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The Ministry of Corporate Affairs (MCA), vide a notification dated 24 March 2021 had issued various key amendments to Schedule III of the Companies Act, 2013. As a part of the amendments issued, companies were required to mandatorily round off the figures appearing in the financial statements, based on their ‘total income’4

In this regard, MCA, vide a clarification dated 26 September 2022 has stated that if the companies provide absolute figures in various e-forms i.e., AOC-4, etc., the same would not be treated as incorrect certification by the professionals.

To access the text of the Schedule III amendments, please click here

  1. As per Schedule III (Divisions I, II and III), the rounding off requirements are as below:
    • Total Income < Rs. 100 Crores - Round off to the nearest hundreds, thousands, lakhs or millions or decimal thereof
    • Total Income >= Rs. 100 Crores - Round off to the nearest lakhs, millions or crores, or decimal thereof.

Action Points for Auditors

Few companies have prepared their financial statements and submitted annual returns providing absolute amounts. With this clarification, auditors of such companies, need not highlight the fact that amounts have not been rounded off, and need not report it as a non-compliance of Schedule III in their audit report.

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