Revised Schedule Vi by Krupa
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REVISED SCHEDULE VI
KRUPA THAKKER
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HISTORY
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In 1960 , Companies Act prescribed the form &contents of Balance Sheet & Profit /Loss a/c thatevery company should report as set out inSchedule VI
It also prescribed Notes detailing generalinstruction for preparation of B/s
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HOW IS IT IN OTHER COUNTRIES
In India, the format of financial statements isprescribed under Schedule VI to the Companies
Act, 1956
IAS 1 provides general principles forpresentation of financial statements
UK Companies Act 2006 also lays down statutoryformat of financial statements
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EFFECTIVE DATE OFREVISEDSCHEDULEVI
Financial year commencing on or after 1stApril,2011,
Vide S.O. No. 447(E), dated 28th February, 2011
Applies to all companies following non-converged
Indian Accounting Standards
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PURPOSEOF REVISION
It is an initiative towards convergence to IFRS
It facilitates better presentation, disclosures is
intended to be more transparent and organizedfor the users of financial statements
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KEY FEATURES
Presentation Classification of assets, liabilities& provisions
based on liquidity rather than nature
Classification of expenses based on functionrather than nature Prominence to Accounting Standards.
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PART I FORMOF BALANCE SHEET
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DETAILS OF SHARE CAPITAL
Reconciliation of the number of shares outstanding atthe beginning and at the end of the reporting period
Shares in the company held by each shareholder
holding more than 5 percent shares specifying thenumber of shares held;
Rights, preferences & restrictions on each class of
shares including restrictions on the distribution ofdividends & repayment of capital to be disclosed
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RESERVES & SURPLUS
Reserves and Surplus shall be classified as: Capital Reserves ;Capital Redemption Reserve;
Securities Premium Reserve; Debenture RedemptionReserve; Revaluation Reserve; Share Options Outstanding
Account; Other Reserves(specify the nature and purposeof each reserve and the amount in respect thereof); Surplusi.e. balance in Statement of Profit & Loss
Debit balance of Profit and Loss Account to be shown as
negative figure in Surplus
Reserve and Surplus balance can be negative
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LONG TERM BORROWINGS
Bonds/debentures. Term loans from banks from other parties. Deferred payment liabilities, Deposits. Loans and advances from related parties.
Long term maturities of finance lease obligations Other loans and advances (specify nature).
The above is further classified into Secured &Unsecured
Period and amount of default as on the balance
sheet date in repayment of loans and interest, shall
be specified separately in each case
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OTHER LONG TERM LIABILITIES &PROVISIONS
Other Long term Liabilities shall be classified as: Trade payables Others
Long-term provisions shall be classified as: Provision for employee benefits. Others (specify nature).
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SHORT TERM BORROWINGS
Short-term borrowings shall be classified as: Loans repayable on demand from banks, from otherparties. Loans and advances from related parties, Deposits.Other loans and advances (specify nature).
Borrowings shall further be sub-classified as securedand unsecured.
Where loans have been guaranteed by directors orothers, the aggregate amount of such loans under
each head shall be disclosed.
Period and amount of default as on the balancesheet date in repayment of loans and interest,shall be specified separately in each case
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OTHER CURRENT LIABILITIES
Current maturities of long-term debt;
Current maturities of finance lease obligations;
Interest accrued but not due on borrowings;
Interest accrued and due on borrowings;
Income received in advance; Unpaid dividends
Application money received for allotment of securities anddue for refund and interest accrued thereon
Unpaid matured deposits and interest accrued thereon Unpaid matured debentures and interest accrued thereon
Other payables (specify nature);
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SHARE APPLICATION MONEY
Includes advances towards allotment of sharecapital
Amount in excess of subscription or in case therequirements of minimum subscription are notmet, shall be separately shown under thercurrent Liabilities
Disclosure of the period for which the shareapplication money has been pending beyond the
period for allotment with reason
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FIXED ASSETS Tangible assets Land & Buildings.
Plant and Equipment. Furniture and Fixtures. Vehicles. Office equipment. Others (specify nature).
Intangible Assets 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 (specify nature).
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NON CURRENT INVESTMENTS
Non-current investments shall be classified as tradeinvestments and other investments and furtherclassified as: Investment property;
Investments in Equity Instruments; Investments in preference shares Investments in Government or trust securities; Investments in debentures or bonds;
Investments in Mutual Funds; Investments in partnership firms Other non-current investments (specify nature)
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LONG TERM LOANS & ADVANCES Capital Advances;
Security Deposits; Loans and advances to related parties (giving details
thereof);
Other loans and advances (specify nature).
The above shall also be separately sub-classified as: Secured, considered good;
Unsecured, considered good;
Doubtful
Allowance for bad and doubtful loans and advancesshall be disclosed under the relevant heads separately
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OTHER NON CURRENT ASSETS
Other non-current assets shall be classified as: Long Term Trade Receivables (including trade
receivables on deferred credit terms); Others (specify nature)
Long term Trade Receivables, shall be sub-classified as:
Secured, considered good; Unsecured considered good; Doubtful
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CURRENT INVESTMENTS
Current investments shall be classified as: Investments in Equity Instruments; Investments in preference shares Investments in Government or trust securities; Investments in debentures or bonds; Investments in Mutual Funds; Investments in partnership firms
Other non-current investments (specify nature)
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INVENTORIES To be classified as
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 therelevant sub-head of inventories.
Mode of valuation shall be stated.
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TRADE RECEIVABLES
Trade receivables shall be sub-classified as: Secured, considered good; Unsecured considered good;
Doubtful. 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 ora member should be separately stated.
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CASH & CASH EQUIVALENT
Cash and cash equivalents shall be classified as: Balances with banks; Cheques, drafts on hand; Cash on hand; Others (specify nature). Repatriation restrictions, if any, in respect of
cash and bank balances shall be separately
stated.
Bank deposits with more than 12 months
maturity shall be disclosed separately.
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SHORT TERM LOANS & ADVANCES To 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.Other current assets
This is an all-inclusive heading, whichincorporates current assets that do not fit intoany other asset categories.
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CONTIGENT LIABILITIES &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 contingentlyliable
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 (specify nature).
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OTHER DISCLOSURES
Proposed dividend on equity & preference shares& amount per share shall be disclosed separately
End Use of unutilized amount in respect of issueof securities made for specific purpose
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PART II FORMOF
STATEMENT OF PROFIT AND LOSS
Extra ordinary items arethose that arise other thanfrom ordinary activity ofthe company
Exceptional items arisefrom ordinary activity, butare not expected to berecurring
IAS 1, para 87 prohibitspresentation ofextraordinary items incomprehensive income
I. Revenue from operations
II.Other Income
III. Total Revenue (I +II)
IV. Expenses:
Cost of materials consumed
Purchase of Stock-in-Trade
Changes in inventories of finished goods, work-in-progressand Stock-in-Trade
Employee benefit expense
Financial costs
Depreciation and amortization expense
Other expenses
Total Expenses
V. Profit before exceptional and extraordinary items and tax(III - IV)
VI. Exceptional Items
VII. Profit before extraordinary items and tax (V - VI)
VIII. Extraordinary Items
IX. Profit before tax (VII - VIII)
X. Tax expense:
(1) Current tax
(2) Deferred tax
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FORMAT OF P/L ACCOUNT
Meaning of discontinuingoperations:
IFRS 5 deals with what is
discontinued operations where the cash flows of anasset are likely to come fromdisposal rather than fromcontinuing use of the asset
XI.Profit/(Loss) from the perid from continuingoperations (VII - VIII)
XII.Profit/(Loss) from discontinuing operations
XIII. Tax expense of discounting operations
XIV.Profit/(Loss) from Discontinuing operations (XII -XIII)
XV.Profit/(Loss) for the period (XI + XIV)
XVI.Earning per equity share:
(1) Basic
(2) Diluted
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ADDITIONAL DISCLOSURES FOR P/L Revenue from Operations (other than Finance Cos) Revenue from Sale of products Revenue from Sale of Services Other operating Revenue Less: Excise Duty
Revenue from Operations (Finance Cos) Interest Other Financial Services
Other Income
Interest Income Dividend Income Net gain / Loss on sale of investments Other non-operating income (net of expenses directly
attributable to such income)
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Employee Benefits Expense
Salaries and wages Contribution to provident and other funds Expense on Employees stock option scheme (ESOP)
and Employee stock purchase plan (ESPP) Staff welfare expenses
Other Expenses Consumption of stores and spare parts Power & Fuel Rent Repairs to Building / machinery Insurance Rates and Taxes, excluding taxes on income Miscellaneous expenses
A
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ADDITIONALINFORMATIONINCASEOFALL
COMPANIES
Any item of income or expenditure which
exceeds one per cent of the revenue fromoperations or Rs.1,00,000, whichever ishigher;
Adjustments to the carrying amount ofinvestments;
Net gain or loss on foreign currencytransaction and translation (other than
considered as finance cost);
Employee Benefits Expense
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Details of items of exceptional and extraordinary
nature; Prior period items;
Dividends from subsidiary companies.
Provisions for losses of subsidiary companies.
Payments to the auditor as Auditor for taxation matters, for company law matters, for management services, for other services, or reimbursement of expenses;
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P/LACCOUNTALSOTOSHOWBYWAYOFNOTES
Value of Imports calculated on CIF basis Earning & Expenditure in foreign currency on a/c
of royalty, know how , professional & consultancyfess etc.,
Total value of imports classified into indigenousand imported raw materials, spare parts andcomponents
Amount remitted during the year in foreigncurrencies on account of dividends
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ADDITIONALDISCLOSURESREQUIREDBYOTHERLAWS
Cash flow statement required in case of listedentities
Micro Small and Medium Enterprises lawduesto MSMEs
Additional disclosures required in case of NBFCsunder RBI directions
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CONSPICUOUSLYABSENT
Details of managerial remuneration andcomputation of profits under sec 349,350
Licensed Capacity, installed capacity and actualproduction
Balance sheet abstractcompletely goes away
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THANK YOU