1
Presentation CA.Dileep Surya Kumar
Revised Schedule VI
Catching up with global trends
2
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
Applicability
3
1. General Instructions (Applicable for both BS and Statement of P&L)
2. Part 11. Form of Balance Sheet2. General Instructions for preparation of
Balance Sheet3. Part 2
1. Form of Statement of Profit and loss2. General Instructions for preparation of
Statement of Profit and Loss
STRUCTURE OF NEW SCHEDULE -VI
4
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
General Instructions in New Schedule VI
5
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)
6
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.
7
Particulars Note No.
Figures as at the end of the 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
TOTAL
Form of Balance Sheet
8
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
TOTAL
Format – cont’d
9
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 .
General Instructions For Preparation Of Balance Sheet
10
*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
11
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.
12
* 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.
Share Application Money:
13
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.
Current and non-current liabilities
14
*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).
Long term borrowings
Non-Current Liabilities
15
* 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).
16
Other Long Term Liabilities shall be classified as:
a)Trade payables. b)Others.
Other Long Term Liabilities
Long term provisions
The amounts shall be classified as:
a)Provisions for employee benefits.b)Others (specify nature).
17
Short-Term borrowings:Current Liabilities
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
18
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
Other Current Liabilities
19
The amounts shall be classified as: a)Provisions for employee benefits b)Others(specify natures)
Short term provisions
20
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-currentOperating cycle (same as current liabilities)
Current and non current Assets
21
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.
Fixed Assets
22
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
Fixed Assets
23
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’.
Fixed Assets
24
*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
Non-current investments
25
*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.
Long-term loans and advances
26
*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 sub-head of inventories.
* Mode of valuation shall be stated.
Inventories
27
*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.
Trade Receivables
*Words ‘Sundry Debtors’ have been replaced with ‘Trade Receivables’.
28
(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.
Cash and cash equivalents
29
*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.
30
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 ConsumedPurchases of Stock in TradeChanges in inventories of finished goodsWork in progress and stock in trade
Employee Benefit expenseFinance CostsDepreciation and amortization expenseOther expenses
Profit Before Exceptional and extraordinary items and tax
Exceptional Items
Form of Statement of Profit and loss
31
Form of Statement of Profit and loss
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 shareBasicDiluted
32
*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
33
- 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
34
*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.
35
Comparison between Old & Revised Schedule VISr. 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, proposed dividend
and transfer to/ from reserves were shown
in Profit and Loss Appropriation
Account
Transfer from/ to reserves to be shown
under the heading Reserves & Surplus
only. No requirement of separate Profit and
Loss Appropriation Account.
36
Comparison… (ii)Sr. No.
Particulars Old Schedule VI Revised 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
Turnover of Rs. 100 Crs or more but less than Rs. 500 Crs -
R/off to the nearest Hundreds, thousands,
lakhs or millions or decimal thereof
Turnover of Rs. 500 Crs or more - R/off to
the nearest Hundreds, thousands,
lakhs, millions or crores, or decimal
thereof
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 - R/off
to the nearest lakhs, millions or crores, or
decimal thereof
37
Comparison… (iii)Sr. No.
Particulars Old Schedule VI Revised Schedule VI
5) Net Working Capital
Current assets & Liabilities are shown
together under application of funds.
The net working capital appears on
balance sheet.
Assets & Liabilities are to be bifurcated into current & Non-
current & to be shown separately.
Hence, net working capital will not be appearing in B/S.
6) Fixed Assets There was no bifurcation required
in to tangible & intangible assets.Capital advances used to be shown under the Head Capital Work in
Progress under Fixed Assets
Fixed assets to be shown under non-current assets and
have to be bifurcated into Tangible &
intangible assets.Capital advances to be shown under the
head ‘Long term Loans & Advances’
38
Comparison… (iv)Sr. No.
Particulars Old Schedule VI Revised Schedule VI
7) Borrowings Short term & long term borrowings
are grouped together under the head Loan funds sub-head
Secured / Unsecured
Long term borrowings to be shown under non-current liabilities and
short term borrowings to be shown under current liabilities with separate 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
8) Deposits Lease deposits are part of loans
& advances
Lease deposits to be disclosed as long term
loans & advances under the head non-current
assets
39
Comparison… (v)Sr. No.
Particulars
Old Schedule VI Revised Schedule VI
9) Investments
Both current & non-current
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 non-
current & 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 non-current assets / liabilities as the case may
be.
40
Comparison… (vi)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
(Debit Balance)
P&L debit balance to be separately disclosed in the Balance Sheet.
Debit balance of Profit and Loss Account to be shown as negative figure under
the head Surplus. Therefore, Reserve &
Surplus can have a negative balance.
41
Comparison… (vii)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 for
separate disclosure of Current
maturities of long term debt No specific mention for
separate disclosure of Current
maturities of finance lease obligation
Current maturities of long term debt to be disclosed
under other current liabilities.
Current maturities of finance lease obligation to
be disclosed.
42
Comparison… (viii)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 classificati
on
Function wise & nature wise
Expenses in Statement of Profit 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 & translation
43
Comparison… (ix)Sr. No.
Particulars
Old Schedule VI Revised Schedule VI
19) Foreign exchange gain / loss
Gain / Loss on foreign currency transaction to be
shown under finance cost
Gain / Loss on foreign currency transaction to be
separated into finance costs and other expenses
20) Purchases 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.
44
Comparison… (x)Sr. No.
Particulars
Old Schedule VI Revised Schedule VI
21) TDS amount on Interest, royalty
received
TDS amount was required to be
shown for Interest income etc.
No requirement of disclosing TDS amounts
separately
22) Managerial
Remuneration 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
expense
45
Comparison… (xi)Sr. No.
Particulars
Old Schedule VI Revised Schedule VI
24) Part III-Interpreta
tion
Terms provision, reserve, capital reserve , quoted investment etc. were defined
No such specific definitions.
25) Part IV- Balance Sheet
Abstract
Details of company registration
number, capital raised, Balance Sheet details,
products etc. were required to be attached with
financials
No such requirement.
46
THANK YOU