Revised Schedule VI Balance Sheet Guide

A PRACTICAL GUIDE TO REVISED SCHEDULE VI
-OVERVIEW & ROADMAP

DR. SANJEEV SINGHAL
VP-FINANCE
JUBILANT LIFE SCIENCES

INTRODUCTION

‘Schedule VI notified by as per Notification No.653 (E)
dated March 30, 2011 has come into force for the Balance
Sheet and Profit and Loss Account to be prepared for the
financial year commencing on or after 1-4-2011 in
accordance with old accounting standards.

With this reform in accounting world, now the financial
transactions will be brought to the notice of all the stake
holders in a better presentation broadly in line with
international presentation as compared to conventional
statements of balance sheet and profit and loss account in
old Schedule VI.

GUIDE TO PRESENTATION AND PREPARATION FORMAT OF
B/S AND P/L STATEMENT UNDER REVISED SCHEDULE VI
Background
Guide to preparation and presentation format Balance
Sheet under revised Schedule – VI
Format
Key highlights
Detailed analysis

Guide to preparation and presentation of Statement of
profit and loss under revised Schedule – VI
Format
Key highlights
Detailed analysis

GUIDE TO PREPARATION AND
PRESENTATION FORMAT OF BALANCE
SHEET UNDER REVISED SCHEDULE – VI

FORMAT OF BALANCE SHEET UNDER REVISED SCHEDULE – VI
Name of the Company…………………….
Balance Sheet as at ……………………… (Rupees
in………………………)
Particulars Note No. Figs. as at the end of Figs. as at the end of the
current reporting period previous reporting period
1 2 3 4
I. Equity and Liabilities
(1) Shareholders’ funds
(a) Share capital
(b) Reserves 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
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

KEY HIGHLIGHTS FOR PRESENTATION AND PREPARATION OF
BALANCE SHEET FORMAT UNDER REVISED SCHEDULE VI

Only vertical form of balance sheet is permitted.
Shareholders’ funds to be shown after deduction of debit balance of profit and loss
account. As a result, shareholders’ funds can be negative
Separate head for “Miscellaneous Expenditure to the extent not written off or
adjusted” discontinued.
Current and non- current classification of assets and liabilities required on the
lines of Ind AS and IFRS
Concept of operating cycle introduced
Separate head for
money received against share warrants
intangible assets
intangible assets under development
cash and cash equivalents

REQUIREMENTS FOR VARIOUS ITEMS OF BALANCE SHEET
Equity
and
Shareholders’ Funds
Liabilitie
s
Share application money pending
allotment

Non-Current Liabilities
Long term borrowings
Deferred tax liabilities (Net)
Other Long term liabilities
Long-term provisions
Provision for employee benefits.
Others (specify nature).

Current Liabilities
Short term borrowings
Trade payables
Other current liabilities
Short-term provisions

REQUIREMENTS FOR VARIOUS ITEMS IN BALANCE SHEET UNDER
REVISED SCHEDULE VI
Equity
and
A company is required to disclose
Liabilitie
Shareholders’ the following in the notes to
s funds accounts:

A. Share Capital: for each class
Share
of share capital (different classes
application of preference shares to be treated
money pending separately)
allotment B. Reserves and Surplus
C. Money received against
share warrants

Non-current
liabilities

Current
liabilities

REVISED SCHEDULE VI
Equity
and
Liabilitie Revised Schedule VI requires a
s Shareholders’ separate disclosure in respect of
funds share application money pending
allotment. It may be noted here
that:
Share
application • Share application money pending
money pending
allotment
allotment not to be presented
within Shareholders’ funds as a
separate line item.
• Only the amount not due for
Non-current refund be shown under Share
liabilities application money pending
allotment.
• Amount due for refund should be
shown under “Other Current
Current Liabilities” along with interest
liabilities accrued thereon.

REVISED SCHEDULE VI
The revised Schedule VI requires a current
Equity and non-current classification of assets
and and liabilities.
Liabilitie
s Shareholders’ A liability shall be classified as current when it
funds satisfies any of the following criteria:
(a) Settled in the company’s normal operating
cycle;
(b) It is held primarily for the purpose of being
Share traded;
application
(c) It is due to be settled within twelve months
money pending
allotment 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
Non-current
the counterparty, result in its settlement by the
liabilities
issue of equity instruments do not affect its
classification.

All other liabilities shall be classified as non-
current and needs to be presented within the
Current
liabilities following 4 broad heads on the face of balance
sheet:

REVISED SCHEDULE VI
The revised Schedule VI requires a
Equity current and non-current classification of
and assets and liabilities.
Liabilitie
s Shareholders’ A liability shall be classified as current when it
funds satisfies any of the following criteria:
(a) Settled in the company’s normal operating
cycle;
(b) It is held primarily for the purpose of being
Share traded;
application (c) It is due to be settled within twelve months
money pending
allotment after the reporting date; or
(d) The company does not have an
‘Operating cycle’ means the time between the
unconditionalof assets defer settlement of the
acquisition
right to for processing and their
liability for in cash ortwelve months after the
realization at least cash equivalents. Where the
reporting date. Terms of a liability that could,
normal operating cycle cannot be identified, it is
Non-current at theassumed tothe counterparty, result in its
option of have duration of 12 months.
liabilities
settlement by the issue of equity instruments
do not affect its classification.

All other liabilities shall be classified as non-
current and needs to be presented within the
Current
following 4 broad heads on the face of balance
liabilities
sheet:

Requirements for various items in Balance Sheet under
revised Schedule VI
Equity
and The revised Schedule VI requires a current and
non-current classification of assets and
Liabilitie liabilities. It provides the criteria for classification of
s Shareholders’
funds liabilities into current and non-current and prescribes
that :

A liability shall be classified as current when it
Share satisfies any of the following criteria:
application (a) Settled in the company’s normal operating cycle;
money pending (b) It is held primarily for the purpose of being traded;
allotment (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
Non-current months after the reporting date. Terms of a liability
liabilities that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do
not affect its classification.
Current liabilities need to be presented within the
following 4 broad heads on the face of balance sheet:
Current (a) Short-term borrowings
liabilities (b) Trade payables
(c) Other current liabilities
(d) Short-term provisions

REVISED SCHEDULE VI

Assets Non-current Assets
Fixed Assets
Tangible assets
Intangible assets
Capital work-in-progress
Intangible assets under development
Non-current Investments

Deferred tax assets (net)
Long term loans and advances
Other non-current assets

Current Assets
Current Investments
Inventories

Trade Receivables
Cash and cash equivalents

Short-term loans and advances
Other current assets

REVISED SCHEDULE VI

Assets
A. Tangible Assets: Revised Schedule VI
requires that tangible assets be
classified as under:
Fixed 1. Land, 2. Buildings, 3. Plant and
Assets Fixtures, 5.
Equipment, 4. Furniture and6,10,19 for guidance
See: AS
Vehicles, 6. Office equipment, 7. Others

B. Intangible assets: Revised Schedule
Other Non-
non- current
VI requires that intangible assets be
current Investme classified as under:
Assets Non- nts 1. Goodwill, 2. Brands /trademarks, 3.
current Computer software, 4. Mastheads and
Assets publishing titles, 5. Mining rights, 6.
Copyrights, patents and other IPR
services and operating rights, 7. Recipes,
formulae, models, designs and
See: AS 26 for guidance
Long- Deferred prototypes, 8. Licenses and franchise, 9.
term Tax

€ loans and
advances
Assets
(net)
Others.

REVISED SCHEDULE VI

Assets

Non-current investments shall
Fixed be classified as trade
Assets investments and other
investments and further
classified as:
Other Non-
(a) Investment property;
non- current (b) Investments in Equity
current Investme Instruments;
Assets Non- nts
(c) Investments in preference
current shares
Assets (d) Investments in Government or
trust securities;
(e) Investments in debentures or
bonds;
Long- Deferred (f) Investments in Mutual Funds;
term Tax
loans and Assets (g) Investments in partnership
advances (net) firms
(h) Other non-current investments
(specify nature)

REVISED SCHEDULE VI

Assets

Fixed
Assets

Other Non-
non- current
current Investme
Assets Non- nts
current
Assets
The revised Schedule VI requires
that deferred tax assets and
liabilities be presented as non-
Long- Deferred
term Tax current i.e. separately from
loans and Assets current assets and current
advances (net) liabilities . The old Schedule VI is
silent on this aspect. AS 22 for guidance
See:

REVISED SCHEDULE VI

Assets

Fixed
Assets
Long term loans and advances
should be classified as under:

(a) Capital Advances; Other Non-
non- current
(b) Security Deposits; current Investme
(c) Loans and advances to related Assets Non- nts
parties (giving details thereof); current
(d) Other loans and advances
Assets
(specify nature).

The above shall also be
separately sub-classified as: Long- Deferred
(a) Secured, considered good; term Tax
(b) Unsecured, considered good; loans and Assets
advances (net)
(c) Doubtful.

REVISED SCHEDULE VI

Assets

Other non-current assets should be classified as:
Fixed
(i) Long Term Trade Receivables (including trade Assets
receivables on deferred credit terms);
(ii) Others (specify nature)

In this regard, the following should also be noted: Other Non-
1. A receivable shall be classified as a ‘trade non- current
receivable’ if it is in respect of the amount due current Investme
Assets Non- nts
on account of goods sold or services rendered in
business. current
2. Long term Trade Receivables, shall be sub- Assets
classified as:
(a) Secured, considered good;
(b) Unsecured considered good;
(c) Doubtful Long- Deferred
3. Allowance for bad and doubtful debts shall be term Tax
disclosed under the relevant heads separately. loans and Assets
4. Debts due by directors or other officers of the advances (net)
company or any of them either severally or
jointly with any other person or debts due by
firms or private companies respectively in which
any director is a partner or a director or a
member should be separately stated.

REVISED SCHEDULE VI

Assets

Current
Investmen
ts
Inventorie
s

Trade
receivable
Curren s
t Assets Cash and
cash
equivalents

Short-term
loans and
advances

Other current
assets

REVISED SCHEDULE VI
Current investments should be classified as:
(a) Investments in Equity Instruments;
Assets (b) Investment in Preference Shares;
(c) Investments in government or trust securities;
(d) Investments in debentures or bonds;
(e) Investments in Mutual Funds;
Current (f) Investments in partnership firms;
Investmen
(g) Other investments (specify nature).
ts
Inventorie
s

Trade
receivable
Curren s
t Assets Cash and
cash
equivalents

Short-term
loans and
advances

Other current
assets

REVISED SCHEDULE VI

Assets

Current
Investmen
ts Practically there is no significance change in
the classification and presentation of
Inventorie inventories under the revised Schedule VI vis-
s à-vis old Schedule VI.

Trade
receivable
Curren s
t Assets Cash and
cash
equivalents

Short-term
loans and
advances

Other current
assets

REVISED SCHEDULE VI

Assets

Current
Investmen
ts Trade receivables that are classified as
current should be separately disclosed on the
Inventorie
s face of balance sheet. These should be further
sub-classified as
(a) Secured, considered good;
Trade
receivable (b) Unsecured considered good;
s (c) Doubtful.
Curren
t Assets Cash and
cash
equivalents

Short-term
loans and
advances

Other current
assets

REVISED SCHEDULE VI

Assets

Current
Investmen
ts
Inventorie
s
Cash & cash equivalents should be classified
Trade as:
receivable (a) Balances with banks
Curren s
(b) Cheques,drafts on hand
t Assets Cash and (c) Cash in hand
cash (d) Others
equivalents

Short-term
loans and
advances

Other current
assets

REVISED SCHEDULE VI

Assets

Current
Investmen
ts
Inventorie
s

Trade
receivable
Curren s
Short-term loans and advances should be
t Assets Cash and classified as:
cash (a) Loans and advances to related parties (giving
equivalents details thereof);
(b) Others (specify nature).
Short-term
The above shall also be sub-classified as:
loans and
advances (a) Secured, considered good;
(b) Unsecured, considered good;
Other current (c) Doubtful.
assets

REVISED SCHEDULE VI

Assets

Current
Investmen
ts
Inventorie
s

Trade
receivable
Curren s
t Assets Cash and
cash
equivalents
This is a residual heading, which incorporates
Short-term current assets that do not fit into any other asset
loans and categories. This head can contain items such as:
advances • Interest accrued on investments
• Unbilled revenue
Other current
assets • Recoverable from government agencies

REVISED SCHEDULE VI
Other Contingent liabilities and commitments
disclosures The revised Schedule VI makes a distinction between contingent
in Notes to liabilities and commitments. It requires Contingent liabilities to
A/c be classified as:
(a) Claims against the company not acknowledged as debt;
(b) Guarantees;
(c) Other money for which the company is contingently liable

Commitments should be classified as:
(a) Estimated amount of contracts remaining to be executed on
capital account and not provided for;
(b) Uncalled liability on shares and other investments partly paid
See: AS 29 contingent liabilities
Other significant disclosures (c) Other commitments (specify nature).

1. The amount of dividends proposed to be distributed to equity and preference shareholders for the
period and the related amount per share should be disclosed separately.
2. Arrears of fixed cumulative dividends on preference shares should also be disclosed separately.
3. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount
has not been used for the specific purpose at the balance sheet date, it should be disclosed by way of
a note how such unutilized amounts have been used or invested.
4. If, in the opinion of the Board, any of the assets other than fixed assets and non-current investments
do not have a value on realization in the ordinary course of business at least equal to the amount at
which they are stated, the fact that the Board is of that opinion, should be stated.

GUIDE TO PREPARATION AND
PRESENTATION OF STATEMENT OF
PROFIT AND LOSS UNDER REVISED
SCHEDULE – VI

PRESENTATION FORMAT OF PROFIT AND LOSS STATEMENT UNDER
REVISED SCHEDULE – VI
Name of the Company…………………….
Profit and Loss Statement for the year ended ………… (Rupees
in………………………)
Particulars Note No. Figures as at the Figures as at the end of
end of current the previous reporting
reporting period period
I. Revenue from operations xxx xxx
II. Other income xxx xxx
III. Total Revenue (I + II) xxx xxx
IV. Expenses:
Cost of materials consumed xxx xxx
Purchases of Stock-in-Trade xxx xxx
Changes in inventories of finished goods Work-in-progress and Stock-in-Trade xxx xxx
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total expenses xxx xxx
V. Profit before exceptional and extraordinary items and tax (III – IV) xxx xxx
VI. Exceptional items xxx xxx
VII. Profit before extraordinary items and tax (V – VI) xxx xxx
VIII. Extraordinary Items xxx xxx
IX. Profit before tax (VII – VIII) xxx xxx
X. Tax expenses:
(1) Current tax xxx xxx
(2) Deferred tax xxx xxx
XI. Profit/(Loss) for the period from continuing operations (VII – VIII)* xxx xxx

XII. Profit/(Loss) from discontinuing operations xxx xxx
XIII. Tax expense of discontinuing operations xxx xxx
XIV. Profit/(loss) from Discontinuing operations (after tax) (XII – XIII) xxx xxx

XV. Profit (Loss) for the period (XI + XIV) xxx xxx
XVI. Earnings per equity share:
(1) Basic xxx xxx
(2) Diluted xxx xxx

* This should be read as IX – X – XIV

Key highlights for presentation and preparation of Profit
and Loss statement under revised Schedule VI

1. Format of statement of profit and loss prescribed.
2. Only vertical form of statement of profit and loss is permitted.
3. Classification of expenses by nature needs to be given
4. Profit or loss from discontinuing operations needs to be shown separately
on the face of the statement of profit and loss. Earlier this requirement
was based on accounting standard and not Schedule VI.
5. Quantitative disclosures relating to turnover, raw materials, purchases,
installed capacity, actual production, details of managerial remuneration
dispensed with.

Requirements for various items of statement of Profit and
Loss under revised Schedule VI

REQUIREMENTS: RELATING TO INCOME

Revenue
For other than finance companies
For finance companies
For companies rendering or supplying
services
For other companies

Other Income

REQUIREMENTS RELATING TO INCOME
(a) sale of products;
Revenue
Other than (b) sale of services;
from
finance (c) other operating
operatio
revenues.
companies ns
(d) = (a) + (b) + (c)
(e) = (d) – Excise duty

See: AS 9 on Rev.
Recognition

Revenue (a) Rev. from interest;
For finance
from (b) Rev. from other
companies operatio financial services.
ns
Revenue

For services Gross income derived from services
companies rendered or supplied under broad heads
should be disclosed.
Broad heads shall be decided based on materiality and
presentation of true and fair view of financial
statements.

For other Gross income derived under broad head
companies should be disclosed.

REQUIREMENTS RELATING TO INCOME

Classifications of other income

Interest Income (in case of a company other than a finance
company);
Dividend Income;
Net gain/loss on sale of investments;
Other Other non-operating income (net of expenses directly attributable
to such income).
Income
What has been dispensed with?

No bifurcation between income from trade investments and other
investments.
No need to disclose TDS while presenting gross figures of income
from:
a) interest;
b) Investments.

REQUIREMENTS FOR VARIOUS ITEMS OF STATEMENT OF
PROFIT AND LOSS

Requirements: relating to Expenses
Raw material and work in progress
Finance costs
Employee benefits expense
Depreciation and amortization expense
Payment to auditors
Other Expenses
Prior period items
Exceptional and extraordinary Items
Discontinuing Operations
Amounts set aside for reserves, provision for
contingencies etc.
Imports/foreign exchange income, expenditure etc.

REQUIREMENTS RELATING TO EXPENSES
Disclosure requirements for raw materials
Raw
material & Disclosure requirements for raw
Imports/for Work in Type of
eign Progress S.N. material consumed & goods
exchange Finance Companies
costs
purchased
income,
expenditur 1. Manufacturing (1)Raw materials under broad heads.
e, etc. Companies (2)Goods purchased under broad heads.

Amounts
set aside
2. Trading Purchases in respect of goods traded in by
Employee
for Companies
benefits the company under broad heads.
reserves, expense
provisions,
etc. 3. Diversified Purchases, sales and consumption of raw
Companies material and the gross income from
(more than one of services rendered is shown under broad
the categories) heads.
Expenses
Work in progress to be disclosed under broad
Depreciati
Discontinu on &
ing heads. Amortizati
Operations on expense

Exceptiona
l and Payment to
extraordin auditors
ary Items

Prior
period Other
items Expenses


Raw
material &
Imports/for Work in Finance costs should be classified
eign Progress
exchange Finance as:
income, costs
expenditur
e, etc.
(a) Interest expense;
Amounts
set aside Employee(b) Other borrowing costs;
for benefits
reserves, expense
provisions, (c) Applicable net gain/loss on
etc.

foreign currency transactions and
Expenses translation.
Depreciati Also See: AS 16 on “Borrowing
Discontinu on &
ing Amortizati Costs”

Exceptiona
l and Payment to
extraordin auditors
ary Items

Prior
period Other
items Expenses


Raw
material &
Imports/for Work in
eign Progress
exchange Finance
income, costs
expenditur
e, etc.

Amounts The following amounts in
set aside Employee
for benefits respect of employee benefit
reserves, expense
provisions, expenses should be shown
etc.
separately-
1.Salaries and wages;
Expenses
Depreciati
Discontinu on & 2.Contribution to
ing Amortizati
provident and other
funds;

3.Expense on Employee
Exceptiona
l and Payment to Stock Option Scheme
extraordin auditors
ary Items (ESOP) and Employee
Stock Purchase Plan
Prior
period Other (ESPP);
items Expenses

4.Staff welfare expenses;


Raw
material &
Imports/for Work in
eign Progress
exchange Finance
income, costs
expenditur
e, etc.

Amounts
set aside Employee
for benefits
reserves, expense
provisions,
etc.

Expenses The following amounts
Depreciati
Discontinu on &
ing need to be shown
Amortizati
Operations on expense separately -
1. Depreciation
(See AS 6 and Schedule XIV of
Exceptiona Companies Act,1956).
l and Payment to
extraordin auditors 2. Amortization
ary Items

3. Impairment
Prior
period Other (impairment amount would need
items Expenses
to be shown by virtue of AS 28 on
“Impairment of Assets”.


Raw
material &
Imports/for Work in
eign Progress
exchange Finance
income, costs
expenditur
e, etc.

Amounts
set aside
A Company shall disclose by
Employee
for benefits
reserves,
way of notes additional
expense
provisions, information regarding aggregate
etc.
expenditure on payments to the
auditor as -
Expenses
Depreciati (a) auditor;
Discontinu on &
ing Amortizati
Operations on expense (b) for taxation matters;
(c) for company law matters;
(d) for management services;
Exceptiona
l and Payment to
extraordin auditors (e) for other services;
ary Items

(f) for reimbursement of
Prior
period Other
items Expenses expenses.


Raw
material &
Imports/for Work in
eign Progress
exchange Finance Expenditure incurred on each of the following
income, costs
expenditur
items forming part of “Other expenses” as shown
e, etc. on the face of statement of profit or loss should be
separately disclosed in the notes to the accounts
Amounts
set aside for each item:—
Employee
for benefits
(a) Consumption of stores and spare parts.
reserves, expense
provisions, (b) Power and fuel.
etc.
(c) Rent.
(d) Repairs to buildings.
(e) Repairs to machinery.
Expenses
(g) Insurance.
Depreciati
Discontinu on &
ing (h) Rates and taxes, excluding, taxes on income.
Amortizati
Operations
(i) on expense
Miscellaneous expenses

Besides, the following items would also require a
separate disclosure:
Exceptiona
l and • Any
Payment to item of income or expenditure which
extraordin auditors
exceeds one per cent of the revenue from
ary Items
operations or Rs. 1,00,000, whichever is higher
Prior • Net gain/loss on sale of investments;
period Other
Expenses • Adjustments to the carrying amount of
items
investments;
• Net gain or loss on foreign currency transaction
and translation (other than considered as
finance cost).


Raw
material &
Imports/for Work in
eign Progress
exchange Finance
income, costs
expenditur
e, etc.

Amounts
set aside Employee
for benefits
reserves, expense
provisions,
etc.

Expenses
Depreciati
Separate disclosure byDiscontinu
way of on &
ing Amortizati
Operations
notes of additional information on expense
regarding aggregate
expenditure and income in
respect of prior period items.
Exceptiona
As no further guidance given in l and Payment to
extraordin auditors
revised Schedule VI on priorary Items
period items, guidance from AS
Prior
5 on “Net Profit or Loss for the period Other
items Expenses
Period, Prior Period Items and
Changes in Accounting
Policies” is taken.


Raw
material &
Imports/for Work in
eign Progress
exchange Finance
income, costs
expenditur
e, etc.

Amounts
set aside Employee
for benefits
reserves, expense
provisions,
etc.
Separate disclosure required
on the face of statement of
profit or loss below aggregate Expenses
Depreciati
expenditure and income. No Discontinu on &
ing Amortizati
further guidance given in Operations on expense
revised Schedule VI on
Exceptional and
extraordinary Items. Thus
Exceptiona
guidance from AS 5 on “Net l and Payment to
extraordin auditors
Profit or Loss for the Period, ary Items
Prior Period Items and
Prior
Changes in Accounting period Other
items Expenses
Policies” is taken.

Separate disclosure of the
Raw
following items on the face of material &
Imports/for Work in
statement of profit or loss eign Progress
exchange Finance
pertaining to discontinuing income, costs
expenditur
operations required: e, etc.

Amounts
Profit/(loss) from set aside Employee
for benefits
xxx reserves, expense
provisions,
discontinuing etc.
operations

Tax expense of Expenses
Depreciati
Discontinu on &
xxx ing Amortizati
discontinuing
operations

Profit/(loss) from Exceptiona
l and Payment to
xxx extraordin auditors
Also See: AS 24 on “Discounting ary Items
discontinuingOperations”
operations (after tax) Prior
period Other
items Expenses


Raw
material &
Imports/for Work in
eign Progress
exchange Finance
income, costs
expenditur
e, etc.
Following information should be
disclosed in notes to accounts: Amounts
set aside Employee
• The aggregate, if material, of any for benefits
amounts set aside or proposed to be reserves, expense
provisions,
set aside, to reserve, but not etc.
including provisions made to meet
any specific liability, contingency
or commitment known to exist at Expenses
Depreciati
the date as to which the balance- Discontinu on &
ing Amortizati
sheet is made up. Operations on expense
• The aggregate, if material, of any
amounts withdrawn from such
reserves.
• The aggregate, if material, of the Exceptiona
amounts set aside to provisions l and Payment to
extraordin auditors
made for meeting specific ary Items

liabilities, contingencies or
commitments. Prior
period Other
items Expenses
• The aggregate, if material, of the
amounts withdrawn from such
provisions, as no longer required.


Raw
The profit and loss account should contain material &
following information by way of a note: Imports/for Work in
eign Progress
(a) Value of imports calculated on C.I.F basis by exchange Finance
the company during FY on — Raw materials, income, costs
expenditur
Components & spare parts and Capital goods. e, etc.
(b) Expenditure in foreign currency during the FY
on account of royalty, know-how, professional, Amounts
set
consultation fees, interest, and other matters. aside Employee
for benefits
(c) Total value if all imported raw materials, reserves, expense
provisions,
spare parts and components consumed during etc.
the financial year and the total value of all
indigenous raw materials, spare parts and
components similarly consumed and the
percentage of each to the total consumption. Expenses
Depreciati
(d) The amount remitted during the year in Discontinu on &
ing Amortizati
with
foreign currencies on account of dividendsOperations
on expense
a specific mention of the total number of non-
resident shareholders, the total number of
shares held by them on which the dividends
were due and the year to which the dividends
Exceptiona
related. l and Payment to
(e) Earnings in foreign exchange classified under extraordin auditors
ary Items
the following heads
i. Export of goods calculated on F.O.B. basis;
ii. Royalty, know-how, professional and Prior
period Other
consultation fees; items Expenses
iii. Interest and dividend;
iv. Other income, indicating the nature thereof.

MAJOR DIFFERENCES: OLD AND
REVISED SCHEDULE – VI

Comparison – old and revised content of Schedule
– VI
Major Differences: Parameters

Old New
Schedule VI Schedule VI
Comprised of :
Part 1: Balance Comprises of:
Sheet
Part 1: Balance
Part 2: P/Loss Sheet
Account
Part 2:
Part 3:
Statement of
Interpretations Profit and Loss
Part 4: B/S
Abstract and
Company’s
General Business
Profile

Major
Differenc
e
Paramete
rs

– VI

Old New
It addresses the
issue by clearly
Silent on the providing that
issue of whether
the accounting
the Schedule VI
standards will
overrides the
accounting override
standards. Schedule VI.
Thus AS prevail
over Schedule
VI.

Major
Differenc
e
Paramete
rs

– VI

Old New

Both horizontal Only vertical
and vertical format
format permitted. permissible.

Major
Differenc
e
Paramete
rs

– VI

Old New

No prescribed
format for Profit
and Loss Format of Profit
Account. Only and Loss account
minimum is prescribed.
requirements
were specified.

Major
Differenc
e
Paramete
rs

– VI

Old New
Guidance on
presentation of notes
to accounts given in
addition to
information
presented in the
financial statements.
No guidance on It shall provide
presentation of wherever required;
notes to the (a) narrative
accounts. descriptions or
disaggregations of
items recognized in
Major those statements and
(b) information about
Differenc
items that do not
e qualify for
Paramete recognition in those
rs statements.

AREAS WHERE ADDITIONAL
DISCLOSURE REQUIREMENTS
SPECIFIED AS PER REVISED
SCHEDULE VI

– VI
Areas where additional disclosure requirements specified as per revised
Schedule VI Share Current &
application Non- Cash and
Shareholder’s money current Bonds & Fixed Intangible cash
funds Borrowings Debentures assets assets
pending classificati equivalents
allotment on

– VI
Schedule VI… Share Current &
money current Bonds & Fixed Intangible cash
Shareholder’s Borrowings Debentures assets assets
funds pending classificati equivalents
allotment on

Item Old Schedule VI Revised Schedule VI
Disclosure of reconciliation of no. of shares
outstanding at beginning and end of reporting Not required
for each class of share capital
period
Disclosure of rights, preferences and
restrictions attaching to each class of shares Separate disclosure required
Not required
including restrictions on distribution of for each class of share capital
dividends and repayment of capital
Disclosure of shares in company held by each
shareholder holding more than 5 % shares Not required
for each class of share capital
specifying no. of shares held
Disclosure of the shares reserved for issue
Only particulars for any
under options and contracts /commitments for Separate disclosure required
option on unissued share
sale of shares/ disinvestment, including terms for each class of share capital
capital to be disclosed
and amounts
Requires separate disclosure
Share options outstanding No guidance under head “Reserves and
Surplus”.
Separate disclosure required in
Money received against share warrants No guidance B/S under head “Shareholders’
Funds”.

– VI
Schedule VI… Current &
Share Non- Cash and
Shareholder’s application current Bonds & Fixed Intangible cash
funds money
Borrowings Debentures assets assets
classificati equivalents
pending on
allotment


Share application money pending allotment
(not due for refund) is to be shown as a
Share application money pending separate line item in B/S. This item to be
No guidance
allotment disclosed as a separate head between
“Shareholders’ Funds” and “Non-Current
Liabilities”

– VI
allotment on

Required.
A liability is classified as current when it satisfies any of the following criteria:
Current and (a) it is expected to be settled in company’s normal operating cycle;
non-current (b) it is held primarily for the purpose of being traded;
Not required
classification (c) it is due to be settled within twelve months after the reporting date; or
of liabilities (d)company does not have an unconditional right to defer settlement of liability for
at least 12 months after reporting date.
All other liabilities are classified as non-current.

Requires a clear bifurcation of assets into current and non-current.
An asset is classified as current when it satisfies any of the following criteria:
(a) it is expected to be realized in, or is intended for sale or consumption in,
Current and Requires current
company’s normal operating cycle;
non-current assets and loans and
(b) it is held primarily for the purpose of being traded;
classification advances to be shown
of assets (c) it is expected to be realized within 12 months after reporting date; or
separately.
(d) it is cash or cash equivalent unless it is restricted from being exchanged or
used to settle a liability for at least 12 months after reporting date.
All other assets are classified as non-current.

– VI
allotment on

Old Schedule
Item Revised Schedule VI
VI

Required.
Disclosure of
To be specified separately in each case of both Long and Short term
defaults in case of Not required
borrowings for period and amount of continuing default as on the B/S
borrowings
date in repayment of loans and interest.

Loans and Separate
Required. Separate classification under head “Long term borrowings”
advances from classification not
or “Short term, borrowings”, as the case may be
related parties required

– VI
Shareholder’s money current Fixed Intangible cash
funds Borrowings Bonds & assets assets
pending classificati Debentures equivalents
allotment on


Disclosure of Bonds/debentures (along with ROI and particulars of
Bonds/debentures (along redemption or conversion, as the case may be) need to be
with ROI and stated in descending order of maturity or conversion, starting
Not required
particulars of from farthest redemption or conversion date, as the case may
redemption or be. Where bonds/debentures are redeemable by instalments,
conversion) maturity date is the first instalment date becomes due.

– VI
Shareholder’s money current Bonds & Intangible cash
funds Borrowings Debentures Fixed assets
pending classificati assets equivalents
allotment on


Disclosure of impact of acquisitions
through business combinations and Not required Required
impairment (or reversal thereof)

– VI
Shareholder’s money current Bonds & Fixed cash
funds Borrowings Debentures assets Intangible
pending classificati assets equivalents
allotment on


Intangible assets to be classified as under:
(a) Goodwill.
(b) Brands /trademarks.
(c) Computer software.
Classificatio (d) Mastheads and publishing titles.
No guidance on
n of (e) Mining rights.
classification of intangible
intangible (f) Copyrights, and patents and other intellectual property rights,
assets
assets services and operating rights.
(g) Recipes, formulae, models, designs and prototypes.
(h) Licenses and franchise.
(i) Others (specify nature).

– VI
Shareholder’s money current Bonds & Fixed Intangible
funds Borrowings Debentures assets assets cash
pending classificati equivalen
allotment on ts


Disclosure of cheques and drafts
Not required Required
on hand

Separate disclosure of bank
balances with more than 12 Not required Required
months maturity

Separate disclosure of
Not required Required
repatriation restrictions

AREAS WHERE DISCLOSURE
REQUIREMENTS DISPENSED WITH IN
REVISED SCHEDULE VI

– VI
Areas where disclosure requirements dispensed with in revised Schedule VI

Sharehold Turnover Income Cash & Interest TDS
er’s funds from cash Income
investment equivalent
s

Opening Quantitati Share Dues from directors, other
and closing ve Depreciati
capital officers, companies under
stock of informatio on
goods and loans same management
n

– VI
Areas where disclosure requirements dispensed with in revised Schedule VI…

s

Revised
Item Old Schedule VI
Schedule VI
Sources from which bonus shares are issued Required Not required
Disclosure of utilisation of securities premium
Required Not required
amount

n

– VI

s

Revised
Schedule VI
Break up of turnover-quantities and amounts in
respect of each class of goods

n

– VI

s

Revised
Schedule VI
Bifurcation between income from trade and
other investments

n

– VI

s

Revised
Schedule VI
Separate disclosure of bank balances with
schedules and non-scheduled banks

n

– VI

s

Revised
Schedule VI
Nature of interest income Required Not required

n

– VI

s

Revised
Schedule VI
Disclosure of TDS in case of gross presentation
of income from investments and interest

n

– VI

s

Revised
Schedule VI
Disclosure in case of manufacturing and trading
companies for opening and closing stock of
goods produced/traded giving break up and
quantities

n

– VI

s

Revised
Schedule VI
Disclosure in case of manufacturing companies
for quantitative information on
licensed/installed capacity and actual
production

n

Revised Schedule VI Balance Sheet Guide

Revised Schedule VI Balance Sheet Guide

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