Section A:
Disclosures and reporting in financial statements for the year ended 31st March 2017 for ‘Specified Bank Notes’ (SBN)
Compilers’ Note
The Ministry of Corporate Affairs vide notifications dated March 30, 2017 notified the Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to the Companies Act, 2013. Pursuant to these notifications, a new clause (d) has been inserted in Rule 11 of the Companies (Audit and Auditors) Rules, 2014 requiring auditors to report on whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company. Amendment has also been made to Schedule III to the Companies Act, 2013 to require that every company shall disclose the details of Specified Bank Notes held and transacted during the period from 8th November, 2016 to 30th December, 2016 in the specified format.
The ICAI, looking to the urgency to provide guidance to members for the disclosure and reporting as per the above MCA notifications, has on 15th April 2017 issued an implementation guide for the same.
Given below is an illustration of disclosure and reporting for the above in the financial statements for 2016-17.
Infosys Ltd. (financial statements dated 13th April 2017)
From Notes to Accounts
Disclosure on Specified Bank Notes (SBNs)
During the year, the company had specified bank notes or other denomination note as defined in the MCA notification
GSR 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8th November, 2016 to 30th December, 2016, the denomination wise SBNs and other notes as per the said notification is given below:
In Rs.
Particulars |
SBNs* |
Other denomination notes |
Total |
Closing cash in hand on November 8, 2016 |
232,000 |
352,117 |
581,117 |
(+) permitted receipts |
– |
561,236 |
561,236 |
(-) permitted payments |
(98,000) |
(765,438) |
(863,438) |
(-) Amount deposited in banks |
(134,000) |
– |
(134,000) |
Closing cash in hand as on December 30, 2016 |
– |
147,915 |
147,915 |
*For the purpose of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number SO 340E, dated the 8th November, 2016.
From Auditors’ Report
With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. …
ii. …
iii. …