REVISED SCHEDULE VI

COMPANIES ACT, 1956

INTRODUCTION

Ministry of Company affairs (MCA) vide its notification dt. 28th Feb 2011 replaced the existing schedule VI by the Revised Schedule VI.

Revised schedule will apply to all the companies uniformly for the financial statements to be prepared for the financial year commencing on or after 01-04-2011

Comparatives for the immediately preceding reporting period for all items shown in the Financial Statements including notes shall also have to be given as per new format. Thus for the financial statements prepared for the year 2011-12 (1st April 2011 to 31st March 2012), comparative amounts need to be given for the financial year 2010-11.

Revised Schedule VI however, do not apply to any insurance or banking company, or any company engaged in the generation or supply of electricity

Revised Schedule VI has been developed in the framework of existing non-converged Indian Accounting Standards and has no connection with the converged Indian Accounting Standards.

MAIN PRINCIPLES OF REVISED SCHEDULE VI

The requirements of the Companies Act, 1956 and the Accounting Standards will prevail over the Revised Schedule VI.

Revised Schedule VI clarifies that the requirements mentioned therein for disclosure on the face of the financial statements or in the notes are minimum requirements

Revised Schedule VI has eliminated the concept of ‘schedule’ and such information is now to be furnished in the notes to accounts.

All items of assets and liabilities are to be bifurcated between current and non-current.

Rounding off requirements has been changed

I. SOURCES OF FUNDS (1) Shareholders’ Funds  

(a) Capital   (b) Reserves & Surplus

  (2) Loan Funds   (a) Secured Loans   (b)Unsecured Loans  (3) Deferred Tax Liabilities(Net)  (4) Current Liabilities &

Provisions (Reclassified) (a) Liabilities

  (b) Provisions  

Total

I. EQUITY & LIABILITIES (1) Shareholders’ Funds

  (a) Share Capital   (b) Reserves & Surplus

  (c) Money recd against share warrants 

(2) Share application moneypending 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

Revised Schedule

VI

Old Schedule

VI

II. APPLICATION OF FUNDS   (1) Fixed Assets   (a) Gross Block   (b) Less: depreciation   (c) Net Block   (d) Capital Work-in-

Progress       (2) Investments (Long term

and Current)     (3) Deferred Tax Assets (Net)     (4) Current Assets, Loans and

advances   (a) Inventories   (b) Sundry debtors   (c) Cash and Bank balances   (d) Loans & Advances   (e) Other current Assets (5) (a) Miscellaneous

Expenditure (b) Profit and Loss Account

Total

II. ASSETS   (1) (a) Fixed Assets   (i) Tangible Assets   (ii) Intangible Assets   (iii) Capital Work-in-

Progress   (iv) Intangible Assets

under develop (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

Revised Schedule VI Old Schedule VI

FEW MAJOR CHANGES IN BALANCE SHEET

Only the vertical format for presentation of financial statements

Shareholder holding more than 5 percent shares need to be disclosed

Aggregate number and class of shares allotted for consideration other than cash need to be disclosed only for a period of five years

Debit balance of profit& loss account will be disclosed under the head “Reserves and surplus.

Sundry debtors” has been replaced with the term “trade receivables. Amount due on account of other contractual obligations can no longer be included in the trade receivables

Disclosure of all defaults in repayment of loans and interest to be specified in each case. Earlier, no such disclosure was required .

Tangible assets under lease are required to be separately specified

FEW MAJOR CHANGES IN PROFIT & LOSS A/C

Name has been changed to “Statement of Profit and Loss” as against ‘Profit and Loss Account’

Appropriation line items not to be presented on the face of Statement of Profit and Loss

One percent of the revenue from operations or ` 100,000 needs to be disclosed separately

Dividends from Subsidiary should be recognized as income only when the right to receive dividends is established as on the Balance Sheet date.

Revenue from operations need to be disclosed separately as revenue from (a) sale of products, (b) sale of services and (c) other operating revenues

DISCLOSURE REQUIREMENTS

Revised Schedule VI introduces a number of other additional disclosures. Ex: Terms of repayment of long-term loans need to be

disclosed. Stock-in-trade held for trading purposes, separately

from other finished goods Aggregate provision for diminution in value of

investments separately for current and long-term Rights, preferences and restrictions attaching to

each class of shares, including restrictions on the distribution of dividends and the repayment of capital investments

Revised Schedule VI has removed a number of disclosure requirements. Ex: Information relating to licensed capacity, installed

capacity and actual production Information on investments purchased and sold

during the year Disclosures relating to managerial remuneration

and computation of net profits for calculation of commission

Investments, sundry debtors and loans & advances pertaining to companies under the same management

ABOUT DNS ADVISORS

DNS Advisors is a specialized corporate advisory firm promoted by young and dynamic professionals having rich experience in the field of corporate, financial and management consultancy.

Our team consists of experts of the corporate reporting domain and have been exposed with auditing and corporate reporting for MNCs and large companies. we are committed to provide highest standards of professionalism by timely delivery of highest quality of services to our clients.

OUR OFFERING

We offer our services to prepare company’s financial statement as per the requirements of the revised schedule VI, which will include followings:A. Understanding the existing accounting system.B. Diagnostic study of the differences with existing

systemC. Discussion of differences with the Corporate

Reporting division of companyD. Preparation of financial statements as per the revised

Schedule VI E. Interface with ERP team for making desired changes

in the accounting & reporting system of organization– explaining & supporting them to get the desired output.

OTHER SERVICE LINES

Beside “Corporate Reporting ” and other traditional professional

services, we at DNS Advisors specializes in following domains:

XBRL Conversion Business Valuation Project Funding International Taxation FEMA Compliances

CONTACT US

DNS Advisors W 123, Greater Kailash Part IINew Delhi – 110048Tel: 011 40535910

Contact Persons :

Naveen Goyal Deepak GuptaM +91 99110 95297 M +91

9811300590E naveen@dnsadvisors.com E

deepak@dnsadvisors.com