Revised Schedule VI

Overview on Revised Schedule VI
OVERVIEW ON REVISED SCHEDULE VI
Q ua l i ty s e rv ic e is n o t wha t yo u pu t i n to i t i ts wha t th e cl i en t g e ts out of i t
www.bakertillysinghi.com
Page 1
Private & Confidential

CONTENTS
APPLICABILITY ................................................................................................................................................................................... 3 AT A GLANCE ........................................................................................................................................................................................ 4 STRUCTURAL CHANGES BALANCE SHEET ........................................................................................................................ 5 REVISED FORMAT OF BALANCE SHEET ....................................................................................................................... 5 LIABILITIES NEW DISCLOSURE REQUIREMENTS ................................................................................................ 8 ASSETS NEW DISCLOSURE REQUIREMENTS ....................................................................................................... 11 OTHER ADDITIONAL DISCLOSURE REQUIREMENTS ......................................................................................... 15 MAJOR DISCLOSURES OMITTED UNDER REVISED SCHEDULE VI................................................................ 15 MAJOR DISCLOSURE REQUIREMENTS RETAINED UNDER REVISED SCHEDULE VI ........................... 16 STRUCTURAL CHANGES - PROFIT & LOSS ACCOUNT .................................................................................................. 17 FORMAT...................................................................................................................................................................................... 17 MAJOR CHANGES AT A GLANCE ..................................................................................................................................... 18 MAJOR DISCLOSURES OMITTED UNDER REVISED SCHEDULE VI................................................................ 21 MAJOR DISCLOSURE REQUIREMENTS RETAINED UNDER REVISED SCHEDULE VI ........................... 21 GOING FORWARD AND MAJOR CHALLENGES .................................................................................................................. 23 Disclaimer ....24
Page 2

APPLICABILITY
Vide notification S.O. 447 (E) dated 28.02.2011 read with amendment notification S.O. 653 (E) dated 30.3.2011, the revised schedule VI would be applicable for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 1-4-2011.
Page 3

AT A GLANCE
1. The privilege of having a balance sheet under horizontal or vertical format has been done away with. Option of only one format i.e vertical format is now available for preparation of the Balance Sheet. 2. Introduction of a new format for publishing profit & loss account. 3. Part III and part IV of the existing schedule VI has been done away with. 4. The disaggregation of information given in the Balance sheet and Profit Loss account now shall be disclosed in the notes to accounts instead of the schedule format as per existing schedule VI. 5. Various new disclosures have been added and few existing requirements have been removed. The additional disclosure requirements are more pertinent in case of balance sheet. The disclosure requirements in respect to Profit & Loss have been significantly reduced. 6. Under the new framework revised schedule VI will act as an additional requirement of disclosures along with the disclosure required by the Companies Act and the Accounting Standards. In other words the disclosure requirements of Notified Accounting Standards will prevail on the revised schedule VI disclosures where-ever there are conflicts. 7. Revised schedule VI gives the liberty of application of judgment in maintaining a balance between excessive details that may not assist the users of the financial statements and not providing too much important information as a result of too much aggregation. 8. Revised schedule VI disclosures are a major step towards convergence of International Financial Reporting Standard. 9. Revised schedule VI strives for a more transparent presentation of the Companys Financial. Focus more on the liquidity aspect of the assets and liabilities of the company. 10. Current and non-current classification has been brought into for presentation of assets and liabilities in the balance sheet which is largely in line with the fundamental of used under Ind-AS/ IFRS. The same would require classification of assets and liabilities to be segregated into their current and noncurrent portions. 11. Previous years figures need to be given in the revised format along with the current financials. 12. The definitions prescribed under Notified Accounting standard shall be used for the purpose of terms used in the revised schedule VI. 13. The limits of rounding off (on the basis of turnover) have been increased and the revised limits are as follows Turnover (i) Less than one hundred crores (ii) More than one hundred crores Rounding off To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. To the nearest lakhs, millions or crores, or decimals thereof.
Page 4

STRUCTURAL CHANGES BALANCE SHEET REVISED FORMAT OF BALANCE SHEET
NAME OF THE COMPANY BALANCE SHEET AS AT
Particulars
Note No.
Figures as at the end of Current reporting period
Figures as at the end of Previous reporting period
I (1) (a) (b) (c)
EQUITY AND LIABILITIES Shareholders funds Share capital Reserves and surplus Money received against share warrants Share application money pending allotment Non-current liabilities Long-term borrowings Deferred tax liabilities (Net) Other Long term liabilities Long-term provisions Current liabilities Short-term borrowings Trade payables Other current liabilities Short-term provisions TOTAL
XX XX XX
XX XX XX
(2) (3) (a) (b) (c) (d) (4) (a) (b) (c) (d)
XX
XX
XX XX XX XX
XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
Contd
Page 5

(II) (1) (a) (i) (ii) (iii) (iv) (b) (c) (d) (e) (2) (a) (b) (c) (d) (e) (f) ASSETS Non-current assets Fixed assets Tangible assets Intangible assets Capital work-in-progress Intangible assets under development Non-current investments Deferred tax assets (net) Long-term loans and advances Other non-current assets Current assets Current investments Inventories Trade receivables Cash and cash equivalents Short-term loans and advances Other current assets TOTAL
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX XX XX
XX XX XX XX XX XX XX
XX XX XX XX XX XX XX
Page 6

Guidelines given in the revised schedule VI regarding classification of assets and liabilities between current and non-current: 1. An asset shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be realized in, or is intended for sale or consumption in, the companys 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. All other assets shall be classified as non-current. 2. 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. 3. A liability shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the companys 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. All other liabilities shall be classified as non-current. 4. A receivable shall be classified as a trade receivable if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. 5. A payable shall be classified as a trade payable if it is in respect of the amount due on account of goods purchased or services received in the normal course of business.
Page 7

LIABILITIES NEW DISCLOSURE REQUIREMENTS 1. Share Capital
a. Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period b. The rights, preferences and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital c. Shares of each class 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. d. Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held. This clause requires number of shareholders holding more than 5 % shareholding and total number of shares hold by those shareholders. e. Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts
2. Shares Application money pending Allotment (including advance against share application money)
a. Exhaustive disclosure requirement in case of above now prescribed. For e.g. 1. Terms and conditions for issuance of shares 2. Amount of premium and period before which new shares need to be issued 3. Period of pendency of such allotment and reasons for such 4. That the company is having sufficient authorized capital to cover the share capital amount resulting from allotment of shares out of Share application money.
3. Reserves & Surplus

a. The balance of Reserves and Surplus, after adjusting negative balance of surplus (profit & loss account), if any, shall be shown under the head Reserves and Surplus even if the resulting figure is in the negative.
Page 8

Liabilities (except shareholders fund) are now required to be reported under current and non-current 4. Non-current Liabilities a. Format
1. 2. 3. 4. Long-term borrowings Deferred tax liabilities (Net) Other long term liabilities Long-term provisions
(Revised schedule VI prescribed further dis-aggregation of above line items)
b. Significant new disclosure requirements in case of:

1. Long term borrowings (i) Related parties transactions in case of long term loans and advances as a sub line item of long term borrowings. (ii) Terms of repayment of all loans now need to be stated (iii) Period and amount of continuing default as on the balance sheet date in repayment of loans and interest, to be specified separately in each case. 2. Other Long term liabilities (i) Trade payables now need to be bifurcated into current and non-current. Non-current part to appear here. 3. Long term provisions (i) Provision for employee benefits now to be classified under current and non-current. Non-current part to appear here. This calls for realignment of earlier years reporting figure also.
Page 9

5. Current Liabilities a. Format
1. 2. 3. 4. Short-term borrowings Trade payables Other current liabilities Short-term provisions
(Revised schedule VI prescribes further dis-aggregation of above line items)
b. Significant additional requirements in case of

1. Short term borrowings (i) Related parties transactions in case of short term loans and advances as a sub line item of short term borrowings. (ii) Period and amount of continuing default as on the balance sheet date in repayment of loans and interest, to be specified separately in each case. 2. Other current liabilities (i) Interest accrued but not due on borrowings. It should be applicable for interest payable within 12 months after the end of the reporting period. In other cases same should form part of non-current liability. (ii) Application money received for allotment of securities and due for refund 3. Short term provisions (i) Provision for employee benefits now to be classified under current and non-current. Current part to appear here. This calls for realignment of earlier years reporting figure also.
Page 10

ASSETS NEW DISCLOSURE REQUIREMENTS Assets are now required to be reported under current and non-current. 1. Non-current assets a. Format
1. Fixed Assets a. Tangible Assets b. Intangible Assets c. Capital Work in progress Related to Tangible assets d. Intangible assets under development Non-current investments Deferred Tax assets (net) Long term loans and advances Other non-current assets
2. 3. 4. 5.
b.
Significant disclosure requirements in case of

1. Tangible assets a. Assets under lease shall be separately identified under each class of asset. b. Any acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversal shall be disclosed separately. The term Business combination however has not been defined under The Companies Act or any of the notified Accounting standards. The definition of business combination as defined under Ind AS 103 on Business Combinations can be referred here as; A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as 'true mergers' or 'mergers of equals' are also business combinations as that term is used in this IFRS. The above seems having no significant impact under existing scenario where the term has not been used by the existing notified Accounting Standards except the separate disclosure of addition/deduction in case of Amalgamation as defined under Accounting standard -14 on Accounting for Amalgamations.
Page 11

c. The Conflict of Schedule VI and existing notified Accounting Standard relating to accounting treatment of forex loss/gain of long term loans, especially in case of capitalization, has been removed under revised guidelines by way of not prescribing any guidelines for such treatment under revised schedule VI. Now the accounting treatment of foreign exchange fluctuation will be governed by Accounting standard 11 The effects of changes in foreign exchange Rates together with effect of notification no. GSR 225(E) dated 31.3.2009 d. Now separate disclosure requirements for office equipment under tangibles Assets. However the requirement of disclosing Railways sidings, development of properties and live stocks has been removed and now can be merged with suitable sub headings or can be shown separately under other 2. Intangible assets a. Intangible assets are to be classified as: i. Goodwill ii. Brands/trademarks iii. Computer software iv. Mastheads and publishing titles v. Mining rights vi. Copyrights, and patents and other intellectual property rights, services, and operating rights vii. Recipes, formulae, models, designs and prototypes viii. Others (Specify nature) 3. Non-current Investments a. Non-current investments to be further classified into trade investments and other investments and further classified as: i. Investment property ii. Investments in Equity Instruments iii. Investments in preference shares iv. Investments in Government or trust securities v. Investments in debentures and bonds vi. Investments in Mutual funds vii. Investments in partnership firms Note: There was no separate disclosure requirement for investment property earlier. Investment property has been defined under AS- 13 Accounting for Investments as an investment in land or building that are not intended to be occupied substantially for use by , or in the operations of , investing enterprise. Now under the revised guidelines, investment property needs to be disclosed separately under the head non-current investments and guidelines of AS-13 shall be applied. Page 12

b. Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). The Requirement of investment purchased and sold during the year and disclosure of investment in Companies under same management has been done away with.
c.
4.
Long term Loans and advances a. Long-term loans and advances shall be classified as: i. Capital advances ii. Security deposits iii. Investments Loans and advances to related parties (giving details thereof) iv. Other loans and advances Note: 1. Wherever the above (except capital advances) are realized or adjusted within 12 months from the end of the reporting period should fall under the sub head category of current assets. 2. The requirement of loans and advances to companies under same management has been done away with.
5.
Other non-current assets Trade receivable realizable beyond 12 months from end of the reporting period or trade receivables on deferral credit terms which are receivable beyond 12 months from the end of reporting period should be disclosed here. and balance should be disclosed under current assets category.
Page 13

2. Current assets a. Format
a. b. c. d. e. f. Current Investments Inventories Trade Receivables Cash and Cash equivalents Short term loans and advances Other current assets
b.
Significant changes
i. The term sundry debtors has been substituted with the term trade receivables. Trade receivables are defined as dues arising only from goods sold or services rendered in the normal course of business. Therefore, amounts due on account of other contractual obligations, which were earlier included in the sundry debtors, can no longer be included in the trade receivables. ii. Previous Schedule VI required separate disclosure of debtors (i) outstanding for a period exceeding 6 months (i.e., based on billing date) and (ii) other debtors, in a Schedule to the balance sheet. However, the revised Schedule VI requires separate disclosure of trade receivables outstanding for a period exceeding 6 months from the date they became due for payment.
iii. No needs to mention bank balance with schedule banks and other banks. All the banks are now falls under the same category. Further the requirements of giving maximum balances in non schedules banks have also been removed. iv. Revised schedule VI now talks about Cash Equivalents- Cash Equivalent as per AS- 3 are short terms, highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in values. The revised schedule VI under dis- aggregations of cash & cash equivalent is however silent about the same. v. Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. vi. Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. vii. Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. viii. Bank deposits with more than 12 months maturity shall be disclosed separately. ix. Good s in transit to be reported for each class of inventory. Page 14

OTHER ADDITIONAL DISCLOSURE REQUIREMENTS
1. The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on preference shares shall also be disclosed separately. Earlier proposed dividends was shown as an appropriation item in the profit & loss account but now revised schedule VI requires appropriation directly in the reserves schedule and additional disclosures by way of notes to accounts as above. 2. 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.
MAJOR DISCLOSURES OMITTED UNDER REVISED SCHEDULE VI

1. 2. 3. Various disclosure under Micro , small and medium enterprises development Act 2006 Separate disclosures to dues to subsidiaries Specific mention of amount dues to be credited to Investors education and protection fund in case of dues for more than seven years. However disclosure requirement of dues under specific heads still exists. Specific mention of disclosure of provision for proposed dividends is missing in the revised schedule VI. The disclosure requirements related to proposed dividend has been dealt elaborately in later part of this analysis.
4.
Page 15

MAJOR DISCLOSURE REQUIREMENTS RETAINED UNDER REVISED SCHDULE VI
a. b. c. d. e. f. g. h. i. Authorized, Issued, Subscribed and fully paid and subscribed but not fully paid. Calls unpaid (showing aggregate value of calls unpaid by directors and officers) Forfeited shares (amount originally paid up) Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. Aggregate amount of quoted investments and market value thereof Aggregate amount of unquoted investments. Aggregate provision made for diminution in value of investments. Sundry Debtors to be now called Trade receivable. Disclosures are the same as earlier Schedule VI. Contingent liabilities and commitments such as: (a)Claims against the company not acknowledged as debt; (b)Guarantees; (c)Other money for which the company is contingently liable (d)Estimated amount of contracts remaining to be executed on capital account and not provided for; (e) Uncalled liability on shares and other investments partly paid up. 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
j.
Page 16

STRUCTURAL CHANGES - PROFIT & LOSS ACCOUNT
FORMAT NAME OF THE COMPANY PROFIT & LOSS STATEMENT FOR THE YEAR ENDED
Particulars I II III IV Revenue from operations Other Income Total Revenue (I + II) Expenses Cost of Material consumed Purchases of Stock in trade Changes in Inventories of Finished goods , Work in progress and stock in trade Employee Benefits expense Finance costs Depreciation and amortisation expenses Other expenses Total Expenses V VI VII VIII IX X Profit before exceptional and extraordinary items and tax (III - IV) Exceptional items Profit before extraordinary items and tax (V - VI) Extraordinary items Profit before tax (VII - VIII) Tax expense: (1) Current tax (2) Deferred tax XI XII XIII XIV XV XVI Profit (loss) for the period from continuing operations (VII - VIII) Profit (loss) from discontinuing operations Tax expense of discontinuing operations Profit/(loss) from discontinuing operations (after tax) (XII - XIII) Profit (Loss) for the period (XI + XIV) Earnings per Equity Share: (1) Basic (2) Diluted XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX Note No. Figures for the current reporting period XX XX XX Figures for the previous reporting period XX XX XX
Page 17

MAJOR CHANGES AT A GLANCE
1. The new format of profit & loss account does not talk about appropriation items. i.e dividend and general reserve appropriation out of profit & loss account. Guidelines given for disclosing reserve & surplus in liability side of balance sheet require disclosure of appropriation item under head Reserve & Surplus only. Revised schedule VI is silent regarding specific disclosure requirement of proposed dividend under the head of current liability. . However revised schedule VI requires disclosure related to amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share .Since the schedule VI (revised) has been framed based on the existing Accounting standards, one can draw inference from the requirements of para -14 of Accounting Standard 4 on Contingencies and Event occurring after the Balance sheet which state that; Dividends stated to be in respect of the period covered by the financial statements, which are proposed or declared by the enterprise after the balance sheet date but before approval of the financial statements, should be adjusted Accordingly proposed dividend needs to be considered in the books of account and should be shown as appropriation item in Reserve & Surplus section and corresponding liability for proposed dividend under short term provision. 2. The Amount of excise duty paid shall be disclosed in the notes instead on the face of profit & loss account. Revenue from operation shall include other income from the operations. Other income from sources other than operation shall be now shown as other Income on the face of the profit & Loss account. The borrowing cost portion of forex fluctuation gain/loss on foreign currency transaction shall now be part of finance cost. Rest shall be shown as forex fluctuation gain/loss as part of of general administrative cost The main disclosure requirements of Accounting standard 24 on Discontinuing Operations has now required to be given on the face of the profit & loss account. The limits of disclosure requirement has been enhanced from higher of 1% of revenue or Rs. 5000 to higher of 1% of revenue or Rs. 1,00,000. Under revised guidelines, the limits now applicable to disclosure of income also. Interest Income and interest expenses now need to be disclosed separately. Earlier the requirement of discloser of interest expenses on fixed loans only. Disclosure of Prior period items now covered under new guidelines.
3.
4.
5.
6.
7.
Page 18

8. In respect to quantitative details , the revised guidelines has been explained by way of comparison to existing guidelines:
Disclosure under Existing Guidelines
Disclosure under Revised Guidelines
Remarks
A) 1) In the case of manufacturing companies the value of the raw materials consumed, giving item-wise break-up and indicating the quantities thereof. In this break-up, as far as possible, all important basic raw materials shall be shown as separate items. The intermediates or components procured from other manufacturers may, if their list is too large to be included in the break-up, be grouped under suitable headings without mentioning the quantities, provided all those items which in value individually account for 10 per cent or more of the total value of the raw material consumed shall be shown as separate and distinct items with quantities thereof in the break-up. A)2) The opening and closing stocks of goods produced, giving break-up in respect of each class of goods and indicating the quantities thereof. B) In the case of trading companies, the purchases made and the opening and closing stocks, giving breakup in respect of each class of goods trade in by the company and indicating the quantities thereof.
Raw materials under broad heads.
Details of raw material consumption of major raw materials need to be given. Quantity may not be given Details of amount of purchases of major trading goods. Quantity may not be given .
Goods purchased under broad heads.
Nil
No disclosure requirement in revised guidelines
In the case of trading Details of purchases companies, purchases only required in case of in respect of goods trading company. traded in by the company under broad heads. In the case of Seems to be in same line companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads. In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if
Now the disclosure is required for raw material only and value should only be given quantity disclosure can be skipped.
C) In the case of companies rendering or supplying services, the gross income derived from services rendered or supplied.
D) In the case of a company, which falls under more than one of the categories mentioned in (A), (B) and (C) above, it shall be sufficient compliance with the requirements herein if the total amounts are shown in respect of the opening and closing stocks, purchases, sales and consumption of raw material with value and quantitative break-up and the gross income from services rendered is shown.
Page 19

purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads.
(e) In the case of other companies, the gross income derived under different heads.
In the case of other Seems to be in same line companies, gross income derived under broad heads.
No Notes No mention in revised guidelines
Note 1.- The quantities of raw materials purchases, stocks, and the turnover shall be expressed in quantitative denominations in which these are normally purchased or sold in the market. Note 2.- For the purpose of items (ii)(a), (ii)(b) and (ii)(d), the items for which the company is holding separate industrial licenses, shall be treated as separate classes of goods, but where a company has more than one industrial license for production of the same item at different places or for expansion of the licensed capacity, the item covered by all such licenses shall be treated as one class. In the case of trading companies, the imported items shall be classified in accordance with the classification adopted by the Chief Controller of Imports and Exports in granting the import licenses. Note 3.- In giving the break-up of purchases, stocks and turnover, items like spare parts and accessories, the list of which is too large to be included in the break-up, may be grouped under suitable headings without quantities, provided all those items, which in value individually account for 10 per-cent or more of the total value of the purchases, stocks, or turnover, as the case may be, are shown as separate and distinct items with quantities thereof in the break-up. (iii) In the case of all concerns having works-in-progress, the amounts for which [such works have been completed] at the commencement and at the end of the accounting period.
No Notes
No mention in revised guidelines
No Notes
No mention in revised guidelines
In the case of all concerns having works in progress, works-in-progress under broad heads.
The value of work in progress under various categories now needs to be disclosed.
Page 20

MAJOR DISCLOSURES OMITTED UNDER REVISED SCHEDULE VI
a. b. c. d. e. f. g. h. i. j. k. Details of amount and quantity of turnover for each class of goods. Details pertaining to licensed /installed and production quantity. Details of opening and closing stock of goods Quantity related information related to raw material consumption Commission paid to sole selling agent and other selling agents. Cash discount separately. Details of arrear depreciation. Separation of investment income from trade investment and other income. Disclosure of TDS in respect of Interest income and investment income. Director remuneration disclosure under section 198. Computation of Net profit under section 349/350 of the Companies Act.
MAJOR DISCLOSURE REQUIREMENTS RETAINED UNDER REVISED SCHDULE VI

a. Value of imports calculated on C.I.F basis by the company during the financial year in respect of:(i) Raw materials; (ii) Components and spare parts; (iii) Capital goods; b. Expenditure in foreign currency during the financial year on account of royalty, know-how, professional, consultation fees, interest, and other matters; c. Value of all imported raw materials, spare parts and components consumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; d. The amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the number of non-resident shareholders, the number of shares held by them on which the dividends related; e. Earnings in foreign exchange classified under the following heads, namely:(i) Export of goods calculated on F.O.B. basis; (ii) Royalty, know-how, professional and consultation fees; (iii) Interest and dividend; (iv) Other income, indicating the nature thereof.
Page 21

f. Expenditure incurred on each of the following items, separately for each item:a. b. c. d. e. f. g. h. Consumption of stores and spare parts. Power and fuel. Rent. Repairs to buildings. Repairs to machinery. Insurance. Rates and taxes, excluding taxes on income. Miscellaneous expenses:
g. Dividends from subsidiary companies and Provisions for losses of subsidiary companies h. (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserves, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as at which the balance-sheet is made up. (b) The aggregate, if material, of any amounts withdrawn from such reserves. i. (a) The aggregate, if material, of the amounts to set aside to provisions made for meeting specific liabilities, contingencies or commitments. (b) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required.
Page 22

GOING FORWARD AND MAJOR CHALLENGES
The revised schedule is a major revamp of the existing one. The focus has been put primarily on the liquidity aspect of balance sheet items. The revised guidelines are a stepping stone towards IFRS convergence and will assist at the time of IFRS convergence. Accounting standards are now more important than ever. Not only have the prescribed definitions of accounting standards are to be referred to in relation to Schedule VI but now they have gained dominance over the schedule VI requirement. The revised guidelines calls for additional task for the gathering new information mainly in the areas of Previous year figures based on revised schedule VI guidelines. All assets and liability needs to be bifurcated between current and non-current. This requires accumulation of several additional informations in relation to each assets and liabilities. 3. The provision for Employee benefits needs to be sliced between current and non-current involving the role of actuary valuation for earlier year also. 4. Separate disclosure of Investment property. 5. Various new disclosures in relation to share holding pattern of the Company.
1. 2.
Page 23

DISCLAIMER
The revised Schedule VI has introduced a new framework of presentation and disclosures, and also done away with some of the conventional requirements which were being followed earlier. This amendment to the Companies Act, brings with it many issues for deliberation and clarification. Users of this document are requested to approach appropriate authority for clarifications or take legal opinion from qualified professionals. This document does not represent any opinion on any matter whatsoever, and matters expressed herein should not be taken as directive or opinion for any reason. This document only tries to highlight the significant changes and what may be the outcome of these changes. This publication contains information in summary form and is therefore intended for general guidance of clients and associates and is meant for private circulation only. We shall not accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. This document has been compiled based upon documents and information available in public domain and the sources believed to be true and reliable and include in-house comments of Baker Tilly Singhi Consultants Pvt. Ltd. on the subject. However, no representation is made that it is accurate and complete.
Page 24

CONTACT US
Kolkata
Baker Tilly Singhi Consultants (P) Ltd. 1B Old Post Office Street Emerald House, 4th Floor Kolkata - 700 001 Ph. No. : +91 (33) 2248 4573/4577/7530 Fax No. : +91 (33) 2230 7146 E-mail : kolkata@bakertillysinghi.com Baker Tilly Singhi Consultants (P) Ltd. 401-408, Pragati House 47-48, Nehru Place New Delhi 110 019 Ph. No. : +91 (11) 2629 3986/87 Fax No. : +91 (11) 3082 0179/80 E-mail : newdelhi@bakertillysinghi.com Baker Tilly Singhi Consultants (P) Ltd. 101, Turf Estate Dr. E. Moses Road (Shakti Mills Lane) Mahalaxmi Mumbai - 400 011 Ph. No. : +91 (22) 6662 5537 Fax No. : +91 (22) 6662 5539 E-mail : mumbai@bakertillysinghi.com Baker Tilly Singhi Consultants (P) Ltd. 1, Philips Street Chennai - 600 001 Ph. No. : +91 (44) 4262 1416 Fax No. : +91 (44) 2538 4536 E-mail : chennai@bakertillysinghi.com Baker Tilly Singhi Consultants (P) Ltd. Sanmati Plaza Ashoka Furnishing Building, 2nd floor G.S.Road Guwahati - 781 005 Ph. No. : +91 (361) 2458 663/2458 997 E-mail : guwahati@bakertillysinghi.com
New Delhi
MUMBAI
CHENNAI
GUWAHATI
NETWORK LOCATIONS :
Bangalore Hyderabad Nagpur
Page 25

Revised Schedule VI

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Revised Schedule VI

Uploaded by

Copyright:

Available Formats

Overview on Revised Schedule VI

OVERVIEW ON REVISED SCHEDULE VI

Q ua l i ty s e rv ic e is n o t wha t yo u pu t i n to i t i ts wha t th e cl i en t g e ts out of i t

Private & Confidential

Overview on Revised Schedule VI

Private & Confidential

Overview on Revised Schedule VI

Private & Confidential

Overview on Revised Schedule VI

Private & Confidential

Overview on Revised Schedule VI

Figures as at the end of Current reporting period

Figures as at the end of Previous reporting period

I (1) (a) (b) (c)

Private & Confidential

Overview on Revised Schedule VI

Private & Confidential

Overview on Revised Schedule VI

Private & Confidential

Overview on Revised Schedule VI

3. Reserves & Surplus

Private & Confidential

Overview on Revised Schedule VI