What it means
Section 129 of the Companies Act asks companies to prepare financial statements in the form of Schedule III. Division I is for companies following Accounting Standards, Division II for Ind AS companies and Division III for NBFCs on Ind AS. The balance sheet groups items as equity and liabilities (shareholders’ funds, non-current and current liabilities) and assets (non-current and current). An amendment notified on 24 Mar 2021 added disclosures such as ageing schedules for trade receivables and payables, promoter shareholding and key ratios.
Example
Kaveri Agencies Pvt Ltd’s trade receivables of ₹9,62,000 on 31 Mar 2027 must be shown in the notes by age, roughly:
| Outstanding for | Amount |
|---|---|
| Less than 6 months | ₹8,10,000 |
| 6 months to 1 year | ₹1,02,000 |
| 1–2 years | ₹50,000 |
Its creditors are split the same way, with dues to micro and small enterprises shown separately.
Common mistakes
- Grouping a loan repayable in 12 months as non-current.
- Leaving out the MSME creditors split.
- Mixing ledger names into notes instead of Schedule III heads.
In MyRecords
MyRecords maps your ledgers to Schedule III (Division I) heads: those with a clear type are placed for you, and you set the rest once with your CA. It produces the balance sheet, the statement of profit and loss with earnings per share, and the notes in that layout, next to the cash flow and trial balance. Your auditor still reviews and signs the final statements.