Companies Act, 1956

A. HORIZONTAL FORM]

Balance sheet of ____________ [Here enter the name of the Company]

As at _________________ [Here enter the date as at which the balance-sheet is made out.]

Instructions in accordance with which liabilities should be made out      LIABILITIES

Figures for the previous year Rs. (b)         Figures for the current year Rs. (b)

*SHARE CAPITAL

*Terms of redemption or conversion (if any), or any redeemable preference capital to be stated, together with earliest date of redemption or conversion.  Authorised ___ shares of Rs.___ each.

+Particulars of any option on un-issued share capital to be specified.    +Issued (distinguishing between the various classes of capital and stating the particulars specified below, in respect of each class) ___ shares of Rs.____ each

+Particulars of the different classes of preference shares to be given.   +Subscribed (distinguishing between the various classes of Capital and stating the particulars specified below in respect of each class.)

(c) __ shares of Rs.__ each.

Rs._____ called up.

Of the above shares ______ shares are allotted as fully paid-up pursuant to a contract without payments being received in cash.

8[+Specify the source from which bonus shares are issued, e.g., capitalization of profits or Reserves or from Share Premium Account.]     9[Of the above shares ___ shares are allotted as fully paid-up by way of bonus shares+]

8[+Any capital profit on reissue of forfeited shares should be transferred to Capital Reserve.  Less: calls unpaid:

1[(i) By managing agent or secretaries and treasurers and where the managing agent or secretaries and treasurers are a firm, by the partners thereof, and where the managing agent or secretaries and treasurers are a private company by the directors or members of that company.]

(ii) By directors.

(iii) By others.

10[+Add: Forfeited shares (amount originally paid up)].

*Additions and deductions since last balance sheet to be shown under each of the specified heads.

The word "fund" in relation to any "Reserve" should be used only where such Reserve is specifically represented by earmarked investments.   *RESERVES AND SURPLUS

9[(1) Capital Reserves.

(2) Capital Redemption Reserve.

(3) Share Premium Account (cc).

(4) Other Reserves specifying the nature of each Reserve and the amount in respect thereof.

Less: Debit balance in profit and loss account (if any) (h).

(5) Surplus i.e., balance in profit and loss account after providing for proposed allocations, namely:-

Dividend, Bonus or Reserves.

(6) Proposed additions to Reserves.

(7) Sinking Funds.]

SECURED LOANS:

9[Loans from Directors, 1[***], Manager should be shown separately.

Interest accrued and due on Secured Loans should be included under the appropriate sub-heads under the head "SECURED LOANS".

+The nature of the security to be specified in each case.

Where loans have been guaranteed by 1[***] managers and/or directors, a mention thereof shall also be made and the aggregate amount of such loans under each head

++Terms of redemption or conversion (if any) of debentures issued to be stated together with earliest date of redemption or conversion.    +(1) Debentures ++

+(2) Loans and Advances from Banks.

+(3) Loans and Advances from subsidiaries.

+(4) Other Loans and Advances.

UNSECURED LOANS:

+8[Loans from directors, 3[***] manager should be shown separately. Interest accrued ant due on Unsecured Loans should be included under the appropriate sub-heads under the   head "Unsecured Loans".]

+Where loans have been guaranteed by 3[* * *] managers and/ or directors, a mention thereof shall be made and also aggregate amount of such loans under each head.

*See note (d) at foot of Form        (1) Fixed Deposits.

+(2) Loans and Advances from subsidiaries.

+*(3) Short Term Loans and Advances:

    (a) From Banks.

    (b) From others.

(4) Other Loans and Advances:

    (a) From Banks.

    (b) From others.

CURRENT LIABILITIES AND PROVISIONS:

18[The name(s) of the small scale industrial undertaking(s) to whom the Company owe a sum exceeding Rs. 1 lakh which is outstanding for more than 30 days, are to be disclosed.]   A. CURRENT LIABILITIES

14[(1) Acceptances.

(2) Sundry creditors.

18[(i) Total outstanding dues of small scale industrial undertaking(s); and

(ii) Total outstanding dues of creditors other than small scale industrial undertakings(s).]

(3) Subsidiary companies.

(4) Advance payments and unexpired discounts for the portion for which value has still to be given e.g., in the case of the following classes of companies:-

Newspaper, Fire Insurance, Theatres, Clubs, Banking, Steamship Companies, etc.

(5) Unclaimed Dividends.

(6) Other Liabilities (if any).

(7) Interest accrued but not due on loans.]

B. PROVISIONS

9[(8) Provisions for taxation.

(9) Proposed dividends.

(10) For contingencies.

(11) For provident fund scheme.

(12) For insurance, pension and similar staff benefit schemes.

(13) Other provisions.]

A foot-note to the balance-sheet may be added to show separately:

(1) Claims against the company not acknowledged as debts.

(2) Uncalled liability on shares partly paid.

The period for which the dividends are in arrear of if there is more than one class of shares, the dividends on each such class are in arrear, shall be stated.

The amount shall be stated before deduction of income-tax, except that in the case of tax-free dividends the amount shall be shown free of income-tax and the fact that it is so shown shall be stated.

The amount of any guarantees given by the company on behalf of Directors or other officers of the company shall be stated and where practicable, the general nature and amount of each such contingent liability, if material, shall also be specified.      ++(3) Arrears of fixed cumulative dividends.

(4) Estimated amount of contracts remaining to be executed on capital account and not provided for.

+(5) Other money for which the company is contingently liable.

General instructions for preparation of balance sheet.-

(a) The information required to be given under any of the items or sub-items in this Form, if it cannot be conveniently included in the balance sheet itself, shall be furnished in a separate Schedule or Schedules to be annexed to and to form part of the balance sheet. This is recommended when items are numerous.

(b) Naye Paise can also be given in addition to Rupees, if desired.

(c) In the case of ⁹[subsidiary companies] the number of shares held by the holding company as well as by the ultimate holding company and its subsidiaries must be separately stated.

The auditor is not required to certify the correctness of such shareholdings as certified by the management.

² [(cc) The item "Share Premium Account" shall include details of its utilization in the manner provided in section 78 in the year of utilization.]

(d) Short Term Loans will include those which are due for not more than one year as at the date of the balance-sheet.

(e) Depreciation written off or provided shall be allocated under the different asset heads and deducted in arriving at the value of Fixed Assets.

(f) Dividends declared by subsidiary companies after the date of the balance sheet ⁹[should not be included] unless they are in respect of period which closed on or before the date of the balance sheet.

(g) Any reference to benefits expected from contracts to the extent not executed shall not be made in the balance sheet but shall be made in the Board's report.

 ² [(h) The debit balance in the Profit and Loss Account shall be shown as a deduction from the uncommitted reserves, if any.]

(i) As regards Loans and Advances, ³[amounts due by the Managing Agents or Secretaries and Treasurers, either severally or jointly with any other persons to be separately stated;] ⁹[the amounts due from other companies under the same management within the meaning of sub-section (1B) of section 370 should also be given with the names of the companies] the maximum amount due from every one of these at any time during the year must be shown.

(j) Particulars of any redeemed debentures which the company has power to issue should be given.

(k) Where any of the company's debentures are held by a nominee or a trustee for the company, the nominal amount of the debentures and the amount at which they are stated in the books of the company shall be stated.

²¹ [(l) A statement of investments (whether shown under "Investment" or under "Current Assets" as stock-in-trade) separately classifying trade investments and other investments should be annexed to the balance sheet, showing the names of the bodies corporate (indicating separately the names of the bodies corporate under the same management) in whose shares or debentures, investments have been made (including all investments whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and the nature and extent of the investment ; so made in each such body corporate; provided that in the case of an investment company that is to say, a company whose principal business is the acquisition of shares, stock, debentures or other securities, it shall be sufficient if the statement shows only the investments existing on the date as at which the balance sheet has been made out. In regard to the 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) shall be given in the statement.]

(m) If, in the opinion of the Board, any of the current assets, loans and advances have not a value on realization in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion shall be stated.

(n) Except in the case of the first balance sheet laid before the company after the commencement of the Act, the corresponding amounts for the immediately preceding financial year for all items shown in the balance sheet shall be also given in the balance sheet The requirement in this behalf shall, in the case of companies preparing quarterly or half-yearly accounts, etc., relate to the balance sheet for the corresponding date in the previous year.

(o) The amounts to be shown under Sundry Debtors shall include the amounts due in respect of goods sold or services rendered or in respect of other contractual obligations but shall not include the amounts which are in the nature of loans or advances.

 ⁹ [(p) Current accounts with directors, ³[* * *] and Manager, whether they are in credit or debit, shall be shown separately.]

¹⁸ [(q) A small scale industrial undertaking has the same meaning as assigned to it under clause (j) of section 3 of the Industries (Development and Regulation) Act, 1951.]

Foot Notes

1 Omitted by Act No. 17 of 1969, w.e.f. 3rd. April, 1970.

2 Omitted by Act No. 17 of 1969, w.e.f. 3rd. April, 1970.

3 Omitted by Act No. 17 of 1969, w.e.f. 3rd. April, 1970.

4 Substituted by Notification No. GSR 389(E), dated 15th. May, 1995.

5 Substituted by Act No. 65 of 1960.

6 Inserted by Notification No. GSR 220(E), dated 12th. March, 1979.

7 Inserted by Notification No. GSR 129, dated 3rd. January, 1968.

8 Inserted by Notification No. GSR 414, dated 21st. March, 1961.

9 Substituted by Notification No. GSR 414, dated 21st. March, 1961.

10 Substituted by Notification No. GSR 414, dated 21st. March, 1961.

11 Inserted by Notification No GSR 129, dated 3rd. January, 1968.

12 Inserted by Notification No. GSR 423 (E), dated 13th. September, 1996.

13 Inserted by Notification No. 494 (E), dated 9th. November, 1973.

14 Substituted by Notification No. GSR 78, dated 4th. January, 1963.

15 Inserted by Notification No. GSR 423 (E) dated 13th. September, 1996.

16 Item (8) relettered as sub-item (a) by Notification No. GSR 494(E), dated 30th. October, 1973.

17 Inserted by Notification No. GSR 494(E), dated 30th. October, 1973.

18 Inserted by Notification No. GSR 129(E), dated 22nd. February, 1999.

19 Inserted by GSR 414, dated 21st. March, 1961.

20 Inserted by GSR 414, w.e.f. 21st. March, 1961.

21 Substituted by Notification No. 494(E), dated 30th. October, 1973.

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