sources and uses of cash from
running the business and selling its products or services. Cash flow from operations
includes any changes made in cash, accounts receivable, depreciation, inventory,
and accounts payable. These transactions also include wages, income tax
payments, interest payments, rent, and cash receipts from the sale of a product or
service.

b) Investing Activities
Investing activities are the acquisition and disposal of long-term assets and other
investments not included in cash equivalents. Investing activities include any
sources and uses of cash from an entity’s investments into the long-term future of
the entity. Cash payments to acquire assets or cash receipts from disposal of assets,
10
 cash advances and loans made to third parties or cash receipts from repayment of
advances and loans made to third parties are included in this category.

c) Financing Activities
Financing activities are activities that result in changes in the size and composition of
the owners’ capital and borrowings of the enterprise. Cash flow from financing
activities include the sources of cash from investors or banks, as well as the uses of
cash paid to shareholders. Financing activities include debt issuance, loans and
repayment of debt.

11
 Chapter VI
Formats of Financial Statements for Non-corporate Entities
The financial statements should give true and fair view of the state of affairs of the entity,
comply with the applicable Accounting Standards and are recommended in the form as
provided hereafter.

GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET

AND STATEMENT OF PROFIT AND LOSS OF A NON-CORPORATE ENTITY
1. These formats are recommended for preparation of Balance Sheet and
Statement of Profit and Loss of a non-corporate entity. Where compliance with
the requirements of the relevant statute including Accounting Standards as
applicable to the Non-Corporate entity require any change in treatment or
disclosure including addition, amendment, substitution or deletion in the head
or sub-head or any changes, inter se, in the financial statements or statements
forming part thereof, the same shall be made and the formats shall be modified
accordingly.
2. The disclosure requirements recommended in the formats are in addition to
and not in substitution of the disclosure requirements specified in the
Accounting Standards issued by the Institute of Chartered Accountants of India.
Additional disclosures specified in the Accounting Standards shall be made in
the notes to accounts or by way of additional statement unless required to be
disclosed on the face of the Financial Statements. Similarly, all other
disclosures as required by the relevant statute shall be made in the notes to
accounts in addition to the requirements set out in these formats.
3. (i) Notes to accounts may contain information in addition to that presented in the
Financial Statements and may provide where required (a) narrative
descriptions or disaggregations of items recognised in those statements; and
(b) information about items that do not qualify for recognition in those
statements.
(ii) Each item on the face of the Balance Sheet and Statement of Profit and Loss
shall be cross-referenced to any related information in the notes to accounts. In
preparing the Financial Statements including the notes to accounts, a balance
shall be maintained between providing excessive detail that may not assist
users of financial statements and not providing important information as a
result of too much aggregation.

12
4. (i) Depending upon the Total Income of the Non-Corporate entity, the figures
appearing in the Financial Statements may be rounded off as given below:—
Total Income Rounding off
(a) less than one hundred To the nearest hundreds, thousands, lakhs
crore rupees or millions, or decimals thereof.
(b) one hundred crore To the nearest lakhs, millions or crores, or
rupees or more decimals thereof.

(ii) Once a unit of measurement is used, it should be used uniformly in the

Financial Statements.
5. Except in the case of the first Financial Statements prepared by the Non-
Corporate entity (after its incorporation) the corresponding amounts
(comparatives) for the immediately preceding reporting period for all items
shown in the Financial Statements including notes shall also be given.
6. For the purpose of this format, the terms used herein shall be as per the
applicable Accounting Standards.
Note:—This part recommends the minimum requirements for disclosure on
the face of the Balance Sheet, and the Statement of Profit and Loss (hereinafter
referred to as “Financial Statements” for the purpose of the Format) and Notes. Line
items, sub-line items and sub-totals shall be presented as an addition or substitution
on the face of the Financial Statements when such presentation is relevant to an
understanding of the Non-Corporate entity’s financial position or performance or to
cater to industry/sector-specific disclosure requirements or when required for
compliance with the amendments to the relevant statutes or under the Accounting
Standards.

13
 PART I – Form of BALANCE SHEET
Name of the Non-Corporate Entity…………….
Balance Sheet as at ………………
(Rupees in…………)
Particulars Note Figures as at the Figures as at the
No end of (Current end of (Previous
reporting period) reporting period)
(in Rs.) (in Rs.)
__________ __________
(DD/MM/YYYY) (DD/MM/YYYY)
1 2 3 4
I. EQUITY AND
LIABILITIES
(1) Owners’ Fund
(a)Owners Capital Account
(b)Reserves and surplus
(2) Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities
(Net)
(c) Other Long term
liabilities
(d) Long-term provisions
(3) Current liabilities
(a) Short-term borrowings
(b) Trade payables:-
(A) total outstanding dues
of micro, small and
medium enterprises
and
(B) total outstanding dues
of creditors other than
14
 micro, small and
medium enterprises .
(c) Other current liabilities
(d) Short-term provisions
TOTAL
II. ASSETS
(1) Non-Current Assets
(a) Property, Plant and
Equipment and
Intangible assets
(i) Property, Plant and
Equipment
(ii) Intangible assets
(iii) Capital work-in-
progress
(iv) Intangible assets
under development
(b) Non-current investment
(c) Deferred tax assets
(net)
(d) Long-term loans and
advances
(e) Other non-current
assets
(2) Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and bank
balances
(e) Short-term loans and
advances
15
 (f) Other current assets
TOTAL
See accompanying notes which form part of the financial statements

Notes
GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET
1. An asset shall be classified as current when it satisfies any of the
following criteria:
(a) it is expected to be realized in, or is intended for sale or
consumption in, the company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realized within twelve months after the
reporting date; or
(d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date.
All other assets shall be classified as non-current.
2. An operating cycle is the time between the acquisition of assets for
processing and their realization in cash or cash equivalents. Where the
normal operating cycle cannot be identified, it is assumed to have a
duration of 12 months.
3. A liability shall be classified as current when it satisfies any of the
following criteria:
(a) it is expected to be settled in the company’s normal operating
cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date;
or
(d) the Non-Corporate entity does not have an unconditional right to
defer settlement of the liability for at least twelve months after the
reporting date. Terms of a liability that could, at the option of the
16
 counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
All other liabilities shall be classified as non-current.
4. A receivable shall be classified as a ‘trade receivable’ if it is in respect of
the amount due on account of goods sold or services rendered in the
normal course of business.
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.
6. A Non-Corporate entity may disclose the following in the Notes to
Accounts:
A. Owners Funds
For each owner following items for the year to be disclosed separately:
(a) opening balance;
(b) capital Introduced/Contributed during the year;
(c) remuneration for the year;
(d) interest for the year;
(e) withdrawals during the year;
(f) share of profit or loss for the year (share in % and amount);
(g) closing balance.
B. Reserves and Surplus
(i) Reserves and Surplus may be classified as:
(a) Capital Reserves;
(b) Revaluation Reserve;
(c) Other Reserves – (specify the nature and purpose of each reserve
and the amount in respect thereof);
(d) Undistributed Surplus i.e. balance in Statement of Profit and Loss.
(ii) Debit balance of statement of profit and loss shall be shown as a
negative figure under the head ‘Undistributed Surplus’. Similarly, the
17
 balance of ‘Reserves and Surplus’, after adjusting negative balance of
surplus, if any, shall be shown under the head ‘Reserves and Surplus’
even if the resulting figure is in the negative.

C. Long-Term Borrowings
(i) Long-term borrowings may be classified as:
(a) Term loans
 From banks
 From other parties
(c) Deferred payment liabilities.
(d) Loans and advances from related parties.
(e) Long term maturities of finance lease obligations
(f) Other loans and advances (specify nature).
(ii) Borrowings may further be sub-classified as secured and unsecured.
Nature of security shall be specified separately in each case.
(iii) Where loans have been guaranteed by partners/proprietor/owners or
others, the aggregate amount of such loans under each head shall be
disclosed.
(iv) Terms of repayment of term loans and other loans may be stated.
D. Long-term provisions
The amounts may be classified as:
(a) Provision for employee benefits.
(b) Others (specify nature).
E. Short-term borrowings
(i) Short-term borrowings may be classified as:
(a) Loans repayable on demand
 From banks
 From other parties

18
 (b) Loans and advances from related parties.
(b) Other loans and advances (specify nature).
(ii) Borrowings may further be sub-classified as secured and unsecured.
Nature of security shall be specified separately in each case.
(iii) Where loans have been guaranteed by partners/proprietor/ owners or
others, the aggregate amount of such loans under each head shall be
disclosed.
(iv) current maturities of Long term borrowings may be disclosed separately.

F. Trade Payables
The following details relating to Micro, Small and Medium Enterprises shall be
disclosed in the notes:-
(a) the principal amount and the interest due thereon (to be shown
separately) remaining unpaid to any supplier at the end of each
accounting year;
(b) the amount of interest paid by the buyer in terms of section 16 of the
Micro, Small and Medium Enterprises Development Act, 2006, along with
the amount of the payment made to the supplier beyond the appointed
day during each accounting year;
(c) the amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the Micro, Small and
Medium Enterprises Development Act, 2006;
(d) the amount of interest accrued and remaining unpaid at the end of each
accounting year; and
(e) the amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues above are
actually paid to the small enterprise, for the purpose of disallowance of a
deductible expenditure under section 23 of the Micro, Small and Medium
Enterprises Development Act, 2006.
Explanation.-The terms 'appointed day', 'buyer',' enterprise', 'micro enterprise',
'small enterprise' and 'supplier', shall have the same meaning assigned to
19
those under clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of
the Micro, Small and Medium Enterprises Development Act, 2006.

G. Other current liabilities

The amounts may be classified as:
(a) Current maturities of finance lease obligations;
(b) Interest accrued but not due on borrowings;
(c) Interest accrued and due on borrowings;
(d) Income received in advance;
(e) Other payables (specify nature);
H. Short-term provisions
The amounts may be classified as:
(a) Provision for employee benefits.
(b) Others (specify nature).
I. Property, Plant and Equipment
(i) Classification may be given as:
(a) Land.
(b) Buildings.
(c) Plant and Equipment.
(d) Furniture and Fixtures.
(e) Vehicles.
(f) Office equipment.
(g) Others (specify nature).
(ii) Assets under lease may be separately specified under each class of
asset.
(iii) A reconciliation of the gross and net carrying amounts of each class of
assets at the beginning and end of the reporting period showing
additions, disposals acquisitions through business combinations, amount
20
 of change due to revaluation (if change is 10% or more in the aggregate
of the net carrying value of each class of Property, Plant and Equipment)
and other adjustments and the related depreciation and impairment
losses/reversals shall be disclosed separately.
J. Intangible assets
(i) Classification may be given as:
(a) Goodwill.
(b) Brands /trademarks.
(c) Computer software.
(d) Mastheads and publishing titles.
(e) Mining rights.
(f) Copyrights, and patents and other intellectual property rights,
services and operating rights.
(g) Recipes, formulae, models, designs and prototypes.
(h) Licenses and franchise.
(i) Others (specify nature).
(ii) A reconciliation of the gross and net carrying amounts of each class of
assets at the beginning and end of the reporting period showing
additions, disposals, acquisitions through business combinations,
amount of change due to revaluation (if change is 10% or more in the
aggregate of the net carrying value of each class of intangible assets)
and other adjustments and the related amortisation and impairment
losses or reversals shall be disclosed separately.
K. Non-current investments
(i) Non-current investments shall be classified as trade investments and
other investments and further classified as:
(a) Investment property;
(b) Investments in Equity Instruments;
(c) Investments in preference shares;

21
 (d) Investments in Government or trust securities;
(e) Investments in debentures or bonds;
(f) Investments in Mutual Funds;
(g) Investments in partnership firms;
(h) Other non-current investments (specify nature)
Under each classification, details may be given of names of the entities
(indicating separately whether such entities are joint ventures or
controlled special purpose entities) in whom investments have been
made (showing separately investments which are partly-paid). In regard
to investments in the capital of partnership firms, the names of the firms
(with the names of all their partners, total capital and the shares of each
partner) may be given.
(ii) Investments carried at other than at cost should be separately stated
specifying the basis for valuation thereof.
(iii) The following shall also be disclosed:
(a) Aggregate amount of quoted investments and market value
thereof;
(b) Aggregate amount of unquoted investments;
(c) Aggregate provision for diminution in value of investments.

L. Long-term loans and advances

(i) Long-term loans and advances may be classified as:
(a) Capital Advances;
(b) Loans and advances to related parties (giving details thereof);
(c) Other loans and advances (specify nature).
(ii) The above may also be separately sub-classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.

22
(iii) Allowance for bad and doubtful loans and advances shall be disclosed
separately.
M. Other non-current assets
Other non-current assets may be classified as:
(i) Security Deposits;
(ii) Bank deposits with more than 12 months maturity;
(ii) Others (specify nature).

N. Current Investments
(i) Current investments shall be classified as:
(a) Investments in Equity Instruments;
(b) Investment in Preference Shares;
(c) Investments in government or trust securities;
(d) Investments in debentures or bonds;
(e) Investments in Mutual Funds;
(f) Investments in partnership firms;
(g) Other investments (specify nature).
Under each classification, details may be given of names of the entities
(indicating separately whether such entities are joint ventures or
controlled special purpose entities) in whom investments have been
made (showing separately investments which are partly-paid). In regard
to investments in the capital of partnership firms, the names of the firms
(with the names of all their partners, total capital and the shares of each
partner) may be given.
(ii) The following shall also be disclosed:
(a) The basis of valuation of individual investments;
(b) Aggregate amount of quoted investments and market value
thereof;
(c) Aggregate amount of unquoted investments;
23
 (d) Aggregate provision made for diminution in value of investments.
O. Inventories
(i) Inventories shall be classified as:
(a) Raw materials;
(b) Work-in-progress;
(c) Finished goods;
(d) Stock-in-trade (in respect of goods acquired for trading);
(e) Stores and spares;
(f) Loose tools;
(g) Others (specify nature).
(ii) Goods-in-transit may be disclosed under the relevant sub-head of
inventories.
(iii) Mode of valuation may be stated.

P. Trade Receivables
(i) Aggregate amount of trade receivables outstanding for a period exceeding
six months from the date they are due for receipt may be stated separately.
(ii) Trade receivables may be sub-classified as:
(a) Secured, considered good;
(b) Unsecured considered good;
(c) Doubtful.
(iii) Allowance for bad and doubtful debts shall be disclosed separately.
Q. Cash and bank balances
(i) Cash and cash equivalents shall be classified as:
(a) Balances with banks;
(b) Cheques, drafts on hand;
(c) Cash on hand;
24
 (d) Others (specify nature).
(ii) Other bank balances shall be classified as
(a) Bank Deposits - Earmarked balances with banks.
(b) Margin money or deposits under lien shall be disclosed
separately.
(c) Bank deposits with original maturity for more than 3 months but less
than 12 months from reporting date.
(d) others (specify nature)
R. Short-term loans and advances
(i) Short-term loans and advances may be classified as:
(a) Loans and advances to related parties (giving details thereof);
(b) Others (specify nature).
(ii) The above may also be sub-classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.
(iii) Allowance for bad and doubtful loans and advances may be disclosed
under the relevant heads separately.
S. Other current assets (specify nature).
This is an all-inclusive heading, which incorporates current assets that do not
fit into any other asset categories.
T. Contingent liabilities (to the extent not provided for)
(i) Contingent liabilities may be classified as:
(a) Claims against the non-corporate entity not acknowledged as debt;
(b) Guarantees;
(c) Other money for which the non-corporate entity is contingently
liable.

25
 PART II – Form of STATEMENT OF PROFIT AND LOSS
Name of the Non-Corporate Entity…………………….
Statement of Profit and Loss for the year ended ………………………
(Rupees in…………)
Particulars Note Figures for the Figures for the
current previous reporting
reporting period period (in)
(in) From__________
From ________ (DD/MM/YYYY)
(DD/MM/YYYY) To____________
To __________ (DD/MM/YYYY)
(DD/MM/YYYY)
1 2 3 4
I. Revenue from xxx xxx
operations
II. Other income xxx xxx
III. Total Income (I + II) xxx xxx
IV. Expenses
(a) Cost of Goods Sold
(b) Employee benefits xxx xxx
expense
(c) Depreciation and xxx xxx
amortization
expense
(d) Finance Cost xxx xxx
(e) Other expenses xxx xxx
Total expenses xxx xxx
V Profit before xxx xxx
exceptional and
extraordinary items
26
 and tax (III-IV)
VI Exceptional items xxx xxx
VII Profit before xxx xxx
extraordinary items
and tax (V - VI)
VIII Extraordinary Items xxx xxx
IX Profit before tax (VII- xxx xxx
VIII)
X Tax expense:
(i) Current tax xxx xxx
(ii) Deferred tax xxx xxx
XI Profit (Loss) for the xxx xxx
period from
continuing operations
(IX-X)
XII Profit/(loss) from xxx xxx
discontinuing
operations
XIII Tax expense of xxx xxx
discontinuing
operations
XIV Profit/(loss) from xxx xxx
Discontinuing
operations (after tax)
(XII-XIII)
XV Profit/ (Loss) (XI + xxx xxx
XIV)
See accompanying notes which form part of the financial statements

27
General Instructions for Preparation of Statement of Profit and Loss
1. The provisions of this Part may be applied to the income and
expenditure account in like manner as they apply to a statement of profit and
loss.

2. (A) Revenue from operations may disclose separately in the notes revenue from—
(a) Sale of products;
(b) Sale of services;
(c) Grants or donations received;
(d) Other operating revenues;
(e) Less: Excise duty

(B) In respect of a finance Non-Corporate entity, revenue from operations may

include revenue from—

(a) Interest; and

(b) Other financial services.

3. Cost of Goods Sold

Costs of Goods Sold shall be classified as:

(a) Cost of materials consumed;

(b) Purchases of Stock-in-Trade;
(c) Changes in inventories of finished goods;
(d) Work-in-progress and Stock-in-Trade.

4. Finance Costs
Finance costs may be classified as:
(a) Interest expense;
(b) Other borrowing costs;
(c) Applicable net gain/loss on foreign currency transactions and translation.

28
5. Other income
Other income shall be classified as:
(a) Interest Income;
(b) Dividend Income;
(c) Net gain/loss on sale of investments;
(d) Other non-operating income (net of expenses directly attributable to such
income).
6. Following may be disclosed by way of notes 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) staff welfare expenses;
(b) Any item of income or expenditure which exceeds one per cent of the revenue
from operations or Rs.1,00,000 whichever is higher;
(c) Adjustments to the carrying amount of investments;
(d) Net gain or loss on foreign currency transaction and translation (other than
considered as finance cost);
(e) Details of items of exceptional and extraordinary nature;
(f) Prior period items.

(ii) 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.

29
 Appendix A

Announcement

Criteria for classification of Non-company entities for applicability

of Accounting Standards
The Council, at its 400th meeting, held on March 18-19, 2021, considered the matter
relating to applicability of Accounting Standards issued by The Institute of Chartered
Accountants of India (ICAI), to Non-company entities (Enterprises). The scheme for
applicability of Accounting Standards to Non-company entities shall come into effect in
respect of accounting periods commencing on or after April 1, 2020.

1. For the purpose of applicability of Accounting Standards, Non-company entities are

classified into four categories, viz., Level I, Level II, Level III and Level IV.
Level I entities are large size entities, Level II entities are medium size entities,
Level III entities are small size entities and Level IV entities are micro entities. Level
IV, Level III and Level II entities are referred to as Micro, Small and Medium size
entities (MSMEs). The criteria for classification of Non-company entities into
different levels are given in Annexure 1.

The terms ‘Small and Medium Enterprise’ and ‘SME’ used in Accounting Standards
shall be read as ‘Micro, Small and Medium size entity’ and ‘MSME’ respectively.

2. Level I entities are required to comply in full with all the Accounting Standards.
3. Certain exemptions/relaxations have been provided to Level II, Level III and Level
IV Non-company entities. Applicability of Accounting Standards and
exemptions/relaxations to such entities are given in Annexure 2.
4. This Announcement supersedes the earlier Announcement of the ICAI on
‘Harmonisation of various differences between the Accounting Standards
issued by the ICAI and the Accounting Standards notified by the Central
Government’ issued in February 2008, to the extent it prescribes the criteria for
classification of Non-company entities (Non-corporate entities) and applicability of
Accounting Standards to non-company entities, and the Announcement ‘Revision
in the criteria for classifying Level II non-corporate entities’ issued in January
2013.
30
5. This Announcement is not relevant for Non-company entities who may be required
to follow Ind AS as per relevant regulatory requirements applicable to such entities.
6. The changes arising from this Announcement will be incorporated in the
Accounting Standards while publishing the updated Compendium of Accounting
Standards.

31
 Annexure 1
Criteria for classification of Non-company Entities as decided
by the Institute of Chartered Accountants of India
Level I Entities
Non-company entities which fall in any one or more of the following categories, at the
end of the relevant accounting period, are classified as Level I entities:
(i) Entities whose securities are listed or are in the process of listing on any stock
exchange, whether in India or outside India.
(ii) Banks (including co-operative banks), financial institutions or entities carrying on
insurance business.
(iii) All entities engaged in commercial, industrial or business activities, whose turnover
(excluding other income) exceeds rupees two-fifty crore in the immediately
preceding accounting year.
(iv) All entities engaged in commercial, industrial or business activities having
borrowings (including public deposits) in excess of rupees fifty crore at any time
during the immediately preceding accounting year.
(v) Holding and subsidiary entities of any one of the above.
Level II Entities
Non-company entities which are not Level I entities but fall in any one or more of the
following categories are classified as Level II entities:
(i) All entities engaged in commercial, industrial or business activities, whose turnover
(excluding other income) exceeds rupees fifty crore but does not exceed rupees
two-fifty crore in the immediately preceding accounting year.
(ii) All entities engaged in commercial, industrial or business activities having
borrowings (including public deposits) in excess of rupees ten crore but not in
excess of rupees fifty crore at any time during the immediately preceding
accounting year.
(iii) Holding and subsidiary entities of any one of the above.
Level III Entities
Non-company entities which are not covered under Level I and Level II but fall in any
one or more of the following categories are classified as Level III entities:
32
(i) All entities engaged in commercial, industrial or business activities, whose turnover
(excluding other income) exceeds rupees ten crore but does not exceed rupees fifty
crore in the immediately preceding accounting year.
(ii) All entities engaged in commercial, industrial or business activities having
borrowings (including public deposits) in excess of rupees two crore but does not
exceed rupees ten crore at any time during the immediately preceding accounting
year.
(iii) Holding and subsidiary entities of any one of the above.
Level IV Entities
Non-company entities which are not covered under Level I, Level II and Level III are
considered as Level IV entities.
Additional requirements
(1) An MSME which avails the exemptions or relaxations given to it shall disclose (by
way of a note to its financial statements) the fact that it is an MSME, the Level of
MSME and that it has complied with the Accounting Standards insofar as they are
applicable to entities falling in Level II or Level III or Level IV, as the case may be.
(2) Where an entity, being covered in Level II or Level III or Level IV, had qualified for
any exemption or relaxation previously but no longer qualifies for the relevant
exemption or relaxation in the current accounting period, the relevant standards or
requirements become applicable from the current period and the figures for the
corresponding period of the previous accounting period need not be revised merely
by reason of its having ceased to be covered in Level II or Level III or Level IV, as
the case may be. The fact that the entity was covered in Level II or Level III or
Level IV, as the case may be, in the previous period and it had availed of the
exemptions or relaxations available to that Level of entities shall be disclosed in the
notes to the financial statements. The fact that previous period figures have not
been revised shall also be disclosed in the notes to the financial statements.
(3) Where an entity has been covered in Level I and subsequently, ceases to be so
covered and gets covered in Level II or Level III or Level IV, the entity will not
qualify for exemption/relaxation available to that Level, until the entity ceases to be
covered in Level I for two consecutive years. Similar is the case in respect of an
entity, which has been covered in Level II or Level III and subsequently, gets
covered under Level III or Level IV.
(4) If an entity covered in Level II or Level III or Level IV opts not to avail of the
exemptions or relaxations available to that Level of entities in respect of any but not
33
 all of the Accounting Standards, it shall disclose the Standard(s) in respect of which
it has availed the exemption or relaxation.
(5) If an entity covered in Level II or Level III or Level IV opts not to avail any one or
more of the exemptions or relaxations available to that Level of entities, it shall
comply with the relevant requirements of the Accounting Standard.
(6) An entity covered in Level II or Level III or Level IV may opt for availing certain
exemptions or relaxations from compliance with the requirements prescribed in an
Accounting Standard:
Provided that such a partial exemption or relaxation and disclosure shall not be
permitted to mislead any person or public.
(7) In respect of Accounting Standard (AS) 15, Employee Benefits, exemptions/
relaxations are available to Level II and Level III entities, under two sub-
classifications, viz., (i) entities whose average number of persons employed during
the year is 50 or more, and (ii) entities whose average number of persons
employed during the year is less than 50. The requirements stated in paragraphs
(1) to (6) above, mutatis mutandis, apply to these sub-classifications.

34
 Annexure 2
Applicability of Accounting Standards to Non-company Entities
The Accounting Standards issued by the ICAI, as on April 1, 2020, and such standards as
issued from time-to-time are applicable to Non-company entities subject to the relaxations
and exemptions in the announcement. The Accounting Standards issued by ICAI as on
April 1, 2020, are:
AS 1 Disclosure of Accounting Policies
AS 2 Valuation of Inventories
AS 3 Cash Flow Statements
AS 4 Contingencies and Events Occurring After the Balance
Sheet Date
AS 5 Net Profit or Loss for the Period, Prior Period Items and
Changes in Accounting Policies
AS 7 Construction Contracts
AS 9 Revenue Recognition
AS 10 Property, Plant and Equipment
AS 11 The Effects of Changes in Foreign Exchange Rates
AS 12 Accounting for Government Grants
AS 13 Accounting for Investments
AS 14 Accounting for Amalgamations
AS 15 Employee Benefits
AS 16 Borrowing Costs
AS 17 Segment Reporting
AS 18 Related Party Disclosures
AS 19 Leases
AS 20 Earnings Per Share
AS 21 Consolidated Financial Statements
35
AS 22 Accounting for Taxes on Income
AS 23 Accounting for Investments in Associates in Consolidated
Financial Statements
AS 24 Discontinuing Operations
AS 25 Interim Financial Reporting
AS 26 Intangible Assets
AS 27 Financial Reporting of Interests in Joint Ventures
AS 28 Impairment of Assets
AS 29 Provisions, Contingent Liabilities and Contingent Assets
(1) Applicability of the Accounting Standards to Level 1 Non- company
entities.
Level I entities are required to comply in full with all the Accounting Standards.
(2) Applicability of the Accounting Standards and exemptions/relaxations
for Level II, Level III and Level IV Non-company entities
(A) Accounting Standards applicable to Non-company entities
AS Level II Entities Level III Entities Level IV Entities
AS 1 Applicable Applicable Applicable
AS 2 Applicable Applicable Applicable
AS 3 Not Applicable Not Applicable Not Applicable
AS 4 Applicable Applicable Applicable
AS 5 Applicable Applicable Applicable
AS 7 Applicable Applicable Applicable
AS 9 Applicable Applicable Applicable
AS 10 Applicable Applicable with Applicable with
disclosures exemption disclosures exemption
AS 11 Applicable Applicable with Applicable with
disclosures exemption disclosures
exemption

36
AS 12 Applicable Applicable Applicable
AS 13 Applicable Applicable Applicable with
disclosures
exemption
AS 14 Applicable Applicable Not Applicable
(Refer note 2(C))
AS 15 Applicable with Applicable with Applicable with
exemptions exemptions exemptions
AS 16 Applicable Applicable Applicable
AS 17 Not Applicable Not Applicable Not Applicable
AS 18 Applicable Not Applicable Not Applicable
AS 19 Applicable with Applicable with Applicable with
disclosures exemption disclosures exemption disclosures
exemption
AS 20 Not Applicable Not Applicable Not Applicable
AS 21 Not Applicable Not Applicable Not Applicable
(Refer note 2(D)) (Refer note 2(D)) (Refer note 2(D))
AS 22 Applicable Applicable Applicable only for
current tax related
provisions
(Refer note 2(B)(vi))
AS 23 Not Applicable Not Applicable Not Applicable
(Refer note 2(D)) (Refer note 2(D)) (Refer note 2(D))
AS 24 Applicable Not Applicable Not Applicable
AS 25 Not Applicable Not Applicable Not Applicable
(Refer note 2(D)) (Refer note 2(D)) (Refer note 2(D))
AS 26 Applicable Applicable Applicable with
disclosures
exemption
AS 27 Not Applicable Not Applicable Not Applicable
(Refer notes 2(C) and (Refer notes 2(C) and (Refer notes 2(C) and
2(D)) 2(D)) 2(D))

37
AS 28 Applicable with Applicable with Not Applicable
disclosures exemption disclosures exemption
AS 29 Applicable with Applicable with Applicable with
disclosures exemption disclosures exemption disclosures
exemption
(B) Accounting Standards in respect of which relaxations/exemptions from certain
requirements have been given to Level II, Level III and Level IV Non-company
entities:
(i) Accounting Standard (AS) 10, Property, Plant and Equipment
Paragraph 87 relating to encouraged disclosures is not applicable to Level III
and Level IV Non-company entities.
(ii) AS 11, The Effects of Changes in Foreign Exchange Rates (revised 2018)
Paragraph 44 relating to encouraged disclosures is not applicable to Level III
and Level IV Non-company entities.
(iii) AS 13, Accounting for Investments
Paragraph 35(f) relating to disclosures is not applicable to Level IV Non-company
entities.
(iv) Accounting Standard (AS) 15, Employee Benefits (revised 2005)
(1) Level II and Level III Non-company entities whose average number of
persons employed during the year is 50 or more are exempted from the
applicability of the following paragraphs:
(a) paragraphs 11 to 16 of the standard to the extent they deal with
recognition and measurement of short-term accumulating compensated
absences which are non-vesting (i.e., short-term accumulating
compensated absences in respect of which employees are not entitled
to cash payment for unused entitlement on leaving);
(b) paragraphs 46 and 139 of the Standard which deal with discounting of
amounts that fall due more than 12 months after the balance sheet
date;
(c) recognition and measurement principles laid down in paragraphs 50 to
116 and presentation and disclosure requirements laid down in
paragraphs 117 to 123 of the Standard in respect of accounting for
defined benefit plans. However, such entities should actuarially

38
 determine and provide for the accrued liability in respect of defined
benefit plans by using the Projected Unit Credit Method and the
discount rate used should be determined by reference to market yields
at the balance sheet date on government bonds as per paragraph 78 of
the Standard. Such entities should disclose actuarial assumptions as
per paragraph 120(l) of the Standard; and
(d) recognition and measurement principles laid down in paragraphs 129
to 131 of the Standard in respect of accounting for other long-term
employee benefits. However, such entities should actuarially determine
and provide for the accrued liability in respect of other long-term
employee benefits by using the Projected Unit Credit Method and the
discount rate used should be determined by reference to market yields
at the balance sheet date on government bonds as per paragraph 78 of
the Standard.
(2) Level II and Level III Non-company entities whose average
number of persons employed during the year is less than 50 and Level IV
Non-company entities irrespective of number of employees are exempted
from the applicability of the following paragraphs:
(a) paragraphs 11 to 16 of the standard to the extent they deal with
recognition and measurement of short-term accumulating compensated
absences which are non-vesting (i.e., short-term accumulating
compensated absences in respect of which employees are not entitled
to cash payment for unused entitlement on leaving);
(b) paragraphs 46 and 139 of the Standard which deal with discounting of
amounts that fall due more than 12 months after the balance sheet
date;
(c) recognition and measurement principles laid down in paragraphs 50 to
116 and presentation and disclosure requirements laid down in
paragraphs 117 to 123 of the Standard in respect of accounting for
defined benefit plans. However, such entities may calculate and
account for the accrued liability under the defined benefit plans by
reference to some other rational method, e.g., a method based on the
assumption that such benefits are payable to all employees at the end
of the accounting year; and
(d) recognition and measurement principles laid down in paragraphs 129
to 131 of the Standard in respect of accounting for other long-term
39
 employee benefits. Such entities may calculate and account for the
accrued liability under the other long-term employee benefits by
reference to some other rational method, e.g., a method based on the
assumption that such benefits are payable to all employees at the end
of the accounting year.
(v) AS 19, Leases
(a) Paragraphs 22 (c),(e) and (f); 25 (a), (b) and (e); 37 (a) and (f); and 46 (b)
and (d) relating to disclosures are not applicable to Level II Non-company
entities.
(b) Paragraphs 22 (c),(e) and (f); 25 (a), (b) and (e); 37 (a), (f) and (g); and 46
(b), (d) and (e) relating to disclosures are not applicable to Level III Non -
company entities.
(c) Paragraphs 22 (c),(e) and (f); 25 (a), (b) and (e); 37 (a), (f) and (g); 38;
and 46 (b), (d) and (e) relating to disclosures are not applicable to Level
IV Non-company entities.
(vi) AS 22, Accounting for Taxes on Income
(a) Level IV Non-company entities shall apply the requirements of AS 22,
Accounting for Taxes on Income, for Current tax defined in paragraph 4.4 of
AS 22, with recognition as per paragraph 9, measurement as per paragraph
20 of AS 22, and presentation and disclosure as per paragraphs 27-28 of AS
22.
(b) Transitional requirements
On the first occasion when a Non-company entity gets classified as Level IV
entity, the accumulated deferred tax asset/liability appearing in the financial
statements of immediate previous accounting period, shall be adjusted
against the opening revenue reserves.

(vii) AS 26, Intangible Assets

Paragraphs 90(d)(iii); 90(d)(iv) and 98 relating to disclosures are not applicable to
Level IV Non-company entities.

(viii) AS 28, Impairment of Assets

(a) Level II and Level III Non-company entities are allowed to measure the
‘value in use’ on the basis of reasonable estimate thereof instead of
40
 computing the value in use by present value technique. Consequently, if
Level II or Level III Non-company entity chooses to measure the ‘value in
use’ by not using the present value technique, the relevant provisions of
AS 28, such as discount rate etc., would not be applicable to such an
entity. Further, such an entity need not disclose the information required by
paragraph 121(g) of the Standard.
(b) Also, paragraphs 121(c)(ii); 121(d)(i); 121(d)(ii) and 123 relating to
disclosures are not applicable to Level III Non-company entities.
(ix) AS 29, Provisions, Contingent Liabilities and Contingent Assets (revised 2016)
Paragraphs 66 and 67 relating to disclosures are not applicable to Level II, Level III
and Level IV Non-company entities.
(A) In case of Level IV Non-company entities, generally there are no such
transactions that are covered under AS 14, Accounting for Amalgamations, or
jointly controlled operations or jointly controlled assets covered under AS 27,
Financial Reporting of Interests in Joint Ventures. Therefore, these standards
are not applicable to Level IV Non-company entities. However, if there are any
such transactions, these entities shall apply the requirements of the relevant
standard.
AS 21, Consolidated Financial Statements, AS 23, Accounting for Investments in
Associates in Consolidated Financial Statements, AS 27, Financial Reporting of
Interests in Joint Ventures (to the extent of requirements relating to Consolidated
Financial Statements), and AS 25, Interim Financial Reporting, do not require a
Non-company entity to present consolidated financial statements and interim
financial report, respectively. Relevant AS is applicable only if a Non-company
entity is required or elects to prepare and present consolidated financial
statements or interim financial report.

41
 Appendix B
Illustrative Financial Statements

Name of the Non-Corporate Entity…………………………

Balance Sheet as at ………………………
(Amount in Rs. XX)
Particulars Note 31 March 31 March
No 20XX 20XX
I EQUITY AND LIABILITIES
1. Owners’ Funds
(a) Owners’ Capital Account 3 - -
(b) Reserves and surplus 4 - -
- -
2. Non-current liabilities
(a) Long-term borrowings 5 - -
(b) Deferred tax liabilities (Net) 6 - -
(c) Other long-term liabilities 7 - -
(d) Long-term provisions 8 - -
- -
3. Current liabilities
(a) Short-term borrowings 5 - -
(b) Trade payables
(i) Total outstanding dues of micro, small
and medium enterprises 9 - -
(ii) Total outstanding dues of creditors
other than micro, small and medium
enterprises 9 - -
(c) Other current liabilities 10 - -
(d) Short-term provisions 8 - -
- -
Total

42
II ASSETS
1. Non-current assets
(a) Property, Plant and Equipment and 11
Intangible assets
(i) Property, Plant and Equipment
(ii) Intangible assets
(iii) Capital work in progress
(iv) Intangible asset under development
(b) Non-current investments 12 -
(c) Deferred tax assets (Net) 6
(d) Long Term Loans and Advances 13
(e) Other non-current assets 14
- -
2. Current assets
(a) Current investments 12
(b) Inventories 15
(c) Trade receivables 16
(d) Cash and bank balances 17
(e) Short Term Loans and Advances 13
(f) Other current assets 18
- -
Total - -
Brief about the Entity 1

Summary of significant accounting 2

policies

The accompanying notes are an integral

part of the financial statements

43
Name of the Non-Corporate Entity………………………………………
Statement of Profit and Loss for the year ended ………………………

(Amount in Rs.)
Particulars Note 31 March 31 March
20XX 20XX

I Revenue from operations 19 - -

II Other Income 20 - -
III Total Income (I+II) - -

IV Expenses:
(a) Cost of goods sold 21 - -
(b) Employee benefits expense 22 - -
(c) Finance costs 23 - -
(d) Depreciation and amortization expense 24 - -
(e) Other expenses 25 - -
Total expenses - -

V Profit/(loss) before exceptional and

extraordinary items and tax (III- IV) - -

VI Exceptional items (specify nature &

- -
provide note/delete if none)

VII Profit/(loss) before extraordinary items

and tax (V-VI) - -

VIII Extraordinary Items (specify nature &

provide note/delete if none) - -

IX Profit before tax (VII-VIII) - -

X Tax expense:
44
 Particulars Note 31 March 31 March
20XX 20XX
(a) Current tax - -
(b) Excess/Short provision of tax relating to
earlier years
(c) Deferred tax charge/ (benefit) 6 - -
- -
XI Profit/(Loss) for the period from - -
continuing operations (IX-X)

XII Profit/(loss) from discontinuing operations - -

XIII Tax expense of discontinuing operations - -

XIV Profit/(loss) from discontinuing

operations (after tax) (XII-XIII) - -

XV Profit/(Loss) for the year (XI+XIV) - -

The accompanying notes are an integral
part of the financial statements

45
Name of the Entity
Notes forming part of the Financial Statements for the year ended, 31 March 20XX

Note - 3 Owners’ Capital Account

(Amount in Rs.)
Sr. Name of Share As at1st Capital Remunerat Interest Withdrawals Share As at 31st
No. Partner/P of April Introduced ion for the for the during the of Profit March
roprietor/ profit/ 20XX /contribute year year year / Loss 20XX
Owner (loss) (Opening d during for the (Closing
(%) Balance) the year year Balance)
1 -
2 -
3 -
4 -
- - - - - - -
Previous Year (PY) - - - - - - -

46
Name of the Entity
Notes forming part of the Financial Statements for the year ended
31st March , 20XX

(Amount in Rs.)
4 Reserves and surplus 31 March 31 March
20XX 20XX
(a) Capital Reserve - -
(b) Revaluation Reserve - -
(c) Other Reserve (Please - -
specify)

(d) Undistributed surplus - -

(Balance from statement of
profit and loss)
Total

(Amount in Rs.)
Long Term Short Term
5 Borrowings 31 31 31 31
March March March March
20XX 20XX 20XX 20XX
Secured
(a) Term loans
from banks - - - -
from other parties - - - -

(b) Loans repayable on

demand
from banks NA NA - -
from other parties NA NA - -

(c) Deferred payment - - - -

liabilities
(d) Loans and advances - - - -
from related parties
47
(e) Long term/current - - - -
maturities of finance
lease obligation
(f) Other loans advances - - - -
(specify nature)
Total (A) - - - -

Unsecured
(a) Term loans
from banks - - - -
from other parties - - - -

(b) Loans repayable on

demand
from banks NA NA - -
from other parties NA NA - -

(c) Deferred payment - - - -

liabilities
(d) Loans and advances - - - -
from related parties
(e) Long term/current - - - -
maturities of finance
lease obligation
(f) Other loans advances - - - -
(specify nature)
Total (B) - - - -
Total (A) + (B) - - - -
Footnote:
(i) Nature of the Security to be specified separately.
(ii) Terms of repayment of terms loans and other loans may be stated.
(iii) Where loans guaranteed by partners/proprietors/owners aggregate
of such amount under each head may be disclosed.

48
 (Amount in Rs.)
6 Deferred tax liabilities/ 31 Charge/ 31
(asset) (Net) March (benefit) for March
20XX the year 20XX
Deferred tax asset
Expenses provided but - - -
allowable in Income Tax
on payment basis.
Provision for doubtful - - -
debts.
Difference between book - - -
depreciation & tax
depreciation.
Others (please specify) - - -
Gross deferred tax asset - - -
(A)

Deferred tax liability

Difference between book - - -
depreciation & tax
depreciation.
Others (please specify) - - -
Gross deferred tax - - -
liability (B)

Net deferred tax - - -

liability/(asset) (B-A)

(Amount in Rs.)
7 Other long -Term liabilities 31March 31March
20XX 20XX
Advance from customers - -
Others (please specify) - -
Total Other long-term - -
liabilities

49
 (Amount in Rs.)
8 Provisions Long term Short term
31March 31March 31March 31March
20XX 20XX 20XX 20XX
(a) Provision for
employee
benefits
Provision for - - - -
gratuity
Provision for - - - -
leave
Encashment

(b) Other
provisions
Provision for - - - -
Income tax [net of
advance tax of
Rs.___ (previous
year Rs.___)
Other Provisions - - - -
(Please Specify -
eg/- Provision for
warranties /
Provision for
Sales Return)
Other (specify
nature) - - - -
Total Provisions - - - -

(Amount in Rs.)
9 Trade payables 31March 31March
20XX 20XX
(a) Total outstanding dues of micro, small and - -
medium enterprises
(b) Total outstanding dues of creditors other - -
than micro, small and medium enterprises
50
Total Trade payables - -
Disclosure relating to suppliers registered under MSMED Act based
on the information available with the entity Company:
Particulars 31March 31March
20XX 20XX
(a) Amount remaining unpaid to any
supplier at the end of each accounting
year:
Principal - -
Interest - -
Total - -
(b) The amount of interest paid by the - -
buyer in terms of section 16 of the MSMED
Act, along with the amount of the payment
made to the supplier beyond the appointed
day during each accounting year.
(c) The amount of interest due and payable - -
for the period of delay in making payment
(which have been paid but beyond the
appointed day during the year) but without
adding the interest specified under the
MSMED Act.
(d) The amount of interest accrued and - -
remaining unpaid at the end of each
accounting year.
(e) The amount of further interest - -
remaining due and payable even in the
succeeding years, until such date when the
interest dues above are actually paid to the
small enterprise, for the purpose of
disallowance of a deductible expenditure
under section 23 of the MSMED Act.

51
 (Amount in Rs.)
10 Other current liabilities 31 March 31 March
20XX 20XX
(a) Current maturities of finance lease - -
obligations (Refer note XX)
(b) Interest accrued but not due on borrowings - -
(c) Interest accrued and due on borrowings - -
(d) Income received in advance - -
(e) Unearned revenue - -
(f) Goods and Service tax payable - -
(g) TDS payable - -
(h) Other payables (specify nature) - -
Total Other current liabilities - -

52
 11 Property, Plant and Equipment and Intangible Assets (owned assets)

TANGIBLE ASSETS
Freehold Buildings Plant and Office Furniture Vehicles Others Total
Particulars /Assets
land Equipment equipment & (specify
Fixtures nature)
Gross Block
At 1 April 20X1
Additions
Deductions/Adjustments
At 1 April 20X0
Additions
Deductions/Adjustments
At 31 March 20X2
At 31 March 20X1
Depreciation/Adjustments
At 1 April 20X1
Additions
Deductions/Adjustments

53
At 1 April 20X0
Additions
Deductions/Adjustments
At 31 March 20X2
At 31 March 20X1
Net Block
At 31 March 20X1
At 31 March 20X2

54
 (Amount in Rs.)
INTANGIBLE ASSETS
Good Brand Comp Mini Masthead Copyrigh Recipe/form Licens Others Tot
Particulars
will s/trade uter ng and ts/patent ulae/model/ e and (specify al
/Assets
marks Softw Righ publishin s design franchi nature) --
are ts g title prototype se
Gross Block
At 1 April 20X1
Additions
Deductions/Adju
stments
At 1 April 20X0
Additions
Deductions/Adju
stments
At 31 March
20X2
At 31 March
20X1

55
Amortization/Adjustment
At 1 April 20X1
Additions
Deductions/Adju
stments
At 1 April 20X0
Additions
Deductions/Adju
stments
At 31 March
20X2
At 31 March
20X1
Net Block
At 31 March
20X1
At 31 March
20X2

56
Assets under lease to be separately specified under each class of asset.

Capital Work in Progress 31 31 March Intangible assets under 31 March 31 March

March 20XX development 20XX 20XX
20XX
Opening Balance Opening Balance
Add: Additions during the Add: Additions during the
year year
Less: Capitalized during the Less: Capitalized during the
year year
Closing Balance (B) - - Closing Balance (B) - -

57
 (Amount in Rs.)
12 Investments - Non As at 31 March 20XX As at 31
Current and March 20XX
Current
(valued at historical
cost unless stated
otherwise)
Face Numb Book Numb Bo
Valu ers/ Valu ers/ ok
e Units/ e Units/ Val
Share Share ue
s s

Trade Investments -
Quoted

Investments in Other
(a) Entities - -
Less: Provision for
diminution in value of
investments - -

(b) Investments in
partnership firm
(Refer footnote 1) - -

Other Investments
(c) Investments in
preference shares - -
(d) Investments in equity
instruments - -
(e) Investments in
government or trust
securities - -
(f) Investments in
debentures or bonds - -

58
(g) Investments in mutual
funds - -
(h) Investments Property - -
(i) Other non-current
investments (specify
nature) - -
Total Investments - -

Trade Investments –
Unquoted
(a) Investments in Other
Entities - -
Less: Provision for
diminution in value of
investments - -

(b) Investments in
partnership firm
(Refer footnote 1) - -

Other Investments
(c) Investments in
preference shares - -
(d) Investments in equity
instruments - -
(e) Investments in
government or trust
securities - -
(f) Investments in
debentures or bonds - -
(g) Investments in mutual
funds - -
(h) Other Non-current
investments (specify
nature) - -
(i) Investments property - -

59
Total Investments - -

Aggregate market
value as at the end
of the year:
Aggregate amount of
quoted investments
and market value
thereof. - -
Aggregate amount of
Un-quoted
investments. - -
Aggregate Provision
for diminution in value
of investments. - -
Footnote 1: Details 31 March 20XX 31 March
of investment in 20XX
partnership firm
Name of partner
with % share in
profits of such firm
ABC - -
XYZ - -
Mr. A - -

Total capital of the

firm (Amount in Rs.) - -
As at 31 As at 31
Current Investments March 20XX March 20XX
Face Numb Book Numb Bo
Valu ers/ Valu ers/ ok
e Units/ e Units/ Val
Share Share ue
s s
Trade (valued at
lower of cost or
60
 market value) -
Quoted
(a) Current maturities of
long-term
investments - -
(b) Investments in equity
instruments - -
(c) Investments in
preference shares - -
(d) Investments in
government or trust
securities - -
(e) Investments in
debentures or bonds - -
(f) Investments in mutual
funds - -
(g) Other Short-term
investments (specify
nature) - -
Net current
investments - -

Trade (valued at
lower of cost or
market value) –
Unquoted
(a) Current maturities of
long- term
investments - -
(b) Investments in equity
instruments - -
(c) Investments in
preference shares - -
(d) Investments in
government or trust
securities - -
(e) Investments in - -
61
 debentures or bonds
(f) Investments in mutual
funds - -
(g) Other Short-term
investments (specify
nature) - -
Net current
investments - -

Grand Total - -

Aggregate value of
quoted investments
and market value
thereof - -
Aggregate value of
quoted investments - -
Aggregate Provision
for diminution in value
of investments - -

(Amount in Rs.)
13 Loans and advances Long Term Short Term
A (Secured) 31 31 31 31
March March March March
20XX 20XX 20XX 20XX

(a) Capital advances

Considered good - - - -
Doubtful - - - -
Less: Provision for
doubtful advances - - - -
(a) - - - -

(b) Loans advances to - - - -

62
 partners or relative of
partners

(c) Other loans and

advances (specify
nature) - - - -
Prepaid expenses - - - -
Advance tax and tax
deducted at source [Net
of provision for income
tax of Rs. ___ (previous
year Rs. ___)] - - - -
CENVAT credit
receivable
VAT credit receivable
Service tax credit
receivable
GST input credit
receivable
Security Deposits
Balance with
government authorities
(b) - - - -
Total (a)+(b) (A) - - - -

B Loans and advances Long Term Short Term

(Unsecured) 31 31 31 31
March March March March
20XX 20XX 20XX 20XX

(a) Capital advances

Considered good - - - -
Doubtful - - - -
Less: Provision for
doubtful advances - - - -
(a) - - - -
63
(b) Loans advances to
partners or relative of
partners - - - -

(c) Other loans and

advances (specify
nature) - - - -
Prepaid expenses - - - -
Advance tax and tax
deducted at source [Net
of provision for income
tax of Rs. ___ (previous
year Rs. ___)] - - - -
CENVAT credit
receivable
VAT credit receivable
Service tax credit
receivable
GST input credit
receivable
Security Deposits
Balance with
government authorities
(b) - - - -
Total (a)+(b) (B) - - - -

Total (A + B) - - - -
(Amount in Rs.)
14 Other non-current assets 31 March 31 March
20XX 20XX
(a) Security Deposits - -
(b) Prepaid expenses - -
(c) Others (Specify nature) - -
Total other non-current other assets - -
64
 (Amount in Rs.)
15 Inventories 31 March 31 March
20XX 20XX
(a) Raw materials - -
(b) Work-in-progress - -
(c) Finished goods - -
(d) Stock-in-trade - -
(e) Stores and spares - -
(f) Loose Tools - -
(g) Others (Specify nature) - -
[Goods in Transit to be disclosed under
relevant sub-head of inventories]
Total - -

(Amount in Rs.)
16 Trade receivables 31 March 31 March
20XX 20XX
Outstanding for a period less than 6
months from the date they are due for
receipt
(a) Secured Considered good - -
(b) Unsecured Considered good - -
(c) Doubtful - -
Less: Provision for doubtful receivables - -

Outstanding for a period exceeding 6

months from the date they are due for
receipt - -
(a) Secured Considered good
(b) Unsecured considered good - -
(c) Doubtful - -
Less: Provision for doubtful receivables - -
Unbilled receivables
Total - -
65
 (Amount in Rs.)
17 Cash and Bank Balances 31 March 31 March
20XX 20XX
A Cash and cash equivalents
(a) On current accounts - -
(b) Cash credit account (Debit balance) - -
(c) Fixed Deposits
Deposits with original maturity of
less than three months - -
(d) Cheques, drafts on hand - -
(e) Cash on hand - -
Total
(I) - -
B Other bank balances

(a) Bank Deposits - -

(i) Earmarked Bank Deposits
Deposits with original maturity for more
than 3 months but less than 12 months
(ii) from reporting date - -
(iii) Margin money or deposits under lien - -
(iv) Others (specify nature) - -
-

Total other bank balances (II) - -

Total Cash and bank balances

(I+II) - -
- -

66
 (Amount in Rs.)
18 Other current assets 31 March 31 March
(Specify nature) 20XX 20XX
(This is an all-inclusive heading, which
incorporates current assets that do not fit
into any other asset categories)
(a) Interest accrued but not due on deposits - -
(b) Interest accrued and due on deposits - -
Total - -

(Amount in Rs. XX)

19 Revenue from operations 31 March 31 March
20XX 20XX
(a) Sale of products - -
(b) Sale of services - -
(c) Grants or donations received - -
(d) Other operating revenue - -
Revenue from operations (Gross) - -
Less: Excise duty - -
Revenue from operations (Net) - -

(Amount in Rs.)
20 Other income 31 March 31 March
20XX 20XX
(a) Interest income - -
(b) Dividend income - -
(c) Net gain on sale of investments - -
Other non-operating income (Please
(d) specify)
Total other income - -

67
 (Amount in Rs.)

21 Cost of goods sold (Delete whatever 31 March 31 March

is not applicable) 20XX 20XX

(A) Cost of raw material consumed

Raw material consumed
(i) Inventory at the beginning of the year - -
(ii) Add: Purchases during the year - -
(iii) Less: Inventory at the end of the year - -
Cost of raw material consumed (I) - -

Packing material consumed (if

considered as part of raw material)
(i) Inventory at the beginning of the year - -
(ii) Add: Purchases during the year - -
(iii) Less: Inventory at the end of the year - -
Cost of packing material consumed - -
(II)

Other materials (purchased

intermediates and components)
(i) Inventory at the beginning of the year - -
(ii) Add: Purchases during the year - -
(iii) Less: Inventory at the end of the year - -
Cost of other material consumed - -
(III)
Total raw material consumed (A) - -

(I+II+III)
31 March 31 March
B Purchases of stock-in-trade 20XX 20XX
(i) … - -
(ii) … - -
68
 (iii) … - -
Total (B) - -

C Changes in inventories of finished 31 March 31 March

goods, work in progress and stock- 20XX 20XX
in trade

Inventories at the beginning of the

year:
(i) Stock-in-trade - -
(ii) Work in progress - -
(iii) Finished goods - -
(I) - -
Inventories at the end of the year:
(i) Stock-in-trade - -
(ii) Work in progress - -
(iii) Finished goods - -
(II) - -
(Increase)/decrease in inventories of
finished goods, work-in-progress
and stock-in-trade (C) - -
Total (A+B+C) - -

(Amount in Rs.)
Employee benefits expense 31 March 31 March
22
(Including contract labour) 20XX 20XX

Salaries, wages, bonus and other

(a) allowances - -
Contribution to provident and other
(b) funds - -
(c) Gratuity expenses - -
(d) Staff welfare expenses - -
Total Employee benefits expense - -

69
 (Amount in Rs.)
Finance cost 31 March 31 March
23 20XX 20XX
(a) Interest expense
(i) On bank loan - -
(ii) On assets on finance lease - -
(b) Other borrowing costs - -
Loss on foreign exchange transactions
and translations considered as finance
(c) cost (net)
Total Finance cost - -

(Amount in Rs.)
Depreciation and amortization 31 March 31 March
24 expense 20XX 20XX
(a) on tangible assets (Refer note 11)
(b) on intangible assets (Refer note 11)
Total Depreciation and amortization
expense - -

(Amount in Rs.)
25 Other Expenses 31 March 31 March
20XX 20XX
(a) Consumption of stores and spare parts - -
(b) Power and fuel - -
(c) Rent
(d) Repairs and maintenance - Buildings - -
(e) Repairs and maintenance - Machinery - -
(f) Insurance - -
(g) Rent, Rates and taxes, excluding, taxes - -
on income
(h) Labour charges - -
(i) Travelling expenses - -
70
(j) Auditor's remuneration (Refer note - -
below)
(k) Printing and stationery - -
(l) Communication expenses - -
(m) Legal and professional charges - -
(n) Advertisement and publicity - -
(o) Business promotion expenses - -
(p) Commission - -
(q) Clearing and forwarding charges
(r) Loss on sale of Property, Plant and - -
Equipment
(s) Loss on foreign exchange transactions - -
(net)
(t) Loss on cancellation of forward - -
contracts
(u) Loss on sale of investments (net) - -
(v) Provision for diminution in value of - -
investments
(w) Provision for doubtful debts - -
(x) Miscellaneous expenses - -
Total - -

71
72