Revised schedule VI

1. REVISED SCHEDULE VI OF
THE COMPANIES ACT, 1956
A Comparison with Old Schedule VI
Mar 10, 2012
1

2. EFFECTIVE DATE
Financial Year commencing on or after 01-
April-2011
Mar 10, 2012
2

3. (REVISED SCHEDULE VI) V/S (ACT
& AS)
‘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.
Mar 10, 2012
3

4. CURRENT AND NON-CURRENT
ASSET
Current
(a) it is expected to be realized in, or is intended for sale
or consumption in, the company’s 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.”
Mar 10, 2012
4

5. CURRENT AND NON-CURRENT
LIABILITY
Current
(a) it is expected to be settled in the company’s 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
Mar 10, 2012
5

6. NOMENCLATURE
EQUITY AND LIABILITIES
Mar 10, 2012
6

7. FORMAT OF BALANCE SHEET
Mar 10, 2012
7
Old Schedule VI Revised Schedule VI
Horizontal or Vertical Vertical Only

8. EQUITY
Mar 10, 2012
8
Old Schedule VI Revised Schedule VI
Earlier no separate disclosure on
the face of balance sheet
Money received against share
warrants
Earlier no separate disclosure on
the face of balance sheet
Share application money pending
allotment

9. DEPOSIT LIABILITY
Old Schedule VI Revised Schedule VI
Deposit liability – no distinction
between long term and short
term.
To be disclosed under the long-
term borrowings unless it has
current maturity in which case to
be grouped under short term
borrowings.
Mar 10, 2012
9

10. FIXED ASSETS
Old Schedule VI Revised Schedule VI
No bifurcation required into
tangible & intangible assets.
To be shown under non-current
assets and it has to be bifurcated
in to Tangible & intangible
assets.
Tangible
Intangible
CWIP
Intangible under development
Mar 10, 2012
10

11. BORROWINGS
Old Schedule VI Revised Schedule VI
Short term & long term
borrowings are grouped together
under the head Loan funds sub-
head Secured / Unsecured
Long term borrowings to be
shown under non-current
liabilities and short term
borrowings to be shown under
current liabilities with separate
disclosure of secured / unsecured
loans.
Period and amount of
continuing default as on the
balance sheet date in repayment
of loans and interest to be
separately specified
Mar 10, 2012
11

12. FINANCE LEASE OBLIGATION
Old Schedule VI Revised Schedule VI
Included in current liabilitiesIncluded in Non-current
liabilities.
However, short term maturities
of Fin Lease obligation to be
grouped under current liabilities
only.
Mar 10, 2012
12

13. DEPOSIT ASSET
Mar 10, 2012
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

14. INVESTMENTS
Mar 10, 2012
14
Old Schedule VI Revised Schedule VI
Both current & non-current
investments to be disclosed
under the head investments
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

15. LOANS & ADVANCES
Mar 10, 2012
15
Old Schedule VI Revised Schedule VI
Loans & Advance are disclosed
along with current assets
Loans & Advances to be 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.

16. NET WORKING CAPITAL
Old Schedule VI Revised Schedule VI
Current assets & Liabilities are
Netted off and Net Working
Capital amount is shown
Assets & Liabilities are to be
bifurcated in to current & Non-
current and to be shown
separately. Hence, net working
capital will not be appearing in
Balance sheet.
Mar 10, 2012
16

17. DEFERRED TAX ASSETS /
LIABILITIES
Mar 10, 2012
17
Old Schedule VI Revised Schedule VI
Deferred Tax assets / liabilities
to be disclosed separately
Deferred Tax assets / liabilities
to be disclosed under non-current
assets / liabilities as the case
may be.
Not to be disclosed as current.

18. CASH & BANK BALANCES
Mar 10, 2012
18
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.

19. LOSS
Mar 10, 2012
19
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.

20. SUNDRY CREDITORS
Mar 10, 2012
20
Old Schedule VI Revised Schedule VI
Creditors to be broken up in to
micro & small suppliers and
other creditors.
No mention of micro & small
enterprise disclosure.
However, it is continued to be
disclosed under Micro, Small and
Medium Enterprises
Development (MSMED) Act,
2006.

21. OTHER CURRENT LIABILITIES
Mar 10, 2012
21
Old Schedule VI Revised Schedule VI
Current maturities of long term
debt need not be disclosed on the
face separately.
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.

22. NOMENCLATURE
“STATEMENT OF PROFIT AND LOSS”
Mar 10, 2012
22

23. Mar 10, 2012
23
Old Schedule VI Revised 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
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
SEPARATE LINE ITEM

24. REVENUES
Mar 10, 2012
24
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.

25. PURCHASES AND CONSUMPTION
Mar 10, 2012
25
Old Schedule VI Revised Schedule VI
Required both value and
quantitative disclosure in respect
of Raw Materials and traded
goods.
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.

26. EMPLOYEE COMPENSATION
Mar 10, 2012
26
Old Schedule VI Revised Schedule VI
Earlier not required separatelyEmployee stock option expense to
be shown separately

27. FINANCE COST
Mar 10, 2012
27
Old Schedule VI Revised Schedule VI
Interest Cost
• Company’s Debentures
• On Fixed Loans
• Paid to Managing Director /
Manager
• Interest Expenses
• Other borrowing costs
• Gain / Loss on foreign currency
translations / transactions
(finance cost portion only – forex
fluctuation on interest paid in
foreign currency)

28. OTHER CHANGES
Mar 10, 2012
28

29. ROUNDING OFF
Old Schedule VI Revised Schedule VI
Turnover of less than Rs. 100 Crs
- R/off to the nearest Hundreds,
thousands 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 less than Rs. 100 Crs
- R/off to the nearest Hundreds,
thousands, lakhs or millions or
decimal thereof
Turnover of Rs. 100 Crs or more -
R/off to the nearest lakhs,
millions or crores, or decimal
thereof
Mar 10, 2012
29

30. COMPARATIVES
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
Mar 10, 2012
30

31. INTERIM FINANCIAL REPORTING
Mar 10, 2012
31
Companies presenting
Condensed interim financial
statements
Companies presenting
Complete set of financial
statements
Company need not comply with
Revised Schedule VI
requirements
Company should comply with
Revised Schedule VI
requirements from Financial
year 2012-13 and onwards only.

32. AUDITOR’S APPROACH -
SUGGESTED
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.
Mar 10, 2012
32

33. TAKE AWAY
Current and Non-Current
Mar 10, 2012
33

34. Mar 10, 2012
34

35. Mar 10, 2012
35

36. Mar 10, 2012
36

37. Mar 10, 2012
37

38. THANK YOU
Mar 10, 2012
38