Haribhakti & Co.

A 1 2 3 4

Profit & Loss Comparison of Revised Schedule VI with Old Schedule VI

Revised Schedule VI Particulars The provisions of this Part shall apply to the income and expenditure account referred to in sub-section (2) of Section 210 of the Act, in like manner as they apply to a statement of profit and loss. In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from sale of products; Old Schedule VI Particulars The provisions of this part shall apply to the income & expenditure account referred to in subsection (2) of section 210 of the Act, in like manner as they apply to a profit and loss account, but subject to the modification of references as specified in that subsection. Remarks Deleted (Marked in Red)

1.

5 6
2.(A)

7
(a) (i)(a)

8
(b) sale of services; other operating revenues; Less: Excise duty. In respect of a finance company, revenue from operations shall include revenue from Interest; and Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable. Finance Costs Finance costs shall be classified as: Interest expense; Other borrowing costs; Applicable net gain/loss on foreign currency transactions and translation. (b) (c) (d)

9 10 11 12

The P & L A/C shall set out the various items relating to of I & E of the Co. arranged under the most convenient heads and in particular, shall disclose the following information in respect of the period covered by the account: Turnover: Aggregate amount of sales, showing amount and quantity of sales of each class of goods separately. In Revised Schedule VI there are Commission paid to sole selling agent within the differenct disclosure requirements meaning of section 294 of the Act for Commission paid to other selling agents. Brokerage and Discount on sales (other than usual trade discount). 1. Company other than a Finance Company 2. Finance Company

(c)

(d) 2.(B)

13 14 15

(a) (b)

16 17 18 19 20 21 22

3 (a) (b) (c)

New Insertion in Schedule VI

Haribhakti & Co.

A 23 24 25 26 27

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

C
Depreciation and amortization expense Other income shall be classified as: Interest Income (in case of a company other than a finance company); Dividend Income; Net gain/loss on sale of investments Other non-operating income (net of expenses directly attributable to such income). Additional Information A Company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:-

New Insertion in Schedule VI

28 29 30

31 32

(i) (a) Employee Benefits Expense [showing separately] : (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses Depreciation and amortization expense;

3 (x) (f) 1. Salaries, wages and bonus 2. Contribution to other funds 3. Workmen and staff welfare expenses (to the extent not adjusted from any of previous provision or reserves.)

Same as old Schedule VI

33
(b)

3 (iv)

The amount provided for depreciation, renewals or diminution in value of fixed assets. Method adopted for making such provision should be given in case if provision is not made as per depreciation charge. Depreciation, renewals or diminution in value of fixed assets. (If no provision is made, fact and quantum of arrears of depreciation u/s. 205(2) to be disclosed).

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Haribhakti & Co.

B
(c)

C
Any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs.1,00,000, whichever is higher; Interest Income; Interest Expense;

F
Amendment in clause 3 (x) (i)

36 37

(d) (e)

3 (v)

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(f) Dividend Income; 3 (xiv)

The amount of interest on companys debentures and other loans for fixed periods, stating separately the amount of interest, if any paid or payable to the managing director, managing agents, secretaries, treasures and the manager, if any. The aggregate amount of the dividends paid, and proposed and stating whether such amounts are subject to deduction of income tax or not.

39 40

(g) (h)

Net gain/ loss on sale of investments; Adjustments to the carrying amount of investments; Net gain or loss on foreign currency transaction and translation (other than considered as finance cost); Payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law matters, (d) for management services, (e) for other services, (f) for reimbursement of expenses; Details of items of exceptional and extraordinary nature;

3 (xii)

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(i)

a.) Profit or losses on investments (extent of profit or loss on account of membership of a partnership firm) (to the extent not adjusted from any previous provision or reserve. b.) Profit or losses in respect of transactions of a New Insertion

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(j)

4B. (a) (b)

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(k)

Payments to the Auditors (Whether as fees, expenses or otherwise for services rendered) As auditor; As adviser, or in any other capacity, in respect of (i) Taxation matters; (ii) Company law matter (iii) Management services; and In any other manner. (b) Shall disclose every material feature, including credits or receipts and debits or expenses in respect of non-recurring or exceptional transactions or transaction of exceptional nature

Same as old Schedule VI

(c) 2

50 51

(l)

Prior period items;

Haribhakti & Co.

A 52 53 54

B
(ii) (a)

D
(ii) (a)

In the case of manufacturing companies,1. Raw materials under broad heads. 2. goods purchased under broad heads.

55 56
(b) In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. In the case of companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads. In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads. (b)

In the case of manufacturing Companies, 1.Item wise breakup of value and quantity of allimportant basic raw materials consumed. (Items valuing 10% or more of the total value of the raw materials consumed shall be shown as a separate item). The intermediates or components procured from other manufacturers may be included in the breakup; (if their list is too large than it should be grouped under suitable heading without mentioning the quantities. 2.Value and quantity of opening and closing stocks of each class of goods produced. In case of trading companies: Value and quantity of purchases, opening and closing stocks of each class of goods should be indicated. In case of service companies gross income derived from services rendered or supplied.

57
(c) (c)

New Terminology used "BROAD HEADS"

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(d)

(d)

In case of Company, which falls under more than one of the categories mentioned in a., b., & c. above, it shall be sufficient that the total amounts are shown in respect of opening and closing stocks, purchases, sales and consumption of raw materials with the value and quantitative break-up and the gross income form the services rendered is shown.

59
(e)

60 61
(iii)

In the case of other companies, gross income derived under broad heads. In the case of all concerns having works in progress, works-in-progress under broad heads.

(e)

In case of other companies, the gross income derived under different heads. Worksinprogress at the commencement and at the end of the accounting period. New Terminology used "BROAD HEADS"

(iii)

62 63

Haribhakti & Co.

A 64

B
(iv) (a)

C
The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance-sheet is made up. The aggregate, if material, of any amounts withdrawn from such reserves.

D
(viii) (a)

E
The aggregate, if material, of any amounts set aside or proposed to set aside, to reserves, but not including provisions made to meet any specific liability, contingency or commitment known to exist at which the balance sheet is made up. The aggregate, if material, of any amounts withdrawn from such reserves.

Same as old Schedule VI

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(b)

(b)

66 67 68

(v) (a)

69
(b)

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(vi)

The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. Expenditure incurred on each of the following items, separately for each item:(a) Consumption of stores and spare parts. (b) Power and fuel. (c) Rent. (d) Repairs to buildings. (e) Repairs to machinery. (g) Insurance . (h) Rates and taxes, excluding, taxes on income. (i) Miscellaneous expenses,

(ix) (a)

The aggregate, if material, of any amounts set aside to provisions made for meeting specific liabilities, contingencies or commitment The aggregate, if material, of any amounts withdrawn from such provisions, as no longer required. Expenditure incurred on each of the following items, separately for each item: (a)Consumption of stores and spare parts (b) Power and fuel (c) Rent. (d) Repairs to buildings. (e) Repairs to machinery. (f)1. Salaries, wages and bonus 2. Contribution to other funds

Same as old Schedule VI

(b)

(x)

72 73 74 75 76 77 78 79

80

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Same as old Schedule VI subject to amnedment in point (x) (i) and 3. Workmen and staff welfare expenses (to the point (x) (f) is covered by point 5 (i) extent not adjusted from any of previous (a) in new revised Schedule VI provision or reserves.) Note 1: information in respect of this item should also be given in the balance sheet under the relevant provision or reserve account. (g) Insurance . (h) Rates and taxes, excluding, taxes on income. (i) Miscellaneous expenses. (Exp. totalling 1% of total revenue of the Company or Rs. 5,000 whichever is higher shall be shown as a separate item.)

84 85 86 87 88 89
(Viii) (vii) a) b) Dividends from subsidiary companies. Provisions for losses of subsidiary companies. The profit and loss account shall also contain by way of a note the following information, namely: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; Expenditure in foreign currency during the financial year on account of royalty, knowhow, professional and consultation fees, interest, and other matters; Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related; Earnings in foreign exchange classified under the following heads, namely:(xiii) (a) (b)

Dividend from subsidiary companies. Provisions for losses of subsidiary companies.

Same as old Schedule VI

4D.

Following information to be included by way of note; Value of imports on CIF basis in respect of

90
a)

(a)

91 92 93 94
b)

(b)

1. raw materials; 2. components and spare parts; 3. capital goods Expenditure in foreign currency for royalty, knowhow, professional and consultation fees, interest and other matters. value of imported raw materials, spare parts and components consumed; value of indigenous raw materials, spare parts and components consumed; and percentage of each to total consumption. Same as old Schedule VI

95
c)

(c)

96
d)

(d)

dividends remitted in foreign currencies; number of non-resident shareholders; number of shares held by them on which dividends are due and the year to which dividends relate.

97
e)

(e)

Earnings in foreign exchange, namely

98

Haribhakti & Co.

C
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 Note:-Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements,.

E
a. Exports (F.O.B. basis) b. Royalty, know-how, c. professional and consultation fees; d. Interest and dividend e. Other income, indicating the nature thereof.

99 100

101 102 103 104

Haribhakti & Co.

A 105 106 107 108 109 110 111

B
2. (a) The P & L A/c-

Removed from Revised Schedule VI Shall be so made out clearly to disclose the result of the working of the company during the period covered by the account The amount of charge for income tax and other Indian taxation on profits imposed elsewhere to the extent of the relief, if any, from Indian 3 (vi) income tax and distinguishing, where practicable, between income tax and other taxation. 3 (vii) Amounts reserved for repayment of share capital/loans. 3 (xi) (a) The amount of income from investment, distinguishing between trade investments and other investments. (b) Other income by way of interest, specifying the nature of the income. (c) The amount of income tax deducted if the gross income is stated under sub-paragraphs a & b above. 3 (xv) Amount, if material by which any items shown in the profit & loss account are affected by any change in the basis of accounting.

Payment to Directorsincluding Managing Directors, managing agents, secretaries, treasurers & Manager, if any by the Company, subsidiary of the Company and any other person for following: Managerial remuneration u/s. 198 of the Act paid or payable during the financial year to the directors (including managing director). a) Expenses reimbursed to the managing agent under section 354. b) Commission or other remuneration payable separately to managing agent or his associate under sections 356, 357 and 358. c) Commission received of receivable under section 359 of the Act by the managing agent or his associate as selling or buying agent of the other concerns in respect of contract entered into such concerns with the company d) The money value of the contracts for the sale or purchase of goods and materials or supply of services, entered into by the company with the managing agent or his associate under section 360 during the financial year. e) Other allowance and commission including guarantee commission (details to be given). f) Any other perquisite or benefits in cash or in kind. (Stating approximate money value where practicable) g) Pension, gratuities, payments from provident funds, in excess of own subscription and interest thereon, compensation for loss of office, retirement consideration, etc.

112
4A.

113 114 115 116 117

Computation of net profit u/s. 349 with details of the commission payable as percentage of profits to the directors including Managing Directors/Manager (if any) should be stated by way of note. In case of manufacturing companies in respect of each class of goods manufactured, detailed quantitative information in regard to: (a) The licensed capacity (where licence is in force) (b) the installed capacity; and (c) the actual production. Except in the case of the first Profit & Loss A/c, the corresponding amounts for the immediately preceding financial year for all items shall also be shown. The requirements in subclause (1) shall, in the case of companies preparing quarterly or half yearly accounts, relate to the profit and loss account for the period which entered on the corresponding date of the previous year.

4C.

5 (a)

118
5 (b)

119