ANALYSIS OF REVISED SCHEDULE VI

TOTHE COMPANIES ACT ,1956

• MCA REVISED SCHEDULE VI OF COMPANIES ACT,1956 BY NOTIFICATION NO S.O.447(E),DATED 28.02.2011

• APPLICABLE TO ALL COMPANIES (EXCEPT BANKING,INSURANCE & ELECTRICITY COMPANIES) FROM 1ST APRIL 2011 ONWARDS

• IT INTRODUCED NEW TERMS , MANDATED ADDITIONAL DISCLOSURES & CHANGED CERTAIN GROUPINGS

Features

• Closer to global look

• Flexibility

• Removal of reduntant disclosure requirements

• Prescribes minimum requirements-additional line/subline items can be added

-overriding effect of accounting standards,MSMED Act etc

Scope

• Covered -Presentation Requirements -Disclosures• Not Covered1. Recognition principles2. MeasurementWhich are the domain of Accounting

standards

Applicability

• Annual year ending 31 March, 2012

• Corresponding figures ( Previous year figures) are to be restated

Rounding etc

1. Optional

• Turnove<100 Cr- R/off to nearest hundreds,thousands,lakhs or millions or decimals

• Turnove>100 Cr- R/off to nearest lakhs or millions or decimals

Name of the CompanyBALANCE SHEET AS AT

Rs in……..

Particulars Note No Figures as at end of the current year reporting period

Figures as at end of the current year reporting period

EQUITY AND LIABILITIES

1.SHAREHOLDERS FUNDS

(a) SHARE CAPITAL

(b) RESERVES AND SURPLUS

(c) MONEY REC. AGST. SHARE WARRANTS

2.SHARE APPLICATION MONEY PENDING

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

Particulars Note No Figures as at en of the current year reporting period

Figures as at end of the current year reporting period

ASSETS

NON-CURRENT ASSETS

(a)FIXED ASSETS

(i)TANGIBLE ASSTS

(ii) INTANGIBLE ASSETS

( iii) CAPITAL WORK-IN-PROGRESS

( v) INTANGIBLE ASSETS UNDER DEVELOPMENT

(b) NON-CURRENT INVESTMENTS

(c) DEFERRED TAX ASSETS (NET)

(d) LONG-TERM LOANS AND ADVANCES

(e) OTHER NON-CURREN T ASSETS

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

Profit and Loss Statement for the year ended Rs in…..

Particulars Note No Figures as at en of the current year reporting period

Figures as at end of the current year reporting period

I. Revenue from operations

II. Other income

III. Total revenue (I+II)

VI Expensesa. Cost of materials consumed

b. Purchase of stock in Trade

c. Changes in inventories of finished ,work in progress,

and stock in trade

d. Employee benefit Expenses

e. Financial Costs

f. Depreciation and amortization expenses

g. Other expenses

Total Expenses

V. Profit before exceptional and extra ordinary items and tax

(III-IV)

Particulars Note No Figures as at en of the current year reporting period

Figures as at end of the current year reporting period

VI. Exceptional Items

VII. Profit before extra ordinary items and tax( V-VI)

VIII. Extraordinary Items

IX .Profit before tax (VII-VIII)

X. Tax Expense

(1) Current Tax

( 2) Deferred Tax

XI. Profit /( Loss) for the period from continuing

operations (VII-VIII)

XII. Profit /( Loss) for the period from Discontinuing operations

XIII. Tax Expense of Discontinuing Operations

XIV. Profit /( Loss) for the period from Discontinuing operations (after tax) (XII-XIII)

XV. Profit /( Loss) for the period (XI+XIV)

XVI. Earnings per equity share:

(a) Basic

(b) Diluted

Definitions

• Asset- A resource controlled by an entity as a result of past events from which future economic benefits are expected to flow to the entity

• Liability- A preset obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity

Equity-The Residual interest in the assets of the entity after deducting all its liabilities

Provision-A present obligation which satisfies the rest of the definitions of the liabilities, even if the amount of the obligation has to be estimated

Current Assets

• Current Asset- satisfies any of the following criteria:

a) Expected to be realized in, or it is intended for sale or consumption in the normal operating cycle

b) Held primarily for the purpose of being traded

c) Expected to be realized within 12 months after the reporting date

d) Cash or Cash equivalent not subject to any restrictions for atleast 12 months

Operating Circle

• Time between the acquisition of asset for processing and their realization in cash or cash equivalents

• Where normal operating cycle can not be identified- 12 months

Current Liabilities

Any of the following conditions:A) Expected to be settled in the normal

operating cycleB) Held primarily for the purpose of being

traded C) Due to be settled within 12 monthsD) Company does not have an

unconditional right to defer settlement for at least 12 moths

Shareholders Fund Share Capital 1. Each class of share capital to be shown, Different classes to be treated

differently

2. Following details to be given: Number and Amount of Authorized share capital Issued Share capital Subscribed and fully paid share capital Subscribed share capital but not fully paid Par Value per share shown

3. Rights, preferences and restrictions attaching to each class of shares shown including restrictions on Dividends distribution and repayment of capital

4 .A reconciliation of No. shares outstanding at the beginning and at the end of reporting period

Equity and Liabilities

4.Shares (in aggregate) of each class held by: Holding company Ultimate holding Subsidiaries Associates of the Holding Company Associates of Ultimate Holding Company

5. Shareholders having holding more than 5% shares ,specifying the Name & No. of shares

6.Terms and Amounts of: Shares reserved for issue under option of control Commitments for the sale of shares/Disinvestments

7.For the preceding 5 years: Aggregate number and class of shares allotted as fully paid up pursuant to

contract(s) without payment being received in cash Aggregate number and class of shares allotted as fully paid Bonus shares Aggregate number and class of shares bought back

8.Terms of any securities convertible in to equity/ preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date

9.Calls unpaid shown as: By directors By officers

10.Forfeited Shares (Amount originally paid up).

RESERVES & SURPLUS Classification of Reserves and surplus in to:• Capital reserves• Capital Redemption Reserves• Securities premium reserves• Debenture Redemption Reserve• Revaluation Reserve• Share Option Outstanding Account• Other reserves• Surplus, showing allocations and appropriations such as dividend, bonus shares and

transfer to / from reserves

• Surplus- balance in P & L a/c showing allocations and appropriations• Negative Balance of Profit and Loss Account, if any, to be shown under the

"Surplus" head as a negative figure

• The word `fund' in connection with reserve is to be used only where such Reserve is specifically represented by earmarked investments.

•  Additions and Deductions since last Balance Sheet date to be shown under each of the specified heads

Money Received against Share Warrants

Amount received against issue of share warrants is to be brought in

to the face of Balance sheet

Share Application money pending Allotment

• Terms and Conditions• Number of shares proposed to be issued, premium if any• Period before which shares shall be allotted

• To be disclosed that the company has sufficient authorized capital to include share capital amount.

• The period for which the share application money has been pending beyond the period for allotment shall be disclosed.

• Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the Head EQITY

• Refundable share application money/ Requirements for minimum subscription not met shall be shown under ‘Other Current liabilities”

NON-CURRENT LIABILITIES

Long-term Borrowings• Bonds / Debentures

• Term Loans:• a) From Banks

• b) From Other Parties

• Deferred Payment liabilities

• Deposits

• Loans and advances from related parties

• Long Term maturities of finance lease obligations

• Other Loans and advances, specifying nature

• Long term Borrowings to be sub-classified as:

-Secured (nature of the security to be specified)

-Unsecured

• Aggregate of loans guaranteed by :

-Directors

-Others

• Rate of interest and terms of redemption / conversion of bonds / debentures to be stated in descending order of maturity of redemption / conversion, Where Bonds / Debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due.

• Particulars of the redeemed bonds which can be reissued to be shown

 

• Period and amount of continuing default in the repayment of loans and interest shown separately in each case

Deferred Tax Liabilities (Net)

Other Long-term Liabilities• Classification of other long term liabilities as :-

-Trade payables

-Others

“Current maturities of all long term borrowings to be disclosed under other current liabilities”

• Long-Term Provisions• Classification of Provisions as:

-Provision for employee benefits

-Others (Specifying nature) Eg: provision for warranties

 

 

Current Liabilities-Classification

• Short Term Borrowings

• Trade Payables

• Other Current liabilities

• Short Term Provisions

CURRENT LIABILITIES

Short Term Borrowings

Repayable on demandLoans and AdvancesFrom related parties

Deposits

From Banks From other Parties

Other Loans and deposits(specify nature)

• Further Short Term borrowings into:

-Secured (nature of the security to be specified)

-Unsecured

•   Aggregate of loans guaranteed by the following should be disclosed:\\

-Directors

-Others

• Period and amount of continuing default in the Repayment of Loans and Interest shown separately in each case

 

Trade Payables

Other Current Liabilities• Classification of other current liabilities into:

-Current maturities of Long term debt

-Current maturities of finance lease obligations

-Interest accrued but not due on borrowings

-Interest accrued and due on borrowings

-Income received in advance

-Application money received for allotment of securities and due for refund and interest accrued thereon.

-Unpaid matured deposits and interests accrued thereon

-Unpaid matured debentures and interest accrued thereon

-Other payables, specifying nature Eg: TDS , VAT

Short- term Provisions• Classification of short term provisions into:

-Provision for employee benefits

-Others, specifying nature Eg: Provision for Dividend, Tax

•  

II.ASSETS

Assets

Non- Current Assets Current Assets

Non Current Assets

Fixed AssetsLong Term Loans

And advances

Tangible Assets Intangible Assets Capital W I PIntangible assets

Under development

Other Non- CurrentAssets

Deferred Tax AssetsNon- Current Investments

Tangible Assets

• Classification of Tangible Assets into:• Land• Buildings• Plant and Equipment• Furniture and fixtures• Vehicles• Office Equipments• Others (specifying nature)

Asset under lease shall be shown separately under each class of asset

Reconciliation of gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing:

• Additions• Disposals• Acquisitions through business combinations• Other Adjustments• Amortization• Depreciation/Impairment losses/reversals

Where a capital reduction scheme or a revaluation of assets has taken place, every balance sheet subsequent to the reduction or revaluation shall show the reduced/increased figures, the date of the reduction/increase and the amount of reduction / increase for the first 5 years subsequent to the reduction / revaluation.

Intangible Assets

Classification of Intangible Assets into:• Goodwill• Brands/trademarks• Computer software• Mastheads and publishing titles• Mining rights• Copyrights and patents and other Intellectual property rights, services and operating

rights• Recipes, formulae, models, designs and prototypes• Licenses and franchises• Others (specifying nature)

Non-Current Investments

Sub classified in to:Investments in Property-Investments in Equity instruments-Investments in Preference shares-Investments in Government or trust securities-Investments in Debentures or Bonds-Investments in Mutual funds-Investments in Partnership firms-Others (specifying nature)

Non-current Investments

Trade investments Other Investments

Long Term Loans and Advances

• Allowance for bad and doubtful loans and advances disclosed under relevant heads.• Loans and Advances due from: -Directors or other officers of the company -Amounts due by firms in which any director is a partner -Amounts due by private companies in which any director is a director or member

Loans and advances

Capital Advances Security deposits Loans and advances to related parties (giving details

-

Other loans andadvances (

• Other Non-Current Assets:

• Long term trade receivables • Others -specifying nature

Long term trade receivables

Secured, considered good Unsecured, considered good Doubtful

CURRENT ASSETS

• Current Investments • Classification of Current Investments into: Investments in Equity instruments

Investments in Preference shares

Investments in Government or trust securities

Investments in Debentures or Bonds

Investments in Mutual funds

Investments in Partnership firms

Others (specifying nature)

• In case of investments in bodies corporate the following additional disclosures shall be made under each classification:

• Names of the body corporate (indicating whether they are associates, joint ventures, subsidiaries or controlled special purpose entities)

• Nature and extent of the investments

• Partly paid investments to be separately shown

• The basis of valuation of individual investments

Inventories

• Classification of Inventories into:

Raw materials

Work in progress

Finished goods

Stock in trade (in respect of goods acquired for trading )

Stores and spares

Loose tools

Others (specifying nature)

• Goods-in-transit to be disclosed under relevant sub-head.

• Mode of Valuation to be stated

Trade Receivables

Aggregate amount of outstanding trade receivable exceeding 6 months shown separately

Allowance for bad and doubtful debts disclosed under relevant heads Debts due from: • Directors or other officers of the company• Amounts due by firms in which any director is a partner• Amounts due by private companies in which any director is a director• or member

Trade receivables

Secured, considered goodUnsecured, considered good

Doubtful

Cash and Cash Equivalents

• The following shall be shown separately :• Earmarked balances with bank.• Balances with bank held as margin money or security against

borrowing• guarantees and other commitments• Repatriation restrictions, if any, in respect of cash and bank balances.• Bank deposits with more than 12 months maturity

Cash and CashEqivalents

Balance with BankCheques, drafts

on handCash in Hand

Others(specify the nature)

Other Current Assets All inclusive heading which incorporates current assets that do not fit in other asset categories. Specifying nature of all items

Short Term Loans And Advances• Loans and Advances to Related parties (giving details thereof)• Others (specifying nature)

• CONTINGENT LIABILITIES AND COMMITMENTS

• The following shall be disclosed to the extent not provided for: • Claims against the company not acknowledged as debts • Guarantees.• Other money for which the company is contingently liable.

Classification of Commitments into:• Estimated amount of contracts remaining to be executed on capital account and not

provided for• Uncalled liability on shares and other investments partly paid• Other commitments ( specify nature)

PROFIT AND LOSS ACCOUNT

Revenue from operations

Company other than Finance Company Finance Company

Sale of ProductsSale of ServicesOther Operating ExpensesLess: Excise Duty

InterestIncome from other Financial Services

Other Income

• Classification of Other Income into:

- Interest Income (except for a finance company)

- Dividend Income

- Net gain / loss on sale of Investments

- Other Non-Operating Income (net of expenses directly attributable)

- Adjustments to the carrying amount of investments

- Net gain from foreign currency transactions and translations

- Any item of revenue which exceed 1 % of revenue from operations or

Rs. 1lakh ,whichever is higher

EXPENSES

Expenses to Be Disclosed

Manufacturing Companies Trading CompaniesRendering/Supplying

services

Raw Materials & GoodsPurchased under

broad HeadsGoods Purchased under

Broad headsGross income derived from

Services rendered

Employee Benefits Expense • Salaries and Wages

• Contribution to Provident and Other Funds

• Expenses on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan

• Staff Welfare Expenses

• Finance Costs• Interest Expense• Other Borrowing Cost• Net gain / loss from foreign currency transactions and translations

Other Expenses Any item of expenditure which exceed 1 % of revenue from operations or Rs.1

lakh, whichever is higher

Adjustments to the carrying amount of investments

Net loss from foreign currency transactions and translations other than those considered as Finance Costs

Payment to the Auditors: • As Auditors• For Taxation matters• For Company Law matters• For Management services• For other services• For Reimbursement of expenses

Following expenditures to be shown separately• Consumption of stores and spare parts

• Power and Fuel• Rent• Repairs to Buildings• Repairs to Machinery• Insurance• Rates and Taxes, excluding Tax on Income• Miscellaneous Expenses