The revised schedule VI of the Companies Act provides new guidelines for financial statement disclosures. Key changes include: 1. Assets and liabilities must now be classified as current or non-current rather than grouped together. 2. Additional line items are required, such as separate disclosure of share warrants and application money. 3. Components of assets and liabilities must be broken out, for example tangible and intangible fixed assets. 4. Treatment of certain items has changed, such as lease deposits now disclosed as non-current assets and losses shown under 'Surplus' rather than expenditures.

1. Mar 10, 2012
REVISED SCHEDULE VI OF
THE COMPANIES ACT, 1956
1 A Comparison with Old Schedule VI

2. EFFECTIVE DATE
Mar 10, 2012
 Financial Year commencing on or after 01-
April-2011
2

3. (REVISED SCHEDULE VI) V/S (ACT
& AS)
Mar 10, 2012
 ‘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.
 Disclosure as per Revised Schedule VI is in
addition to other accounting / disclosure
requirements.
3

4. CURRENT AND NON-CURRENT
ASSET
Mar 10, 2012
Current
(a) it is expected to be realized in, or is intended for sale
or consumption in, the company’s 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.” 4

5. CURRENT AND NON-CURRENT
LIABILITY
Mar 10, 2012
Current
(a) it is expected to be settled in the company’s 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
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All other liabilities shall be classified as non-current

6. Mar 10, 2012
NOMENCLATURE
EQUITY AND LIABILITIES
6

7. FORMAT OF BALANCE SHEET
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Horizontal or Vertical Vertical Only
7

8. EQUITY
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Earlier no separate disclosure on Money received against share
the face of balance sheet warrants
Earlier no separate disclosure on Share application money pending
the face of balance sheet allotment
8

9. DEPOSIT LIABILITY
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Deposit liability – no distinction To be disclosed under the long-
between long term and short term borrowings unless it has
term. current maturity in which case to
be grouped under short term
borrowings.
9

10. FIXED ASSETS
Mar 10, 2012
Old Schedule VI Revised Schedule VI
No bifurcation required into To be shown under non-current
tangible & intangible assets. assets and it has to be bifurcated
in to Tangible & intangible
assets.
Tangible
Intangible
CWIP
Intangible under development
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11. BORROWINGS
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Short term & long term Long term borrowings to be
borrowings are grouped together shown under non-current
under the head Loan funds sub- liabilities and short term
head Secured / Unsecured borrowings to be shown under
current liabilities with separate
disclosure of secured / unsecured
loans.
Period and amount of
continuing default as on the
balance sheet date in repayment
of loans and interest to be 11
separately specified

12. FINANCE LEASE OBLIGATION
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Included in current liabilities Included in Non-current
liabilities.
However, short term maturities
of Fin Lease obligation to be
grouped under current liabilities
only.
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13. DEPOSIT ASSET
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Lease deposits are part of loans Lease deposits to be disclosed as
& advances long term loans & advances
under the head non-current
assets unless they are of current
nature
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14. INVESTMENTS
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Both current & non-current Current and non-current
investments to be disclosed investments are to be disclosed
under the head investments separately under current assets
& non-current assets
respectively.
Investments carried at other
than cost should be separately
disclosed and the basis of its
valuation to be disclosed
14

15. LOANS & ADVANCES
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Loans & Advance are disclosed Loans & Advances to be broken
along with current assets up in long term & short term and
to be disclosed under non-current
& current assets respectively.
Loans & Advance to related
parties to be disclosed separately.
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16. NET WORKING CAPITAL
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Current assets & Liabilities are Assets & Liabilities are to be
Netted off and Net Working bifurcated in to current & Non-
Capital amount is shown current and to be shown
separately. Hence, net working
capital will not be appearing in
Balance sheet.
16

17. DEFERRED TAX ASSETS /
LIABILITIES
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Deferred Tax assets / liabilities Deferred Tax assets / liabilities
to be disclosed separately to be disclosed under non-current
assets / liabilities as the case
may be.
Not to be disclosed as current.
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18. CASH & BANK BALANCES
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Bank balance to be bifurcated in - Bank balances in relation to
scheduled banks & others 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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19. LOSS
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Debit balance in profit and loss To be shown as negative figure
account to be shown under the under the head Surplus.
head Miscellaneous expenditure Therefore, reserve & surplus
& losses. balance can go negative.
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20. SUNDRY CREDITORS
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Creditors to be broken up in to No mention of micro & small
micro & small suppliers and enterprise disclosure.
other creditors.
However, it is continued to be
disclosed under Micro, Small and
Medium Enterprises
Development (MSMED) Act,
2006.
20

21. OTHER CURRENT LIABILITIES
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Current maturities of long term Current maturities of long term
debt need not be disclosed on the debt to be disclosed under other
face separately. current liabilities.
Current maturities of finance Current maturities of finance
lease obligation need not be lease obligation to be disclosed
disclosed on the face separately. hereunder separately.
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22. Mar 10, 2012
NOMENCLATURE
“STATEMENT OF PROFIT AND LOSS”
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23. SEPARATE LINE ITEM
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Any item under which expense Any item of income / expense
exceeds one per cent of the total which exceeds one per cent of the
revenue of the company or Rs. revenue from operations or Rs.
5,000 which ever is higher; shall 1,00,000, which ever is higher; to
be disclosed separately be disclosed separately
23

24. REVENUES
Mar 10, 2012
Old Schedule VI Revised Schedule VI
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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25. PURCHASES AND CONSUMPTION
Mar 10, 2012
Old Schedule VI Revised Schedule VI
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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26. EMPLOYEE COMPENSATION
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Earlier not required separately Employee stock option expense to
be shown separately
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27. FINANCE COST
Mar 10, 2012
Old Schedule VI Revised Schedule VI
Interest Cost • Interest Expenses
• Company’s Debentures • Other borrowing costs
• On Fixed Loans • Gain / Loss on foreign currency
• Paid to Managing Director / translations / transactions
Manager (finance cost portion only – forex
fluctuation on interest paid in
foreign currency)
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28. Mar 10, 2012
OTHER CHANGES
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29. ROUNDING OFF
Mar 10, 2012
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 Turnover of Rs. 100 Crs or more -
but less than Rs. 500 Crs - R/off R/off to the nearest lakhs,
to the nearest Hundreds, millions or crores, or decimal
thousands, lakhs or millions or thereof
decimal thereof
Turnover of Rs. 500 Crs or more -
R/off to the nearest Hundreds,
thousands, lakhs, millions or 29
crores, or decimal thereof

30. COMPARATIVES
Mar 10, 2012
 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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31. INTERIM FINANCIAL REPORTING
Mar 10, 2012
Companies presenting Companies presenting
Condensed interim financial Complete set of financial
statements statements
Company need not comply with Company should comply with
Revised Schedule VI Revised Schedule VI
requirements requirements from Financial
year 2012-13 and onwards only.
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32. AUDITOR’S APPROACH -
SUGGESTED
Mar 10, 2012
 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.
 Make use of tailored procedures / disclosure 32
checklists to ensure complete disclosure.

33. TAKE AWAY
Mar 10, 2012
Current and Non-Current
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34. Mar 10, 2012
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35. Mar 10, 2012
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36. Mar 10, 2012
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37. Mar 10, 2012
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38. Mar 10, 2012
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