Details on the Promoter’s shareholding, as well as any changes that may have occurred during the Financial Year, will be mentioned in the Financial Statements Such disclosure shall be in the following format:

Management will provide information for each share class individually. If a number is issued during the year for the first time, the percentage change is calculated with reference to the number at the beginning of the year or with reference to the date of issuance.

Companies must present ageing schedules for trade payables due in 1 year, 1-2 years, 2-3 years, and more than 3 years. These include trade payables and disputed dues to MSMEs. 

When no payment due date is indicated, disclosures are also required. Unbilled dues must be reported individually.

Companies will be required to disclose the ageing schedule of their trade receivables, including undisputed and disputed trade receivables considered good and doubtful with ageing classified as less than 6 months, 6 months to 1 year, 1-2 years, 2-3 years, and 3 years or more along with separate disclosure for unbilled dues. Undisputed and disputed trade receivables are good and doubtful.

The Company must provide details of immovable properties (other than those where it is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in its name in the prescribed format. If the immovable property is jointly owned, the Company’s part must be disclosed.

If the firm has revalued its Property, Plant, and Equipment, it must report whether the revaluation was done by a registered valuer as specified in rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017.

Disclosures must be provided when promoters, directors, KMPs, and associated persons (as defined in the Companies Act, 2013) receive loans or advances that are (a) repayable on demand or (b) without defining conditions or time of repayment.

If any proceedings have been launched or are underway against the company under the Benami Transactions (Prohibitions) Act, 1988, the related disclosures must be made in the financial statements. Company must disclose:

1. Property details, including acquisition year,
2. Amount,
3. Beneficiaries,
4. If property is in the books, reference to the Balance Sheet item,
5. If property is not in the books, the fact shall be stated with reasons,
6. Where there are proceedings against the company under this law as an abetter of the transaction or as the transferor, details shall be provided,
7. Nature of proceedings, status of same, and company’s view on same.

When a company borrows from banks or financial institutions using current assets as collateral, it must disclose:

a) if quarterly returns or statements of current assets filed with banks or financial institutions correspond with the books of accounts.

b) If not, reconcile and explain substantial differences.

When a bank, financial institution, or other lender declares a company a willful defaulter, the following information must be provided:

a) Date of intentional defaulter declaration,

b) default details (amount and nature of defaults),

* “willful defaulter” denotes a person or issuer characterised as a wilful defaulter by any bank or financial institution (as defined by the Act) or combination thereof, in accordance with Reserve Bank of India standards.

Details and explanations must be disclosed if charges or satisfactions are not recorded with the Registrar of Companies within the required period.

Where a company has not complied with the number of layers prescribed in clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of companies beyond the specified layers and the company’s relationship/holding in such downstream companies shall be disclosed.

The amendment requires companies in divisions I and II of schedule III to disclose the following ratios:

• Current Ratio,
• Debt-Equity Ratio,
• Debt Service Coverage Ratio,
• Return on Equity Ratio,
• Inventory turnover ratio,
• Trade Receivables turnover ratio,
• Trade Payables turnover ratio,
• Net capital turnover ratio,
• Net profit ratio,
• Return on Capital Employee.

Note: The company must explain the items included in the numerator and denominator for determining the aforementioned ratios and any 25% change from the previous year.

a.Transactions where an entity has provided any advance, loan, or invested funds to any other person (s) or entity/ entities, including foreign entities.

b. Transactions where an entity has received any fund from any person (s) or entity/ entities, including foreign entity.

The company must explain any deviations in its financial statements and books of account if a Scheme of Arrangements has been approved by the Competent Authority in accordance with sections 230 to 237 of the Companies Act, 2013, and the effect of the Scheme has been accounted for in the company’s books of account “in accordance with the Scheme” and “in accordance with accounting standards.”