afs revised schedule vi

7/29/2019 AFS Revised Schedule VI

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REVISED SCHEDULE VI

BALANCE SHEET

Group members :M1257 Vineeth NairM1258 Vipula GangurdeM1259 Vishal ShivkarM1260 Vishwanathan Iye


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Introduction

On 28th February 2011, MCA replaced the existingSchedule VI of the Companies Act, 1956 with therevised one.

The Revised Schedule VI was applicable to allcompanies for the financial year commencing from 01stApril 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


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Key features

Gives prominence to Accounting Standards (AS)

Balance Sheet to be presented in vertical format only

Revised Schedule VI has eliminated the concept ofschedule and such information is now to be furnished

in the notes to accounts


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Key features

Title of Balance Sheet

Source of Funds now is Equity andLiabilities

Application of Funds now is Assets

All Assets and liabilities classified into currentand non-current assets

Shareholder holding more than 5% shares nowneeds to be disclosed


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Particulars NoteNo.

Figures as at theend of the currentreporting period

Figures as at the endof the previousreporting period

I. EQUITY AND LIABILITIES

(1) Shareholders Funds(a) Share capital(b) Reserves and surplus(c) Money received against share warrants New Line Item

(2) Share Application Money pendingallotment

New Line Item

(3) Non-current Liabilities(a) Long-term borrowings(b) Deferred tax liabilities (Net)(c) Other Long term liabilities(d) Long-term provisions

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

TOTAL


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Particulars NoteNo.

Figures as at theend of the currentreporting period

Figures as at theend of the previousreporting 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) Current investments(b) Inventories(c) Trade receivables(d) Cash and cash equivalents(e) Short-term loans and advances(f) Other current assets

TOTAL


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Key features

Presentation of figures:

Where Turnover:

a. < 100 crores

b. > 100 crores

Unit measurement should be used uniformly in theFinancial Statements.

Any item under which income or expenses exceed1% of revenue from operations or ` 1,00,000whichever is higher,


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COMPARITIVE ANALYSIS BETWEEN OLDSCHEDULE VIAND REVISED SCHEDULE VI

Particulars Old Schedule VI Revised Schedule VI

Authority Provisions of Schedule VI will

prevail over Accounting

Standards

Provisions of Accounting Standards

will prevail over Schedule VI

Form of Balance

Sheet

Both horizontal and vertical

form were allowed

Only vertical form of Balance Sheet

has been specified in the revisedSchedule VI

Form of Profit and

Loss Account

No format specified for Profit

and Loss Account

Form of Profit and Loss Account

specified under Part II

Headings in BalanceSheet Sources of funds andApplication of funds Equities and Liabilities andAssets

Profit and Loss

Appropriation

Account

Opening surplus, proposed

dividend and transfer to/ from

reserves were shown in Profit

and Loss Appropriation

Account

Transfer from/ to reserves to be

shown under the heading Reserves

& Surplus only. No requirement of

separate Profit and Loss

Appropriation Account.


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Proposed Dividend Proposed Dividend required to

be provided for

Proposed Dividend to be disclosed in

notes

Quantitative Details Quantitative details of Raw

materials, purchases, stocks and

turnover to be given for eachclass 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.


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Share Capital 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

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


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Net Working Capital Current assets & Liabilities are

shown together under

application of funds. The net

working capital appears on

balance sheet.

Assets & Liabilities are to be

bifurcated in to current & Non-

current and to be shown separately.

Hence, net working capital will notbe 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 non-

current assets and have to be

bifurcated in to Tangible & intangible

assets.

Capital advances to be shown under

the head Long term Loans and

Advances


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Borrowings Short term & long term

borrowings are grouped together

under the head Loan funds sub-

head Secured / Unsecured

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 beseparately 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


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Deferred Tax Assets /

Liabilities

Deferred Tax assets / liabilities

to be disclosed separately on the

face of Balance Sheet.

Deferred Tax assets / liabilities to be

disclosed under non-current assets /

liabilities as the case may be.

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


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Other current

liabilities

No specific mention for separate

disclosure of Current maturities

of long term debt

No specific mention for separate

disclosure of Current maturities

of finance lease obligation

Current maturities of long term debt

to be disclosed under other current

liabilities.

Current maturities of finance lease

obligation to be disclosed.

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


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Purchases The purchase made and the

opening & closing stock, giving

break up in respect of each class

of goods traded in by thecompany and indicating the

quantities thereof.

Goods traded in by the company to

be disclosed in broad heads in notes.

Disclosure of quantitative details ofgoods 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

P i l Old S h d l VI R i d S h d l VI


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ESOP expenses No requirement to show

separately as part of Employee

Benefits expense

Expense on Employee Stock Option

Scheme (ESOP) and Employee Stock

Purchase Plan (ESPP) to be shown

separately as part of EmployeeBenefits expense

Part III-Interpretation Terms provision, reserve,capital reserve, quoted

investment etc. were defined

No such specific definitions.

Part IV- BalanceSheet Abstract Details of company registrationnumber, capital raised, Balance

Sheet details, products etc. were

required to be attached with

financials

No such requirement.


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afs revised schedule vi

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