The Ministry of Corporate Affairs (MCA) has introduced the requirement of disclosure of details of Specified Bank Notes (SBN) held and transacted during the specified period and also requires the auditor to comment upon such disclosure by way of amendments dated 30.03.2017 in Schedule III and Companies (Audit and Auditors) Rules, 2014.
- Disclosure of SBNs in Financial Statements (Amendment to Schedule III)
The MCA has amended division I and division II of the Schedule III. As per the amendment, each company needs to disclose the details of Specified Bank Notes held and transacted during the period from 8 November 2016 to 30 December 2016 in the prescribed format.
- Companies (Audit and Auditors) Amendment Rules, 2017
The auditors are required to report on whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.