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Unit 13: Final Accounts for Companies

(ii) other allowances and commission including guarantee commission (details to be Notes
given);

(iii) any other perquisites and benefits in cash or in kind (stating approximately money
value where practicable);

(iv) Pension, etc.,
(a) pension,
(b) gratuities,
(c) payment from provident funds, in excess of own subscriptions and interest
thereon,
(d) compensation for loss of office,

(e) consideration in connection with retirement from office.
4A. The profit and loss account shall contain or give by way of a note, a statement showing the
computation of net profits in accordance with Section 349 of the Act with the relevant
details of the calculation of the commission payable by way percentage of such profit to
the directors (including managing directors) or manager, if any.
4B. The profit and loss account shall further contain to give by way of a note detailed
information in regard to amounts paid to the auditor, whether as fees, expenses or otherwise
for services rendered.
(a) as auditor, and

(b) as adviser in any other capacity in respect of:
(i) taxation matters,
(ii) company law matters,

(iii) management services; and
(c) in any other manner.
[The Institute of Chartered Accountants of India has stated, in its statement styled
‘Payment to Auditors for other Services’, that the remuneration to the auditor for
other services should be classified as follows:

(1) for tax representations;
(2) for company law matters;
(3) for management services;

(4) for internal auditing; and
(5) for other services.]
4C. In the case of manufacturing companies, the profit and loss account shall also contain by
way of a note, in respect of each class of goods manufactured, detailed quantitative
information in regard to the following, namely:

(a) the licensed capacity (where license is in force);
(b) the installed capacity; and
(c) the actual production.

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