Revised schedule vi presentation

Presentation on Revised Schedule VI

1. PRESENTATION ON REVISED
SCHEDULE VI

BY RAJ KISHAN VERMA

2. ContentsContents
Contents

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#4,1 Schedule VI to the Companies Act, 1956 (Act), which, prescribes the
format for presentation of Balance Sheet and Statement of Profit and
Loss by companies was introduced in 1960 and is almost as old as the
Act itself.
some of the presentation and disclosure requirements as set out in the
pre-revised Schedule VI appear to have become outdated and do not
appear to synchronise with the objective of a fair presentation of
financial information.
some of the disclosures required by that Schedule such as CIF value
of imports, etc. are quite irrelevant from the perspective of today’s
investor.
8 Sept. 2012

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!"/RR##8#R,,R"R., R"R"R,,R#"-###R
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"1R n R .R R # #"#R R !,"R Vs7R 4R R 8R ""R
+#R R # ! "#R .R R ,4#R nR NTR .,R !,#R
#8R R ,R ".,R %R s!,#R ;0%%R +#R +"##8R .,R T6CnR
4,8R#RT#"1RRRRRRRRRRRRRRRRRRRRRR Furthermore, the current version of Schedule VI does not require a
company to distinguish current assets from assets and current liabilities
from their non-current liabilities. For example, a security deposit which
is likely to be refunded after 10 years from the time of origination is
likely to be classified as Loans and Advances and embedded in the
Current Assets, Loans and Advances category which could potentially
mislead a reader into thinking that all Loans and Advances are current
assets. Some of these limitations persuaded MCA’s move to go ahead
with the implementation of the revised Schedule VI for periods
commencing on or after 1 April 2011 without waiting for IFRS
convergence in India.

8 Sept. 2012

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"8RR"R,,<3,,R###$R1


The Ministry of Corporate Affairs (MCA) has issued revised Schedule VI
which lays down a new format for preparation and presentation of
financial statements by Indian companies for financial years
commencing on or after 1 April 2011.
The revised Schedule VI introduces some significant conceptual
changes such as current/non-current distinction, etc.


8 Sept. 2012

6. 8 Sept. 2012
C C C C C C C C C C
Co notesoT URCoTNOo VE O OO Reos OOe ETe
C C C oC C C C C C C C
NeO sNRC Reos no noNenoT OO
C C C C n tC C
EoneO eReO one UTnTs EU RtonoT
C C Cn CC t
ETe RRNe sTnTs ETe U

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-,"R "#8R ,R =s71R TR +R -R ,2#,R R -R ,"#.#R
!#8RRR",R.R"RR# 1

The revised Schedule VI apply to all companies following Indian
–
GAAP until such companies are required to follow
( )
International Financial Reporting Standards IFRS converged
( )
Indian accounting standards Indian AS
Only vertical form of balance sheet is allowed
Miscellaneous expenditure can no longer be shown as a separate
broad heading under ‘Assets’. It would be required to be reclassified
depending on the nature of each such item.C C C C C C C
U o C o s e e e R s o R s C o
C C C e
n o t e s o T U R C o T N O o V E e R O N T o

Some of the significant aspects of the
:
revised Schedule VI include

7. C C C C C C C C C C
Ene o TneO nosooT Co Ro eReO
C C C C C C C C oC C C
soos OeeoT O nT T seeeR eos ToeOs
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os

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C C C C tC C C C C C C
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C C C C C C C UC C
#$Ro n Co ens eReO on on eRnne Co
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soo sCOO Os o eto
CCCCCCCCC

Information to be mandatorily presented on the face of financial
–
statements limited to only broad and significant items details by
.
way of notes
 -
Part IV of the pre revised Schedule containing balance sheet
.
abstract dispensed with
 –
Format of cash flow statement not prescribed hence companies
(. .,
which are required to present this statement i e other than
)
small and medium sized companies to continue to prepare it as
, .
per AS 3 Cash Flow Statements
 ,
Except for the first Financial year after incorporation the
( )
corresponding amounts comparatives for the immediately

preceding reporting period for all items shown in Financial
.
statement shall also be given

8 Sept. 2012

8. 8 Sept. 2012
C C C C C C C C C C
E Co RRNe UTnTs noNeno RCo e noo
C C UC UC C C C C
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C C C C C C C C C C C C
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
If the Accounting Standards require any change in treatment of
, ,
disclosure including addition amendment substitution or deletion in
/ ,
head sub‐head or any changes Schedule VI shall stand modified
.
accordingly

The disclosure requirements shall be in addition to and NOT in
.
substitution to the disclosure requirements specified in AS
 ,
Similarly all other disclosures as required by the Companies Act

shall be made in the notes to accounts in addition to the
.
requirements set out in Schedule VI
 &
Each item on the BS PL shall be cross‐referenced to any
.
related information in the notes to accounts

9. 8 Sept. 2012
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s/R# R,R+#R# R,R9!R 9R %?R.R ,4R., R
!,"# R,RR *+ %$00$000 + +#4,R#R#8,$R"R-R+R
!","/R"R##R# R"8"#R"R"!!,!,#"R"R"R#R
,.#R@RR" 1RR
Presentation of figures:
Once a unit of measurement is used, it should be used uniformly in the
Financial Statements including Notes to Accounts.
Any item under which income or expenses exceed 1% of revenue from
operations or ` 1,00,000 whichever is higher, shall be shown
separately and distinct item against an appropriate account head in
Profit & Loss statement.
TURNOVER
Amount
( Nearest figure or decimal
)thereof
Less than Rs.100 crores ’, ’ ,
00 000 lakhs millions
.
Rs 100 crores or more
,
lakhs millions or crores

10. 8 Sept. 2012
Part I – Format of Balance SheetC C C VVVVVVVVs
&o Co "
C C C VVVVVVVVVC
(ORo UCoo s
n e R N O n s C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
& o
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s s
C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
C C C C s C C C C C C C C C C C C C C C R R
& ! . ! . /
C C C C C C C C C R R
! . ! . .
C C
C
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E # 0 1 E 2 & 3 ) E ( E ) E E # U
n t C O C
. U C n o C O T o n s N T s
n tC C
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osontos T sNnONs
n tC C C C C
R 4o noRoetoT es sCno nns
n t C C C C C
/ U C n o O e R e o o T e O O o
…………………….
Name of the Company
………………………
Balance Sheet as at
Particulars
Note

As at As at

. / /
No 31 3 12
/ /
31 3 11


.
I EQUITY AND LIABILITIES
( ) ’
1 Shareholders funds
( )
a Share capital
( )
b Reserves and surplus
( )
c Money received against share warrants
( ) 2 Share application money pending allotment

11. 8 Sept. 2012 n e R N O n s C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
& o
C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
s s
C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
C C C C C s C C C C C C C C C C C C C C C R R
& ! . ! . /
C C C C C C C C C R R
! . ! . .
Particulars
Note

As at As at

. / /
No 31 3 12
/ /
31 3 11n t T C
! & R N n n o O e e O e e o s
n t T C C
) on nnes
n t C C C C n t
3 o o n n o T $ O e e O e e o s & o
n tC C C C
R 'Con ) on OeeOeeos
n tC T C
T ) on nteses
n t C
5 " N n n o O e e O e e o s
n tC T C
UCn on nnes
n tC C
nTo Oos
n tC C C
R 'Con RNnno OeeOeeos
n tC T C
T UCn on nteses
C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C ' )
( ) -
3 Non current liabilities
( ) -
a Long term borrowings
( ) ( )
b Deferred tax liabilities Net
( )
c Other Long term liabilities
( ) -
d Long term provisions
( )
4 Current liabilities
( ) -
a Short term borrowings
( )
b Trade payables
( )
c Other current liabilities
( ) -
d Short term provisions
TOTAL

12. 8 Sept. 2012s C
E E U U # U
T C
& R N n n o s s o s
n tCn tC C
. e$oT ssos
CCCCCCCCCC n t C
e eOo ssos
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CCCCCCCCCC n t C T T
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CCCCCCCCCC n t C C C
et EeOo ssos NTon TotoOo
CCCCC
.
II ASSETS
-
Non current assets
( ) ( )
1 a Fixed assets
()
i Tangible assets
( )
ii Intangible assets
( ) - -
iii Capital work in progress
( )
iv Intangible assets under development
n e R N O n s C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
& o
C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
s s
C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C
C C C C C s C C C C C C C C C C C C C C C R R
& ! . ! . /
C C C C C C C C C R R
! . ! . .
Particulars
Note

As at As at

. / /
No 31 3 12
/ /
31 3 11

13. 8 Sept. 2012 C o n t e s T C o U
R N n O

V U C n V U C n

C o o
R N E E
o o
E E
Particulars
Note

As at As at

. / /
No 31 3 12
/ /
31 3 11n t e
RN esooOn tOUnOnU
n t n t
e OOooO nC CUUOnU On
n t e
N nOo TNCU C CCeOU
n t e
O nOo N esooOn CUUOnU
n t
s o o O n C U U O n U
n t
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n t
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n t e
O !Non nOo TNCU C CCeOU
n t
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V
( ) -
b Non current investments
( ) ( )
c Deferred tax assets net
( ) -
d Long term loans and advances
( ) -
e Other non current assets
( )
2 Current assets
( )
a Current investments
( )
b Inventories
( )
c Trade receivables
( )
d Cash and cash equivalents
( ) -
e Short term loans and advances
( )
f Other current assets

TOTAL

14. 8 Sept. 2012 CCo nttesto nTUo CRnNRCRsReto sOo Neo VCnttREReUo RTsOo VeTso nTUo TOTVeTso
RtoORUeto teECoRTEOnsROTo nNOsoseo oORToVnRsnCoeeVseUosOo
Neo tessCeUenCRteUo RsRTo o OTsto EOo seo NnCnTVeo teeso Unseo EOo
sOteoteUoRToCOTseoOensROTt
All assets and liabilities to be classified into current and non-current.
This provides useful information about the working capital expected to
be settled/realised within 12 months from the balance sheet date from
those used in long-term operations.eTenCo TtsVsROTtoEOo!nCnTVeo"ees
General Instructions for Balance Sheet

15. V

T t C t T t n " U C T T O e T C U U t t O C U e s o o O n

# O

t n U C n t U t O U

C "
s
N n O N T T N # t e o t n O o t C
T

tn tU

O$OenO nN O UOnnTO
U
t nO Ontn" U

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T
R
tn tU OT $otCotT" No nO $so$NUO N Ot noCO
T

tn tU sO nN O UOnnTO #tnt

n#OTO NnU CnOo nO oO$Nont
CnO R
No
T

nO Ontn" NOU Nn CO C

seNtntNCT otn nN OOo

UOnnTOOn N nO TtCtTtn" No Cn TOCUn n#OTO NnU CnOo nO

oO$Nont CnO
C N
OoU N C TtCtTtn" nCn eNsT Cn nO N$ntN N nO
N
eNsnOo$Con" oOUsTn t tnU UOnnTOOn " nO tUUsO N O stn"
C
tUnosOnU N Nn COen tnU eTCUUtteCntN
A

liability shall be classified as current

when

it satisfies

any
:
of the following criteria

it is

expected to be settled
’
in the entitys

normal operating cycle
;
 ;
it is held primarily for the purpose of being traded

it is due to be settled within

twelve months after the reporting
date;
or

the entity 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
8 Sept. 2012

16. 8 Sept. 2012 ContesTCoURRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR Conte
ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss
#OCURToeROUo$no%nseRnCtoooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo&ooo
OTst
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(OUVsROToV)VCeoooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo*&ooOTsto
o
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o
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Conte
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NVVOsEesoCnsOnO
Particulars Months

Holding period Raw Materials 5
months
Holding period of finished products 4.5 months
Production cycle 0.5 months

Collection period of trade receivables 3 months
Payment period of trade payables 3 months

Gross Operating Cycle 13
Months
Operating cycle means gross operating cycle. Payment period for trade
payable is not deducted.

17. s
% C $ T O
C
V eN$C" CU nC&O C TNC #te tU oO$C"CTO N OC
N N
'N#OOo CUO N nO $CUn O$OotOeO tn tU Nn O$OenO nCn nO
C
TOOo #tTT OC nO oO$C"On #tnt On NnU
s
V U # O o

!teO nO eN$C" NOU Nn CO C

seNtntNCT otn nN OOo

nO UOnnTOOn N TNC No Cn TOCUn NnU CnOo nO oO$Nont
CnO N C
tn #tTT eTCUUt" nO TNC CU esooOn tU tU OU$tnO nO Cen
N
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C
TOOo #tTT OC nO oO$C"On #tnt nO On NnU
:
Example 1
.
A company has taken a loan which is repayable on demand
, ,
However based on the past experience it is not expected that the
.
lender will demand the repayment within next 12 months
:
Answer 1

Since the company does not have an

unconditional right to defer

the settlement of loan for at least 12 months after the reporting
date, .
it will classify the loan as current This is despite the fact
,
that based on the past experience it is not expected that the
.
lender will demand the repayment within the next 12 months
8 Sept. 2012

18. . s
% C $ T O
C
N$C" ( CU nC&O C ) "OCo TNC O TNC eNnCtU eOonCt
N C CN C
On eNOCnU O tTt N sConOoT" tNoCntN O eN$C"
N
OCsTnO t tTt N Use tNoCntN t nO $oOtNsU sConOo #tn
C N
nO OOen nCn TNC CU OeNO oO$C"CTO N OC 'N#OOo
N
CUO N nO $CUn O$OotOeO nO CCOOn OTtOOU nCn OCsTn
C
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s
V U # O o

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N O UC
UOnnTOOn nO eTCUUtteCntN #NsT O sooOn

'N#OOo CU $Oo nO
N
stCeO NnO tUUsO " nO V eNUtOot nCn nO $oCenteCT

t$TteCntNU N Use tNo oOCe CoO OTttTO t nO tC
N O
UeOCotN C Ontn" eNsT eNntsO nN eTCUUt" Use TNC CU RN
UC
sooOn
:
Example 2
.
Company B has taken a 5 year loan The loan contains certain
, . ., .
debt covenants e g filing of quarterly information The company
,
defaulted in filing of such information in the previous quarter with
. ,
the effect that loan has become repayable on demand However
,
based on the past experience the management believes that default
.
is minor and the bank will not demand the repayment of loan
:
Answer 2

If the borrower does not have unconditional right to differ the
, ‘ ’.
settlement the classification would be Current

However as per the
,
guidance note issued by the ICAI considering that the practical

implications of such minor breach are negligible in the Indian
, ‘
scenario an entity could continue to classify such loan as Non
’.
Current
8 Sept. 2012

19. -nCeo,.o-CO)eeoNeTeERsoONCRnsROTtoRToVeTsonTUoTOTVeTso
VnseORet
Example 3: Employee benefit obligations in current and non-current
categories. s
VU#Oo E
N CN
tCtTtn" nN#Co NsU One

$C"CTO #tnt NO "OCo oN nO
C
CTCeO UOOn CnO tU eTCUUttO CU esooOn

eCUO N

CeessTCnO TOCO
N
NsnUnCt CU N nO oO$Nont CnO

nO O$TN"OOU CO CToOC" OCoO nO otn nN CCtT nO TOCO

C nO" CoO OntnTO nN CCtT nO TOCO Cn C" ntO sot nO
C N
"OCo 'OeO tn tU tUeTNUO CU C
C
esooOn TtCtTtn"

*OCot
e
sO $NUn O$TN"On OOtn NTtCntNU
N
CNsn sO

No $C"On nN nO s #tnt NnU eoOCnO No ntU $so$NUO
C
tU noOCnO CU esooOn TtCtTtn"
:
Answer 3
, .,
Liability toward bonus etc

payable within one year from the
.
balance sheet date is classified as current

In case of

accumulated leave
,
outstanding as on the reporting date

the employees have already earned the right to avail the leave

and they are entitled to avail the leave at any time during the
. ,
year Hence it is disclosed as a
.
current liability

Regarding
-
funded post employment benefit obligations
,
amount due

for payment to the fund within 12 months created for this purpose
.
is treated as current liability
8 Sept. 2012

20. 8 Sept. 2012
*OCot
e N
ssO $NUn O$TN"On OOtn NTtCntNU

C

eN$C" #tTT CO UOnnTOOn NTtCntN Cn nO CTCeO UOOn CnO

No #tnt NnU No O$TN"OOU Use CU nNUO

#N CO

CToOC" oOUtO No CoO O$OenO nN oOUt

No CoO sO No
C
oOntoOOn #tnt nO On NnU oN nO CTCeO UOOn CnO
N
sU nO CNsn N NTtCntN CnnotsnCTO nN nOUO O$TN"OOU tU
C
C esooOn TtCtTtn" O oOCtt CNsn CnnotsnCTO nN NnOo
N
O$TN"OOU #N CoO Tt&OT" nN eNntsO t nO UOoteOU No nO On
N e C
NnU tU eTCUUttO CU N esooOn TtCtTtn"

Regarding
- ,
unfunded post employment benefit obligations

a

company will have settlement obligation at the balance sheet date

or within 12 months for employees such as those

who have

already resigned or are expected to resign

or are due for
.
retirement within the next 12 months from the balance sheet date
,
Thus the amount of obligation attributable to these employees is
.
a current liability The remaining amount attributable to other
,
employees who are likely to continue in the services for the next
, - .
12 months is classified as non current liability

21. • s
%C$TO +
e
,OnOo eC$tnCT CCeOU CTUN OO nN O tsoeCnO On#OO N
C
esooOn C esooOn eCnONotOU
s
VU#Oo +
V
C
C$tnCT CCeO tU Nn O$OenO nN O oOCTtUO t eCU
V
e
O" CoO tO No $oNesoOOn N tO CUUOnU #te CoO N
C
esooOn CUUOnU
V
C
'OeO UNsT O eTCUUttO CU N esooOn
:
Example 4
-
Whether capital advances also need to be bifurcated between non
.
current and current categories
:
Answer 4
 .
Capital advance is not expected to be realised in cash
 -
They are given for procurement of fixed assets which are non
.
current assets
 .
Hence should be classified as non current
8 Sept. 2012

22. 8 Sept. 2012-nCeo&.
o nTEnVsRTo VOnT)o Rso no TOnCo OensRTo V)VCeo OEo /o OTsto
Reto no COnTo sOo no tRtseo VOTVeTo RVo Rto EnVRTo CR0RURs)o ONCeo eo
COnToRtoen)nNCeo&oOTstonEseoseoeOsRToUnse
Tteo&.
RRTo OEo tVo COnTto Rto TOso no nso OEo TOnCo OensRTo V)VCeo OEo seo
VOnT)o 1se2o seo COnTo Rto TOso eCUo EOo seo Oteo OEo NeRTo snUeU2o
TOo Rto Rso Vnto Oo Vnto e0RnCeTso eo COnTo tOCUo Neo VCnttREReUo nto TOT
VeTs
Example 5:
A manufacturing company with a normal operating cycle of 18 months
gives a loan to a sister concern which is facing liquidity problem. The
loan is repayable 15 months after the reporting date.
Answer 5:
Giving of such loans is not a part of normal operating cycle of the
company. Further, the loan is not held for the purpose of being traded,
nor is it cash or cash equivalent. The loan should be classified as non-
current.

23. 8 Sept. 2012 s
%C$TO -
C
N$C" V tU t nO sUtOUU N $oNset #tOU O

CsCensot $oNeOUU OnCtTU nO tOnNo" nN O UnNoO t

U$OettO eNtntNU No C OnOO $OotN N ntO

sUsCTT" O"N
N
n#OTO NnU UN CU nN CetOO nO OUtoO TOOT N Cnsotn"

C
eNTNso C nCUnO ,OnOo nO tOnNo" N #tOU $Ot Cnsotn"
O U
CU Cn nO CTCeO UOOn CnO UNsT O eNUtOoO CU esooOn No
O e U C
N esooOn No nO $so$NUO N *OtUO !eOsTO . /
:
Example 6
.
Company A is in the business of producing wines The

manufacturing process entails the inventory to be stored in

specified conditions for an extended period of time

usually beyond
,
twelve months so as to achieve the desired level of maturity

.
colour and taste Whether the inventory of wines pending maturity
‘ ’
as at the balance sheet date should be considered as current or
‘ - ’ .
non current for the purpose of Revised Schedule VI ?

24. 8 Sept. 2012 s
VU#Oo -

V CUUOn UCTT O eTCUUttO CU esooOn

#O tn

O$OenO nN O

oOCTt0O
N N U
t No tU tnOO No UCTO No eNUs$ntN t nO Ontn" U
C
NoCT N$OoCnt e"eTO


$OoCnt e"eTO

tU nO ntO On#OO nO Ce stUtntN N CUUOnU No
C
$oNeOUUt C nOto oOCTt0CntN t eCU No eCU O stCTOnU

nO $oOUOn eCUO
N N
nO N$OoCnt e"eTO tU NoO nC NnU

OeO tOnNo" N #tOU

#NsT O eTCUUttO CU esooOn OO

nNs nO tOnNo" tU Nn O$OenO nN O oOCTt0O No eNUsO
C
#tnt n#OTO NnU CnOo oO$Nont CnO
N
,OoO nO NoCT N$OoCnt e"eTO eCNn O tOnttO tn tU
C
CUUsO nN CO C soCntN N NnU
:
Answer 6

An asset shall be classified as current

when it

expected to be

realized
, , ’
in or is intended for sale or consumption in the entitys
.
normal operating cycle


Operating cycle

is the time between the acquisition of assets for
.
processing and their realization in cash or cash equivalents

In the present case
, ,
the operating cycle is more than 12 months

hence inventory of wines

would be classified as current even

though the inventory is not expected to be realized or consumed
.
within twelve months after reporting date
,
Where the normal operating cycle cannot be identified it is
.
assumed to have a duration of 12 months

25. 8 Sept. 2012 C C C C C C C C C
C o n t e s T U R R s n s o T n o n N t t O s e n s T V R s e E o e t e o
o C C C C
e N U t N o R t e T R e
C C n
n o t V s t T
C C C
U
t
C C C
tEoTEssUnsoT o eNUte
C C C C C C C
onenUTRsTV Un nNt tVsTTsTV UTR Un nNt
Ce C C C C C sC
tTR sRUTEt Cont tEo tTRe RseEoet o U oTne
t
C C C C C C C C C C C
C t o eNUte NtR sT te!tEn o tUEN EUee " NoRsTV
C C C C
Eo !UT" o ns Unt NoRsTV Eo !UT"
C C C C C
sTERsTV eNUte NtR "
C C C C C C C C C C C
o " eesRsUste o UeeoEsUnte o nNt NoRsTV Eo !UT" o nNt
C C C C
ns Unt NoRsTV Eo !UT" sT UVVtVUnt
t
TC C C C C
Co o eNUte NtR "
C C C C C UC
tUEN eNUtNoRt NoRsTV ot nNUT #
C C C C C C C C C C C
eNUte Ue oT UUTEt eNttn RUnt UTR o tUEN EUee o eNUte
T
t
C C
NUte tettR
C C C CRC
o seet TRt EoTnUEne Eo sn tTne
t
C TC C C C
VVtVUnt To UTR EUee o
C C CN C C
eNUte oVNn UE$ o # "tUe
)
1 Notes in addition to the existing disclosures for
’
shareholders funds
:
to be given
)
a SHARE CAPITAL

Reconciliation of shares

outstanding at the beginning and at the
[ ]
end Guidance Note recommends disclosure of amounts

Number of shares held in respect of each class by holding

company or ultimate holding company

including shares held by

or by subsidiaries or associates of the holding company or the

ultimate holding company in aggregate
.
No of shares held by
%
each shareholder holding more than 5

shares as on balance sheet date and for each class of shares
.

Shares reserved
/
for issue under contracts commitments
 .
Aggregate no and class of
( )
shares bought back for 5 years

26. 8 Sept. 2012t
C
t e
C C
o UT"
C C C R C
etEsnste EoTtnst sTno t%sn" !tttTEt eNUte
C
C C C C
seetR UoTV &snN nNt
C C C C C C
tUsten RUnt o EoTtesoT sT RteEtTRsTV
oRt OC C C C C C T
enUnsTV o nNt UnNten eEN RUnt
t
C C C C C C C C
'tnUse !tnUsTsTV no UVVtVUnt T t UTR EUee o
C C
eNUte UonntR
C C C C OC C C C C C
o EoTesRtUnsoT onNt nNUT EUeN oTe eNUte UTR eNUte oVNn
C
UE$
C C C C C C C C C C
&s t RseEoetR oT" s eEN UT ttTn NUe oEEtR
C C
RsTV U
C C C C C C C C C C
!tsoR o # "tUe s tRsUnt" !tEtRsTV nNt UUTEt eNttn RUnt
t
C C C C N C C C C C C
'seEoet o T!UsR EUe " eNo&sTV UVVtVUnt o Ut o
C C C C C C C C C C C
T!UsR EUe " 'stEnoe UTR (sEte o nNt o !UT" Ue RtsTtR
C C
" nNt En
C C C C
) C ' * *
t
C C C C V C C C C C C C
T" Rtsn UUTEt sT UEEoTn &s t RseEoetR TRt nNt
C
NtUR
E C C oC
tette UTR e!e
t
C C C
NUt o!nsoTe onenUTRsTV
C C C C C C
no t RseEoetR TRt tette UTR
CC
e!e

Terms

of any
/
securities convertible into equity preference shares


issued along with the

earliest date of conversion in descending
order, .
starting from the farthest such date

Details pertaining to aggregate number and class of

shares allotted
,
for consideration other than cash bonus shares and shares bought

back

will be disclosed only if such an event has occurred

during a

period of 5 years immediately preceding the balance sheet date
 (
Disclosure of unpaid calls by showing aggregate of value of

unpaid calls by Directors and Officers of the Company as defined
)
by the Act
)
b RESERVE AND SURPLUS
 &
Any debit balance in P L account will be disclosed under the

head
‘ ’
Reserves and surplus

Share options outstanding

to be disclosed under reserves and

surplus

27. 8 Sept. 2012 C C C C C C
E + ( C , ) ' C - C
C C C C C C C C C C C
+oTt" tEtstR UVUsTen eNUt &UUTne no t RseEoetR Ue U et!UUnt
C C C C C E oC oC TC C C C C C
sTt snt Ue !Un o eNUtNoRte TRe ./ UTsTV t NUt
C C C C N C C O C
TonsstR TRt nNt o !UTste EEoTnsTV nUTRURe te .//0
C EC C oC C C E C C C C C
RtsTte eNUt &UUTne Ue sTUTEsU sTen tTne &NsEN Vst nNt
C C C C C ETC OC
NoRt sVNn no UE%st t%sn" eNUte Ne
C C C
eNUt &UUTne Ut
C C C C C C C C C C
TonNsTV n nNt U oTn &NsEN ns Unt" o !Un o eNUtNoRte
TC C C C C CC C C COC C C C
TRe sTEt nNt eNUte Ut UonntR UVUsTen nNt eU t nNtet Ut Ton
C C C C C C C C C C C C
ttEntR Ue !Un o NUt U!snU n Ue U et!UUnt sTt snt
E C C C C oCT
+oTt" tEtstR UVUsTen eNUt &UUTne
)
c MONEY RECEIVEDE AGAINEST SHARE WARRANTS

Money received against share warrants to be disclosed as a separate
‘ ’ ’ .
line item as part of shareholders funds AS 20 Earning Per Share
( ) ,
notified under the Companies Accounting Standards Rules 2006
‘ ’ ‘
defines share warrants as financial instruments which give the
‘. ,
holder right to acquire equity shares Thus

share warrants are

nothing but the amount which ultimately form part of shareholders
. ,
funds Since the shares are allotted against the same these are not
– -
reflected as part of Share Capital but as a separate line item
‘ ’ .
Money received against share warrants

28. 8 Sept. 2012 Co C C C C
( C + ( C , C ' C ( + C
t
C C C C C C C C C C
Nt U!!sEUnsoT oTt" Ton tOEttRsTV nNt EU!snU ottR o seeUTEt
C C C C C C C C C
UTR no nNt tOntTn Ton tTRUt &s t eNo&T
C C C
et!UUnt" oT nNt
C C C C
UEt o nNt UUTEt eNttn
t
'seEoet

C C
t e UTR EoTRsnsoTe

TC C C C C C C OC C
Co o eNUte no t seetR UTR !t s s UT"

C C C C C C
tsoR " &NsEN eNUte no t UonntR

C C C C
-NtnNt esEstTn UnNosetR EU!snU tOsene

C C C OC C C C C
tsoR o &NsEN onenUTRsTV t"oTR nNt ens!UntR Uon tTn
!tsoR

C C C C
tUeoTe o RtU"e sT Uon tTn

C C C C C C
Tntten UEEtR oT U oTn Rt o tTR
t
C C C
Nt U oTn sT
C C C
tOEtee o eeEs!nsoT
C C C
o s nNt
C C
t%st tTne o
C C C C
sTs eeEs!nsoT Ut Ton tn
C C C C C
&s t eNo&T TRt
E C
(nNt
C
EtTn sUssnste
o
2)
SHARE APPLICATION MONEY PENDING ALLOTMENT

The application money not exceeding the capital offered for issuance

and to the extent not refundable will be shown

separately on the

face of the balance sheet
Disclose
•
Terms and conditions
•. ,
No of shares to be issued and premium if any
•
Period by which shares to be allotted
•
Whether sufficient authorised capital exists
• ,
Period for which outstanding beyond the stipulated allotment
period
•
Reasons for delays in allotment
•
Interest accrued on amount due for refund

The amount in

excess of subscription

or if the

requirements of

minimum subscription are not met

will be shown under
‘
Other

current liabilities
’

29. 8 Sept. 2012nCo C C C C C C C C
C o n t e s T U R R s n s o T n o n N t t O s e n s T V R s e E o e t e o
C C
C o T
C C
E t T n s U s s n s t e
C C n
n o t V s t T
tCoesTUoRNOVEosVVsTUo
t
ContestTUTnRNOTeVE RE nRTOTeRE ORTsRTOeE oOE TE onVE nNtnE
oNnRE oE neRTnReE tNTE nE tTOTenE oOtTOE oE RNORsonTOeonE
eRORnEOoEORTeREOTtTRonsonTOeonEtRT
t
TOotsoNnREoEonRnNoNeEtTNReEonECnTETTREtRTEnEoneEntE
nRTOTeR
t
oneE NOnRTTtE UE !tOTRoOeE oOE !E Nn"TE RTE OTeTnRE OT#NOTTnRE
oEUE!tOTRoOeEoOEnTOeEon$
t
C C C C C C
1oUT1 NUe ttT etR sT U
C C C C C C C
ot VtTtsE etTet UTR se Ton tensEntR
C C
s$t sT (
C C C C C R C C C
no oo&sTVe o UT$e sTUTEsU sTensnnsoTe UTR
TC OC C C C C C C C C
RttTnte tTEt RtnUse o RtUn sT t!U" tTn o oUTe UTR
C C C C C C C C C C C C
sTntten TttR no t RseEoetR o tUEN o nNt snt e eEN Ue
C
RtttR
C OC OC C C
!U" tTn sUssn" Rt!oesn sTUTEt tUet osVUnsoT
OC C C C
tnE EottR TRt
C C ET
nNt NtUR 12oo&sTVe
3)
Notes in addition to the existing disclosures for
–
Non

current liabilities
:
to be given
a) LONG –TERM BORROWING
Bonds/debentures, with interest rate/terms for each loan, including
amount of instalments due (in decreasing order of maturity/conversion
starting from farthest redemption/conversion date).
Period/amount of continuous defaults on Balance Sheet date in loans and
interest.
Loans guaranteed by 'directors or others' unlike the present requirement
of by 'directors or managers only‘.

'Loan' has been used in a

more generic sense and is not restricted

like in CARO
/
to borrowings from banks financial institutions and
. ,
debentures Hence details of default in repayment of loans and

interest need to be disclosed for each of the items such as

deferred
, ,
payment liability deposit finance lease obligation
,
etc covered under
‘. the head 'Borrowings

30. 8 Sept. 2012%oNERTE&'(EeENeTtE RoEtTOTnRERTOe VE)VE onRnNnEtTNRE nE
eTEoEon*RTOEUoOOonEntE tTNR EnEeTEoEeoOR*RTOEUoOOonVE
RTEOT#NOTTnREeERoEteoeTEtTNRE !eEonERTEUnTEeTTREtRT !EnEUoRE
RTEeTeE(nEtTNRERREtE oNOOTtEtNOnERTETOEntEeE
eNUeT#NTnREtTEootE UToOTERTETntEoERTETOEeEnoREOT#NOTtERoEUTE
teoeTt
CosNOVoesTUoNOVEoeeNO o
oooooo otoot oto

E %OtTEUTE

EE +RTOe
t
&TnnE oE $ROtTE UTE ,E (oNnRE tNTE onE oNnRE oE ooteE NOeTtE
oOEeTOTEOTTTtEnERTEnoOEoNOeTEoERTEUNenTeeE
t
(oNnR o tNTeE NntTOE onRORNE oURonE noE onTOE nNtTtE RnE ROtTE
UT
Though the MCA has used two different terms, viz., continuing default (in
case of long-term borrowing) and default (in case of short-term borrowing),
the requirement is to disclose default 'as on the balance sheet date' in both
the cases. Any default that had occurred during the year and was
subsequently made good before the end of the year is not required to be
disclosed.
b) OTHER LONG TERM LIABLITIES
It shall be classified as
 Trade payable
 Others
Meaning of ‘trade payable : Amount due on account of goods purchased
or service received in the normal course of the business.
Amount dues under contractual obligation no longer included within trade
payable.

31. 8 Sept. 2012C C C C C C C C C C C
EN snt e U" sTERt Rte !U"Ut sT te!tEn o enUnno"
C C C C C OC C C C OC
osVUnsoTe s$t EoTnsnsoT no 3 !ENUete o sOtR Ueetne
C C OC C C C C
EoTnUEnU" ts eUt tO!tTete sTntten UEEtR oT nURt
OC TC C C C C C C E oC
!U"Ute tnE EN !U"Ute eNoR t EUeesstR Ue onNte
C C C C C T
UTR tUEN eEN snt e RseEoetR TUnt &set
C C C
R ( C + ( ) ( C
nC
CCCC C C C CC C n
Nt U oTne eNU t EUeesstR Ue
t
CC C C C T
osesoT o t !o"tt tTtsne
t
CC CN C T
(nNte e!tEs" TUnt
C C C C C C C C T
(nNt oTV nt !osesoT sTERte !osesoT o &UUTnste tnE

Such items may include dues payable in respect of statutory
, ,
obligations like contribution to PF purchases of fixed assets
,
contractually reimbursable expenses interest accrued on trade
, . ‘ ’
payables etc Such payables should be classified as others
- .
and each such items disclosed nature wise
) -
d LONG TERM PROVISIONS
:
:
The amounts shall be classified as
 .
Provision for employee benefits
 ( ).
Others specify nature
.
Other long term provision includes provision for warranties etc

32. 8 Sept. 2012

33. 8 Sept. 2012 C
E
sNOVo!"VVOTNoeeNOo
E E E E +RTOENOOTnREURTeEOTEOT#NOTtE RoEUTEeNU*eeTtEnERTEnoRTeEnRoE
EEEERTEoonERToOTe,

EE 'NOOTnRERNORTeEoEon*RTOEtTUR

EE 'NOOTnRERNORTeEoEnnTETeTEoURone

EE -nRTOTeREONTtEUNREnoREtNTEonEUoOOone

EE -nRTOTeREONTtEntEtNTEonEUoOOone

EE -noTEOTTTtEnEtnT

EE .ntEttTnte

(RonE onTE OTTTtE oOE oRTnRE oE eTNORTeE ntE E E tNTE oOE
OTNntEntEnRTOTeREONTtERTOTon

EE .ntERNOTtEtToeReEntEnRTOTeREONTtERTOTon

EE .ntERNOTtEtTUTnRNOTeEntEnRTOTeREONTtERTOTon

EE so#t$to%#$&'o&t(C)
)
c
OTHER CURRENT LIABLITIES
Other current liabilities are required to be sub-classified in the notes into
the following categories:
 Current maturities of long-term debt
 Current maturities of finance lease obligations
 Interest accrued but not due on borrowings
 Interest accrued and due on borrowings
 Income received in advance
 Unpaid dividends
Application money received for allotment of securities and due for
refund and interest accrued thereon
 Unpaid matured deposits and interest accrued thereon
 Unpaid matured debentures and interest accrued thereon
 Other payables (specifying nature).

34. 8 Sept. 2012so#t$t /EoNtEnNtTEoNnReEnERTEnRNOTEoEeRRNRoOEtNTeEeNE
eERotnER0TeVEeTOTER0VETR
%OtTE 1ToeRE ntE TNORE 1ToeRE E OTE noRE nE RTE nRNOTE oE UoOOonE
eoNtEUTEeeTtEeTORTENntTOE+RTOE2on*NOOTnRs'NOOTnREURTe
CosVN*NOVEo+Vs,sTo
E E E E E "TE on*RTOE OoeoneVE eoOR*RTOE OoeoneE OTE eoE OT#NOTtE RoE UTE
eeTtEEnERTEnoRTeEnRoERoERToOTe,

EEE OoeoneEoOEToTTEUTnTRe

EEEEEE so%#$&'o&t(C

+RTOE nNtTE E OoeonE oRTOE RnE OoeonE oOE ToTTE UTnTReE eNE
eE OoeonE oOE ttTntVE OoeonE oOE R0RonVE OoeonE oOE OOnRTeVE
TR
Other payables’ would include amounts in the nature of statutory dues such
as withholding taxes, service tax, etc.
Trade Deposit and Security Deposit which are not in the nature of borrowing
should be classified separately under Other Non-current/Current liabilities.
d) SHORT-TERM PROVISIONS
Like long-term provisions, short-term provisions are also required to be
classified in the notes into two categories:
 Provisions for employee benefits
 Others (specifying nature)
Other include all provision other than provision for employee benefits such
as Provision for dividend, Provision for taxation, Provision for warranties,
etc.

35. 8 Sept. 2012) ON
C C
C ( C * C
&ototoot oto(&o- &ootot&$oo
o- &'ot.o

C C C C C C OC C C C C C C C C C C C
sn se tO!tEntR no t tUs4tR sT o se sTntTRtR o eUt o
C C C C C C C C C C C C C C C C C C C C OC C o C
EoTe !nsoT sT nNt Eo !UT" e
C
To U
C
o!tUnsTV E"Et
C

C C C C C C C C C C
sn se NtR !s Us" o nNt !!oet o tsTV nURtR

C C C C C C C
sn se tO!tEntR no t tUs4tR &snNsT
C C C C C C C
n&tt oTnNe Unt nNt
CCC C
t!onsTV RUnt

C C C C C C C C C C C C C
sn se EUeN o EUeN t%sUtTn Ttee sn se tensEntR o tsTV
C C C C C C C C C C C C
tOENUTVtR o etR no etnnt U sUssn" o Un tUen n&tt oTnNe
C C C TC
Unt nNt t!onsTV RUnt
CCCCC C C C C C C C T
onNt Ueetne eNU t EUeesstR Ue ToT EtTn
II.ASSETS
-
NON CURRENT ASSETS
An asset shall be classified as current when it satisfies any of
the following criteria:
 ,
it is expected to be realized in or is intended for sale or
, ’
consumption in the companys

normal

operating cycle
;
 ;
it is held primarily for the purpose of being traded

it is expected to be realized within

twelve months after the
;
reporting date

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
- .
All other assets shall be classified as non current

36. 8 Sept. 2012C C C C C C C C C C C C
T o!tUnsTV E"Et se nNt ns t tn&ttT nNt UE%sesnsoT o Ueetne
C C C C C C C C C TC
o !oEteesTV UTR nNts tUs4UnsoT sT EUeN o EUeN t%sUtTne
C C C C C C C OC C C
-Ntt nNt To U o!tUnsTV E"Et EUTTon t sRtTnsstR sn se
C C C C C C C T
Uee tR no NUt U RUnsoT o . oTnNe
C C C C
3 5 '
+nE RTE TE oE RTE UnTE eTTRVE onE RTE nTRE Uo"E eE OT#NOTtE RoE UTE
teoeTt

CNt&'o/ ot
3
'eeRonEUTRTTnERnUTsnonERnUT
3
+TET#NTnRVEEnTERToO
3
(eeTReENntTOETeT,EeTENntTOEOTeTRTEeeEoEeeTRe

Co&t&'o/ ot
3
1eoeNOTEOT#NOTTnReEeOERoERnUTEeeTRe

An operating cycle is the time between the acquisition of assets
.
for processing and their realization in cash or cash equivalents
,
Where the normal operating cycle cannot be identified it is
.
assumed to have a duration of 12 months
)
A FIXED ASSETS
On the face of the balance sheet, only the net block is required to be
disclosed
•i)Tangible fixed assets
−Classification between tangible/non tangible
−Office equipment, a new category
−Assets under lease: specify under respective class of assets
•ii) Intangible fixed assets
−Disclosure requirements similar to tangible assets

37. 8 Sept. 2012
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 –
Capital work in progress relates to tangible fixed assets

Intangible assets under development

Other adjustment to include effect of AS16
 /
Adjustment on account of revaluation reduction in capital to be shown
.
separately for a period of five years
)
b Non current investments
−- /
AS 13 to prevail for current non current classification
−
Non current investment to be classified as 'trade' and 'others'
 :
Non current investments to further disclose
− ;
Names of bodies corporate showing separately partly paid

investments
− , ,
Bodies corporate include 'subsidiaries' 'associates' 'joint ventures'

or 'controlled special
purpose entities (SPE)'. SPE not defined

38. 8 Sept. 2012
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If investments in the capital of partnership firms: Name of the firm
(with the names of each partner, total capital and shares of each
partner)
INVESTMENTS PURCHASED/SOLD DURING THE YEAR:
NO DISCLOSURES REQUIRED
c) LONG TERM LOANS AND ADVANCES
−Capital advances
−Security deposits
−Loans and advances to related parties
−Others
Sub-classification as secured/un-secured/doubtful, to continue

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Other loans and advances should include ‘advances recoverable in cash or kind such as Prepaid
expenses, Advance tax, CENVAT credit receivable, VAT credit receivable, Service tax credit
receivable, etc. which are not expected to be realized within the next twelve months or operating
cycle whichever is longer, from the Balance Sheet date.’ORNNnCeTEttnetT
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CURRENT ASSETS
a) INVENTORIES
Inventories shall be classified as :
(i)Raw Materials
(ii)Work-in-progress
(iii)Finished goods
(iv)Stock in trade
(v)Stores & spares
(vi)Others (Specify nature).

40. 8 Sept. 2012e C C C C
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)
b TRADE RECEIVABLES

Trade receivables are defined as

dues arising only from goods sold or services rendered in the
.
normal course of business
 , ,
Hence amounts due on account of other contractual obligations
,
which were earlier included in the sundry debtors can no longer
.
be included in the trade receivables
 -
Pre revised Schedule VI

required separate presentation of debtors
() (. .,
i outstanding for a period exceeding 6 months i e

based on
)
billing date
( ) ,
and ii other debtors in a schedule to the balance
. ,
sheet However Revised Schedule VI prescribes the following

disclosure for trade receivables

only under the head 'current
:
assets'

'Aggregate amount of trade receivables outstanding for a period

exceeding six months

from the date they are due for payment
.
should be separately stated '

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c CASH AND CASH EQUIVALENTS
: :
shall be classified as
 ;
Balances with Banks
 , ;
Cheques drafts on hand
 ;
Cash on hand
 ( ).
Others specify nature

Earmarked balances
( , )
with banks for example for unpaid dividend
.
shall be separately stated

Balances with banks to the extent held as

margin money

or security
,
against the borrowings
,
guarantees

other commitments shall be
.
disclosed separately

Bank deposits with

more than 12 months maturity

shall be disclosed
separately

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d) OTHER CURRENT ASSETS ( Specify nature)
This is an all-inclusive heading, which incorporates current assets that
do not fit into any other asset categories e.g. unbilled Revenue,
unamortised premium on forward contracts etc.
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. ,
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
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Schedule VI
.

43. 8 Sept. 20123
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•Disclosures no longer required
Income split between trade and other investments
Nature of interest income
Tax Deducted at Source disclosure for investment income
Profit/loss on account of membership of partnership firm
Disclosures relating to managerial remuneration and computation of net profits for
calculation of commission
Information relating to licensed capacity, installed capacity and actual production.
Investments, sundry debtors and loans & advances pertaining to companies under
the same management
Commission, brokerage and non-trade discounts (But if it exceeds 1% of the
revenue from operations or `100,000, whichever is higher, then same needs to be
disclosed separately)

44. 8 Sept. 20123
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eesRe=TNTRs'TnsTUtRTosTtnTnsN?RNtUTNRNUT6@TtUReTtTRsTnsCtnRNU/TRs
•Definition of ‘cash and cash equivalents’ as per AS 3 :
Cash comprises cash on hand and demand deposits with banks and cash
equivalents are short term, highly liquid investments that are readily convertible into
known amounts of cash and that are subject to an insignificant risk of changes in
value
•An investment normally qualifies as a cash equivalent only when it has a short
maturity of three months or less from the date of acquisition
•Classification of ‘balances with banks’:
(Accounting Standards prevail over the Revised Schedule VI)
a)Under ‘Cash and cash equivalents’ if they are demand deposits or have original
maturity of three months or less
b)Under a separate sub-heading ‘Other bank balances’ if they are due for realization
within 12 months of the reporting date and do not qualify for classification under
cash and cash equivalents
c)As a separate heading under ‘other non-current investments’/ ‘other non-current
assets’, if they are not due for realization within 12 months of the reporting date

45. Partnering for Your Success… Always
8 Sept. 2012