Companies Act, 2013•Schedule III Division I•100% Client-Side Privacy

Schedule III Balance Sheet Builder

Under Section 129 of the Companies Act, 2013, every Indian company must prepare its Balance Sheet in accordance with Schedule III and applicable Accounting Standards. Use this free, browser-only builder to convert your trial balance into a verified statutory draft with March 2021 disclosures (promoter shareholding, trade ageing, CWIP schedules, and 11 ratios), or download print-ready blank Excel, PDF, and Word templates.

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1. Legal Basis: Section 129 and Schedule III Division I

Section 129(1) of the Companies Act, 2013 requires that financial statements shall give a true and fair view of the state of affairs of the company and comply with the accounting standards notified under Section 133. Schedule III sets out the general instructions for preparation of the Balance Sheet and Statement of Profit and Loss.

Schedule III is divided into three statutory frameworks:

Division I: Applies to companies required to comply with the Companies (Accounting Standards) Rules, 2006 (AS / Non-Ind AS framework). This applies to the vast majority of private limited companies, OPCs, and unlisted entities below Ind AS net worth thresholds.
Division II: Applies to companies required to comply with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS).
Division III: Applies specifically to Non-Banking Financial Companies (NBFCs) preparing financial statements under Ind AS.

Important Legal Distinction: Company type (Private Limited, Public, OPC, or Section 8) does not automatically decide whether Division I or Division II applies. Applicability is governed by the Ind AS roadmap (e.g. net worth exceeding ₹250 Crores or listed securities). Always confirm the accounting framework before finalizing financial statements.

2. Schedule III Division I Balance Sheet Structure

Under Schedule III Division I Part I, the Balance Sheet follows a strict vertical format with Roman numeral classifications. Horizontal T-shaped balance sheets are prohibited under the Companies Act, 2013.

I. EQUITY AND LIABILITIES

Shareholders' Funds: Share capital, Reserves and surplus, Money received against share warrants.
Share Application Money Pending Allotment: Disclosed to the extent not refundable.
Non-Current Liabilities: Long-term borrowings, Deferred tax liabilities (Net), Other long-term liabilities, Long-term provisions.
Current Liabilities: Short-term borrowings, Trade payables (with MSME and non-MSME split), Other current liabilities, Short-term provisions.

II. ASSETS

Non-Current Assets: Property, Plant and Equipment and Intangible Assets (PPE, Intangibles, CWIP, Intangibles under dev), Non-current investments, Deferred tax assets (Net), Long-term loans & advances, Other non-current assets.
Current Assets: Current investments, Inventories, Trade receivables, Cash and cash equivalents, Short-term loans and advances, Other current assets.

3. The March 2021 Schedule III Amendments Checklist

Vide Notification No. G.S.R. 207(E) dated 24 March 2021 (effective from 1 April 2021), the Ministry of Corporate Affairs made comprehensive amendments to Schedule III disclosures. Key statutory requirements include:

1. Promoter Shareholding Disclosures:A separate tabular note specifying the number of shares held by each promoter, percentage of total shares, and percentage change during the year across equity and preference classes.

2. Trade Payables Ageing Schedule:Ageing schedule split into MSME and others, and disputed vs undisputed dues across periods: Less than 1 year, 1-2 years, 2-3 years, and more than 3 years.

3. Trade Receivables Ageing Schedule:Bucketed into less than 6 months, 6 months to 1 year, 1-2 years, 2-3 years, and more than 3 years, classified across undisputed good, doubtful, disputed good, and disputed doubtful.

4. Capital Work-in-Progress (CWIP) Ageing & Completion:Schedule distinguishing projects in progress from temporarily suspended projects, with cost overrun and time overrun tracking.

5. The 11 Statutory Financial Ratios:Mandatory computation of 11 ratios (Current Ratio, Debt-Equity, DSCR, ROE, Inventory Turnover, Trade Receivables Turnover, Trade Payables Turnover, Net Capital Turnover, Net Profit Ratio, ROCE, ROI) accompanied by explanations whenever variance against the preceding year exceeds 25%.

4. Illustrative Example: Trial Balance to Balance Sheet

Consider a private limited tech services company with ₹50 Lakhs paid-up capital, ₹78.5 Lakhs reserves & surplus, ₹40 Lakhs bank term loan, and ₹15 Lakhs current maturities. On the assets side, the company has ₹101 Lakhs net PPE, ₹48.6 Lakhs trade receivables, and ₹33.2 Lakhs cash and bank equivalents.

In the Schedule III layout:

The ₹15 Lakhs current maturities of long-term debt are classified under Short-Term Borrowings (Current Liabilities), not Other Current Liabilities.
Sundry Debtors of ₹48.6 Lakhs are accompanied by Note 23 detailing undisputed trade receivables and the statutory ageing schedule.
Accumulated depreciation of ₹22.5 Lakhs is presented as a contra asset offsetting gross Property, Plant and Equipment.

5. Frequently Asked Questions (FAQs)

Can an LLP use this Schedule III Balance Sheet format?

No. Limited Liability Partnerships are governed by the LLP Act, 2008 and file Form 8 (Statement of Account & Solvency). Schedule III is enacted under Section 129 of the Companies Act, 2013 and applies exclusively to incorporated companies.

Is a balanced balance sheet automatically legally compliant?

No. A balance sheet where total assets equal total liabilities is arithmetically balanced, but legal compliance requires correct current/non-current categorization, proper Accounting Standard treatments, mandatory note disclosures (promoters, MSME ageing, ratios), and statutory audit verification.

Where are current maturities of long-term borrowings shown?

Following the March 2021 MCA amendments, current maturities of long-term borrowings must be disclosed separately under Short-term borrowings under Current Liabilities. Prior practice of grouping them under Other Current Liabilities was discontinued.

Are my company financial figures uploaded to your servers?

No. The Financial Statements Builder runs 100% client-side in your local browser. All trial balance parsing, formula recalculations, and PDF/XLSX/Word export compilations happen in JavaScript on your device. No financial data is sent to our servers.