8-Jul-13 Presented by Jaswinder Singh

REVISED SCHEDULE VI OF THE COMPANIES ACT, 1956

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A Comparison with Old Schedule VI Presented by: Jaswinder Singh

EFFECTIVE DATE
8-Jul-13

Presented by Jaswinder Singh

Financial Year commencing on or after 01-April2011

(REVISED SCHEDULE VI)

V/S

(ACT & AS)

8-Jul-13

Act & AS will prevail

Provisions given in the Companies Act, 1956 & AS specified by the Accounting Standard Rules of 2006, has precedence over Revised Schedule VI to the extent the disclosure requirements / treatment of the revised schedule VI is not consistent with the provisions or the AS.

Presented by Jaswinder Singh

Disclosure as per Revised Schedule VI is in addition to other accounting / disclosure requirements.

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CURRENT AND NON-CURRENT ASSET

8-Jul-13

Current (a) it is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. Non-Current All other assets shall be classified as non-current.

Presented by Jaswinder Singh

CURRENT AND NON-CURRENT LIABILITY

8-Jul-13

Current (a) it is expected to be settled in the companys normal operating cycle; (b) it is held primarily for the purpose of being traded (c ) it is due to be settled within twelve months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Non-Current All other liabilities shall be classified as non-current

Presented by Jaswinder Singh

8-Jul-13

Presented by Jaswinder Singh

NOMENCLATURE EQUITY AND LIABILITIES

FORMAT OF BALANCE SHEET

8-Jul-13

Old Schedule VI Horizontal or Vertical

Revised Schedule VI Vertical Only

Presented by Jaswinder Singh

EQUITY
8-Jul-13

Old Schedule VI Earlier no separate disclosure on the face of balance sheet

Revised Schedule VI Money received against share warrants

Presented by Jaswinder Singh

Earlier no separate disclosure on the face of balance sheet

Share application money pending allotment

DEPOSIT LIABILITY
8-Jul-13

Old Schedule VI
Deposit liability no distinction between long term and short term.

Revised Schedule VI
To be disclosed under the longterm borrowings unless it has current maturity in which case to be grouped under short term borrowings.

Presented by Jaswinder Singh

FIXED ASSETS
8-Jul-13

Old Schedule VI
No bifurcation required into tangible & intangible assets.

Revised Schedule VI
To be shown under non-current assets and it has to be bifurcated in to Tangible & intangible assets.

Presented by Jaswinder Singh

Tangible Intangible CWIP Intangible under development

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BORROWINGS
8-Jul-13

Old Schedule VI
Short term & long term borrowings are grouped together under the head Loan funds subhead Secured / Unsecured

Revised Schedule VI
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.

Presented by Jaswinder Singh

Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified

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FINANCE LEASE OBLIGATION

8-Jul-13

Old Schedule VI
Included in current liabilities

Revised Schedule VI
Included in Non-current liabilities. However, short term maturities of Fin Lease obligation to be grouped under current liabilities only.

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Presented by Jaswinder Singh

DEPOSIT ASSET
8-Jul-13

Old Schedule VI
Lease deposits are part of loans & advances

Revised Schedule VI
Lease deposits to be disclosed as long term loans & advances under the head non-current assets unless they are of current nature

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Presented by Jaswinder Singh

INVESTMENTS
8-Jul-13

Old Schedule VI
Both current & non-current investments to be disclosed under the head investments

Revised Schedule VI
Current and non-current investments are to be disclosed separately under current assets & non-current assets respectively.

Presented by Jaswinder Singh

Investments carried at other than cost should be separately disclosed and the basis of its valuation to be disclosed

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LOANS & ADVANCES

8-Jul-13

Old Schedule VI
Loans & Advance are disclosed along with current assets

Revised Schedule VI
Loans & Advances to be broken up in long term & short term and to be disclosed under non-current & current assets respectively.

Presented by Jaswinder Singh

Loans & Advance to related parties to be disclosed separately.

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NET WORKING CAPITAL

8-Jul-13

Old Schedule VI Current assets & Liabilities are Netted off and Net Working Capital amount is shown

Revised Schedule VI Assets & Liabilities are to be bifurcated in to current & Noncurrent and to be shown separately. Hence, net working capital will not be appearing in Balance sheet.

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Presented by Jaswinder Singh

DEFERRED TAX ASSETS / LIABILITIES

8-Jul-13

Old Schedule VI
Deferred Tax assets / liabilities to be disclosed separately

Revised Schedule VI
Deferred Tax assets / liabilities to be disclosed under non-current assets / liabilities as the case may be. Not to be disclosed as current.

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Presented by Jaswinder Singh

CASH & BANK BALANCES

8-Jul-13

Old Schedule VI
Bank balance to be bifurcated in scheduled banks & others

Revised Schedule VI
- Bank balances in relation to earmarked balances, -held as margin money against borrowings, -deposits with more than 12 months maturity, each of the above to be shown separately.

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Presented by Jaswinder Singh

LOSS
8-Jul-13

Old Schedule VI
Debit balance in profit and loss account to be shown under the head Miscellaneous expenditure & losses.

Revised Schedule VI
To be shown as negative figure under the head Surplus. Therefore, reserve & surplus balance can go negative.

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Presented by Jaswinder Singh

SUNDRY CREDITORS
8-Jul-13

Old Schedule VI
Creditors to be broken up in to micro & small suppliers and other creditors.

Revised Schedule VI
No mention of micro & small enterprise disclosure. However, it is continued to be disclosed under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.

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Presented by Jaswinder Singh

OTHER CURRENT LIABILITIES

8-Jul-13

Old Schedule VI
Current maturities of long term debt need not be disclosed on the face separately.

Revised Schedule VI
Current maturities of long term debt to be disclosed under other current liabilities.

Presented by Jaswinder Singh

Current maturities of finance lease obligation need not be disclosed on the face separately.

Current maturities of finance lease obligation to be disclosed hereunder separately.

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8-Jul-13

Presented by Jaswinder Singh

NOMENCLATURE STATEMENT OF PROFIT AND LOSS

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SEPARATE LINE ITEM

8-Jul-13

Old Schedule VI 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

Revised Schedule VI 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

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Presented by Jaswinder Singh

REVENUES
8-Jul-13

Old Schedule VI

Revised Schedule VI

Presented by Jaswinder Singh

Sales for each class of goods to be Quantitative details are done separately shown indicating the away with. quantities of such sales (Quantitative sales

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PURCHASES AND CONSUMPTION

8-Jul-13

Old Schedule VI

Revised Schedule VI

Presented by Jaswinder Singh

Required both value and Disclosure of quantitative quantitative disclosure in respect details of goods purchased is no of Raw Materials and traded longer required. goods. However, values to be classified under broad heads.

As per ICAI exposure draft on Revised Schedule VI Quantitative details disclosure is not required.
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EMPLOYEE COMPENSATION
8-Jul-13

Old Schedule VI
Earlier not required separately

Revised Schedule VI
Employee stock option expense to be shown separately

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Presented by Jaswinder Singh

FINANCE COST
8-Jul-13

Old Schedule VI
Interest Cost Companys Debentures On Fixed Loans Paid to Managing Director / Manager

Revised Schedule VI
Interest Expenses Other borrowing costs Gain / Loss on foreign currency translations / transactions (finance cost portion only forex fluctuation on interest paid in foreign currency)

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Presented by Jaswinder Singh

OTHER CHANGES

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8-Jul-13

Presented by Jaswinder Singh

ROUNDING OFF
8-Jul-13

Old Schedule VI

Revised Schedule VI

Turnover of less than Rs. 100 Crs Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, - R/off to the nearest Hundreds, thousands or decimal thereof thousands, lakhs or millions 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 Rs. 100 Crs or more R/off to the nearest lakhs, millions or crores, or decimal thereof

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Presented by Jaswinder Singh

COMPARATIVES
8-Jul-13

Presented by Jaswinder Singh

Comparatives has to be compliant with Revised Schedule VI and amounts need to be given for the financial year 2010-11 in the revised Schedule VI format. First set of financials compliant with revised Schedule VI will be for the year 2011-12

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INTERIM FINANCIAL REPORTING

8-Jul-13

Companies presenting Condensed interim financial statements Company need not comply with Revised Schedule VI requirements

Companies presenting Complete set of financial statements Company should comply with Revised Schedule VI requirements from Financial year 2012-13 and onwards only.

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Presented by Jaswinder Singh

AUDITORS APPROACH - SUGGESTED

8-Jul-13

Verify audit evidence which goes to substantiate the expected timelines of realisation of assets or settlement of liabilities to ensure proper bifurcation between current and non-current. Ask the clients in advance to be prepared with the new format requirements with necessary backup / supporting.

Presented by Jaswinder Singh

Make use of tailored procedures / disclosure checklists to ensure complete disclosure.

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Current and Non-Current

TAKE AWAY

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