Good Morning Friends

To Simplify the Presentation Make it at Par with IFRS  Elimination of Unwanted and Redundant disclosures

The Revised Sch.VI is applicable to all the companies. w.e.f.1.4.2011

Salient Features of Revised Sch. VI

       

Flexibility Notes to Accounts Unit of Measurement Assets and Liabilities Equity Profit and Loss Account Materiality Concept Status of Part III and Part IV

Difference b/w Old and Revised Sch. VI

Particulars Authority Old Sch. VI Provisions of prevail over Standards. Revised Sch.VI Sch.VI will Provisions Accounting Accounting Standards will prevail over Sch.VI.

Form of Balance Sheet

Both horizontal and vertical Only vertical form of Balance form were allowed. Sheet has been specified in the revised Sch. VI.

Form of Profit and Loss No format specified for Profit Form of Profit and Loss Account and Loss Account. Account specified under Part II of Sch.VI Profit and Loss Opening surplus, proposed Transfer from/to reserves to be Appropriation Account dividend and transfer to/from shown under the heading reserves were shown in Profit Reserves and Surplus only. and Loss Appropriation Account.

Difference b/w Old and Revised Sch. VI

Particulars Proposed Dividend Old Sch. VI Revised Sch.VI to be Proposed Dividend required Proposed Dividend to be provided for. disclosed in note. Quantitative details of Raw materials, Purchases, Stocks and turnover to be given for each class of goods. Also licensed and installed capacity and production quantity to be given for manufacturing companies.

Quantitative Details

No quantitative details required. Limited requirements for disclosure for CIF and FOB values etc.,

Rounding off of figures Turnover of less than Rs. 100 appearing in financial Crs R/off to the nearest statement. Hundreds, thousands and 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.

Difference b/w Old and Revised Sch. VI

Particulars Share Capital Old Sch. VI No requirements to disclose separately bonus shares issued during last 5 years. Also no requirement to for details of shareholders holding more than 5% of shares. Revised Sch.VI In addition to the disclosure requirements of old Schedule VI following additional disclosures are also required. Number of bonus shares / shares allotted without payment being received in cash/ Shares bought back during last 5 years. Names and number of shares held by shareholders holding more than 5% of total shares.

Net Working Capital

Current Assets & Liabilities are shown together under application of funds. The net working capital appears on balance sheet.

Assets & Liabilities are to be bifurcated into current and Non-Current and to be shown Separately. Hence, No question net working capital on the face of balance sheet.

Difference b/w Old and Revised Sch. VI

Particulars Fixed Assets Old Sch. VI Revised Sch.VI There was no bifurcation of Fixed Assets are to be shown under tangible and intangible assts. non-current assets and have to be bifurcated in to Tangible & Capital advances used to be Intangible assets. shown under the head capital work in progress under Fixed Capital advances are to be shown assets. under the head Long term Loans and Advances . Short-term & Long-term borrowings are grouped together under the head Loan funds subhead 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 shown separately.

Borrowings

Difference b/w Old and Revised Sch. VI

Particulars Deposits Old Sch. VI Revised Sch.VI Lease deposits are part of loans Lease deposits to be disclosed and advances. as long term loans & advances under non-current assets. Both current & non-current Current and non-current investments to be disclosed investments are to be disclosed under the head investments. separately under current assets& non-current assets respectively. Loans & Advances are disclosed along with current assets. Loans & Advances to subsidiaries & others to be disclosed separately. Loans & Advances to be broken up in long term and short term and to be disclosed under current and non-current assets separately. Investments

Loans & Advances

Deferred Liability

Tax

Asset/ Deferred tax asset/liabilities to Deferred tax asset/liability to be disclosed separately. be disclosed under noncurrent assets/liability as the case may be.

Difference b/w Old and Revised Sch. VI

Particulars Old Sch. VI Revised Sch.VI Cash & Bank Balances Bank balances to be bifurcated No such bifurcation required. in scheduled banks & others. Bank balances in relation to earmarked in balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately. Profit & Loss (Debit Balance) P&L debit balance to be Debit balance of P&L account to separately disclosed in the be shown as negative figure under Balance Sheet. the head Surplus. Therefore, Reserves& Surplus can have a negative balance. Debtors outstanding for more Debtors outstanding for more than six months from invoice than six months from the date date to be disclosed separately. they became due to be shown separately.

Sundry Debtors

Other Liabilities

Current No specific mention for These are to be disclosed under separate disclosure of current other current liabilities. maturities of long-term debt or finance lease obligation.

Difference b/w Old and Revised Sch. VI

Particulars Separate line Disclosure criteria Old Sch. VI item Any item under which expense exceeds 1 % of the revenue of the company or Rs. 5,000 which ever is higher; shall be disclosed separately. Function wise & nature wise. Revised Sch.VI Any item of income/ expense which exceeds 1 % of the revenue from operations or Rs. 1,00,000, which ever is higher; shall be disclosed separately. Expenses in Statement of Profit and Loss to be classified based on nature of expenses.

Expense classification

Finance Cost

Finance cost to be classified in Finance cost shall be classified fixed loans & other loans. as interest expense, other borrowing costs & Gain/Loss on foreign currency transaction & translation. exchange Gain/ Loss on foreign Gain/ Loss on foreign currency transaction to be shown under transaction to be separated finance cost. into finance cost and other expense.

Foreign gain/loss

Difference b/w Old and Revised Sch. VI

Particulars Purchases. Old Sch. VI The purchases made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities thereof. Revised Sch.VI Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted. Goods in Transit to be separately disclosed.

TDS amount on Interest, TDS amount was required to No requirement of disclosing royalty received. be shown for interest income TDS amounts separately. etc. Managerial remuneration Commission. ESOP expenses Payment to directors and No disclosure requirements in and detailed calculation under this regard. section 198 was required to be disclosed. No requirement to show Expense on ESOS and ESPP to separately as part of Employee be shown separately as part of Benefits expense. employee benefits expense.

Difference b/w Old and Revised Sch. VI

Particulars Part III Interpretation Old Sch. VI Revised Sch.VI Terms of provisions, reserve, No such specific definitions. capital reserve, quoted investment etc. were defined.

Part IV Abstract

Balance Sheet Details of Company No such requirement. registration number, capital raised, Balance Sheet details, products etc. were required to be attached with financials.

Thank you friends