Changes in Schedule VI

By: Lavina Bajaj

TITLE
Liabilities and Assets were classified The Liabilities and Assets to be classified under the heading of under the heading of SOURCE

OF FUNDS & APPLICATION OF FUNDS

EQUITY AND LIBILITIES & ASSETS

New Disclosures in Share Capital

y

A reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Shares in in the company held by each shareholder holding more than 5% share specifying the number of share held

New Disclosures in Share Capital

Old Discloser Authorised Capital: 1,00,000 10,00,000 New Discloser Authorised Capital: 1,00,000 10,00,000 Issued & subscribed Capital: 1,00,000 Issued & subscribed Capital: 1,00,000 Share Application: Pending for Allotment No Restriction Share Application: Pending for Allotment

Now terms & conditions of share application money needs to be disclosed as if sufficient balance of Authorised capital is not available.

RESERVES & SURPLUS

Old Schedule VI P&L debit balance was shown under the head Miscellaneous expenditure & losses Revised Schedule VI Debit balance of Profit and Loss Account to be shown as negative figure under the head Surplus. Therefore, reserve & surplus balance can be negative.

Separate disclosure of Current Liability

Old Discloser Earlier Current Liabilities and Provisions are shown by deducting from Current Assets under the Head of APPLICATION OF FUNDS New Discloser Now it is to be shown separately as Non Current Liabilities and Current Liabilities under the Head EQUITY AND LIBILITIES

Criteria for classifying Current Liability

It is expected to be settled in the companys normal operating cycle. y It is held primarily for the purpose of being traded. y It is due to be settled within twelve months after the reporting date; or y The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Other than that all should be classified as Non Current Liabilities
y

Borrowings
Old Schedule VI Revised Schedule VI Short term & long term borrowings are Long term borrowings to be shown grouped together under the head Loan under non-current liabilities and short funds sub-head Secured / Unsecured term borrowings to be shown under current liabilities. Borrowings shall further be sub- classified as Secured and Unsecured.

Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified

Deferred Tax Assets / Liabilities

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

Sundry Creditors
Old Schedule VI Creditors were broken up in to micro & small suppliers and other creditors Revised Schedule VI Classified under Long Term Liabilities as Trade Payables and under current Liabilities.

LONG TERM DEBT CURRENT MATURITY

Old Schedule VI No specific mention for separate disclosure of Current maturities of long term debt Revised Schedule VI Current maturities of long term debt to be disclosed under other current liabilities

Fixed Assets
Old Schedule VI Revised Schedule VI

There was no bifurcation required of tangible & intangible assets on the face of the Balance sheet.

Fixed assets to be shown under noncurrent assets and it has to be bifurcated in to Tangible & intangible assets on the face of the Balance Sheet.

Investments
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 discosed separately under current assets & non-current assets respectively

Criteria for classifying Current Assets

It is expected to be realized in, or is intended for sale or consumption in the companys normal operating cycle. y It is held primarily for the purpose of being traded y It is Expected to be realized within 12 months after reporting date. y It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability foe at least twelve months after the report date. Other than that all should be classified as Non Current Assets.
y

Deposits
Old Schedule VI Lease deposits are part of loans & advances Revised Schedule VI Lease deposits to be disclosed as long term loans & advances under the head non-current assets

Cash & Bank Balances

Old Schedule VI Bank balance to be bifurcated in scheduled banks & others Revised Schedule VI Bank balances in relation to earmarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately.

Loans & Advances

Old Schedule VI Loans & Advance are disclosed alongwith current assets Revised Schedule VI Loans & Advances to be broken up in long term & short term and to be disclosed under non-current & current assets respectively And further bifurcation with capital advances security deposits etc.

PROFIT & LOSS EXPENSES

Old Schedule VI Any item under which expense exceeds one per cent of the total revenue of the company or5,000 which ever is higher; was disclosed separately Revised Schedule VI Any item of income / expense which exceeds one per cent of the revenue from operations or1,00,000, which ever is higher; to be disclosed separately

Finance Cost
Old Schedule VI Finance cost to be classified in fixed loans & other loans Revised Schedule VI Finance cost shall be classified as interest expense, other borrowing costs & Gain / Loss on foreign currency transaction & translation

Rounding off of Figures appearing in financial statement

Old Schedule VI Turnover of less than 100 Crores R/off to the nearest Hundreds, thousands or decimal thereof Turnover of 100 Crores or more but less than500 Crores - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof Revised Schedule VI Turnover of less than 100 Croress R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof Turnover of 100 Croress or more R/off to the nearest lakhs, millions or crores, or decimal thereof

Turnover of 500 Crs or more - R/off to the nearest Hundreds, thousands, lakhs, millions or crores, or decimal thereof

Purchases
Old Schedule VI The purchase made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities thereof. Revised Schedule VI Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted