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ANALYSIS OF REVISED SCHEDULE VI
TOTHE COMPANIES ACT ,1956
• MCA REVISED SCHEDULE VI OF COMPANIES ACT,1956 BY NOTIFICATION NO S.O.447(E),DATED 28.02.2011
• APPLICABLE TO ALL COMPANIES (EXCEPT BANKING,INSURANCE & ELECTRICITY COMPANIES) FROM 1ST APRIL 2011 ONWARDS
• IT INTRODUCED NEW TERMS , MANDATED ADDITIONAL DISCLOSURES & CHANGED CERTAIN GROUPINGS
Features
• Closer to global look
• Flexibility
• Removal of reduntant disclosure requirements
• Prescribes minimum requirements-additional line/subline items can be added
-overriding effect of accounting standards,MSMED Act etc
Scope
• Covered -Presentation Requirements -Disclosures• Not Covered1. Recognition principles2. MeasurementWhich are the domain of Accounting
standards
Applicability
• Annual year ending 31 March, 2012
• Corresponding figures ( Previous year figures) are to be restated
Rounding etc
1. Optional
• Turnove<100 Cr- R/off to nearest hundreds,thousands,lakhs or millions or decimals
• Turnove>100 Cr- R/off to nearest lakhs or millions or decimals
Name of the CompanyBALANCE SHEET AS AT
Rs in……..
Particulars Note No Figures as at end of the current year reporting period
Figures as at end of the current year reporting period
EQUITY AND LIABILITIES
1.SHAREHOLDERS FUNDS
(a) SHARE CAPITAL
(b) RESERVES AND SURPLUS
(c) MONEY REC. AGST. SHARE WARRANTS
2.SHARE APPLICATION MONEY PENDING
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
Particulars Note No Figures as at en of the current year reporting period
Figures as at end of the current year reporting period
ASSETS
NON-CURRENT ASSETS
(a)FIXED ASSETS
(i)TANGIBLE ASSTS
(ii) INTANGIBLE ASSETS
( iii) CAPITAL WORK-IN-PROGRESS
( v) INTANGIBLE ASSETS UNDER DEVELOPMENT
(b) NON-CURRENT INVESTMENTS
(c) DEFERRED TAX ASSETS (NET)
(d) LONG-TERM LOANS AND ADVANCES
(e) OTHER NON-CURREN T ASSETS
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
Profit and Loss Statement for the year ended Rs in…..
Particulars Note No Figures as at en of the current year reporting period
Figures as at end of the current year reporting period
I. Revenue from operations
II. Other income
III. Total revenue (I+II)
VI Expensesa. Cost of materials consumed
b. Purchase of stock in Trade
c. Changes in inventories of finished ,work in progress,
and stock in trade
d. Employee benefit Expenses
e. Financial Costs
f. Depreciation and amortization expenses
g. Other expenses
Total Expenses
V. Profit before exceptional and extra ordinary items and tax
(III-IV)
Particulars Note No Figures as at en of the current year reporting period
Figures as at end of the current year reporting period
VI. Exceptional Items
VII. Profit before extra ordinary items and tax( V-VI)
VIII. Extraordinary Items
IX .Profit before tax (VII-VIII)
X. Tax Expense
(1) Current Tax
( 2) Deferred Tax
XI. Profit /( Loss) for the period from continuing
operations (VII-VIII)
XII. Profit /( Loss) for the period from Discontinuing operations
XIII. Tax Expense of Discontinuing Operations
XIV. Profit /( Loss) for the period from Discontinuing operations (after tax) (XII-XIII)
XV. Profit /( Loss) for the period (XI+XIV)
XVI. Earnings per equity share:
(a) Basic
(b) Diluted
Definitions
• Asset- A resource controlled by an entity as a result of past events from which future economic benefits are expected to flow to the entity
• Liability- A preset obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity
Equity-The Residual interest in the assets of the entity after deducting all its liabilities
Provision-A present obligation which satisfies the rest of the definitions of the liabilities, even if the amount of the obligation has to be estimated
Current Assets
• Current Asset- satisfies any of the following criteria:
a) Expected to be realized in, or it is intended for sale or consumption in the normal operating cycle
b) Held primarily for the purpose of being traded
c) Expected to be realized within 12 months after the reporting date
d) Cash or Cash equivalent not subject to any restrictions for atleast 12 months
Operating Circle
• Time between the acquisition of asset for processing and their realization in cash or cash equivalents
• Where normal operating cycle can not be identified- 12 months
Current Liabilities
Any of the following conditions:A) Expected to be settled in the normal
operating cycleB) Held primarily for the purpose of being
traded C) Due to be settled within 12 monthsD) Company does not have an
unconditional right to defer settlement for at least 12 moths
Shareholders Fund Share Capital 1. Each class of share capital to be shown, Different classes to be treated
differently
2. Following details to be given: Number and Amount of Authorized share capital Issued Share capital Subscribed and fully paid share capital Subscribed share capital but not fully paid Par Value per share shown
3. Rights, preferences and restrictions attaching to each class of shares shown including restrictions on Dividends distribution and repayment of capital
4 .A reconciliation of No. shares outstanding at the beginning and at the end of reporting period
Equity and Liabilities
4.Shares (in aggregate) of each class held by: Holding company Ultimate holding Subsidiaries Associates of the Holding Company Associates of Ultimate Holding Company
5. Shareholders having holding more than 5% shares ,specifying the Name & No. of shares
6.Terms and Amounts of: Shares reserved for issue under option of control Commitments for the sale of shares/Disinvestments
7.For the preceding 5 years: Aggregate number and class of shares allotted as fully paid up pursuant to
contract(s) without payment being received in cash Aggregate number and class of shares allotted as fully paid Bonus shares Aggregate number and class of shares bought back
8.Terms of any securities convertible in to equity/ preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date
9.Calls unpaid shown as: By directors By officers
10.Forfeited Shares (Amount originally paid up).
RESERVES & SURPLUS Classification of Reserves and surplus in to:• Capital reserves• Capital Redemption Reserves• Securities premium reserves• Debenture Redemption Reserve• Revaluation Reserve• Share Option Outstanding Account• Other reserves• Surplus, showing allocations and appropriations such as dividend, bonus shares and
transfer to / from reserves
• Surplus- balance in P & L a/c showing allocations and appropriations• Negative Balance of Profit and Loss Account, if any, to be shown under the
"Surplus" head as a negative figure
• The word `fund' in connection with reserve is to be used only where such Reserve is specifically represented by earmarked investments.
• Additions and Deductions since last Balance Sheet date to be shown under each of the specified heads
Money Received against Share Warrants
Amount received against issue of share warrants is to be brought in
to the face of Balance sheet
Share Application money pending Allotment
• Terms and Conditions• Number of shares proposed to be issued, premium if any• Period before which shares shall be allotted
• To be disclosed that the company has sufficient authorized capital to include share capital amount.
• The period for which the share application money has been pending beyond the period for allotment shall be disclosed.
• Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the Head EQITY
• Refundable share application money/ Requirements for minimum subscription not met shall be shown under ‘Other Current liabilities”
NON-CURRENT LIABILITIES
Long-term Borrowings• Bonds / Debentures
• Term Loans:• a) From Banks
• b) From Other Parties
• Deferred Payment liabilities
• Deposits
• Loans and advances from related parties
• Long Term maturities of finance lease obligations
• Other Loans and advances, specifying nature
• Long term Borrowings to be sub-classified as:
-Secured (nature of the security to be specified)
-Unsecured
• Aggregate of loans guaranteed by :
-Directors
-Others
• Rate of interest and terms of redemption / conversion of bonds / debentures to be stated in descending order of maturity of redemption / conversion, Where Bonds / Debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due.
• Particulars of the redeemed bonds which can be reissued to be shown
• Period and amount of continuing default in the repayment of loans and interest shown separately in each case
Deferred Tax Liabilities (Net)
Other Long-term Liabilities• Classification of other long term liabilities as :-
-Trade payables
-Others
“Current maturities of all long term borrowings to be disclosed under other current liabilities”
• Long-Term Provisions• Classification of Provisions as:
-Provision for employee benefits
-Others (Specifying nature) Eg: provision for warranties
Current Liabilities-Classification
• Short Term Borrowings
• Trade Payables
• Other Current liabilities
• Short Term Provisions
CURRENT LIABILITIES
Short Term Borrowings
Repayable on demandLoans and AdvancesFrom related parties
Deposits
From Banks From other Parties
Other Loans and deposits(specify nature)
• Further Short Term borrowings into:
-Secured (nature of the security to be specified)
-Unsecured
• Aggregate of loans guaranteed by the following should be disclosed:\\
-Directors
-Others
• Period and amount of continuing default in the Repayment of Loans and Interest shown separately in each case
Trade Payables
Other Current Liabilities• Classification of other current liabilities into:
-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
-Application money received for allotment of securities and due for refund and interest accrued thereon.
-Unpaid matured deposits and interests accrued thereon
-Unpaid matured debentures and interest accrued thereon
-Other payables, specifying nature Eg: TDS , VAT
Short- term Provisions• Classification of short term provisions into:
-Provision for employee benefits
-Others, specifying nature Eg: Provision for Dividend, Tax
•
II.ASSETS
Assets
Non- Current Assets Current Assets
Non Current Assets
Fixed AssetsLong Term Loans
And advances
Tangible Assets Intangible Assets Capital W I PIntangible assets
Under development
Other Non- CurrentAssets
Deferred Tax AssetsNon- Current Investments
Tangible Assets
• Classification of Tangible Assets into:• Land• Buildings• Plant and Equipment• Furniture and fixtures• Vehicles• Office Equipments• Others (specifying nature)
Asset under lease shall be shown separately under each class of asset
Reconciliation of gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing:
• Additions• Disposals• Acquisitions through business combinations• Other Adjustments• Amortization• Depreciation/Impairment losses/reversals
Where a capital reduction scheme or a revaluation of assets has taken place, every balance sheet subsequent to the reduction or revaluation shall show the reduced/increased figures, the date of the reduction/increase and the amount of reduction / increase for the first 5 years subsequent to the reduction / revaluation.
Intangible Assets
Classification of Intangible Assets into:• Goodwill• Brands/trademarks• Computer software• Mastheads and publishing titles• Mining rights• Copyrights and patents and other Intellectual property rights, services and operating
rights• Recipes, formulae, models, designs and prototypes• Licenses and franchises• Others (specifying nature)
Non-Current Investments
Sub classified in to:Investments in Property-Investments in Equity instruments-Investments in Preference shares-Investments in Government or trust securities-Investments in Debentures or Bonds-Investments in Mutual funds-Investments in Partnership firms-Others (specifying nature)
Non-current Investments
Trade investments Other Investments
Long Term Loans and Advances
• Allowance for bad and doubtful loans and advances disclosed under relevant heads.• Loans and Advances due from: -Directors or other officers of the company -Amounts due by firms in which any director is a partner -Amounts due by private companies in which any director is a director or member
Loans and advances
Capital Advances Security deposits Loans and advances to related parties (giving details
-
Other loans andadvances (
• Other Non-Current Assets:
• Long term trade receivables • Others -specifying nature
Long term trade receivables
Secured, considered good Unsecured, considered good Doubtful
CURRENT ASSETS
• Current Investments • Classification of Current Investments into: Investments in Equity instruments
Investments in Preference shares
Investments in Government or trust securities
Investments in Debentures or Bonds
Investments in Mutual funds
Investments in Partnership firms
Others (specifying nature)
• In case of investments in bodies corporate the following additional disclosures shall be made under each classification:
• Names of the body corporate (indicating whether they are associates, joint ventures, subsidiaries or controlled special purpose entities)
• Nature and extent of the investments
• Partly paid investments to be separately shown
• The basis of valuation of individual investments
Inventories
• Classification of Inventories into:
Raw materials
Work in progress
Finished goods
Stock in trade (in respect of goods acquired for trading )
Stores and spares
Loose tools
Others (specifying nature)
• Goods-in-transit to be disclosed under relevant sub-head.
• Mode of Valuation to be stated
Trade Receivables
Aggregate amount of outstanding trade receivable exceeding 6 months shown separately
Allowance for bad and doubtful debts disclosed under relevant heads Debts due from: • Directors or other officers of the company• Amounts due by firms in which any director is a partner• Amounts due by private companies in which any director is a director• or member
Trade receivables
Secured, considered goodUnsecured, considered good
Doubtful
Cash and Cash Equivalents
• The following shall be shown separately :• Earmarked balances with bank.• Balances with bank held as margin money or security against
borrowing• guarantees and other commitments• Repatriation restrictions, if any, in respect of cash and bank balances.• Bank deposits with more than 12 months maturity
Cash and CashEqivalents
Balance with BankCheques, drafts
on handCash in Hand
Others(specify the nature)
Other Current Assets All inclusive heading which incorporates current assets that do not fit in other asset categories. Specifying nature of all items
Short Term Loans And Advances• Loans and Advances to Related parties (giving details thereof)• Others (specifying nature)
• CONTINGENT LIABILITIES AND COMMITMENTS
• The following shall be disclosed to the extent not provided for: • Claims against the company not acknowledged as debts • Guarantees.• Other money for which the company is contingently liable.
Classification of Commitments into:• Estimated amount of contracts remaining to be executed on capital account and not
provided for• Uncalled liability on shares and other investments partly paid• Other commitments ( specify nature)
PROFIT AND LOSS ACCOUNT
Revenue from operations
Company other than Finance Company Finance Company
Sale of ProductsSale of ServicesOther Operating ExpensesLess: Excise Duty
InterestIncome from other Financial Services
Other Income
• Classification of Other Income into:
- Interest Income (except for a finance company)
- Dividend Income
- Net gain / loss on sale of Investments
- Other Non-Operating Income (net of expenses directly attributable)
- Adjustments to the carrying amount of investments
- Net gain from foreign currency transactions and translations
- Any item of revenue which exceed 1 % of revenue from operations or
Rs. 1lakh ,whichever is higher
EXPENSES
Expenses to Be Disclosed
Manufacturing Companies Trading CompaniesRendering/Supplying
services
Raw Materials & GoodsPurchased under
broad HeadsGoods Purchased under
Broad headsGross income derived from
Services rendered
Employee Benefits Expense • Salaries and Wages
• Contribution to Provident and Other Funds
• Expenses on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan
• Staff Welfare Expenses
• Finance Costs• Interest Expense• Other Borrowing Cost• Net gain / loss from foreign currency transactions and translations
Other Expenses Any item of expenditure which exceed 1 % of revenue from operations or Rs.1
lakh, whichever is higher
Adjustments to the carrying amount of investments
Net loss from foreign currency transactions and translations other than those considered as Finance Costs
Payment to the Auditors: • As Auditors• For Taxation matters• For Company Law matters• For Management services• For other services• For Reimbursement of expenses
Following expenditures to be shown separately• Consumption of stores and spare parts
• Power and Fuel• Rent• Repairs to Buildings• Repairs to Machinery• Insurance• Rates and Taxes, excluding Tax on Income• Miscellaneous Expenses