revised schedule vi of the companies act, 1956 ca. rajkumar s adukia b.com(hons.) fca, acs,mba,...

Revised Schedule VI of The Companies Act, 1956

CA. Rajkumar S AdukiaCA. Rajkumar S Adukia

B.Com(Hons.) B.Com(Hons.) FCA, ACS,MBA, AICWA, LLBFCA, ACS,MBA, AICWA, LLB ,Dip In IFRS(UK) ,Dip In IFRS(UK) DLL& LWDLL& LW

[email protected]

www.carajkumarradukia.com

09820061049/0932306104909820061049/09323061049

mailto:[email protected]

http://www.carajkumarradukia.com/

http://www.carajkumarradukia.com/

Schedule VI Revised

Introduction

Notification Date 28 February 2011

Effective Date 1 April 2011

Applicable to the financial statements to be prepared for the Financial Year

commencing on or after 1 April 2011

No provision in the notification for early application

2www.carajkumarradukia.com

Schedule VI Structure

General instructions for preparation of Financial Statements

General notes applicable to the Financial Statements

Part I – Form of Balance Sheet

General instructions for preparation of Balance Sheet

Part II – Form of Statement of Profit And Loss

General instructions for preparation of Statement of Profit And Loss


Conceptual Changes

Schedule VI format and disclosures shall yield to Accounting standards and the requirements of the Act.

Financial statements vertical format mandatory. Clear mandate on disclosure

on the face of financial statements and In the accompanying notes

Certain accounting terms defined in the schedule. The non-defined terms shall have the meaning as per the accounting

standards. Separate head for Share application money pending allotment Liabilities to be classified as Current and Non-current liabilities

Creditors may be classified as Non-current liabilities in certain circumstances

Schedules to the Financial Statements to be given as notes to accounts

Schedule VI


Conceptual Changes

Assets to be classified as current and non-current – as defined in the schedule – items like inventories and receivables may get classified as non current in certain circumstances.

Investments specifically classified into non-current and current on the face of balance sheet.

Disclosures as per schedule and as per accounting standards to be harmonized.

Disclosures requirements specified in the schedule VI are additional disclosures - not the substitute to the accounting standards disclosures

Disclosures as per accounting standards (unless required to be made on the face of Financial Statements) can be given in the notes to account or by way of additional statement

Other disclosures required under the companies act to be made in the notes to accounts only.

Schedule VI


Notes to accounts

Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required

Narrative descriptions or disaggregation of items recognized in those statements and Information about items that do not qualify for recognition in those statements.

Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts.

In preparing the Financial Statements including the notes to accounts, a balance shall be maintained between

providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation.

Schedule VI


Comparatives and Rounding off

Comparatives for the immediately preceding year to be given for all items shown in Financial Statements including notes

Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as below :

Turnover Rounding off

Less than one hundred crore To the nearest hundreds, thousands,

rupees lakhs or millions, or decimals thereof.

one hundred crore rupees or To the nearest lakhs, millions or crores,

more or decimals thereof.

Rounding off is optional.


Accounting terms defined

An operating cycle is the time between the acquisition of assets for processing and their

realization in cash or cash equivalents. Where the normal operating cycle cannot be identified,

it is assumed to have a duration of 12 months.

An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company’s

normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a

liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Schedule VI


Accounting terms defined

A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date; or

(d) the company does not have an unconditional right to defer settlement of the

liability for at least twelve months after the reporting date.

Terms of a liability that could, at the option of the counterparty,

result in its settlement by the issue of equity instruments do not affect its

classification.

All other liabilities shall be classified as non-current.

Schedule VI


LIABILITIES

Revised Format Note Figures at the Figures at the Particulars No. end of current end of previous reporting period reporting period

Equity and Liabilities (On the face of Balance Sheet)1. Shareholders’ Funds

(a) share capital(b) reserves and surplus(c) Money received against share warrants

2. Share application money pending allotment3. Non – Current liabilities

(a) Long term borrowings(b) Deferred tax liabilities (net)(c) Other long term liabilities(d) Long term provisions

Schedule VI


LIABILITIES


4. Current Liabilities(a) Short term Borrowings(b) Trade payables(c) Other current liabilities(d) Short term provisions

Total

Schedule VI


ASSETS


Assets (On the face of Balance Sheet)1) Non Current AssetsA) Fixed Assets

i) Tangible assets

ii) Intangible Assets

iii) Capital WIP

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

Schedule VI


ASSETS


2) Current AssetsA) Current Investments

B) Inventories

C) Trade Receivables

D) Cash and Cash Equivalents

E) Short term Loans and Advances

F) Other Current Assets

Total

Schedule VI


Schedule VI


Shareholders’ Funds ( On the face of Balance sheet)

Revised Format Shareholders’ Funds

Share capital

Reserves and surplus

Money received against share warrant

Current Format Shareholders’ Funds Share Capital Authorized ___ shares of `____ each. Issued ____ shares of `___ each. Subscribed ____ shares of `___ each, `___

called up.

( Of the above, ____ shares are allotted as fully paid-up pursuant to a contract without payments being received in cash or as bonus shares – also source of bonus shares)

Less: Calls unpaid

(i) by directors

(ii) by others

Add: Forfeited Shares (amt originally paid) (capital profit on reissue of forfeited share transferred to capital reserve)

Shareholders’ Funds


Disclosures – Share Capital

Revised Format For each class of share capital (different classes of preference shares to be treated

separately): the number and amount of shares authorized; the number of shares issued, subscribed and fully paid, and subscribed but not

fully paid; par value per share; a reconciliation of the number of shares outstanding at the beginning and at the

end of the reporting period; the rights, preferences and restrictions attaching to each class of shares

including restrictions on the distribution of dividends and the repayment of capital;

shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or ssociates of the holding company or the ultimate holding company in aggregate;

shares in the company held by each shareholder holding more than 5 per cent shares specifying the number of shares held;



Disclosures – Share Capital

Revised Format shares reserved for issue under options and contracts/commitments for the

sale of shares/ disinvestment, including the terms and amounts; for the period of five years immediately preceding the date as at which the

Balance Sheet is prepared: Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without

payment being received in cash. Aggregate number and class of shares allotted as fully paid up by way of bonus shares. Aggregate number and class of shares bought back. terms of any securities convertible into equity/preference shares issued along with

the earliest date of conversion in descending order starting from the farthest such date.

calls unpaid (showing aggregate value of calls unpaid by directors and officers) forfeited shares (amount originally paid up)



Reserves and Surplus

Revised Format Capital Reserves ; Capital Redemption Reserve; Securities Premium Reserve; Debenture Redemption Reserve; Revaluation Reserve; Share Options Outstanding Account; Other Reserves – (specify the nature and purpose of each reserve

and the amount in respect thereof); Debit balance of statement of profit and loss shall be shown as a

negative figure under the head `Surplus’. Surplus i.e. balance in Statement of Profit & Loss disclosing

allocations and appropriations Dividend, bonus shares transfer to/from reserves etc.

Current Format Capital Reserves. Capital Redemption Reserve. Share Premium Account (cc) ---- ---- ---- Other reserves (specifying the nature of each reserve

and the amount in respect thereof). Less : Debit balance in profit and loss account (if any) Surplus, i.e., balance in profit and loss account after

providing for proposed allocations, namely :- Dividend, bonus or reserves. Proposed additions to reserves.



Reserves and Surplus

Revised Format Additions and deductions since last balance

sheet to be shown under each of the specified heads

A reserve specifically represented by earmarked investments shall be termed as a `fund’.

The balance of `Reserves and Surplus’, after adjusting negative balance of surplus, if any, shall be shown under the head `Reserves and Surplus’ even if the resulting figure is in the negative.

.

Current Format Additions and deductions since last balance

sheet to be shown, under each of the specified heads.

The word "fund" in relation to any "Reserve" should be used only where such Reserve is specifically represented by earmarked investments.

The negative balance of P/L Account if still shows a debit balance even after deductions from reserves, it is shown under a separate head ‘Profit and Loss account debit balance’ under Assets



Share Warrants

Revised Format Money received against

share warrants

Current Format ----



Share Application Money

Revised Format Share Application money

pending allotment

(Detailed instructions given under current liabilities)

Current Format No prescribed head

It was customary to show as quasi capital

Share Application Pending allotment


Non Current Liabilities

Revised Format Non Current Liabilities

Long term borrowings Deferred tax liabilities (net) Other long term liabilities Long term provisions

Current Format The category ‘Non Current

liabilities’ does not exist.

Liabilities


Long Term Borrowings

Revised Format Long Term Borrowings Classification I

Bonds/debentures. Term loans

from banks. from other parties.

Deferred payment liabilities. Deposits. Loans and advances from related parties. Long-term maturities of finance lease

obligations. Other loans and advances (specify

nature).

Classification II secured unsecured.

Current Format Secured and unsecured loans

Secured loans Debentures Loans and advances from banks. Loans and advances from

subsidiaries. Other loans and advances.

Unsecured Loans Fixed deposits. Loans and advances from subsidiaries. Short-term loans and advances:

From Banks. From others

Other loans and advances: From Banks. From others.

Non current Liabilities


Long Term Borrowings (continued)

Revised Format Long Term Borrowings Where loans have been guaranteed by directors or others, the aggregate

amount of such loans under each head shall be disclosed. Bonds/debentures (along with the rate of interest and particulars of

redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due.

Particulars of any redeemed bonds/ debentures which the company has power to reissue shall be disclosed.

Terms of repayment of term loans and other loans shall be stated. Period and amount of continuing default as on the balance sheet date in

repayment of loans and interest, shall be specified separately in each case.

Current Format

Where loans have been guaranteed by directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head.

Terms of redemption or conversion (if any) of debentures issued to be stated together with earliest date of redemption or conversion.

Particulars of any redeemed debentures which the company has power to issue should be given.



Deferred Tax Liabilities

Revised Format Deferred tax liabilities (net)

Current Format ----



Other Liabilities

Revised Format Other long term liabilities (a) Trade payables (b) Others

Current Format The category ‘Other long term




Provisions

Revised Format Long term provisions Provision for employee benefits. Others (specify nature).

Current Format Provisions***

Provision for taxation. Proposed dividends. For contingencies. For provident fund scheme. For insurance, pension and similar staff benefit

schemes. Other provisions.

*** No bifurcation between long term and short term provisions



Current Liabilities

Revised Format Current Liabilities

(a) Short term Borrowings

(b) Trade payables

(c) Other current liabilities

(d) Short term provisions

Current Format Current Liabilities

(a) Acceptances.

(b) Sundry creditors.

(c) Subsidiary companies.

(d) Advance payments and unexpired discounts for the portion for which value has still to be given

(e) Unclaimed dividends.

(f) Other liabilities (if any)

(g) Interest accrued but not due on loans.

Note: Provisions shown as a separate sub head under “Current liabilities and provisions”

Current Liabilities


Borrowings

Revised Format Short term borrowings Classification I:

Loans repayable on demand from banks. from other parties.

Loans and advances from related parties. Deposits. Other loans and advances (specify nature).

Classification II secured unsecured.

Current Format Secured and unsecured loans

Secured loans Debentures Loans and advances from banks. Loans and advances from subsidiaries. Other loans and advances.

Unsecured Loans Fixed deposits. Loans and advances from subsidiaries. Short-term loans and advances:

From Banks. From others

Other loans and advances: (a) From Banks. From others.

Current Liabilities


Borrowings (continued)

Revised Format Short term borrowings Where loans have been guaranteed by

directors or others, the aggregate amount of such loans under each head shall be disclosed.

Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case.

Current Format The category ‘Short term borrowings’

does not exist.

Current Liabilities


Other Current Liabilities

Revised Format Other current liabilities (a) Current maturities of long-term debt; (b) Current maturities of finance lease

obligations; (c) Interest accrued but not due on

borrowings; (d) Interest accrued and due on borrowings; (e) Income received in advance; (f) Unpaid dividends;

Current Format The category ‘Other current liabilities’ does

not exist.

Current Liabilities


Revised Format

Other current liabilities (g) Application money received for allotment of securities

and due for refund and interest accrued thereon Share application money includes advances towards allotment of

share capital. The terms and conditions including the number of shares proposed

to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed.

It shall also be disclosed whether the company has sufficient authorized capital to cover the share capital amount resulting from allotment of shares out of such share application money.

Current Format

The category ‘Other current liabilities’ does not exist.

Current Liabilities


Revised Format Other current liabilities

Further, the period for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed.

Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head Equity and

share application money to the extent refundable i.e., the amount in excess of subscription or in case the requirements of minimum subscription are not met, shall be separately shown under `Óther current liabilities’;

Current Format

The category ‘Other current liabilities’ does not exist.

Current Liabilities


Revised Format

Other current liabilities (h) Unpaid matured

deposits/debentures and interest accrued thereon;

(j) Other payables (specify nature).

Current Format The category ‘Other current


Current Liabilities


Provisions

Revised Format Short term provisions (a) Provision for employee benefits. (b) Others (specify nature).

Current Format

Provisions*** Provision for taxation. Proposed dividends. For contingencies. For provident fund scheme. For insurance, pension and similar staff benefit

schemes. Other provisions.

*** No bifurcation between long term and short term provisions

Current Liabilities


Contingent Liabilities

Revised Format Contingent liabilities and commitments (to

the extent not provided for) Contingent liabilities shall be classified as:

Claims against the company not acknowledged as debt; Guarantees; Other money for which the company is contingently liable

Commitments shall be classified as: Estimated amount of contracts remaining to be executed

on capital account and not provided for; Uncalled liability on shares and other investments partly

paid; Other commitments (specify nature).

Current Format Contingent Liabilities

Claims against the company not acknowledged as debts.

The amount of any guarantees given by the company on behalf of directors or other officers of the company

Other money for which the company is contingently liable.

Estimated amount of contracts remaining to be executed on capital account and not provided for.

Uncalled liability on shares partly paid.] The period for which the dividends are in arrear or if

there is more than one class of shares, the dividends on each such class are in arrear, shall be stated.

Arrears of fixed cumulative dividends.

Notes to Accounts


Fixed Assets ( On the face of Balance sheet)

Revised Format Fixed Assets

1) Tangible Assets

2) Intangible assets

3) Capital WIP

4) Intangible assets under dev.

Current Format Fixed Assets

Gross Block

Less: Depreciation .

Net Block

Capital WIP

Non current Assets


Fixed Assets – Classification of Tangible Assets

Revised Format1) Tangible Assets1. Land

2. Buildings

3. Plant & Equipment

4. Furniture & Fixtures

5. Vehicles

6. Office Equipments

7. ----

8. ----

9. ----

10. Others (Specify nature)

Note : Assets under lease should be classified separately

Current Format1) ***1. Land

2. Buildings

3. Plant & Machinery

4. Furniture & fittings

5. Vehicles

6. ----

7. Live stocks

8. Leaseholds

9. Development of property

*** No title prescribed in Sch. VI. But in practice the title “Tangible Assets” was used to differentiate from Intangible assets

Non current Assets


Fixed Assets – Classification of Intangible Assets

Revised Format2) Intangible Assets

1. Goodwill

2. Brands / trademarks

3. Computer Software

4. Mastheads & publishing titles

5. Mining rights

6. Copyrights & patents & other

intellectual property rights, services &

operating rights

Current Format2) ***

1. Goodwill

2. Trademarks

3. ----

4. ----

5. ----

6. Patents

*** No title prescribed in Sch. VI. But in practice the title “Tangible Assets” was used to differentiate from Intangible assets

Non current Assets


Fixed Assets – Classification of Intangible Assets

Revised Format

7. Recipes, formulae, models, designs

and prototypes

8. Licenses and franchise

9. Others

Current Format7. Designs

8. ----

Non current Assets


Fixed Assets – Work-in-progress

Revised Format

3) Capital WIP

4) Intangible Assets under dev

Current Format

3) Capital WIP

4) ----

Non current Assets


Fixed Assets – Revaluation of Assets

Revised Format

Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase.

Current Format Where sums have been written off on a

reduction of capital or a revaluation of assets, every balance sheet, (after the first balance sheet) subsequent to the reduction or revaluation shall show the reduced figures and with the date of the reduction in place of the original cost.

Each balance sheet for the first five years subsequent to the date of the reduction, shall show also the amount of the reduction made.

Similarly, where sums have been added by writing up the assets, every balance sheet subsequent to such writing up shall show the increased figures with the date of the increase in place of the original cost. Each balance sheet for the first five years subsequent to the date of writing up shall also show the amount of increase made.

Non current Assets

No change in substance - only the language is modified


Fixed Assets – Reconciliation of Assets

Revised Format A reconciliation of the gross and

net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately.

Current Format

Under each head the original

cost and the additions thereto

and deductions there from

during the year, and the total

depreciation written off or

provided up to the end of the

year to be stated.

Non current Assets


Investments

Revised Format Non Current Investments Classification I Trade Investments Non-trade Investments

Classification II

(a) Investment property;

(b) Investments in Equity Instruments;

(c) Investments in preference shares;

(d) Investments in Government or trust securities;

(e) Investments in debentures or bonds;

(f) Investments in Mutual Funds;

(g) Investments in partnership firms;

(h) ----

(i) Other non-current investments (specify nature).

Current Format Investments Classification I Trade Investments Non-trade Investments

Classification II

a) Immovable Properties

b) Investments in shares @ , $

c) ----

d) Investments in Govt. or Trust securities

e) Investments in debentures or bonds @

f) ----

g) Inv. in the capital of the partnership firms

h) Balance of unutilized monies raised by issue

Non current Assets

$- Distinguish class of shares and Partly/Fully paid share@- Investments in subsidiaries, shown separately


Investments – Disclosures

Revised Format Under each classification, details shall be

given of names of the bodies corporate (indicating

separately whether such bodies are subsidiaries, associates, joint ventures, or controlled special purpose entities

in whom investments have been made and

the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid).@

In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given.

Current Format A statement of investments showing

the names of the bodies corporate (indicating separately )

the names of the bodies corporate under the same management in whose shares or debentures, investments have been made (including all investments, whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and

the nature and extent of the investment so made in each such body corporate;

In regard to the investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner), shall be given in the statement.

Non current Assets

@- In the current format disclosure requiredOnly for partly paid shares.


Disclosure of investment movements dispensed

Current Format A statement of investments (whether shown under “Investment” or under “Current

Asset” as stock –in-trade) separately classifying trade investments and other investments should be annexed to the balance sheet, showing the names of the bodies corporate (indicating separately the names of the bodies corporate under the same management) in whose shares or debentures, investments have been made (including all investments, whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and the nature and extent of the investment so made in each body corporate.

In the case of an investment company, that is to say, a company whose principal business is the acquisition of shares, stock, debentures or other securities, it shall be sufficient if the statement shows only the investments existing on the date as at which the balance sheet has been made out.

Revised Format The revised format does not contemplate movement of investments for any category

of the companies.


Investments – Details required to be given

Revised Format Investments carried at other than cost

should be separately stated specifying the basis for valuation thereof.

The following shall also be disclosed:

(a) Aggregate amount of quoted investments and market value thereof;

(b) Aggregate amount of unquoted investments;

(c) Aggregate provision for diminution in value of investments

Refer paragraph V of the revised schedule VI for the note to be given.

Current Format Nature of investments and mode of

valuation to be shown separately

Aggregate amount of company's quoted investment and also the market value thereof shall be shown.

Aggregate amount of company's unquoted investments shall also be shown.

All unutilized monies out of the issue must be separately disclosed in the balance sheet of the company indicating the form in which such unutilized funds have been invested

Non current Assets


Deferred Tax Assets

Revised format Deferred Tax Assets (Net)

Current Format ----

Non current Assets

Accounting Standard 22 explains the same presentation


Long term loans and advances - Classification

Revised format Long term loans and advances

Classification I(i) Capital Advances;

(ii) Security Deposits;

(iii) Loans and advances to related parties (giving details thereof);

(iv) ----

(v) Other loans and advances (specify nature).

Current Format Loans and advances ***

Classification I(i) ----

(ii) ----

(iii) Advances and loans to subsidiaries

(iiia)Advances and loans to partnership firms in

which the company or any of its subsidiaries

is a partner

(iv) Bills of Exchanges

(v) Advances Recoverable in cash or kind or for

value to be received e.g. rates, taxes, insurance

etc

(vi) Balance with customs , Port Trust etc (where payable on demands)

Non current Assets

*** No bifurcation between long term and short term loans and advances on the face of Balance Sheet


Long term loans and advances - Classification

Revised format

Classification II(i) secured, considered good

(ii) unsecured, considered good

(iii) doubtful

Current Format

Classification II(i) secured, considered good

(ii) unsecured, considered good

(iii) doubtful

Non current Assets


Administrator

mANALI TO CHECK

Loans and advances - disclosures

Revised format

Loans and advances due by

directors or

other officers of the company or

any of them either severally or jointly

with any other person or

amounts due by firms or private

companies respectively in which any

director is a partner or a director or a

member shall be separately stated.

In the revised format the disclosure of

maximum amount has been dispensed

Current Format

Loans and advances due by

directors or


any of them either severally or jointly with

any other person or

amounts due by firms or private companies

respectively in which any director is a

partner or a director or a member shall be

separately stated.

The maximum amount due by directors or other

officers of the company at any time during the

year to be shown by way of a note.

Non current Assets


Loans and advances - disclosures

Revised format This disclosure has been dispensed in

the revise format.

Current Format Loans and advances due from other

companies under the same management

within the meaning of sub-section (1B) of

section 370, to be disclosed with the

names of the companies.

Maximum amount due from each such

company

Non current Assets


Value on realization in the ordinary course of business

Revised format If, in the opinion of the Board, any of

the assets other than fixed assets and

non-current investments do not have a

value on realization in the ordinary

course of business at least equal to

the amount at which they are stated,

the fact that the Board is of that

opinion, shall be stated.

Current Format If, in the opinion of the Board, any of the

current assets, loans and advances have

not value on realisation in the ordinary

course of business at least equal to the

amount at which they are stated, the fact

that the Board is of that opinion shall be

stated.

Non current Assets


Other non current assets Revised Format Classification I

(a) Long-term Trade Receivables (including

trade receivables on deferred credit terms);

( b)Others (specify nature); Classification II

(For Trade Receivables)(a) Secured, considered good;(b) Unsecured considered good;( c) Doubtful

Allowance for bad and doubtful debts to be disclosed under the relevant head separately

Due from directors or any other officers of the company or any of them either severally or jointly with any person or debts due by firms or private companies respectively in which any director is a partner or a director or a member to be separately stated.

Current Format

The category ‘Other Non Current Asset’ does not exist.

Non current Assets


Current Assets (On the face of Balance Sheet)

Revised format Current Assets

1. Current Investments

2. Inventories

3. Trade Receivables

4. Cash and Cash Equivalents

5. Short term Loans and Advances

6. Other Current Assets

Current Format Current Assets

1. ----

2. Inventories

3. Sundry Debtors

4. Cash and bank balances

5. ----

6. Other Current Assets

Current Assets


Current Investments - Classification

Revised format

Current Investments

Primary Classification No such classification

Secondary classification

(a) Investments in Equity Instruments;

(b) Investment in Preference Shares;

(c) Investments in government or trust

securities;

(d) Investments in debentures or bonds;

(e) Investments in Mutual Funds;

(f) Investments in partnership firms;

(g) Other investments (specify nature).

Current Format

Investments

Primary Classification Trade Investments Non-trade Investments

Secondary classification

(a) Immovable Properties

(b) Investments in shares

(c) Investments in shares

(d) Investments in Govt. or Trust securities

(e) Investments in debentures or bonds

(f) Inv. in the capital of the partnership firms

(g) Balance of unutilized monies raised by issue

Current Assets


Administrator

Trade and non trade investments to be specified?

Inventories - Classification

Revised format

Inventories(a) Raw materials;

(b) Work-in-progress;

(c) Finished goods;

(d) Stock-in-trade (in respect of goods acquired for trading);

(e) Stores and spares;

(f) Loose tools;

(g) Others (specify nature). Goods-in-transit shall be disclosed under

the relevant sub-head of inventories. Mode of valuation shall be stated.

(For all items of inventories)

Current Format

Inventories(a) Raw materials;

(b) Work-in-progress;

(c) Finished goods;

(d) Stock-in-trade

(e) Stores and spares;

(f) Loose tools;

(g) Others (specify nature).

Mode of valuation of stock shall be stated and the amount in respect of raw material shall also be stated separately where practicable.

Mode of valuation of works-in-progress shall be stated.

Current Assets


Trade Receivables - Classification

Revised format

Trade Receivables

Classification I

1. outstanding for > 6 months

2. others

Classification II

1. secured, considered good

2. unsecured, considered good

3. doubtful

Note : Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately.

Current Format

Sundry Debtors

Classification II

1 outstanding for > 6 months

2. others

Classification II

1. secured, considered good

2. unsecured, considered good

3. doubtful


Current Assets


Administrator

plese check it seems there is some mistake

Administrator

chk A3 comment

Trade Receivables - Disclosures

Revised format Debts due by

directors or








In the revised format the disclosure of

maximum amount has been dispensed

Current Format Debts due by

directors or








The maximum amount due by directors or

other officers of the company at any time

during the year to be shown by way of a note.

Non current Assets


Trade Receivables - Disclosures

Revised format This disclosure has been dispensed in

the revise format.

Current Format Debts due from other companies under the

same management within the meaning of

sub-section (1B) of section 370, to be

disclosed with the names of the companies.

Non current Assets


Trade Receivables/ Sundry debtors – definition modified

Revised format A receivable shall be classified as a

`trade receivable’ if it is in respect of

the amount due on account of goods

sold or services rendered in the

normal course of business.

Current Format The amounts to be shown under

Sundry Debtors shall include the

amounts due in respect of goods sold

or services rendered or in respect of

other contractual obligations but shall

not include the amounts which are in

the nature of loans or advances.

Current Assets


Cash and cash equivalents - Classification

Revised format

Cash and Cash equivalents

(a) Balances with banks;

(b) Cheques, drafts on hand;

(c) Cash on hand;

(d) Others (specify nature).

Current Format

Cash Balance on hand

Bank balances

1. with schedule banks

2. with others

Current Assets


Cash and cash equivalents - Disclosures

Revised format Balances with the bank Earmarked balances with banks (for

example, for unpaid dividend) shall be separately stated.

Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately.

Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated.

Bank deposits with more than 12 months maturity shall be disclosed separately.

Current Format

Bank The balances lying with Scheduled

Banks on current accounts, call accounts, and deposit accounts,

The names of the bankers other than Scheduled Banks and the balance lying with each such banker on current accounts, call accounts and deposit accounts and the maximum amount outstanding at any time during the year from each such banker; and

The nature of the interest, if any, of any director or his relative in each of the bankers (other than Scheduled Banks) referred to in above

Current Assets


Short term loans and advances - Classification

Revised format Short term loans and advances

Classification I

(a) Loans and advances to related parties (giving details thereof);

(b) Others (specify nature).

Classification II

(a) Secured, considered good;

(b) Unsecured, considered good;

(c) Doubtful.


Current Format Loans and advances ***

Classification I(ii) Balance with customs authority or Trust

(iii) Loans to subsidiaries

(iv) Bills of Exchanges

Classification II(a) Secured, considered good;

(b) Unsecured, considered good;

(c) Doubtful.

*** No bifurcation between long term and short term loans and advances on the face of Balance Sheet

Current Assets


Item head of current format (Assets) omitted in revised format

Revised format ---- Debit balance of statement of profit

and loss shall be shown as a negative figure under the head `Surplus’.

Similarly, the balance of `Reserves and Surplus’, after adjusting negative balance of surplus, if any, shall be shown under the head `Reserves and Surplus’ even if the resulting figure is in the negative.

Current Format Miscellaneous Expenditure

(1)Preliminary expenses.

(2) Expenses including commission on brokerage on underwriting or subscription of shares or debentures.

(3) Discount allowed on the issue of shares or debentures.

(4) Interest paid out of capital during construction (also stating the rate of interest).

(5) Development expenditure not adjusted.

(6) Other items (specifying nature), Profit & Loss Account (Debit

Balance)The debit balance in the Profit and Loss Account shall be shown as a deduction from the uncommitted reserves, if any.

Current Assets


Conceptual Changes

The term profit and loss account is changed to profit and loss

statement

The format is prescribed

Many redundant disclosures of current schedule VI dispensed

Quantitative information of raw material consumption, production,

sales and stocks dispensed

Profit And Loss Statement


Profit & Loss Statement Note Figures for Figures for

No. Current previous

reporting reporting

period period I) Revenue From Operations II) Other incomes

Total Revenue

III) Expenses Cost of Materials Consumed

Purchases of Stock in trade

Changes in Inventories of finished goods, WIP,

and stock in trade

Employee benefits expenses

Finance Cost

Depreciation and Amortization Exp

Other Expenses

Total Expenses


Profit & Loss Statement Note No. Fig for curr. Fig. for the

Rep. period Pre.rep per

V) Profits before exceptional & extraordinary

items and tax ( III – IV )

VI) Exceptional items

VII) Profits before extraordinary items

and tax ( V – VI )

VIII) Extraordinary items

IX) Profits before tax (VII – VIII )

X) Tax expense

1) Current Tax

2) Deferred Tax


Profit & Loss Statement Note Figures for the Figures for the

No. Current reporting previous

period reporting period

XI) Profits/ (loss) for the period from

continuing operations (VII – VIII )

XII) Profit/(loss) from discontinuing operations

XIII) Tax Expense of discontinuing

operations

XIV) Profits/ (loss) from discontinuing

operations (after tax) ( XII – XIII)

XV) Profits and loss for the period (XI – XIV )

XVI) Earnings per equity share

1. Basic

2. Diluted


Disclosures - Revenue

Revised Format (A) In respect of a company other than

finance company, revenue from operations shall include revenue from

(a) sale of products;

(b) sale of services;

(c) other operating revenues;

Less:

(d) Excise duty.

(B) In respect of a finance company, revenue from operations shall include revenue from

(a) Interest; and

(b) Other financial services

Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable.

Current Format The turnover, that is, the aggregate amount

for which sales are effected by the

company, giving the amount of sales in

respect of each class of goods dealt with by

the company, and indicating the quantities

of such sales for each class separately

Profit & Loss Statement

Sales quantity disclosure

dispensed in the revised format


Disclosures – Other Income

Revised Format Interest Income (in case of a company

other than a finance company)

Dividend Income

(Dividend from subsidiaries to be disclosed separately)

Net gain/loss on sale of investments

Other non-operating income (net of expenses directly attributable to such income)

Current Format The amount of income from

investments, distinguishing between trade investments and other investments.

Other income by way of interest, specifying the nature of the income

Dividend from subsidiary companies Profit or losses on investments

(showing distinctly the extent of the profits or losses earned or incurred on account of membership of a partnership firm) (to the extent not adjusted from any previous provision or reserve


Interest, dividend and gain/loss on sale of investments are also specified as items of separate disclosure otherwise than other income – seems to be for finance companies.


Disclosures – Extraordinary Items/Miscellaneous Income

Revised Format

Extraordinary Items Details of items of exceptional and

extraordinary nature

Miscellaneous Income Any item of income or expenditure

which exceeds !% of the revenue from operations or Rs..100000 whichever is higher. requires separate disclosure.

Current Format

Extraordinary items Profit or losses in respect of

transactions of a kind, not usually undertaken by the company or undertaken in circumstances of an exceptional or non-recurring nature, if material in amount.

Miscellaneous Income No prescribed limit



Revised Format

In the case of manufacturing companies,-

(1) Raw materials under broad heads.

(2) goods purchased under broad heads.

In the case of trading companies, purchases in respect of goods traded in by the company under broad heads.

In the case of companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads.

In the case of other companies, gross income derived under broad heads.

Current Format

In case of manufacturing company : The value of the raw materials consumed, giving item-wise break-up and indicating the quantities thereof @

The opening and closing stocks of goods produced, giving break-up in respect of each class of goods and indicating the quantities thereof. @

In the case of trading companies, the purchases made and the opening and closing stocks, giving break-up in respect of each class of goods traded in by the company and

In the case of companies rendering or supplying services, the gross income derived from services rendered or supplied.

In the case of other companies, gross income derived under broad heads.

Disclosures – Quantity Information DispensedProfit & Loss Statement

@ - In the current format the term principal items is used which is defined to mean 10% of aggregate value

Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements.


Additional Information - Disclosures

Revised Format Employee Benefits Expense [showing

separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses].

Depreciation and amortization expense;

Current Format Salaries, wages and bonus.

Contribution to provident and other funds. Workmen and staff welfare expenses [to the extent not adjusted from any previous provision or reserve.

The amount provided for depreciation, renewals or diminution in value of fixed assets. If no provision is made the fact shall be stated



Additional information - Disclosures

(a) Consumption of stores and spare parts.

(b) Power and fuel.

(c) Rent.

(d) Repairs to buildings.

(e) Repairs to machinery.

(f) Insurance .

(g) Rates and taxes, excluding, taxes

on income.

(h) Miscellaneous expenses.

Any item of income or expenditure

which exceeds one per cent of the

revenue from operations or

Rs.1,00,000, whichever is higher;

(a) Consumption of stores and spare parts.

(b) Power and fuel

(c) Rent.

(d) Repairs to buildings.

(e) Repairs to machinery

(g)Insurance.

(h) Rates and taxes, excluding, taxes on income.

(i) Miscellaneous expenses (if expense = 1% of revenue or > ` 5,000 whichever is higher, to be shown under a separate head)



Additional Information - Disclosures

Revised FormatPayments to the auditor as

(a) auditor, (b) for taxation matters, (c) for company law matters, (d) for management services, (e) for other services, (f) for reimbursement of expenses;

Prior period items;

Current FormatPayments to the auditor as

(a) as auditor; ( b) as adviser, or in any other capacity, in

respect of (i)taxation matters; (ii)company law matters; (iii) management services; and (c) in any other manner].

-----




Revised Format Value of imports calculated on C.I.F. basis

by the company during the financial year in respect of –

I. Raw materials;

II. Components and spare parts;

III. Capital goods; Expenditure in foreign currency during the

financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters;

Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;

Current Format Value of imports calculated on C.I.F. basis

by the company during the financial year in respect of:—

I. Raw materials;

II. Components and spare parts;

III. Capital goods; Expenditure in foreign currency during the

financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters;

Value of all imported raw materials, spare parts and components consumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;




Revised Format The amount remitted during the year in

foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related;

Earnings in foreign exchange classified under the following heads, namely:-

I. Export of goods calculated on F.O.B. basis;

II. Royalty, know-how, professional and consultation fees;

III. Interest and dividend;

IV. Other income, indicating the nature thereof

Current Format The amount remitted during the year in

foreign currencies on account of dividends, with a specific mention of the number of non-resident shareholders, the number of shares held by them on which the dividends were due and the year to which the dividends related;

Earnings in foreign exchange classified under the following heads, namely:—

(i) export of goods calculated on F.O.B. basis;

(ii) royalty, know-how, professional and consultation fees;

iii) interest and dividend;

(iv) other income, indicating the nature thereof.



DisclosuresTransfer (to/from) Reserves & Provisions - Rules unchanged

Revised Format The aggregate, if material, of any amounts

set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance-sheet is made up.

The aggregate, if material, of any amounts withdrawn from such reserves.

The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments.

The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required

Current Format The aggregate, if material, of any amounts

set aside or proposed to be set aside, to reserves, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as at which the balance sheet is made up.

The aggregate, if material, of any amounts withdrawn from such reserves.

The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments.

The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required.



Disclosures – New Items

Adjustments to the carrying amount of investments Net gain/loss on foreign currency transaction and translation (other than

considered as finance cost) Prior Period Items Details of items of exceptional and extraordinary nature Finance costs to be classified as

Interest Expense Other borrowing costs Applicable net gain/loss on foreign currency transactions and translation.


The disclosure as per the current format to the effect that the amount of interest on the company’s debentures and other fixed loans (loans for fixed period), stating separately the amount of interest to the managing director and the manager, if any. has been dispensed


Disclosure of Managerial Remuneration and Retirement benefits Dispensed

Managerial remuneration under section 198 of the Act paid or payable during the financial year to the directors (including managing directors), or manager, if any;

Other allowances and commission including guarantee commission (details to be given);]

Any other perquisites or benefits in cash or in kind (stating approximate money value where practicable);

Statement showing the computation of net profits in accordance with section 349 of the Act with relevant details of the calculation of the commissions payable by way of percentage of such profits to the directors (including managing directors) or manager (if any).

Retirement Benefits

(a) pensions,

(b) gratuities,

(c) payments from provident funds, in excess of own subscriptions and interest thereon,

(d) compensation for loss of office,

(e) consideration in connection with retirement from office

Current Format



Disclosures – Items Dropped in the revised format

Commission paid to sole selling agents within the meaning of sec 294 of the Act. Commission paid to other selling agents. Brokerage and discount on sales, other than the usual trade discount. The amount reserved for

Repayment of share capital Repayment of loans

The aggregate amount of the dividends paid and proposed, and stating whether such amounts are subject to deduction of income-tax or not.

Amount, if material, by which any items shown in the profit and loss account are affected by any change in the basis of accounting.

Details of licensed capacity, installed capacity and actual production. PART III of current schedule VI explaining the meaning of expressions ‘provision’,

‘reserve’, ‘capital reserve’ and ‘quoted investments’ . PART IV comprising of Balance sheet and company’s general business profile



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revised schedule vi of the companies act, 1956 ca. rajkumar s adukia b.com(hons.) fca, acs,mba,...

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