Amendment in Disclosure Requirement Cash in Hand by Auditors under Companies Act , 2013

Pursuant to the Demonetisation in Indian Economy , the government has not come up with the new disclosure requirement for the Company to be included in the Audit disclosure under Schedule III of Companies Act 2013. Every company has to disclose the details of Specified Bank Notes held and transacted by them during the period up to 30 December 2016. Copy of the Notification attached herewith.

In the Companies Act, 2013 (hereinafter referred to as the principal Act), in Schedule III, in Division I, in Part I under the heading “General instructions for preparation of Balance Sheet” in paragraph 6, after clause ‘W’, the following clause shall be inserted namely:-

 “X. Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016 as provided in the Table below:- 

	SBNs	Other denomination notes	Total
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016

Explanation : For the purposes 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 S.O. 3407(E), dated the 8th November, 2016.”.  

SBNs as per the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016: 

"Bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees (hereinafter referred to as specified bank notes)."

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