The below mentioned article provides a format of abridged balance sheet.
As an economy device, the Companies (Amendment) Act 1988 introduced the concept of Abridged Balance Sheet vide Section 219(1) (b) (iv). As per this provision, the companies need not send the detailed Balance Sheet together with many schedules and reports to shareholders and may send only the Abridged Balance Sheet, Profit and Loss Account, Directors’ Report and Auditors’ Report as annual report.
However, SEBI has prescribed that a detailed Balance Sheet has to be furnished in the case of listed companies:
Notes to the abridged balance sheet and the abridged profit and loss account:
1. The amounts to be shown here should be the same as shown in the corresponding aggregated heads in the accounts as per Schedule VI or as near thereto as possible.
2. The total amount of contingent liabilities and that of capital commitments should be shown separately.
3. All notes forming part of the accounts as per Schedule VI to which specific attention has been drawn by the auditors or which form the subject-matter of a qualification by the auditor should be reproduced.
ADVERTISEMENTS:
4. If fixed assets are revalued, the amount of revaluation should be shown separately for the first five years subsequent to the date of revaluation.
5. Any item which constitutes 20% or more of the total income or expenditure (including provisions) should be shown separately.
6. Amount, if material, by which any items shown in the profit and loss account are affected by any change in the basis of accounting, should be disclosed separately.
7. If no provision is made for depreciation, the fact that no provision has been made shall be stated along with the quantum of arrears of depreciation computed in accordance with Section 205(2) of the Act.
ADVERTISEMENTS:
8. Market value of quoted investments (both of current year and also of previous year) should be mentioned.
9. Any note forming part of the accounts as per Schedule VI which is in the nature of any explanation regarding compliance with any law should be reproduced.
The above stated salient features of balance sheet and profit and loss account should be authenticated in the same manner as the main accounts are to be authenticated.
Auditors’ Report Should be given in full
ADVERTISEMENTS:
Directors’ Report Should be given in full except information about employees under section 217(2A).
[Signed by Directors/Secretary in the manner prescribed in Section 215(1)]