Schedule III Explained — Division II Format

Overview

Division I vs Division II

Schedule III to the Companies Act, 2013 prescribes the format for financial statements. Division I applies to companies following the older Accounting Standards (AS); Division II applies to companies following Ind AS. IndASBridge is built around Division II — the one that matters for Ind AS-compliant companies, CA firms auditing them, and pre-IPO businesses preparing for listing.

Division II isn't just a different label on the same numbers. It requires a right-of-use asset line (post Ind AS 116), a separate Other Comprehensive Income section (post Ind AS 1), fair-value-driven classifications for financial assets and liabilities, and a set of disclosure schedules — ageing, ratios, title deeds — that Division I does not.

Balance Sheet

Equity and Liabilities / Assets

Head	Sub-head	Typical line items
Equity & Liabilities	Shareholders’ Funds	Equity share capital, Other equity (reserves & surplus, OCI)
	Non-current liabilities	Long-term borrowings, lease liabilities, deferred tax liabilities, long-term provisions
	Current liabilities	Short-term borrowings, trade payables (with MSME ageing), other current liabilities, short-term provisions
Assets	Non-current assets	PPE, capital work-in-progress, right-of-use assets, intangible assets, non-current financial assets, deferred tax assets
Assets	Current assets	Inventories, trade receivables (with ageing), cash & cash equivalents, other current financial assets, other current assets

Statement of Profit & Loss

From revenue to total comprehensive income

#	Line item
I	Revenue from operations
II	Other income
III	Total income (I + II)
IV	Expenses — cost of materials consumed, purchases of stock-in-trade, changes in inventories, employee benefits expense, finance costs, depreciation & amortisation, other expenses
V	Profit before exceptional items and tax (III − IV)
VI	Exceptional items
VII	Profit before tax (V − VI)
VIII	Tax expense — current tax, deferred tax
IX	Profit for the period (VII − VIII)
X	Other Comprehensive Income (items not reclassified / reclassified to P&L)
XI	Total Comprehensive Income (IX + X)
XII	Earnings per equity share — basic & diluted

What trips people up

Disclosure requirements beyond the format

Ageing schedules for trade receivables, trade payables, and capital-work-in-progress / intangible assets under development, split into standard buckets.
Specified ratios — current ratio, debt-equity ratio, debt service coverage, return on equity and others — with explanations for any variance beyond 25% year-on-year.
Rounding-off to the nearest hundreds, thousands, lakhs, crores or millions depending on the company’s total income slab — and it must be disclosed.
Title deeds not held in the company’s name, promoter shareholding disclosure, relationship with struck-off companies, and compliance with the permitted number of layers of subsidiaries.

See it generated automatically

IndASBridge drafts Ind AS workings in Division II format, ready for your team to review.

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