18-Sep-13

REVISED SCHEDULE VI OF THE COMPANIES ACT, 1956

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A Comparison with Old Schedule VI

EFFECTIVE DATE
18-Sep-13

Financial Year commencing on or after 01-April2011

(REVISED SCHEDULE VI)

V/S

(ACT & AS)

18-Sep-13

Act & AS will prevail

Provisions given in the Companies Act, 1956 & AS specified by the Accounting Standard Rules of 2006, has precedence over Revised Schedule VI to the extent the disclosure requirements / treatment of the revised schedule VI is not consistent with the provisions or the AS.

Disclosure as per Revised Schedule VI is in addition to other accounting / disclosure requirements.

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CURRENT AND NON-CURRENT ASSET

18-Sep-13

Current (a) it is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. Non-Current All other assets shall be classified as non-current.

CURRENT AND NON-CURRENT LIABILITY

18-Sep-13

Current (a) it is expected to be settled in the companys normal operating cycle; (b) it is held primarily for the purpose of being traded (c ) it is due to be settled within twelve months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Non-Current All other liabilities shall be classified as non-current

18-Sep-13

NOMENCLATURE EQUITY AND LIABILITIES

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FORMAT OF BALANCE SHEET

18-Sep-13

Old Schedule VI Horizontal or Vertical

Revised Schedule VI Vertical Only

EQUITY
18-Sep-13

Old Schedule VI Earlier no separate disclosure on the face of balance sheet

Revised Schedule VI Money received against share warrants

Earlier no separate disclosure on the face of balance sheet

Share application money pending allotment

DEPOSIT LIABILITY
18-Sep-13

Old Schedule VI Deposit liability no distinction between long term and short term.

Revised Schedule VI To be disclosed under the longterm borrowings unless it has current maturity in which case to be grouped under short term borrowings.

FIXED ASSETS
18-Sep-13

Old Schedule VI No bifurcation required into tangible & intangible assets.

Revised Schedule VI To be shown under non-current assets and it has to be bifurcated in to Tangible & intangible assets.

Tangible Intangible CWIP Intangible under development

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BORROWINGS
18-Sep-13

Old Schedule VI Short term & long term borrowings are grouped together under the head Loan funds sub-head Secured / Unsecured

Revised Schedule VI 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 be separately

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FINANCE LEASE OBLIGATION

18-Sep-13

Old Schedule VI Included in current liabilities

Revised Schedule VI Included in Non-current liabilities. However, short term maturities of Fin Lease obligation to be grouped under current liabilities only.

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DEPOSIT ASSET
18-Sep-13

Old Schedule VI

Revised Schedule VI

Lease deposits are part of loans & advances

Lease deposits to be disclosed as long term loans & advances under the head non-current assets unless they are of current nature

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INVESTMENTS
18-Sep-13

Old Schedule VI Both current & non-current investments to be disclosed under the head investments

Revised Schedule VI Current and non-current investments are to be disclosed separately under current assets & non-current assets respectively.

Investments carried at other than cost should be separately disclosed and the basis of its valuation to be disclosed
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LOANS & ADVANCES

18-Sep-13

Old Schedule VI

Revised Schedule VI

Loans & Advance are disclosed Loans & Advances to be along with current assets broken up in long term & short term and to be disclosed under non-current & current assets respectively.

Loans & Advance to related parties to be disclosed separately.

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NET WORKING CAPITAL

18-Sep-13

Old Schedule VI

Revised Schedule VI

Current assets & Liabilities are Assets & Liabilities are to be Netted off and Net Working Capital bifurcated in to current & Nonamount is shown current and to be shown separately. Hence, net working capital will not be appearing in Balance sheet.

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DEFERRED TAX ASSETS / LIABILITIES

18-Sep-13

Old Schedule VI Deferred Tax assets / liabilities to be disclosed separately

Revised Schedule VI Deferred Tax assets / liabilities to be disclosed under non-current assets / liabilities as the case may be. Not to be disclosed as current.

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CASH & BANK BALANCES

18-Sep-13

Old Schedule VI

Revised Schedule VI

Bank balance to be bifurcated in scheduled banks & others

- Bank balances in relation to earmarked balances, -held as margin money against borrowings, -deposits with more than 12 months maturity,
each of the above to be shown separately.

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LOSS
18-Sep-13

Old Schedule VI

Revised Schedule VI

Debit balance in profit and loss account to be shown under the head Miscellaneous expenditure & losses.

To be shown as negative figure under the head Surplus. Therefore, reserve & surplus balance can go negative.

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SUNDRY CREDITORS
18-Sep-13

Old Schedule VI Creditors to be broken up in to micro & small suppliers and other creditors.

Revised Schedule VI No mention of micro & small enterprise disclosure. However, it is continued to be disclosed under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.

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OTHER CURRENT LIABILITIES

18-Sep-13

Old Schedule VI Current maturities of long term debt need not be disclosed on the face separately.

Revised Schedule VI Current maturities of long term debt to be disclosed under other current liabilities.

Current maturities of finance lease obligation need not be disclosed on the face separately.

Current maturities of finance lease obligation to be disclosed hereunder separately.

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18-Sep-13

NOMENCLATURE STATEMENT OF PROFIT AND LOSS

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SEPARATE LINE ITEM

18-Sep-13

Old Schedule VI
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

Revised Schedule VI
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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REVENUES
18-Sep-13

Old Schedule VI

Revised Schedule VI

Sales for each class of goods to be separately shown indicating the quantities of such sales (Quantitative sales

Quantitative details are done away with.

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PURCHASES AND CONSUMPTION

18-Sep-13

Old Schedule VI Required both value and quantitative disclosure in respect of Raw Materials and traded goods.

Revised Schedule VI Disclosure of quantitative details of goods purchased is no longer required.

However, values to be classified under broad heads.

As per ICAI exposure draft on Revised Schedule VI Quantitative details disclosure is not required.
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EMPLOYEE COMPENSATION
18-Sep-13

Old Schedule VI Earlier not required separately

Revised Schedule VI Employee stock option expense to be shown separately

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FINANCE COST
18-Sep-13

Old Schedule VI Interest Cost Companys Debentures On Fixed Loans Paid to Managing Director / Manager

Revised Schedule VI Interest Expenses Other borrowing costs Gain / Loss on foreign currency translations / transactions (finance cost portion only forex fluctuation on interest paid in foreign currency)

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18-Sep-13

OTHER CHANGES
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ROUNDING OFF
18-Sep-13

Old Schedule VI

Revised Schedule VI

Turnover of less than Rs. 100 Crs - Turnover of less than Rs. 100 Crs R/off to the nearest Hundreds, R/off to the nearest Hundreds, thousands or decimal thereof thousands, lakhs or millions or decimal thereof Turnover of Rs. 100 Crs or more but less than Rs. 500 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof Turnover of Rs. 500 Crs or more R/off to the nearest Hundreds, thousands, lakhs, millions or crores, or decimal thereof Turnover of Rs. 100 Crs or more R/off to the nearest lakhs, millions or crores, or decimal thereof

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COMPARATIVES
18-Sep-13

Comparatives has to be compliant with Revised Schedule VI and amounts need to be given for the financial year 2010-11 in the revised Schedule VI format. First set of financials compliant with revised Schedule VI will be for the year 2011-12
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INTERIM FINANCIAL REPORTING

18-Sep-13

Companies presenting Condensed interim financial statements

Companies presenting Complete set of financial statements

Company need not comply with Company should comply with Revised Schedule VI requirements Revised Schedule VI requirements from Financial year 2012-13 and onwards only.

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AUDITORS APPROACH - SUGGESTED

18-Sep-13

Verify audit evidence which goes to substantiate the expected timelines of realisation of assets or settlement of liabilities to ensure proper bifurcation between current and non-current.
Ask the clients in advance to be prepared with the new format requirements with necessary backup / supporting. Make use of tailored procedures / disclosure checklists to ensure complete disclosure.

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TAKE AWAY
18-Sep-13

Current and Non-Current

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THANK YOU
18-Sep-13

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