Overview on Revised Schedule VI

OVERVIEW ON
REVISED SCHEDULE VI

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Overview on Revised Schedule VI

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

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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

EQUITY AND LIABILITIES

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

Shareholders funds
Share capital
Reserves and surplus
Money received against share warrants

XX
XX
XX

XX
XX
XX

(2)

Share application money pending

allotment

XX

XX

(3)
(a)
(b)
(c)
(d)

Non-current liabilities
Long-term borrowings
Deferred tax liabilities (Net)
Other Long term liabilities
Long-term provisions

XX
XX
XX
XX

XX
XX
XX
XX

(4)
(a)
(b)
(c)
(d)

Current liabilities
Short-term borrowings
Trade payables
Other current liabilities
Short-term provisions

XX
XX
XX
XX

XX
XX
XX
XX

TOTAL

XX

XX

Contd

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Overview on Revised Schedule VI

(II)

ASSETS

(1)
(a)
(i)
(ii)
(iii)
(iv)
(b)
(c)
(d)
(e)

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

XX
XX
XX
XX
XX
XX
XX
XX
XX

XX
XX
XX
XX
XX
XX
XX
XX
XX

(2)
(a)
(b)
(c)
(d)
(e)
(f)

Current assets
Current investments
Inventories
Trade receivables
Cash and cash equivalents
Short-term loans and advances
Other current assets

XX
XX
XX
XX
XX
XX

XX
XX
XX
XX
XX
XX

TOTAL

XX

XX

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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.

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ASSETS NEW DISCLOSURE REQUIREMENTS
Assets are now required to be reported under current and non-current.
1. Non-current assets
a.

Format
1.

2.
3.
4.
5.

b.

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

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.

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Overview on Revised Schedule VI

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.
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Overview on Revised Schedule VI

4.

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).

c.

The Requirement of investment purchased and sold during the year and disclosure of
investment in Companies under same management has been done away with.

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.

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Overview on Revised Schedule VI

2. Current assets
a. Format
a.
b.
c.
d.
e.
f.

b.

Current Investments
Inventories
Trade Receivables
Cash and Cash equivalents
Short term loans and advances
Other current assets

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.

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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.

4.

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.

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MAJOR DISCLOSURE REQUIREMENTS RETAINED UNDER REVISED SCHDULE VI
a.
b.
c.
d.
e.
f.
g.
h.
i.

j.

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

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STRUCTURAL CHANGES - PROFIT & LOSS ACCOUNT
FORMAT
NAME OF THE COMPANY PROFIT & LOSS STATEMENT FOR THE YEAR ENDED
Particulars

Note
No.

Figures for the current

reporting period

Figures for the

previous reporting
period

Revenue from operations

XX

XX

II

Other Income

XX

XX

III

Total Revenue (I + II)

XX

XX

IV

Expenses
Cost of Material consumed

XX

XX

Purchases of Stock in trade

Changes in Inventories of Finished goods , Work
in progress and stock in trade

XX

XX

XX

XX

Employee Benefits expense

XX

XX

Finance costs

XX

XX

Depreciation and amortisation expenses

XX

XX

Other expenses

XX

XX

Total Expenses

XX

XX

Profit before exceptional and extraordinary items

and tax (III - IV)

XX

XX

VI

Exceptional items

XX

XX

VII

Profit before extraordinary items and tax (V - VI)

XX

XX

VIII

Extraordinary items

XX

XX

IX

Profit before tax (VII - VIII)

XX

XX

Tax expense:
(1) Current tax

XX

XX

(2) Deferred tax

XX

XX

XI

Profit (loss) for the period from continuing

operations (VII - VIII)

XX

XX

XII

Profit (loss) from discontinuing operations

XX

XX

XIII

Tax expense of discontinuing operations

XX

XX

XIV

Profit/(loss) from discontinuing operations (after

tax) (XII - XIII)

XX

XX

XV

Profit (Loss) for the period (XI + XIV)

XX

XX

XVI

Earnings per Equity Share:

(1) Basic

XX

XX

(2) Diluted

XX

XX

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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.

3.

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.

4.

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

5.

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.

6.

7.

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.

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Overview on Revised Schedule VI

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

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.

Raw materials under

broad heads.

Goods
purchased
under broad heads.

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.

Nil

Remarks

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 .

No disclosure
requirement in revised
guidelines

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.

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.

C) In the case of companies rendering or supplying

services, the gross income derived from services
rendered or supplied.

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.

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.

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

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Now the disclosure is

required for raw
material only and value
should only be given
quantity disclosure can
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Overview on Revised Schedule VI

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.

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.

No Notes

No mention in revised
guidelines

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.

No Notes

No mention in revised
guidelines

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.

No Notes

No mention in revised
guidelines

(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.

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.

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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.

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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.

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Overview on Revised Schedule VI

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

New Delhi

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

MUMBAI

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

CHENNAI

GUWAHATI

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

NETWORK LOCATIONS :

Bangalore
Hyderabad
Nagpur

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