Download Revised Schedule VI

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Presentation
CA.Dileep Surya Kumar
1
 As per the Government Notification no. F.No.2/6/2008-
C.L-V dated 30-3-2011, the Revised Schedule VI is
applicable for the financial Statements to be prepared for
the financial year commencing on or after April 1, 2011.
 Applicable to consolidated financial statements.
 Revised Schedule VI would apply to all Indian companies
till they are required to follow IFRS-converged Indian
Accounting Standards (Ind ASs).
 Companies engaged in the generation and supply of
electricity, the revised Schedule VI may be followed by such
companies till the time a format is prescribed under the
relevant statute
2
1.
2.
General Instructions (Applicable for both BS and
Statement of P&L)
Part 1
1.
2.
3.
Form of Balance Sheet
General Instructions for preparation of Balance Sheet
Part 2
1.
2.
Form of Statement of Profit and loss
General Instructions for preparation of Statement of
Profit and Loss
3
 Compliance with the Act and/or Accounting
Standards:
–Requirements of the Act and/or Standards will override
the related requirement of Schedule VI.
 Disclosures as required by Accounting Standards:
–Additional disclosures specified in the Accounting
Standards shall be made in the notes to accounts or by way
of additional statement unless required to be disclosed on
the face of the Financial Statements
 Other Disclosures:
–All other disclosures as required by the Companies Act
shall be made in the notes to accounts in addition to the
requirements set out in the Revised Schedule VI
4
 Notes to accounts shall contain information in addition to
that presented in the FS and shall provide where required:
a)Narrative descriptions, and
b)Information about items that do not qualify for
recognition
in those statement.
 Each item on the face of the Balance Sheet and Statement
of Profit and Loss is to be cross referenced to related
information the notes to accounts.
 Corresponding amounts for the immediately preceding
reporting period(Except in the case of the first FS laid
before company)
5

Rounding off based on Turnover:
1)Less than 100 cr - Figures to be in nearest Hundreds
,thousand,lakhs or millions or decimals thereof.
2) 100 cr or more
- Figures to be in nearest lakhs
,millions or crores, or decimals thereof.
6
Particulars
Note Figures as at
the end of the
No.
current
reporting
period
Figures as at the
end of the
previous
reporting period
I. EQUITY AND LIABILITIES
(1)
Shareholders’ Funds
(a) share capital
(b) Reserve and Surplus
(c) Money received against share
warrants
(2) Share application money pending
allotment
(3) Non-current liabilities
(a) Long term borrowings
(b) Deferred tax liabilities (net)
(c) Other long term liabilities
(d) Long term provisions
(4) Current Liabilities
(a) Short term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short term provisions
7
Format – cont’d
Particulars
Note
No.
Figures as at the
end of the
current
reporting
period
Figures as at the
end of the
previous reporting
period
II. ASSETS
(1)
Non-current assets
(a) fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under development
(b) Non- current investments
(c) Deferred tax assets (Net)
(d) Long term loans and advances
(e) Other non-current assets
(2) Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short term loans and advances
(f) Other current assets
8
Share Capital:
For each class of Share Capital
*The number and amount of share authorized.
*the number of share-issued ,
-subscribed ,
-fully paid ,and
-subscribed but not fully paid.
*Par value per share.
* A reconciliation from the beginning of the year till
end of the year .
9
*Shares in the company held by each shareholder holding more
than 5 percent shares specifying the number of shares held.
* Shares in respect of each class in the company held by
a) its holding company
b) its ultimate holding company including shares held by or
by subsidiaries
c) associates of the holding company or the ultimate holding
company in aggregate;
*Shares issued for consideration other than cash, Bonus shares,
shares bought back (for 5Yrs).
*Shares reserved for issues under options, disinvestments their
terms and conditions.
*Terms and earliest date of conversion of securities convertible
in equity or preference shares
10
Reserves and Surplus:
*Surplus i.e. balance in Statement of Profit & Loss
disclosing allocations and appropriations such as dividend,
bonus shares and transfer to/from reserves etc. (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’.
*Debit balance of statement of profit and loss shall be
shown as a negative figure under the head ‘Surplus’.
*Share Options Outstanding Account,include in reserves
and surpuls heading.
11
* Unlike its predecessor, the revised Schedule contains
specific requirements in this regard .
* share application money pending allotment, is
required to be divided into two parts :
- the part against which shares will be allotted is in
the nature of equity.
- the part which is due for refund is in the nature of
liability
* Equity part shown under Share application maney
pending allotment.
* Refundable part shown under other current liabilities.
12
 Criteria to be met to classify as current liability ,any of
following:---



Expected to be settled in the co’s normal operating cycle,
Held primarily for the purpose of being traded,
Due to be settled within twelve months after the reporting date,or
There is no unconditional right to defer settlement for at least 12
months after the reporting date.
* All other liability shall be classified as non-current .
* Operating cycle – time between the acquisition of assets
for processing and their realisation in cash or cash
equivalents. If can not be identified- duration of 12
months.
13
Non-Current Liabilities
*It shall be classifed as:
a)Bonds/debentures .
b)Term loans
-from banks .
-from other parties.
c)Deferred payment liabilites.
d)Deposites.
e)loans and advances from related parties .
f)Long term maturities of finance lease obligations.
g)Other loans and advances(specify nature).
14
* Sub- classification as as secured and unsecured, nature of
security, guaranteed by directors or others
* 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 separtely in each case.
* Convertible/Reedemable bonds/debentures (descending
order).
15
Other Long Term Liabilities shall be classified as:
a)Trade payables.
b)Others.
Long term provisions
The amounts shall be classified as:
a)Provisions for employee benefits.
b)Others (specify nature).
16
 Short-Term borrowings:
a)Loans repayable on demand
-from banks.
-From other parties .
b) Loans and advances from related parties.
c) Deposits.
d) Oher loans and advances (specify nature)
* Sub- classification as as secured and unsecured, nature of
security, guaranteed by directors or others.
* Period and amount of continuing default as on the
balance sheet date in repayment of loans and interest,shall
be specified separtely in each case
17
The amount shall be classified as:
a) Current maturities of LT 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 dividend
g)Application money pending allotment, T & C,
Proposed no. of shares, amount of premium, whether
sufficient authorised capital, period for which
allotment pending. (Equity or Other current
liabilities)
h)Unpaid matured deposits and debentures
18
The amounts shall be classified as:
a)Provisions for employee benefits
b)Others(specify natures)
19
 An item is classified as current:

Expected to be realise in or intended for sale or consumption
in normal operating cycle of the co, or

is expected to be realized/ settled within twelve months from
reporting date,or

If it is held primary for trading or

Is cash or cash equivalent .
All other assets shall be classified as non-current
 Operating cycle
(same as current liabilities)

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Tangible Assets:
*Tangible fixed assets are required to be further classified
into the following categories in the notes:
a. Land
b. Buildings
c. Plant and equipment
d. Furniture and fixtures
e. Vehicles
f. Office equipment
g. Others (specifying nature)
* Asset under lease – shall be separately specified.
* Reconciliation of the gross and net carrying amounts at
beginning and end of reporting period.
* Written off or add on account of revaluation of assets shall
show reduced figure and shall give by way of note ( for 5
yrs) the details of such revaluation.
21
Intangible Assets:
* Recognising the importance of intangible fixed assets, this
new category has been added, with sub-classification in the
notes as below :
a. Goodwill
b. Brands /trademarks
c. Computer software
d. Mastheads and publishing titles
e. Mining rights
f. Copyrights, and patents and other intellectual property rights,
g. services and operating rights
h. Recipes, formulae, models, designs and prototypes
i. Licenses and franchise
g.Others (specifying nature).
*
Disclosure requirment same as tangible assets
22
Capital work-in-progress :
* The (aggregate) amount of capital work-in-progress (relating to
tangible fixed assets) is required to be disclosed as a separate item
under ‘fixed assets’ .
• capital advances are required to be disclosed under long-term loans
and advances .
Intangible assets under development :
* The (aggregate) amount of intangible assets under development
(which would be recognised and measured in accordance with AS 26,
Intangible Assets) has to be disclosed separately as a separate item on
the face of the balance sheet under ‘fixed assets’.
23
*Non–current investment shall be classified as
trade
investments and other investment and further classified as:
-property
-equity instruments
-preference shares
-Govt and trust securities
-Debentures and bonds
-Mutual funds
-Partnership firms
-Others.
*Investments carried at other than at 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
*Name, nature and extent of investment in body corporate.
*Name, names of the partners, total capital and sharing ratio
24
*Long-term loans and advances shall be classified as:
(a) Capital Advances;
(b) Security Deposits;
(c) Loans and advances to related parties (giving details thereof).
Reference should be made to AS 18 for identifying the related
parties.
(d) Other loans and advances (specify nature).
*The above shall also be separately sub-classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.
*Allowance for bad and doubtful loans and advances shall be
disclosed under the relevant heads separately.
*Due by directors and other officers, firms and companies in
which directors are interested to be separately stated.
25
*Inventories shall be classified as:
(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 subhead of inventories.
* Mode of valuation shall be stated.
26
*Words ‘Sundry Debtors’ have been replaced with ‘Trade
Receivables’.
*Aggregate amount of Trade Receivables outstanding for a
period exceeding six months from the date they are due for
payment should be separately stated.
* Trade receivables shall be sub-classified as:
(a)Secured, considered good;
(b)Unsecured considered good;
(c)Doubtful.
* Allowance for bad and doubtful debts shall be disclosed
under the relevant heads separately.
*Debts due by :
-Directors,:or
-officers :or
-firms or pvt. Companies respectively in which any director is a
partener or a director or a member should be seprately stated.
27
(i) Cash and cash equivalents shall be classified as:
(a) Balances with banks;
(b) Cheques, drafts on hand;
(c) Cash on hand;
(d) Others (specify nature).
(ii) Earmarked balances with banks (for example, for unpaid dividend)
shall be separately stated.
(iii) Balances with banks to the extent held as margin money or security
against the borrowings, guarantees, other commitments shall be
disclosed separately.
(iv) Bank deposits with more than 12 months maturity shall be
disclosed separately.
28
*Short term loans and advances :
These need to be sub-classified in the notes as: -Loans and advances to related parties (giving
details thereof)
-Others (specifying nature).
*Other current assets:
-Other current assets is the residuary heading,
which covers current assets that do not fall into
any of the other ‘current asset’ categories.
29
Particulars
Note
No.
Figures at the
end of current
reporting
period
Figures at the
end of previous
reporting
period
Revenue from Operations
Other Income
Total Revenue ( I + II)
Expenses
Cost of Material Consumed
Purchases of Stock in Trade
Changes in inventories of finished goods
Work in progress and stock in trade
Employee Benefit expense
Finance Costs
Depreciation and amortization expense
Other expenses
Profit Before Exceptional and extraordinary
items and tax
Exceptional Items
30
Particulars
Note
No.
Figures at the
end of current
reporting
period
Figures at the
end of previous
reporting
period
Profit Before extraordinary items and tax
Extraordinary Items
Profit Before Tax
Tax Expense
Current Tax
Deferred Tax
Profit (loss) for the period from continuing
operations
Profit (loss) from discontinuing operations
Tax expense of discontinuing operations
Profit(loss) from discontinuing operations
(after tax)
Profit (loss) for the period
Earnings per equity share
Basic
31
*Profit and Loss:
–Now known as ‘Profit and Loss Statement f or the year
ended ________’
–Format specified in new Schedule.
–Exceptional and extraordinary items need to be disclosed
separately on the face of the Statement of Profit and Loss.
The details of the same as also of any prior period items
should be disclosed in the notes.
-Profit / loss before and after tax from discontinuing
operations and the tax expense from discontinuing
operations need to be disclosed separately on the face of
the Statement of Profit and Los
32
- The items to be disclosed under Revenue from
Operations have been specifically indicated for both
finance companies and others.
-Payments to 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
33
*Any item of income or expenditure which exceeds one
percent of the revenue from operations or Rs. 1,00,000
whichever is higher should be disclosed separately.
* Broad heads shall be decided taking into account the
concept of materiality and presentation of true and fair
view of financial statements.
34
Sr.
No.
Particulars
Old Schedule VI
Revised Schedule VI
1)
Form of Balance
Sheet
Both horizontal and
vertical form were
allowed
Only vertical form of
Balance Sheet has been
specified in the revised
Schedule VI
2)
Form of Profit
and Loss
Account
No format specified for
Profit and Loss Account
Form of Profit and Loss
Account specified under
Part II
3)
Profit and Loss
Appropriation
Account
Opening surplus,
Transfer from/ to reserves
proposed dividend and
to be shown under the
transfer to/ from reserves
heading Reserves &
were shown in Profit and
Surplus only. No
Loss Appropriation
requirement of separate
Account
Profit and Loss
Appropriation Account.
35
Sr.
No.
Particulars
Old Schedule VI
4)
Rounding off of
Figures
appearing in
financial
statement
Turnover of less than Rs.
100 Crs - R/off to the
nearest Hundreds,
thousands or decimal
thereof
Revised Schedule VI
Turnover of less than Rs.
100 Crs - R/off to the
nearest Hundreds,
thousands, lakhs or
millions or decimal
thereof
Turnover of Rs. 100 Crs or
more but less than Rs.
Turnover of Rs. 100 Crs
500 Crs - R/off to the
or more - R/off to the
nearest Hundreds,
nearest lakhs, millions
thousands, lakhs or
or crores, or decimal
millions or decimal
thereof
thereof
Turnover of Rs. 500 Crs or
more - R/off to the
nearest Hundreds,
thousands, lakhs, millions
or crores, or decimal
36
Sr.
No.
Particulars
Old Schedule VI
Revised Schedule VI
5)
Net Working
Capital
Current assets &
Assets & Liabilities are to
Liabilities are shown
be bifurcated into
together under
current & Non-current &
application of funds. The to be shown separately.
net working capital
Hence, net working
appears on balance
capital will not be
sheet.
appearing in B/S.
6)
Fixed Assets
There was no bifurcation Fixed assets to be shown
required in to tangible & under non-current assets
intangible assets.
and have to be bifurcated
Capital advances used to
into Tangible &
be shown under the
intangible assets.
Head Capital Work in
Capital advances to be
Progress under Fixed
shown under the head
Assets
‘Long term Loans &
37
Advances’
Sr.
No.
Particulars
7)
Borrowings
8)
Deposits
Old Schedule VI
Revised Schedule VI
Short term & long
Long term borrowings to be
term borrowings are
shown under non-current
grouped together
liabilities and short term
under the head Loan borrowings to be shown under
funds sub-head
current liabilities with separate
Secured / Unsecured
disclosure of secured /
unsecured loans.
Period and amount of
continuing default as on the
balance sheet date in
repayment of loans and
interest to be separately
specified
Lease deposits are
part of loans &
advances
Lease deposits to be disclosed
as long term loans & advances
under the head non-current 38
assets
Sr. Particulars
No.
Old Schedule VI
Revised Schedule VI
9)
Investments
Both current & noncurrent investments to
be disclosed under the
head investments
Current and non-current
investments are to be disclosed
separately under current assets
& non-current assets
respectively.
10)
Loans &
Advances
Loans & Advance are
disclosed along with
current assets
Loans & Advance to
subsidiaries & others
to be disclosed
separately.
Loans & Advances to be broken
up in long term & short term
and to be disclosed under noncurrent & current assets
respectively.
Loans & Advance from related
parties & others to be disclosed
separately.
11)
Deferred Tax
Assets /
Liabilities
Deferred Tax assets /
liabilities to be
disclosed separately
Deferred Tax assets / liabilities
to be disclosed under noncurrent assets / liabilities as the39
case may be.
Sr.
No.
Particulars
Old Schedule VI
Revised Schedule VI
12)
Cash & Bank
Balances
Bank balance to be
bifurcated in
scheduled banks &
others
No such bifurcation required.
Bank balances in relation to
earmarked balances, held as
margin money against
borrowings, deposits with more
than 12 months maturity, each
of these to be shown separately.
13)
Profit & Loss P&L debit balance to Debit balance of Profit and Loss
(Debit
be separately disclosed Account to be shown as negative
Balance)
in the Balance Sheet.
figure under the head Surplus.
Therefore, Reserve & Surplus
can have a negative balance.
40
Sr.
No.
Particulars
Old Schedule VI
Revised Schedule VI
14)
Sundry
Debtors
Debtors outstanding
for more than six
months from invoice
date to be shown
separately
Debtors outstanding for more
than six months from the date
they became due to be shown
separately
15)
Other
current
liabilities
No specific mention
Current maturities of long term
for separate disclosure debt to be disclosed under other
of Current maturities
current liabilities.
of long term debt
Current maturities of finance
No specific mention
lease obligation to be disclosed.
for separate disclosure
of Current maturities
of finance lease
obligation
41
Sr.
No.
Particulars
Old Schedule VI
Revised Schedule VI
16)
Separate line
item
Disclosure
criteria
any item under which
expense exceeds one
per cent of the total
revenue of the
company or Rs. 5,000
which ever is higher;
shall be disclosed
separately
any item of income / expense
which exceeds one per cent of
the revenue from operations or
Rs. 1,00,000, which ever is
higher; to be disclosed
separately
17)
Expense
Function wise & nature Expenses in Statement of Profit
classification
wise
and Loss to be classified based
on nature of expenses
18)
Finance Cost
Finance cost to be
classified in fixed
loans & other loans
Finance cost shall be classified
as interest expense, other
borrowing costs & Gain / Loss
on foreign currency transaction
42
& translation
Sr.
No.
Particulars
19)
Foreign
exchange
gain / loss
20)
Purchases
Old Schedule VI
Revised Schedule VI
Gain / Loss on foreign Gain / Loss on foreign currency
currency transaction to transaction to be separated into
be shown under
finance costs and other
finance cost
expenses
The purchase made
and the opening &
closing stock, giving
break up in respect of
each class of goods
traded in by the
company and
indicating the
quantities thereof.
Goods traded in by the company
to be disclosed in broad heads
in notes. Disclosure of
quantitative details of goods is
diluted.
Goods-in-transit to be
separately disclosed.
43
Sr.
No.
Particulars
Old Schedule VI
Revised Schedule VI
21)
TDS amount
TDS amount was
on Interest,
required to be shown
royalty
for Interest income etc.
received
22)
Managerial
Remuneratio
n and
Commission
Payment to directors
and detailed
calculation under
section 198 was
required to be
disclosed
No disclosure requirements for
Managerial Remuneration
23)
ESOP
expenses
No requirement to
show separately as part
of Employee Benefits
expense
Expense on Employee Stock
Option Scheme (ESOP) and
Employee Stock Purchase Plan
(ESPP) to be shown separately
as part of Employee Benefits
44
expense
No requirement of disclosing
TDS amounts separately
Sr. Particulars
No.
24)
25)
Old Schedule VI
Part IIITerms provision,
Interpretatio reserve, capital reserve
n
, quoted investment
etc. were defined
Part IVBalance
Sheet
Abstract
Details of company
registration number,
capital raised, Balance
Sheet details, products
etc. were required to
be attached with
financials
Revised Schedule VI
No such specific definitions.
No such requirement.
45
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