Schedule III balance sheet preparation ? Fun or exhausting process ?101

LedgerFusion is a user-friendly balance sheet automation tool designed to simplify the preparation of financial statements, particularly the Schedule III balance sheet as prescribed by the Companies Act, 2013. Here are the key features of the Schedule III balance sheet format provided by LedgerFusion:

  1. Excel-Based Output
  • Customizable Excel Output: LedgerFusion generates an Excel file with hyperlinks connecting the main balance sheet to its notes and sub-notes. All formula links are visible, allowing users to make last-minute adjustments before finalizing the balance sheet.
  1. Management Representation Letter (MRL)
  • Standard MRL: LedgerFusion provides a 40-point standard Management Representation Letter, which can be customized by the user to align with the specific audit engagement.
  1. Cover Page
  • Comprehensive Cover Page: The cover page includes essential details such as the company’s name, address, annual report number, financial year, name of the auditor, and the auditing firm’s address.
  1. Significant Accounting Notes
  • Predefined Accounting Notes: The tool provides standard pointers covering all aspects of significant accounting notes, which can be updated and customized by the user as needed.
  1. Audit Reports
  • Detailed Audit Report: A comprehensive audit report is included, with the flexibility for users to delete points that are not applicable to the specific balance sheet.
  1. Directors’ Report
  • Automated Directors’ Report: LedgerFusion generates a detailed standard Directors’ Report, automatically fetching all necessary values from the balance sheet. Users can further update it as per their requirements.
  1. Notes and Sub-Notes
  • Detailed Notes and Sub-Notes: All required notes, sub-notes, and footnotes as prescribed in Schedule III are provided. Users need to fill in specific details where required in the format.
  1. Cash Flow Statement
  • Indirect Method Cash Flow: LedgerFusion provides a cash flow statement prepared using the indirect method, as suggested by Accounting Standard 3.
  1. Disallowance Statement
  • Blank Disallowance Statement: The tool provides a disallowance statement template with links to Deferred Tax and Income Tax notes. Users can populate this template with disallowances identified from LedgerVision reports.
  1. MAT/Income Tax Calculation
  • Tax Calculation Options: LedgerFusion offers an option for the calculation of MAT (Minimum Alternate Tax) or Income Tax. Users can select the applicable income tax rate from a drop-down list.
  1. Deferred Tax Calculation
  • Automated Deferred Tax: The tool calculates deferred tax based on the timing difference between depreciation as per the Income Tax Act and the Companies Act.
  1. Depreciation Calculation
  • Dual Depreciation Calculations: LedgerFusion calculates depreciation as per the Companies Act, 2013, using the straight-line method. Users need to provide the purchase date, asset life, and salvage value percentage. It also prepares a depreciation schedule under the Income Tax Act, 1961, using the Written Down Value (WDV) method. Users must input the opening WDV, as this information is not available in Tally data.

LedgerFusion is designed to streamline the process of Schedule III balance sheet preparation, making it easier for users to comply with statutory requirements while allowing for customization to meet specific needs.

 

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