REVISED SCHEDULE VI BALANCE SHEET

Group members : M1257 Vineeth Nair M1258 Vipula Gangurde M1259 Vishal Shivkar M1260 Vishwanathan Iyer

Introduction

On 28th February 2011, MCA replaced the existing Schedule VI of the Companies Act, 1956 with the revised one. The Revised Schedule VI was applicable to all companies for the financial year commencing from 01st April 2011. Need:

To harmonize the disclosure requirements with the Accounting Standards To converge with the new reforms

Not Applicable to:

companies referred in the provision to Section 211 (1) and

Key features

Gives prominence to Accounting Standards (AS)

Balance Sheet to be presented in vertical format only Revised Schedule VI has eliminated the concept of schedule and such information is now to be furnished in the notes to accounts

Key features

Title of Balance Sheet

Source of Funds now is Equity and Liabilities Application of Funds now is Assets

All Assets and liabilities classified into current and non-current assets Shareholder holding more than 5% shares now needs to be disclosed

Particulars

Note No.

Figures as at the end of the current reporting period

Figures as at the end of the previous reporting period

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

New Line Item New Line Item

(4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions

TOTAL

Particulars

Note No.

Figures as at the end of the current reporting period

Figures as at the end of the previous reporting period

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) (b) (c) (d) (e) (f) Current investments Inventories Trade receivables Cash and cash equivalents Short-term loans and advances Other current assets

TOTAL

Key features

Presentation of figures: Where Turnover: a. < 100 crores b. > 100 crores

Unit measurement should be used uniformly in the Financial Statements.

Any item under which income or expenses exceed 1% of revenue from operations or ` 1,00,000 whichever is higher,

COMPARITIVE ANALYSIS BETWEEN OLD SCHEDULE VI AND REVISED SCHEDULE VI

Particulars Authority Old Schedule VI Provisions of Schedule VI will prevail over Accounting Standards Both horizontal and vertical form were allowed No format specified for Profit and Loss Account Sources of funds and Application of funds Opening surplus, proposed dividend and transfer to/ from reserves were shown in Profit and Loss Appropriation Account Revised Schedule VI Provisions of Accounting Standards will prevail over Schedule VI Only vertical form of Balance Sheet has been specified in the revised Schedule VI Form of Profit and Loss Account specified under Part II Equities and Liabilities and Assets Transfer from/ to reserves to be shown under the heading Reserves & Surplus only. No requirement of separate Profit and Loss Appropriation Account.

Form of Balance Sheet Form of Profit and Loss Account Headings in Balance Sheet Profit and Loss Appropriation Account

Particulars Proposed Dividend

Old Schedule VI Proposed Dividend required to be provided for

Revised Schedule VI Proposed Dividend to be disclosed in notes

Quantitative Details

Quantitative details of Raw materials, purchases, stocks and turnover to be given for each class of goods. Also licensed and installed capacity and production quantity to be given for manufacturing companies

No quantitative details required. Limited requirements for disclosure for CIF and FOB values etc.

Particulars Share Capital

Old Schedule VI No requirement to disclose separately bonus shares issued during last 5 years. Also no requirement for details of shareholders holding more than 5% of shares

Revised Schedule VI In addition to the disclosure requirements of old Schedule VI following additional disclosures are also required Number of bonus shares/ shares allotted without payment being received in cash/ shares bought back during last 5 years Names and number of shares held by shareholders holding more than 5 percent of total shares

Particulars Net Working Capital

Old Schedule VI Current assets & Liabilities are shown together under application of funds. The net working capital appears on balance sheet.

Revised Schedule VI Assets & Liabilities are to be bifurcated in to current & Noncurrent and to be shown separately. Hence, net working capital will not be appearing in Balance sheet.

Fixed Assets

There was no bifurcation required in to tangible & intangible assets. Capital advances used to be shown under the Head Capital Work in Progress under Fixed Assets

Fixed assets to be shown under noncurrent assets and have to be bifurcated in to Tangible & intangible assets. Capital advances to be shown under the head Long term Loans and Advances

Particulars Borrowings

Old Schedule VI Short term & long term borrowings are grouped together under the head Loan funds subhead Secured / Unsecured

Revised Schedule VI Long term borrowings to be shown under non-current liabilities and short term 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 separately specified.

Deposits

Lease deposits are part of loans & advances

Lease deposits to be disclosed as long term loans & advances under the head non-current assets

Particulars Deferred Tax Assets / Liabilities

Old Schedule VI

Revised Schedule VI

Deferred Tax assets / liabilities Deferred Tax assets / liabilities to be to be disclosed separately on the disclosed under non-current assets / liabilities as the case may be. face of Balance Sheet.

Sundry Debtors

Debtors outstanding for more than six months from invoice date to be shown separately

Debtors outstanding for more than six months from the date they became due to be shown separately.

Profit & Loss (Debit Balance)

P&L debit balance to be separately disclosed in the Balance Sheet.

Debit balance of Profit and Loss Account to be shown as negative figure under the head Surplus. Therefore, Reserve & Surplus can have a negative balance

Particulars Other current liabilities

Old Schedule VI

Revised Schedule VI

No specific mention for separate Current maturities of long term debt disclosure of Current maturities to be disclosed under other current of long term debt liabilities.
No specific mention for separate Current maturities of finance lease disclosure of Current maturities obligation to be disclosed. of finance lease obligation

Separate line item Disclosure criteria

Any item under which expense exceeds one per cent of the total revenue of the company or Rs. 5,000 which ever is higher; shall be disclosed separately

Any item of income / expense which exceeds one per cent of the revenue from operations or Rs. 1,00,000, which ever is higher; to be disclosed separately

Particulars

Old Schedule VI

Revised Schedule VI

Purchases

The purchase made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities thereof.

Goods traded in by the company to be disclosed in broad heads in notes.

Disclosure of quantitative details of goods is diluted. Goods-in-transit to be separately disclosed

TDS amount on Interest, royalty received

TDS amount was required to be shown for Interest income etc.

No requirement of disclosing TDS amounts separately

Managerial Remuneration and Commission

Payment to directors and detailed calculation under section 198 was required to be disclosed

No disclosure requirements for Managerial Remuneration

Particulars ESOP expenses

Old Schedule VI No requirement to show separately as part of Employee Benefits expense

Revised Schedule VI Expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP) to be shown separately as part of Employee Benefits expense

Part IIIInterpretation

Terms provision, reserve, capital reserve, quoted investment etc. were defined

No such specific definitions.

Part IV- Balance Sheet Abstract

Details of company registration No such requirement. number, capital raised, Balance Sheet details, products etc. were required to be attached with financials