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REVISED SCHEDULE VI
BALANCE SHEETAS PER COMPANIES ACT 1956
Format of Balance Sheet Name of the Company……………Balance Sheet as at……….. ( Rupees at ……)
Particulars Note No
Figures as at the end of the current reporting period
Figures as at the end of the previous reporting period
I EQUITY & LIABILITIES(1) Shareholder’s Funds
•Share Capital •Reserves & surplus•Money received against share warrants
(2) Share Application Money pending allotment
(3) Non-Current Liabilities•Long term borrowings•Deferred tax liabilities( net)•Other long term liabilities•Long term provision
(4) Current Liabilities•Short Term Borrowings•Trade Payables•Other Current Liabilities•Short Term ProvisionsTOTAL
Format of Balance Sheet (cont..)Name of the Company……………Balance Sheet as at……….. ( Rupees at ……)
Particulars Note No Figures as at the end of the current reporting period
Figures as at the end of the previous reporting period
II ASSETS
(1) Non Current Assets •Fixed Assets•Non current Investments•Deffered tax assets •Long term loan and advances•Other non current assets
(2) Current Assets•Current investments•Inventories•Trade Receivables•Cash and Cash Equivalents•Short Term loans and advances•Other current assets
TOTAL
Shareholder’s Fund : Content & Information
•Shall specify the number and the amount of shares of each class of share capital authorized, issued , subscribed and fully paid
Share Capital
•Amount appropriated from statement of profit & loss a/c as per statutory compliances or otherwise such as Capital Reserve , Debenture Redemption Reserve , Revaluation Reserve , General Reserve
Reserves & Surplus
•Securites issued by company to owners which give them the right to purchase shares at a specific price at a future date
•Represents amount which would ultimately form part of either share capital or reserves and surplus
Money received against share warrants
Non current Liabilities: Content & Information
•Classified as bonds/debentures, term loans , deffered payment liabilities, deposits, loans and advances from related parties, etc.
•Shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case
Long Term Borrowings
•Classified as Trade payables( due on account of goods purchased or services rendered in normal course of business of non current nature) and others (specify nature)
Other Long Term Liabilities
•Classified into Provision for Employee Benefits and others (specify nature )
Long Term Provisions
Current Liabilties: Content & Information•Classifie
d into loans repayable on demand by banks or other parties; deposits and other loans and advances
•Shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.
Short Term Borrowings
•Amounts payable in respect of goods purchased or services received in the normal course of business ( of current nature )
Trade Payables
•Classified into unpaid dividend, income received in advance , interest accrued and due on borrowings etc .
Other Current Liabilities
•Classified into Provision for Employee Benefits and others (specify nature )
Short Term Provisions
Non current Assets : Content & Information
Non Current Assets
Fixed Assets
Non current Investments
Deffered Tax AssetsLong Term Loans & advances
Other Non current assets
Non current Assets : Content & Information(cont.)
Fixed Assets
Tangible Assets
Classified as land , buildings , plant and
equipment , furniture and fixture
, vehicles , office equipment and
others
Intangible Asset
Classified as goodwill ,
brands/trademarks, computer software ,
mining rights etc
Capital Work in Progress
Related to tangible fixed asset to be
disclosed
Intangible Assets under development
Recognised and measured as per
accordance with AS 26
Non current Assets : Content & Information(cont.)•Shall be
classified as trade investments and other investments and further classified as investment property , investment in equity instruments ,preference shares , government securities , bonds , debentures etc .
Non-current Investment
•Shall be classifies as capital advances , security deposits , loans and advances related to other parties .
•Shall be Further classified into secured , considered good; unsecured , considered good or doubtful
Long Term Loans and Advances
•Shall be classified as long term trade receivables or others.
•Shall be Further classified into secured , considered good; unsecured , considered good or doubtful
Other non-current assets
Current Assets : Content & Information
Current Assets
Current Investments
Inventories
Trade Receivables
Cash and cash equivalents
Other Current Assets
Short Term Loans and advances
Current Assets : Content & Information (cont)•Shall be
classified as trade investments and other investments and further classified as investment property,investment in equity instruments,preference shares, government,securities , bonds,debentures,etc
Current Investments
•Shall be classified as raw material , work in progress , finished goods ,stock in trade , stores and spares , loose tools ,etc
•Mode of valuation should be stated
Inventories
•Treated as current if it is expected to be realised within 12 months from the balance sheet date or within the operating cycle of the business , whichever is longer.
•Shall be Further classified into secured , considered good; unsecured , considered good or doubtful
Trade Receivables
Current Assets : Content & Information (cont)
•Shall be classified into bank balances, cheques , drafts on hand , cash on hand , short term highly liquid investments , other etc
Cash and Cash Equivalents
•Shall be classifies into loans and advances to related parties and others( specifying nature )
•Shall be Further classified into secured , considered good; unsecured , considered good or doubtful
Short Term Loans and Advances
•Covers residuary current assets that do not fall into the any of the other current asset categories such as interest accrued on investments
Other Current Assets
REVISED SCHEDULE VI
STATEMENT OF PROFIT & LOSSAS PER COMPANIES ACT 1956
STATEMENT OF PROFIT & LOSS
• Ministry of Corporate Affairs has revised schedule VI which comprises of Profit & Loss Account and Balance Sheet.
• The name of Profit & Loss account has been changed to Statement of Profit & Loss.
Statement of Profit and Loss
Name of the CompanyStatement of Profit and Loss for the year ended 31 March, 20X2
Particulars
A CONTINUING OPERATIONS
1 Revenue from operations (gross) Less: Excise duty Revenue from operations (net) 2 Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade
(d) Employee benefits expense (e) Other expenses Total 3 Earnings before exceptional items, extraordinary items, interest, tax, depreciation and amortisation
(EBITDA) (1 - 2) 4 Finance costs 5 Depreciation and amortisation expense 6 Other income 7 Profit / (Loss) before exceptional and extraordinary items and tax (3 + 4 + 5 + 6)
Particulars A CONTINUING OPERATIONS
1 Revenue from operations (gross) Less: Excise duty Revenue from operations (net) 2 Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade
(d) Employee benefits expense (e) Other expenses Total 3 Earnings before exceptional items, extraordinary items, interest, tax, depreciation and amortisation (EBITDA)
(1 - 2)
4 Finance costs 5 Depreciation and amortisation expense 6 Other income 7 Profit / (Loss) before exceptional and extraordinary items and tax (3 + 4 + 5 + 6)
8 Exceptional items 9 Profit / (Loss) before extraordinary items and tax (7 + 8)
10 Extraordinary items
11 Profit / (Loss) before tax (9 + 10)
12 Tax expense: (a) Current tax expense for current year (b) (Less): MAT credit (where applicable) (c) Current tax expense relating to prior years (d) Net current tax expense (e) Deferred tax
13 Profit / (Loss) from continuing operations (11 + 12) B DISCONTINUING OPERATIONS
14.i Profit / (Loss) from discontinuing operations (before tax)
14.ii Gain / (Loss) on disposal of assets / settlement of liabilities attributable to the discontinuing operations
14.iii Add / (Less): Tax expense of discontinuing operations
(a) on ordinary activities attributable to the discontinuing operations (b) on gain / (loss) on disposal of assets / settlement of liabilities
15 Profit / (Loss) from discontinuing operations (14.i + 14.ii + 14.iii)
C TOTAL OPERATIONS
16 Profit / (Loss) for the year (13 + 15)
17.i Earnings per share (of ` ___/- each):
(a) Basic
(i) Continuing operations
(ii) Total operations
(b) Diluted
(i) Continuing operations
(ii) Total operations
17.ii Earnings per share (excluding extraordinary items) (of ` ___/- each):
(a) Basic
(i) Continuing operations
(ii) Total operations
(b) Diluted
(i) Continuing operations
(ii) Total operations
See accompanying notes forming part of the financial statements
REVENUE
REVENUE FROM OPERATIONS• The first item in the statement
starts with revenue from operations.
• Revenue from operations means net income from business activities.
• The new revised version is required to disclose by way of a note the break-up of revenue into–– sale of products– sale of services– other operating revenues– Less: excise duty.
OTHER OPERATING REVENUES• Revenue from a company’s
operating activities incidental to principal revenue producing activities of sale of products or rendering of services
• e.g. sale of by-products or scrap in a manufacturing company.
Other Income
Interest on FD, Interest on
Overdue Amounts.
Dividend income
Net gain on sale of investments.
Other non-operating income
EXPENSES
COST OF MATERIALS CONSUMED & PURCHASE OF STOCK IN TRADE
• The revised Schedule requires separate disclosure of (i) cost of materials consumed, (ii) purchases of stock-in-trade and (iii) change in inventories of finished goods, work-in-progress and stock in trade on the face of the statement of profit and loss.
• Raw Material Consumed = Opening Stock of RM + Purchases of RM – Closing Stock of RM
• Change in Inventory is the difference of Closing and Opening Stock of FG, WIP and SIT.
Employee Benefits Expenses
• Salaries and wages• Contribution to provident and other funds• Expense on Employee Stock Option Scheme
(ESOP) and Employee Stock Purchase Plan (ESPP)
• Staff welfare expenses
Finance Costs
• Interest expense • Other borrowing costs • Applicable net gain/loss on foreign currency
transactions and translation.• Interest Expense includes Interest on Deb,
Interest on Borrowings from Banks.• Other Borrowing Costs include project finance
charges, loan processing charges etc.
•Depreciation is an expense which arises due to the regular usage of the assets
•Amortization refers to the writing off the cost of intangible assets like patents, copy rights etc. which have entitlements to use for a specified period of time.
Depreciation & Ammortization
•separate disclosure would be required if the amount exceeds one percent of turnover or INR 1,00,000, whichever is higher.
Commission on Sales
Other Expenses
Consumption of stores and spare partsPower and fuelRentRepairs to buildingsRepairs to machineryInsuranceRates and taxes, excluding taxes on incomeMiscellaneous expenses.
EXCEPTIONAL NATURE
When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that
their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such
items should be disclosed separately.’
Extraordinary Items
• The revised Schedule requires ‘extraordinary items’ to be distinguished from ‘exceptional items’ and shown separately on the face of the statement of profit and loss. For Eg: - – Attachment of property – Loss of property due to earthquake.
Tax ExpenseCurrent tax (MAT) payable XXLess: MAT credit entitlement (XX)Net Current tax liability XX
MAT refers to Minimum Alternate tax.This was introduced to make sure that the companies having large profits and declaring substantial dividends to the shareholders, but who were not contributing to the government by way of corporate tax, by taking the advantage of various incentives provided in the Income Tax Act, pay a fixed % of book profit as MAT
Profit/(loss) from Discontinuing Operations
• The disclosure requirements of AS 24, Discontinuing Operations, including the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation, and the income tax expense related thereto to be disclosed on the face of the Statement should be complied with.
Earnings per Equity Share
• Basic and diluted earnings per share, computed in accordance with AS 20, Earnings Per Share, should be disclosed on the face of the statements of profit and loss. In this regard, it is relevant to note that AS 20 requires the nominal value of equity shares to be disclosed ‘along with the earnings per share figures’; hence, the same would also need to be disclosed on the face.