ALTERATIONS IN SCHEDULE VI OF COMPANIES ACT
The Government in the
Department of Company Affairs (DCA) has issued a Gazette notification
making alterations in Schedule VI of the Companies Act 1956 to
provide for additional disclosures in Part I Form of Balance Sheet
with immediate effect.
Accordingly, in Part
I-Form of Balance Sheet under the column "Instructions in accordance
with which liabilities should be made out" in the second paragraph
under the sub-heading "Current Liabilities and Provisions" companies
are required to substitute the paragraph "the name(s) of small
scale industrial undertaking(s) to whom the company owes any sum
together with interest outstanding for more than thirty days are
to be disclosed."
The notification
is intended to protect the interests of investors by mandating
the companies to disclose minufest of details of its liabilities
and assets in its balance sheet to help investors take correct
decisions.
The notification
has been issued under Sub-Section (1) of Section 641 of the Companies
Act 1956.
