REVISED SCHEDULE VI
COMPANIES ACT, 1956
INTRODUCTION
Ministry of Company affairs (MCA) vide its notification dt. 28th Feb 2011 replaced the existing schedule VI by the Revised Schedule VI.
Revised schedule will apply to all the companies uniformly for the financial statements to be prepared for the financial year commencing on or after 01-04-2011
Comparatives for the immediately preceding reporting period for all items shown in the Financial Statements including notes shall also have to be given as per new format. Thus for the financial statements prepared for the year 2011-12 (1st April 2011 to 31st March 2012), comparative amounts need to be given for the financial year 2010-11.
Revised Schedule VI however, do not apply to any insurance or banking company, or any company engaged in the generation or supply of electricity
Revised Schedule VI has been developed in the framework of existing non-converged Indian Accounting Standards and has no connection with the converged Indian Accounting Standards.
MAIN PRINCIPLES OF REVISED SCHEDULE VI
The requirements of the Companies Act, 1956 and the Accounting Standards will prevail over the Revised Schedule VI.
Revised Schedule VI clarifies that the requirements mentioned therein for disclosure on the face of the financial statements or in the notes are minimum requirements
Revised Schedule VI has eliminated the concept of ‘schedule’ and such information is now to be furnished in the notes to accounts.
All items of assets and liabilities are to be bifurcated between current and non-current.
Rounding off requirements has been changed
I. SOURCES OF FUNDS (1) Shareholders’ Funds
(a) Capital (b) Reserves & Surplus
(2) Loan Funds (a) Secured Loans (b)Unsecured Loans (3) Deferred Tax Liabilities(Net) (4) Current Liabilities &
Provisions (Reclassified) (a) Liabilities
(b) Provisions
Total
I. EQUITY & LIABILITIES (1) Shareholders’ Funds
(a) Share Capital (b) Reserves & Surplus
(c) Money recd against share warrants
(2) Share application moneypending allotment
(3) Non-current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities
(Net) (c) Other long term
liabilities (d) Long-term provisions (4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions Total
Revised Schedule
VI
Old Schedule
VI
II. APPLICATION OF FUNDS (1) Fixed Assets (a) Gross Block (b) Less: depreciation (c) Net Block (d) Capital Work-in-
Progress (2) Investments (Long term
and Current) (3) Deferred Tax Assets (Net) (4) Current Assets, Loans and
advances (a) Inventories (b) Sundry debtors (c) Cash and Bank balances (d) Loans & Advances (e) Other current Assets (5) (a) Miscellaneous
Expenditure (b) Profit and Loss Account
Total
II. ASSETS (1) (a) Fixed Assets (i) Tangible Assets (ii) Intangible Assets (iii) Capital Work-in-
Progress (iv) Intangible Assets
under develop (b) Non-current Investments
(c)Deferred tax assets (net) (d) Long-term loans and
advances (e) Other non-current
assets (2) Current Assets (a) Current Investments (b) Inventories (c) Trade Receivables (d) Cash and Cash
equivalents (e) Short-term loans and
advances (f) Other current assets Total
Revised Schedule VI Old Schedule VI
FEW MAJOR CHANGES IN BALANCE SHEET
Only the vertical format for presentation of financial statements
Shareholder holding more than 5 percent shares need to be disclosed
Aggregate number and class of shares allotted for consideration other than cash need to be disclosed only for a period of five years
Debit balance of profit& loss account will be disclosed under the head “Reserves and surplus.
Sundry debtors” has been replaced with the term “trade receivables. Amount due on account of other contractual obligations can no longer be included in the trade receivables
Disclosure of all defaults in repayment of loans and interest to be specified in each case. Earlier, no such disclosure was required .
Tangible assets under lease are required to be separately specified
FEW MAJOR CHANGES IN PROFIT & LOSS A/C
Name has been changed to “Statement of Profit and Loss” as against ‘Profit and Loss Account’
Appropriation line items not to be presented on the face of Statement of Profit and Loss
One percent of the revenue from operations or ` 100,000 needs to be disclosed separately
Dividends from Subsidiary should be recognized as income only when the right to receive dividends is established as on the Balance Sheet date.
Revenue from operations need to be disclosed separately as revenue from (a) sale of products, (b) sale of services and (c) other operating revenues
DISCLOSURE REQUIREMENTS
Revised Schedule VI introduces a number of other additional disclosures. Ex: Terms of repayment of long-term loans need to be
disclosed. Stock-in-trade held for trading purposes, separately
from other finished goods Aggregate provision for diminution in value of
investments separately for current and long-term Rights, preferences and restrictions attaching to
each class of shares, including restrictions on the distribution of dividends and the repayment of capital investments
Revised Schedule VI has removed a number of disclosure requirements. Ex: Information relating to licensed capacity, installed
capacity and actual production Information on investments purchased and sold
during the year Disclosures relating to managerial remuneration
and computation of net profits for calculation of commission
Investments, sundry debtors and loans & advances pertaining to companies under the same management
ABOUT DNS ADVISORS
DNS Advisors is a specialized corporate advisory firm promoted by young and dynamic professionals having rich experience in the field of corporate, financial and management consultancy.
Our team consists of experts of the corporate reporting domain and have been exposed with auditing and corporate reporting for MNCs and large companies. we are committed to provide highest standards of professionalism by timely delivery of highest quality of services to our clients.
OUR OFFERING
We offer our services to prepare company’s financial statement as per the requirements of the revised schedule VI, which will include followings:A. Understanding the existing accounting system.B. Diagnostic study of the differences with existing
systemC. Discussion of differences with the Corporate
Reporting division of companyD. Preparation of financial statements as per the revised
Schedule VI E. Interface with ERP team for making desired changes
in the accounting & reporting system of organization– explaining & supporting them to get the desired output.
OTHER SERVICE LINES
Beside “Corporate Reporting ” and other traditional professional
services, we at DNS Advisors specializes in following domains:
XBRL Conversion Business Valuation Project Funding International Taxation FEMA Compliances
CONTACT US
DNS Advisors W 123, Greater Kailash Part IINew Delhi – 110048Tel: 011 40535910
Contact Persons :
Naveen Goyal Deepak GuptaM +91 99110 95297 M +91
9811300590E [email protected] E
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