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Summary of IVth Schedule Companies Ordinance 1984 PDF
Summary of IVth Schedule Companies Ordinance 1984 PDF
FOURTH SCHEDULE
REQUIREMENTS AS TO BALANCE SHEET
FIXED ASSETS:
Tangible:
(a) Free-hold land
(b) Lease-hold land
(c) Buildings on free-hold land
(d) Buildings on lease-hold land
(e) Plant and machinery
(f) Furniture and fittings
(g) Vehicles
(h) Capital work-in-progress (including significant item wise details), and
(i) Others
Intangible:
(a) Goodwill
(b) Patents, copyrights, trade-marks and designs; and
(c) Others
Additional Disclosures:
Under each sub-head, other than Capital W.I.P., the following shall be stated:
(i)
Original cost or valuation,
(ii) Additions and/or deductions,
(iii) Aggregate amount written off up to balance sheet date by way of depreciation,
amortisation and/or diminution in value.
Fixed Assets that are subject of Finance Lease shall be separately identified by each
major class of asset.
Additional Disclosures:
The mode of valuation of investments, e.g., cost or market value, shall be stated
separately.
Provisions made for diminution in the value of investments and in respect of losses of
subsidiary companies shall be shown as deduction from the gross amounts of the respective sub-head.
Loans and advances due for payment after a period of 12 months from the date of balance
sheet shall be under the following heading separately:
(i)
Outstanding for the period exceeding 3 years, and
(ii) Others.
Additional Disclosures:
In case of deferred costs, each of the items listed shall be stated separately.
In respect of each material item of prepayments and deferred cost, the amount and the basis of
amortisation or writing off.
In respect of each item of deferred costs, the reasons for carrying forward such costs shall be
stated.
Deferred costs shall be written off during a period not exceeding five years commencing from the
financial year in which the costs were incurred.
CURRENT ASSETS:
(a) Stores and spares (separately if possible);
(b) Loose tools;
(c) Stock-in-trade:
Raw materials,
Work-in-progress,
Other stocks.
(d) Trade debts:
(e) Loans and advances due for repayment within the period of 12 months from
the date of balance sheet, showing separately:
Cash in hand,
Cash in transit,
Cast at bank.
Additional Disclosures:
In case of (a) (b) and (c), the following shall be stated:
(i)
Basis of valuation.
(ii) Method of determining the Cost or NRV, e.g., average cost, FIFO, or LIFO.
(iii) If there is any departure from the recognized accounting principles, the reasons shall also be
stated along with financial impact.
In case of (d), (e) and (j), the following particulars shall be stated separately:
(i)
The aggregate amount due by directors, chief executive, managing agents and executives of the
company;
(ii) The aggregate amount due by associated undertakings, controlled firms and managed modarabas
[names to be specified in each case];
(iii) The maximum amount of debts under each of the preceding items (i) and (ii), at any time since
the date of the previous balance sheet. Such maximum amounts to be calculated by reference to
month-end balance.
In case of (h), same information, as far as applicable, shall be disclosed as specified under Long
Term Investments.
Provision, if any, made for diminution in the value of or loss in respect of any current asset shall
be shown as deduction from the gross amount of the respective assets.
If in the opinion of the directors any of the current assets has a value less than the carrying
amount, a disclosure of the fact shall be made that the directors are of that opinion together with their
estimates of the realisable value and the reasons for assigning higher values in the balance sheet.
(vi)
(ii)
Revenue Reserves:
General Reserve,
Dividend Equalisation Reserve,
Other Reserves created out of profits, and
Un-appropriated profits.
Additional Disclosures:
Any addition to or deduction from each item of reserves shall be shown in the balance sheet under
the respective items.
Accumulated losses or adverse balance of Profit and Loss Account shall be shown as deduction
from Capital and Reserves.
Particulars of any option on unissued shares, such as amount of option class of shares, issue price
period during which option is exercisable, etc.
In the case of redeemable preference shares, the terms of redemption or conversion.
In the case of subsidiary companies the number of shares of each class held by the holding
company.
Where circumstances permit, authorised, issued, subscribed and paid up capital or any two or more
of them may be shown as one item.
REDEEMABLE CAPITAL:
The finance obtained by issue of, or representing redeemable capital shall be
distinguished between(i) Secured Participatory redeemable capital;
(ii) Unsecured Participatory redeemable capital;
(iii) Secured Other redeemable capital; and
Additional Disclosures:
Under each class, the following shall be shown:
(i)
Face value or nominal value,
(ii) Nature of instrument evidencing investment of holder in such capital,
(iii) All material terms and conditions of the agreement for the issue, including:
Consideration received or receivable,
Mode or basis of repayment or redemption stating the purchase price or mark up amount to be
repaid,
Arrangement for sharing profit and loss,
Provision for creation of participatory reserve by the company,
The rights of the holders to convert their outstanding balance of such capital into ordinary shares
and the event in which they can exercise their rights,
The details of event of defaults in payments,
Where any part of redeemable capital is secured, it shall disclose the fact that it is so secured,
together with a statement of assets upon which it is secured.
Secured, together with a statement of the assets upon which they are
secured, and
Unsecured.
(i)
(ii)
Secured, together with a statement of assets upon which they are secured;
and
Unsecured.
DEFERRED LIABILITIES:
Deferred liabilities shall be shown distinguished as follows:
(a)
(b)
(c)
For taxation;
For pension, gratuity and other staff benefit schemes;
For other deferred liabilities showing separately the material items.
Additional Disclosures:
Where any of the deferred liabilities are secured, the fact shall be disclosed that the liabilities are
so secured, together with a statement of the assets, upon which they are secured.
Where any deferred liability is represented by accumulations which are to be invested in any
specific manner or kept in a special deposit or account, the same shall be shown separately indicating
the mode in which it is invested, deposited or kept.
Where any liability has not been fully provided for, the extent to which it has not been provided
for together with the reasons thereof shall be disclosed.
From customers,
From employees, and
From others.
CURRENT LIABILITIES:
Current liabilities shall be classified under the following sub-heads:
(a)
(b)
Current portion of long-term liabilities;
(c)
Secured and Unsecured Short-term running finance utilised under
mark-up arrangements alongwith statement of assets upon which it is secured;
(d)
Current portion of aggregate amount of liabilities relating to the
assets subject to finance lease;
(e)
Deposits, (stating separately those repayable on demand and others
alongwith rate of interest payable thereon);
(f)
Creditors;
(g)
Accrued liabilities;
(h)
Bills payable;
(i)
Advance payments and unexpired discounts;
(j)
Interest accrued on secured loans;
(k)
Interest accrued on unsecured loans;
(l)
Profit, return or mark-up accrued / proposed on each class of
Redeemable Capital;
(m)
Other liabilities, e.g., unclaimed dividends, unpaid dividends, etc.;
(n)
Provision for taxation, showing separately excise duties, custom duties,
sales tax, income tax, etc.;
(o)
Proposed dividend; and
(p)
Other provisions and accruals for contingencies.
(i)
(ii)
(iii)
(d)
(e)
(f)
4.
Income arising from Redeemable Capital, showing separately
the income from each class of such capital;
5.
Income by way of Interest on Loans and Advances, and
Other Interest;
6.
7.
8.
9.
10.
Other Income, showing separately every material item and the
nature of each such item.
Purchases of:
(a) Raw materials and components; and
(b) Finished products.
or
1.
2.
(C) EXPENSES:
1. Stores and spare parts consumed;
2. Fuel and power;
3. Salaries and wages, including:
(i)
(ii)
(iii)
4.
5.
6.
7.
Bonus,
Contribution to provident fund and other funds, and
Expenses on staff welfare.
(F) DEPRECIATION:
(a) The amount provided for depreciation, renewals or diminution in the value of
fixed assets;
(b) If such provision is not made by means of a charge for depreciation, the method
adopted for making such provision shall be disclosed;
(c) Where such provision is made by means of a charge for depreciation the
following shall be shown under each sub-head of Fixed Assets side of Balance
Sheet:
(i)
(ii)
(iii)
(iv)
(d) Where no such provision has been made, the following shall be disclosed:
(i)
The reasons for not making it,
(ii)
The amount of depreciation which should have been provided, and
(iii)
The quantum of arrears of depreciation, if any, shall be disclosed.
(G):
1. Share of profit of holders of Redeemable Capital distinguishing the amount
paid and that payable in respect of each class of such capital;
2. Amount of interest on borrowings, showing separately the amount of interest
on:
(i)
(ii)
(iii)
(iv)
Companys debentures,
Other long-term loans,
Short-term loans, and
Showing by way of a note the amount of interest on borrowings from:
6. Bad debts written off, distinguishing between Trade Debts and Other Debts;
7. Provision for doubtful debts or bad debts, distinguishing between Trade Debts
and Other Debts;
8. Provision for diminution in the value of investments;
9. Loss or expenses arising from Unusual Items and Provisions therefor;
10. Loss or expenses arising from Prior Period Items and Provisions therefor;
11. Provision for losses of subsidiaries, controlled firms and associated
undertakings;
12. Taxation:
(i) Provision for taxation on income, capital gains and other taxes, showing
separately:
Provision for tax liability in respect of the profit of the financial
year, and
Provision for tax liability deferred due to timing differences.
(ii) Provision for deferred liability for taxation on income for the financial
year may exclude the tax effects of certain timing differences when there is
reasonable evidence that these timing differences will not reverse for some
considerable period (at least three years) ahead. There should also be no
indication that after this period these timing differences are likely to reverse;
(iii) Where provision for taxation in respect of the profits of the period is
reduced by the writing back of a part or the whole of the provision for
deferred liability made in previous periods the amount written back shall be
shown as deduction from the gross charge for taxation; and
13. Other Provisions for meeting specific liabilities, contingencies or commitments
(material items to be shown separately).
(H) APPROPRIATIONS:
1. Proposed transfers to reserves;
2. Proposed dividends.
Additional Disclosures:
The profit and loss arising from hedge and forward contracts, trading in futures and badla
(contango and backwardation and other transactions of a similar nature, carried forward or completed
by meeting the difference and not resulting in actual purchase or sale of stock-in-trade shall be shown
separately in the profit and loss account.
There shall be stated by way of a note the respective amounts included in item (G) (d) and (e)
above:
(i)
Debts due by the directors, chief executive, managing agents and executives of the
company; and
(ii)
Fees;
(ii)
Managerial remuneration;
(iii)
(iv)
(v)
(vi)
Commission indicating the nature thereof and the basis on which such commission is
payable;
(vii) Other perquisites and benefits in cash or in kind stating their nature and, where practicable,
their approximate money values; and
(viii) The amounts, if material, by which any items shown above are affected by any change in an
accounting policy.
(b)
auction, made to:
o Chief executive, or
o A director, or
o A managing agent, or
o An executive, or
o A shareholder holding not less than ten percent of the voting shares of the company, or
o Any associated undertaking, irrespective of the value of the assets, and
o Any other person, if the book value of the asset or assets exceeds in the aggregate Rs.
5,000.
The following shall be shown by way of a note:
(i)
(ii)
(iii)
(iv)
Sale price and the mode of disposal (e.g., by tender or negotiation), and
(v)
The following information shall be disclosed in respect of transactions with associated undertaking
showing separately the aggregate amount of:
(i)
(ii) Brokerage or discount or commission together with the nature and the basis on which
such brokerage discount or commission is payable;
(iii)
(iv)
The profit and loss account shall be so drawn up as to disclose separately the manufacturing,
trading and operating results.
In the case of manufacturing concern, the cost of goods manufactured shall also be shown.
Where an undertaking has more than one line (segment) of business the working results of each
such line of business should be separately given provided the turnover of such line of business exceeds
20% of the total turnover of the company.
Value of items exported during the financial year shall also be shown provided such value exceeds
20% of total turnover of the company.
Balance Sheet
2007
Rs.
(000)
2006
Rs.
(000)
1.
2.
,
,
,
,
,
,
LONG-TERM INVESTMENTS
3.
4.
LONG-TERM DEPOSITS,
PREPAYMENTS AND DEFERRED COSTS
5.
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Note
FIXED ASSETS:
Tangible
Intangible
Total Fixed Assets
CURRENT ASSETS:
Stores and spares
Loose tools
Stock-in-trade
Trade debts
Loans and advances
Trade deposits and short-term prepayments and
current account balances with statutory
authorities
Bills receivable
Marketable securities
Interest accrued or outstanding
Other receivables
Tax refunds due from Government
Cash and bank balances
Total Current Assets
Total Assets
6.
7.
8.
9.
10.
11.
12.
13.
14.
2007
Rs.
(000)
2006
Rs.
(000)
SHARE CAPITAL:
Authorised share capital
15.
16.
RESERVES
17.
,
,
,
,
18.
REDEEMABLE CAPITAL
19.
20.
21.
,
DEFERRED LIABILITIES
22.
LONG-TERM DEPOSITS
23.
24.
25.
26.
,
,
,
,
,
,
31.
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
32.
33.
,
,
,
,
CURRENT LIABILITIES:
Short-term loans
Current portion of long-term liabilities
Short-term running finance under mark-up
arrangements
Current portion of liabilities relating to the assets
subject to finance lease
Creditors
Accrued liabilities
Bills payable
Advance payments and unexpired discounts
Interest accrued on secured loans
Interest accrued on unsecured loans
Profit, return or mark-up proposed on
redeemable capital
Other liabilities
Provision for taxation
27.
28.
29.
30.
Proposed dividend
Other provisions and accruals for contingencies
Total Current Liabilities
Total Shareholders Capital and Liabilities
CONTINGENCIES AND COMMITMENTS
34.
35.
,
,
,
,
,
,
,
,