The 28 notes

Twenty-eight notes under V1.2, twenty-five under the LLP format, thirty-one under Division I, fifty-seven under Division II, sixty under Division III and twenty-four under the NPO format — each a prescribed table. Understanding two things about them explains almost every question they raise.

A note is a prescribed table, not a list of what has figures

(a) Term loan - from banks prints whether or not the entity has one — under (A) Secured, above Total secured borrowings.

The structure is fixed and the figures are poured into it, never the other way round. A CA reads down the same rows in the same order in every file they open, which is the whole point of a prescribed format.

The numbering has gaps, and that is correct

Notes keep the numbers V1.2 gives them. A note that does not apply is suppressed, and the numbers either side keep theirs — so you will see note 4 followed by note 6.

The alternative would be renumbering, which would mean the same note carried different numbers in different files. Comparing two years, or two entities, would become an exercise in translation.

When a note is suppressed

Nothing classified into itSuppressed

The entity has none of that thing. The note does not print.

Waiting on an entry from youReported as missing data

Not suppressed quietly — listed on the Checks sheet.

The commonest reason a note is missing

An unentered non-current split. Notes 5, 7, 8, 15 and 16 cannot appear at all while the whole balance is treated as current — however much money sits in the grouping.

Where a note's figures come from

Each amount row draws from a specific Classification 4 sub-head. Classify a ledger to that sub-head and its balance appears on that row.

Those bindings come from the template itself, so a line's source is V1.2's answer rather than OptiVida's interpretation of it.

The four built differently

Notes 3, 6, 13 and 14 are not two columns against a list of labels — they are movement grids and schedules — so they are built directly.

Under the LLP format

The LLP template prints the same figures under its own numbers. Reserves stay note 4 and deferred tax note 6; borrowings, provisions and loans and advances are one note each — 5, 8 and 13 — carrying the long-term and short-term figures in two pairs of columns; note 3 splits into 3a, the partners' contribution account, and 3b, the current account; and the P&L notes run 19 to 25.

Notes 3a and 3b are built from the books rather than typed. Each partner's opening and closing are their ledgers'; drawings and the year's credits come from the ledgers' turnover; and where the connector fetched the entries behind the partners' accounts, the credits are split into money introduced, remuneration, interest and share of profit by the ledger each was posted against. The share of profit is your share percentage applied to the year's result. Every movement cell stays editable, the closing is computed, and the tie-out says whether the row still closes on the ledger.

Two things the template prints that V1.2 does not: NA in the long-term columns of loans repayable on demand, which have no long-term half; and "(specify nature)" rows that gather the lines the template has no row of its own for, each figure under its own name.

Under the company format

A company's notes 1 to 28 are V1.2's tables under the same numbers — both are Schedule III — with the changes the statute and its 2021 amendment prescribe, and three notes of the company's own.

Note 3 — Share capital

The paid-up capital by class is read off the ledgers; everything else on the note is yours: authorised and issued capital, the reconciliation of shares, shareholders holding more than 5%, the promoters' holding with the change in the year computed, the par value of each class, and the words on rights, options, bonus shares, convertible securities, calls unpaid and forfeited shares. Money received against share warrants and share application money pending allotment print here too, the latter with the five particulars the statute asks — shares proposed, premium, the period for allotment, whether the authorised capital suffices, and why any of it is pending.

Note 4 — Reserves and surplus

A movement, not a list: each reserve opens on last year's closing and closes on the ledger, with additions and deductions as your cells; the surplus opens, adds the year's profit, and takes the appropriations you enter — dividend, tax, transfers. Where the parts do not close on the ledger the note prints an unexplained movement line and the Checks sheet fails until you account for it.

Notes 5 and 9 — borrowings

Secured and unsecured by kind, with bonds and debentures and public deposits among them. Current maturities of long-term debt sit under short-term borrowings, as the 2021 amendment moved them. Beneath each note are your words: the nature of security, the terms of repayment and interest, the loans guaranteed by directors, and any continuing default with its period.

Notes 7, 16 and 17 — the statute's own rows

Other long-term liabilities open on trade payables due beyond the operating cycle, in the micro and small enterprises and others classes; other non-current assets open on long-term trade receivables, secured, unsecured and doubtful, less the allowance for bad and doubtful debts; and inventories print stores and spares, loose tools and goods-in-transit on their own lines. Loans and advances speak of related parties, not partners, and finance costs carry no interest on partners' capital.

Note 13 — Property, plant and equipment

V1.2's schedule on either presentation, with three columns of the company's own for each class: acquisitions through business combinations, revaluation and other adjustments, and impairment losses or their reversals. The carrying values stay the ledgers'; the movements are yours.

Note 14 — Investments

The quoted and unquoted grid as V1.2 prints it, then the investees by name: each body corporate with whether it is a subsidiary, associate, joint venture or controlled special purpose entity and the nature and extent of the holding, and each partnership firm with its partners, their shares and the firm's capital.

Notes 10 and 18 — the ageing schedules

Every bill Tally holds is aged from its due date into the statute's periods, both years, with MSME dues told apart by your classification of the party. Disputed and doubtful amounts are your cells per period, deducted from the undisputed row. A balance no bill covers prints on its own line, so the schedule always totals to the face.

Note 28 — Other expenses

Closes on the payments to the auditor by kind and the CSR disclosure, entered as memorandum rows.

Note 29 — Earnings per share

From the profit for the year and the weighted average number of shares you enter, basic and diluted, in rupees per share whatever the report's unit. The Statement of Profit and Loss ends on the same two figures.

Note 30 — Ratios

The eleven ratios the statute prescribes, both years, with the change in per cent. A change of more than 25% needs your explanation, and the Checks sheet names each ratio still waiting for one. The debt service coverage ratio reads the principal repaid from a cell on the note. Return on capital employed is measured on the tangible net worth plus total debt and the deferred tax liability, as the Guidance Note defines it.

Note 31 — Additional regulatory information

Seventeen items answered in words — title deeds, benami property, wilful default, struck-off companies, layers, undisclosed income, crypto and the rest, with the words the statute asks elsewhere gathered here: unutilised issue proceeds, realisable value of assets, repatriation restrictions, assets under lease, revaluation history, the basis of valuing investments, exceptional and prior period items, the operating cycle. Then the tables: title deeds not held in the company's name, loans to promoters, the ageing of capital work-in-progress and intangibles under development, struck-off companies, contingent liabilities and commitments, dividends proposed and in arrears, amounts due by directors and officers, amounts set aside to and withdrawn from reserves and provisions, and the foreign-currency schedule — imports, expenditure, imported and indigenous consumption, dividends remitted, earnings. A report for 2016-17 also prints the Specified Bank Notes table. Nil and Not applicable are answers; the Checks sheet counts what is still blank.

Two checks of the company's own

The statute makes rounding mandatory: a company with turnover under Rs.100 crore reports in hundreds, thousands, lakhs or millions, and from Rs.100 crore in lakhs, millions or crores. Choose the unit on Basic Info; a report left in rupees fails the check. And any item of income or expense over 1% of revenue or Rs.1,00,000 must have its own line: the Checks sheet names each ledger still pooled under a miscellaneous or "other" row.

Under the Ind AS company format

Fifty-seven notes, numbered 3 to 57 in the order the two faces print their lines, so a note's number is where to look for it and nothing else.

Notes 4 to 10 — what Ind AS holds apart

Right-of-use assets, investment property and biological assets are lines of their own, not part of property, plant and equipment; investments, trade receivables, loans and other financial assets are financial assets, each with its own note and its own current and non-current halves.

Note 21 — other equity

Every reserve by name, each closing on the ledger, and the Statement of Changes in Equity printing the same columns. Retained earnings take the year's profit; each item of other comprehensive income goes to the column its own reserve names.

Notes 32 to 42 — the Statement of Profit and Loss

Revenue through other expenses as Division II words them, then the excise duty, the impairment losses on financial assets, the gains and losses on financial instruments, and other comprehensive income split into the items that will be reclassified to profit or loss and those that will not.

Notes 45 to 56 — beyond Schedule III

Twelve notes for what Ind AS asks and Schedule III does not: the fair values and their hierarchy, financial instruments by category, the expected credit loss allowance and its movement, the leases with their maturities, the defined benefit obligation, the tax reconciliation, the revenue disaggregation, related parties, segments, capital management, and the reconciliations a first-time adopter prints. Almost every figure on them is yours: none of it is in the books, and the Checks sheet lists what is still unanswered rather than guessing.

Note 57 — the regulatory information

Division II's own list as substituted in 2021, with the title deeds table carrying the line of the Balance Sheet each property sits on. The items the 2019 Annexure asked of a Division I company and Division II does not — the Specified Bank Notes, the value of imports, the amounts set aside — are not asked here.

Under the NBFC format

Sixty notes, numbered from 1 in the order the statements reach them, with the additional regulatory information last. Nine of them are not lists at all.

The measurement matrices

Loans, investments, debt securities, borrowings, deposits and subordinated liabilities on the Balance Sheet, and interest income, finance costs and impairment in the Statement of Profit and Loss, are each analysed across the Ind AS 109 measurement categories — at amortised cost, at fair value through other comprehensive income, at fair value through profit or loss, designated at fair value through profit or loss where the schedule offers it, and at cost. Loans and investments also tally In India against Outside India, and the Checks sheet holds that tally to the total.

Derivatives

Each class by notional and by fair value as an asset and as a liability, and again by the hedge it serves. Only the notional is asked of you: the ledger already is the derivative's fair value, so asking twice would invite two answers to one question.

The four borrowing notes

Debt securities, borrowings other than debt securities, deposits and subordinated liabilities each carry their own note, because each carries its own line on the face.

The four ratios and the maturity analysis

An NBFC discloses CRAR, Tier I CRAR, Tier II CRAR and the Liquidity Coverage Ratio — not Schedule III's eleven. And because the face is laid out by liquidity, the twelve-month split it does not carry is disclosed instead: for each asset and liability, what is recoverable or settled within twelve months and what after.

Loans to promoters, directors and KMPs

Given twice over, once for loans repayable on demand and once for those without any specified terms, each with the four classes of borrower and last year beside this year. The amount is the gross carrying amount — before the provision or impairment allowance the Balance Sheet nets off. This is the commentary's format for an NBFC; Schedule III asks for the two terms in one table, so if you change a report's Division the split is asked again rather than guessed.

The fair value changes

The net gain printed twice over — once by where it arose, and once split between what was realised and what was not. The schedule requires the two totals to agree, and the Checks sheet says so once you begin the split.

Under the NPO format

Twenty-four notes, numbered from 1 in the order the statements reach them. Four of them exist nowhere else.

Note 3, NPO Funds

Not an owners' or partners' account: the Guide prescribes three different movements, not one grid. The corpus shows an opening balance, additions and a closing balance and nothing else, because a corpus cannot be utilised. Each designated and each restricted fund shows what was transferred in or received and what was utilised. And the surplus/(deficit) inside the General Fund shows the year's excess after appropriations. Beneath them, the bank balances and investments each fund is earmarked in, disclosed fund by fund, so a reader can see which of the organisation's cash is already spoken for.

Note 10, investments

Classified by the security — Central Government securities, State Government securities, other securities, and investment property in the long-term half only. Not by whether the holding is quoted: that is a separate aggregate disclosure at the foot of the note, the quoted amount with its market value and the unquoted amount.

Note 13, inventories

Items held for distribution free of cost or at a nominal amount are shown separately and valued at the lower of cost and replacement cost, and the fair value of non-monetary grants on hand is disclosed. No other format asks for either.

Note 24, non-monetary grants and donations

The fair value and quantitative details of things received in kind and then given away or sold, as a movement: opening, receipts, distribution, sale, closing. Nothing in a trial balance records a consignment of blankets arriving and being handed out, so the four movements are yours to enter and the closing balance is computed from them.

If a figure is on the wrong row

The row is bound to a sub-head, so a figure on the wrong row means a ledger classified to the wrong sub-head. Correct it on TB CY and the note follows immediately.