Revised Schedule Vi Print Disabled 1

RevisedSchedule VItothe
CompaniesAct
Applicablew.e.f.FinancialYear:20112012
1st &2nd Floor,H.K.House,

AshramRoad,Ahmedabad 380009
InsightintoScheduleVI
Thereisaneedtochangealmostfivedecades oldexistingScheduleVI(hereinafter
referredasoldScheduleVI)tokeepthepacewiththechangestakingplaceinthe
internationalarena.
Thefinancialstobepreparedfortheaccountingyearcommencingonorafter0104
Th
fi
i l t b
d f th
ti
i
ft 01 04
2011.
Revised Schedule VI is applicable to all the companies

RevisedScheduleVIisapplicabletoallthecompanies.
RevisedScheduleVIissilentforitsapplicabilitytoconsolidatedfinancialstatements,
p
21whichrequiresconsolidatedfinancialstatementtobepreparedinthe
q
p p
asperAS
formatasadoptedbyitsparentsstandalone,revisedscheduleVIisalsoapplicableto
theconsolidatedfinancialstatements.
Th
Thecomparativefigures
i fi
of201011shallalsobepresentedinrevisedformat.
f 2010 11 h ll l b
di
i df
UnlikeoldScheduleVIwheretheoptionofhorizontalorverticalformatwasavailable,
revised Schedule VI presentation of Balance sheet and profit and loss account shall
revisedScheduleVIpresentationofBalancesheetandprofitandlossaccountshall
onlybedoneinverticalformat.
MajorpointsinRevisedSchedule VI
NewprescribedformatforStatementofProfitandLossisbasedonthenatureof
p
accounts. Thisisaimedatbringingmorestandardisationandcomparabilitytothe
presentationoftheP&L.Aspercurrentpractice,inabsenceofaprescribedformat,various
modesofpresentationincludingfunctionalandhybridclassificationswereaccepted.
Appropriationsofprofitshouldformpartofnotestoaccountsandnotpart
of Statementofprofitandloss.
InsteadofSchedulestothefinancialstatementallthedetailsshall begiveninthenotesto
accounts.
Tradereceivablesoutstandingfor6monthsormorefromtheduedateinsteadsales
invoicedate.
Quantitativedisclosuresrelatingtoturnover,rawmaterials,purchases,installedcapacity,
actualproduction,detailsofmanagerialremunerationsaretobedispensedwith.
GeneralInstructions
1) DisclosurerequirementsunderrevisedScheduleVIareinadditiontoandnotinsubstitutionofthe
disclosurerequirementsspecifiedintheAccountingstandardsandCompaniesAct.(EG) Thedisclosure
requirementsareminimumandanylineitems,sublineitemsandsubtotalsshallbepresentedasan
additionorsubstitutiononthefaceoftheFinancialstatementwhensuchisrelevantfordisclosing
financialpositionorperformanceortocatertoindustry/sectorspecific:
As per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currency
exposure to be made separately.
2) NopossibilityofconflictbetweenAccountingstandardsandScheduleVIasonmodificationof
accountingstandardsprescribedundertheCompaniesAct,ScheduleVIwouldstandmodified
accordingly.
3) AlldisclosuresrequiredbyCompaniesActtobemadeinnotestoaccounts.
All disclosures required by Companies Act to be made in notes to accounts
EG:DisclosureunderCompaniesAct: DonationtoPoliticalpartiesshouldbeshownseparatelythough
itisnotrequiredasperRevisedScheduleVIasthesameisrequiredunderSection293Aofthe
CompaniesAct.
4) Notestoaccountsshallcontaininformationinadditiontotheinformationcontainedinthefinancial
statement,suchas
(i) narrative notes;
(i)narrativenotes;
(ii)disaggregationofitemsshowninfinancials;(Eg :longterm&otherinvestments)
(iii)includeitemswhichdonotqualifyforrecognitioninfinancials(Eg:Managerialremuneration)
GeneralInstructions(contd.)
p
5)) FinancialStatementsshouldnotprovideexcessivedetailsandatthesametimeitshould
nothideimportantdetails.
Itmeansthatcompanyshouldnotdiscloseimportantinformationbyincludingamong
largeamountofinsignificantdetails.
6) Dependingontheturnover,figuresinfinancialscan beroundedoff:
(i)lessthanRs100crore
Tonearesthundreds,thousands,lakhs ormillions
( )
(ii)Rs100crore
ormore
Tonearestlakhs,millionsorcrores ordecimals
Onceunitusedshallbeuniformlyusedinthefinancialstatement.
7) For
FortheRevisedSchedule,thetermsusedhereinshallbeaspertheapplicableAccounting
the Revised Schedule the terms used herein shall be as per the applicable Accounting
Standards.(Example RelatedParties)
8) In
Inthepreparingthebalancesheettheword
the preparing the balance sheet the word Current
CurrentYear
Yearisreplacedas
is replaced as Current
Current
reportingperiodandPreviousYearasPreviousreportingperiod.
9) Crossreferencingeachlineitemwithnotesandviceversarequired.
Cross referencing each line item with notes and vice versa required
ComparisonbetweenOldandRevisedScheduleVI
Sr
Particulars
RevisedScheduleVI
OldScheduleVI
1 Disclosure
format
Onlyverticalformat.
BalancesheetandProfitandlosswere
disclosedeitherinHorizontalformator
in Vertical format
inVerticalformat.
2 Disclosure
format
InbalancesheetEquityand
LiabilitiesandAssets
aredisclosed.
InbalancesheetSourcesofFundsand
ApplicationofFundsaredisclosed
Therewereonly2headsonliabilityside
Onliabilitysidethereare4heads
(i)Shareholdersfundand(ii)Loanfunds
(i)Shareholdersfunds
((ii)Shareapplicationmoney
)
pp
y
There were 4 heads on asset side :
Therewere4headsonassetside:
pendingallotment
(i)FixedAssets
(iii)Noncurrentliabilitiesand
(ii)Investments
(iv)Currentliabilities
(iii)Current assets, loans and advances
(iii)Currentassets,loansandadvances
Onassetsidethereare2heads:
(iv)Miscellaneousexpenditure
(i)Noncurrentassets
(ii)Currentassets
andfurtherheadwisebifurcation
d f th h d i bif
ti
Disclosure
heads
ComparisonbetweenOldandRevisedScheduleVI
Sr
Particulars
RevisedScheduleVI
FixedAssets
Fixedassetsareshownundernon
currentassetsandarebifurcated
intoTangibleandIntangibleassets.
Borrowings
Investments
Loans&
Loans
&
Advances
Longtermborrowingstobeshown
undernoncurrentliabilitiesand
shorttermborrowingstobeshown
undercurrentliabilitieswith
separatedisclosureforsecured/
unsecuredloansinbothcategories.
Noseparateheadforinvestment,it
isbifurcatedintoNonCurrentand
Currentassets.
No separate head it is bifurcated
Noseparatehead,itisbifurcated
intoNoncurrent&Currentassets.
OldScheduleVI
Therewasnobifurcationrequiredfor
tangibleandintangibleassets.Different
headsaredisclosed:
(i)Goodwill (ii) Land (iii) Building (iv)
(i)Goodwill(ii)Land(iii)Building(iv)
Leasehold(v)Railwaysidings(vi)plant&
machinery(vii)Furniture&fittings(viii)
developmentofproperty(ix)patents,
trademark and design (x) livestock (xi)
trademarkanddesign(x)livestock(xi)
vehicles,etc.
Shortterm&longtermborrowingsare
groupedtogetherundertheheadLoanfund
withsubheadSecured/Unsecured.
Allinvestmentstobedisclosedunderthe
headInvestment.
LLoans&Advancesaredisclosedalongwith
& Ad
di l d l
ith
Currentassets.
PARTI FormofBALANCESHEET
NameoftheCompany.
BalanceSheetasat
Particulars
EQUITYANDLIABILITIES
1
Shareholdersfunds
h h ld f d
A
Sharecapital
Reservesandsurplus
Money received against share Warrants

MoneyreceivedagainstshareWarrants
Shareapplicationmoneypendingallotment
Noncurrentliabilities
A
Longterm
Long
termborrowings
borrowings
Deferredtaxliabilities(Net)
OtherLongtermliabilities
Longtermprovisions
Currentliabilities
A
Shorttermborrowings
Tradepayables
Othercurrentliabilities
Shorttermprovisions
TOTAL
Note
No.
Figuresas
g
attheend
CurrentReporting
Period
PreviousReporting
Period
Contd[PARTI FormofBALANCESHEET]
Particulars
NoteNo.
Figuresas attheend
CurrentReporting
Period
II
ASSETS
1
Noncurrentassets
A
Fixed assets
Fixedassets
I
Tangibleassets
II
Intangibleassets
III
Capitalworkinprogress
IV
Intangibleassetsunderdevelopment
Noncurrentinvestments
Deferredtaxassets(net)
L
Longtermloansandadvances
t
l
d d
Othernoncurrentassets
Currentassets
A
Currentinvestments
Inventories
Tradereceivables
Cashandcashequivalents
Shorttermloansandadvances
Othercurrentassets
TOTAL
PreviousReporting
Period
PARTII FormofSTATEMENTOFPROFITANDLOSS
NameoftheCompany.
Profitandlossstatementfortheyearended
Particulars
NoteNo.
Figures forthe
Current
Reporting
Period
Revenuefromoperations
II
Otherincome
III
TotalRevenue(I+II)
IV
Expenses:
Costofmaterialsconsumed
PurchasesofStockinTrade
Changesininventoriesoffinishedgoods,workinprogressand
h
ff h d
d
k
d
StockinTrade
Employeebenefitsexpense
Financecosts
Depreciationandamortizationexpense
Otherexpenses
p
Totalexpenses
Profitbeforeexceptionalandextraordinaryitemsandtax(IIIIV)
VI
Exceptionalitems
VII
Profitbeforeextraordinaryitemsandtax(V VI)
Previous
Reporting
Period
Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]
Particulars
NoteNo.
Figures forthe
Current
Current
Reporting
Period
VIII
ExtraordinaryItems
IX
Profitbeforetax(VII VIII)
Taxexpense:
(1)
Current tax (including MAToncurrenttax)

Currenttax(including
MAT on current tax)
(2)
Deferredtax
XI
Profit(Loss)fortheperiodfromcontinuingoperations(VIIVIII)
XII
Profit/(loss)fromdiscontinuingoperations
XIII
Taxexpenseofdiscontinuingoperations
XIV
P fi /(l ) f
Profit/(loss)fromDiscontinuingoperations(aftertax)(XIIXIII)
Di
i i
i
( f
) (XII XIII)
XV
Profit(Loss)fortheperiod(XI+XIV)
XVI
Earningsperequityshare:
(1)
Basic
(2)
Diluted
Previous
Previous
Reporting
Period
Thisshallbedisclosedeven
ifthere isnotsuchbalance
asonBalancesheetdate.
Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]
Companymaychoosetopresentanadditionalsubtotalsofcurrentassetsand
p y y
p
currentliabilitiesonfaceofBalancesheet.
Similarlycompanymaychoosetopresentanadditionallineitemonfaceof
StatementofProfitandlossaccountlikeEBITDA.
Excess/ShortprovisionofIncometaxofearlieryearsbeshownseparately.
Definitions
1 CurrentAsset meansanassetwhichsatisfiesANYofthefollowingcriteria:
(a) (i)expectedtoberealizedin,or
(ii)intendedfor(1)saleor
(2)consumption
inthecompanysnormaloperatingcycle;
OR
(b) heldprimarilyforthepurposeofbeingtraded;
OR
(c) expectedtoberealizedwithin12monthsafterthereportingdate;
OR
(d) cashorcashequivalent unlessitisrestrictedfrombeingexchangedorusedtosettle
aliabilityforatleast12monthsafterthereportingdate.
All other assets shall be classified as noncurrent

Allotherassetsshallbeclassifiedasnon
current.
2 Anoperatingcycle is:(Examples1to5)
Timebetweentheacquisitionofassetsforprocessingandtheirrealizationincashor
cashequivalents.
h
l
wherethenormaloperatingcyclecannotbeidentified,itisassumedtohave of12
months.
(Contd.)Definitions
3 CurrentLiabilitymeansaliabilitywhichsatisfiesANYofthefollowingcriteria:
y
y
g
(a) expectedtobesettledinthecompanysnormaloperatingcycle;
OR
((b)) heldprimarilyforthepurposeofbeingtraded;
p
y
p p
g
;
OR
(c) duetobesettledwithin12monthsafterthereportingdate;
OR
(d) thecompanydoesnothaveanunconditionalrighttodefersettlementofthe
liabilityforatleast12monthsafterthereportingdate.
All other liabilities shall be classified as noncurrent.

non current
4 Trade receivable means amount due on account of goods sold or services rendered in
the normal course of business.
5 Trade payable means amount due on account of goods purchased or services received
in the normal course of business.
6 A reserve specifically represented by earmarked investments shall be termed as a fund.
fund
7 Financial statement means balance sheet and statement of profit and loss.
SpecialPurposeEntity
NorAccountingstandardsorrevisedScheduleVIareprovidingguidanceinrespectof
g
p
gg
p
specialpurposeentity[SPE].
Hence,oneshouldseekguidancefromInd AS 27.
GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
Acompanyshalldisclosethefollowinginthenotestoaccounts:
p y
g
A ShareCapital
foreachclassofsharecapital(differentclassesofpreferencesharestobetreated
separately):
(a) thenumberandamountofsharesauthorized;
(b) thenumberofsharesissued,subscribedandfullypaid,andsubscribedbutnotfully
paid;
(c) parvaluepershare;
(d) areconciliationofthenumberofsharesoutstandingatthebeginningandattheend
ofthereportingperiod;
( ) therights,preferencesandrestrictionsattachingtoeachclassofsharesincluding
(e)
f
f
restrictionsonthedistributionofdividendsandtherepaymentofcapital;
(f) sharesinrespectofeachclassinthecompanyheldbyitsholdingcompanyorits
ultimate holding company including shares held by or by subsidiaries or associates of
ultimateholdingcompanyincludingsharesheldbyorbysubsidiariesorassociatesof
theholdingcompanyortheultimateholdingcompanyinaggregate;
(g) shares(equity+preference)inthecompanyheldbyeachshareholderholdingmore
than5%sharesspecifyingthenumberofsharesasonthebalancesheetdate;(along
withthecomparativeofpreviousyear)
(h) sharesreservedforissueunderoptionsandcontracts/commitmentsforthesaleof
shares/disinvestment,includingthetermsandamounts;
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
((i)) Fortheperiodoffiveyearsimmediatelyprecedingthedate
p
y
yp
g
asatwhichtheBalance
Sheetisprepared:
Aggregatenumberandclassofsharesallottedasfullypaidup:
(a)pursuanttocontract(s)withoutpaymentbeingreceivedincash.
(b)bywayofbonusshares
(c)sharesboughtback.
Sourcesfromwhichbonussharesareissued(Eg:Sharepremiumreserve)
NoNeedtogiveyearwisebreakupofsharesallotted.
(j) Termsofanysecuritiesconvertibleintoequity/preferencesharesissuedalongwith
theearliestdateofconversionindescendingorderstartingfromthefarthestsuch
date.
(k) Callsunpaid(showingaggregatevalueofcallsunpaidbydirectorsandofficers)
(l) Forfeitedshares(amountoriginallypaidup)
NotrequiredinNewSchedule VI:
Disclosurerequirementforcalledupsharesisremoved.
DetailsofutilizationofSharePremiumAccount.
BonusSharesandSharedissuedforconsiderationotherthancash(disclosure
notrequiredbeyond5years)
B ReservesandSurplus
ReservesandSurplusshallbeclassifiedas:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
CapitalReserves;
CapitalRedemptionReserve;
Securities Premium Reserve;
SecuritiesPremiumReserve;
DebentureRedemptionReserve;
RevaluationReserve;
ShareOptionsOutstandingAccount;
OtherReserves (specifythenatureandpurposeofeachreserveandtheamountin
respectthereof)
(h) Surplusi.e.balanceinStatementofProfit&Lossdisclosingallocationsandappropriations
such as dividend bonus shares and transfer to/from reserves etc.(Format
suchasdividend,bonussharesandtransferto/fromreservese
tc (Format Example)
(Additionsanddeductionssincelastbalancesheettobeshownundereachofthespecifiedheads)
Notes:
(i)
(ii)
(iii)
( )
NatureandpurposeofeachreservetobestatedONLYforthoseaggregated
under Other
under
OtherReserves
Reserves
DebitbalanceofProfitandLossaccounttobeshownasnegative.
ReserveandSurplusbalancecanbenegative.
p
g
NotrequiredinNewSchedule
Not
required in New Schedule VI:
VI :
DetailsofutilizationofSharePremiumAccountinthemannerprovidedinSec78
ofCompaniesAct.
C LongTermBorrowings
g
g
(i) Longtermborrowingsshallbeclassifiedas:
(a) Bonds/debentures
((b)) Termloans
frombanks.
fromotherparties.
((c)) Deferredpaymentliabilities.(eg:DeferredSalestaxliabilityandDeferredpaymentfor
p y
( g
y
p y
purchaseofAssets)
(d) Deposits (itcanbeFixeddeposits,Securitydeposits,Intercompany,etc)
(e) Loansandadvancesfromrelatedparties(Directors,companies,firmsetc).
(f)
Longtermmaturitiesoffinanceleaseobligations
(g) Otherloansandadvances(specifynature).
(ii) Borrowingsshallfurtherbesubclassifiedas
(i )
secured and
(ii)
unsecured.
Natureofsecurityshallbespecifiedseparatelyineachcase,(whichmeansifonesecurityis
givenformultipleloansthensamemaybeclubbedtogetherfordisclosurewithadequate
crossreferencing)
(iii)
(iv)
Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuchloansunder
Where
loans have been guaranteed by directors or others the aggregate amount of such loans under
eachheadshallbedisclosed.(othersmeanspersonorentityotherthandirector)
Bonds/debentures(alongwith
(i) therateofinterestand
(ii) particularsofredemptionorconversion,asthecasemaybe)
shallbestatedindescendingorderofmaturityorconversion,startingfromfarthestredemptionor
conversiondate,asthecasemaybe.Wherebonds/debenturesareredeemablebyinstallments,the
y
p p
dateofmaturityforthispurposemustbereckonedasthedateonwhichthefirstinstallmentbecomes
due.
(v)
Particularsofanyredeemedbonds/debentureswhichthecompanyhaspowertoreissueshallbe
disclosed.
(vi)
Termsofrepaymentoftermloansandotherloansshallbestated.(i)Tenorofmaturity(ii)numberof
installments(iii)Amountofinstallmentdue(iv)Rateofinterest(v)othersignificantitems.
(vii)
Periodandamountofcontinuingdefaultasonthebalancesheetdateinrepaymentofloansand
interestshallbespecifiedseparatelyineachcase. (I.e.defaultinanyotherdebtcovenantisnot
requiredtobementioned)
(viii)
Manytimesduetodefaultofsometermsandconditionsofloanagreement,theloanbecomespayable
ondemand.Insuchsituationsifthebankshasnotdemandedtherepaymentofloanuptodateof
approvalofaccountsbydirectorsthensuchloanshallbetreatedasnoncurrentonly.
D OtherLongTermLiabilities
g
OtherLongtermLiabilitiesshallbeclassifiedas:
Tradepayables
Others
TradePayablewillnotinclude:
1)
duespayableinrespecttostatutoryobligations,
2)
ContributiontoPF,
3)
PurchaseofFixedAssets,
4)
Interestaccruedontradepayable,etc.
SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbe
disclosed.
p
p
y
AcceptancesshouldbedisclosedaspartofTradePayables
NotrequiredinNewScheduleVI:
DisclosureofSundryCreditorsearlierincludesduesinrespectof:
a) goodspurchasedand/orservicesreceived
goods purchased and / or services received
b) Contractualobligations
E
Longtermprovisions
Theamountsshallbeclassifiedas:
Provisionforemployeebenefits.
p y
Others(specifynature).
F Shorttermborrowings
(i) Shorttermborrowingsshallbeclassifiedas:
(a) Loansrepayableondemand(thiscanincludeLoansforworkingcapital)
frombanks.
fromotherparties.
(b) Loansandadvancesfromrelatedparties.
(c) Deposits,itcaninclude:
(1)Fixeddeposits
(2)Securitydeposits
(3)Publicdeposits
(4)ICD
(d) Otherloansandadvances(specifynature).
(ii) Borrowingsshallfurtherbesubclassifiedassecuredandunsecured.Natureofsecurityshall
bespecifiedseparatelyineachcase.
(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuch
loansundereachheadshallbedisclosed.
( ) Periodandamountofdefaultasonthebalancesheetdateinrepaymentofloansand
(iv)
d d
fd f l
h b l
h
d
fl
d
interestshallbespecifiedseparatelyineachcase.
GTradePayable:
y
a)
Tradepayable
b)
Others
TradePayablewillnotinclude:
1)
duespayableinrespecttostatutoryobligations,
2))
ContributiontoPF,,
3)
PurchaseofFixedAssets,
4)
Interestaccruedontradepayable,etc.
SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbe
disclosed.
OldScheduleVIrequiredtodisclosecertaininformationonMicroSmallMediumEnterprises
Development(MSMED).ThereisnosuchrequirementinRevisedScheduleVI.However,
MSMEDAct,2006requiresthesedisclosuretobemadeinthefinalaccountsofthe
Company.
Hence,requirementofMSMEDActshouldbecompliedinRevisedScheduleVIaswell.
H Othercurrentliabilities
(a) Currentmaturitiesoflongtermdebt;
(b) Currentmaturitiesoffinanceleaseobligations;
(c) Interestaccruedbutnotdueonborrowings;
(d) Interestaccruedanddueonborrowings;
(e) Incomereceivedinadvance;
(f) Unpaiddividends
(g) Applicationmoneyreceivedforallotmentofsecuritiesanddueforrefundandinterest
accruedthereon.Thisincludesadvancestowardsallotmentofsharecapital.
Particularsoftheno.ofsharestobeissued,amt.ofpremium,periodbeforewhich
sharesshallbeallottedshallbedisclosed.
ItshallalsodisclosewhethertheCo.hassufficientauthorizedcapitaltocovertheshare
capital amount resulting from allotment of shares out of such application money
capitalamountresultingfromallotmentofsharesoutofsuchapplicationmoney.
Further,theperiodforwhichtheshareapplicationmoneyispendingbeyondtheperiod
forallotmentasmentionedintheofferletteralongwiththereasonshallbedisclosed.
Shareapplicationmoneynotexceedingtheissuedcapitalandnotrefundableshallbe
pp
y
g
p
shownundertheheadEquityandshareapplicationmoneytotheextentrefundable
i.e.,theamountinexcessofsubscriptionorincasetherequirementsofminimum
subscriptionarenotmet,shallbeseparatelyshownunderOthercurrentliabilities
(h) Unpaidmatureddeposits andinterestaccruedthereon
(i)
Unpaidmatureddebentures andinterestaccruedthereon
(j)
Otherpayables(specifynature)
Interestaccruedandduewithloanwasearlierrequiredtobeshownwith
respectiveloannowseparatelyclassified
DisclosureofloanfromDirectorsandShareholders.
ThetitleheadofInvestorEducationandProtectionFundisnownotrequired.
However,thesubheadsremainunchangedintherevisedformat(i.e.unpaid
dividend,unpaidmatureddeposits,etc)
PROVISIONasaheadisnottobedisclosed.
I
Shorttermprovisions
p
(a) Provisionforemployeebenefits.
((b)) Others(specifynature).
(p y
)
FewExamplesofOthersare:
1)) Provisionfordividend,,
2) ProvisionforTaxation,
3) ProvisionforWarranties,etc.
J
(ii)
(iii)
(iv)
(v)
Tangibleassetsshallbeclassifiedas:
(a) Land.
(b) Buildings.
(c) PlantandEquipment.
(d) FurnitureandFixtures.
(e) Vehicles.
(f) Officeequipment.
(g) Others(specifynature).
Assetsunderleaseshallbeseparatelyspecifiedundereachclassofasset.
Lease means; Assets given on operating lease in case of books of lessor andassetsheldunder
Leasemeans;Assetsgivenonoperatingleaseincaseofbooksoflessor
and assets held under
financeleaseincaseofbooksoflessee.
Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthebeginningand
endofthereportingperiodshowingadditions,disposals,acquisitionsthroughbusinesscombinations
andotheradjustments(willincludeERFasperAS11,borrowingcostcapitalisation)
d h
dj
( ill i l d ERF
AS 11 b
i
i li i ) andtherelated
d h
l d
depreciationandimpairmentlosses/reversalsshallbedisclosedseparately.
Wheresumshavebeenwrittenoffonareductionofcapitalorrevaluationofassetsorwheresums
havebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuchwriteoff,
oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayofanotealso
showtheamountofthereductionorincreaseasapplicabletogetherwiththedatethereofforthe
firstfiveyearssubsequenttothedateofsuchreductionorincrease.
Capital Workinprogress
CapitalWork
in progressshouldnotincludecapitaladvances,suchadvancesshouldbeclassified
should not include capital advances such advances should be classified
underShorttermadvancesunderCurrentAdvances.
Livestock
K Intangibleassets
(i)
Classificationshallbegivenas:
(a)
(b)
( )
(c)
(d)
(e)
(f)
(g)
(h)
(i)
Goodwill.
Brands/trademarks.
C
Computersoftware.
f
Mastheadsandpublishingtitles.
Miningrights.
Copyrights and patents and other intellectual property rights services and operating rights
Copyrights,andpatentsandotherintellectualpropertyrights,servicesandoperatingrights.
Recipes,formulae,models,designsandprototypes.
Licensesandfranchise.
Others(specifynature).
(ii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthe
beginningandendofthereportingperiodshowingadditions,disposals,acquisitionsthrough
businesscombinationsandotheradjustmentsandtherelatedamortizationandimpairment
losses/reversalsshallbedisclosedseparately.
/
(iii) Wheresumshavebeenwrittenoffonareductionofcapital orrevaluationofassetsorwhere
sumshavebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuch
writeoff,oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayof
it ff
dditi
h ll h th
d d i
d fi
li bl
d h ll b
f
anotealsoshowtheamountofthereductionorincreaseasapplicabletogetherwiththedate
thereofforthefirstfiveyearssubsequenttothedateofsuchreductionorincrease.
L Noncurrentinvestments shallbeclassifiedas:
(i) tradeinvestments(*) andotherinvestments andfurtherclassifiedas:
(a) Investmentproperty;
(b) InvestmentsinEquityInstruments;
(c) Investmentsinpreferenceshares
(d) InvestmentsinGovernmentortrustsecurities;
Investments in Government or trust securities;
(e) Investmentsindebenturesorbonds;
(f) InvestmentsinMutualFunds;
(g) Investmentsinpartnershipfirms
(h) Othernoncurrentinvestments(specifynature)
Other non current investments (specify nature)
(*)Tradeinvestmentmeansaninvestmentmadeinsharesordebenturesofothercompany
withtheintensiontopromotethetradeandbusinessofthatcompany.
Undereachclassification,detailsshallbegivenofnames ofthebodiescorporate(indicating
separatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)jointventures,or(iv)
controlledspecialpurposeentities)inwhominvestmentshavebeenmadeandthenatureand
extentoftheinvestment somade(showingseparatelythepartlypaidinvestments).Inregardto
investmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheir
p
p
p
,
(
partners,totalcapitalandthesharesofeachpartner)shallbegiven.
AllProvisioninrespectofdisclosuresrequiredunderAS 13hastobecompliedwith.
AS 13AccountingforInvestmentshasdefinedCurrentinvestments,asinvestmentswhichare
readilyrealisable
dl
l bl andintendedtobeheldformorethanoneyearfromthedateonwhichsuch
d
d d b h ld f
h
f
h d
h h
h
investmentismade.
Thiscriterionisdifferentascomparedtoconceptofcurrentassetwheretheperiodof
p
p
p
realizationis12monthsfromthereportingdate.
PresentationofallinvestmentsinBalancesheetshouldbebasedoncurrent/non current
classificationasperRevisedScheduleVIandnotasperAS 13,sinceAS13doesnotlay
d
downpresentationnorms.
i
(ii) Investmentscarriedatotherthanatcostshouldbeseparatelystatedspecifyingthebasisfor
valuation
(iii) Theaggregateamountofprovisionfordiminutioninvaluemadeinrespectofallnon
The aggregate amount of provision for diminution in value made in respect of all non
currentinvestmentsshouldbeseparatelydisclosed
(iv) InvestmentsinLimitedLiabilitiesPartnership(LLP)shouldbedisclosedseparatelyunderthe
titleOtherInvestments.SuchinvestmentsshouldnotbeclubbedwithPartnershipfirms.
p
(v) Thefollowingshallalsobedisclosed:
(a)Aggregateamountofquotedinvestmentsandmarketvaluethereof;
(b)Aggregateamountofunquotedinvestments;
(c)Aggregateprovisionfordiminutioninvalueofinvestments
Investment in same management company

Investmentinsamemanagementcompany
Investmentspurchasedandsoldduringtheyeararenotrequiredtobeshown
inthisNote.
M Longtermloansandadvances
g
(i) Longtermloansandadvancesshallbeclassifiedas:
(a) CapitalAdvances;(Example 7)
((b)) SecurityDeposits;
y p
;
(c) Loansandadvancestorelatedparties (givingdetailsthereof);
(d) Otherloansandadvances(specifynature). (fewexamplesarePrepaidexpenses,
Advancetaxes,Cenvat creditreceivable,VATcreditreceivable,MATcredit)
(ii) Theaboveshallalsobeseparatelysubclassifiedas:
(a) Secured,consideredgood;
(b) Unsecured,consideredgood;
(c) Doubtful.
(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevant
headsseparately.
(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthemeither
severallyorjointlywithanyotherpersonsoramountsduebyfirmsorprivatecompanies
respectivelyinwhichanydirectorisapartneroradirectororamembershouldbe
separately stated Give separate break upundereachsuchloans/advances
separatelystated.Giveseparatebreak
up under each such loans/advances
(v) LoansandAdvancestorelatedpartiesshouldbegiveninaccordancewithdisclosure
requirementofAS18.
Disclosurepatterncouldbeasfollows:
p
Longtermloansandadvancesshallbedisclosedas:
(1)
CapitalAdvances
((a))
Secured,consideredgood
,
g
(b)
Unsecured,consideredgood
(2)
Prepaidexpenses unsecured,consideredgood
st March)
((3))
Advancetax(NetofprovisionofRsasat31
(
p
) unsecured,,
consideredgood.
N Othernoncurrentassets
(i) LongTermTradeReceivables(includingtradereceivablesondeferredcreditterms);
(ii) Others(specifynature)
((iii)) LongtermTradeReceivables,shallbesubclassifiedas:
g
,
(i) (a) Secured,consideredgood;
(b) Unsecuredconsideredgood;
((c)) Doubtful
(ii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheads
separately.
(iii) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeither
severallyorjointlywithanyotherpersonordebtsduebyfirmsorprivatecompanies
respectivelyinwhichanydirectorisapartneroradirectororamembershouldbe
separatelystated.
Th
TheunamortizedportionofexpensesshouldbeclassifiedOtherslikeissueexpenses.
ti d
ti
f
h ld b l ifi d Oth lik i
OCurrentInvestmentsshallbeclassifiedas:
(i) (a)
(b)
(c)
(d)
(e)
(f)
(g)
InvestmentsinEquityInstruments;
InvestmentinPreferenceShares
Investmentsingovernmentortrustsecurities;
Investmentsindebenturesorbonds;
InvestmentsinMutualFunds;
Investmentsinpartnershipfirms
Other investments (specify nature)
Otherinvestments(specifynature).
Undereachclassification,detailsshallbegivenofnamesofthebodiescorporate
(indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)joint
ventures,or(iv)controlledspecialpurposeentities)inwhominvestmentshavebeen
madeandthenatureandextentoftheinvestmentsomadeineachsuchbodycorporate
(showingseparatelyinvestmentswhicharepartlypaid).Inregardtoinvestmentsinthe
capitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheirpartners,
total capital and the shares of each partner) shall be given
totalcapitalandthesharesofeachpartner)shallbegiven.
(ii) Thefollowingshallalsobedisclosed:
(a)
(b)
(c)
(d)
Thebasisofvaluationofindividualinvestments(Nottobedisclosedfornoncurrent
investments))
Aggregateamountofquotedinvestmentsandmarketvaluethereof;
Aggregateamountofunquotedinvestments;
Aggregateprovisionmadefordiminutioninvalueofinvestments.
P Inventories shallbeclassifiedas:
shall be classified as:
(i) (a) Rawmaterials;
(b) Workinprogress;
(c) Finishedgoods;
Finished goods;
(d) Stockintrade(inrespectofgoodsacquiredfortrading);
(e) Storesandspares;
(f)
Loose tools;
Loosetools;
(g) Others(specifynature).
(ii) Goodsintransitshallbedisclosedundertherelevantsubheadofinventories.
(iii) Modeofvaluationshallbestated.
Mode of valuation shall be stated
AnyExcessmaterialwhichisnotlikelytoberealizedwithincompanysoperatingcycleis
to be considered as Current
tobeconsideredas
CurrentAsset
Asset..(Example
(Example 9)
Q TradeReceivables
(i) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpaymentneedto
Trade receivables outstanding for 6 months or more from the due date for payment need to
beseparatelydisclosed
(ii) Tradereceivablesshallbesubclassifiedas:
Secured, considered good;
(b) Unsecuredconsideredgood;
(c) Doubtful.
(iii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheads
Allowance for bad and doubtful debts shall be disclosed under the relevant heads
separately.
(iv) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyor
jointlywithanyotherpersonordebtsduebyfirmsorprivatecompaniesrespectivelyin
whichanydirectorisapartneroradirectororamembershouldbeseparatelystated.
(Example 10)
Debtsduefromothercompaniesunderthesamemanagementaspersection370(1B).
Themaximumamountduebydirectorsorotherofficersatanytimeduringtheyearshownby
wayofanote.
DisclosureofSundryDebtorsearlierincludesduesinrespectof:
a) goodssoldand/orservicesprovided
b) AmountdueunderContractualobligations.
R Cashandcashequivalents
q
shallbeclassifiedas:(Example
(
p 8))
(i) (a) Balanceswithbanks;
(1) OnCurrentAccounts
((2)) DepositswithOriginalmaturitylessthan3months
p
g
y
(3) Unpaiddividendaccount
(b) Cheques,draftsonhand;
((c)) Unpaidmatureddeposits
p
p
(d) Unpaidmatureddebentures
(e) Cashonhand;
((f))
Othersbankbalances(specifynature).
(p y
)
(1)
Depositswithorginalmaturityformorethan12months
(2)
Depositswithorginalmaturityformorethan3monthsbutlessthan12
months
(3)
Marginmoneydeposit
(ii) Earmarkedbalanceswithbanks(forexample,forunpaiddividend)shallbeseparately
stated.
((iii)) Balanceswithbankstotheextentheldasmarginmoneyorsecurityagainstthe
g
y
y g
borrowings,guarantees,othercommitmentsshallbedisclosedseparately.
(iv) Repatriationrestrictions,ifany,inrespectofcashandbankbalancesshallbeseparately
stated.
(v) Bankdepositswithmorethan12monthsmaturityshallbedisclosedseparately.
BifurcationtoCurrent,Fixeddepositetc.isnotrequirednow
Bif
i
C
Fi d d
i
i
i d
ItisnotrequiredtobifurcatetobankstoScheduledandOtherbanks
SShorttermloansandadvances shallbeclassifiedas:
(i) (a) Loansandadvancestorelatedparties(givingdetailsthereof);
(b) Others(specifynature).
((ii)) Theaboveshallalsobesubclassifiedas:
(b) Unsecured,consideredgood;
((c)) Doubtful.
(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevant
headsseparately.
(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthem
eitherseverallyorjointlywithanyotherpersonoramountsduebyfirmsorprivate
companiesrespectivelyinwhichanydirectorisapartneroradirectororamembershall
beseparatelystated.
( ) Tradereceivablesoutstandingfor12monthsormorefromtheduedateforpayment
(v)
T d
i bl
t t di f 12
th
f
th d d t f
t
(againstearlierrequirementofinvoicedate)needtobeseparatelydisclosed
(vi) UnderOtherscurrentassetswhichdoesnotfitintootherassetswillbeclassifiedhere;
eg. unamortised premium on forward contract, etc.
eg.unamortisedpremiumonforwardcontract,etc.
T
Othercurrentassets(specifynature).
(p y
)
Thisisanallinclusiveheading,whichincorporatescurrentassetsthatdonotfitintoany
otherassetcategories.
Theheadcontainsitemssuchas:
1)
Interestaccruedoninvestments
2)
Unbilledrevenue
SuchbalancesshouldbeincludedhereinOtherCurrentAssets:
(i)
Insuranceclaimsreceivable
(ii) SaleofFixedAssets
(iii) Contractuallyreimbursablebalances.
ItmustmenotedthattheseitemsshouldnotbeincludeinTradereceivablebalance
U Contingentliabilitiesandcommitments
(totheextentnotprovidedfor)
(i) (a) Claimsagainstthecompanynotacknowledgedasdebt;
(b) Guarantees;
(c) Othermoneyforwhichthecompanyiscontingentlyliable
(ii) Commitmentsshallbeclassifiedas:
(a) Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnot
providedfor;
id d f
(b) Uncalledliabilityonsharesandotherinvestmentspartlypaid
(c) Othercommitments(specifynature).(Example 6)
willincluderevenueandcapitalcommitments.Therefore,itwillincludethosenon
will include revenue and capital commitments Therefore it will include those non
cancellablecontractualcommitmentsforpurchaseofRM&PM,purchaseof
investments,salescontracts,servicecontractsi.e.thecancellationofwhichresultin
penalty.Itwillalsoincludecommitmentsinnatureofbuybackarrangements,
commitmentfromsubsidiaries,JVs,derivativerelatedcommitments.
i
f
b idi i JV d i i
l d
i
WhencompaniesundertakestoperformitsownobligationandgivesGuaranteethenitisnot
consideredContingentLiability.BanksgenerallygiveGuaranteefor:
1) LC
2) Fordeferredpaymenttoforeignsuppliers,etc.
forthispurposeevenifcompanygivescounterguaranteetobankisnotcontingentliability.
V The amount of dividends proposed to be distributed to equity and preference
shareholders for the period and the related amount per share shall be disclosed
separately. Arrears of fixed cumulative dividends on preference shares shall also be
di l d separately.
disclosed
l
W Where in respect of an issue of securities made for a specific purpose, the whole or part
of the amount has not been used for the specific purpose at the balance sheet date,
date
there shall be indicated by way of note how such unutilized amounts have been used or
invested.
X If, in the opinion of the Board, any of the assets other than fixed assets and noncurrent
investments do not have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated, the fact that the Board is of that opinion,
shall be stated.
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
1
2
AllprovisionsofProfit&LossaccountwillalsobeapplicabletoIncome&Expenditureaccountwhichis
generallypreparedbyCompaniesnotcarryingonbusinessforprofit.
ll
db C
i
t
i
b i
f
fit
RevenuefromOperations(otherthanfinancecompany)shallbedisclosedinnotes:
(A) (a) saleofproducts(*)
(b) saleofservice
(c) Otheroperatingrevenue(shallincludescrapsales)(
Other operating revenue (shall include scrap sales) (**))
Less:
(d) Exciseduty(Opinion)
(*)(1)wherecompanycollectstaxonlyasanintermediary,revenueshouldbepresentedNetof
taxes.
taxes
(2)VATisnotrevenueanditspaymentshouldnotbebookedasanexpense
(**)whichincomewillfallunderthisheadingshouldbedecidedbasedonfactsofeachcaseand
detailedunderstandingoftheactivitiesofthecompany.
((B)) RevenuefromOperationsincaseoffinancecompany
p
p y:
(a) interest
(b) otherfinancialservices
Revenueundereachoftheaboveheadsshallbedisclosedseparatelybywayofnotestoaccountstothe
extentapplicable.
Financialcostsshallbeclassifiedas:
(a)
interestexpense
(b)
Otherborrowingcosts;(includes(1)Commitmentcharges,(2)loanprocessingcharges,(3)loan
facilitationcharges,(4)discount/premiumonborrowings,(5)interestonshortfallonIncometax)
(c)
Applicablenetgain/lossonforeigncurrencytransactionsandtranslation.(Guide)
OtherIncome (**)shallbeclassifiedas:
(a)
InterestIncome(incaseofacompanyotherthanafinancecompany);
IncomefrominvestmentwerebifurcatedtoTradeinvestmentandotherinvestmentssuch
bifurcationisnotrequiredinrevisedformat.
(b)
DividendIncome;
(c)
Net gain/ loss on sale of investments fixed assets and ERF gain
Netgain/lossonsaleofinvestments,fixedassetsandERFgain
(d)
Othernonoperatingincome(netofexpensesdirectlyattributabletosuchincome).
5 AdditionalInformationbywayofnotes onadditionalinformationregardingaggregateexpenditure
andincomeonthefollowingitems:
(i) (a)
EmployeeBenefitsExpense[showingseparately
(i) salariesandwages,
(ii) contributiontoprovidentandotherfunds,(willalsoincludesuperannuation,gratuity)
(iii) expenseonEmployeeStockOptionScheme(ESOP)&EmployeeStockPurchase
expense on Employee Stock Option Scheme (ESOP) & Employee Stock Purchase
Plan(ESPP),
(iv)staffwelfareexpenses].
(b)
Depreciationandamortizationexpense;
(c)
Anyitemofincomeorexpenditurewhichexceeds1%oftherevenuefrom
operationsorRs.1,00,000,whicheverishigher;
(d)
InterestIncome;
(e)
Interest Expense;
InterestExpense;
(f)
DividendIncome;
(g)
Netgain/lossonsaleofinvestments;
(h)
Adjustmentstothecarryingamountofinvestments;
(i) Netgainorlossonforeigncurrencytransactionandtranslation(otherthanconsideredasfinance
cost);
(j) Paymentstotheauditoras
(a)
auditor,
((b))
fortaxationmatters,,
(c)
forcompanylawmatters,
(d)
formanagementservices,
(e)
forotherservices,
((f))
forreimbursementofexpenses;
p
;
(k)
Detailsofitemsofexceptionalandextraordinarynature;
(l)
Priorperioditems;
(ii) (a) Inthecaseofmanufacturingcompanies,
(1) Rawmaterialsunderbroadheads.
Raw materials under broad heads
(2) goodspurchasedunderbroadheads.
BroadheadsmeanscategoriesforRMpurchased.10%oftotalvalueofsales/consumption
ofRMisanacceptablethresholdtodetermineBroadheads.
Note: Broadheadsshallbedecidedtakingintoaccounttheconceptof
materialityandpresentationoftrueandfairviewoffinancialstatements.
(b)
(c)
Inthecaseoftradingcompanies,purchasesinrespectofgoodstradedinbythecompanyunder
In
the case of trading companies purchases in respect of goods traded in by the company under
broadheads.
Inthecaseofcompaniesrenderingorsupplyingservices,grossincomederivedformservices
renderedorsuppliedunderbroadheads.
(d) Inthecaseofacompany,whichfallsundermorethanoneofthecategoriesmentioned
in(a),(b) and(c)above,itshallbesufficientcompliancewiththerequirementsherein
ifpurchases,sales andconsumptionofrawmaterialandthegrossincomefrom
servicesrenderedisshownunderbroadheads.
(e) Inthecaseofothercompanies,grossincomederivedunderbroadheads.
In the case of other companies gross income derived under broad heads
(iii) Inthecaseofallconcernshavingworksinprogress,worksinprogressunderbroadheads.
(iv) (a) The
Theaggregate,ifmaterial,ofanyamountssetasideorproposedtobesetaside,to
aggregate if material of any amounts set aside or proposed to be set aside to
reserve,butnotincludingprovisionsmadetomeetanyspecificliability,contingencyor
commitmentknown toexistatthedateastowhichthebalancesheetismadeup.
((b)) Theaggregate,ifmaterial,ofanyamountswithdrawnfromsuchreserves.
gg g ,
,
y
(v) (a) Theaggregate,ifmaterial,oftheamountssetasidetoprovisionsmadeformeeting
specificliabilities,contingenciesorcommitments.
(b) Theaggregate,ifmaterial,oftheamountswithdrawnfromsuchprovisions,asnolonger
required.
(vi) Expenditureincurredoneachofthefollowingitems,separatelyforeachitem:
(a) Consumptionofstoresandspareparts.
(b) Powerandfuel.
(c) Rent.
(d) Repairstobuildings.
R i t b ildi
(e) Repairstomachinery.
(g) Insurance.
(h) Ratesandtaxes,(excludingtaxesonincomebutincludingWealthtax)
Rates and taxes (excluding taxes on income but including Wealth tax)
(i)
Miscellaneousexpenses,
(vii) (a) Dividendsfromsubsidiarycompanies.
(b) Provisionsforlossesofsubsidiarycompanies.
P ii
f l
f b idi
i
(viii) Theprofitandlossaccountshallalsocontainbywayofanote thefollowing
information,namely:
a) ValueofimportscalculatedonC.I.F. basisbythecompanyduringthefinancialyear
inrespectof
I.
Rawmaterials;
II
II.
C
Componentsandspareparts;
t
d
t
III.
Capitalgoods;
b))
c)
d)
e)
Expenditureinforeigncurrency
p
g
y duringthefinancialyearonaccountofroyalty,
g
y
y y
knowhow,professionalandconsultationfees,interest,andothermatters;
Totalvalueifallimportedrawmaterials,sparepartsandcomponentsconsumed
duringthefinancialyearandthetotalvalueofallindigenousrawmaterials,spare
partsandcomponentssimilarlyconsumed
d
i il l
d andthepercentageofeachtothetotal
d h
f
h
h
l
consumption;
Theamountremittedduringtheyearinforeigncurrenciesonaccountof
dividends withaspecificmentionofthetotalnumberofnon
with a specific mention of the total number of nonresident
resident
shareholders,thetotalnumberofshares
heldbythemonwhichthe
dividendsweredueandtheyeartowhichthedividendsrelated;
Earningsinforeignexchangeclassifiedunderthefollowingheads,namely:
(i) ExportofgoodscalculatedonF.O.B. basis;
(ii) Royalty,knowhow,professionalandconsultationfees;
(iii) Interestanddividend;
(iv) Otherincome,indicatingthenaturethereof
NotrequiredtomentioninnotesofRevisedSchedule VI:
Quantityofsales
Q
QuantityofRawmaterialconsumed
y
Installedcapacityandproductiondetails
Theamountofinterestoncompanysdebenturesandfixedloanstomanaging
directorandmanager.
M
Managerialremunerationtobepaidorpayableaspersection198and
i l
ti t b
id
bl
ti 198 d
commissionpayabletodirectorsaspersection349.
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
A SHARECAPITAL:
1) Reconciliationofopeningandclosingofnumberofsharesoutstanding
2) Sharesheldbyassociatesoftheholdingcompanyorultimateholdingcompany
3) NameandNumberofsharesheldbyshareholdersholdingmorethan5%shares(asthereference
d t i
dateisnotmentioned,logicallyitshouldbeBalancesheetdate)
t
ti
d l i ll it h ld b B l
h td t )
4) Incaseofsecuritiesconvertibleintoequity/preferencesharesthenworkingfordateofconversion
indescendingorderstartingfromthefarthestsuchdate.
B CURRENTLIABILITES:
CURRENT LIABILITES :
Amountofliabilitiesduetobesettledwithin12monthsfromthereportingdate,forworkingof
currentliabilities
B1 LONGTERMBORROWINGS:
Theentirepointisnew,hencethecompanywillhavetofindout:
1) Termloan longtermandshortterm.
2) Deposits(includingfixeddeposits) longtermandshortterm.
3) Loanfromrelatedparties
Loan from related parties longtermandshortterm.
long term and short term
4) TradePayable longtermandshortterm.
5) Provisionforemployeebenefits longtermandshortterm.
g
y
g
6)) Bonds/debenturesshallbestatedindescendingorderofmaturitystartingfromfarthest
redemption.
7) Termsofrepaymentoftermloansandotherloansshallbestated.
8) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest.
B2 SHORTTERMBORROWINGS:
1) Loansthatarerepayableondemand(includesLoansforworkingcapital)
2) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest
g
g
Note: workingtobifurcateAllBorrowings&ProvisionstoLONGTERMandSHORTTERM
B3
1))
2)
3)
4))
OTHERCURRENTLIABILITES:
Amountofcurrentmaturitiesoflongtermdebt
g
Amountofcurrentmaturitiesforfinancelease
Amountofincomereceivedinadvance
Amountofinterestaccruedonmatureddepositsanddebentures
p
A TANGIBLEASSETS:
1) Bifurcationofleaseassetsundereachclassofassets
2) Amountofassetsacquiredthroughbusinesscombinations(i.e.bifurcationfrom
additiontoassets)
3) Incaseofrevaluationofassets,amountofreductionandincreaseinthevalueofasset
forsubsequent5years.
B CURRENT
CURRENTASSETS:
ASSETS :
Bifurcationofassetswhichareexpectedtoberealizedandconsumedinnormaloperating
cycle.
Amountofassetsexpectedtoberealizedwithin12monthsafterthereportingdate.
p
p
g
B1 NONCURRENTINVESTEMENTS:
1) Amountofinvestmentinproperty(notforbusinesspurposeandwheretheintensionis
to invest)
toinvest)
2) Classificationofallnoncurrentinvestmentsin(i)subsidiaries(ii)associates(iii)joint
ventures(iv)controlledspecialpurposeentities.
B2 LONGTERMLOANSANDADVANCES:
1) AmountofCapitaladvances
2) Amountofsecuritydeposits
B3 OTHERNONCURRENTASSETS:
1) Amountoflongtermtradereceivables
B4 INVENTORIES:
1) AmountofGoods in transitundereachcategoryofinventory
B5 TRADERECEIVABLES:
1) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpayment
(againstearlierrequirementofinvoicedate)needtobeworkedout
B6
1)
2)
3)
4)
CASHANDCASHEQUIVALENTS:
Amountofcheques,draftsonhand
Earmarkedbalanceswithbanks
Repatriationrestrictionsinrespectofcashandbankbalances
Amountofbankdepositsmorethan12monthsmaturity
AdditionaldetailstobeworkedoutforpreparingProfitandlossasperRevisedSchedule VI
FINANCECOSTS:
1) Gain/Lossonforeigncurrencytransactiontobeseparatedintofinancecostsandother
expenses
OTHERINCOME:
1) Amountofdirectlyattributableexpensestoearnnonoperatingincomes.
ADDITIONALINFORMATION:
1) Detailsofincome andexpensewhichismorethan1%oftherevenuefromoperations
orRs1Lac,whicheverhigher
2) Amountofnetgainorlossonforeigncurrency(otherthanconsideredasfinancecosts)
3) DetailsofRawmaterials
4) Detailsofworksinprogress
5) Fewcircumstantialexamples ofSPEare:
1) SPEforspecialbusinessneedssothattheentityobtainsbenefitsfromtheSPEsbusiness
2) EntityhasdecisionmakingpowertoobtainmajorityofthebenefitsoftheactivitiesofSPE
3) EntityhasrightoverthebenefitsofSPEandthereforeisexposedtoriskincidenttothe
E i h i h
h b
fi f SPE d h f
i
d
i k i id
h
activitiesofSPE
4) EntityretainsthemajorityresidualorownershiprisksrelatedtoSPEoritsassetinorderto
obtainbenefitsfromitsactivities.
ChartofAccountswithOldandRevisedGrouping
Narration
Grouping Old
Grouping Rev Sch VI
TermLoan Exim bank
LoansSecured TermLoans
fromOthers
NoncurrentLiabilities Long
termborrowings Termloans
fromOthers
Corporation BankTermLoan
RupeeTermLoan II
Loans Secured TermLoans Noncurrent Liabilities Long

fromBanks
termborrowings Terms
loansfrombanks
ABC B k EEFC Account

ABCBankEEFC
A
t
LLoans Secured
S
d Working
W ki
Capital
CurrentLiabilities
C
t Li biliti Short
Sh t
termborrowings Fixed
deposit
Deferred Sales tax loan

DeferredSalestaxloan
LoansUnsecured
Loans
Unsecured Deferred
Deferred
SalesTaxloan
NonCurrentLiabilitiesLong
Non
Current Liabilities Long
termborrowingsDeferred
SalesTaxloan
Provision for RM Product A

ProvisionforRMProduct
Currentliabilitiesand
Current
liabilities and
Current Liabilities Trade
CurrentLiabilities
Trade
provisionsSundry creditors& payables
Expensespayable
DEPBUtilized Provision
Currentliabilities &
CurrentLiabilities Trade
ProvisionsSundryCreditors& payables
Expensespayable
Narration
Grouping Old
Grouping Rev Sch VI
Clearing ChargesProvision
CurrentLiabilities &
Provisions SundryCreditors
&ExpensesPayable
Current Liabilities
TradePayables
Earnest Money
&ExpensesPayable
Current Liabilities
TradePayables
R t ti M
RetentionMoney
CurrentLiabilities
C
t Li biliti &
&
&ExpensesPayable
Currentt Liabilities
C
Li biliti
TradePayables
SupplierAdvances
Supplier
Advances Raw
Raw
Material
CurrentAssets,Loans
Current
Assets Loans &
&
Advances Advances
recoverableincashorkind
CurrentAssets
Current
Assets Short
Short term
term
Loans&Advances
(referNote1)
Supplier Advances General

SupplierAdvances
CurrentAssets,Loans
Current
Assets, Loans &
&
Advances Advances
recoverableincashorkind
CurrentAssets
Current
Assets Short
Short term
term
Loans&Advances
(referNote1)
BonusPayableAccount
&ExpensesPayable
CurrentLiabilities
OtherCurrentLiabilities
OtherPayablesEmployees
Narration
Grouping Old
Grouping Rev Sch VI
Staff WelfareCenter
Deductions
CurrentLiabilities&
CurrentLiabilities
Provisions SundryCreditors OtherCurrentLiabilities
&ExpensesPayable
OtherPayables Employees
OtherPayDeductions
CurrentLiabilities&
CurrentLiabilities
Provisions SundryCreditors OtherCurrentLiabilities
&ExpensesPayable
OtherPayables Employees
ProvisionofLeaveTravel
P
ii
fL
T
l
Assistance
CurrentLiabilities&
C
t Li biliti &
C
CurrentLiabilities
t Li biliti
Provisions SundryCreditors Shortterm Provision
&ExpensesPayable
EmployeesBenefits
Stale Cheques
StaleCheques
CurrentLiabilities&
Current
Liabilities &
Current Liabilities
CurrentLiabilities
Provisions SundryCreditors TradePayables Others
&ExpensesPayable
Deferred Revenue Income

DeferredRevenueIncome
CurrentLiabilities&
Current
Liabilities &
Current Liabilities
CurrentLiabilities
Provisions SundryCreditors TradePayables Others
&ExpensesPayable
AcceptanceAgainst Bills
CurrentLiabilities&
CurrentLiabilities
Provisions Current Liabilities ShorttermBorrowings
AcceptanceFromBanks
Acceptance
Narration
Grouping Old
Grouping Rev Sch VI
ProvisionExciseDuty
FinishedGoods
CurrentLiabilities&
CurrentLiabilities
Provisions SundryCreditors Shortterm Provisions
&ExpensesPayable
Other
LiabilityForExpenses
CurrentLiabilities&
CurrentLiabilities
Provisions SundryCreditors Shortterm Provisions
&ExpensesPayable
Other
Provision
P
i i MarktoMarket
M kt M k t
(MTM)LossesForward
Contracts
Currentt Liabilities&
C
Li biliti &
Provisions Provisions
Other
CurrentLiabilities
C
t Li biliti
Shortterm Provisions
Other
Provision For Gratuity

ProvisionForGratuity
CurrentLiabilities&
Current
Liabilities &
EmployeesBenefits
NoncurrentLiabilities
Non
current Liabilities
LongtermProvision
EmployeeBenefits
Provision ForEarnedLeave
For Earned Leave
Encashment
CurrentLiabilities&
Current
Liabilities &
EmployeesBenefits
Non currentLiabilities
Noncurrent
Liabilities
LongtermProvision
EmployeeBenefits
SecurityDeposit Contractor
CurrentLiabilities
Provisions CurrentLiabilities OtherCurrent Liabilities
TradeDeposits&Advances TradeDeposit&Advances
Narration
Grouping Old
Grouping Rev Sch VI
TDS Contractors
CurrentLiabilities&
CurrentLiabilities Other
Provisions CurrentLiabilities CurrentLiabilities SalesTax
OtherLiabilities
&WithholdingTaxesPayable
Current
C
t
CST Collected
CurrentLiabilities&
OtherLiabilities
Other Liabilities
& Withholding Taxes Payable
Current
EntryTaxPayable
CurrentLiabilities&
Provisions CurrentLiabilities
Provisions
Current Liabilities CurrentLiabilities
Current Liabilities Sales
SalesTax
Tax
OtherLiabilities
Current
ExciseDutyPayable
CurrentLiabilities&
OtherLiabilities
Current
ProvisionForIncomeTax
CurrentLiabilities&
Income Tax&WealthTax
CurrentLiabilities Short
termProvisions IncomeTax
&WealthTax
Narration
Grouping Old
Grouping Rev Sch VI
ProvisionForDividend
Equity
CurrentLiabilities&
DividendonEquityShares
CurrentLiabilities Short
term Provisions Dividendon
EquityShares
AdvanceFrom Customers
Current Liabilities&
Provisions CurrentLiabilities CurrentLiabilities Trade
TradeDeposits&Advances Deposit&Advances
SODEXHOVoucherinHand
Current Assets Cash&Bank CurrentAssets Cash &Cash

Balances CashinHand
Equivalents CashinHand
Imprest UK Office
ImprestUKOffice
Current Assets
Assets Cash&Bank
Cash & Bank CurrentAssets
Current Assets Cash &Cash
& Cash
Balances CashinHand
PostageImprest
Current Assets Cash&Bank CurrentAssets Cash &Cash

Balances CashinHand
Balances
Cash in Hand
Equivalents
Cash in Hand
ClaimsRecoverableDEPB
LicenseinHand
CurrentAssets Loans&
Advances Advances
RecoverableinCashorKind
CurrentAssets Other
CurrentAssets Other
TradedepositsandSecurity
deposits
Advances Deposits
OtherNoncurrent/longterm
liabilities
CurrentLiabilities
Narration
Grouping Old
Grouping Rev Sch VI
Staff HousingLoan
CurrentAssets Loans &

Advances Advances
NonCurrent Assets Long

termLoans&Advances
Employees
StaffAdvance AgainstSalary CurrentAssets Loans &

Advances Advances
CurrentAssets Shortterm
Loans&Advances
Employees
Staff
St
ff Advance
Ad
F ll & Fi l
Full&Final
Cases
CurrentAssets
C
t A t Loans
L
&
&
Advances Advances
CurrentAssets
C
t A t Shortterm
Sh t t
Loans&Advances
Employees
Deposit With GSEB

DepositWithGSEB
CurrentAssets
Current
Assets Loans&
Loans &
Advances Deposits
NonCurrent
Non
Current Assets
Assets
OtherNonCurrentAssets
SecurityDeposits
Security Deposit
SecurityDeposit
CurrentAssets
Current
Assets Loans&
Loans &
Advances Deposits
Non Current Assets

NonCurrent
Assets
OtherNonCurrentAssets
SecurityDeposits
DepositWith Suppliers
Advances Deposits
NonCurrent Assets Other

NonCurrentAssets Security
Deposits
Narration
Grouping Old
Grouping Rev Sch VI
DepositsWithSalesTax
Advances Depositswith
Excise&SalesTax
Loans&Advances
Deposit/BalanceWithExcise
& Sales Tax
&SalesTax
Basic ExciseDuty(PLA)
Excise&SalesTax
Loans&Advances
p
&SalesTax
Balancein RG23
Excise&SalesTax
Loans&Advances
&SalesTax
VATABLE Cess
Ad
Advances
Depositswith
D
it ith
Excise&SalesTax
L
Loans&Advances
& Ad
&SalesTax
State Excise(PLA)
Excise (PLA)
CurrentAssets
Current
Assets Loans&
Loans &
Excise&SalesTax
CurrentAssets
Current
Assets Short
Shortterm
term
Loans&Advances
&SalesTax
Narration
Grouping Old
Grouping Rev Sch VI
MODVATCapitalGoods
Excise&SalesTax
Loans&Advances
& Sales Tax
&SalesTax
ServiceTax Recoverable
Excise&SalesTax
Loans&Advances
p
&SalesTax
SalesTaxRecoverable
Excise&SalesTax
Loans&Advances
&SalesTax
ServiceTaxCENVATCredit
Ad
Advances
Depositswith
D
it ith
Excise&SalesTax
L
Loans&Advances
& Ad
&SalesTax
VAT Recoverable
VATRecoverable
CurrentAssets
Current
Assets Loans&
Loans &
Excise&SalesTax
CurrentAssets
Current
Assets Short
Shortterm
term
Loans&Advances
&SalesTax
Narration
Grouping Old
Grouping Rev Sch VI
Advance IncomeTax
Advances Advance Payment Loans& Advances Advance
ofIncomeTax&WealthTax
PaymentofIncomeTax&
Wealth Tax
WealthTax
IncomeTaxDeductedAt
Source
Advances Advance Payment Loans& Advances Advance
of Income Tax & Wealth Tax
ofIncomeTax&WealthTax
Payment of Income Tax &
PaymentofIncomeTax&
WealthTax
MAT CreditEntitlement
Receivable
Advances MATCredit
Entitlement
Loans&Advances MAT
CreditEntitlement
Profit SaleofInvestments
Other Income Net

Gain/LossonCurrent
Investments
OtherIncome Net
Gain/LossonCurrent
Investments
InterestonIncomeTax
RefundReceived
Other Income
MiscellaneousReceipts
OtherIncome OtherNon
OperatingIncome
OtherIncome
OtherIncome OtherNon
OperatingIncome
Narration
Grouping Old
Grouping Rev Sch VI
Profit Saleof
Profit
Sale of FixedAssets
Fixed Assets
OtherIncome
Other
Income ProfitonSale
Profit on Sale
ofFixedAssets
OtherIncome
Other
Income ProfitonSale
Profit on Sale
ofFixedAssets
Increase/DecreaseinFinished Increase/Decrease inFinished ChangeinInventoriesof

Stock
Stock
Finished GoodsWork
Goods Workin
in
ProgressandStockinTrade
JobWorkCharges
Manufacturing&Other
Other Manufacturing
Expenses
p
ProcessingCharges
g
g
Expenses
p
ProcessingCharges
g
g
InternalAuditFees
Manufacturing&Other
Expenses Legal&
Professional
OtherExpenses Legal&
Professional
PatentRelatedExpenses
Manufacturing&Other
Expenses PatentRelated
Expenses
OtherExpenses Legal&
Professional
DirectorCommission
Manufacturing&Other
Expenses Advertisement&
Publicity
OtherExpenses Director
Commission
S l
SalesPromotion
i
Gif
Gifts
Manufacturing&Other
f
i &O h
Publicity
OtherExpenses
O
h
Advertisement& Publicity
Narration
Grouping Old
Grouping Rev Sch VI
ForeignCurrencySwap
Exchange Fluctuations
Manufacturing&Other
Expenses FinancialCharges
FinanceCost Other
BorrowingCost
ForeignExchange
FluctuationsFCCB
Manufacturing&Other
FinanceCost Other
BorrowingCost
ForeignExchange
Fluctuations Markto
M k t (MTM) L
Market(MTM)Losses
Manufacturing&Other
FinanceCost Other
BorrowingCost
ForeignExchange
FluctuationsImports
Manufacturing&Other
Other Expenses Foreign

ExchangeFluctuation
ForeignCurrencyRate
DifferenceExports
Manufacturing&Other
Other Expenses Foreign

ExchangeFluctuation
CommissionConsignment
Agent
Manufacturing&Other
Expenses Commissionon
Expenses
Commission on
Sales
OtherExpenses
Commission on Sales
CommissiononSales
SalesTaxExpenses
Manufacturing&Other
Expenses Claimsto
Expenses
Claims to
Customer &OtherSelling
Expenses
OtherExpenses Claimsto
& Other Selling
Expenses
Narration
Grouping Old
Grouping Rev Sch VI
ExpensesofC&FAgents
Manufacturing&Other
Expenses Claimsto
Expenses
OtherExpenses Claimsto
Expenses
SundryDebit/Credit Balances
WrittenOff
Manufacturing&Other
Expenses Miscellaneous
Expenses
OtherExpenses
Miscellaneous Expenses
ListingFees
Manufacturing&Other
Expenses
OtherExpenses
AmountRoundedOff
Manufacturing&Other
Expenses
OtherExpenses
Provision IncomeTaxForthe ProvisionForIncomeTax

Year
Expenses
ProvisionForIncomeTaxExp
MATCredit Entitlement
E
Expense/Income
/I
MATCreditEntitlement
E /I
Exp/Income
MATCreditEntitlement
E /I
Exp/Income
Meetings&Conference
Expense
Manufacturing&Other
Publicity
OtherExpenses
Advertisement&Publicity
BackupSlide
Relatedparty
Partiesareconsideredtoberelatedifatanytimeduringthereportingperiodoneparty
hastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheother
party in making financial and/or operating decisions [AS 18]
partyinmakingfinancialand/oroperatingdecisions.[AS18]
Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofan
enterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthe
compositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,
the financial and/or operating policies of the enterprise
thefinancialand/oroperatingpoliciesoftheenterprise.
Significantinfluence
Participationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnot
controlofthosepolicies.
BackupSlide
Relatedparty
Control
enterprise,or
BackupSlide
Relatedparty
Control
enterprise,or
BackupSlide
Relatedparty
Control
enterprise,or
BackupSlide
Relatedparty
Control
enterprise,or
BackupSlide
DisclosurerequirementsofInvestmentsasperAS 13
Thefollowinginformationshouldbedisclosedinthefinancialstatements:
(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;
AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue
(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationin
currentandlongterminvestment;
(c)theamountsincludedinprofitandlossstatementfor:
(i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and
interest dividends (showing separately dividends from subsidiary companies) and
rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrent
investments.Grossincomeshouldbestated,theamountofincometaxdeductedat
sourcebeingincludedunderAdvanceTaxesPaid;
(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamount
ofsuchinvestments;and
(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarrying
amountofsuchinvestments;;
(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor
theremittanceofincomeandproceedsofdisposal;
(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate
marketvalueofquotedinvestments;
(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe
enterprise.
BackupSlide
DisclosurerequirementsofInvestmentsasperAS 13
Thefollowinginformationshouldbedisclosedinthefinancialstatements:
(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;
AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue
(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationin
currentandlongterminvestment;
(c)theamountsincludedinprofitandlossstatementfor:
(i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and
interest dividends (showing separately dividends from subsidiary companies) and
rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrent
investments.Grossincomeshouldbestated,theamountofincometaxdeductedat
sourcebeingincludedunderAdvanceTaxesPaid;
(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamount
ofsuchinvestments;and
(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarrying
amountofsuchinvestments;;
(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor
theremittanceofincomeandproceedsofdisposal;
(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate
marketvalueofquotedinvestments;
(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe
enterprise.
BackupSlide
Excisedutydisclosure:
y
AS 9requiresthattherevenueshouldbedisclosed:
Turnover(Gross)
(
)
XX
Less:ExciseDuty
XX
Turnover(Net)
XX
ThisissomewhatdifferentthenasrequiredinrevisedScheduleVIasdiscussedearlier.
q
Giventhefactaccountingstandardswillhaveanoverridingeffectoverrevised
ScheduleVIandsoourviewisthatexcisedutyshouldbedeductedfromsalesof
products.
BackupSlide
Practicalguidanceonnetgain/lossofforeigncurrencytransactions:
g
g /
g
y
IntheviewofAS 16whichstatesthatborrowingcosts,mayincludeexchange
differencesarisingfromforeigncurrencyborrowingstotheextentthattheyare
regardedasanadjustmenttointerestcosts.Thus,gainorlossonforeigncurrency
transactionstobeshownunderfinancecostsshouldbelimitedtothisamountonly.
Othergainsandlossshouldbeshownseparatelyunderappropriateheads.
Backupslide
ExamplesofOperatingcycle:
Q 1)
BLtdproducesaircraft.Thelengthoftimebetweenfirstpurchasingrawmaterial
[RM]tomakingtheaircraftsandthedatethecompanycompletestheproduction
anddeliveryis9months.Thecompanyreceivespaymentfortheaircrafts7
d d li
i 9
th Th
i
t f th i
ft 7
monthsafterthedelivery.
A. Whatisthelengthofoperatingcycle?
B Howshouldittreatitsinventoryanddebtors?
B.
How should it treat its inventory and debtors?
Backupslide
Examples:
A 1
A)
B)
operatingcycleisof16months
inventoryanddebtorshouldbeclassifiedascurrent
Backupslide
Examples:
Q 2)
RMholdingperiod:3months
WIPholdingperiod:1month
FGholdingperiod:5months
Debtorscollectionperiod:5months
Whatistheoperatingcycle?
Backupslide
Examples:
A 2)
Operatingcycleis14months[RM+WIP+FG(holdingperiod)+Debtorscollection
period]
Backupslide
Examples:
Q 3)
Canacompanyengagedindiversifiedoperationshavedifferentoperatingcycles
forvariousbusinesslines?
Backupslide
Examples:
A 3)
Yes.
ThereisnobarinrevisedScheduleVIforacompanytohavemultiple
operatingcycles
Backupslide
Examples:
Q 4)
Immovableinvestmentpropertyexpectedtobesoldwithin12monthsfromthe
reportingdate,howtoclassifythisproperty?
Backupslide
Examples:
A 4)
AS 13requiredthatanenterpriseholdinginvestmentshouldbeaccountedfor
thesameaslongterminvestments.Hence,despitethefactitisintendedtobe
soldwithin12monthsfromthereportingdate,sameshallbeclassifiedasnon
current.
Backupslide
Examples:
Q 5)
XLtdgivingsecuritydepositofRs15,000forthepurposeofpreparingbalance
sheetasperrevisedScheduleVI,wherethisdepositshallbeclassified?
Backupslide
Examples:
A 5)
Theintensionofthecompanyistoseekwhethercompanywantarefundwithin
12monthsfromthereportingdatethencurrentassetelsenoncurrentasset.
Backupslide
Examples:
Q 6)
OldscheduleVIrequiresonlycapitalcommitmentshallbedisclosed,however
reviseScheduleVIrequiredallcommitmentsrequirestobedisclosed.Whatisthe
natureofcommitmentstobedisclosedunderrevisedScheduleVI?
Backupslide
Examples:
A 6)
Commitmentgenerallyimpliesfutureliabilityforcontractualexpenditure.
Accordingly,allexpensesrelatedtocontractualcommitmentsapartfromcapital
expenditurearisingfromlongtermcontractsforpurchaseofrawmaterial,
dit
i i f
l
t
t t f
h
f
t i l
employeecontracts,leasecommitments,etc.Thescopeofsuchterminologyis
verywideandmayincludecontractualcommitmentsforpurchaseofinventory,
services,, investments,sales,employeecontracts,etc.Onlynoncancellable
,
,
p y
,
y
contractsshallbedisclosed.
Backupslide
Examples:
Q 7)
RevisedScheduleVIrequiredCapitaladvancestobeclassifiedunderlongterm
loansandadvances;doesitmeanall,includingtherecoverablewithin12months
shallbeclassifiedunderthishead?
Backupslide
Examples:
A 7)
Yes
Backupslide
Examples:
Q 8)
RevisedScheduleVIdoesnotdefinecashandcashequivalents,doesitmeanwe
havetofollowtherequirementsofthesameasperAS 3?
Backupslide
Examples:
A 8)
Yes.
AsAS willprevailoverscheduleVI.Thus,oneshouldchangethediscloseofcash
andbankbalanceassubheadingCashandCashEquivalentsandOtherbank
balances.TheformerheadingwillincludeonlytheasdefinedinAS 3oncash
and cash equivalent and the remaining balances as per later heading
andcashequivalentandtheremainingbalancesasperlaterheading.
Backupslide
Examples:
Q 9)
Acompanyhasexcessfinishedgoodsinventorythatitdoesnotexpect torealize
withinthecompanysoperatingcycleof15months?
Backupslide
Examples:
A 9)
SincesuchFinishedgoodsinventoryisheldprimarilyforthepurposeofbeing
traded,thesameshouldbeclassifiedasCurrent.
Backupslide
Examples:
Q 10)
Acompanyhassold10,000tonnes ofsteeltoitscustomer.Thesalecontract
providesforanormalcreditperiodfor3months.Thecompanysoperatingcycleis
6months.However,thecompanydoesnotexpecttoreceivethepaymentwithin
12 months from the reporting date Whether such receivable should be classified
12monthsfromthereportingdate.Whethersuchreceivableshouldbeclassified
underCurrentorNoncurrent?
Backupslide
Examples:
A 10)
ThisshouldbeclassifiedasNon currentinBalancesheet.Incase,the
companyexpects torealizetheamountupto 12monthsfromtheBalancesheet
date(thoughbeyondoperatingcycle)thesameshouldbeclassifiedascurrent.

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RevisedSchedule VItothe

1st &2nd Floor,H.K.House,

Revised Schedule VI is applicable to all the companies

Money received against share Warrants

Current tax (including MAToncurrenttax)

All other assets shall be classified as noncurrent

All other liabilities shall be classified as noncurrent.

Investment in same management company

Grouping Rev Sch VI

TermLoan Exim bank

Loans Secured TermLoans Noncurrent Liabilities Long

ABC B k EEFC Account

Deferred Sales tax loan

Provision for RM Product A

Grouping Rev Sch VI

Supplier Advances General

Grouping Rev Sch VI

Deferred Revenue Income

Grouping Rev Sch VI

Provision For Gratuity

Grouping Rev Sch VI

Grouping Rev Sch VI

Current Assets Cash&Bank CurrentAssets Cash &Cash

Current Assets Cash&Bank CurrentAssets Cash &Cash

Grouping Rev Sch VI

CurrentAssets Loans &

NonCurrent Assets Long

StaffAdvance AgainstSalary CurrentAssets Loans &

Deposit With GSEB

Non Current Assets

NonCurrent Assets Other

Grouping Rev Sch VI

Grouping Rev Sch VI

Grouping Rev Sch VI

Other Income Net

Grouping Rev Sch VI

Increase/DecreaseinFinished Increase/Decrease inFinished ChangeinInventoriesof

Grouping Rev Sch VI

Other Expenses Foreign

Other Expenses Foreign

Grouping Rev Sch VI

Provision IncomeTaxForthe ProvisionForIncomeTax

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