REVISED SCHEDULE VI BALANCE SHEET AS PER COMPANIES ACT 1956.

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.