University · Schedule III Companies Act 2013

Schedule III Mapping Validator.

Paste your trial balance account names. Each is auto-mapped to a Schedule III caption (Division I — AS or Division II — Ind AS). Unmapped accounts flagged for review.

Paste accounts (one per line)

8 accounts · 3 unmapped

Mapped Schedule III captions

Account	Schedule III caption	Section
Cash on Hand	Cash and Cash Equivalents	Current Asset
GST Input Credit	Other Current Assets	Current Asset
Provision for Gratuity	Unmapped — review	—
Interest on Term Loan	Borrowings (Non-current) — Term Loan from Banks	Non-current Liability
Debenture Redemption Reserve	Unmapped — review	—
Advance from Customers	Other Current Liabilities — Advance from Customers	Current Liability
Unamortised Borrowing Cost	Unmapped — review	—
Software License	Intangible Assets	Non-current Asset

Schedule III — the FS structure.

Schedule III of the Companies Act 2013 prescribes the format of the balance sheet, statement of profit and loss, and notes for every company. Division I applies to companies using AS (Companies (Accounting Standards) Rules 2021); Division II applies to Ind AS companies (Companies (Indian Accounting Standards) Rules 2015); Division III applies to NBFCs under Ind AS.

Common mapping errors auditors catch: GST input credit shown as current asset vs “other current assets”, MSME vs non-MSME trade payables split (mandatory disclosure since 2021 amendment), CWIP ageing schedule, RoU asset shown separately from PPE.

On CORAA

CORAA’s Reporting module maps the entire trial balance to Schedule III captions on ingestion, surfaces unmapped accounts, generates the Division II disclosure notes including the ageing tables, MSME split, ratios, and CARO 2020 references. See Reporting.

Ind AS 115 Revenue Tester Gratuity Calculator

How Schedule III mapping works

Schedule III to the Companies Act 2013 prescribes the format of the balance sheet, statement of profit and loss, and notes — the structural template every company in India must use when preparing its financial statements. The schedule has three Divisions: Division I for companies preparing FS under AS (Companies (Accounting Standards) Rules 2021); Division II for Ind AS companies (Companies (Indian Accounting Standards) Rules 2015); Division III for NBFCs that prepare FS under Ind AS.

The mapping exercise converts a trial balance — typically several hundred ledger accounts — into roughly 30 Schedule III captions on the balance sheet (Equity, Borrowings, Trade Payables, PPE, etc.) and roughly 10 captions on the P&L (Revenue from Operations, Cost of Materials Consumed, Employee Benefits Expense, etc.). Each caption has prescribed sub-classifications and disclosure requirements in the notes.

Several recent amendments have added granularity: (a) MCA Notification dated 24 March 2021 mandated MSME vs non-MSME split for trade payables, ageing buckets for trade receivables / trade payables / CWIP / intangible assets under development, and additional regulatory ratios; (b) the same notification added required disclosures on benami property, struck-off-companies dealings, related parties, and Crypto / Virtual Currency holdings.

Worked example — common mis-classifications

A finance team has prepared a draft trial balance with the following accounts. The auditor reviewing the mapping spots issues.

Inputs

Account name in TBMapped to (suggested)

GST Input CreditOther Current Assets

Provision for GratuityProvisions (Non-current)

Bank Cash CreditBorrowings (Current)

Software LicenseIntangible Assets

Output

Issues caught3

GST input credit — current assetShow separately on face of BS

Gratuity provisionSplit current vs non-current per Ind AS 19

Software licenseCheck Ind AS 38 capitalisation criteria

Common Schedule III mis-classifications: GST input credit shown under "trade receivables" instead of "other current assets"; bank cash credit shown as a long-term borrowing instead of current; software annual subscription expensed but lumped with capitalised software in PPE; trade payables not split between MSME and non-MSME (mandatory since 2021 amendment); CWIP ageing schedule omitted from notes.

Common mistakes

Not splitting MSME vs non-MSME trade payables

The 2021 amendment to Schedule III made it mandatory to separately disclose dues to MSMEs (registered under MSMED Act 2006) and dues to other creditors. Sub-classification by ageing (outstanding for less than 1 year, 1-2 years, 2-3 years, more than 3 years) is also required.

Missing the CWIP / intangible-under-development ageing table

Schedule III now requires an ageing schedule for CWIP and intangible assets under development — split by projects in progress and projects temporarily suspended, in 1Y / 1-2Y / 2-3Y / 3Y+ buckets. Auditors need to verify this disclosure during FS finalisation.

Showing revaluation reserve as a free reserve

Schedule III Part I requires revaluation reserve to be shown separately under "Other Equity". For Section 186, Section 197, and dividend distribution computations, revaluation reserve is NOT a free reserve and must be excluded.

Lumping current and non-current portions of borrowings

Schedule III requires the current portion of long-term borrowings (i.e., installments due within 12 months) to be shown under "Current Liabilities — Borrowings". A common error is showing the entire term loan under non-current borrowings.

Missing Schedule III ratios in notes

The 2021 amendment requires disclosure of 11 ratios (current ratio, debt-equity ratio, debt service coverage, return on equity, etc.) in the notes, with explanation of any change of 25%+ from previous year. Auditors must verify the computation and the explanation.

Frequently asked questions

What is Schedule III to the Companies Act 2013?+

Schedule III prescribes the format and minimum disclosure requirements for the balance sheet, statement of profit and loss, statement of changes in equity, and cash flow statement of every company. It has three divisions — Division I (AS companies), Division II (Ind AS companies), Division III (NBFCs under Ind AS).

What is the difference between Schedule III Division I and Division II?+

Division I is for non-Ind AS companies — those preparing financial statements under the Companies (Accounting Standards) Rules 2021. It follows the older line-item disclosure pattern. Division II is for Ind AS companies and aligns with Ind AS presentation requirements (e.g., Other Equity instead of Reserves and Surplus, RoU asset separately on the face of the BS, OCI shown in SOPL).

When does Division III apply?+

Division III applies to NBFCs (including HFCs after their migration to RBI regulation in 2019) that prepare financial statements under Ind AS. It has industry-specific captions — financial assets vs other assets, loans, debt securities, deposits — reflecting the financial-services balance sheet structure.

What are the mandatory ratios in the 2021 amendment?+

The amendment requires disclosure of: (i) Current Ratio, (ii) Debt-Equity Ratio, (iii) Debt Service Coverage Ratio, (iv) Return on Equity Ratio, (v) Inventory turnover ratio, (vi) Trade Receivables turnover ratio, (vii) Trade Payables turnover ratio, (viii) Net capital turnover ratio, (ix) Net profit ratio, (x) Return on Capital employed, (xi) Return on investment — with explanation if change >25%.

What is the MSME disclosure requirement?+

Schedule III requires separate disclosure of trade payables to MSMEs and others, with ageing in 1Y / 1-2Y / 2-3Y / 3Y+ buckets. This is in addition to Section 22 of MSMED Act 2006 which requires every company to disclose in its notes: principal amount, interest amount, interest paid, interest accrued, interest due and outstanding.

How is "deferred tax" presented under Schedule III?+

Both Division I and Division II require deferred tax liabilities (net) to be shown under "Non-current Liabilities" and deferred tax assets (net) under "Non-current Assets". They are not netted off across entities; offsetting is permitted only when there is a legally enforceable right to set off current tax assets against current tax liabilities AND the deferred tax balances relate to income taxes levied by the same taxation authority.

Where is goodwill from a business combination shown?+

Under Ind AS, goodwill arising from a business combination is shown as a separate line item under "Intangible Assets" on the face of the balance sheet. Under AS, it's shown under "Goodwill" in the fixed assets note. Schedule III mandates the line item; the impairment testing is governed by Ind AS 36 / AS 28.

What new disclosures came in the 2021 amendment?+

Beyond MSME splits, ageing tables, and ratios: disclosure on benami property held; status of charges or satisfaction yet to be registered with ROC; details of investments in struck-off companies; loans / advances to promoters, directors, KMPs, related parties (other than business advances); compliance with number of layers of subsidiaries; details of Crypto Currency / Virtual Currency holdings and transactions during the year.

Authoritative sources

Schedule III to the Companies Act 2013 (Division I, II, III) — As amended by MCA Notification GSR 207(E) dated 24 March 2021 — applicable from FY 2021-22 onwards.

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

Related calculators

Ind AS 115 Revenue Tester →Gratuity Calculator →Deferred Tax Calculator →Ind AS 116 Lease Calculator →

Last reviewed: 2026-05-28 · For informational purposes only — not professional advice.