Institute of Chartered Accountants of India

The standards of accounting recommended by the Institute of Chartered Accountants of India constituted under the Chartered Accountants Act, 1949, as may be prescribed by the Central Government in consultation with the National Advisory Committee on Accounting Standards established under sub-section (1) of Section 210A.
However, the standard of accounting specified by the Institute of Chartered Accountants of India shall be deemed to be the Accounting Standards until the accounting standards are prescribed by the Central Government under sub-section (1) of Section 210A.
The above provisions are not applicable to insurance or banking company or any
company engaged in the generation or supply of electricity or any other class of companies for which a form of balance sheet has been specified in or under the Act governing such company. The Central Government may, by notification in the Official Gazette, exempt, in public interest, any class of companies from compliance with any of the requirements in Schedule VI. Any such exemption may be granted either unconditionally subject to such conditions as may be specified in the notification
[Section 211(3)].
Sub-section (4) of Section 211 provides that the Central Government may, on the application or with the consent of the Board of Directors of the company, by order, modify in relation to that company any of the requirements of this Act as to the matters
to be stated in the company’s balance sheet or profit and loss account for the purpose of adapting them to the circumstances of the company. However, it is necessary that any company which seeks exemption under Section 211(4) should indicate in the application whether the same has been made with the approval of the Board of Directors and forward a copy of the Board’s resolution in this regard alongwith the application [Vide Circular No. 1/84 0/1/84-CL- V and 3/83-CL- V), dated 19.4.1984].For the purposes of this Section, except where the context otherwise requires, any reference to a balance sheet or profit and loss account shall include any notes thereon or documents annexed thereto, giving information required by this Act, and allowed by this Act to be given in the form of such notes or documents.