Sch 6 changes


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schedule VI changes

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Sch 6 changes

  1. 1. Changes in Schedule VI  BY CA. SUMAT SINGHAL  HAR MANZIL  KARO HASIL
  2. 2. TITLELiabilities and Assets were classified The Liabilities and Assets to beunder the heading of SOURCE classified under the heading ofOF FUNDS & EQUITY AND LIBILITIESAPPLICATION OF & ASSETSFUNDS
  3. 3. New Disclosures in Share Capital  A reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period  Shares in in the company held by each shareholder holding more than 5% share specifying the number of share held
  4. 4. New Disclosures in Share CapitalOld Discloser New DiscloserAuthorised Capital: 1,00,000 Authorised Capital: 1,00,000Issued & subscribed Capital: 1,00,000 Issued & subscribed Capital: 1,00,000Share Application: 10,00,000 Share Application: 10,00,000Pending for Allotment Pending for AllotmentNo Restriction Now terms & conditions of share application money needs to be disclosed as if sufficient balance of Authorised capital is not available.
  5. 5. RESERVES & SURPLUSOld Schedule VI Revised Schedule VIP&L debit balance was shown under Debit balance of Profit and Lossthe head Miscellaneous expenditure & Account to be shown as negativelosses figure under the head Surplus. Therefore, reserve & surplus balance can be negative.
  6. 6. Separate disclosure of Current LiabilityOld Discloser New DiscloserEarlier Current Liabilities and Provisions Now it is to be shown separately as Nonare shown by deducting from Current Current Liabilities and Current LiabilitiesAssets under the Head of under the Head EQUITY ANDAPPLICATION OF FUNDS LIBILITIES
  7. 7. Criteria for classifying Current Liability It is expected to be settled in the company’s normal operating cycle. It is held primarily for the purpose of being traded. It is due to be settled within twelve months after the reporting date; or The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.Other than that all should be classified as Non Current Liabilities
  8. 8. BorrowingsOld Schedule VI Revised Schedule VIShort term & long term borrowings Long term borrowings to be shownare grouped together under the head under non-current liabilities and shortLoan funds sub-head Secured / term borrowings to be shown underUnsecured current liabilities. Borrowings shall further be sub- classified as Secured and Unsecured. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified
  9. 9. Deferred Tax Assets / LiabilitiesOld Schedule VI Revised Schedule VIDeferred Tax assets / liabilities were Deferred Tax assets / liabilities to benot specified. disclosed under non-current assets / liabilities as the case may be.
  10. 10. Sundry CreditorsOld Schedule VI Revised Schedule VICreditors were broken up in to micro Classified under Long Term Liabilities& small suppliers and other creditors as Trade Payables and under current Liabilities.
  11. 11. LONG TERM DEBT – CURRENT MATURITYOld Schedule VI Revised Schedule VINo specific mention for separate Current maturities of long term debt to bedisclosure of Current maturities of long disclosed under other current liabilitiesterm debt
  12. 12. Fixed AssetsOld Schedule VI Revised Schedule VIThere was no bifurcation required of Fixed assets to be shown under non-tangible & intangible assets on the face current assets and it has to beof the Balance sheet. bifurcated in to Tangible & intangible assets on the face of the Balance Sheet.
  13. 13. InvestmentsOld Schedule VI Revised Schedule VIBoth current & non-current Current and non-current investmentsinvestments to be disclosed under the are to be discosed separately underhead investments current assets & non-current assets respectively
  14. 14. Criteria for classifying CurrentAssets It is expected to be realized in, or is intended for sale or consumption in the company’s normal operating cycle. It is held primarily for the purpose of being traded It is Expected to be realized within 12 months after reporting date. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability foe at least twelve months after the report date.Other than that all should be classified as Non Current Assets.
  15. 15. DepositsOld Schedule VI Revised Schedule VILease deposits are part of loans & Lease deposits to be disclosed asadvances long term loans & advances under the head non-current assets
  16. 16. Cash & Bank BalancesOld Schedule VI Revised Schedule VIBank balance to be bifurcated in Bank balances in relation toscheduled banks & others earmarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately.
  17. 17. Loans & AdvancesOld Schedule VI Revised Schedule VILoans & Advance are disclosed Loans & Advances to be broken up inalongwith current assets long term & short term and to be disclosed under non-current & current assets respectively And further bifurcation with capital advances security deposits etc.
  18. 18. PROFIT & LOSS – EXPENSESOld Schedule VI Revised Schedule VIAny item under which Any item of income / expense whichexpense exceeds one per cent of the exceeds one per cent of the revenuetotal revenue of the company or5,000 from operations or1,00,000, whichwhich ever is higher; was disclosed ever is higher; to be disclosedseparately separately
  19. 19. Finance CostOld Schedule VI Revised Schedule VIFinance cost to be classified in fixed Finance cost shall be classified asloans & other loans interest expense, other borrowing costs & Gain / Loss on foreign currency transaction & translation
  20. 20. Rounding off of Figures appearing in financial statementOld Schedule VI Revised Schedule VITurnover of less than 100 Crores - Turnover of less than 100 Croress - R/R/off to the nearest Hundreds, off to the nearest Hundreds,thousands or decimal thereof thousands, lakhs or millions or decimal thereofTurnover of 100 Crores or more but Turnover of 100 Croress or more -less than500 Crores - R/off to the R/off to the nearest lakhs, millions ornearest Hundreds, thousands, lakhs crores, or decimal thereofor millions or decimal thereofTurnover of 500 Crs or more - R/off tothe nearest Hundreds, thousands,lakhs, millions or crores, or decimalthereof
  21. 21. PurchasesOld Schedule VI Revised Schedule VIThe purchase made and the opening & Goods traded in by the company toclosing stock, giving break up in be disclosed in broad heads inrespect of each class of goods traded notes. Disclosure of quantitativein by the company and indicating the details of goods is dilutedquantities thereof.