This document provides guidance on preparing the balance sheet format according to the Companies Act, 1956 and Schedule VI. It discusses the key components of the balance sheet including share capital, reserves and surpluses, non-current liabilities, current liabilities, non-current assets, current assets, and notes on the classification and presentation of items. The document also provides accounting treatments and disclosure requirements for items like share capital, borrowings, investments, provisions, taxation etc. according to Indian accounting standards.
Revised Schedule VI of Companies Act, 1956Ankur Chaplot
Presented by CA. Ankur Chaplot in Seminar on Changes in Revised Schedule VI of The Companies Act, 1956 organised by Ratlam Branch of CIRC of ICAI. Awarded as Best Submission at Ratlam Branch 2012-13.
CDR was instituted by Reserve Bank of India (RBI), National Central bank of India in August 2001 as a voluntary mechanism to reorganize outstanding debt obligations.
The reorganization of the debt can be made by the following ways:
Increasing the tenure of the loan
Reducing the rate of interest
One time settlement
Conversion of debt into equity
Converting un-serviced portion of interest into term loan
It has been a successful instrument allowing corporates to return to profitability for benefit of all stakeholders involved.
Revised Schedule VI of Companies Act, 1956Ankur Chaplot
Presented by CA. Ankur Chaplot in Seminar on Changes in Revised Schedule VI of The Companies Act, 1956 organised by Ratlam Branch of CIRC of ICAI. Awarded as Best Submission at Ratlam Branch 2012-13.
CDR was instituted by Reserve Bank of India (RBI), National Central bank of India in August 2001 as a voluntary mechanism to reorganize outstanding debt obligations.
The reorganization of the debt can be made by the following ways:
Increasing the tenure of the loan
Reducing the rate of interest
One time settlement
Conversion of debt into equity
Converting un-serviced portion of interest into term loan
It has been a successful instrument allowing corporates to return to profitability for benefit of all stakeholders involved.
What is Corporate Debt Restructuring, how can it be done and what are the rules and guidelines for CDR? Read this Research Report from Resurgent India to know everything about Corporate Debt Restructuring.
CDR( Corporate Debt Restructuring)
can be described as a proactive measure to not let companies land into a troublesome financial situation from where they cannot make a recovery. It can be explained as a voluntary and non-regulatory method for organizations to deal with their dues.
Emerging Trends in Corporate Finance - Corporate Debt Restructuring and Rece...Resurgent India
Under a corporate debt restructuring plan, the lenders give the company, the benefit of reduced interest rates and a moratorium period for repayment, and in some cases, lender even sacrifice a part of the principal amount.
What is Corporate Debt Restructuring, how can it be done and what are the rules and guidelines for CDR? Read this Research Report from Resurgent India to know everything about Corporate Debt Restructuring.
CDR( Corporate Debt Restructuring)
can be described as a proactive measure to not let companies land into a troublesome financial situation from where they cannot make a recovery. It can be explained as a voluntary and non-regulatory method for organizations to deal with their dues.
Emerging Trends in Corporate Finance - Corporate Debt Restructuring and Rece...Resurgent India
Under a corporate debt restructuring plan, the lenders give the company, the benefit of reduced interest rates and a moratorium period for repayment, and in some cases, lender even sacrifice a part of the principal amount.
KINDS OF DEBENTURES
CHARACTERISTICS OF DEBENTURES
Rules and Guidelines on Debentures
A debenture is the most important instrument and method of raising the loan capital by the company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital.
Brief overview of Debentures & Bonds and Term Loans.
A project given to our class group for the subject Corporate Finance. Hope it helps.
Contact for additional information
www.facebook.com/Sahith1
ansahithkrishna@gmail.com
Financial statements are written records that convey the business activities and the financial performance of a company.
Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
Capital Market: Components & Functions of Capital Markets, Primary & Secondary Market Operations, Capital
Market Instruments - Preference Shares, Equity Shares, Non-voting Shares, Convertible Cumulative Debentures (CCD),
Fixed Deposits, Debentures and Bonds, Global Depository receipts, American Depository receipts, Global Debt
Instruments, Role of SEBI in Capital Market.
A Strategic Approach: GenAI in EducationPeter Windle
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This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
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The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
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Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
Revised schedule VI
1. The Companies Act, 1956
Read Section 211
Revised Schedule VI
M S Godbole & Co,
Chartered Accountants
2. Part I- Form of Balance Sheet
M S Godbole & Co,
Chartered Accountants
3. Shareholder’s Funds
Reserve
Share Share
and
Capital Warrants
Surplus
M S Godbole & Co,
Chartered Accountants
4. Share Capital
The number of shares issued, subscribed and fully
paid, and subscribed but not fully paid par value per
share.
Shares in respect of each class in the company held
by its holding company or its ultimate holding
company including shares held by or by subsidiaries
or associates of the holding company or the
ultimate holding company in aggregate;
• Shares in the company held by each shareholder
holding more than 5 percent shares specifying the
number of shares held , shares reserved for issue
under options and contracts/commitments for the
sale of shares/disinvestment, including the terms and
amounts
Other details M S Godbole & Co,
Chartered Accountants
5. Share application money
Share application money not exceeding the
issued capital and to the extent not
refundable shall be shown under the head
Equity and share application money to the
extent refundable i.e., the amount in excess
of subscription are not met, shall be
separately shown under ‘Other current
liabilities’
M S Godbole & Co,
Chartered Accountants
6. Share Application Money
Example
A company has a authorized capital of Rs 5 Lacs and
issued capital of Rs 4 Lacs on 1st April,2011.It receives
additional share application money to the extend of Rs
4 lacs on 25th April,2011.Under revised Schedule VI the
accounting entry would be
Bank A/c ….Dr 400000
To Share application money 100000
To Other Current Liability 300000
M S Godbole & Co,
Chartered Accountants
7. Share application money
The period for which the share application
money has been pending beyond the period
for allotment as mentioned in the document
inviting application for shares along with the
reason for such share application money
being pending shall be disclosed.
M S Godbole & Co,
Chartered Accountants
8. Reserves and Surpluses
Debit balance of statement of profit and
loss shall be shown as a negative figure
under the head ‘Surplus’. Similarly, the
balance of ‘Reserves and Surplus’, after
adjusting negative balance of surplus, if any,
shall be shown under the head
‘Reserves and Surplus’ even if the resulting
figure is in the negative
M S Godbole & Co,
Chartered Accountants
9. Operating Cycle
An operating cycle is the time between the
acquisition of assets for processing and their
realization in cash or cash equivalents.
Where the normal operating cycle cannot
be identified, it is assumed to have a
duration of 12 months.
M S Godbole & Co,
Chartered Accountants
10. Current and Non Current
Liabilities
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.
M S Godbole & Co,
Chartered Accountants
11. Non Current
Liabilities
Deferred Other
Long Term Long Term
Tax Long Term
Borrowings Provisions
Liabilities Liabilities
M S Godbole & Co,
Chartered Accountants
12. Long Term Borrowings
(i) Long-term borrowings shall be classified as:
(a)Bonds/debentures.
(b)Term loans from banks and other parties.
(c)Deferred payment liabilities.
(d)Deposits.
(e)Loans and advances from related parties.
(f)Other loans and advances
M S Godbole & Co,
Chartered Accountants
13. Long Term Borrowings Notes
1) Borrowings shall further be sub-classified as secured and
unsecured. Nature of security shall be specified separately
in each case.
2) Where loans have been guaranteed by directors or others,
the aggregate amount of such loans under each head shall
be disclosed.
3) Bonds/debentures (along with the rate of interest and
particulars of redemption or conversion, as the case may
be) shall be stated in descending order of maturity or
conversion, starting from farthest redemption or
conversion date, as the case may be. Where
bonds/debentures are redeemable by installments, the date
of maturity for this purpose must be reckoned as the date
on which the first installment becomes due.
M S Godbole & Co,
Chartered Accountants
14. Long Term Borrowings Notes
4) Particulars of any redeemed bonds/
debentures which the company has power to
reissue shall be disclosed.
5)Terms of repayment of term loans and other
loans shall be stated.
6) Period and amount of continuing default as
on the balance sheet date in repayment of
loans and interest, shall be specified
separately in each case.
M S Godbole & Co,
Chartered Accountants
16. Other Long Term liabilities
Trade payables
Others
M S Godbole & Co,
Chartered Accountants
17. Long Term Provisions
Provision for employee benefits.
Others
M S Godbole & Co,
Chartered Accountants
18. Current
Liabilities
Other Short-
Short Term Trade Current Term
Borrowings Payables Liabilities Provisions
M S Godbole & Co,
Chartered Accountants
19. Short term borrowings
Short-term borrowings shall be classified as:
– Loans repayable on demand from banks. from other parties.
– Loans and advances from related parties.
– Deposits.
– Other loans and advances (specify nature).
Borrowings shall further be sub-classified as secured and
unsecured. Nature of security shall be specified separately in
each case.
Where loans have been guaranteed by directors or others, the
aggregate amount of such loans under each head shall be
disclosed.
Period and amount of default as on the balance sheet date in
repayment of loans and interest, shall be specified separately in
each case.
M S Godbole & Co,
Chartered Accountants
21. Other Current Liabilities
Current maturities of long-term debt / finance
lease obligations
• Interest accrued and due / not due on
borrowings;
Income received in advance;
Unpaid dividends
Application money received for allotment of
securities and due for refund and interest
accrued thereon:
Refundable Share application money
M S Godbole & Co,
Chartered Accountants
24. Current and Non Current Asset
An asset shall be classified as current when it
satisfies any of the following criteria:
– 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 twelve months
after the reporting date; or
– 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
M S Godbole & Co,
Chartered Accountants
25. Fixed
Assets
Other Non Non
Current
Assets
Non Current
Investment
Current
Assets
Long Term
Deferred
Loans and
Tax Assets
Advances
M S Godbole & Co,
Chartered Accountants
26. Fixed Assets
i) Tangible Assets
ii) Intangible Assets
iii) Capital Work-in –progress
iv) Intangible assets under development
M S Godbole & Co,
Chartered Accountants
27. Tangible Assets
Land.
Buildings.
Plant and Equipment.
Furniture and Fixtures.
Vehicles.
Office equipment.
Others
M S Godbole & Co,
Chartered Accountants
28. Tangible Assets (IAS 16)
Assets under lease shall be separately
specified under each class of asset.
A reconciliation of the 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 and other
adjustments and the related depreciation and
impairment losses/reversals shall be disclosed
separately.
M S Godbole & Co,
Chartered Accountants
29. Tangible Assets
Where sums have been written off on a
reduction of capital or revaluation of assets or
where sums have been added on revaluation of
assets, every balance sheet subsequent to date of
such write-off, or addition shall show the
reduced or increased figures as applicable and
shall by way of a note also show the amount of
the reduction or increase as applicable together
with the date thereof for the first five years
subsequent to the date of such reduction or
increase.
M S Godbole & Co,
Chartered Accountants
30. Depreciation
M S Godbole & Co,
Chartered Accountants
31. Intangible assets (IAS 38)
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 franchise.
Others
M S Godbole & Co,
Chartered Accountants
32. Intangible assets
A reconciliation of the 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 and other
adjustments and the related amortization
and impairment losses/reversals shall be
disclosed separately.
M S Godbole & Co,
Chartered Accountants
33. Intangible assets
Where sums have been written off on a
reduction of capital or revaluation of assets or
where sums have been added on revaluation of
assets, every balance sheet subsequent to date of
such write-off, or addition shall show the reduced
or increased figures as applicable and shall by way
of a note also show the amount of the reduction
or increase as applicable together with the date
thereof for the first five years subsequent to the
date of such reduction or increase.
M S Godbole & Co,
Chartered Accountants
34. IFRS Taxonomy
The classification of Investments in IFRS
taxonomy is based on the Availability for sale
(AFS)and Held to maturity (HTM)
XBRL Taxonomy is a classification system that
can be considered as an electronic dictionary
for business and financial terms. It consists of a
delineation of all the business and financial
concepts along with their basic accounting and
XBRL properties as well as the
interrelationships amongst the concepts.
M S Godbole & Co,
Chartered Accountants
35. Non - Current Investment
Non-current investments shall be classified as
trade investments and other investments and
further classified as:
Investment property (IAS 40)
Investments in preference shares
Investments in Government or trust securities;
Investments in debentures or bonds /Mutual
funds/ Equity
Investments in partnership firms
Other non-current investments
M S Godbole & Co,
Chartered Accountants
36. Non - Current Investment
Meaning of subsidiaries, associates and joint
Ventures to be taken as per accounting
standards ( IAS 27)
Subsidiaries
Where control exists i.e. operating and
financial control
Associates
Where significant influence exists
Joint venture
Where common control exists
M S Godbole & Co,
Chartered Accountants
38. Long Term Loans and Advances
Long-term loans and advances shall be classified as:
Capital Advances ( advances against capital
subscription)
Security Deposits;
Loans and advances to related parties
Other loans and advances
The above shall also be separately sub-classified
as:
Secured, considered good;
Unsecured, considered good;
Doubtful
M S Godbole & Co,
Chartered Accountants
39. Other Non – Current Assets
Other non-current assets shall be classified as:
Long Term Trade Receivables (including trade
receivables on deferred credit terms);
Others
Long term Trade Receivables, shall be sub-
classified as:
Secured, considered good;
Unsecured considered good;
Doubtful
M S Godbole & Co,
Chartered Accountants
40. Other Non – Current Assets
Debts due by directors or other officers of
the 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
M S Godbole & Co,
Chartered Accountants
41. Current Assets
Cash and Short Term Other
Current Trade
Inventories Cash Loans and Current
Investment Receivables
Equivalents Advances Assets
M S Godbole & Co,
Chartered Accountants
42. Current Investment
Current investments shall be classified as:
Investments in Equity Instruments /Mutual
funds/debentures or bonds /Preference
shares
Investments in Government or trust
securities;
Investments in partnership firms
Other non-current investments
M S Godbole & Co,
Chartered Accountants
44. Inventories
Raw materials;
Work-in-progress;
Finished goods;
Stock-in-trade (in respect of goods acquired for
trading);
Stores and spares;
Loose tools;
Others (specify nature).
Goods-in-transit shall be disclosed under the
relevant sub-head of inventories.
Mode of valuation shall be stated
M S Godbole & Co,
Chartered Accountants
45. Trade Receivables
Aggregate amount of Trade Receivables
outstanding for a period exceeding six months
from the date they are due for payment should
be separately stated.
Trade receivables shall be sub-classified as:
Secured, considered good;
Unsecured considered good;
Doubtful.
Allowance for bad and doubtful debts shall be
disclosed under the relevant heads separately.
M S Godbole & Co,
Chartered Accountants
46. Trade Receivables
Debts due by directors or other officers of
the 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.
M S Godbole & Co,
Chartered Accountants
47. Short -Term Loans and Advances
Short-term loans and advances shall be
classified as:
Loans and advances to related parties
(giving details thereof);
Others (specify nature).
The above shall also be sub-classified as:
Secured, considered good;
Unsecured, considered good;
Doubtful.
M S Godbole & Co,
Chartered Accountants
48. Short -Term Loans and
Advances
Loans and advances due by directors or
other officers of the company or any of them
either severally or jointly with any other
person or amounts due by firms or private
companies respectively in which any director
is a partner or a director or a member shall
be separately stated.
M S Godbole & Co,
Chartered Accountants
49. Other Current Assets
This is an all-inclusive heading, which
incorporates current assets that do not fit
into any other asset categories
M S Godbole & Co,
Chartered Accountants
50. Contingent liabilities and
commitments
Contingent liabilities and commitments (to the extent not
provided for)
Contingent liabilities shall be classified as:
Claims against the company not acknowledged as debt;
Guarantees;
Other money for which the company is contingently liable
Commitments shall be classified as:
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
M S Godbole & Co,
Chartered Accountants
51. Other disclosures
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, there shall be indicated by way of
note how such unutilized amounts have been used
or invested.
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, shall be stated
M S Godbole & Co,
Chartered Accountants
52. Part II Profit and Loss Account
Debit balance of P & L shall be shown as
negative figure under surplus instead of
presenting on the asset side.
Profit or Loss on discontinued Business..
where the cash flows of an asset are likely to
come from disposal rather than from
continuing use of the asset.
( IFRS 5)
M S Godbole & Co,
Chartered Accountants
53. Rounding Off
Depending on the turnover of the entity the figures
appearing in the financial statements may be rounded
off as below:
Turnover Rounding off
i) Less then one hundred crore To the nearest hundreds,
rupees thousands, lakhs or millions, or
decimals thereof.
ii) One hundred crore rupees or To the nearest , lakhs, millions or
more crores, or decimals thereof
M S Godbole & Co,
Chartered Accountants
54. First Financial Statements
Except in case of first financial statements
the comparatives for the immediately
preceding reporting period should also be
given.
M S Godbole & Co,
Chartered Accountants
55. Conspicuously Dropped
Details of managerial remuneration and
computation of profits under sec 349,350
Licensed Capacity, installed capacity and
actual production
Balance sheet abstract – Done away
completely
M S Godbole & Co,
Chartered Accountants
56. General Notes
1. Notes to accounts shall contain information
in addition to that presented in the Financial
Statements and shall provide where required
(a) narrative descriptions or disaggregation's
of items recognized in those statements and
(b) information about items that do not
qualify for recognition in those statements.
M S Godbole & Co,
Chartered Accountants
57. General Notes
2. For the purpose of this Schedule, the terms used herein
shall be as per the applicable Accounting Standards.
3. Part I and Part II of Schedule sets out the minimum
requirements for disclosure on the face of the Balance
Sheet, and the Statement of Profit and Loss and Notes.
Line items, sub-line items and sub-totals shall be
presented as an addition or substitution on the face of the
Financial Statements when such presentation is relevant
to an understanding of the company’s financial position or
performance or to cater to industry/sector-specific
disclosure requirements or when required for compliance
with the amendments to the Companies Act or under the
Accounting Standards.
M S Godbole & Co,
Chartered Accountants
58. General Notes
4. Any item of Income or Expenditure
which exceeds one percent of the
revenue from operations or Rs100000
whichever is higher should be disclosed
in notes to accounts.
5. Dividend declared has to be merely
disclosed in notes of accounts and not to
be provided in books of accounts
M S Godbole & Co, Chartered Accountants