Schedule III Financial Statements from a Trial Balance

About the Schedule III Financial Statements from a Trial Balance

Draws up a set of financial statements from a trial balance: the balance sheet and the statement of profit and loss in the layout of Schedule III to the Companies Act, 2013 (Division I, for companies following the Accounting Standards) — or ICAI’s illustrative formats for non-corporate entities and for limited liability partnerships — with the cash flow statement by the indirect method, numbered notes and comparatives.

• Import the closing trial balance from Tally (Excel or XML), Busy, Zoho Books or any spreadsheet; group totals exported with the ledgers are found and left out, and a second file fills the previous year by ledger name.
• Map each ledger to a head: the tool suggests one from the ledger’s name and group, and the mapping is saved with the client for next year.
• Notes follow the schedule: share capital with the shareholders over 5% and the promoters, reserves with their movements, borrowings secured and unsecured with current maturities apart, trade payables with dues to micro and small enterprises and the ageing schedules, property, plant and equipment (from the fixed asset register if you have it), other expenses with each large item on its own, and the ratios with the explanation for any change over 25%.

With a Premium pass, download a PDF, an Excel workbook with live totals, and a CMA data sheet for the CMA report generator; without one, the statements are a free preview, with the figures after the first lines of each, and the ratios, hidden. The trial balance never leaves your browser.

Common uses

• Prepare the year’s financial statements of a private company or a firm from the books, for audit or for the bank.
• Re-cast a Tally balance sheet into the Schedule III layout with the notes it asks for.
• Check the ratios and their movements before the board meeting.
• Feed audited figures into CMA data for a working capital proposal.

What the statements follow

• Companies (Division I): the balance sheet in the order of Part I — shareholders’ funds, share application money, non-current and current liabilities, then non-current and current assets — and the statement of profit and loss of Part II, ending with earnings per share. Current and non-current follow the schedule’s tests (the operating cycle, twelve months after the reporting date). Trade payables are split between micro and small enterprises and others on the face.
• Firms, proprietorships and LLPs: ICAI’s illustrative formats, with owners’ or partners’ funds in place of shareholders’ funds, a capital and a current account for each owner, “cash and bank balances”, and partners’ remuneration before tax.
• Rounding: Schedule III ties the unit to total income — under ₹100 crore to the nearest hundreds, thousands, lakhs or millions (or decimals of them); ₹100 crore or more to the nearest lakhs, millions or crores. The tool warns when the unit chosen is not one of those.
• Comparatives are shown except for an entity’s first financial statements.

How the figures are built

Every amount comes from a ledger, an adjustment entered as a journal (a debit head and a credit head) or a closing stock entered outside the trial balance (debited to the stock and credited to the profit and loss account) — so a balanced trial balance always gives a balanced balance sheet. The profit for the year is added to the surplus (companies) or to the owners’ accounts, after the dividends, transfers and drawings in the trial balance.

The cash flow statement (AS 3, indirect method) starts from the profit before tax, adds back depreciation and finance costs, takes out interest and dividend income and the profit or loss on sales of assets and investments, and adds the changes in working capital; taxes paid are the tax expense adjusted for the change in the provision, the advance tax and the deferred tax balance. Purchases of fixed assets are the change in the net block plus depreciation plus the book value of what was sold. Cash and cash equivalents are cash, current accounts, cheques on hand and deposits of up to three months; other bank deposits are investing activities.

Notes, ratios and the other files

• Notes are numbered in the order of the face: 1 and 2 are the entity information and the accounting policies (your text), then one note for each line with a balance, then contingent liabilities and commitments, the MSMED Act disclosure, earnings per share and the ratios.
• Other expenses list the items Part II names (stores and spares, power and fuel, rent, repairs, insurance, rates and taxes, payments to the auditor) and show on its own any other ledger above 1% of revenue from operations or ₹1,00,000, whichever is higher.
• Ratios: the eleven ratios of the additional regulatory information, each with its numerator and denominator, year-end balances, and a box for the explanation Schedule III asks for when a ratio moves by more than 25%.
• Fixed asset register: load its PPE note file to show the additions, disposals and depreciation of each class; the tool checks that the register’s net block and depreciation agree with the trial balance.
• CMA data: the statements as the CMA report generator’s figures, by year, ready to drop into it.

Limitations

• Division I only: companies following Ind AS (Division II) and non-banking finance companies (Division III) are not covered.
• No consolidation, discontinued operations or segment information.
• The ratios use year-end balances; if your company uses averages, change them in the workbook and explain the basis.
• Notes the trial balance cannot give — related parties, the additional regulatory information, the terms of each loan, the CWIP completion schedule — are written in as other notes.
• Ledger heads are suggestions from names and groups; every mapping needs a preparer’s review, and the statements need the board’s approval and, where required, an audit.

Privacy

Everything is calculated in your browser. Trial balances, saved clients and the files you import are never uploaded. The client on screen is kept in this browser as you type, so it is still there when you come back (New blank client replaces it); saved clients stay only in this browser until you delete them.