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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section(i)

PUBLISHED BY AUTHORITY

No. 270] NEW DELHI, FRIDAY, NOVEMBER 9, 1973 "KARTIKA 18, 1895

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Department of Company Affairs)

NOTIFICATION

New Delhi, the 30th. October. 1973

GSR 494(E).—In exercise of the powers conferred by sub-section (1) of section 641 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following further alterations in Schedule VI to the said Act, namely;—

In the said Schedule — I. In "Part I—Form of Balance Sheet", (l) in the third column headed "Assets"—

(A) under th sub-heading "INVESTMENT": after item (3), the following item shall be inserted, namely:—

"(4) Investments in the capital of partnership Firms";

(B) under the sub-heading "CURRENT ASSETS, LOANS AND ADVANCES", under "(B) LOANS AND ADVANCES", existing item 8 shall be re-lettered as sub-item (a) thereof and after sub-Item (a) as so re-lettered, the following sub- item shall be inserted, namely:—

"(b); Advances and Loans to partnership firms in which the company or any of its subsidiaries is a partner,";

(1559)

(2) in the Notes below the Table, for note (1), the following notes shall be substituted, namely:—i

(1) 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 Investments 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 capita] of partnership firms, the names of the firms (with the names of all their partners, total capital and the share of each partner) shall be given in the statement.";

II. In "Part II—'Requirements as to Profits and Loss Account", (1) in para- graph 3,—

(A) in sub-paragraph (i), for item (a), the following item shall be substituted, namely: —

"(a) The turnover, that is, the aggregate amount for which sales are effected by the company, giving the amount of sales in respect of each class of goods dealt with by the company, and indicating the quantities of such sales for each class separately.";

(B) For sub-paragraph (ii), the following sub-paragraph shall be substituted, namely: —

•

"(ii) (a) In the case of manufacturing companies,—

(1) The value of the raw material consumed, giving item-wise break-up arid indicating the quantities thereof. In this break-up, as far as possible, all important basic raw materials shall be shown as separate items. The intermediates or components procured from other manufacturers may, if their list is too large to be included In the break-up, be grouped under suitable headings without mentioning the quantities, provided all those items which in value Individually account for 10 per cent or more of the total Value of tho raw material consumed shall be shown as separate and distinct items with quantities thereof in the break-up.

(2) The opening and closing stocks of goods produced, giving break-up in respect of each class of goods and indicating the quantities thereof.

(b) In the case of trading companies, the purchases made and the opening and closing stocks, giving break-up in respect of each class of goods traded in by the company and indicating the quantities thereof.

(c) In the case of companies rendering or supplying services, the gross income

derived from services rendered or supplied.

(d) In the case of a company, which falls under more than one of the cate- gories mentioned in (a), (b) and (c) above, it shall be sufficient com- pliance with the requirements herein if the total amounts are shown In respect of the opening and closing stocks, purchases, sales and con- sumption of raw material with value and quantitative break-up and the gross income from services rendered is shown.

(e) In the case of other companies, the gross income derived under different

heads.

NOTE 1.—The quantities of raw materials purchases, stocks and the turnover, shall be expressed in quantitative denominations in which these are normally purchased or sold in the market.

NOTE 2.—For the purpose of item (ii)(a), (ii)(b). and (ii)(d), the items for which the company is holding separate industrial licences, shall be treated as separate classes of eoods, butl where a company has more than one industrial licence for production of the same item at diiferent places or for expansion of the licenced capacity, the item covered by all such licences shall be treated as one class. In the case of trading companies, the imported items shall be classified in accordance with

the classification adopted by the Chief Controller of Imports and Ex- ports in granting the import licences.

NOTE 3.—In giving the break-up of purchases, stocks and turnover, items like spare parts and accessories, the list of which is too large to be included in the break-up, may be grouped under suitable headings without quan- tities, provided all those items, which In value individually account for JO per cent or more of the total value of the purchases, stocks, or turnover, as the case may be, are shown as separate and distinct items with quantities thereof In the break-up.";

(C) In sub-piiragraph (x),—•

(1) in item (f), for Note 2, the following Note shall be substituted, namely: —

"NOTE 2.—In respect of sub-items (1) and (2), the Profit and Loss Account shall also contain, by way of a note, break-up of the expenditure incurred on employees who (1) if employed throughout the financial year were In receipt of remuneration for that year which in the aggregate was not less than Rs. 36,000/- or (ii) if employed for a part oj" the financial year were In receipt of remuneration for any part of that year at a rate which in the aggregate ivas not less than Rs, 3,000/- per month. The said note shall also indicate the number of employees falling In each of the above two categories. Remuneration for this purpose has the same meaning as in the Explanation to section 198 and shall further include honoraria. The monetary value of the perquisites shall be calculated in accordance with the provisions of the Income- tax Act, 1961 (43 of 19G1) and the rules mnde thereunder,",

(il) in item fi), after the words ''Miscellaneous expenses", the following shall be inserted, namely: —

"provided that any it^m under which the expenses exceed 1 per cent of the total revenue of the company or Rs. 5,000/-, whichever is higher, shall be shown as a separate anr1 distinct item against an appropriate account head in the Profit and Loss Account and shall not be combined with any other item to be shown under 'Miscellaneous Expenses.';

CD) In sub-paragraph (xii), In item (a), after the words "Profits or losses on investments'", the following words shall be inserted, namely.:—

"showing disiinctly the extent of thr* profits or losses earned or Incurred on account of membership of a nartnership firm.";

(2) for paragraph 4C, the following pa-agraphs shall be substituted, namely: —

"4C. In the ease of manufacturing companies, the profit and loss account shall¹ also contain, bv way of 9 note, in respect of each class of goods "manufactured, detailed quantitative information in regard to the fol- lowing, namely: —

(a) the licenced capacity (wh^re licence is in force);

(b) the installed capacity; and

(c) the actual production.

NOTE ] .—The licensed capacity and installed capacity of the company as on the last date of the year to which the profit and loss account relates, shall be mentioned against Items 00 and (b) above respectively.

NOTE 2.—Against item (c>, the actual production in respect of the finished products meant for sale shall be mentioned. In cases where sem'- processed products are also sold by the company, separate details thereof shall be given.

NOTE 3.—For the purposes of this parfi \$62 THE GAZETTE OF INDTA EXTRAORDINARY [PART II—

4D. The profit and loss account shall also contain by way of a note the follow- ing information, namely:-—

(a) value of imports calculated on C.I.F. basis by the company during the financial year in respect of: —

(i) raw materials; (ii) components and spare parts; (iii) capital goods;

(b) expenditure in foreign currency during the financial year on account of royalty, know-how, professional, consultation fees, interest, and other matters;

(c) value of all imported raw materials, spare parts and components con- sumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;

(d) the amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the number of non-resident share- holders, the number of shares held by them on which the dividends were due and the year to which the dividends related;

(e) earnings in foreign exchange classified under ths following heads, namely:—

(1) export of goods calculated on F.O.B, basis; (li) royalty, know-how, professional and consultation fees; (iii) interest and dividend; (iv) other income, indicating the nature thereof."

[No. F. 28/1/71-CL.V]

P, B. MENON, Jt. Secy.

±566 t "E GAlEltfi 6tf INDIA fiXT&AOktilNAkV PART H-SEC. 3tl)] PBlNTlro BY THK MANAGER, GOVERNMENT OP INDIA PRESS, MINTO HOAD, N "W DHtHI AND PUBIIBHED BY THK CONTROLLER OF PUBLICATIONS, DELHI, 1 " 73