RevisedSchedule VItothe

CompaniesAct
Applicablew.e.f.FinancialYear:20112012
1
st
&2
nd
Floor,H.K.House,
AshramRoad,Ahmedabad 380009
InsightintoScheduleVI
Thereisaneedtochangealmostfivedecades oldexistingScheduleVI(hereinafter
referredasoldScheduleVI)tokeepthepacewiththechangestakingplaceinthe
internationalarena.
Th fi i l t b d f th ti i ft 01 04 Thefinancialstobepreparedfortheaccountingyearcommencingonorafter0104
2011.
Revised Schedule VI is applicable to all the companies RevisedScheduleVIisapplicabletoallthecompanies.
RevisedScheduleVIissilentforitsapplicabilitytoconsolidatedfinancialstatements,
asperAS 21whichrequiresconsolidatedfinancialstatementtobepreparedinthe p q p p
formatasadoptedbyitsparentsstandalone,revisedscheduleVIisalsoapplicableto
theconsolidatedfinancialstatements.
Th i fi f 2010 11 h ll l b d i i d f Thecomparativefigures of201011shallalsobepresentedinrevisedformat.
UnlikeoldScheduleVIwheretheoptionofhorizontalorverticalformatwasavailable,
revised Schedule VI presentation of Balance sheet and profit and loss account shall revisedScheduleVIpresentationofBalancesheetandprofitandlossaccountshall
onlybedoneinverticalformat.
MajorpointsinRevisedSchedule VI
NewprescribedformatforStatementofProfitandLossisbasedonthenatureof p
accounts. Thisisaimedatbringingmorestandardisationandcomparabilitytothe
presentationoftheP&L.Aspercurrentpractice,inabsenceofaprescribedformat,various
modesofpresentationincludingfunctionalandhybridclassificationswereaccepted.
Appropriationsofprofitshouldformpartofnotestoaccountsandnotpart
of Statementofprofitandloss.
InsteadofSchedulestothefinancialstatementallthedetailsshall begiveninthenotesto
accounts.
Tradereceivablesoutstandingfor6monthsormorefromtheduedateinsteadsales
invoicedate.
Quantitativedisclosuresrelatingtoturnover,rawmaterials,purchases,installedcapacity,
actualproduction,detailsofmanagerialremunerationsaretobedispensedwith.
GeneralInstructions
1) DisclosurerequirementsunderrevisedScheduleVIareinadditiontoandnotinsubstitutionofthe
disclosurerequirementsspecifiedintheAccountingstandardsandCompaniesAct.(EG) Thedisclosure
requirementsareminimumandanylineitems,sublineitemsandsubtotalsshallbepresentedasan
additionorsubstitutiononthefaceoftheFinancialstatementwhensuchisrelevantfordisclosing
financialpositionorperformanceortocatertoindustry/sectorspecific:
As per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currency As per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currency
exposure to be made separately.
2) NopossibilityofconflictbetweenAccountingstandardsandScheduleVIasonmodificationof
accountingstandardsprescribedundertheCompaniesAct,ScheduleVIwouldstandmodified
accordingly.
3) All disclosures required by Companies Act to be made in notes to accounts 3) AlldisclosuresrequiredbyCompaniesActtobemadeinnotestoaccounts.
EG:DisclosureunderCompaniesAct: DonationtoPoliticalpartiesshouldbeshownseparatelythough
itisnotrequiredasperRevisedScheduleVIasthesameisrequiredunderSection293Aofthe
CompaniesAct.
4) Notestoaccountsshallcontaininformationinadditiontotheinformationcontainedinthefinancial
statement,suchas
(i) narrative notes; (i)narrativenotes;
(ii)disaggregationofitemsshowninfinancials;(Eg :longterm&otherinvestments)
(iii)includeitemswhichdonotqualifyforrecognitioninfinancials(Eg:Managerialremuneration)
GeneralInstructions(contd.)
5) FinancialStatementsshouldnotprovideexcessivedetailsandatthesametimeitshould ) p
nothideimportantdetails.
Itmeansthatcompanyshouldnotdiscloseimportantinformationbyincludingamong
largeamountofinsignificantdetails.
6) Dependingontheturnover,figuresinfinancialscan beroundedoff:
(i)lessthanRs100crore Tonearesthundreds,thousands,lakhs ormillions
( ) (ii)Rs100crore ormore Tonearestlakhs,millionsorcrores ordecimals
Onceunitusedshallbeuniformlyusedinthefinancialstatement.
7) For the Revised Schedule the terms used herein shall be as per the applicable Accounting 7) FortheRevisedSchedule,thetermsusedhereinshallbeaspertheapplicableAccounting
Standards.(Example RelatedParties)
8) In the preparing the balance sheet the word Current Year is replaced as Current 8) Inthepreparingthebalancesheettheword CurrentYear isreplacedas Current
reportingperiodandPreviousYearasPreviousreportingperiod.
9) Cross referencing each line item with notes and vice versa required 9) Crossreferencingeachlineitemwithnotesandviceversarequired.
Sr Particulars RevisedScheduleVI OldScheduleVI
ComparisonbetweenOldandRevisedScheduleVI
1 Disclosure Onlyverticalformat.
format
BalancesheetandProfitandlosswere
disclosedeitherinHorizontalformator
in Vertical format
2 Disclosure InbalancesheetEquityand
format LiabilitiesandAssets
aredisclosed.
inVerticalformat.
InbalancesheetSourcesofFundsand
ApplicationofFundsaredisclosed
3 Disclosure Onliabilitysidethereare4heads
heads (i)Shareholdersfunds
(ii)Shareapplicationmoney
Therewereonly2headsonliabilityside
(i)Shareholdersfundand(ii)Loanfunds
There were 4 heads on asset side :
( ) pp y
pendingallotment
(iii)Noncurrentliabilitiesand
(iv)Currentliabilities
Therewere4headsonassetside:
(i)FixedAssets
(ii)Investments
(iii)Current assets, loans and advances
Onassetsidethereare2heads:
(i)Noncurrentassets
(ii)Currentassets
d f th h d i bif ti
(iii)Currentassets,loansandadvances
(iv)Miscellaneousexpenditure
andfurtherheadwisebifurcation
Sr Particulars RevisedScheduleVI OldScheduleVI
ComparisonbetweenOldandRevisedScheduleVI
4 FixedAssets Fixedassetsareshownundernon
currentassetsandarebifurcated
intoTangibleandIntangibleassets.
Therewasnobifurcationrequiredfor
tangibleandintangibleassets.Different
headsaredisclosed:
(i)Goodwill (ii) Land (iii) Building (iv) (i)Goodwill(ii)Land(iii)Building(iv)
Leasehold(v)Railwaysidings(vi)plant&
machinery(vii)Furniture&fittings(viii)
developmentofproperty(ix)patents,
trademark and design (x) livestock (xi)
5 Borrowings Longtermborrowingstobeshown
undernoncurrentliabilitiesand
trademarkanddesign(x)livestock(xi)
vehicles,etc.
Shortterm&longtermborrowingsare
groupedtogetherundertheheadLoanfund
shorttermborrowingstobeshown
undercurrentliabilitieswith
separatedisclosureforsecured/
unsecuredloansinbothcategories.
withsubheadSecured/Unsecured.
6 Investments Noseparateheadforinvestment,it
isbifurcatedintoNonCurrentand
Currentassets.
7 Loans & No separate head it is bifurcated
Allinvestmentstobedisclosedunderthe
headInvestment.
L & Ad di l d l ith
7 Loans& Noseparatehead,itisbifurcated
Advances intoNoncurrent&Currentassets.
Loans&Advancesaredisclosedalongwith
Currentassets.
PARTI FormofBALANCESHEET
NameoftheCompany.
BalanceSheetasat
Particulars Note Figuresas attheend
No.
g
CurrentReporting
Period
PreviousReporting
Period
I EQUITYANDLIABILITIES
h h ld f d 1 Shareholdersfunds
A Sharecapital
B Reservesandsurplus
C Money received against share Warrants C MoneyreceivedagainstshareWarrants
2 Shareapplicationmoneypendingallotment
3 Noncurrentliabilities
A Longterm borrowings A Long termborrowings
B Deferredtaxliabilities(Net)
C OtherLongtermliabilities
D Longtermprovisions
4 Currentliabilities
A Shorttermborrowings
B Tradepayables
C Othercurrentliabilities
D Shorttermprovisions
TOTAL
Contd[PARTI FormofBALANCESHEET]
Particulars NoteNo. Figuresas attheend
CurrentReporting PreviousReporting
Period Period
II ASSETS
1 Noncurrentassets
A Fixed assets A Fixedassets
I Tangibleassets
II Intangibleassets
III Capitalworkinprogress
IV Intangibleassetsunderdevelopment
B Noncurrentinvestments
C Deferredtaxassets(net)
D L t l d d D Longtermloansandadvances
E Othernoncurrentassets
2 Currentassets
A Currentinvestments
B Inventories
C Tradereceivables
D Cashandcashequivalents
E Shorttermloansandadvances
F Othercurrentassets
TOTAL
PARTII FormofSTATEMENTOFPROFITANDLOSS
NameoftheCompany.
Profitandlossstatementfortheyearended
Particulars
NoteNo. Figures forthe
Current
Reporting
Period
Previous
Reporting
Period
I Revenuefromoperations
II Otherincome
III TotalRevenue(I+II)
IV Expenses:
Costofmaterialsconsumed
PurchasesofStockinTrade
h f f h d d k d Changesininventoriesoffinishedgoods,workinprogressand
StockinTrade
Employeebenefitsexpense
Financecosts
Depreciationandamortizationexpense
Otherexpenses
Totalexpenses p
V Profitbeforeexceptionalandextraordinaryitemsandtax(IIIIV)
VI Exceptionalitems
VII Profitbeforeextraordinaryitemsandtax(V VI)
Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]
Particulars
NoteNo. Figures forthe
Current Previous Current
Reporting
Period
Previous
Reporting
Period
VIII ExtraordinaryItems
IX Profitbeforetax(VII VIII)
X Taxexpense:
(1) Current tax (including MAT on current tax) (1) Currenttax(including MAToncurrenttax)
(2) Deferredtax
XI Profit(Loss)fortheperiodfromcontinuingoperations(VIIVIII)
XII Profit/(loss)fromdiscontinuingoperations
Thisshallbedisclosedeven
ifthere isnotsuchbalance
asonBalancesheetdate.
XIII Taxexpenseofdiscontinuingoperations
XIV P fi /(l ) f Di i i i ( f ) (XII XIII) XIV Profit/(loss)fromDiscontinuingoperations(aftertax)(XIIXIII)
XV Profit(Loss)fortheperiod(XI+XIV)
XVI Earningsperequityshare:
(1) Basic
(2) Diluted
Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]
Companymaychoosetopresentanadditionalsubtotalsofcurrentassetsand p y y p
currentliabilitiesonfaceofBalancesheet.
Similarlycompanymaychoosetopresentanadditionallineitemonfaceof
StatementofProfitandlossaccountlikeEBITDA.
Excess/ShortprovisionofIncometaxofearlieryearsbeshownseparately.
Definitions
1 CurrentAsset meansanassetwhichsatisfiesANYofthefollowingcriteria:
(a) (i)expectedtoberealizedin,or
(ii)intendedfor(1)saleor
(2)consumption
inthecompanysnormaloperatingcycle;
OR
(b) heldprimarilyforthepurposeofbeingtraded;
OR
(c) expectedtoberealizedwithin12monthsafterthereportingdate;
OR
(d) cashorcashequivalent unlessitisrestrictedfrombeingexchangedorusedtosettle
aliabilityforatleast12monthsafterthereportingdate.
All other assets shall be classified as noncurrent Allotherassetsshallbeclassifiedasnon current.
2 Anoperatingcycle is:(Examples1to5)
Timebetweentheacquisitionofassetsforprocessingandtheirrealizationincashor
h l cashequivalents.
wherethenormaloperatingcyclecannotbeidentified,itisassumedtohave of12
months.
3 CurrentLiabilitymeansaliabilitywhichsatisfiesANYofthefollowingcriteria:
(Contd.)Definitions
y y g
(a) expectedtobesettledinthecompanysnormaloperatingcycle;
OR
(b) heldprimarilyforthepurposeofbeingtraded; ( ) p y p p g ;
OR
(c) duetobesettledwithin12monthsafterthereportingdate;
OR
(d) thecompanydoesnothaveanunconditionalrighttodefersettlementofthe
liabilityforatleast12monthsafterthereportingdate.
All other liabilities shall be classified as non current All other liabilities shall be classified as noncurrent.
4 Trade receivable means amount due on account of goods sold or services rendered in
the normal course of business.
5 Trade payable means amount due on account of goods purchased or services received
in the normal course of business.
6 Areservespecificallyrepresentedbyearmarkedinvestments shall betermedas afund 6 Areservespecificallyrepresentedbyearmarkedinvestments shall betermedas afund.
7 Financial statement means balance sheet and statement of profit and loss.
NorAccountingstandardsorrevisedScheduleVIareprovidingguidanceinrespectof
SpecialPurposeEntity
g p g g p
specialpurposeentity[SPE].
Hence,oneshouldseekguidancefromInd AS 27.
Acompanyshalldisclosethefollowinginthenotestoaccounts:
GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p y g
A ShareCapital
foreachclassofsharecapital(differentclassesofpreferencesharestobetreated
separately):
(a) thenumberandamountofsharesauthorized;
(b) thenumberofsharesissued,subscribedandfullypaid,andsubscribedbutnotfully
paid;
(c) parvaluepershare;
(d) areconciliationofthenumberofsharesoutstandingatthebeginningandattheend
ofthereportingperiod;
( ) f f (e) therights,preferencesandrestrictionsattachingtoeachclassofsharesincluding
restrictionsonthedistributionofdividendsandtherepaymentofcapital;
(f) sharesinrespectofeachclassinthecompanyheldbyitsholdingcompanyorits
ultimate holding company including shares held by or by subsidiaries or associates of ultimateholdingcompanyincludingsharesheldbyorbysubsidiariesorassociatesof
theholdingcompanyortheultimateholdingcompanyinaggregate;
(g) shares(equity+preference)inthecompanyheldbyeachshareholderholdingmore
than5%sharesspecifyingthenumberofsharesasonthebalancesheetdate;(along
withthecomparativeofpreviousyear)
(h) sharesreservedforissueunderoptionsandcontracts/commitmentsforthesaleof
shares/disinvestment,includingthetermsandamounts;
(i) Fortheperiodoffiveyearsimmediatelyprecedingthedate asatwhichtheBalance
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
( ) p y y p g
Sheetisprepared:
Aggregatenumberandclassofsharesallottedasfullypaidup:
(a)pursuanttocontract(s)withoutpaymentbeingreceivedincash.
(b)bywayofbonusshares
(c)sharesboughtback.
Sourcesfromwhichbonussharesareissued(Eg:Sharepremiumreserve)
NoNeedtogiveyearwisebreakupofsharesallotted.
(j) Termsofanysecuritiesconvertibleintoequity/preferencesharesissuedalongwith
theearliestdateofconversionindescendingorderstartingfromthefarthestsuch
date.
(k) Callsunpaid(showingaggregatevalueofcallsunpaidbydirectorsandofficers)
(l) Forfeitedshares(amountoriginallypaidup)
NotrequiredinNewSchedule VI:
Disclosurerequirementforcalledupsharesisremoved.
DetailsofutilizationofSharePremiumAccount.
BonusSharesandSharedissuedforconsiderationotherthancash(disclosure
notrequiredbeyond5years)
B ReservesandSurplus
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
ReservesandSurplusshallbeclassifiedas:
(a) CapitalReserves;
(b) CapitalRedemptionReserve;
(c) Securities Premium Reserve; (c) SecuritiesPremiumReserve;
(d) DebentureRedemptionReserve;
(e) RevaluationReserve;
(f) ShareOptionsOutstandingAccount;
(g) OtherReserves (specifythenatureandpurposeofeachreserveandtheamountin
respectthereof)
(h) Surplusi.e.balanceinStatementofProfit&Lossdisclosingallocationsandappropriations
such as dividend bonus shares and transfer to/from reserves etc (Format Example) suchasdividend,bonussharesandtransferto/fromreservesetc.(Format Example)
(Additionsanddeductionssincelastbalancesheettobeshownundereachofthespecifiedheads)
Notes: Notes: (i) NatureandpurposeofeachreservetobestatedONLYforthoseaggregated
under Other Reserves
( ) p g
under OtherReserves
(ii) DebitbalanceofProfitandLossaccounttobeshownasnegative.
(iii) ReserveandSurplusbalancecanbenegative.
Not required in New Schedule VI : NotrequiredinNewSchedule VI:
DetailsofutilizationofSharePremiumAccountinthemannerprovidedinSec78
ofCompaniesAct.
C LongTermBorrowings
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
g g
(i) Longtermborrowingsshallbeclassifiedas:
(a) Bonds/debentures
(b) Termloans ( )
frombanks.
fromotherparties.
(c) Deferredpaymentliabilities.(eg:DeferredSalestaxliabilityandDeferredpaymentfor ( ) p y ( g y p y
purchaseofAssets)
(d) Deposits (itcanbeFixeddeposits,Securitydeposits,Intercompany,etc)
(e) Loansandadvancesfromrelatedparties(Directors,companies,firmsetc).
(f) Longtermmaturitiesoffinanceleaseobligations
(g) Otherloansandadvances(specifynature).
(ii) Borrowingsshallfurtherbesubclassifiedas
(i ) secured and
(ii) unsecured.
Natureofsecurityshallbespecifiedseparatelyineachcase,(whichmeansifonesecurityis
givenformultipleloansthensamemaybeclubbedtogetherfordisclosurewithadequate
crossreferencing)
(iii) Where loans have been guaranteed by directors or others the aggregate amount of such loans under
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuchloansunder
eachheadshallbedisclosed.(othersmeanspersonorentityotherthandirector)
(iv) Bonds/debentures(alongwith
(i) therateofinterestand
(ii) particularsofredemptionorconversion,asthecasemaybe)
shallbestatedindescendingorderofmaturityorconversion,startingfromfarthestredemptionor
conversiondate,asthecasemaybe.Wherebonds/debenturesareredeemablebyinstallments,the
dateofmaturityforthispurposemustbereckonedasthedateonwhichthefirstinstallmentbecomes y p p
due.
(v) Particularsofanyredeemedbonds/debentureswhichthecompanyhaspowertoreissueshallbe
disclosed.
(vi) Termsofrepaymentoftermloansandotherloansshallbestated.(i)Tenorofmaturity(ii)numberof
installments(iii)Amountofinstallmentdue(iv)Rateofinterest(v)othersignificantitems.
(vii) Periodandamountofcontinuingdefaultasonthebalancesheetdateinrepaymentofloansand
interestshallbespecifiedseparatelyineachcase. (I.e.defaultinanyotherdebtcovenantisnot
requiredtobementioned)
(viii) Manytimesduetodefaultofsometermsandconditionsofloanagreement,theloanbecomespayable
ondemand.Insuchsituationsifthebankshasnotdemandedtherepaymentofloanuptodateof
approvalofaccountsbydirectorsthensuchloanshallbetreatedasnoncurrentonly.
D OtherLongTermLiabilities
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
g
OtherLongtermLiabilitiesshallbeclassifiedas:
Tradepayables
Others
TradePayablewillnotinclude:
1) duespayableinrespecttostatutoryobligations,
2) ContributiontoPF,
3) PurchaseofFixedAssets,
4) Interestaccruedontradepayable,etc.
SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbe
disclosed.
AcceptancesshouldbedisclosedaspartofTradePayables p p y
NotrequiredinNewScheduleVI:
DisclosureofSundryCreditorsearlierincludesduesinrespectof:
a) goods purchased and / or services received a) goodspurchasedand/orservicesreceived
b) Contractualobligations
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
E Longtermprovisions
Theamountsshallbeclassifiedas:
Provisionforemployeebenefits. p y
Others(specifynature).
F Shorttermborrowings
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) Shorttermborrowingsshallbeclassifiedas:
(a) Loansrepayableondemand(thiscanincludeLoansforworkingcapital)
frombanks.
fromotherparties.
(b) Loansandadvancesfromrelatedparties.
(c) Deposits,itcaninclude:
(1)Fixeddeposits
(2)Securitydeposits
(3)Publicdeposits
(4)ICD
(d) Otherloansandadvances(specifynature).
(ii) Borrowingsshallfurtherbesubclassifiedassecuredandunsecured.Natureofsecurityshall
bespecifiedseparatelyineachcase.
(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuch
loansundereachheadshallbedisclosed.
( ) d d f d f l h b l h d f l d (iv) Periodandamountofdefaultasonthebalancesheetdateinrepaymentofloansand
interestshallbespecifiedseparatelyineachcase.
GTradePayable:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
y
a) Tradepayable
b) Others
TradePayablewillnotinclude:
1) duespayableinrespecttostatutoryobligations,
2) ContributiontoPF, ) ,
3) PurchaseofFixedAssets,
4) Interestaccruedontradepayable,etc.
SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbe
disclosed.
OldScheduleVIrequiredtodisclosecertaininformationonMicroSmallMediumEnterprises
Development(MSMED).ThereisnosuchrequirementinRevisedScheduleVI.However,
MSMEDAct,2006requiresthesedisclosuretobemadeinthefinalaccountsofthe
CCompany.
Hence,requirementofMSMEDActshouldbecompliedinRevisedScheduleVIaswell.
H Othercurrentliabilities
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
Theamountsshallbeclassifiedas:
(a) Currentmaturitiesoflongtermdebt;
(b) Currentmaturitiesoffinanceleaseobligations;
(c) Interestaccruedbutnotdueonborrowings;
(d) Interestaccruedanddueonborrowings;
(e) Incomereceivedinadvance;
(f) Unpaiddividends
(g) Applicationmoneyreceivedforallotmentofsecuritiesanddueforrefundandinterest
accruedthereon.Thisincludesadvancestowardsallotmentofsharecapital.
Particularsoftheno.ofsharestobeissued,amt.ofpremium,periodbeforewhich
sharesshallbeallottedshallbedisclosed.
ItshallalsodisclosewhethertheCo.hassufficientauthorizedcapitaltocovertheshare
capital amount resulting from allotment of shares out of such application money capitalamountresultingfromallotmentofsharesoutofsuchapplicationmoney.
Further,theperiodforwhichtheshareapplicationmoneyispendingbeyondtheperiod
forallotmentasmentionedintheofferletteralongwiththereasonshallbedisclosed.
Shareapplicationmoneynotexceedingtheissuedcapitalandnotrefundableshallbe pp y g p
shownundertheheadEquityandshareapplicationmoneytotheextentrefundable
i.e.,theamountinexcessofsubscriptionorincasetherequirementsofminimum
subscriptionarenotmet,shallbeseparatelyshownunderOthercurrentliabilities
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(h) Unpaidmatureddeposits andinterestaccruedthereon
(i) Unpaidmatureddebentures andinterestaccruedthereon
(j) Otherpayables(specifynature)
NotrequiredinNewScheduleVI:
Interestaccruedandduewithloanwasearlierrequiredtobeshownwith
respectiveloannowseparatelyclassified
DisclosureofloanfromDirectorsandShareholders.
ThetitleheadofInvestorEducationandProtectionFundisnownotrequired.
However,thesubheadsremainunchangedintherevisedformat(i.e.unpaid
dividend,unpaidmatureddeposits,etc)
PROVISIONasaheadisnottobedisclosed.
I Shorttermprovisions
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p
Theamountsshallbeclassifiedas:
(a) Provisionforemployeebenefits.
(b) Others(specifynature). ( ) ( p y )
FewExamplesofOthersare:
1) Provisionfordividend, ) ,
2) ProvisionforTaxation,
3) ProvisionforWarranties,etc.
J Tangibleassetsshallbeclassifiedas:
(a) Land.
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(b) Buildings.
(c) PlantandEquipment.
(d) FurnitureandFixtures.
(e) Vehicles.
(f) Officeequipment.
(g) Others(specifynature).
(ii) Assetsunderleaseshallbeseparatelyspecifiedundereachclassofasset.
Lease means; Assets given on operating lease in case of books of lessor and assets held under Leasemeans;Assetsgivenonoperatingleaseincaseofbooksoflessor andassetsheldunder
financeleaseincaseofbooksoflessee.
(iii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthebeginningand
endofthereportingperiodshowingadditions,disposals,acquisitionsthroughbusinesscombinations
d h dj ( ill i l d ERF AS 11 b i i li i ) d h l d andotheradjustments(willincludeERFasperAS11,borrowingcostcapitalisation) andtherelated
depreciationandimpairmentlosses/reversalsshallbedisclosedseparately.
(iv) Wheresumshavebeenwrittenoffonareductionofcapitalorrevaluationofassetsorwheresums
havebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuchwriteoff,
oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayofanotealso
showtheamountofthereductionorincreaseasapplicabletogetherwiththedatethereofforthe
firstfiveyearssubsequenttothedateofsuchreductionorincrease.
(v) Capital Workinprogress should not include capital advances such advances should be classified (v) CapitalWork in progressshouldnotincludecapitaladvances,suchadvancesshouldbeclassified
underShorttermadvancesunderCurrentAdvances.
NotrequiredinNewScheduleVI: Livestock
K Intangibleassets
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) Classificationshallbegivenas:
(a) Goodwill.
(b) Brands/trademarks.
( ) C f (c) Computersoftware.
(d) Mastheadsandpublishingtitles.
(e) Miningrights.
(f) Copyrights and patents and other intellectual property rights services and operating rights (f) Copyrights,andpatentsandotherintellectualpropertyrights,servicesandoperatingrights.
(g) Recipes,formulae,models,designsandprototypes.
(h) Licensesandfranchise.
(i) Others(specifynature).
(ii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthe
beginningandendofthereportingperiodshowingadditions,disposals,acquisitionsthrough
businesscombinationsandotheradjustmentsandtherelatedamortizationandimpairment
/ losses/reversalsshallbedisclosedseparately.
(iii) Wheresumshavebeenwrittenoffonareductionofcapital orrevaluationofassetsorwhere
sumshavebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuch
it ff dditi h ll h th d d i d fi li bl d h ll b f writeoff,oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayof
anotealsoshowtheamountofthereductionorincreaseasapplicabletogetherwiththedate
thereofforthefirstfiveyearssubsequenttothedateofsuchreductionorincrease.
L Noncurrentinvestments shallbeclassifiedas:
(i) tradeinvestments(*) andotherinvestments andfurtherclassifiedas:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(a) Investmentproperty;
(b) InvestmentsinEquityInstruments;
(c) Investmentsinpreferenceshares
(d) Investments in Government or trust securities; (d) InvestmentsinGovernmentortrustsecurities;
(e) Investmentsindebenturesorbonds;
(f) InvestmentsinMutualFunds;
(g) Investmentsinpartnershipfirms
(h) Other non current investments (specify nature) (h) Othernoncurrentinvestments(specifynature)
(*)Tradeinvestmentmeansaninvestmentmadeinsharesordebenturesofothercompany
withtheintensiontopromotethetradeandbusinessofthatcompany.
Undereachclassification,detailsshallbegivenofnames ofthebodiescorporate(indicating
separatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)jointventures,or(iv)
controlledspecialpurposeentities)inwhominvestmentshavebeenmadeandthenatureand
extentoftheinvestment somade(showingseparatelythepartlypaidinvestments).Inregardto
investmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheir p p p , (
partners,totalcapitalandthesharesofeachpartner)shallbegiven.
AllProvisioninrespectofdisclosuresrequiredunderAS 13hastobecompliedwith.
AS 13AccountingforInvestmentshasdefinedCurrentinvestments,asinvestmentswhichare
d l l bl d d d b h ld f h f h d h h h readilyrealisable andintendedtobeheldformorethanoneyearfromthedateonwhichsuch
investmentismade.
Thiscriterionisdifferentascomparedtoconceptofcurrentassetwheretheperiodof
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p p p
realizationis12monthsfromthereportingdate.
PresentationofallinvestmentsinBalancesheetshouldbebasedoncurrent/non current
classificationasperRevisedScheduleVIandnotasperAS 13,sinceAS13doesnotlay
d i downpresentationnorms.
(ii) Investmentscarriedatotherthanatcostshouldbeseparatelystatedspecifyingthebasisfor
valuation
(iii) The aggregate amount of provision for diminution in value made in respect of all non (iii) Theaggregateamountofprovisionfordiminutioninvaluemadeinrespectofallnon
currentinvestmentsshouldbeseparatelydisclosed
(iv) InvestmentsinLimitedLiabilitiesPartnership(LLP)shouldbedisclosedseparatelyunderthe
titleOtherInvestments.SuchinvestmentsshouldnotbeclubbedwithPartnershipfirms. p
(v) Thefollowingshallalsobedisclosed:
(a)Aggregateamountofquotedinvestmentsandmarketvaluethereof;
(b)Aggregateamountofunquotedinvestments;
(c)Aggregateprovisionfordiminutioninvalueofinvestments
NotrequiredinNewScheduleVI:
Investment in same management company Investmentinsamemanagementcompany
Investmentspurchasedandsoldduringtheyeararenotrequiredtobeshown
inthisNote.
M Longtermloansandadvances
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
g
(i) Longtermloansandadvancesshallbeclassifiedas:
(a) CapitalAdvances;(Example 7)
(b) SecurityDeposits; ( ) y p ;
(c) Loansandadvancestorelatedparties (givingdetailsthereof);
(d) Otherloansandadvances(specifynature). (fewexamplesarePrepaidexpenses,
Advancetaxes,Cenvat creditreceivable,VATcreditreceivable,MATcredit)
(ii) Theaboveshallalsobeseparatelysubclassifiedas:
(a) Secured,consideredgood;
(b) Unsecured,consideredgood;
(c) Doubtful.
(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevant
headsseparately.
(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthemeither
severallyorjointlywithanyotherpersonsoramountsduebyfirmsorprivatecompanies
respectivelyinwhichanydirectorisapartneroradirectororamembershouldbe
separately stated Give separate break up under each such loans/advances separatelystated.Giveseparatebreak upundereachsuchloans/advances
(v) LoansandAdvancestorelatedpartiesshouldbegiveninaccordancewithdisclosure
requirementofAS18.
Disclosurepatterncouldbeasfollows:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p
Longtermloansandadvancesshallbedisclosedas:
(1) CapitalAdvances
(a) Secured,consideredgood ( ) , g
(b) Unsecured,consideredgood
(2) Prepaidexpenses unsecured,consideredgood
(3) Advancetax(NetofprovisionofRsasat31
st
March) unsecured, ( ) ( p ) ,
consideredgood.
N Othernoncurrentassets
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) LongTermTradeReceivables(includingtradereceivablesondeferredcreditterms);
(ii) Others(specifynature)
(iii) LongtermTradeReceivables,shallbesubclassifiedas: ( ) g ,
(i) (a) Secured,consideredgood;
(b) Unsecuredconsideredgood;
(c) Doubtful ( )
(ii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheads
separately.
(iii) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeither
severallyorjointlywithanyotherpersonordebtsduebyfirmsorprivatecompanies
respectivelyinwhichanydirectorisapartneroradirectororamembershouldbe
separatelystated.
Th ti d ti f h ld b l ifi d Oth lik i TheunamortizedportionofexpensesshouldbeclassifiedOtherslikeissueexpenses.
OCurrentInvestmentsshallbeclassifiedas:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) (a) InvestmentsinEquityInstruments;
(b) InvestmentinPreferenceShares
(c) Investmentsingovernmentortrustsecurities;
(d) Investmentsindebenturesorbonds;
(e) InvestmentsinMutualFunds;
(f) Investmentsinpartnershipfirms
(g) Other investments (specify nature) (g) Otherinvestments(specifynature).
Undereachclassification,detailsshallbegivenofnamesofthebodiescorporate
(indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)joint
ventures,or(iv)controlledspecialpurposeentities)inwhominvestmentshavebeen
madeandthenatureandextentoftheinvestmentsomadeineachsuchbodycorporate
(showingseparatelyinvestmentswhicharepartlypaid).Inregardtoinvestmentsinthe
capitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheirpartners,
total capital and the shares of each partner) shall be given totalcapitalandthesharesofeachpartner)shallbegiven.
(ii) Thefollowingshallalsobedisclosed:
(a) Thebasisofvaluationofindividualinvestments(Nottobedisclosedfornoncurrent
investments))
(b) Aggregateamountofquotedinvestmentsandmarketvaluethereof;
(c) Aggregateamountofunquotedinvestments;
(d) Aggregateprovisionmadefordiminutioninvalueofinvestments.
P Inventories shall be classified as:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
P Inventories shallbeclassifiedas:
(i) (a) Rawmaterials;
(b) Workinprogress;
(c) Finished goods; (c) Finishedgoods;
(d) Stockintrade(inrespectofgoodsacquiredfortrading);
(e) Storesandspares;
(f) Loose tools; (f) Loosetools;
(g) Others(specifynature).
(ii) Goodsintransitshallbedisclosedundertherelevantsubheadofinventories.
(iii) Mode of valuation shall be stated (iii) Modeofvaluationshallbestated.
AnyExcessmaterialwhichisnotlikelytoberealizedwithincompanysoperatingcycleis
to be considered as Current Asset. (Example 9) tobeconsideredas CurrentAsset .(Example 9)
Q TradeReceivables
(i) Trade receivables outstanding for 6 months or more from the due date for payment need to
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpaymentneedto
beseparatelydisclosed
(ii) Tradereceivablesshallbesubclassifiedas:
(a) Secured, considered good; (a) Secured,consideredgood;
(b) Unsecuredconsideredgood;
(c) Doubtful.
(iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads (iii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheads
separately.
(iv) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyor
jointlywithanyotherpersonordebtsduebyfirmsorprivatecompaniesrespectivelyin
whichanydirectorisapartneroradirectororamembershouldbeseparatelystated.
(Example 10)
NotrequiredinNewScheduleVI:
Debtsduefromothercompaniesunderthesamemanagementaspersection370(1B).
Themaximumamountduebydirectorsorotherofficersatanytimeduringtheyearshownby
wayofanote.
DisclosureofSundryDebtorsearlierincludesduesinrespectof:
a) goodssoldand/orservicesprovided
b) AmountdueunderContractualobligations.
R Cashandcashequivalents shallbeclassifiedas:(Example 8)
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
q ( p )
(i) (a) Balanceswithbanks;
(1) OnCurrentAccounts
(2) DepositswithOriginalmaturitylessthan3months ( ) p g y
(3) Unpaiddividendaccount
(b) Cheques,draftsonhand;
(c) Unpaidmatureddeposits ( ) p p
(d) Unpaidmatureddebentures
(e) Cashonhand;
(f) Othersbankbalances(specifynature). ( ) ( p y )
(1) Depositswithorginalmaturityformorethan12months
(2) Depositswithorginalmaturityformorethan3monthsbutlessthan12
months
(3) Marginmoneydeposit
(ii) Earmarkedbalanceswithbanks(forexample,forunpaiddividend)shallbeseparately
stated.
(iii) Balanceswithbankstotheextentheldasmarginmoneyorsecurityagainstthe
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
( ) g y y g
borrowings,guarantees,othercommitmentsshallbedisclosedseparately.
(iv) Repatriationrestrictions,ifany,inrespectofcashandbankbalancesshallbeseparately
stated.
(v) Bankdepositswithmorethan12monthsmaturityshallbedisclosedseparately.
NotrequiredinNewScheduleVI:
Bif i C Fi d d i i i d BifurcationtoCurrent,Fixeddepositetc.isnotrequirednow
ItisnotrequiredtobifurcatetobankstoScheduledandOtherbanks
SShorttermloansandadvances shallbeclassifiedas:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) (a) Loansandadvancestorelatedparties(givingdetailsthereof);
(b) Others(specifynature).
(ii) Theaboveshallalsobesubclassifiedas: ( )
(a) Secured,consideredgood;
(b) Unsecured,consideredgood;
(c) Doubtful. ( )
(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevant
headsseparately.
(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthem
eitherseverallyorjointlywithanyotherpersonoramountsduebyfirmsorprivate
companiesrespectivelyinwhichanydirectorisapartneroradirectororamembershall
beseparatelystated.
( ) T d i bl t t di f 12 th f th d d t f t (v) Tradereceivablesoutstandingfor12monthsormorefromtheduedateforpayment
(againstearlierrequirementofinvoicedate)needtobeseparatelydisclosed
(vi) UnderOtherscurrentassetswhichdoesnotfitintootherassetswillbeclassifiedhere;
eg. unamortised premium on forward contract, etc. eg.unamortisedpremiumonforwardcontract,etc.
T Othercurrentassets(specifynature).
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
( p y )
Thisisanallinclusiveheading,whichincorporatescurrentassetsthatdonotfitintoany
otherassetcategories.
Theheadcontainsitemssuchas:
1) Interestaccruedoninvestments
2) Unbilledrevenue
SuchbalancesshouldbeincludedhereinOtherCurrentAssets:
(i) Insuranceclaimsreceivable
(ii) SaleofFixedAssets
(iii) Contractuallyreimbursablebalances.
ItmustmenotedthattheseitemsshouldnotbeincludeinTradereceivablebalance
U Contingentliabilitiesandcommitments
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(totheextentnotprovidedfor)
(i) (a) Claimsagainstthecompanynotacknowledgedasdebt;
(b) Guarantees;
(c) Othermoneyforwhichthecompanyiscontingentlyliable
(ii) Commitmentsshallbeclassifiedas:
(a) Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnot
id d f providedfor;
(b) Uncalledliabilityonsharesandotherinvestmentspartlypaid
(c) Othercommitments(specifynature).(Example 6)
will include revenue and capital commitments Therefore it will include those non willincluderevenueandcapitalcommitments.Therefore,itwillincludethosenon
cancellablecontractualcommitmentsforpurchaseofRM&PM,purchaseof
investments,salescontracts,servicecontractsi.e.thecancellationofwhichresultin
penalty.Itwillalsoincludecommitmentsinnatureofbuybackarrangements,
i f b idi i JV d i i l d i commitmentfromsubsidiaries,JVs,derivativerelatedcommitments.
WhencompaniesundertakestoperformitsownobligationandgivesGuaranteethenitisnot
consideredContingentLiability.BanksgenerallygiveGuaranteefor:
1) LC 1) LC
2) Fordeferredpaymenttoforeignsuppliers,etc.
forthispurposeevenifcompanygivescounterguaranteetobankisnotcontingentliability.
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
V 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
di l d l disclosed separately.
W 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 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.
X If, in the opinion of the Board, any of the assets other than fixed assets and noncurrent
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.
1 AllprovisionsofProfit&LossaccountwillalsobeapplicabletoIncome&Expenditureaccountwhichis
ll d b C i t i b i f fit
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
generallypreparedbyCompaniesnotcarryingonbusinessforprofit.
2 RevenuefromOperations(otherthanfinancecompany)shallbedisclosedinnotes:
(A) (a) saleofproducts(*)
(b) saleofservice
(c) Other operating revenue (shall include scrap sales) (**) (c) Otheroperatingrevenue(shallincludescrapsales)( )
Less:
(d) Exciseduty(Opinion)
(*)(1)wherecompanycollectstaxonlyasanintermediary,revenueshouldbepresentedNetof
taxes taxes.
(2)VATisnotrevenueanditspaymentshouldnotbebookedasanexpense
(**)whichincomewillfallunderthisheadingshouldbedecidedbasedonfactsofeachcaseand
detailedunderstandingoftheactivitiesofthecompany.
(B) RevenuefromOperationsincaseoffinancecompany : ( ) p p y
(a) interest
(b) otherfinancialservices
Revenueundereachoftheaboveheadsshallbedisclosedseparatelybywayofnotestoaccountstothe
extentapplicable.
3 Financialcostsshallbeclassifiedas:
(a) interestexpense
(b) Otherborrowingcosts;(includes(1)Commitmentcharges,(2)loanprocessingcharges,(3)loan
facilitationcharges,(4)discount/premiumonborrowings,(5)interestonshortfallonIncometax)
(c) Applicablenetgain/lossonforeigncurrencytransactionsandtranslation.(Guide)
4 OtherIncome (**)shallbeclassifiedas:
(a) InterestIncome(incaseofacompanyotherthanafinancecompany);
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
NotrequiredinNewScheduleVI:
(b) DividendIncome;
(c) Net gain/ loss on sale of investments fixed assets and ERF gain
IncomefrominvestmentwerebifurcatedtoTradeinvestmentandotherinvestmentssuch
bifurcationisnotrequiredinrevisedformat.
(c) Netgain/lossonsaleofinvestments,fixedassetsandERFgain
(d) Othernonoperatingincome(netofexpensesdirectlyattributabletosuchincome).
5 AdditionalInformationbywayofnotes onadditionalinformationregardingaggregateexpenditure
andincomeonthefollowingitems:
(i) (a) EmployeeBenefitsExpense[showingseparately
(i) salariesandwages,
(ii) contributiontoprovidentandotherfunds,(willalsoincludesuperannuation,gratuity)
(iii) expense on Employee Stock Option Scheme (ESOP) & Employee Stock Purchase (iii) expenseonEmployeeStockOptionScheme(ESOP)&EmployeeStockPurchase
Plan(ESPP),
(iv)staffwelfareexpenses].
(b) Depreciationandamortizationexpense;
(c) Anyitemofincomeorexpenditurewhichexceeds1%oftherevenuefrom
operationsorRs.1,00,000,whicheverishigher;
(d) InterestIncome;
(e) Interest Expense; (e) InterestExpense;
(f) DividendIncome;
(g) Netgain/lossonsaleofinvestments;
(h) Adjustmentstothecarryingamountofinvestments;
(i) Netgainorlossonforeigncurrencytransactionandtranslation(otherthanconsideredasfinance
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
cost);
(j) Paymentstotheauditoras
(a) auditor,
(b) fortaxationmatters, ( ) ,
(c) forcompanylawmatters,
(d) formanagementservices,
(e) forotherservices,
(f) forreimbursementofexpenses; ( ) p ;
(k) Detailsofitemsofexceptionalandextraordinarynature;
(l) Priorperioditems;
(ii) (a) Inthecaseofmanufacturingcompanies,
(1) Raw materials under broad heads (1) Rawmaterialsunderbroadheads.
(2) goodspurchasedunderbroadheads.
BroadheadsmeanscategoriesforRMpurchased.10%oftotalvalueofsales/consumption
ofRMisanacceptablethresholdtodetermineBroadheads.
(b) In the case of trading companies purchases in respect of goods traded in by the company under
Note: Broadheadsshallbedecidedtakingintoaccounttheconceptof
materialityandpresentationoftrueandfairviewoffinancialstatements.
(b) Inthecaseoftradingcompanies,purchasesinrespectofgoodstradedinbythecompanyunder
broadheads.
(c) Inthecaseofcompaniesrenderingorsupplyingservices,grossincomederivedformservices
renderedorsuppliedunderbroadheads.
(d) Inthecaseofacompany,whichfallsundermorethanoneofthecategoriesmentioned
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
in(a),(b) and(c)above,itshallbesufficientcompliancewiththerequirementsherein
ifpurchases,sales andconsumptionofrawmaterialandthegrossincomefrom
servicesrenderedisshownunderbroadheads.
(e) In the case of other companies gross income derived under broad heads (e) Inthecaseofothercompanies,grossincomederivedunderbroadheads.
(iii) Inthecaseofallconcernshavingworksinprogress,worksinprogressunderbroadheads.
(iv) (a) The aggregate if material of any amounts set aside or proposed to be set aside to (iv) (a) Theaggregate,ifmaterial,ofanyamountssetasideorproposedtobesetaside,to
reserve,butnotincludingprovisionsmadetomeetanyspecificliability,contingencyor
commitmentknown toexistatthedateastowhichthebalancesheetismadeup.
(b) Theaggregate,ifmaterial,ofanyamountswithdrawnfromsuchreserves. ( ) gg g , , y
(v) (a) Theaggregate,ifmaterial,oftheamountssetasidetoprovisionsmadeformeeting
specificliabilities,contingenciesorcommitments.
(b) Theaggregate,ifmaterial,oftheamountswithdrawnfromsuchprovisions,asnolonger
required.
(vi) Expenditureincurredoneachofthefollowingitems,separatelyforeachitem:
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
(a) Consumptionofstoresandspareparts.
(b) Powerandfuel.
(c) Rent.
(d) R i t b ildi (d) Repairstobuildings.
(e) Repairstomachinery.
(g) Insurance.
(h) Rates and taxes (excluding taxes on income but including Wealth tax) (h) Ratesandtaxes,(excludingtaxesonincomebutincludingWealthtax)
(i) Miscellaneousexpenses,
(vii) (a) Dividendsfromsubsidiarycompanies.
(b) P i i f l f b idi i (b) Provisionsforlossesofsubsidiarycompanies.
(viii) Theprofitandlossaccountshallalsocontainbywayofanote thefollowing
information,namely:
a) ValueofimportscalculatedonC.I.F. basisbythecompanyduringthefinancialyear
inrespectof
I. Rawmaterials;
II C t d t II. Componentsandspareparts;
III. Capitalgoods;
b) Expenditureinforeigncurrency duringthefinancialyearonaccountofroyalty,
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
) p g y g y y y
knowhow,professionalandconsultationfees,interest,andothermatters;
c) Totalvalueifallimportedrawmaterials,sparepartsandcomponentsconsumed
duringthefinancialyearandthetotalvalueofallindigenousrawmaterials,spare
d i il l d d h f h h l partsandcomponentssimilarlyconsumed andthepercentageofeachtothetotal
consumption;
d) Theamountremittedduringtheyearinforeigncurrenciesonaccountof
dividends with a specific mention of the total number of nonresident dividends withaspecificmentionofthetotalnumberofnon resident
shareholders,thetotalnumberofshares heldbythemonwhichthe
dividendsweredueandtheyeartowhichthedividendsrelated;
e) Earningsinforeignexchangeclassifiedunderthefollowingheads,namely:
(i) ExportofgoodscalculatedonF.O.B. basis;
(ii) Royalty,knowhow,professionalandconsultationfees;
(iii) Interestanddividend;
(iv) Otherincome,indicatingthenaturethereof
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
NotrequiredtomentioninnotesofRevisedSchedule VI:
Quantityofsales
QuantityofRawmaterialconsumed Q y
Installedcapacityandproductiondetails
Theamountofinterestoncompanysdebenturesandfixedloanstomanaging
directorandmanager.
M i l ti t b id bl ti 198 d Managerialremunerationtobepaidorpayableaspersection198and
commissionpayabletodirectorsaspersection349.
A SHARECAPITAL:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Reconciliationofopeningandclosingofnumberofsharesoutstanding
2) Sharesheldbyassociatesoftheholdingcompanyorultimateholdingcompany
3) NameandNumberofsharesheldbyshareholdersholdingmorethan5%shares(asthereference
d t i t ti d l i ll it h ld b B l h t d t ) dateisnotmentioned,logicallyitshouldbeBalancesheetdate)
4) Incaseofsecuritiesconvertibleintoequity/preferencesharesthenworkingfordateofconversion
indescendingorderstartingfromthefarthestsuchdate.
B CURRENT LIABILITES : B CURRENTLIABILITES:
Amountofliabilitiesduetobesettledwithin12monthsfromthereportingdate,forworkingof
currentliabilities
B1 LONGTERMBORROWINGS:
Theentirepointisnew,hencethecompanywillhavetofindout:
1) Termloan longtermandshortterm.
2) Deposits(includingfixeddeposits) longtermandshortterm.
3) Loan from related parties long term and short term 3) Loanfromrelatedparties longtermandshortterm.
4) TradePayable longtermandshortterm.
5) Provisionforemployeebenefits longtermandshortterm.
6) Bonds/debenturesshallbestatedindescendingorderofmaturitystartingfromfarthest ) g y g
redemption.
7) Termsofrepaymentoftermloansandotherloansshallbestated.
8) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest.
B2 SHORTTERMBORROWINGS:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Loansthatarerepayableondemand(includesLoansforworkingcapital)
2) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest
Note: workingtobifurcateAllBorrowings&ProvisionstoLONGTERMandSHORTTERM g g
B3 OTHERCURRENTLIABILITES:
1) Amountofcurrentmaturitiesoflongtermdebt ) g
2) Amountofcurrentmaturitiesforfinancelease
3) Amountofincomereceivedinadvance
4) Amountofinterestaccruedonmatureddepositsanddebentures ) p
A TANGIBLEASSETS:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Bifurcationofleaseassetsundereachclassofassets
2) Amountofassetsacquiredthroughbusinesscombinations(i.e.bifurcationfrom
additiontoassets)
3) Incaseofrevaluationofassets,amountofreductionandincreaseinthevalueofasset
forsubsequent5years.
B CURRENT ASSETS : B CURRENTASSETS:
Bifurcationofassetswhichareexpectedtoberealizedandconsumedinnormaloperating
cycle.
Amountofassetsexpectedtoberealizedwithin12monthsafterthereportingdate. p p g
B1 NONCURRENTINVESTEMENTS:
1) Amountofinvestmentinproperty(notforbusinesspurposeandwheretheintensionis
to invest) toinvest)
2) Classificationofallnoncurrentinvestmentsin(i)subsidiaries(ii)associates(iii)joint
ventures(iv)controlledspecialpurposeentities.
B2 LONGTERMLOANSANDADVANCES:
1) AmountofCapitaladvances
2) Amountofsecuritydeposits
B3 OTHERNONCURRENTASSETS:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Amountoflongtermtradereceivables
B4 INVENTORIES:
1) AmountofGoods in transitundereachcategoryofinventory
B5 TRADERECEIVABLES:
1) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpayment
(againstearlierrequirementofinvoicedate)needtobeworkedout
B6 CASHANDCASHEQUIVALENTS:
1) Amountofcheques,draftsonhand
2) Earmarkedbalanceswithbanks
3) Repatriationrestrictionsinrespectofcashandbankbalances
4) Amountofbankdepositsmorethan12monthsmaturity
FINANCECOSTS:
AdditionaldetailstobeworkedoutforpreparingProfitandlossasperRevisedSchedule VI
1) Gain/Lossonforeigncurrencytransactiontobeseparatedintofinancecostsandother
expenses
OTHERINCOME:
1) Amountofdirectlyattributableexpensestoearnnonoperatingincomes.
ADDITIONALINFORMATION:
1) Detailsofincome andexpensewhichismorethan1%oftherevenuefromoperations
orRs1Lac,whicheverhigher
2) Amountofnetgainorlossonforeigncurrency(otherthanconsideredasfinancecosts)
3) DetailsofRawmaterials
4) Detailsofworksinprogress
5) Fewcircumstantialexamples ofSPEare:
1) SPEforspecialbusinessneedssothattheentityobtainsbenefitsfromtheSPEsbusiness
2) EntityhasdecisionmakingpowertoobtainmajorityofthebenefitsoftheactivitiesofSPE
3) E i h i h h b fi f SPE d h f i d i k i id h 3) EntityhasrightoverthebenefitsofSPEandthereforeisexposedtoriskincidenttothe
activitiesofSPE
4) EntityretainsthemajorityresidualorownershiprisksrelatedtoSPEoritsassetinorderto
obtainbenefitsfromitsactivities.
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
TermLoan Exim bank LoansSecured TermLoans
fromOthers
NoncurrentLiabilities Long
termborrowings Termloans
fromOthers
Corporation BankTermLoan
RupeeTermLoan II
Loans Secured TermLoans
fromBanks
Noncurrent Liabilities Long
termborrowings Terms
loansfrombanks
ABC B k EEFC A t L S d W ki C t Li biliti Sh t ABCBankEEFC Account Loans Secured Working
Capital
CurrentLiabilities Short
termborrowings Fixed
deposit
Deferred Sales tax loan Loans Unsecured Deferred Non Current Liabilities Long DeferredSalestaxloan LoansUnsecured Deferred
SalesTaxloan
NonCurrentLiabilitiesLong
termborrowingsDeferred
SalesTaxloan
Provision for RM Product A Current liabilities and Current Liabilities Trade ProvisionforRMProduct A Currentliabilitiesand
provisionsSundry creditors&
Expensespayable
CurrentLiabilities Trade
payables
DEPBUtilized Provision Currentliabilities & CurrentLiabilities Trade
ProvisionsSundryCreditors&
Expensespayable
payables
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Clearing ChargesProvision CurrentLiabilities &
Provisions SundryCreditors
&ExpensesPayable
Current Liabilities
TradePayables
Earnest Money CurrentLiabilities &
Provisions SundryCreditors
&ExpensesPayable
Current Liabilities
TradePayables
R t ti M C t Li biliti & C t Li biliti RetentionMoney CurrentLiabilities &
Provisions SundryCreditors
&ExpensesPayable
Current Liabilities
TradePayables
Supplier Advances Raw Current Assets Loans & Current Assets Short term SupplierAdvances Raw
Material
CurrentAssets,Loans &
Advances Advances
recoverableincashorkind
CurrentAssets Short term
Loans&Advances
(referNote1)
Supplier Advances General Current Assets, Loans & Current Assets Short term SupplierAdvances General CurrentAssets,Loans &
Advances Advances
recoverableincashorkind
CurrentAssets Short term
Loans&Advances
(referNote1)
BonusPayableAccount CurrentLiabilities &
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
OtherCurrentLiabilities
OtherPayablesEmployees
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Staff WelfareCenter
Deductions
CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
OtherCurrentLiabilities
OtherPayables Employees
OtherPayDeductions CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
OtherCurrentLiabilities
OtherPayables Employees
P i i f L T l C t Li biliti & C t Li biliti ProvisionofLeaveTravel
Assistance
CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
Shortterm Provision
EmployeesBenefits
Stale Cheques Current Liabilities & Current Liabilities StaleCheques CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
TradePayables Others
Deferred Revenue Income Current Liabilities & Current Liabilities DeferredRevenueIncome CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
TradePayables Others
AcceptanceAgainst Bills CurrentLiabilities& CurrentLiabilities
Provisions Current Liabilities
Acceptance
ShorttermBorrowings
AcceptanceFromBanks
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ProvisionExciseDuty
FinishedGoods
CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
Shortterm Provisions
Other
LiabilityForExpenses CurrentLiabilities&
Provisions SundryCreditors
&ExpensesPayable
CurrentLiabilities
Shortterm Provisions
Other
P i i M k t M k t C t Li biliti & C t Li biliti Provision MarktoMarket
(MTM)LossesForward
Contracts
Current Liabilities&
Provisions Provisions
Other
CurrentLiabilities
Shortterm Provisions
Other
Provision For Gratuity Current Liabilities & Non current Liabilities ProvisionForGratuity CurrentLiabilities&
Provisions Provisions
EmployeesBenefits
NoncurrentLiabilities
LongtermProvision
EmployeeBenefits
Provision For Earned Leave Current Liabilities & Noncurrent Liabilities Provision ForEarnedLeave
Encashment
CurrentLiabilities&
Provisions Provisions
EmployeesBenefits
Non currentLiabilities
LongtermProvision
EmployeeBenefits
SecurityDeposit Contractor CurrentLiabilities & CurrentLiabilities
Provisions CurrentLiabilities
TradeDeposits&Advances
OtherCurrent Liabilities
TradeDeposit&Advances
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
TDS Contractors CurrentLiabilities&
Provisions CurrentLiabilities
OtherLiabilities
CurrentLiabilities Other
CurrentLiabilities SalesTax
&WithholdingTaxesPayable
C t Current
CST Collected CurrentLiabilities&
Provisions CurrentLiabilities
Other Liabilities
CurrentLiabilities Other
CurrentLiabilities SalesTax
& Withholding Taxes Payable OtherLiabilities &WithholdingTaxesPayable
Current
EntryTaxPayable CurrentLiabilities&
Provisions Current Liabilities
CurrentLiabilities Other
Current Liabilities Sales Tax Provisions CurrentLiabilities
OtherLiabilities
CurrentLiabilities SalesTax
&WithholdingTaxesPayable
Current
ExciseDutyPayable CurrentLiabilities& CurrentLiabilities Other
Provisions CurrentLiabilities
OtherLiabilities
CurrentLiabilities SalesTax
&WithholdingTaxesPayable
Current
ProvisionForIncomeTax CurrentLiabilities&
Provisions Provisions
Income Tax&WealthTax
CurrentLiabilities Short
termProvisions IncomeTax
&WealthTax
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ProvisionForDividend
Equity
CurrentLiabilities&
Provisions Provisions
DividendonEquityShares
CurrentLiabilities Short
term Provisions Dividendon
EquityShares
AdvanceFrom Customers Current Liabilities&
Provisions CurrentLiabilities
TradeDeposits&Advances
CurrentLiabilities Other
CurrentLiabilities Trade
Deposit&Advances
SODEXHOVoucherinHand Current Assets Cash&Bank
Balances CashinHand
CurrentAssets Cash &Cash
Equivalents CashinHand
Imprest UK Office Current Assets Cash & Bank Current Assets Cash & Cash ImprestUKOffice Current Assets Cash&Bank
Balances CashinHand
CurrentAssets Cash &Cash
Equivalents CashinHand
PostageImprest Current Assets Cash&Bank
Balances Cash in Hand
CurrentAssets Cash &Cash
Equivalents Cash in Hand Balances CashinHand Equivalents CashinHand
ClaimsRecoverableDEPB
LicenseinHand
CurrentAssets Loans&
Advances Advances
RecoverableinCashorKind
CurrentAssets Other
CurrentAssets Other
TradedepositsandSecurity
deposits
CurrentAssets Loans&
Advances Deposits
OtherNoncurrent/longterm
liabilities
CurrentLiabilities
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Staff HousingLoan CurrentAssets Loans &
Advances Advances
RecoverableinCashorKind
NonCurrent Assets Long
termLoans&Advances
Employees
StaffAdvance AgainstSalary CurrentAssets Loans &
Advances Advances
RecoverableinCashorKind
CurrentAssets Shortterm
Loans&Advances
Employees
St ff Ad F ll & Fi l C t A t L & C t A t Sh t t Staff Advance Full&Final
Cases
CurrentAssets Loans &
Advances Advances
RecoverableinCashorKind
CurrentAssets Shortterm
Loans&Advances
Employees
Deposit With GSEB Current Assets Loans & Non Current Assets DepositWithGSEB CurrentAssets Loans&
Advances Deposits
NonCurrent Assets
OtherNonCurrentAssets
SecurityDeposits
Security Deposit Current Assets Loans & NonCurrent Assets SecurityDeposit CurrentAssets Loans&
Advances Deposits
Non Current Assets
OtherNonCurrentAssets
SecurityDeposits
DepositWith Suppliers CurrentAssets Loans& NonCurrent Assets Other
Advances Deposits NonCurrentAssets Security
Deposits
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
DepositsWithSalesTax CurrentAssets Loans&
Advances Depositswith
Excise&SalesTax
CurrentAssets Shortterm
Loans&Advances
Deposit/BalanceWithExcise
& Sales Tax &SalesTax
Basic ExciseDuty(PLA) CurrentAssets Loans&
Advances Depositswith
Excise&SalesTax
CurrentAssets Shortterm
Loans&Advances
Deposit/BalanceWithExcise p
&SalesTax
Balancein RG23 CurrentAssets Loans&
Advances Depositswith
CurrentAssets Shortterm
Loans&Advances
Excise&SalesTax Deposit/BalanceWithExcise
&SalesTax
VATABLE Cess CurrentAssets Loans&
Ad D it ith
CurrentAssets Shortterm
L & Ad Advances Depositswith
Excise&SalesTax
Loans&Advances
Deposit/BalanceWithExcise
&SalesTax
State Excise (PLA) Current Assets Loans & Current Assets Shortterm State Excise(PLA) CurrentAssets Loans&
Advances Depositswith
Excise&SalesTax
CurrentAssets Short term
Loans&Advances
Deposit/BalanceWithExcise
&SalesTax
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
MODVATCapitalGoods CurrentAssets Loans&
Advances Depositswith
Excise&SalesTax
CurrentAssets Shortterm
Loans&Advances
Deposit/BalanceWithExcise
& Sales Tax &SalesTax
ServiceTax Recoverable CurrentAssets Loans&
Advances Depositswith
Excise&SalesTax
CurrentAssets Shortterm
Loans&Advances
Deposit/BalanceWithExcise p
&SalesTax
SalesTaxRecoverable CurrentAssets Loans&
Advances Depositswith
CurrentAssets Shortterm
Loans&Advances
Excise&SalesTax Deposit/BalanceWithExcise
&SalesTax
ServiceTaxCENVATCredit CurrentAssets Loans&
Ad D it ith
CurrentAssets Shortterm
L & Ad Advances Depositswith
Excise&SalesTax
Loans&Advances
Deposit/BalanceWithExcise
&SalesTax
VAT Recoverable Current Assets Loans & Current Assets Shortterm VATRecoverable CurrentAssets Loans&
Advances Depositswith
Excise&SalesTax
CurrentAssets Short term
Loans&Advances
Deposit/BalanceWithExcise
&SalesTax
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Advance IncomeTax CurrentAssets Loans&
Advances Advance Payment
ofIncomeTax&WealthTax
CurrentAssets Shortterm
Loans& Advances Advance
PaymentofIncomeTax&
Wealth Tax WealthTax
IncomeTaxDeductedAt
Source
CurrentAssets Loans&
Advances Advance Payment
of Income Tax & Wealth Tax
CurrentAssets Shortterm
Loans& Advances Advance
Payment of Income Tax & ofIncomeTax&WealthTax PaymentofIncomeTax&
WealthTax
MAT CreditEntitlement
Receivable
CurrentAssets Loans&
Advances MATCredit
CurrentAssets Shortterm
Loans&Advances MAT
Entitlement CreditEntitlement
Profit SaleofInvestments Other Income Net
Gain/LossonCurrent
OtherIncome Net
Gain/LossonCurrent
Investments Investments
InterestonIncomeTax
RefundReceived
Other Income
MiscellaneousReceipts
OtherIncome OtherNon
OperatingIncome
MiscellaneousReceipts OtherIncome
MiscellaneousReceipts
OtherIncome OtherNon
OperatingIncome
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Profit Sale of Fixed Assets Other Income Profit on Sale Other Income Profit on Sale Profit Saleof FixedAssets OtherIncome ProfitonSale
ofFixedAssets
OtherIncome ProfitonSale
ofFixedAssets
Increase/DecreaseinFinished
Stock
Increase/Decrease inFinished
Stock
ChangeinInventoriesof
Finished Goods Workin Stock Stock Finished GoodsWork in
ProgressandStockinTrade
JobWorkCharges Manufacturing&Other
Expenses ProcessingCharges
Other Manufacturing
Expenses ProcessingCharges p g g p g g
InternalAuditFees Manufacturing&Other
Expenses Legal&
Professional
OtherExpenses Legal&
Professional
PatentRelatedExpenses Manufacturing&Other
Expenses PatentRelated
Expenses
OtherExpenses Legal&
Professional
DirectorCommission Manufacturing&Other
Expenses Advertisement&
Publicity
OtherExpenses Director
Commission
S l i Gif f i & O h O h SalesPromotion Gifts Manufacturing&Other
Expenses Advertisement&
Publicity
OtherExpenses
Advertisement& Publicity
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ForeignCurrencySwap
Exchange Fluctuations
Manufacturing&Other
Expenses FinancialCharges
FinanceCost Other
BorrowingCost
ForeignExchange Manufacturing&Other FinanceCost Other
FluctuationsFCCB Expenses FinancialCharges BorrowingCost
ForeignExchange
Fluctuations Markto
M k t (MTM) L
Manufacturing&Other
Expenses FinancialCharges
FinanceCost Other
BorrowingCost
Market(MTM)Losses
ForeignExchange
FluctuationsImports
Manufacturing&Other
Expenses FinancialCharges
Other Expenses Foreign
ExchangeFluctuation
ForeignCurrencyRate
DifferenceExports
Manufacturing&Other
Expenses FinancialCharges
Other Expenses Foreign
ExchangeFluctuation
CommissionConsignment
Agent
Manufacturing&Other
Expenses Commission on
OtherExpenses
Commission on Sales Agent Expenses Commissionon
Sales
CommissiononSales
SalesTaxExpenses Manufacturing&Other
Expenses Claims to
OtherExpenses Claimsto
Customer & Other Selling Expenses Claimsto
Customer &OtherSelling
Expenses
Customer &OtherSelling
Expenses
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ExpensesofC&FAgents Manufacturing&Other
Expenses Claimsto
Customer &OtherSelling
Expenses
OtherExpenses Claimsto
Customer &OtherSelling
Expenses
Expenses
SundryDebit/Credit Balances
WrittenOff
Manufacturing&Other
Expenses Miscellaneous
Expenses
OtherExpenses
Miscellaneous Expenses
ListingFees Manufacturing&Other
Expenses Miscellaneous
Expenses
OtherExpenses
Miscellaneous Expenses
AmountRoundedOff Manufacturing&Other
Expenses Miscellaneous
Expenses
OtherExpenses
Miscellaneous Expenses
Provision IncomeTaxForthe
Year
ProvisionForIncomeTax
Expenses
ProvisionForIncomeTaxExp
MATCredit Entitlement
E /I
MATCreditEntitlement
E /I
MATCreditEntitlement
E /I Expense/Income Exp/Income Exp/Income
Meetings&Conference
Expense
Manufacturing&Other
Expenses Advertisement&
Publicity
OtherExpenses
Advertisement&Publicity
BackupSlide
Relatedparty
Partiesareconsideredtoberelatedifatanytimeduringthereportingperiodoneparty
hastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheother
party in making financial and/or operating decisions [AS 18] partyinmakingfinancialand/oroperatingdecisions.[AS18]
Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofan
enterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthe
compositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,
the financial and/or operating policies of the enterprise thefinancialand/oroperatingpoliciesoftheenterprise.
Significantinfluence
Participationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnot
controlofthosepolicies.
BackupSlide
Relatedparty
Partiesareconsideredtoberelatedifatanytimeduringthereportingperiodoneparty
hastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheother
party in making financial and/or operating decisions [AS 18] partyinmakingfinancialand/oroperatingdecisions.[AS18]
Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofan
enterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthe
compositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,
the financial and/or operating policies of the enterprise thefinancialand/oroperatingpoliciesoftheenterprise.
Significantinfluence
Participationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnot
controlofthosepolicies.
BackupSlide
Relatedparty
Partiesareconsideredtoberelatedifatanytimeduringthereportingperiodoneparty
hastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheother
party in making financial and/or operating decisions [AS 18] partyinmakingfinancialand/oroperatingdecisions.[AS18]
Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofan
enterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthe
compositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,
the financial and/or operating policies of the enterprise thefinancialand/oroperatingpoliciesoftheenterprise.
Significantinfluence
Participationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnot
controlofthosepolicies.
BackupSlide
Relatedparty
Partiesareconsideredtoberelatedifatanytimeduringthereportingperiodoneparty
hastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheother
party in making financial and/or operating decisions [AS 18] partyinmakingfinancialand/oroperatingdecisions.[AS18]
Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofan
enterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthe
compositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,
the financial and/or operating policies of the enterprise thefinancialand/oroperatingpoliciesoftheenterprise.
Significantinfluence
Participationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnot
controlofthosepolicies.
BackupSlide
Relatedparty
Partiesareconsideredtoberelatedifatanytimeduringthereportingperiodoneparty
hastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheother
party in making financial and/or operating decisions [AS 18] partyinmakingfinancialand/oroperatingdecisions.[AS18]
Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofan
enterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthe
compositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,
the financial and/or operating policies of the enterprise thefinancialand/oroperatingpoliciesoftheenterprise.
Significantinfluence
Participationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnot
controlofthosepolicies.
DisclosurerequirementsofInvestmentsasperAS 13
BackupSlide
Thefollowinginformationshouldbedisclosedinthefinancialstatements:
(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;
AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue
(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationin
currentandlongterminvestment;
(c)theamountsincludedinprofitandlossstatementfor:
(i) interest dividends (showing separately dividends from subsidiary companies) and (i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and
rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrent
investments.Grossincomeshouldbestated,theamountofincometaxdeductedat
sourcebeingincludedunderAdvanceTaxesPaid;
(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamount
ofsuchinvestments;and
(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarrying
amountofsuchinvestments;;
(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor
theremittanceofincomeandproceedsofdisposal;
(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate
marketvalueofquotedinvestments;
(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe
enterprise.
DisclosurerequirementsofInvestmentsasperAS 13
BackupSlide
Thefollowinginformationshouldbedisclosedinthefinancialstatements:
(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;
AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue
(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationin
currentandlongterminvestment;
(c)theamountsincludedinprofitandlossstatementfor:
(i) interest dividends (showing separately dividends from subsidiary companies) and (i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and
rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrent
investments.Grossincomeshouldbestated,theamountofincometaxdeductedat
sourcebeingincludedunderAdvanceTaxesPaid;
(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamount
ofsuchinvestments;and
(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarrying
amountofsuchinvestments;;
(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor
theremittanceofincomeandproceedsofdisposal;
(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate
marketvalueofquotedinvestments;
(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe
enterprise.
Excisedutydisclosure:
BackupSlide
y
AS 9requiresthattherevenueshouldbedisclosed:
Turnover(Gross) XX ( )
Less:ExciseDuty XX
Turnover(Net) XX
ThisissomewhatdifferentthenasrequiredinrevisedScheduleVIasdiscussedearlier. q
Giventhefactaccountingstandardswillhaveanoverridingeffectoverrevised
ScheduleVIandsoourviewisthatexcisedutyshouldbedeductedfromsalesof
products.
Practicalguidanceonnetgain/lossofforeigncurrencytransactions:
BackupSlide
g g / g y
IntheviewofAS 16whichstatesthatborrowingcosts,mayincludeexchange
differencesarisingfromforeigncurrencyborrowingstotheextentthattheyare
regardedasanadjustmenttointerestcosts.Thus,gainorlossonforeigncurrency
transactionstobeshownunderfinancecostsshouldbelimitedtothisamountonly.
Othergainsandlossshouldbeshownseparatelyunderappropriateheads.
Backupslide
ExamplesofOperatingcycle:
Q 1) BLtdproducesaircraft.Thelengthoftimebetweenfirstpurchasingrawmaterial
[RM]tomakingtheaircraftsandthedatethecompanycompletestheproduction
d d li i 9 th Th i t f th i ft 7 anddeliveryis9months.Thecompanyreceivespaymentfortheaircrafts7
monthsafterthedelivery.
A. Whatisthelengthofoperatingcycle?
B How should it treat its inventory and debtors? B. Howshouldittreatitsinventoryanddebtors?
Backupslide
Examples:
A 1 A) operatingcycleisof16months
B) inventoryanddebtorshouldbeclassifiedascurrent
Backupslide
Examples:
Q 2) RMholdingperiod:3months
WIPholdingperiod:1month
FGholdingperiod:5months
Debtorscollectionperiod:5months
Whatistheoperatingcycle?
Backupslide
Examples:
A 2) Operatingcycleis14months[RM+WIP+FG(holdingperiod)+Debtorscollection
period]
Backupslide
Examples:
Q 3) Canacompanyengagedindiversifiedoperationshavedifferentoperatingcycles
forvariousbusinesslines?
Backupslide
Examples:
A 3) Yes.
ThereisnobarinrevisedScheduleVIforacompanytohavemultiple
operatingcycles
Backupslide
Examples:
Q 4) Immovableinvestmentpropertyexpectedtobesoldwithin12monthsfromthe
reportingdate,howtoclassifythisproperty?
Backupslide
Examples:
A 4) AS 13requiredthatanenterpriseholdinginvestmentshouldbeaccountedfor
thesameaslongterminvestments.Hence,despitethefactitisintendedtobe
soldwithin12monthsfromthereportingdate,sameshallbeclassifiedasnon
current.
Backupslide
Examples:
Q 5) XLtdgivingsecuritydepositofRs15,000forthepurposeofpreparingbalance
sheetasperrevisedScheduleVI,wherethisdepositshallbeclassified?
Backupslide
Examples:
A 5) Theintensionofthecompanyistoseekwhethercompanywantarefundwithin
12monthsfromthereportingdatethencurrentassetelsenoncurrentasset.
Backupslide
Examples:
Q 6) OldscheduleVIrequiresonlycapitalcommitmentshallbedisclosed,however
reviseScheduleVIrequiredallcommitmentsrequirestobedisclosed.Whatisthe
natureofcommitmentstobedisclosedunderrevisedScheduleVI?
Backupslide
Examples:
A 6) Commitmentgenerallyimpliesfutureliabilityforcontractualexpenditure.
Accordingly,allexpensesrelatedtocontractualcommitmentsapartfromcapital
dit i i f l t t t f h f t i l expenditurearisingfromlongtermcontractsforpurchaseofrawmaterial,
employeecontracts,leasecommitments,etc.Thescopeofsuchterminologyis
verywideandmayincludecontractualcommitmentsforpurchaseofinventory,
services, investments,sales,employeecontracts,etc.Onlynoncancellable , , , p y , y
contractsshallbedisclosed.
Backupslide
Examples:
Q 7) RevisedScheduleVIrequiredCapitaladvancestobeclassifiedunderlongterm
loansandadvances;doesitmeanall,includingtherecoverablewithin12months
shallbeclassifiedunderthishead?
Backupslide
Examples:
A 7) Yes
Backupslide
Examples:
Q 8) RevisedScheduleVIdoesnotdefinecashandcashequivalents,doesitmeanwe
havetofollowtherequirementsofthesameasperAS 3?
Backupslide
Examples:
A 8) Yes.
AsAS willprevailoverscheduleVI.Thus,oneshouldchangethediscloseofcash
andbankbalanceassubheadingCashandCashEquivalentsandOtherbank
balances.TheformerheadingwillincludeonlytheasdefinedinAS 3oncash
and cash equivalent and the remaining balances as per later heading andcashequivalentandtheremainingbalancesasperlaterheading.
Backupslide
Examples:
Q 9) Acompanyhasexcessfinishedgoodsinventorythatitdoesnotexpect torealize
withinthecompanysoperatingcycleof15months?
Backupslide
Examples:
A 9) SincesuchFinishedgoodsinventoryisheldprimarilyforthepurposeofbeing
traded,thesameshouldbeclassifiedasCurrent.
Backupslide
Examples:
Q 10) Acompanyhassold10,000tonnes ofsteeltoitscustomer.Thesalecontract
providesforanormalcreditperiodfor3months.Thecompanysoperatingcycleis
6months.However,thecompanydoesnotexpecttoreceivethepaymentwithin
12 months from the reporting date Whether such receivable should be classified 12monthsfromthereportingdate.Whethersuchreceivableshouldbeclassified
underCurrentorNoncurrent?
Backupslide
Examples:
A 10) ThisshouldbeclassifiedasNon currentinBalancesheet.Incase,the
companyexpects torealizetheamountupto 12monthsfromtheBalancesheet
date(thoughbeyondoperatingcycle)thesameshouldbeclassifiedascurrent.