Page 322 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 13: Final Accounts for Companies

5. Where any of the company’s redeemed debentures are held by a nominee or a Notes
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.
6. A statement of investment (whether shown under: “Investment” or “Current Assets”
as Stock-in-trade) separately classifying trade investment and other investments
should be annexed to the balance sheet, showing the names of the bodies corporate
(including separately the name 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 on which the
previous balance sheet was made out); and the nature and extent of the investment
so made in each body corporate: provided that in the case of an investments 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 on which the balance sheet has been made out. In
regard to the investment in the capital of partnership firm, 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.
7. If, in the opinion the Board, any of the current assets, loans and advances do not have
a value on realization in that 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.
8. Except in the case of the first balance sheet laid before the company after the
commencement of the Act, the corresponding amounts of the immediately preceding
financial year for all items shown in the balance sheet shall be also given in the
balance sheet. The requirements in this behalf shall, in case of companies preparing
quarterly or half yearly account, etc., relate to the balance sheet for the corresponding
date in the previous year.
9. Current account with Directors and Manager, whether they are in credit or debit,
shall be shown separately.
10. The information required to be given under any of the items or sub-items in the
Form, if cannot be conveniently included in the balance sheet itself, shall be furnished
in a separate Schedule or Schedule to be annexed to any form part of the balance
sheet. This is recommenced when the items are numerous.
11. Where the original coat (of fixed assets) and additions and deduction thereto, relate
to any fixed assets which have been acquired from a country outside India, and in
consequence of a charge in the rate of exchange at any time after the acquisition of
such assets, there has been an increase or reduction on the liability of the company,
as expressed in Indian currency, for making payment towards the whole or a part of
the cost of the asset, or for repayment of the whole or a part of monies borrowed by
the company from any person, directly, in any foreign currency specifically for the
purpose of acquiring the asset (being in either cause the liability existing immediately
before the date on which the change in the rate of exchange takes effect), the amount
by which the liabilities are so increased or reduced during the year, shall be added
to, or as the case may be, deducted from the cost, and amount arrived at after such
addition or deduction shall be taken to the cost of the fixed assets.

!
Caution According to Section 211(1) every balance sheet of the company shall be prepared
in the form set out in Part I of Schedule VI or as near thereto as circumstances permit, or in
such other form as may be laid down by the Central Government either generally or in a
particular case.

Explanation 1: This paragraph shall apply in relation to all balance sheets that may be made out
as on the 6th day of June, 1966 or any day thereafter and where, at the date of issue of the

LOVELY PROFESSIONAL UNIVERSITY 315