revised schedule vi print disabled 1

RevisedSchedule VItotheCompaniesAct

Applicablew.e.f.FinancialYear:20112012

1st &2nd Floor,H.K.House,AshramRoad,Ahmedabad 380009

InsightintoScheduleVI Thereisaneedtochangealmostfivedecades oldexistingScheduleVI(hereinafter

referredasoldScheduleVI)tokeepthepacewiththechangestakingplaceintheinternationalarena.

Th fi i l t b d f th ti i ft 01 04 Thefinancialstobepreparedfortheaccountingyearcommencingonorafter01042011.

Revised Schedule VI is applicable to all the companiesRevisedScheduleVIisapplicabletoallthecompanies.

RevisedScheduleVIissilentforitsapplicabilitytoconsolidatedfinancialstatements,asperAS 21whichrequiresconsolidatedfinancialstatementtobepreparedinthep q p pformatasadoptedbyitsparentsstandalone,revisedscheduleVIisalsoapplicabletotheconsolidatedfinancialstatements.

Th i fi f 2010 11 h ll l b d i i d f Thecomparativefigures of201011shallalsobepresentedinrevisedformat.

UnlikeoldScheduleVIwheretheoptionofhorizontalorverticalformatwasavailable,revised Schedule VI presentation of Balance sheet and profit and loss account shallrevisedScheduleVIpresentationofBalancesheetandprofitandlossaccountshallonlybedoneinverticalformat.

MajorpointsinRevisedSchedule VI NewprescribedformatforStatementofProfitandLossisbasedonthenatureofp

accounts. ThisisaimedatbringingmorestandardisationandcomparabilitytothepresentationoftheP&L.Aspercurrentpractice,inabsenceofaprescribedformat,variousmodesofpresentationincludingfunctionalandhybridclassificationswereaccepted.

Appropriationsofprofitshouldformpartofnotestoaccountsandnotpartof Statementofprofitandloss.

InsteadofSchedulestothefinancialstatementallthedetailsshall begiveninthenotestoaccounts.

Tradereceivablesoutstandingfor6monthsormorefromtheduedateinsteadsalesinvoicedate.

Quantitativedisclosuresrelatingtoturnover,rawmaterials,purchases,installedcapacity,actualproduction,detailsofmanagerialremunerationsaretobedispensedwith.

GeneralInstructions1) DisclosurerequirementsunderrevisedScheduleVIareinadditiontoandnotinsubstitutionofthe

disclosurerequirementsspecifiedintheAccountingstandardsandCompaniesAct.(EG) Thedisclosurerequirementsareminimumandanylineitems,sublineitemsandsubtotalsshallbepresentedasanadditionorsubstitutiononthefaceoftheFinancialstatementwhensuchisrelevantfordisclosingfinancialpositionorperformanceortocatertoindustry/sectorspecific:

As per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currencyAs per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currencyexposure to be made separately.

2) NopossibilityofconflictbetweenAccountingstandardsandScheduleVIasonmodificationofaccountingstandardsprescribedundertheCompaniesAct,ScheduleVIwouldstandmodifiedaccordingly.

3) All disclosures required by Companies Act to be made in notes to accounts3) AlldisclosuresrequiredbyCompaniesActtobemadeinnotestoaccounts.

EG:DisclosureunderCompaniesAct: DonationtoPoliticalpartiesshouldbeshownseparatelythoughitisnotrequiredasperRevisedScheduleVIasthesameisrequiredunderSection293AoftheCompaniesAct.

4) Notestoaccountsshallcontaininformationinadditiontotheinformationcontainedinthefinancialstatement,suchas(i) narrative notes;(i)narrativenotes;(ii)disaggregationofitemsshowninfinancials;(Eg :longterm&otherinvestments)(iii)includeitemswhichdonotqualifyforrecognitioninfinancials(Eg:Managerialremuneration)

GeneralInstructions(contd.)5) FinancialStatementsshouldnotprovideexcessivedetailsandatthesametimeitshould) p

nothideimportantdetails.

Itmeansthatcompanyshouldnotdiscloseimportantinformationbyincludingamonglargeamountofinsignificantdetails.

6) Dependingontheturnover,figuresinfinancialscan beroundedoff:(i)lessthanRs100crore Tonearesthundreds,thousands,lakhs ormillions( )(ii)Rs100crore ormore Tonearestlakhs,millionsorcrores ordecimalsOnceunitusedshallbeuniformlyusedinthefinancialstatement.

7) For the Revised Schedule the terms used herein shall be as per the applicable Accounting7) FortheRevisedSchedule,thetermsusedhereinshallbeaspertheapplicableAccountingStandards.(Example RelatedParties)

8) In the preparing the balance sheet the word Current Year is replaced as Current8) Inthepreparingthebalancesheettheword CurrentYear isreplacedas CurrentreportingperiodandPreviousYearasPreviousreportingperiod.

9) Cross referencing each line item with notes and vice versa required9) Crossreferencingeachlineitemwithnotesandviceversarequired.

Sr Particulars RevisedScheduleVI OldScheduleVI

ComparisonbetweenOldandRevisedScheduleVI

1 Disclosure Onlyverticalformat.

formatBalancesheetandProfitandlossweredisclosedeitherinHorizontalformatorin Vertical format

2 Disclosure InbalancesheetEquityandformat LiabilitiesandAssets

aredisclosed.

inVerticalformat.

InbalancesheetSourcesofFundsandApplicationofFundsaredisclosed

3 Disclosure Onliabilitysidethereare4headsheads (i)Shareholdersfunds

(ii)Shareapplicationmoney

Therewereonly2headsonliabilityside(i)Shareholdersfundand(ii)Loanfunds

There were 4 heads on asset side :( ) pp ypendingallotment

(iii)Noncurrentliabilitiesand(iv)Currentliabilities

Therewere4headsonassetside:

(i)FixedAssets

(ii)Investments

(iii)Current assets, loans and advancesOnassetsidethereare2heads:(i)Noncurrentassets(ii)Currentassetsd f th h d i bif ti

(iii)Currentassets,loansandadvances

(iv)Miscellaneousexpenditure

andfurtherheadwisebifurcation

Sr Particulars RevisedScheduleVI OldScheduleVI

ComparisonbetweenOldandRevisedScheduleVI

4 FixedAssets FixedassetsareshownundernoncurrentassetsandarebifurcatedintoTangibleandIntangibleassets.

Therewasnobifurcationrequiredfortangibleandintangibleassets.Differentheadsaredisclosed:

(i)Goodwill (ii) Land (iii) Building (iv)(i)Goodwill(ii)Land(iii)Building(iv)Leasehold(v)Railwaysidings(vi)plant&machinery(vii)Furniture&fittings(viii)developmentofproperty(ix)patents,trademark and design (x) livestock (xi)

5 Borrowings Longtermborrowingstobeshownundernoncurrentliabilitiesand

trademarkanddesign(x)livestock(xi)vehicles,etc.

Shortterm&longtermborrowingsaregroupedtogetherundertheheadLoanfund

shorttermborrowingstobeshownundercurrentliabilitieswithseparatedisclosureforsecured/unsecuredloansinbothcategories.

withsubheadSecured/Unsecured.

6 Investments Noseparateheadforinvestment,itisbifurcatedintoNonCurrentandCurrentassets.

7 Loans & No separate head it is bifurcated

AllinvestmentstobedisclosedundertheheadInvestment.

L & Ad di l d l ith7 Loans& Noseparatehead,itisbifurcatedAdvances intoNoncurrent&Currentassets.

Loans&AdvancesaredisclosedalongwithCurrentassets.

PARTI FormofBALANCESHEETNameoftheCompany.BalanceSheetasat

Particulars Note Figuresas attheendNo.

g

CurrentReportingPeriod

PreviousReportingPeriod

I EQUITYANDLIABILITIES

h h ld f d1 Shareholdersfunds

A Sharecapital

B Reservesandsurplus

C Money received against share WarrantsC MoneyreceivedagainstshareWarrants

2 Shareapplicationmoneypendingallotment

3 Noncurrentliabilities

A Longterm borrowingsA Long termborrowings

B Deferredtaxliabilities(Net)

C OtherLongtermliabilities

D Longtermprovisions

4 Currentliabilities

A Shorttermborrowings

B Tradepayables

C Othercurrentliabilities

D Shorttermprovisions

TOTAL

Contd[PARTI FormofBALANCESHEET]Particulars NoteNo. Figuresas attheend

CurrentReporting PreviousReportingPeriod Period

II ASSETS

1 Noncurrentassets

A Fixed assetsA Fixedassets

I Tangibleassets

II Intangibleassets

III Capitalworkinprogress

IV Intangibleassetsunderdevelopment

B Noncurrentinvestments

C Deferredtaxassets(net)

D L t l d dD Longtermloansandadvances

E Othernoncurrentassets

2 Currentassets

A Currentinvestments

B Inventories

C Tradereceivables

D Cashandcashequivalents

E Shorttermloansandadvances

F Othercurrentassets

TOTAL

PARTII FormofSTATEMENTOFPROFITANDLOSSNameoftheCompany.Profitandlossstatementfortheyearended

Particulars NoteNo. Figures fortheCurrentReportingPeriod


I Revenuefromoperations

II Otherincome

III TotalRevenue(I+II)

IV Expenses:

Costofmaterialsconsumed

PurchasesofStockinTrade

h f f h d d k dChangesininventoriesoffinishedgoods,workinprogressandStockinTradeEmployeebenefitsexpense

Financecosts

Depreciationandamortizationexpense

Otherexpenses

Totalexpensesp

V Profitbeforeexceptionalandextraordinaryitemsandtax(IIIIV)

VI Exceptionalitems

VII Profitbeforeextraordinaryitemsandtax(V VI)

Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]

Particulars NoteNo. Figures forthe

Current PreviousCurrentReportingPeriod


VIII ExtraordinaryItems

IX Profitbeforetax(VII VIII)

X Taxexpense:

(1) Current tax (including MAT on current tax)(1) Currenttax(including MAToncurrenttax)

(2) Deferredtax

XI Profit(Loss)fortheperiodfromcontinuingoperations(VIIVIII)

XII Profit/(loss)fromdiscontinuingoperations Thisshallbedisclosedevenifthere isnotsuchbalanceasonBalancesheetdate.

XIII Taxexpenseofdiscontinuingoperations

XIV P fi /(l ) f Di i i i ( f ) (XII XIII)XIV Profit/(loss)fromDiscontinuingoperations(aftertax)(XIIXIII)

XV Profit(Loss)fortheperiod(XI+XIV)

XVI Earningsperequityshare:

(1) Basic

(2) Diluted

Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]

Companymaychoosetopresentanadditionalsubtotalsofcurrentassetsandp y y pcurrentliabilitiesonfaceofBalancesheet.

SimilarlycompanymaychoosetopresentanadditionallineitemonfaceofStatementofProfitandlossaccountlikeEBITDA.

Excess/ShortprovisionofIncometaxofearlieryearsbeshownseparately.

Definitions

1 CurrentAssetmeansanassetwhichsatisfiesANYofthefollowingcriteria:

(a) (i)expectedtoberealizedin,or

(ii)intendedfor(1)saleor

(2)consumption

inthecompanysnormaloperatingcycle;

OR

(b) heldprimarilyforthepurposeofbeingtraded;

OR

(c) expectedtoberealizedwithin12monthsafterthereportingdate;

OR(d) cashorcashequivalent unlessitisrestrictedfrombeingexchangedorusedtosettle

aliabilityforatleast12monthsafterthereportingdate.

All other assets shall be classified as noncurrentAllotherassetsshallbeclassifiedasnon current.

2 Anoperatingcycle is:(Examples1to5) Timebetweentheacquisitionofassetsforprocessingandtheirrealizationincashor

h lcashequivalents. wherethenormaloperatingcyclecannotbeidentified,itisassumedtohave of12

months.

3 CurrentLiabilitymeansaliabilitywhichsatisfiesANYofthefollowingcriteria:

(Contd.)Definitions

y y g

(a) expectedtobesettledinthecompanysnormaloperatingcycle;

OR

(b) heldprimarilyforthepurposeofbeingtraded;( ) p y p p g ;

OR

(c) duetobesettledwithin12monthsafterthereportingdate;

OR

(d) thecompanydoesnothaveanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingdate.

All other liabilities shall be classified as non current All other liabilities shall be classified as noncurrent.

4 Trade receivable means amount due on account of goods sold or services rendered inthe normal course of business.

5 Trade payable means amount due on account of goods purchased or services receivedin the normal course of business.

6 Areservespecifically representedbyearmarked investments shall be termedasa fund6 Areservespecifically representedbyearmarked investments shall be termedasa fund.

7 Financial statementmeans balance sheet and statement of profit and loss.

NorAccountingstandardsorrevisedScheduleVIareprovidingguidanceinrespectof

SpecialPurposeEntity

g p g g pspecialpurposeentity[SPE].

Hence,oneshouldseekguidancefromInd AS 27.

Acompanyshalldisclosethefollowinginthenotestoaccounts:

GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET

p y g

A ShareCapital

foreachclassofsharecapital(differentclassesofpreferencesharestobetreatedseparately):

(a) thenumberandamountofsharesauthorized;

(b) thenumberofsharesissued,subscribedandfullypaid,andsubscribedbutnotfullypaid;

(c) parvaluepershare;

(d) areconciliationofthenumberofsharesoutstandingatthebeginningandattheendofthereportingperiod;

( ) f f(e) therights,preferencesandrestrictionsattachingtoeachclassofsharesincludingrestrictionsonthedistributionofdividendsandtherepaymentofcapital;

(f) sharesinrespectofeachclassinthecompanyheldbyitsholdingcompanyoritsultimate holding company including shares held by or by subsidiaries or associates ofultimateholdingcompanyincludingsharesheldbyorbysubsidiariesorassociatesoftheholdingcompanyortheultimateholdingcompanyinaggregate;

(g) shares(equity+preference)inthecompanyheldbyeachshareholderholdingmorethan5%sharesspecifyingthenumberofsharesasonthebalancesheetdate;(alongwiththecomparativeofpreviousyear)

(h) sharesreservedforissueunderoptionsandcontracts/commitmentsforthesaleofshares/disinvestment,includingthetermsandamounts;

(i) Fortheperiodoffiveyearsimmediatelyprecedingthedate asatwhichtheBalance

(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET

( ) p y y p gSheetisprepared:

Aggregatenumberandclassofsharesallottedasfullypaidup:

(a)pursuanttocontract(s)withoutpaymentbeingreceivedincash.

(b)bywayofbonusshares

(c)sharesboughtback.

Sourcesfromwhichbonussharesareissued(Eg:Sharepremiumreserve)

NoNeedtogiveyearwisebreakupofsharesallotted.

(j) Termsofanysecuritiesconvertibleintoequity/preferencesharesissuedalongwiththeearliestdateofconversionindescendingorderstartingfromthefarthestsuchdate.

(k) Callsunpaid(showingaggregatevalueofcallsunpaidbydirectorsandofficers)

(l) Forfeitedshares(amountoriginallypaidup)

NotrequiredinNewSchedule VI: Disclosurerequirementforcalledupsharesisremoved. DetailsofutilizationofSharePremiumAccount. BonusSharesandSharedissuedforconsiderationotherthancash(disclosure

notrequiredbeyond5years)

B ReservesandSurplus


ReservesandSurplusshallbeclassifiedas:(a) CapitalReserves;(b) CapitalRedemptionReserve;(c) Securities Premium Reserve;(c) SecuritiesPremiumReserve;(d) DebentureRedemptionReserve;(e) RevaluationReserve;(f) ShareOptionsOutstandingAccount;(g) OtherReserves (specifythenatureandpurposeofeachreserveandtheamountin

respectthereof)(h) Surplusi.e.balanceinStatementofProfit&Lossdisclosingallocationsandappropriations

such as dividend bonus shares and transfer to/from reserves etc (Format Example)suchasdividend,bonussharesandtransferto/fromreservesetc.(Format Example)(Additionsanddeductionssincelastbalancesheettobeshownundereachofthespecifiedheads)

Notes:Notes: (i) NatureandpurposeofeachreservetobestatedONLYforthoseaggregatedunder Other Reserves

( ) p g

under OtherReserves(ii) DebitbalanceofProfitandLossaccounttobeshownasnegative.(iii) ReserveandSurplusbalancecanbenegative.

Not required in New Schedule VI :NotrequiredinNewSchedule VI: DetailsofutilizationofSharePremiumAccountinthemannerprovidedinSec78

ofCompaniesAct.

C LongTermBorrowings


g g

(i) Longtermborrowingsshallbeclassifiedas:

(a) Bonds/debentures

(b) Termloans( )

frombanks.

fromotherparties.

(c) Deferredpaymentliabilities.(eg:DeferredSalestaxliabilityandDeferredpaymentfor( ) p y ( g y p ypurchaseofAssets)

(d) Deposits (itcanbeFixeddeposits,Securitydeposits,Intercompany,etc)

(e) Loansandadvancesfromrelatedparties(Directors,companies,firmsetc).

(f) Longtermmaturitiesoffinanceleaseobligations

(g) Otherloansandadvances(specifynature).

(ii) Borrowingsshallfurtherbesubclassifiedas

(i ) secured and

(ii) unsecured.

Natureofsecurityshallbespecifiedseparatelyineachcase,(whichmeansifonesecurityisgivenformultipleloansthensamemaybeclubbedtogetherfordisclosurewithadequatecrossreferencing)

(iii) Where loans have been guaranteed by directors or others the aggregate amount of such loans under


(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuchloansundereachheadshallbedisclosed.(othersmeanspersonorentityotherthandirector)

(iv) Bonds/debentures(alongwith

(i) therateofinterestand

(ii) particularsofredemptionorconversion,asthecasemaybe)

shallbestatedindescendingorderofmaturityorconversion,startingfromfarthestredemptionorconversiondate,asthecasemaybe.Wherebonds/debenturesareredeemablebyinstallments,thedateofmaturityforthispurposemustbereckonedasthedateonwhichthefirstinstallmentbecomesy p pdue.

(v) Particularsofanyredeemedbonds/debentureswhichthecompanyhaspowertoreissueshallbedisclosed.

(vi) Termsofrepaymentoftermloansandotherloansshallbestated.(i)Tenorofmaturity(ii)numberofinstallments(iii)Amountofinstallmentdue(iv)Rateofinterest(v)othersignificantitems.

(vii) Periodandamountofcontinuingdefaultasonthebalancesheetdateinrepaymentofloansandinterestshallbespecifiedseparatelyineachcase. (I.e.defaultinanyotherdebtcovenantisnotrequiredtobementioned)

(viii) Manytimesduetodefaultofsometermsandconditionsofloanagreement,theloanbecomespayableondemand.Insuchsituationsifthebankshasnotdemandedtherepaymentofloanuptodateofapprovalofaccountsbydirectorsthensuchloanshallbetreatedasnoncurrentonly.

D OtherLongTermLiabilities


g

OtherLongtermLiabilitiesshallbeclassifiedas:

Tradepayables Others

TradePayablewillnotinclude:

1) duespayableinrespecttostatutoryobligations,

2) ContributiontoPF,

3) PurchaseofFixedAssets,

4) Interestaccruedontradepayable,etc.

SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbedisclosed.

AcceptancesshouldbedisclosedaspartofTradePayablesp p y

NotrequiredinNewScheduleVI:DisclosureofSundryCreditorsearlierincludesduesinrespectof:a) goods purchased and / or services receiveda) goodspurchasedand/orservicesreceivedb) Contractualobligations


E Longtermprovisions

Theamountsshallbeclassifiedas:

Provisionforemployeebenefits.p y Others(specifynature).

F Shorttermborrowings


(i) Shorttermborrowingsshallbeclassifiedas:

(a) Loansrepayableondemand(thiscanincludeLoansforworkingcapital)

frombanks.

fromotherparties.

(b) Loansandadvancesfromrelatedparties.

(c) Deposits,itcaninclude:

(1)Fixeddeposits

(2)Securitydeposits

(3)Publicdeposits

(4)ICD

(d) Otherloansandadvances(specifynature).

(ii) Borrowingsshallfurtherbesubclassifiedassecuredandunsecured.Natureofsecurityshallbespecifiedseparatelyineachcase.

(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuchloansundereachheadshallbedisclosed.

( ) d d f d f l h b l h d f l d(iv) Periodandamountofdefaultasonthebalancesheetdateinrepaymentofloansandinterestshallbespecifiedseparatelyineachcase.

GTradePayable:


y

a) Tradepayable

b) Others

TradePayablewillnotinclude:

1) duespayableinrespecttostatutoryobligations,

2) ContributiontoPF,) ,

3) PurchaseofFixedAssets,

4) Interestaccruedontradepayable,etc.

SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbedisclosed.

OldScheduleVIrequiredtodisclosecertaininformationonMicroSmallMediumEnterprisesDevelopment(MSMED).ThereisnosuchrequirementinRevisedScheduleVI.However,MSMEDAct,2006requiresthesedisclosuretobemadeinthefinalaccountsoftheCCompany.

Hence,requirementofMSMEDActshouldbecompliedinRevisedScheduleVIaswell.

H Othercurrentliabilities



(a) Currentmaturitiesoflongtermdebt;

(b)Currentmaturitiesoffinanceleaseobligations;

(c) Interestaccruedbutnotdueonborrowings;

(d) Interestaccruedanddueonborrowings;

(e) Incomereceivedinadvance;

(f) Unpaiddividends

(g) Applicationmoneyreceivedforallotmentofsecuritiesanddueforrefundandinterestaccruedthereon.Thisincludesadvancestowardsallotmentofsharecapital.

Particularsoftheno.ofsharestobeissued,amt.ofpremium,periodbeforewhichsharesshallbeallottedshallbedisclosed.

ItshallalsodisclosewhethertheCo.hassufficientauthorizedcapitaltocoverthesharecapital amount resulting from allotment of shares out of such application moneycapitalamountresultingfromallotmentofsharesoutofsuchapplicationmoney.Further,theperiodforwhichtheshareapplicationmoneyispendingbeyondtheperiodforallotmentasmentionedintheofferletteralongwiththereasonshallbedisclosed.

Shareapplicationmoneynotexceedingtheissuedcapitalandnotrefundableshallbepp y g pshownundertheheadEquityandshareapplicationmoneytotheextentrefundablei.e.,theamountinexcessofsubscriptionorincasetherequirementsofminimumsubscriptionarenotmet,shallbeseparatelyshownunderOthercurrentliabilities


(h) Unpaidmatureddeposits andinterestaccruedthereon

(i) Unpaidmatureddebentures andinterestaccruedthereon

(j) Otherpayables(specifynature)

NotrequiredinNewScheduleVI:

Interestaccruedandduewithloanwasearlierrequiredtobeshownwithrespectiveloannowseparatelyclassified

DisclosureofloanfromDirectorsandShareholders.

ThetitleheadofInvestorEducationandProtectionFundisnownotrequired.However,thesubheadsremainunchangedintherevisedformat(i.e.unpaiddividend,unpaidmatureddeposits,etc)

PROVISIONasaheadisnottobedisclosed.

I Shorttermprovisions


p


(a) Provisionforemployeebenefits.

(b) Others(specifynature).( ) ( p y )

FewExamplesofOthersare:

1) Provisionfordividend,) ,

2) ProvisionforTaxation,

3) ProvisionforWarranties,etc.

J Tangibleassetsshallbeclassifiedas:(a) Land.


(b) Buildings.(c) PlantandEquipment.(d) FurnitureandFixtures.(e) Vehicles.(f) Officeequipment.(g) Others(specifynature).

(ii) Assetsunderleaseshallbeseparatelyspecifiedundereachclassofasset.

Lease means; Assets given on operating lease in case of books of lessor and assets held underLeasemeans;Assetsgivenonoperatingleaseincaseofbooksoflessor andassetsheldunderfinanceleaseincaseofbooksoflessee.

(iii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthebeginningandendofthereportingperiodshowingadditions,disposals,acquisitionsthroughbusinesscombinationsd h dj ( ill i l d ERF AS 11 b i i li i ) d h l dandotheradjustments(willincludeERFasperAS11,borrowingcostcapitalisation) andtherelated

depreciationandimpairmentlosses/reversalsshallbedisclosedseparately.

(iv) Wheresumshavebeenwrittenoffonareductionofcapitalorrevaluationofassetsorwheresumshavebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuchwriteoff,oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayofanotealsoshowtheamountofthereductionorincreaseasapplicabletogetherwiththedatethereofforthefirstfiveyearssubsequenttothedateofsuchreductionorincrease.

(v) Capital Workinprogress should not include capital advances such advances should be classified(v) CapitalWork in progressshouldnotincludecapitaladvances,suchadvancesshouldbeclassifiedunderShorttermadvancesunderCurrentAdvances.

NotrequiredinNewScheduleVI: Livestock

K Intangibleassets


(i) Classificationshallbegivenas:(a) Goodwill.

(b) Brands/trademarks.

( ) C f(c) Computersoftware.

(d) Mastheadsandpublishingtitles.

(e) Miningrights.

(f) Copyrights and patents and other intellectual property rights services and operating rights(f) Copyrights,andpatentsandotherintellectualpropertyrights,servicesandoperatingrights.

(g) Recipes,formulae,models,designsandprototypes.

(h) Licensesandfranchise.

(i) Others(specifynature).

(ii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthebeginningandendofthereportingperiodshowingadditions,disposals,acquisitionsthroughbusinesscombinationsandotheradjustmentsandtherelatedamortizationandimpairment

/losses/reversalsshallbedisclosedseparately.

(iii) Wheresumshavebeenwrittenoffonareductionofcapital orrevaluationofassetsorwheresumshavebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuch

it ff dditi h ll h th d d i d fi li bl d h ll b fwriteoff,oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayofanotealsoshowtheamountofthereductionorincreaseasapplicabletogetherwiththedatethereofforthefirstfiveyearssubsequenttothedateofsuchreductionorincrease.

L Noncurrentinvestments shallbeclassifiedas:

(i) tradeinvestments(*) andotherinvestments andfurtherclassifiedas:


(a) Investmentproperty;(b) InvestmentsinEquityInstruments;(c) Investmentsinpreferenceshares(d) Investments in Government or trust securities;(d) InvestmentsinGovernmentortrustsecurities;(e) Investmentsindebenturesorbonds;(f) InvestmentsinMutualFunds;(g) Investmentsinpartnershipfirms(h) Other non current investments (specify nature)(h) Othernoncurrentinvestments(specifynature)(*)Tradeinvestmentmeansaninvestmentmadeinsharesordebenturesofothercompany

withtheintensiontopromotethetradeandbusinessofthatcompany.

Undereachclassification,detailsshallbegivenofnames ofthebodiescorporate(indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)jointventures,or(iv)controlledspecialpurposeentities)inwhominvestmentshavebeenmadeandthenatureandextentoftheinvestment somade(showingseparatelythepartlypaidinvestments).Inregardtoinvestmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheirp p p , (partners,totalcapitalandthesharesofeachpartner)shallbegiven.

AllProvisioninrespectofdisclosuresrequiredunderAS 13hastobecompliedwith.

AS 13AccountingforInvestmentshasdefinedCurrentinvestments,asinvestmentswhichared l l bl d d d b h ld f h f h d h h hreadilyrealisable andintendedtobeheldformorethanoneyearfromthedateonwhichsuch

investmentismade.

Thiscriterionisdifferentascomparedtoconceptofcurrentassetwheretheperiodof


p p prealizationis12monthsfromthereportingdate.

PresentationofallinvestmentsinBalancesheetshouldbebasedoncurrent/non currentclassificationasperRevisedScheduleVIandnotasperAS 13,sinceAS13doesnotlayd idownpresentationnorms.

(ii) Investmentscarriedatotherthanatcostshouldbeseparatelystatedspecifyingthebasisforvaluation

(iii) The aggregate amount of provision for diminution in value made in respect of all non(iii) Theaggregateamountofprovisionfordiminutioninvaluemadeinrespectofallnoncurrentinvestmentsshouldbeseparatelydisclosed

(iv) InvestmentsinLimitedLiabilitiesPartnership(LLP)shouldbedisclosedseparatelyunderthetitleOtherInvestments.SuchinvestmentsshouldnotbeclubbedwithPartnershipfirms.p

(v) Thefollowingshallalsobedisclosed:(a)Aggregateamountofquotedinvestmentsandmarketvaluethereof;(b)Aggregateamountofunquotedinvestments;(c)Aggregateprovisionfordiminutioninvalueofinvestments

NotrequiredinNewScheduleVI: Investment in same management companyInvestmentinsamemanagementcompany Investmentspurchasedandsoldduringtheyeararenotrequiredtobeshown

inthisNote.

M Longtermloansandadvances


g

(i) Longtermloansandadvancesshallbeclassifiedas:

(a) CapitalAdvances;(Example 7)

(b) SecurityDeposits;( ) y p ;

(c) Loansandadvancestorelatedparties (givingdetailsthereof);

(d) Otherloansandadvances(specifynature). (fewexamplesarePrepaidexpenses,Advancetaxes,Cenvat creditreceivable,VATcreditreceivable,MATcredit)

(ii) Theaboveshallalsobeseparatelysubclassifiedas:

(a) Secured,consideredgood;

(b) Unsecured,consideredgood;

(c) Doubtful.

(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevantheadsseparately.

(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonsoramountsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershouldbeseparately stated Give separate break up under each such loans/advancesseparatelystated.Giveseparatebreak upundereachsuchloans/advances

(v) LoansandAdvancestorelatedpartiesshouldbegiveninaccordancewithdisclosurerequirementofAS18.

Disclosurepatterncouldbeasfollows:


p

Longtermloansandadvancesshallbedisclosedas:

(1) CapitalAdvances

(a) Secured,consideredgood( ) , g

(b) Unsecured,consideredgood

(2) Prepaidexpenses unsecured,consideredgood

(3) Advancetax(NetofprovisionofRsasat31st March) unsecured,( ) ( p ) ,consideredgood.

N Othernoncurrentassets


(i) LongTermTradeReceivables(includingtradereceivablesondeferredcreditterms);

(ii) Others(specifynature)

(iii) LongtermTradeReceivables,shallbesubclassifiedas:( ) g ,

(i) (a) Secured,consideredgood;

(b) Unsecuredconsideredgood;

(c) Doubtful( )

(ii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheadsseparately.

(iii) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonordebtsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershouldbeseparatelystated.

Th ti d ti f h ld b l ifi d Oth lik iTheunamortizedportionofexpensesshouldbeclassifiedOtherslikeissueexpenses.

OCurrentInvestmentsshallbeclassifiedas:


(i) (a) InvestmentsinEquityInstruments;

(b) InvestmentinPreferenceShares

(c) Investmentsingovernmentortrustsecurities;

(d) Investmentsindebenturesorbonds;

(e) InvestmentsinMutualFunds;

(f) Investmentsinpartnershipfirms

(g) Other investments (specify nature)(g) Otherinvestments(specifynature).

Undereachclassification,detailsshallbegivenofnamesofthebodiescorporate(indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)jointventures,or(iv)controlledspecialpurposeentities)inwhominvestmentshavebeenmadeandthenatureandextentoftheinvestmentsomadeineachsuchbodycorporate(showingseparatelyinvestmentswhicharepartlypaid).Inregardtoinvestmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheirpartners,total capital and the shares of each partner) shall be giventotalcapitalandthesharesofeachpartner)shallbegiven.

(ii) Thefollowingshallalsobedisclosed:(a) Thebasisofvaluationofindividualinvestments(Nottobedisclosedfornoncurrent

investments))

(b) Aggregateamountofquotedinvestmentsandmarketvaluethereof;

(c) Aggregateamountofunquotedinvestments;

(d) Aggregateprovisionmadefordiminutioninvalueofinvestments.

P Inventories shall be classified as:


P Inventories shallbeclassifiedas:

(i) (a) Rawmaterials;

(b) Workinprogress;

(c) Finished goods;(c) Finishedgoods;

(d) Stockintrade(inrespectofgoodsacquiredfortrading);

(e) Storesandspares;

(f) Loose tools;(f) Loosetools;

(g) Others(specifynature).

(ii) Goodsintransitshallbedisclosedundertherelevantsubheadofinventories.

(iii) Mode of valuation shall be stated(iii) Modeofvaluationshallbestated.

AnyExcessmaterialwhichisnotlikelytoberealizedwithincompanysoperatingcycleisto be considered as Current Asset. (Example 9)tobeconsideredas CurrentAsset .(Example 9)

Q TradeReceivables

(i) Trade receivables outstanding for 6 months or more from the due date for payment need to


(i) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpaymentneedtobeseparatelydisclosed

(ii) Tradereceivablesshallbesubclassifiedas:

(a) Secured, considered good;(a) Secured,consideredgood;

(b) Unsecuredconsideredgood;

(c) Doubtful.

(iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads(iii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheadsseparately.

(iv) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonordebtsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershouldbeseparatelystated.(Example 10)

NotrequiredinNewScheduleVI: Debtsduefromothercompaniesunderthesamemanagementaspersection370(1B). Themaximumamountduebydirectorsorotherofficersatanytimeduringtheyearshownby

wayofanote. DisclosureofSundryDebtorsearlierincludesduesinrespectof:

a) goodssoldand/orservicesprovidedb) AmountdueunderContractualobligations.

R Cashandcashequivalents shallbeclassifiedas:(Example 8)


q ( p )

(i) (a) Balanceswithbanks;

(1) OnCurrentAccounts

(2) DepositswithOriginalmaturitylessthan3months( ) p g y

(3) Unpaiddividendaccount

(b) Cheques,draftsonhand;

(c) Unpaidmatureddeposits( ) p p

(d) Unpaidmatureddebentures

(e) Cashonhand;

(f) Othersbankbalances(specifynature).( ) ( p y )

(1) Depositswithorginalmaturityformorethan12months

(2) Depositswithorginalmaturityformorethan3monthsbutlessthan12months

(3) Marginmoneydeposit

(ii) Earmarkedbalanceswithbanks(forexample,forunpaiddividend)shallbeseparatelystated.

(iii) Balanceswithbankstotheextentheldasmarginmoneyorsecurityagainstthe


( ) g y y gborrowings,guarantees,othercommitmentsshallbedisclosedseparately.

(iv) Repatriationrestrictions,ifany,inrespectofcashandbankbalancesshallbeseparatelystated.

(v) Bankdepositswithmorethan12monthsmaturityshallbedisclosedseparately.

NotrequiredinNewScheduleVI:Bif i C Fi d d i i i d BifurcationtoCurrent,Fixeddepositetc.isnotrequirednow

ItisnotrequiredtobifurcatetobankstoScheduledandOtherbanks

SShorttermloansandadvances shallbeclassifiedas:


(i) (a) Loansandadvancestorelatedparties(givingdetailsthereof);

(b) Others(specifynature).

(ii) Theaboveshallalsobesubclassifiedas:( )

(a) Secured,consideredgood;

(b) Unsecured,consideredgood;

(c) Doubtful.( )

(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevantheadsseparately.

(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonoramountsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershallbeseparatelystated.

( ) T d i bl t t di f 12 th f th d d t f t(v) Tradereceivablesoutstandingfor12monthsormorefromtheduedateforpayment(againstearlierrequirementofinvoicedate)needtobeseparatelydisclosed

(vi) UnderOtherscurrentassetswhichdoesnotfitintootherassetswillbeclassifiedhere;eg. unamortised premium on forward contract, etc.eg.unamortisedpremiumonforwardcontract,etc.

T Othercurrentassets(specifynature).


( p y )

Thisisanallinclusiveheading,whichincorporatescurrentassetsthatdonotfitintoanyotherassetcategories.

Theheadcontainsitemssuchas:

1) Interestaccruedoninvestments

2) Unbilledrevenue

SuchbalancesshouldbeincludedhereinOtherCurrentAssets:

(i) Insuranceclaimsreceivable

(ii) SaleofFixedAssets

(iii) Contractuallyreimbursablebalances.

ItmustmenotedthattheseitemsshouldnotbeincludeinTradereceivablebalance

U Contingentliabilitiesandcommitments


(totheextentnotprovidedfor)

(i) (a) Claimsagainstthecompanynotacknowledgedasdebt;

(b) Guarantees;

(c) Othermoneyforwhichthecompanyiscontingentlyliable

(ii) Commitmentsshallbeclassifiedas:

(a) Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotid d fprovidedfor;

(b) Uncalledliabilityonsharesandotherinvestmentspartlypaid

(c) Othercommitments(specifynature).(Example 6)

will include revenue and capital commitments Therefore it will include those non willincluderevenueandcapitalcommitments.Therefore,itwillincludethosenoncancellablecontractualcommitmentsforpurchaseofRM&PM,purchaseofinvestments,salescontracts,servicecontractsi.e.thecancellationofwhichresultinpenalty.Itwillalsoincludecommitmentsinnatureofbuybackarrangements,

i f b idi i JV d i i l d icommitmentfromsubsidiaries,JVs,derivativerelatedcommitments.

WhencompaniesundertakestoperformitsownobligationandgivesGuaranteethenitisnotconsideredContingentLiability.BanksgenerallygiveGuaranteefor:

1) LC1) LC

2) Fordeferredpaymenttoforeignsuppliers,etc.

forthispurposeevenifcompanygivescounterguaranteetobankisnotcontingentliability.


V The amount of dividends proposed to be distributed to equity and preferenceshareholders for the period and the related amount per share shall be disclosedseparately. Arrears of fixed cumulative dividends on preference shares shall also bedi l d ldisclosed separately.

W Where in respect of an issue of securities made for a specific purpose, the whole or partof the amount has not been used for the specific purpose at the balance sheet dateof the amount has not been used for the specific purpose at the balance sheet date,there shall be indicated by way of note how such unutilized amounts have been used orinvested.

X If, in the opinion of the Board, any of the assets other than fixed assets and noncurrentinvestments do not have a value on realization in the ordinary course of business at leastequal to the amount at which they are stated, the fact that the Board is of that opinion,shall be stated.

1 AllprovisionsofProfit&LossaccountwillalsobeapplicabletoIncome&Expenditureaccountwhichisll d b C i t i b i f fit

GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS

generallypreparedbyCompaniesnotcarryingonbusinessforprofit.2 RevenuefromOperations(otherthanfinancecompany)shallbedisclosedinnotes:

(A) (a) saleofproducts(*)(b) saleofservice(c) Other operating revenue (shall include scrap sales) (**)(c) Otheroperatingrevenue(shallincludescrapsales)( )Less:(d) Exciseduty(Opinion)(*)(1)wherecompanycollectstaxonlyasanintermediary,revenueshouldbepresentedNetof

taxestaxes.(2)VATisnotrevenueanditspaymentshouldnotbebookedasanexpense

(**)whichincomewillfallunderthisheadingshouldbedecidedbasedonfactsofeachcaseanddetailedunderstandingoftheactivitiesofthecompany.

(B) RevenuefromOperationsincaseoffinancecompany :( ) p p y(a) interest(b) otherfinancialservices

Revenueundereachoftheaboveheadsshallbedisclosedseparatelybywayofnotestoaccountstotheextentapplicable.

3 Financialcostsshallbeclassifiedas:(a) interestexpense(b) Otherborrowingcosts;(includes(1)Commitmentcharges,(2)loanprocessingcharges,(3)loan

facilitationcharges,(4)discount/premiumonborrowings,(5)interestonshortfallonIncometax)(c) Applicablenetgain/lossonforeigncurrencytransactionsandtranslation.(Guide)

4 OtherIncome (**)shallbeclassifiedas:(a) InterestIncome(incaseofacompanyotherthanafinancecompany);


NotrequiredinNewScheduleVI:

(b) DividendIncome;(c) Net gain/ loss on sale of investments fixed assets and ERF gain

IncomefrominvestmentwerebifurcatedtoTradeinvestmentandotherinvestmentssuchbifurcationisnotrequiredinrevisedformat.

(c) Netgain/lossonsaleofinvestments,fixedassetsandERFgain(d) Othernonoperatingincome(netofexpensesdirectlyattributabletosuchincome).

5 AdditionalInformationbywayofnotes onadditionalinformationregardingaggregateexpenditureandincomeonthefollowingitems:

(i) (a) EmployeeBenefitsExpense[showingseparately(i) salariesandwages,(ii) contributiontoprovidentandotherfunds,(willalsoincludesuperannuation,gratuity)(iii) expense on Employee Stock Option Scheme (ESOP) & Employee Stock Purchase(iii) expenseonEmployeeStockOptionScheme(ESOP)&EmployeeStockPurchase

Plan(ESPP),(iv)staffwelfareexpenses].

(b) Depreciationandamortizationexpense;(c) Anyitemofincomeorexpenditurewhichexceeds1%oftherevenuefrom

operationsorRs.1,00,000,whicheverishigher;(d) InterestIncome;(e) Interest Expense;(e) InterestExpense;(f) DividendIncome;(g) Netgain/lossonsaleofinvestments;(h) Adjustmentstothecarryingamountofinvestments;

(i) Netgainorlossonforeigncurrencytransactionandtranslation(otherthanconsideredasfinance


cost);

(j) Paymentstotheauditoras(a) auditor,(b) fortaxationmatters,( ) ,(c) forcompanylawmatters,(d) formanagementservices,(e) forotherservices,(f) forreimbursementofexpenses;( ) p ;

(k) Detailsofitemsofexceptionalandextraordinarynature;(l) Priorperioditems;

(ii) (a) Inthecaseofmanufacturingcompanies,(1) Raw materials under broad heads(1) Rawmaterialsunderbroadheads.(2) goodspurchasedunderbroadheads.

BroadheadsmeanscategoriesforRMpurchased.10%oftotalvalueofsales/consumptionofRMisanacceptablethresholdtodetermineBroadheads.

(b) In the case of trading companies purchases in respect of goods traded in by the company under

Note: Broadheadsshallbedecidedtakingintoaccounttheconceptofmaterialityandpresentationoftrueandfairviewoffinancialstatements.

(b) Inthecaseoftradingcompanies,purchasesinrespectofgoodstradedinbythecompanyunderbroadheads.

(c) Inthecaseofcompaniesrenderingorsupplyingservices,grossincomederivedformservicesrenderedorsuppliedunderbroadheads.

(d) Inthecaseofacompany,whichfallsundermorethanoneofthecategoriesmentioned


in(a),(b) and(c)above,itshallbesufficientcompliancewiththerequirementshereinifpurchases,sales andconsumptionofrawmaterialandthegrossincomefromservicesrenderedisshownunderbroadheads.

(e) In the case of other companies gross income derived under broad heads(e) Inthecaseofothercompanies,grossincomederivedunderbroadheads.

(iii) Inthecaseofallconcernshavingworksinprogress,worksinprogressunderbroadheads.

(iv) (a) The aggregate if material of any amounts set aside or proposed to be set aside to(iv) (a) Theaggregate,ifmaterial,ofanyamountssetasideorproposedtobesetaside,toreserve,butnotincludingprovisionsmadetomeetanyspecificliability,contingencyorcommitmentknown toexistatthedateastowhichthebalancesheetismadeup.

(b) Theaggregate,ifmaterial,ofanyamountswithdrawnfromsuchreserves.( ) gg g , , y

(v) (a) Theaggregate,ifmaterial,oftheamountssetasidetoprovisionsmadeformeetingspecificliabilities,contingenciesorcommitments.

(b) Theaggregate,ifmaterial,oftheamountswithdrawnfromsuchprovisions,asnolongerrequired.

(vi) Expenditureincurredoneachofthefollowingitems,separatelyforeachitem:


(a) Consumptionofstoresandspareparts.(b) Powerandfuel.(c) Rent.(d) R i t b ildi(d) Repairstobuildings.(e) Repairstomachinery.(g) Insurance.(h) Rates and taxes (excluding taxes on income but including Wealth tax)(h) Ratesandtaxes,(excludingtaxesonincomebutincludingWealthtax)(i) Miscellaneousexpenses,

(vii) (a) Dividendsfromsubsidiarycompanies.

(b) P i i f l f b idi i(b) Provisionsforlossesofsubsidiarycompanies.

(viii) Theprofitandlossaccountshallalsocontainbywayofanote thefollowinginformation,namely:

a) ValueofimportscalculatedonC.I.F. basisbythecompanyduringthefinancialyearinrespectofI. Rawmaterials;II C t d tII. Componentsandspareparts;III. Capitalgoods;

b) Expenditureinforeigncurrency duringthefinancialyearonaccountofroyalty,


) p g y g y y yknowhow,professionalandconsultationfees,interest,andothermatters;

c) Totalvalueifallimportedrawmaterials,sparepartsandcomponentsconsumedduringthefinancialyearandthetotalvalueofallindigenousrawmaterials,spare

d i il l d d h f h h lpartsandcomponentssimilarlyconsumed andthepercentageofeachtothetotalconsumption;

d) Theamountremittedduringtheyearinforeigncurrenciesonaccountofdividends with a specific mention of the total number of nonresidentdividends withaspecificmentionofthetotalnumberofnon residentshareholders,thetotalnumberofshares heldbythemonwhichthedividendsweredueandtheyeartowhichthedividendsrelated;

e) Earningsinforeignexchangeclassifiedunderthefollowingheads,namely:

(i) ExportofgoodscalculatedonF.O.B. basis;

(ii) Royalty,knowhow,professionalandconsultationfees;

(iii) Interestanddividend;

(iv) Otherincome,indicatingthenaturethereof


NotrequiredtomentioninnotesofRevisedSchedule VI: Quantityofsales QuantityofRawmaterialconsumedQ y Installedcapacityandproductiondetails Theamountofinterestoncompanysdebenturesandfixedloanstomanaging

directorandmanager.M i l ti t b id bl ti 198 d Managerialremunerationtobepaidorpayableaspersection198andcommissionpayabletodirectorsaspersection349.

A SHARECAPITAL:

AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI

1) Reconciliationofopeningandclosingofnumberofsharesoutstanding

2) Sharesheldbyassociatesoftheholdingcompanyorultimateholdingcompany

3) NameandNumberofsharesheldbyshareholdersholdingmorethan5%shares(asthereferenced t i t ti d l i ll it h ld b B l h t d t )dateisnotmentioned,logicallyitshouldbeBalancesheetdate)

4) Incaseofsecuritiesconvertibleintoequity/preferencesharesthenworkingfordateofconversionindescendingorderstartingfromthefarthestsuchdate.

B CURRENT LIABILITES :B CURRENTLIABILITES:

Amountofliabilitiesduetobesettledwithin12monthsfromthereportingdate,forworkingofcurrentliabilities

B1 LONGTERMBORROWINGS:

Theentirepointisnew,hencethecompanywillhavetofindout:1) Termloan longtermandshortterm.2) Deposits(includingfixeddeposits) longtermandshortterm.3) Loan from related parties long term and short term3) Loanfromrelatedparties longtermandshortterm.4) TradePayable longtermandshortterm.5) Provisionforemployeebenefits longtermandshortterm.6) Bonds/debenturesshallbestatedindescendingorderofmaturitystartingfromfarthest) g y g

redemption.7) Termsofrepaymentoftermloansandotherloansshallbestated.8) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest.

B2 SHORTTERMBORROWINGS:


1) Loansthatarerepayableondemand(includesLoansforworkingcapital)

2) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest

Note: workingtobifurcateAllBorrowings&ProvisionstoLONGTERMandSHORTTERMg g

B3 OTHERCURRENTLIABILITES:

1) Amountofcurrentmaturitiesoflongtermdebt) g

2) Amountofcurrentmaturitiesforfinancelease

3) Amountofincomereceivedinadvance

4) Amountofinterestaccruedonmatureddepositsanddebentures) p

A TANGIBLEASSETS:


1) Bifurcationofleaseassetsundereachclassofassets

2) Amountofassetsacquiredthroughbusinesscombinations(i.e.bifurcationfromadditiontoassets)

3) Incaseofrevaluationofassets,amountofreductionandincreaseinthevalueofassetforsubsequent5years.

B CURRENT ASSETS :B CURRENTASSETS:

Bifurcationofassetswhichareexpectedtoberealizedandconsumedinnormaloperatingcycle.

Amountofassetsexpectedtoberealizedwithin12monthsafterthereportingdate.p p g

B1 NONCURRENTINVESTEMENTS:

1) Amountofinvestmentinproperty(notforbusinesspurposeandwheretheintensionisto invest)toinvest)

2) Classificationofallnoncurrentinvestmentsin(i)subsidiaries(ii)associates(iii)jointventures(iv)controlledspecialpurposeentities.

B2 LONGTERMLOANSANDADVANCES:

1) AmountofCapitaladvances

2) Amountofsecuritydeposits

B3 OTHERNONCURRENTASSETS:


1) Amountoflongtermtradereceivables

B4 INVENTORIES:

1) AmountofGoods in transitundereachcategoryofinventory

B5 TRADERECEIVABLES:

1) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpayment(againstearlierrequirementofinvoicedate)needtobeworkedout

B6 CASHANDCASHEQUIVALENTS:

1) Amountofcheques,draftsonhand

2) Earmarkedbalanceswithbanks

3) Repatriationrestrictionsinrespectofcashandbankbalances

4) Amountofbankdepositsmorethan12monthsmaturity

FINANCECOSTS:

AdditionaldetailstobeworkedoutforpreparingProfitandlossasperRevisedSchedule VI

1) Gain/Lossonforeigncurrencytransactiontobeseparatedintofinancecostsandotherexpenses

OTHERINCOME:

1) Amountofdirectlyattributableexpensestoearnnonoperatingincomes.

ADDITIONALINFORMATION:

1) Detailsofincome andexpensewhichismorethan1%oftherevenuefromoperationsorRs1Lac,whicheverhigher

2) Amountofnetgainorlossonforeigncurrency(otherthanconsideredasfinancecosts)

3) DetailsofRawmaterials

4) Detailsofworksinprogress

5) Fewcircumstantialexamples ofSPEare:1) SPEforspecialbusinessneedssothattheentityobtainsbenefitsfromtheSPEsbusiness

2) EntityhasdecisionmakingpowertoobtainmajorityofthebenefitsoftheactivitiesofSPE

3) E i h i h h b fi f SPE d h f i d i k i id h3) EntityhasrightoverthebenefitsofSPEandthereforeisexposedtoriskincidenttotheactivitiesofSPE

4) EntityretainsthemajorityresidualorownershiprisksrelatedtoSPEoritsassetinordertoobtainbenefitsfromitsactivities.

ChartofAccountswithOldandRevisedGrouping

Narration Grouping Old Grouping Rev Sch VI

TermLoan Exim bank LoansSecured TermLoansfromOthers

NoncurrentLiabilities Longtermborrowings TermloansfromOthers

Corporation BankTermLoanRupeeTermLoan II

Loans Secured TermLoansfromBanks

Noncurrent Liabilities Longtermborrowings Termsloansfrombanks

ABC B k EEFC A t L S d W ki C t Li biliti Sh tABCBankEEFC Account Loans Secured WorkingCapital

CurrentLiabilities Shorttermborrowings Fixeddeposit

Deferred Sales tax loan Loans Unsecured Deferred Non Current Liabilities LongDeferredSalestaxloan LoansUnsecured DeferredSalesTaxloan

NonCurrentLiabilitiesLongtermborrowingsDeferredSalesTaxloan

Provision for RM Product A Current liabilities and Current Liabilities TradeProvisionforRMProduct A CurrentliabilitiesandprovisionsSundry creditors&Expensespayable

CurrentLiabilities Tradepayables

DEPBUtilized Provision Currentliabilities & CurrentLiabilities TradeProvisionsSundryCreditors&Expensespayable

payables



Clearing ChargesProvision CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable

Current LiabilitiesTradePayables

Earnest Money CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable


R t ti M C t Li biliti & C t Li bilitiRetentionMoney CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable


Supplier Advances Raw Current Assets Loans & Current Assets Short termSupplierAdvances RawMaterial

CurrentAssets,Loans &Advances Advancesrecoverableincashorkind

CurrentAssets Short termLoans&Advances(referNote1)

Supplier Advances General Current Assets, Loans & Current Assets Short termSupplierAdvances General CurrentAssets,Loans &Advances Advancesrecoverableincashorkind

CurrentAssets Short termLoans&Advances(referNote1)

BonusPayableAccount CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable

CurrentLiabilities OtherCurrentLiabilitiesOtherPayablesEmployees



Staff WelfareCenterDeductions

CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable

CurrentLiabilitiesOtherCurrentLiabilities OtherPayables Employees

OtherPayDeductions CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable

CurrentLiabilitiesOtherCurrentLiabilities OtherPayables Employees

P i i f L T l C t Li biliti & C t Li bilitiProvisionofLeaveTravelAssistance


CurrentLiabilitiesShortterm ProvisionEmployeesBenefits

Stale Cheques Current Liabilities & Current Liabilities StaleCheques CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable

CurrentLiabilitiesTradePayables Others

Deferred Revenue Income Current Liabilities & Current Liabilities DeferredRevenueIncome CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable

CurrentLiabilitiesTradePayables Others

AcceptanceAgainst Bills CurrentLiabilities& CurrentLiabilities Provisions Current Liabilities Acceptance

ShorttermBorrowingsAcceptanceFromBanks



ProvisionExciseDutyFinishedGoods


CurrentLiabilitiesShortterm ProvisionsOther

LiabilityForExpenses CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable


P i i M k t M k t C t Li biliti & C t Li bilitiProvision MarktoMarket(MTM)LossesForwardContracts

Current Liabilities&Provisions ProvisionsOther


Provision For Gratuity Current Liabilities & Non current Liabilities ProvisionForGratuity CurrentLiabilities&Provisions ProvisionsEmployeesBenefits

NoncurrentLiabilitiesLongtermProvisionEmployeeBenefits

Provision For Earned Leave Current Liabilities & Noncurrent Liabilities Provision ForEarnedLeaveEncashment

CurrentLiabilities&Provisions ProvisionsEmployeesBenefits

Non currentLiabilitiesLongtermProvisionEmployeeBenefits

SecurityDeposit Contractor CurrentLiabilities & CurrentLiabilitiesProvisions CurrentLiabilities TradeDeposits&Advances

OtherCurrent LiabilitiesTradeDeposit&Advances



TDS Contractors CurrentLiabilities&Provisions CurrentLiabilities OtherLiabilities

CurrentLiabilities OtherCurrentLiabilities SalesTax&WithholdingTaxesPayableC t Current

CST Collected CurrentLiabilities&Provisions CurrentLiabilities Other Liabilities

CurrentLiabilities OtherCurrentLiabilities SalesTax&Withholding Taxes Payable OtherLiabilities &WithholdingTaxesPayable Current

EntryTaxPayable CurrentLiabilities&Provisions Current Liabilities

CurrentLiabilities OtherCurrent Liabilities Sales TaxProvisions CurrentLiabilities

OtherLiabilitiesCurrentLiabilities SalesTax&WithholdingTaxesPayable Current

ExciseDutyPayable CurrentLiabilities& CurrentLiabilities OtherProvisions CurrentLiabilities OtherLiabilities

CurrentLiabilities SalesTax&WithholdingTaxesPayable Current

ProvisionForIncomeTax CurrentLiabilities&Provisions ProvisionsIncome Tax&WealthTax

CurrentLiabilities ShorttermProvisions IncomeTax&WealthTax



ProvisionForDividendEquity

CurrentLiabilities&Provisions ProvisionsDividendonEquityShares

CurrentLiabilities Shortterm Provisions DividendonEquityShares

AdvanceFrom Customers Current Liabilities&Provisions CurrentLiabilities TradeDeposits&Advances

CurrentLiabilities OtherCurrentLiabilities TradeDeposit&Advances

SODEXHOVoucherinHand Current Assets Cash&BankBalances CashinHand

CurrentAssets Cash &CashEquivalents CashinHand

Imprest UK Office Current Assets Cash & Bank Current Assets Cash & CashImprestUKOffice Current Assets Cash&BankBalances CashinHand

CurrentAssets Cash &CashEquivalents CashinHand

PostageImprest Current Assets Cash&BankBalances Cash in Hand

CurrentAssets Cash &CashEquivalents Cash in HandBalances CashinHand Equivalents CashinHand

ClaimsRecoverableDEPBLicenseinHand

CurrentAssets Loans&Advances AdvancesRecoverableinCashorKind

CurrentAssets OtherCurrentAssets Other

TradedepositsandSecuritydeposits

CurrentAssets Loans&Advances Deposits

OtherNoncurrent/longtermliabilitiesCurrentLiabilities



Staff HousingLoan CurrentAssets Loans &Advances AdvancesRecoverableinCashorKind

NonCurrent Assets LongtermLoans&AdvancesEmployees

StaffAdvance AgainstSalary CurrentAssets Loans &Advances AdvancesRecoverableinCashorKind

CurrentAssets ShorttermLoans&Advances Employees

St ff Ad F ll & Fi l C t A t L & C t A t Sh t tStaff Advance Full&FinalCases

CurrentAssets Loans &Advances AdvancesRecoverableinCashorKind

CurrentAssets ShorttermLoans&Advances Employees

Deposit With GSEB Current Assets Loans & Non Current Assets DepositWithGSEB CurrentAssets Loans&Advances Deposits

NonCurrent AssetsOtherNonCurrentAssetsSecurityDeposits

Security Deposit Current Assets Loans & NonCurrent Assets SecurityDeposit CurrentAssets Loans&Advances Deposits

Non Current AssetsOtherNonCurrentAssetsSecurityDeposits

DepositWith Suppliers CurrentAssets Loans& NonCurrent Assets OtherAdvances Deposits NonCurrentAssets Security

Deposits



DepositsWithSalesTax CurrentAssets Loans&Advances DepositswithExcise&SalesTax

CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcise& Sales Tax&SalesTax

Basic ExciseDuty(PLA) CurrentAssets Loans&Advances DepositswithExcise&SalesTax

CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcisep&SalesTax

Balancein RG23 CurrentAssets Loans&Advances Depositswith

CurrentAssets ShorttermLoans&Advances

Excise&SalesTax Deposit/BalanceWithExcise&SalesTax

VATABLE Cess CurrentAssets Loans&Ad D it ith

CurrentAssets ShorttermL & AdAdvances Depositswith

Excise&SalesTaxLoans&AdvancesDeposit/BalanceWithExcise&SalesTax

State Excise (PLA) Current Assets Loans & Current Assets ShorttermState Excise(PLA) CurrentAssets Loans&Advances DepositswithExcise&SalesTax

CurrentAssets Short termLoans&AdvancesDeposit/BalanceWithExcise&SalesTax



MODVATCapitalGoods CurrentAssets Loans&Advances DepositswithExcise&SalesTax

CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcise& Sales Tax&SalesTax

ServiceTax Recoverable CurrentAssets Loans&Advances DepositswithExcise&SalesTax

CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcisep&SalesTax

SalesTaxRecoverable CurrentAssets Loans&Advances Depositswith

CurrentAssets ShorttermLoans&Advances

Excise&SalesTax Deposit/BalanceWithExcise&SalesTax

ServiceTaxCENVATCredit CurrentAssets Loans&Ad D it ith

CurrentAssets ShorttermL & AdAdvances Depositswith

Excise&SalesTaxLoans&AdvancesDeposit/BalanceWithExcise&SalesTax

VAT Recoverable Current Assets Loans & Current Assets ShorttermVATRecoverable CurrentAssets Loans&Advances DepositswithExcise&SalesTax

CurrentAssets Short termLoans&AdvancesDeposit/BalanceWithExcise&SalesTax



Advance IncomeTax CurrentAssets Loans&Advances Advance PaymentofIncomeTax&WealthTax

CurrentAssets ShorttermLoans& Advances AdvancePaymentofIncomeTax&Wealth TaxWealthTax

IncomeTaxDeductedAtSource

CurrentAssets Loans&Advances Advance Paymentof Income Tax & Wealth Tax

CurrentAssets ShorttermLoans& Advances AdvancePayment of Income Tax &ofIncomeTax&WealthTax PaymentofIncomeTax&WealthTax

MAT CreditEntitlementReceivable

CurrentAssets Loans&Advances MATCredit

CurrentAssets ShorttermLoans&Advances MAT

Entitlement CreditEntitlement

Profit SaleofInvestments Other Income NetGain/LossonCurrent

OtherIncome NetGain/LossonCurrent

Investments Investments

InterestonIncomeTaxRefundReceived

Other IncomeMiscellaneousReceipts

OtherIncome OtherNonOperatingIncome

MiscellaneousReceipts OtherIncomeMiscellaneousReceipts

OtherIncome OtherNonOperatingIncome

ChartofAccountswithOldandRevisedGroupingNarration Grouping Old Grouping Rev Sch VI

Profit Sale of Fixed Assets Other Income Profit on Sale Other Income Profit on SaleProfit Saleof FixedAssets OtherIncome ProfitonSaleofFixedAssets

OtherIncome ProfitonSaleofFixedAssets

Increase/DecreaseinFinishedStock

Increase/Decrease inFinishedStock

ChangeinInventoriesofFinished Goods Workin Stock Stock Finished GoodsWork inProgressandStockinTrade

JobWorkCharges Manufacturing&OtherExpenses ProcessingCharges

Other ManufacturingExpenses ProcessingChargesp g g p g g

InternalAuditFees Manufacturing&OtherExpenses Legal&Professional

OtherExpenses Legal&Professional

PatentRelatedExpenses Manufacturing&OtherExpenses PatentRelatedExpenses

OtherExpenses Legal&Professional

DirectorCommission Manufacturing&OtherExpenses Advertisement&Publicity

OtherExpenses DirectorCommission

S l i Gif f i & O h O hSalesPromotion Gifts Manufacturing&OtherExpenses Advertisement&Publicity

OtherExpensesAdvertisement& Publicity



ForeignCurrencySwapExchange Fluctuations

Manufacturing&OtherExpenses FinancialCharges

FinanceCost OtherBorrowingCost

ForeignExchange Manufacturing&Other FinanceCost OtherFluctuationsFCCB Expenses FinancialCharges BorrowingCost

ForeignExchangeFluctuations MarktoM k t (MTM) L


FinanceCost OtherBorrowingCost

Market(MTM)Losses

ForeignExchangeFluctuationsImports


Other Expenses ForeignExchangeFluctuation

ForeignCurrencyRateDifferenceExports


Other Expenses ForeignExchangeFluctuation

CommissionConsignmentAgent

Manufacturing&OtherExpenses Commission on

OtherExpensesCommission on SalesAgent Expenses Commissionon

SalesCommissiononSales

SalesTaxExpenses Manufacturing&OtherExpenses Claims to

OtherExpenses ClaimstoCustomer & Other SellingExpenses Claimsto

Customer &OtherSellingExpenses

Customer &OtherSellingExpenses



ExpensesofC&FAgents Manufacturing&OtherExpenses ClaimstoCustomer &OtherSellingExpenses

OtherExpenses ClaimstoCustomer &OtherSellingExpenses

Expenses

SundryDebit/Credit BalancesWrittenOff

Manufacturing&OtherExpenses MiscellaneousExpenses

OtherExpensesMiscellaneous Expenses

ListingFees Manufacturing&OtherExpenses MiscellaneousExpenses


AmountRoundedOff Manufacturing&OtherExpenses MiscellaneousExpenses


Provision IncomeTaxFortheYear

ProvisionForIncomeTaxExpenses

ProvisionForIncomeTaxExp

MATCredit EntitlementE /I

MATCreditEntitlementE /I

MATCreditEntitlementE /IExpense/Income Exp/Income Exp/Income

Meetings&ConferenceExpense

Manufacturing&OtherExpenses Advertisement&Publicity

OtherExpensesAdvertisement&Publicity

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RelatedpartyPartiesareconsideredtoberelatedifatanytimeduringthereportingperiodonepartyhastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheotherparty in making financial and/or operating decisions [AS 18]partyinmakingfinancialand/oroperatingdecisions.[AS18] Control

(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofanenterprise,or

(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthecompositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or

(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,the financial and/or operating policies of the enterprisethefinancialand/oroperatingpoliciesoftheenterprise.

SignificantinfluenceParticipationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnotcontrolofthosepolicies.

DisclosurerequirementsofInvestmentsasperAS 13

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Thefollowinginformationshouldbedisclosedinthefinancialstatements:

(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;

AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue

(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationincurrentandlongterminvestment;

(c)theamountsincludedinprofitandlossstatementfor:(i) interest dividends (showing separately dividends from subsidiary companies) and(i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and

rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrentinvestments.Grossincomeshouldbestated,theamountofincometaxdeductedatsourcebeingincludedunderAdvanceTaxesPaid;

(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamountofsuchinvestments;and

(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarryingamountofsuchinvestments;;

(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor

theremittanceofincomeandproceedsofdisposal;

(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate

marketvalueofquotedinvestments;

(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe

enterprise.

Excisedutydisclosure:

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y

AS 9requiresthattherevenueshouldbedisclosed:

Turnover(Gross) XX( )

Less:ExciseDuty XX

Turnover(Net) XX

ThisissomewhatdifferentthenasrequiredinrevisedScheduleVIasdiscussedearlier.q

GiventhefactaccountingstandardswillhaveanoverridingeffectoverrevisedScheduleVIandsoourviewisthatexcisedutyshouldbedeductedfromsalesofproducts.

Practicalguidanceonnetgain/lossofforeigncurrencytransactions:

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g g / g y

IntheviewofAS 16whichstatesthatborrowingcosts,mayincludeexchangedifferencesarisingfromforeigncurrencyborrowingstotheextentthattheyareregardedasanadjustmenttointerestcosts.Thus,gainorlossonforeigncurrencytransactionstobeshownunderfinancecostsshouldbelimitedtothisamountonly.Othergainsandlossshouldbeshownseparatelyunderappropriateheads.

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ExamplesofOperatingcycle:

Q 1) BLtdproducesaircraft.Thelengthoftimebetweenfirstpurchasingrawmaterial[RM]tomakingtheaircraftsandthedatethecompanycompletestheproduction

d d li i 9 th Th i t f th i ft 7anddeliveryis9months.Thecompanyreceivespaymentfortheaircrafts7monthsafterthedelivery.

A. Whatisthelengthofoperatingcycle?

B How should it treat its inventory and debtors?B. Howshouldittreatitsinventoryanddebtors?

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Examples:

A 1 A) operatingcycleisof16months

B) inventoryanddebtorshouldbeclassifiedascurrent

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Examples:

Q 2) RMholdingperiod:3months

WIPholdingperiod:1month

FGholdingperiod:5months

Debtorscollectionperiod:5months

Whatistheoperatingcycle?

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Examples:

A 2) Operatingcycleis14months[RM+WIP+FG(holdingperiod)+Debtorscollectionperiod]

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Examples:

Q 3) Canacompanyengagedindiversifiedoperationshavedifferentoperatingcyclesforvariousbusinesslines?

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Examples:

A 3) Yes.

ThereisnobarinrevisedScheduleVIforacompanytohavemultipleoperatingcycles

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Examples:

Q 4) Immovableinvestmentpropertyexpectedtobesoldwithin12monthsfromthereportingdate,howtoclassifythisproperty?

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Examples:

A 4) AS 13requiredthatanenterpriseholdinginvestmentshouldbeaccountedforthesameaslongterminvestments.Hence,despitethefactitisintendedtobesoldwithin12monthsfromthereportingdate,sameshallbeclassifiedasnoncurrent.

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Examples:

Q 5) XLtdgivingsecuritydepositofRs15,000forthepurposeofpreparingbalancesheetasperrevisedScheduleVI,wherethisdepositshallbeclassified?

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Examples:

A 5) Theintensionofthecompanyistoseekwhethercompanywantarefundwithin12monthsfromthereportingdatethencurrentassetelsenoncurrentasset.

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Examples:

Q 6) OldscheduleVIrequiresonlycapitalcommitmentshallbedisclosed,howeverreviseScheduleVIrequiredallcommitmentsrequirestobedisclosed.WhatisthenatureofcommitmentstobedisclosedunderrevisedScheduleVI?

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Examples:

A 6) Commitmentgenerallyimpliesfutureliabilityforcontractualexpenditure.Accordingly,allexpensesrelatedtocontractualcommitmentsapartfromcapital

dit i i f l t t t f h f t i lexpenditurearisingfromlongtermcontractsforpurchaseofrawmaterial,employeecontracts,leasecommitments,etc.Thescopeofsuchterminologyisverywideandmayincludecontractualcommitmentsforpurchaseofinventory,services, investments,sales,employeecontracts,etc.Onlynoncancellable, , , p y , ycontractsshallbedisclosed.

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Examples:

Q 7) RevisedScheduleVIrequiredCapitaladvancestobeclassifiedunderlongtermloansandadvances;doesitmeanall,includingtherecoverablewithin12monthsshallbeclassifiedunderthishead?

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Examples:

A 7) Yes

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Examples:

Q 8) RevisedScheduleVIdoesnotdefinecashandcashequivalents,doesitmeanwehavetofollowtherequirementsofthesameasperAS 3?

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Examples:

A 8) Yes.

AsAS willprevailoverscheduleVI.Thus,oneshouldchangethediscloseofcashandbankbalanceassubheadingCashandCashEquivalentsandOtherbankbalances.TheformerheadingwillincludeonlytheasdefinedinAS 3oncashand cash equivalent and the remaining balances as per later headingandcashequivalentandtheremainingbalancesasperlaterheading.

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Examples:

Q 9) Acompanyhasexcessfinishedgoodsinventorythatitdoesnotexpect torealizewithinthecompanysoperatingcycleof15months?

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Examples:

A 9) SincesuchFinishedgoodsinventoryisheldprimarilyforthepurposeofbeingtraded,thesameshouldbeclassifiedasCurrent.

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Examples:

Q 10) Acompanyhassold10,000tonnes ofsteeltoitscustomer.Thesalecontractprovidesforanormalcreditperiodfor3months.Thecompanysoperatingcycleis6months.However,thecompanydoesnotexpecttoreceivethepaymentwithin12 months from the reporting date Whether such receivable should be classified12monthsfromthereportingdate.WhethersuchreceivableshouldbeclassifiedunderCurrentorNoncurrent?

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Examples:

A 10) ThisshouldbeclassifiedasNon currentinBalancesheet.Incase,thecompanyexpects torealizetheamountupto 12monthsfromtheBalancesheetdate(thoughbeyondoperatingcycle)thesameshouldbeclassifiedascurrent.

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