Schedule III Balance Sheet Format (Division I)
By Sudheer Lokanadham, Chartered Accountant · Updated 29/06/2026 · 7 min read
The Schedule III balance sheet format (Division I) is the presentation format prescribed for the balance sheet of a company under the Companies Act, 2013, where the company follows Accounting Standards (AS). It arranges the balance sheet into two halves — Equity and Liabilities and Assets — each split into current and non-current groups, presented with a comparative previous-year column and a set of supporting notes.
The full Division I balance sheet structure
A Division I balance sheet presents the following major heads and sub-heads, in this order. Each line cross-refers to a note number.
I. Equity and Liabilities
- Shareholders' funds — (a) Share capital; (b) Reserves and surplus; (c) Money received against share warrants.
- Share application money pending allotment.
- Non-current liabilities — (a) Long-term borrowings; (b) Deferred tax liabilities (net); (c) Other long-term liabilities; (d) Long-term provisions.
- Current liabilities — (a) Short-term borrowings; (b) Trade payables (split into total outstanding dues of micro and small enterprises, and dues of creditors other than micro and small enterprises); (c) Other current liabilities; (d) Short-term provisions.
II. Assets
- Non-current assets — (a) Property, Plant and Equipment and Intangible assets [(i) Property, Plant and Equipment; (ii) Intangible assets; (iii) Capital work-in-progress; (iv) Intangible assets under development]; (b) Non-current investments; (c) Deferred tax assets (net); (d) Long-term loans and advances; (e) Other non-current assets.
- Current assets — (a) Current investments; (b) Inventories; (c) Trade receivables; (d) Cash and cash equivalents; (e) Short-term loans and advances; (f) Other current assets.
How to prepare a Schedule III balance sheet, step by step
- Start from a finalised, tallied Trial Balance for the financial year.
- Classify every ledger as current or non-current using the 12-month / operating-cycle test above.
- Map each ledger to the correct Schedule III head and sub-head.
- Prepare the supporting notes, with each face line cross-referenced to its note number.
- Add the prescribed disclosures — ageing of trade receivables and payables, the ratios, related party disclosures — and the comparative previous-year column.
- Round off the figures per the turnover-based rounding rules and present them consistently.
Quick reference: where common items go
| Item | Head | Sub-head |
|---|---|---|
| Bank loan repayable over 5 years | Non-current liabilities | Long-term borrowings |
| Current maturities of long-term debt | Current liabilities | Other current liabilities |
| Sundry creditors | Current liabilities | Trade payables |
| Plant and machinery | Non-current assets | Property, Plant and Equipment |
| Sundry debtors | Current assets | Trade receivables |
| Fixed deposits (maturity > 12 months) | Non-current assets | Other non-current assets / investments |
| Provision for tax | Current liabilities | Short-term provisions |
Related formats
Companies use this Division I format. Limited Liability Partnerships follow the ICAI LLP format, and proprietorships, partnerships, trusts and similar bodies follow the ICAI Non-Corporate Entity format. See our guide on turning a Trial Balance into financial statements for the end-to-end workflow.
Frequently asked questions
What is the Schedule III balance sheet format?
It is the prescribed format for presenting the balance sheet of a company under the Companies Act, 2013. Division I of Schedule III applies to companies that follow Accounting Standards (AS). It groups the balance sheet into Equity and Liabilities and Assets, each split into current and non-current sub-heads, and requires a comparative previous-year column with notes.
Who has to use Division I of Schedule III?
Division I applies to companies that prepare financial statements under Accounting Standards (AS). Division II applies to companies that follow Indian Accounting Standards (Ind AS), and Division III applies to NBFCs that follow Ind AS. Most non-listed private companies in India use Division I.
How do you decide if an item is current or non-current?
An asset or liability is classified as current if it is expected to be realised or settled within 12 months of the reporting date or within the company’s normal operating cycle, or is held primarily for trading, or is cash. Everything else is non-current. When the operating cycle cannot be identified, it is assumed to be 12 months.
Is the previous-year comparative column mandatory?
Yes. Schedule III requires figures for the immediately preceding reporting period to be presented alongside the current period for every line item, except in the first financial year of a newly incorporated company.
What did the 2021 amendments to Schedule III change?
The amendments effective from FY 2021-22 made rounding off mandatory (based on turnover), and added several disclosures: ageing schedules for trade receivables, trade payables and capital work-in-progress, disclosure of key financial ratios, and the trade payables split between micro/small enterprises and others, among others.
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