RevisedSchedule VItotheCompaniesAct
Applicablew.e.f.FinancialYear:20112012
1st &2nd Floor,H.K.House,AshramRoad,Ahmedabad 380009
InsightintoScheduleVI Thereisaneedtochangealmostfivedecades oldexistingScheduleVI(hereinafter
referredasoldScheduleVI)tokeepthepacewiththechangestakingplaceintheinternationalarena.
Th fi i l t b d f th ti i ft 01 04 Thefinancialstobepreparedfortheaccountingyearcommencingonorafter01042011.
Revised Schedule VI is applicable to all the companiesRevisedScheduleVIisapplicabletoallthecompanies.
RevisedScheduleVIissilentforitsapplicabilitytoconsolidatedfinancialstatements,asperAS 21whichrequiresconsolidatedfinancialstatementtobepreparedinthep q p pformatasadoptedbyitsparentsstandalone,revisedscheduleVIisalsoapplicabletotheconsolidatedfinancialstatements.
Th i fi f 2010 11 h ll l b d i i d f Thecomparativefigures of201011shallalsobepresentedinrevisedformat.
UnlikeoldScheduleVIwheretheoptionofhorizontalorverticalformatwasavailable,revised Schedule VI presentation of Balance sheet and profit and loss account shallrevisedScheduleVIpresentationofBalancesheetandprofitandlossaccountshallonlybedoneinverticalformat.
MajorpointsinRevisedSchedule VI NewprescribedformatforStatementofProfitandLossisbasedonthenatureofp
accounts. ThisisaimedatbringingmorestandardisationandcomparabilitytothepresentationoftheP&L.Aspercurrentpractice,inabsenceofaprescribedformat,variousmodesofpresentationincludingfunctionalandhybridclassificationswereaccepted.
Appropriationsofprofitshouldformpartofnotestoaccountsandnotpartof Statementofprofitandloss.
InsteadofSchedulestothefinancialstatementallthedetailsshall begiveninthenotestoaccounts.
Tradereceivablesoutstandingfor6monthsormorefromtheduedateinsteadsalesinvoicedate.
Quantitativedisclosuresrelatingtoturnover,rawmaterials,purchases,installedcapacity,actualproduction,detailsofmanagerialremunerationsaretobedispensedwith.
GeneralInstructions1) DisclosurerequirementsunderrevisedScheduleVIareinadditiontoandnotinsubstitutionofthe
disclosurerequirementsspecifiedintheAccountingstandardsandCompaniesAct.(EG) Thedisclosurerequirementsareminimumandanylineitems,sublineitemsandsubtotalsshallbepresentedasanadditionorsubstitutiononthefaceoftheFinancialstatementwhensuchisrelevantfordisclosingfinancialpositionorperformanceortocatertoindustry/sectorspecific:
As per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currencyAs per Clause 32 of Listing Agreement disclosure on Derivatives & Un hedged foreign currencyexposure to be made separately.
2) NopossibilityofconflictbetweenAccountingstandardsandScheduleVIasonmodificationofaccountingstandardsprescribedundertheCompaniesAct,ScheduleVIwouldstandmodifiedaccordingly.
3) All disclosures required by Companies Act to be made in notes to accounts3) AlldisclosuresrequiredbyCompaniesActtobemadeinnotestoaccounts.
EG:DisclosureunderCompaniesAct: DonationtoPoliticalpartiesshouldbeshownseparatelythoughitisnotrequiredasperRevisedScheduleVIasthesameisrequiredunderSection293AoftheCompaniesAct.
4) Notestoaccountsshallcontaininformationinadditiontotheinformationcontainedinthefinancialstatement,suchas(i) narrative notes;(i)narrativenotes;(ii)disaggregationofitemsshowninfinancials;(Eg :longterm&otherinvestments)(iii)includeitemswhichdonotqualifyforrecognitioninfinancials(Eg:Managerialremuneration)
GeneralInstructions(contd.)5) FinancialStatementsshouldnotprovideexcessivedetailsandatthesametimeitshould) p
nothideimportantdetails.
Itmeansthatcompanyshouldnotdiscloseimportantinformationbyincludingamonglargeamountofinsignificantdetails.
6) Dependingontheturnover,figuresinfinancialscan beroundedoff:(i)lessthanRs100crore Tonearesthundreds,thousands,lakhs ormillions( )(ii)Rs100crore ormore Tonearestlakhs,millionsorcrores ordecimalsOnceunitusedshallbeuniformlyusedinthefinancialstatement.
7) For the Revised Schedule the terms used herein shall be as per the applicable Accounting7) FortheRevisedSchedule,thetermsusedhereinshallbeaspertheapplicableAccountingStandards.(Example RelatedParties)
8) In the preparing the balance sheet the word Current Year is replaced as Current8) Inthepreparingthebalancesheettheword CurrentYear isreplacedas CurrentreportingperiodandPreviousYearasPreviousreportingperiod.
9) Cross referencing each line item with notes and vice versa required9) Crossreferencingeachlineitemwithnotesandviceversarequired.
Sr Particulars RevisedScheduleVI OldScheduleVI
ComparisonbetweenOldandRevisedScheduleVI
1 Disclosure Onlyverticalformat.
formatBalancesheetandProfitandlossweredisclosedeitherinHorizontalformatorin Vertical format
2 Disclosure InbalancesheetEquityandformat LiabilitiesandAssets
aredisclosed.
inVerticalformat.
InbalancesheetSourcesofFundsandApplicationofFundsaredisclosed
3 Disclosure Onliabilitysidethereare4headsheads (i)Shareholdersfunds
(ii)Shareapplicationmoney
Therewereonly2headsonliabilityside(i)Shareholdersfundand(ii)Loanfunds
There were 4 heads on asset side :( ) pp ypendingallotment
(iii)Noncurrentliabilitiesand(iv)Currentliabilities
Therewere4headsonassetside:
(i)FixedAssets
(ii)Investments
(iii)Current assets, loans and advancesOnassetsidethereare2heads:(i)Noncurrentassets(ii)Currentassetsd f th h d i bif ti
(iii)Currentassets,loansandadvances
(iv)Miscellaneousexpenditure
andfurtherheadwisebifurcation
Sr Particulars RevisedScheduleVI OldScheduleVI
ComparisonbetweenOldandRevisedScheduleVI
4 FixedAssets FixedassetsareshownundernoncurrentassetsandarebifurcatedintoTangibleandIntangibleassets.
Therewasnobifurcationrequiredfortangibleandintangibleassets.Differentheadsaredisclosed:
(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)
5 Borrowings Longtermborrowingstobeshownundernoncurrentliabilitiesand
trademarkanddesign(x)livestock(xi)vehicles,etc.
Shortterm&longtermborrowingsaregroupedtogetherundertheheadLoanfund
shorttermborrowingstobeshownundercurrentliabilitieswithseparatedisclosureforsecured/unsecuredloansinbothcategories.
withsubheadSecured/Unsecured.
6 Investments Noseparateheadforinvestment,itisbifurcatedintoNonCurrentandCurrentassets.
7 Loans & No separate head it is bifurcated
AllinvestmentstobedisclosedundertheheadInvestment.
L & Ad di l d l ith7 Loans& Noseparatehead,itisbifurcatedAdvances intoNoncurrent&Currentassets.
Loans&AdvancesaredisclosedalongwithCurrentassets.
PARTI FormofBALANCESHEETNameoftheCompany.BalanceSheetasat
Particulars Note Figuresas attheendNo.
g
CurrentReportingPeriod
PreviousReportingPeriod
I EQUITYANDLIABILITIES
h h ld f d1 Shareholdersfunds
A Sharecapital
B Reservesandsurplus
C Money received against share WarrantsC MoneyreceivedagainstshareWarrants
2 Shareapplicationmoneypendingallotment
3 Noncurrentliabilities
A Longterm borrowingsA Long termborrowings
B Deferredtaxliabilities(Net)
C OtherLongtermliabilities
D Longtermprovisions
4 Currentliabilities
A Shorttermborrowings
B Tradepayables
C Othercurrentliabilities
D Shorttermprovisions
TOTAL
Contd[PARTI FormofBALANCESHEET]Particulars NoteNo. Figuresas attheend
CurrentReporting PreviousReportingPeriod Period
II ASSETS
1 Noncurrentassets
A Fixed assetsA Fixedassets
I Tangibleassets
II Intangibleassets
III Capitalworkinprogress
IV Intangibleassetsunderdevelopment
B Noncurrentinvestments
C Deferredtaxassets(net)
D L t l d dD Longtermloansandadvances
E Othernoncurrentassets
2 Currentassets
A Currentinvestments
B Inventories
C Tradereceivables
D Cashandcashequivalents
E Shorttermloansandadvances
F Othercurrentassets
TOTAL
PARTII FormofSTATEMENTOFPROFITANDLOSSNameoftheCompany.Profitandlossstatementfortheyearended
Particulars NoteNo. Figures fortheCurrentReportingPeriod
PreviousReportingPeriod
I Revenuefromoperations
II Otherincome
III TotalRevenue(I+II)
IV Expenses:
Costofmaterialsconsumed
PurchasesofStockinTrade
h f f h d d k dChangesininventoriesoffinishedgoods,workinprogressandStockinTradeEmployeebenefitsexpense
Financecosts
Depreciationandamortizationexpense
Otherexpenses
Totalexpensesp
V Profitbeforeexceptionalandextraordinaryitemsandtax(IIIIV)
VI Exceptionalitems
VII Profitbeforeextraordinaryitemsandtax(V VI)
Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]
Particulars NoteNo. Figures forthe
Current PreviousCurrentReportingPeriod
PreviousReportingPeriod
VIII ExtraordinaryItems
IX Profitbeforetax(VII VIII)
X Taxexpense:
(1) Current tax (including MAT on current tax)(1) Currenttax(including MAToncurrenttax)
(2) Deferredtax
XI Profit(Loss)fortheperiodfromcontinuingoperations(VIIVIII)
XII Profit/(loss)fromdiscontinuingoperations Thisshallbedisclosedevenifthere isnotsuchbalanceasonBalancesheetdate.
XIII Taxexpenseofdiscontinuingoperations
XIV P fi /(l ) f Di i i i ( f ) (XII XIII)XIV Profit/(loss)fromDiscontinuingoperations(aftertax)(XIIXIII)
XV Profit(Loss)fortheperiod(XI+XIV)
XVI Earningsperequityshare:
(1) Basic
(2) Diluted
Contd[PARTII FormofSTATEMENTOFPROFITANDLOSS]
Companymaychoosetopresentanadditionalsubtotalsofcurrentassetsandp y y pcurrentliabilitiesonfaceofBalancesheet.
SimilarlycompanymaychoosetopresentanadditionallineitemonfaceofStatementofProfitandlossaccountlikeEBITDA.
Excess/ShortprovisionofIncometaxofearlieryearsbeshownseparately.
Definitions
1 CurrentAssetmeansanassetwhichsatisfiesANYofthefollowingcriteria:
(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 noncurrentAllotherassetsshallbeclassifiedasnon current.
2 Anoperatingcycle is:(Examples1to5) Timebetweentheacquisitionofassetsforprocessingandtheirrealizationincashor
h lcashequivalents. wherethenormaloperatingcyclecannotbeidentified,itisassumedtohave of12
months.
3 CurrentLiabilitymeansaliabilitywhichsatisfiesANYofthefollowingcriteria:
(Contd.)Definitions
y y g
(a) expectedtobesettledinthecompanysnormaloperatingcycle;
OR
(b) heldprimarilyforthepurposeofbeingtraded;( ) p y p p g ;
OR
(c) duetobesettledwithin12monthsafterthereportingdate;
OR
(d) thecompanydoesnothaveanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingdate.
All other liabilities shall be classified as non current All other liabilities shall be classified as noncurrent.
4 Trade receivable means amount due on account of goods sold or services rendered inthe normal course of business.
5 Trade payable means amount due on account of goods purchased or services receivedin the normal course of business.
6 Areservespecifically representedbyearmarked investments shall be termedasa fund6 Areservespecifically representedbyearmarked investments shall be termedasa fund.
7 Financial statementmeans balance sheet and statement of profit and loss.
NorAccountingstandardsorrevisedScheduleVIareprovidingguidanceinrespectof
SpecialPurposeEntity
g p g g pspecialpurposeentity[SPE].
Hence,oneshouldseekguidancefromInd AS 27.
Acompanyshalldisclosethefollowinginthenotestoaccounts:
GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p y g
A ShareCapital
foreachclassofsharecapital(differentclassesofpreferencesharestobetreatedseparately):
(a) thenumberandamountofsharesauthorized;
(b) thenumberofsharesissued,subscribedandfullypaid,andsubscribedbutnotfullypaid;
(c) parvaluepershare;
(d) areconciliationofthenumberofsharesoutstandingatthebeginningandattheendofthereportingperiod;
( ) f f(e) therights,preferencesandrestrictionsattachingtoeachclassofsharesincludingrestrictionsonthedistributionofdividendsandtherepaymentofcapital;
(f) sharesinrespectofeachclassinthecompanyheldbyitsholdingcompanyoritsultimate holding company including shares held by or by subsidiaries or associates ofultimateholdingcompanyincludingsharesheldbyorbysubsidiariesorassociatesoftheholdingcompanyortheultimateholdingcompanyinaggregate;
(g) shares(equity+preference)inthecompanyheldbyeachshareholderholdingmorethan5%sharesspecifyingthenumberofsharesasonthebalancesheetdate;(alongwiththecomparativeofpreviousyear)
(h) sharesreservedforissueunderoptionsandcontracts/commitmentsforthesaleofshares/disinvestment,includingthetermsandamounts;
(i) Fortheperiodoffiveyearsimmediatelyprecedingthedate asatwhichtheBalance
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
( ) p y y p gSheetisprepared:
Aggregatenumberandclassofsharesallottedasfullypaidup:
(a)pursuanttocontract(s)withoutpaymentbeingreceivedincash.
(b)bywayofbonusshares
(c)sharesboughtback.
Sourcesfromwhichbonussharesareissued(Eg:Sharepremiumreserve)
NoNeedtogiveyearwisebreakupofsharesallotted.
(j) Termsofanysecuritiesconvertibleintoequity/preferencesharesissuedalongwiththeearliestdateofconversionindescendingorderstartingfromthefarthestsuchdate.
(k) Callsunpaid(showingaggregatevalueofcallsunpaidbydirectorsandofficers)
(l) Forfeitedshares(amountoriginallypaidup)
NotrequiredinNewSchedule VI: Disclosurerequirementforcalledupsharesisremoved. DetailsofutilizationofSharePremiumAccount. BonusSharesandSharedissuedforconsiderationotherthancash(disclosure
notrequiredbeyond5years)
B ReservesandSurplus
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
ReservesandSurplusshallbeclassifiedas:(a) CapitalReserves;(b) CapitalRedemptionReserve;(c) Securities Premium Reserve;(c) SecuritiesPremiumReserve;(d) DebentureRedemptionReserve;(e) RevaluationReserve;(f) ShareOptionsOutstandingAccount;(g) OtherReserves (specifythenatureandpurposeofeachreserveandtheamountin
respectthereof)(h) Surplusi.e.balanceinStatementofProfit&Lossdisclosingallocationsandappropriations
such as dividend bonus shares and transfer to/from reserves etc (Format Example)suchasdividend,bonussharesandtransferto/fromreservesetc.(Format Example)(Additionsanddeductionssincelastbalancesheettobeshownundereachofthespecifiedheads)
Notes:Notes: (i) NatureandpurposeofeachreservetobestatedONLYforthoseaggregatedunder Other Reserves
( ) p g
under OtherReserves(ii) DebitbalanceofProfitandLossaccounttobeshownasnegative.(iii) ReserveandSurplusbalancecanbenegative.
Not required in New Schedule VI :NotrequiredinNewSchedule VI: DetailsofutilizationofSharePremiumAccountinthemannerprovidedinSec78
ofCompaniesAct.
C LongTermBorrowings
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
g g
(i) Longtermborrowingsshallbeclassifiedas:
(a) Bonds/debentures
(b) Termloans( )
frombanks.
fromotherparties.
(c) Deferredpaymentliabilities.(eg:DeferredSalestaxliabilityandDeferredpaymentfor( ) p y ( g y p ypurchaseofAssets)
(d) Deposits (itcanbeFixeddeposits,Securitydeposits,Intercompany,etc)
(e) Loansandadvancesfromrelatedparties(Directors,companies,firmsetc).
(f) Longtermmaturitiesoffinanceleaseobligations
(g) Otherloansandadvances(specifynature).
(ii) Borrowingsshallfurtherbesubclassifiedas
(i ) secured and
(ii) unsecured.
Natureofsecurityshallbespecifiedseparatelyineachcase,(whichmeansifonesecurityisgivenformultipleloansthensamemaybeclubbedtogetherfordisclosurewithadequatecrossreferencing)
(iii) Where loans have been guaranteed by directors or others the aggregate amount of such loans under
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuchloansundereachheadshallbedisclosed.(othersmeanspersonorentityotherthandirector)
(iv) Bonds/debentures(alongwith
(i) therateofinterestand
(ii) particularsofredemptionorconversion,asthecasemaybe)
shallbestatedindescendingorderofmaturityorconversion,startingfromfarthestredemptionorconversiondate,asthecasemaybe.Wherebonds/debenturesareredeemablebyinstallments,thedateofmaturityforthispurposemustbereckonedasthedateonwhichthefirstinstallmentbecomesy p pdue.
(v) Particularsofanyredeemedbonds/debentureswhichthecompanyhaspowertoreissueshallbedisclosed.
(vi) Termsofrepaymentoftermloansandotherloansshallbestated.(i)Tenorofmaturity(ii)numberofinstallments(iii)Amountofinstallmentdue(iv)Rateofinterest(v)othersignificantitems.
(vii) Periodandamountofcontinuingdefaultasonthebalancesheetdateinrepaymentofloansandinterestshallbespecifiedseparatelyineachcase. (I.e.defaultinanyotherdebtcovenantisnotrequiredtobementioned)
(viii) Manytimesduetodefaultofsometermsandconditionsofloanagreement,theloanbecomespayableondemand.Insuchsituationsifthebankshasnotdemandedtherepaymentofloanuptodateofapprovalofaccountsbydirectorsthensuchloanshallbetreatedasnoncurrentonly.
D OtherLongTermLiabilities
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
g
OtherLongtermLiabilitiesshallbeclassifiedas:
Tradepayables Others
TradePayablewillnotinclude:
1) duespayableinrespecttostatutoryobligations,
2) ContributiontoPF,
3) PurchaseofFixedAssets,
4) Interestaccruedontradepayable,etc.
SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbedisclosed.
AcceptancesshouldbedisclosedaspartofTradePayablesp p y
NotrequiredinNewScheduleVI:DisclosureofSundryCreditorsearlierincludesduesinrespectof:a) goods purchased and / or services receiveda) goodspurchasedand/orservicesreceivedb) Contractualobligations
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
E Longtermprovisions
Theamountsshallbeclassifiedas:
Provisionforemployeebenefits.p y Others(specifynature).
F Shorttermborrowings
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(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.Natureofsecurityshallbespecifiedseparatelyineachcase.
(iii) Whereloanshavebeenguaranteedbydirectorsorothers,theaggregateamountofsuchloansundereachheadshallbedisclosed.
( ) d d f d f l h b l h d f l d(iv) Periodandamountofdefaultasonthebalancesheetdateinrepaymentofloansandinterestshallbespecifiedseparatelyineachcase.
GTradePayable:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
y
a) Tradepayable
b) Others
TradePayablewillnotinclude:
1) duespayableinrespecttostatutoryobligations,
2) ContributiontoPF,) ,
3) PurchaseofFixedAssets,
4) Interestaccruedontradepayable,etc.
SuchpayablescanbeclassifiedonOthersandnatureundereachsuchitemshallbedisclosed.
OldScheduleVIrequiredtodisclosecertaininformationonMicroSmallMediumEnterprisesDevelopment(MSMED).ThereisnosuchrequirementinRevisedScheduleVI.However,MSMEDAct,2006requiresthesedisclosuretobemadeinthefinalaccountsoftheCCompany.
Hence,requirementofMSMEDActshouldbecompliedinRevisedScheduleVIaswell.
H Othercurrentliabilities
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
Theamountsshallbeclassifiedas:
(a) Currentmaturitiesoflongtermdebt;
(b)Currentmaturitiesoffinanceleaseobligations;
(c) Interestaccruedbutnotdueonborrowings;
(d) Interestaccruedanddueonborrowings;
(e) Incomereceivedinadvance;
(f) Unpaiddividends
(g) Applicationmoneyreceivedforallotmentofsecuritiesanddueforrefundandinterestaccruedthereon.Thisincludesadvancestowardsallotmentofsharecapital.
Particularsoftheno.ofsharestobeissued,amt.ofpremium,periodbeforewhichsharesshallbeallottedshallbedisclosed.
ItshallalsodisclosewhethertheCo.hassufficientauthorizedcapitaltocoverthesharecapital amount resulting from allotment of shares out of such application moneycapitalamountresultingfromallotmentofsharesoutofsuchapplicationmoney.Further,theperiodforwhichtheshareapplicationmoneyispendingbeyondtheperiodforallotmentasmentionedintheofferletteralongwiththereasonshallbedisclosed.
Shareapplicationmoneynotexceedingtheissuedcapitalandnotrefundableshallbepp y g pshownundertheheadEquityandshareapplicationmoneytotheextentrefundablei.e.,theamountinexcessofsubscriptionorincasetherequirementsofminimumsubscriptionarenotmet,shallbeseparatelyshownunderOthercurrentliabilities
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(h) Unpaidmatureddeposits andinterestaccruedthereon
(i) Unpaidmatureddebentures andinterestaccruedthereon
(j) Otherpayables(specifynature)
NotrequiredinNewScheduleVI:
Interestaccruedandduewithloanwasearlierrequiredtobeshownwithrespectiveloannowseparatelyclassified
DisclosureofloanfromDirectorsandShareholders.
ThetitleheadofInvestorEducationandProtectionFundisnownotrequired.However,thesubheadsremainunchangedintherevisedformat(i.e.unpaiddividend,unpaidmatureddeposits,etc)
PROVISIONasaheadisnottobedisclosed.
I Shorttermprovisions
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p
Theamountsshallbeclassifiedas:
(a) Provisionforemployeebenefits.
(b) Others(specifynature).( ) ( p y )
FewExamplesofOthersare:
1) Provisionfordividend,) ,
2) ProvisionforTaxation,
3) ProvisionforWarranties,etc.
J Tangibleassetsshallbeclassifiedas:(a) Land.
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(b) Buildings.(c) PlantandEquipment.(d) FurnitureandFixtures.(e) Vehicles.(f) Officeequipment.(g) Others(specifynature).
(ii) Assetsunderleaseshallbeseparatelyspecifiedundereachclassofasset.
Lease means; Assets given on operating lease in case of books of lessor and assets held underLeasemeans;Assetsgivenonoperatingleaseincaseofbooksoflessor andassetsheldunderfinanceleaseincaseofbooksoflessee.
(iii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthebeginningandendofthereportingperiodshowingadditions,disposals,acquisitionsthroughbusinesscombinationsd h dj ( ill i l d ERF AS 11 b i i li i ) d h l dandotheradjustments(willincludeERFasperAS11,borrowingcostcapitalisation) andtherelated
depreciationandimpairmentlosses/reversalsshallbedisclosedseparately.
(iv) Wheresumshavebeenwrittenoffonareductionofcapitalorrevaluationofassetsorwheresumshavebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuchwriteoff,oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayofanotealsoshowtheamountofthereductionorincreaseasapplicabletogetherwiththedatethereofforthefirstfiveyearssubsequenttothedateofsuchreductionorincrease.
(v) Capital Workinprogress should not include capital advances such advances should be classified(v) CapitalWork in progressshouldnotincludecapitaladvances,suchadvancesshouldbeclassifiedunderShorttermadvancesunderCurrentAdvances.
NotrequiredinNewScheduleVI: Livestock
K Intangibleassets
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) Classificationshallbegivenas:(a) Goodwill.
(b) Brands/trademarks.
( ) C f(c) Computersoftware.
(d) Mastheadsandpublishingtitles.
(e) Miningrights.
(f) Copyrights and patents and other intellectual property rights services and operating rights(f) Copyrights,andpatentsandotherintellectualpropertyrights,servicesandoperatingrights.
(g) Recipes,formulae,models,designsandprototypes.
(h) Licensesandfranchise.
(i) Others(specifynature).
(ii) Areconciliationofthegrossandnetcarryingamountsofeachclassofassetsatthebeginningandendofthereportingperiodshowingadditions,disposals,acquisitionsthroughbusinesscombinationsandotheradjustmentsandtherelatedamortizationandimpairment
/losses/reversalsshallbedisclosedseparately.
(iii) Wheresumshavebeenwrittenoffonareductionofcapital orrevaluationofassetsorwheresumshavebeenaddedonrevaluationofassets,everybalancesheetsubsequenttodateofsuch
it ff dditi h ll h th d d i d fi li bl d h ll b fwriteoff,oradditionshallshowthereducedorincreasedfiguresasapplicableandshallbywayofanotealsoshowtheamountofthereductionorincreaseasapplicabletogetherwiththedatethereofforthefirstfiveyearssubsequenttothedateofsuchreductionorincrease.
L Noncurrentinvestments shallbeclassifiedas:
(i) tradeinvestments(*) andotherinvestments andfurtherclassifiedas:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(a) Investmentproperty;(b) InvestmentsinEquityInstruments;(c) Investmentsinpreferenceshares(d) Investments in Government or trust securities;(d) InvestmentsinGovernmentortrustsecurities;(e) Investmentsindebenturesorbonds;(f) InvestmentsinMutualFunds;(g) Investmentsinpartnershipfirms(h) Other non current investments (specify nature)(h) Othernoncurrentinvestments(specifynature)(*)Tradeinvestmentmeansaninvestmentmadeinsharesordebenturesofothercompany
withtheintensiontopromotethetradeandbusinessofthatcompany.
Undereachclassification,detailsshallbegivenofnames ofthebodiescorporate(indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)jointventures,or(iv)controlledspecialpurposeentities)inwhominvestmentshavebeenmadeandthenatureandextentoftheinvestment somade(showingseparatelythepartlypaidinvestments).Inregardtoinvestmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheirp p p , (partners,totalcapitalandthesharesofeachpartner)shallbegiven.
AllProvisioninrespectofdisclosuresrequiredunderAS 13hastobecompliedwith.
AS 13AccountingforInvestmentshasdefinedCurrentinvestments,asinvestmentswhichared l l bl d d d b h ld f h f h d h h hreadilyrealisable andintendedtobeheldformorethanoneyearfromthedateonwhichsuch
investmentismade.
Thiscriterionisdifferentascomparedtoconceptofcurrentassetwheretheperiodof
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p p prealizationis12monthsfromthereportingdate.
PresentationofallinvestmentsinBalancesheetshouldbebasedoncurrent/non currentclassificationasperRevisedScheduleVIandnotasperAS 13,sinceAS13doesnotlayd idownpresentationnorms.
(ii) Investmentscarriedatotherthanatcostshouldbeseparatelystatedspecifyingthebasisforvaluation
(iii) The aggregate amount of provision for diminution in value made in respect of all non(iii) Theaggregateamountofprovisionfordiminutioninvaluemadeinrespectofallnoncurrentinvestmentsshouldbeseparatelydisclosed
(iv) InvestmentsinLimitedLiabilitiesPartnership(LLP)shouldbedisclosedseparatelyunderthetitleOtherInvestments.SuchinvestmentsshouldnotbeclubbedwithPartnershipfirms.p
(v) Thefollowingshallalsobedisclosed:(a)Aggregateamountofquotedinvestmentsandmarketvaluethereof;(b)Aggregateamountofunquotedinvestments;(c)Aggregateprovisionfordiminutioninvalueofinvestments
NotrequiredinNewScheduleVI: Investment in same management companyInvestmentinsamemanagementcompany Investmentspurchasedandsoldduringtheyeararenotrequiredtobeshown
inthisNote.
M Longtermloansandadvances
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
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) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevantheadsseparately.
(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonsoramountsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershouldbeseparately stated Give separate break up under each such loans/advancesseparatelystated.Giveseparatebreak upundereachsuchloans/advances
(v) LoansandAdvancestorelatedpartiesshouldbegiveninaccordancewithdisclosurerequirementofAS18.
Disclosurepatterncouldbeasfollows:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
p
Longtermloansandadvancesshallbedisclosedas:
(1) CapitalAdvances
(a) Secured,consideredgood( ) , g
(b) Unsecured,consideredgood
(2) Prepaidexpenses unsecured,consideredgood
(3) Advancetax(NetofprovisionofRsasat31st March) unsecured,( ) ( p ) ,consideredgood.
N Othernoncurrentassets
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) LongTermTradeReceivables(includingtradereceivablesondeferredcreditterms);
(ii) Others(specifynature)
(iii) LongtermTradeReceivables,shallbesubclassifiedas:( ) g ,
(i) (a) Secured,consideredgood;
(b) Unsecuredconsideredgood;
(c) Doubtful( )
(ii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheadsseparately.
(iii) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonordebtsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershouldbeseparatelystated.
Th ti d ti f h ld b l ifi d Oth lik iTheunamortizedportionofexpensesshouldbeclassifiedOtherslikeissueexpenses.
OCurrentInvestmentsshallbeclassifiedas:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) (a) InvestmentsinEquityInstruments;
(b) InvestmentinPreferenceShares
(c) Investmentsingovernmentortrustsecurities;
(d) Investmentsindebenturesorbonds;
(e) InvestmentsinMutualFunds;
(f) Investmentsinpartnershipfirms
(g) Other investments (specify nature)(g) Otherinvestments(specifynature).
Undereachclassification,detailsshallbegivenofnamesofthebodiescorporate(indicatingseparatelywhethersuchbodiesare(i)subsidiaries,(ii)associates,(iii)jointventures,or(iv)controlledspecialpurposeentities)inwhominvestmentshavebeenmadeandthenatureandextentoftheinvestmentsomadeineachsuchbodycorporate(showingseparatelyinvestmentswhicharepartlypaid).Inregardtoinvestmentsinthecapitalofpartnershipfirms,thenamesofthefirms(withthenamesofalltheirpartners,total capital and the shares of each partner) shall be giventotalcapitalandthesharesofeachpartner)shallbegiven.
(ii) Thefollowingshallalsobedisclosed:(a) Thebasisofvaluationofindividualinvestments(Nottobedisclosedfornoncurrent
investments))
(b) Aggregateamountofquotedinvestmentsandmarketvaluethereof;
(c) Aggregateamountofunquotedinvestments;
(d) Aggregateprovisionmadefordiminutioninvalueofinvestments.
P Inventories shall be classified as:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
P Inventories shallbeclassifiedas:
(i) (a) Rawmaterials;
(b) Workinprogress;
(c) Finished goods;(c) Finishedgoods;
(d) Stockintrade(inrespectofgoodsacquiredfortrading);
(e) Storesandspares;
(f) Loose tools;(f) Loosetools;
(g) Others(specifynature).
(ii) Goodsintransitshallbedisclosedundertherelevantsubheadofinventories.
(iii) Mode of valuation shall be stated(iii) Modeofvaluationshallbestated.
AnyExcessmaterialwhichisnotlikelytoberealizedwithincompanysoperatingcycleisto be considered as Current Asset. (Example 9)tobeconsideredas CurrentAsset .(Example 9)
Q TradeReceivables
(i) Trade receivables outstanding for 6 months or more from the due date for payment need to
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpaymentneedtobeseparatelydisclosed
(ii) Tradereceivablesshallbesubclassifiedas:
(a) Secured, considered good;(a) Secured,consideredgood;
(b) Unsecuredconsideredgood;
(c) Doubtful.
(iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads(iii) Allowanceforbadanddoubtfuldebtsshallbedisclosedundertherelevantheadsseparately.
(iv) Debtsduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonordebtsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershouldbeseparatelystated.(Example 10)
NotrequiredinNewScheduleVI: Debtsduefromothercompaniesunderthesamemanagementaspersection370(1B). Themaximumamountduebydirectorsorotherofficersatanytimeduringtheyearshownby
wayofanote. DisclosureofSundryDebtorsearlierincludesduesinrespectof:
a) goodssoldand/orservicesprovidedb) AmountdueunderContractualobligations.
R Cashandcashequivalents shallbeclassifiedas:(Example 8)
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
q ( p )
(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) Depositswithorginalmaturityformorethan3monthsbutlessthan12months
(3) Marginmoneydeposit
(ii) Earmarkedbalanceswithbanks(forexample,forunpaiddividend)shallbeseparatelystated.
(iii) Balanceswithbankstotheextentheldasmarginmoneyorsecurityagainstthe
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
( ) g y y gborrowings,guarantees,othercommitmentsshallbedisclosedseparately.
(iv) Repatriationrestrictions,ifany,inrespectofcashandbankbalancesshallbeseparatelystated.
(v) Bankdepositswithmorethan12monthsmaturityshallbedisclosedseparately.
NotrequiredinNewScheduleVI:Bif i C Fi d d i i i d BifurcationtoCurrent,Fixeddepositetc.isnotrequirednow
ItisnotrequiredtobifurcatetobankstoScheduledandOtherbanks
SShorttermloansandadvances shallbeclassifiedas:
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(i) (a) Loansandadvancestorelatedparties(givingdetailsthereof);
(b) Others(specifynature).
(ii) Theaboveshallalsobesubclassifiedas:( )
(a) Secured,consideredgood;
(b) Unsecured,consideredgood;
(c) Doubtful.( )
(iii) Allowanceforbadanddoubtfulloansandadvancesshallbedisclosedundertherelevantheadsseparately.
(iv) Loansandadvancesduebydirectorsorotherofficersofthecompanyoranyofthemeitherseverallyorjointlywithanyotherpersonoramountsduebyfirmsorprivatecompaniesrespectivelyinwhichanydirectorisapartneroradirectororamembershallbeseparatelystated.
( ) T d i bl t t di f 12 th f th d d t f t(v) Tradereceivablesoutstandingfor12monthsormorefromtheduedateforpayment(againstearlierrequirementofinvoicedate)needtobeseparatelydisclosed
(vi) UnderOtherscurrentassetswhichdoesnotfitintootherassetswillbeclassifiedhere;eg. unamortised premium on forward contract, etc.eg.unamortisedpremiumonforwardcontract,etc.
T Othercurrentassets(specifynature).
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
( p y )
Thisisanallinclusiveheading,whichincorporatescurrentassetsthatdonotfitintoanyotherassetcategories.
Theheadcontainsitemssuchas:
1) Interestaccruedoninvestments
2) Unbilledrevenue
SuchbalancesshouldbeincludedhereinOtherCurrentAssets:
(i) Insuranceclaimsreceivable
(ii) SaleofFixedAssets
(iii) Contractuallyreimbursablebalances.
ItmustmenotedthattheseitemsshouldnotbeincludeinTradereceivablebalance
U Contingentliabilitiesandcommitments
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
(totheextentnotprovidedfor)
(i) (a) Claimsagainstthecompanynotacknowledgedasdebt;
(b) Guarantees;
(c) Othermoneyforwhichthecompanyiscontingentlyliable
(ii) Commitmentsshallbeclassifiedas:
(a) Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotid d fprovidedfor;
(b) Uncalledliabilityonsharesandotherinvestmentspartlypaid
(c) Othercommitments(specifynature).(Example 6)
will include revenue and capital commitments Therefore it will include those non willincluderevenueandcapitalcommitments.Therefore,itwillincludethosenoncancellablecontractualcommitmentsforpurchaseofRM&PM,purchaseofinvestments,salescontracts,servicecontractsi.e.thecancellationofwhichresultinpenalty.Itwillalsoincludecommitmentsinnatureofbuybackarrangements,
i f b idi i JV d i i l d icommitmentfromsubsidiaries,JVs,derivativerelatedcommitments.
WhencompaniesundertakestoperformitsownobligationandgivesGuaranteethenitisnotconsideredContingentLiability.BanksgenerallygiveGuaranteefor:
1) LC1) LC
2) Fordeferredpaymenttoforeignsuppliers,etc.
forthispurposeevenifcompanygivescounterguaranteetobankisnotcontingentliability.
(Contd.)GENERALINSTRUCTIONSFORPREPARATIONOFBALANCESHEET
V The amount of dividends proposed to be distributed to equity and preferenceshareholders for the period and the related amount per share shall be disclosedseparately. Arrears of fixed cumulative dividends on preference shares shall also bedi l d ldisclosed separately.
W Where in respect of an issue of securities made for a specific purpose, the whole or partof the amount has not been used for the specific purpose at the balance sheet dateof the amount has not been used for the specific purpose at the balance sheet date,there shall be indicated by way of note how such unutilized amounts have been used orinvested.
X If, in the opinion of the Board, any of the assets other than fixed assets and noncurrentinvestments do not have a value on realization in the ordinary course of business at leastequal to the amount at which they are stated, the fact that the Board is of that opinion,shall be stated.
1 AllprovisionsofProfit&LossaccountwillalsobeapplicabletoIncome&Expenditureaccountwhichisll d b C i t i b i f fit
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
generallypreparedbyCompaniesnotcarryingonbusinessforprofit.2 RevenuefromOperations(otherthanfinancecompany)shallbedisclosedinnotes:
(A) (a) saleofproducts(*)(b) saleofservice(c) Other operating revenue (shall include scrap sales) (**)(c) Otheroperatingrevenue(shallincludescrapsales)( )Less:(d) Exciseduty(Opinion)(*)(1)wherecompanycollectstaxonlyasanintermediary,revenueshouldbepresentedNetof
taxestaxes.(2)VATisnotrevenueanditspaymentshouldnotbebookedasanexpense
(**)whichincomewillfallunderthisheadingshouldbedecidedbasedonfactsofeachcaseanddetailedunderstandingoftheactivitiesofthecompany.
(B) RevenuefromOperationsincaseoffinancecompany :( ) p p y(a) interest(b) otherfinancialservices
Revenueundereachoftheaboveheadsshallbedisclosedseparatelybywayofnotestoaccountstotheextentapplicable.
3 Financialcostsshallbeclassifiedas:(a) interestexpense(b) Otherborrowingcosts;(includes(1)Commitmentcharges,(2)loanprocessingcharges,(3)loan
facilitationcharges,(4)discount/premiumonborrowings,(5)interestonshortfallonIncometax)(c) Applicablenetgain/lossonforeigncurrencytransactionsandtranslation.(Guide)
4 OtherIncome (**)shallbeclassifiedas:(a) InterestIncome(incaseofacompanyotherthanafinancecompany);
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
NotrequiredinNewScheduleVI:
(b) DividendIncome;(c) Net gain/ loss on sale of investments fixed assets and ERF gain
IncomefrominvestmentwerebifurcatedtoTradeinvestmentandotherinvestmentssuchbifurcationisnotrequiredinrevisedformat.
(c) Netgain/lossonsaleofinvestments,fixedassetsandERFgain(d) Othernonoperatingincome(netofexpensesdirectlyattributabletosuchincome).
5 AdditionalInformationbywayofnotes onadditionalinformationregardingaggregateexpenditureandincomeonthefollowingitems:
(i) (a) EmployeeBenefitsExpense[showingseparately(i) salariesandwages,(ii) contributiontoprovidentandotherfunds,(willalsoincludesuperannuation,gratuity)(iii) expense on Employee Stock Option Scheme (ESOP) & Employee Stock Purchase(iii) expenseonEmployeeStockOptionScheme(ESOP)&EmployeeStockPurchase
Plan(ESPP),(iv)staffwelfareexpenses].
(b) Depreciationandamortizationexpense;(c) Anyitemofincomeorexpenditurewhichexceeds1%oftherevenuefrom
operationsorRs.1,00,000,whicheverishigher;(d) InterestIncome;(e) Interest Expense;(e) InterestExpense;(f) DividendIncome;(g) Netgain/lossonsaleofinvestments;(h) Adjustmentstothecarryingamountofinvestments;
(i) Netgainorlossonforeigncurrencytransactionandtranslation(otherthanconsideredasfinance
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
cost);
(j) Paymentstotheauditoras(a) auditor,(b) fortaxationmatters,( ) ,(c) forcompanylawmatters,(d) formanagementservices,(e) forotherservices,(f) forreimbursementofexpenses;( ) p ;
(k) Detailsofitemsofexceptionalandextraordinarynature;(l) Priorperioditems;
(ii) (a) Inthecaseofmanufacturingcompanies,(1) Raw materials under broad heads(1) Rawmaterialsunderbroadheads.(2) goodspurchasedunderbroadheads.
BroadheadsmeanscategoriesforRMpurchased.10%oftotalvalueofsales/consumptionofRMisanacceptablethresholdtodetermineBroadheads.
(b) In the case of trading companies purchases in respect of goods traded in by the company under
Note: Broadheadsshallbedecidedtakingintoaccounttheconceptofmaterialityandpresentationoftrueandfairviewoffinancialstatements.
(b) Inthecaseoftradingcompanies,purchasesinrespectofgoodstradedinbythecompanyunderbroadheads.
(c) Inthecaseofcompaniesrenderingorsupplyingservices,grossincomederivedformservicesrenderedorsuppliedunderbroadheads.
(d) Inthecaseofacompany,whichfallsundermorethanoneofthecategoriesmentioned
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
in(a),(b) and(c)above,itshallbesufficientcompliancewiththerequirementshereinifpurchases,sales andconsumptionofrawmaterialandthegrossincomefromservicesrenderedisshownunderbroadheads.
(e) In the case of other companies gross income derived under broad heads(e) Inthecaseofothercompanies,grossincomederivedunderbroadheads.
(iii) Inthecaseofallconcernshavingworksinprogress,worksinprogressunderbroadheads.
(iv) (a) The aggregate if material of any amounts set aside or proposed to be set aside to(iv) (a) Theaggregate,ifmaterial,ofanyamountssetasideorproposedtobesetaside,toreserve,butnotincludingprovisionsmadetomeetanyspecificliability,contingencyorcommitmentknown toexistatthedateastowhichthebalancesheetismadeup.
(b) Theaggregate,ifmaterial,ofanyamountswithdrawnfromsuchreserves.( ) gg g , , y
(v) (a) Theaggregate,ifmaterial,oftheamountssetasidetoprovisionsmadeformeetingspecificliabilities,contingenciesorcommitments.
(b) Theaggregate,ifmaterial,oftheamountswithdrawnfromsuchprovisions,asnolongerrequired.
(vi) Expenditureincurredoneachofthefollowingitems,separatelyforeachitem:
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
(a) Consumptionofstoresandspareparts.(b) Powerandfuel.(c) Rent.(d) R i t b ildi(d) Repairstobuildings.(e) Repairstomachinery.(g) Insurance.(h) Rates and taxes (excluding taxes on income but including Wealth tax)(h) Ratesandtaxes,(excludingtaxesonincomebutincludingWealthtax)(i) Miscellaneousexpenses,
(vii) (a) Dividendsfromsubsidiarycompanies.
(b) P i i f l f b idi i(b) Provisionsforlossesofsubsidiarycompanies.
(viii) Theprofitandlossaccountshallalsocontainbywayofanote thefollowinginformation,namely:
a) ValueofimportscalculatedonC.I.F. basisbythecompanyduringthefinancialyearinrespectofI. Rawmaterials;II C t d tII. Componentsandspareparts;III. Capitalgoods;
b) Expenditureinforeigncurrency duringthefinancialyearonaccountofroyalty,
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
) p g y g y y yknowhow,professionalandconsultationfees,interest,andothermatters;
c) Totalvalueifallimportedrawmaterials,sparepartsandcomponentsconsumedduringthefinancialyearandthetotalvalueofallindigenousrawmaterials,spare
d i il l d d h f h h lpartsandcomponentssimilarlyconsumed andthepercentageofeachtothetotalconsumption;
d) Theamountremittedduringtheyearinforeigncurrenciesonaccountofdividends with a specific mention of the total number of nonresidentdividends withaspecificmentionofthetotalnumberofnon residentshareholders,thetotalnumberofshares heldbythemonwhichthedividendsweredueandtheyeartowhichthedividendsrelated;
e) Earningsinforeignexchangeclassifiedunderthefollowingheads,namely:
(i) ExportofgoodscalculatedonF.O.B. basis;
(ii) Royalty,knowhow,professionalandconsultationfees;
(iii) Interestanddividend;
(iv) Otherincome,indicatingthenaturethereof
GENERALINSTRUCTIONSFORPREPARATIONOFSTATEMENTOFPROFITANDLOSS
NotrequiredtomentioninnotesofRevisedSchedule VI: Quantityofsales QuantityofRawmaterialconsumedQ y Installedcapacityandproductiondetails Theamountofinterestoncompanysdebenturesandfixedloanstomanaging
directorandmanager.M i l ti t b id bl ti 198 d Managerialremunerationtobepaidorpayableaspersection198andcommissionpayabletodirectorsaspersection349.
A SHARECAPITAL:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Reconciliationofopeningandclosingofnumberofsharesoutstanding
2) Sharesheldbyassociatesoftheholdingcompanyorultimateholdingcompany
3) NameandNumberofsharesheldbyshareholdersholdingmorethan5%shares(asthereferenced t i t ti d l i ll it h ld b B l h t d t )dateisnotmentioned,logicallyitshouldbeBalancesheetdate)
4) Incaseofsecuritiesconvertibleintoequity/preferencesharesthenworkingfordateofconversionindescendingorderstartingfromthefarthestsuchdate.
B CURRENT LIABILITES :B CURRENTLIABILITES:
Amountofliabilitiesduetobesettledwithin12monthsfromthereportingdate,forworkingofcurrentliabilities
B1 LONGTERMBORROWINGS:
Theentirepointisnew,hencethecompanywillhavetofindout:1) Termloan longtermandshortterm.2) Deposits(includingfixeddeposits) longtermandshortterm.3) Loan from related parties long term and short term3) Loanfromrelatedparties longtermandshortterm.4) TradePayable longtermandshortterm.5) Provisionforemployeebenefits longtermandshortterm.6) Bonds/debenturesshallbestatedindescendingorderofmaturitystartingfromfarthest) g y g
redemption.7) Termsofrepaymentoftermloansandotherloansshallbestated.8) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest.
B2 SHORTTERMBORROWINGS:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Loansthatarerepayableondemand(includesLoansforworkingcapital)
2) Periodandamountofcontinuingdefaultinrepaymentofloansandinterest
Note: workingtobifurcateAllBorrowings&ProvisionstoLONGTERMandSHORTTERMg g
B3 OTHERCURRENTLIABILITES:
1) Amountofcurrentmaturitiesoflongtermdebt) g
2) Amountofcurrentmaturitiesforfinancelease
3) Amountofincomereceivedinadvance
4) Amountofinterestaccruedonmatureddepositsanddebentures) p
A TANGIBLEASSETS:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Bifurcationofleaseassetsundereachclassofassets
2) Amountofassetsacquiredthroughbusinesscombinations(i.e.bifurcationfromadditiontoassets)
3) Incaseofrevaluationofassets,amountofreductionandincreaseinthevalueofassetforsubsequent5years.
B CURRENT ASSETS :B CURRENTASSETS:
Bifurcationofassetswhichareexpectedtoberealizedandconsumedinnormaloperatingcycle.
Amountofassetsexpectedtoberealizedwithin12monthsafterthereportingdate.p p g
B1 NONCURRENTINVESTEMENTS:
1) Amountofinvestmentinproperty(notforbusinesspurposeandwheretheintensionisto invest)toinvest)
2) Classificationofallnoncurrentinvestmentsin(i)subsidiaries(ii)associates(iii)jointventures(iv)controlledspecialpurposeentities.
B2 LONGTERMLOANSANDADVANCES:
1) AmountofCapitaladvances
2) Amountofsecuritydeposits
B3 OTHERNONCURRENTASSETS:
AdditionaldetailstobeworkedoutforpreparingBalancesheetasperRevisedSchedule VI
1) Amountoflongtermtradereceivables
B4 INVENTORIES:
1) AmountofGoods in transitundereachcategoryofinventory
B5 TRADERECEIVABLES:
1) Tradereceivablesoutstandingfor6monthsormorefromtheduedateforpayment(againstearlierrequirementofinvoicedate)needtobeworkedout
B6 CASHANDCASHEQUIVALENTS:
1) Amountofcheques,draftsonhand
2) Earmarkedbalanceswithbanks
3) Repatriationrestrictionsinrespectofcashandbankbalances
4) Amountofbankdepositsmorethan12monthsmaturity
FINANCECOSTS:
AdditionaldetailstobeworkedoutforpreparingProfitandlossasperRevisedSchedule VI
1) Gain/Lossonforeigncurrencytransactiontobeseparatedintofinancecostsandotherexpenses
OTHERINCOME:
1) Amountofdirectlyattributableexpensestoearnnonoperatingincomes.
ADDITIONALINFORMATION:
1) Detailsofincome andexpensewhichismorethan1%oftherevenuefromoperationsorRs1Lac,whicheverhigher
2) Amountofnetgainorlossonforeigncurrency(otherthanconsideredasfinancecosts)
3) DetailsofRawmaterials
4) Detailsofworksinprogress
5) Fewcircumstantialexamples ofSPEare:1) SPEforspecialbusinessneedssothattheentityobtainsbenefitsfromtheSPEsbusiness
2) EntityhasdecisionmakingpowertoobtainmajorityofthebenefitsoftheactivitiesofSPE
3) E i h i h h b fi f SPE d h f i d i k i id h3) EntityhasrightoverthebenefitsofSPEandthereforeisexposedtoriskincidenttotheactivitiesofSPE
4) EntityretainsthemajorityresidualorownershiprisksrelatedtoSPEoritsassetinordertoobtainbenefitsfromitsactivities.
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
TermLoan Exim bank LoansSecured TermLoansfromOthers
NoncurrentLiabilities Longtermborrowings TermloansfromOthers
Corporation BankTermLoanRupeeTermLoan II
Loans Secured TermLoansfromBanks
Noncurrent Liabilities Longtermborrowings Termsloansfrombanks
ABC B k EEFC A t L S d W ki C t Li biliti Sh tABCBankEEFC Account Loans Secured WorkingCapital
CurrentLiabilities Shorttermborrowings Fixeddeposit
Deferred Sales tax loan Loans Unsecured Deferred Non Current Liabilities LongDeferredSalestaxloan LoansUnsecured DeferredSalesTaxloan
NonCurrentLiabilitiesLongtermborrowingsDeferredSalesTaxloan
Provision for RM Product A Current liabilities and Current Liabilities TradeProvisionforRMProduct A CurrentliabilitiesandprovisionsSundry creditors&Expensespayable
CurrentLiabilities Tradepayables
DEPBUtilized Provision Currentliabilities & CurrentLiabilities TradeProvisionsSundryCreditors&Expensespayable
payables
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Clearing ChargesProvision CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable
Current LiabilitiesTradePayables
Earnest Money CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable
Current LiabilitiesTradePayables
R t ti M C t Li biliti & C t Li bilitiRetentionMoney CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable
Current LiabilitiesTradePayables
Supplier Advances Raw Current Assets Loans & Current Assets Short termSupplierAdvances RawMaterial
CurrentAssets,Loans &Advances Advancesrecoverableincashorkind
CurrentAssets Short termLoans&Advances(referNote1)
Supplier Advances General Current Assets, Loans & Current Assets Short termSupplierAdvances General CurrentAssets,Loans &Advances Advancesrecoverableincashorkind
CurrentAssets Short termLoans&Advances(referNote1)
BonusPayableAccount CurrentLiabilities &Provisions SundryCreditors&ExpensesPayable
CurrentLiabilities OtherCurrentLiabilitiesOtherPayablesEmployees
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Staff WelfareCenterDeductions
CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesOtherCurrentLiabilities OtherPayables Employees
OtherPayDeductions CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesOtherCurrentLiabilities OtherPayables Employees
P i i f L T l C t Li biliti & C t Li bilitiProvisionofLeaveTravelAssistance
CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesShortterm ProvisionEmployeesBenefits
Stale Cheques Current Liabilities & Current Liabilities StaleCheques CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesTradePayables Others
Deferred Revenue Income Current Liabilities & Current Liabilities DeferredRevenueIncome CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesTradePayables Others
AcceptanceAgainst Bills CurrentLiabilities& CurrentLiabilities Provisions Current Liabilities Acceptance
ShorttermBorrowingsAcceptanceFromBanks
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ProvisionExciseDutyFinishedGoods
CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesShortterm ProvisionsOther
LiabilityForExpenses CurrentLiabilities&Provisions SundryCreditors&ExpensesPayable
CurrentLiabilitiesShortterm ProvisionsOther
P i i M k t M k t C t Li biliti & C t Li bilitiProvision MarktoMarket(MTM)LossesForwardContracts
Current Liabilities&Provisions ProvisionsOther
CurrentLiabilitiesShortterm ProvisionsOther
Provision For Gratuity Current Liabilities & Non current Liabilities ProvisionForGratuity CurrentLiabilities&Provisions ProvisionsEmployeesBenefits
NoncurrentLiabilitiesLongtermProvisionEmployeeBenefits
Provision For Earned Leave Current Liabilities & Noncurrent Liabilities Provision ForEarnedLeaveEncashment
CurrentLiabilities&Provisions ProvisionsEmployeesBenefits
Non currentLiabilitiesLongtermProvisionEmployeeBenefits
SecurityDeposit Contractor CurrentLiabilities & CurrentLiabilitiesProvisions CurrentLiabilities TradeDeposits&Advances
OtherCurrent LiabilitiesTradeDeposit&Advances
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
TDS Contractors CurrentLiabilities&Provisions CurrentLiabilities OtherLiabilities
CurrentLiabilities OtherCurrentLiabilities SalesTax&WithholdingTaxesPayableC t Current
CST Collected CurrentLiabilities&Provisions CurrentLiabilities Other Liabilities
CurrentLiabilities OtherCurrentLiabilities SalesTax&Withholding Taxes Payable OtherLiabilities &WithholdingTaxesPayable Current
EntryTaxPayable CurrentLiabilities&Provisions Current Liabilities
CurrentLiabilities OtherCurrent Liabilities Sales TaxProvisions CurrentLiabilities
OtherLiabilitiesCurrentLiabilities SalesTax&WithholdingTaxesPayable Current
ExciseDutyPayable CurrentLiabilities& CurrentLiabilities OtherProvisions CurrentLiabilities OtherLiabilities
CurrentLiabilities SalesTax&WithholdingTaxesPayable Current
ProvisionForIncomeTax CurrentLiabilities&Provisions ProvisionsIncome Tax&WealthTax
CurrentLiabilities ShorttermProvisions IncomeTax&WealthTax
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ProvisionForDividendEquity
CurrentLiabilities&Provisions ProvisionsDividendonEquityShares
CurrentLiabilities Shortterm Provisions DividendonEquityShares
AdvanceFrom Customers Current Liabilities&Provisions CurrentLiabilities TradeDeposits&Advances
CurrentLiabilities OtherCurrentLiabilities TradeDeposit&Advances
SODEXHOVoucherinHand Current Assets Cash&BankBalances CashinHand
CurrentAssets Cash &CashEquivalents CashinHand
Imprest UK Office Current Assets Cash & Bank Current Assets Cash & CashImprestUKOffice Current Assets Cash&BankBalances CashinHand
CurrentAssets Cash &CashEquivalents CashinHand
PostageImprest Current Assets Cash&BankBalances Cash in Hand
CurrentAssets Cash &CashEquivalents Cash in HandBalances CashinHand Equivalents CashinHand
ClaimsRecoverableDEPBLicenseinHand
CurrentAssets Loans&Advances AdvancesRecoverableinCashorKind
CurrentAssets OtherCurrentAssets Other
TradedepositsandSecuritydeposits
CurrentAssets Loans&Advances Deposits
OtherNoncurrent/longtermliabilitiesCurrentLiabilities
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Staff HousingLoan CurrentAssets Loans &Advances AdvancesRecoverableinCashorKind
NonCurrent Assets LongtermLoans&AdvancesEmployees
StaffAdvance AgainstSalary CurrentAssets Loans &Advances AdvancesRecoverableinCashorKind
CurrentAssets ShorttermLoans&Advances Employees
St ff Ad F ll & Fi l C t A t L & C t A t Sh t tStaff Advance Full&FinalCases
CurrentAssets Loans &Advances AdvancesRecoverableinCashorKind
CurrentAssets ShorttermLoans&Advances Employees
Deposit With GSEB Current Assets Loans & Non Current Assets DepositWithGSEB CurrentAssets Loans&Advances Deposits
NonCurrent AssetsOtherNonCurrentAssetsSecurityDeposits
Security Deposit Current Assets Loans & NonCurrent Assets SecurityDeposit CurrentAssets Loans&Advances Deposits
Non Current AssetsOtherNonCurrentAssetsSecurityDeposits
DepositWith Suppliers CurrentAssets Loans& NonCurrent Assets OtherAdvances Deposits NonCurrentAssets Security
Deposits
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
DepositsWithSalesTax CurrentAssets Loans&Advances DepositswithExcise&SalesTax
CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcise& Sales Tax&SalesTax
Basic ExciseDuty(PLA) CurrentAssets Loans&Advances DepositswithExcise&SalesTax
CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcisep&SalesTax
Balancein RG23 CurrentAssets Loans&Advances Depositswith
CurrentAssets ShorttermLoans&Advances
Excise&SalesTax Deposit/BalanceWithExcise&SalesTax
VATABLE Cess CurrentAssets Loans&Ad D it ith
CurrentAssets ShorttermL & AdAdvances Depositswith
Excise&SalesTaxLoans&AdvancesDeposit/BalanceWithExcise&SalesTax
State Excise (PLA) Current Assets Loans & Current Assets ShorttermState Excise(PLA) CurrentAssets Loans&Advances DepositswithExcise&SalesTax
CurrentAssets Short termLoans&AdvancesDeposit/BalanceWithExcise&SalesTax
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
MODVATCapitalGoods CurrentAssets Loans&Advances DepositswithExcise&SalesTax
CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcise& Sales Tax&SalesTax
ServiceTax Recoverable CurrentAssets Loans&Advances DepositswithExcise&SalesTax
CurrentAssets ShorttermLoans&AdvancesDeposit/BalanceWithExcisep&SalesTax
SalesTaxRecoverable CurrentAssets Loans&Advances Depositswith
CurrentAssets ShorttermLoans&Advances
Excise&SalesTax Deposit/BalanceWithExcise&SalesTax
ServiceTaxCENVATCredit CurrentAssets Loans&Ad D it ith
CurrentAssets ShorttermL & AdAdvances Depositswith
Excise&SalesTaxLoans&AdvancesDeposit/BalanceWithExcise&SalesTax
VAT Recoverable Current Assets Loans & Current Assets ShorttermVATRecoverable CurrentAssets Loans&Advances DepositswithExcise&SalesTax
CurrentAssets Short termLoans&AdvancesDeposit/BalanceWithExcise&SalesTax
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
Advance IncomeTax CurrentAssets Loans&Advances Advance PaymentofIncomeTax&WealthTax
CurrentAssets ShorttermLoans& Advances AdvancePaymentofIncomeTax&Wealth TaxWealthTax
IncomeTaxDeductedAtSource
CurrentAssets Loans&Advances Advance Paymentof Income Tax & Wealth Tax
CurrentAssets ShorttermLoans& Advances AdvancePayment of Income Tax &ofIncomeTax&WealthTax PaymentofIncomeTax&WealthTax
MAT CreditEntitlementReceivable
CurrentAssets Loans&Advances MATCredit
CurrentAssets ShorttermLoans&Advances MAT
Entitlement CreditEntitlement
Profit SaleofInvestments Other Income NetGain/LossonCurrent
OtherIncome NetGain/LossonCurrent
Investments Investments
InterestonIncomeTaxRefundReceived
Other IncomeMiscellaneousReceipts
OtherIncome OtherNonOperatingIncome
MiscellaneousReceipts OtherIncomeMiscellaneousReceipts
OtherIncome OtherNonOperatingIncome
ChartofAccountswithOldandRevisedGroupingNarration Grouping Old Grouping Rev Sch VI
Profit Sale of Fixed Assets Other Income Profit on Sale Other Income Profit on SaleProfit Saleof FixedAssets OtherIncome ProfitonSaleofFixedAssets
OtherIncome ProfitonSaleofFixedAssets
Increase/DecreaseinFinishedStock
Increase/Decrease inFinishedStock
ChangeinInventoriesofFinished Goods Workin Stock Stock Finished GoodsWork inProgressandStockinTrade
JobWorkCharges Manufacturing&OtherExpenses ProcessingCharges
Other ManufacturingExpenses ProcessingChargesp g g p g g
InternalAuditFees Manufacturing&OtherExpenses Legal&Professional
OtherExpenses Legal&Professional
PatentRelatedExpenses Manufacturing&OtherExpenses PatentRelatedExpenses
OtherExpenses Legal&Professional
DirectorCommission Manufacturing&OtherExpenses Advertisement&Publicity
OtherExpenses DirectorCommission
S l i Gif f i & O h O hSalesPromotion Gifts Manufacturing&OtherExpenses Advertisement&Publicity
OtherExpensesAdvertisement& Publicity
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ForeignCurrencySwapExchange Fluctuations
Manufacturing&OtherExpenses FinancialCharges
FinanceCost OtherBorrowingCost
ForeignExchange Manufacturing&Other FinanceCost OtherFluctuationsFCCB Expenses FinancialCharges BorrowingCost
ForeignExchangeFluctuations MarktoM k t (MTM) L
Manufacturing&OtherExpenses FinancialCharges
FinanceCost OtherBorrowingCost
Market(MTM)Losses
ForeignExchangeFluctuationsImports
Manufacturing&OtherExpenses FinancialCharges
Other Expenses ForeignExchangeFluctuation
ForeignCurrencyRateDifferenceExports
Manufacturing&OtherExpenses FinancialCharges
Other Expenses ForeignExchangeFluctuation
CommissionConsignmentAgent
Manufacturing&OtherExpenses Commission on
OtherExpensesCommission on SalesAgent Expenses Commissionon
SalesCommissiononSales
SalesTaxExpenses Manufacturing&OtherExpenses Claims to
OtherExpenses ClaimstoCustomer & Other SellingExpenses Claimsto
Customer &OtherSellingExpenses
Customer &OtherSellingExpenses
ChartofAccountswithOldandRevisedGrouping
Narration Grouping Old Grouping Rev Sch VI
ExpensesofC&FAgents Manufacturing&OtherExpenses ClaimstoCustomer &OtherSellingExpenses
OtherExpenses ClaimstoCustomer &OtherSellingExpenses
Expenses
SundryDebit/Credit BalancesWrittenOff
Manufacturing&OtherExpenses MiscellaneousExpenses
OtherExpensesMiscellaneous Expenses
ListingFees Manufacturing&OtherExpenses MiscellaneousExpenses
OtherExpensesMiscellaneous Expenses
AmountRoundedOff Manufacturing&OtherExpenses MiscellaneousExpenses
OtherExpensesMiscellaneous Expenses
Provision IncomeTaxFortheYear
ProvisionForIncomeTaxExpenses
ProvisionForIncomeTaxExp
MATCredit EntitlementE /I
MATCreditEntitlementE /I
MATCreditEntitlementE /IExpense/Income Exp/Income Exp/Income
Meetings&ConferenceExpense
Manufacturing&OtherExpenses Advertisement&Publicity
OtherExpensesAdvertisement&Publicity
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RelatedpartyPartiesareconsideredtoberelatedifatanytimeduringthereportingperiodonepartyhastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheotherparty in making financial and/or operating decisions [AS 18]partyinmakingfinancialand/oroperatingdecisions.[AS18] Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofanenterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthecompositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,the financial and/or operating policies of the enterprisethefinancialand/oroperatingpoliciesoftheenterprise.
SignificantinfluenceParticipationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnotcontrolofthosepolicies.
BackupSlide
RelatedpartyPartiesareconsideredtoberelatedifatanytimeduringthereportingperiodonepartyhastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheotherparty in making financial and/or operating decisions [AS 18]partyinmakingfinancialand/oroperatingdecisions.[AS18] Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofanenterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthecompositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,the financial and/or operating policies of the enterprisethefinancialand/oroperatingpoliciesoftheenterprise.
SignificantinfluenceParticipationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnotcontrolofthosepolicies.
BackupSlide
RelatedpartyPartiesareconsideredtoberelatedifatanytimeduringthereportingperiodonepartyhastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheotherparty in making financial and/or operating decisions [AS 18]partyinmakingfinancialand/oroperatingdecisions.[AS18] Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofanenterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthecompositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,the financial and/or operating policies of the enterprisethefinancialand/oroperatingpoliciesoftheenterprise.
SignificantinfluenceParticipationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnotcontrolofthosepolicies.
BackupSlide
RelatedpartyPartiesareconsideredtoberelatedifatanytimeduringthereportingperiodonepartyhastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheotherparty in making financial and/or operating decisions [AS 18]partyinmakingfinancialand/oroperatingdecisions.[AS18] Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofanenterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthecompositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,the financial and/or operating policies of the enterprisethefinancialand/oroperatingpoliciesoftheenterprise.
SignificantinfluenceParticipationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnotcontrolofthosepolicies.
BackupSlide
RelatedpartyPartiesareconsideredtoberelatedifatanytimeduringthereportingperiodonepartyhastheabilitytocontrol theotherpartyorexercisesignificantinfluence overtheotherparty in making financial and/or operating decisions [AS 18]partyinmakingfinancialand/oroperatingdecisions.[AS18] Control
(a) ownership,directlyorindirectly,ofmorethanonehalfofthevotingpowerofanenterprise,or
(b) controlofthecompositionoftheboardofdirectorsinthecaseofacompanyorofthecompositionofthecorrespondinggoverningbodyincaseofanyotherenterprise,or
(c) asubstantialinterestinvotingpowerandthepowertodirect,bystatuteoragreement,the financial and/or operating policies of the enterprisethefinancialand/oroperatingpoliciesoftheenterprise.
SignificantinfluenceParticipationinthefinancialand/oroperatingpolicydecisionsofanenterprise,butnotcontrolofthosepolicies.
DisclosurerequirementsofInvestmentsasperAS 13
BackupSlide
Thefollowinginformationshouldbedisclosedinthefinancialstatements:
(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;
AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue
(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationincurrentandlongterminvestment;
(c)theamountsincludedinprofitandlossstatementfor:(i) interest dividends (showing separately dividends from subsidiary companies) and(i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and
rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrentinvestments.Grossincomeshouldbestated,theamountofincometaxdeductedatsourcebeingincludedunderAdvanceTaxesPaid;
(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamountofsuchinvestments;and
(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarryingamountofsuchinvestments;;
(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor
theremittanceofincomeandproceedsofdisposal;
(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate
marketvalueofquotedinvestments;
(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe
enterprise.
DisclosurerequirementsofInvestmentsasperAS 13
BackupSlide
Thefollowinginformationshouldbedisclosedinthefinancialstatements:
(a)theaccountingpoliciesfordeterminationofcarryingamountofinvestments;
AccountingforAmalgamationsi.e.(a)atcost(b)lowerofcostandfairvalue
(b)classificationofinvestmentsasspecifiedinparagraphs26and27abovei.e.bifurcationincurrentandlongterminvestment;
(c)theamountsincludedinprofitandlossstatementfor:(i) interest dividends (showing separately dividends from subsidiary companies) and(i) interest,dividends(showingseparatelydividendsfromsubsidiarycompanies),and
rentalsoninvestmentsshowingseparatelysuchincomefromlongtermandcurrentinvestments.Grossincomeshouldbestated,theamountofincometaxdeductedatsourcebeingincludedunderAdvanceTaxesPaid;
(ii) profitsandlossesondisposalofcurrentinvestmentsandchangesinthecarryingamountofsuchinvestments;and
(iii) profitsandlossesondisposaloflongterminvestmentsandchangesinthecarryingamountofsuchinvestments;;
(d)significantrestrictionsontherightofownership,realisability ofinvestmentsor
theremittanceofincomeandproceedsofdisposal;
(e)theaggregateamountofquotedandunquotedinvestments,givingtheaggregate
marketvalueofquotedinvestments;
(f)otherdisclosuresasspecificallyrequiredbytherelevantstatutegoverningthe
enterprise.
Excisedutydisclosure:
BackupSlide
y
AS 9requiresthattherevenueshouldbedisclosed:
Turnover(Gross) XX( )
Less:ExciseDuty XX
Turnover(Net) XX
ThisissomewhatdifferentthenasrequiredinrevisedScheduleVIasdiscussedearlier.q
GiventhefactaccountingstandardswillhaveanoverridingeffectoverrevisedScheduleVIandsoourviewisthatexcisedutyshouldbedeductedfromsalesofproducts.
Practicalguidanceonnetgain/lossofforeigncurrencytransactions:
BackupSlide
g g / g y
IntheviewofAS 16whichstatesthatborrowingcosts,mayincludeexchangedifferencesarisingfromforeigncurrencyborrowingstotheextentthattheyareregardedasanadjustmenttointerestcosts.Thus,gainorlossonforeigncurrencytransactionstobeshownunderfinancecostsshouldbelimitedtothisamountonly.Othergainsandlossshouldbeshownseparatelyunderappropriateheads.
Backupslide
ExamplesofOperatingcycle:
Q 1) BLtdproducesaircraft.Thelengthoftimebetweenfirstpurchasingrawmaterial[RM]tomakingtheaircraftsandthedatethecompanycompletestheproduction
d d li i 9 th Th i t f th i ft 7anddeliveryis9months.Thecompanyreceivespaymentfortheaircrafts7monthsafterthedelivery.
A. Whatisthelengthofoperatingcycle?
B How should it treat its inventory and debtors?B. Howshouldittreatitsinventoryanddebtors?
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Examples:
A 1 A) operatingcycleisof16months
B) inventoryanddebtorshouldbeclassifiedascurrent
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Examples:
Q 2) RMholdingperiod:3months
WIPholdingperiod:1month
FGholdingperiod:5months
Debtorscollectionperiod:5months
Whatistheoperatingcycle?
Backupslide
Examples:
A 2) Operatingcycleis14months[RM+WIP+FG(holdingperiod)+Debtorscollectionperiod]
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Examples:
Q 3) Canacompanyengagedindiversifiedoperationshavedifferentoperatingcyclesforvariousbusinesslines?
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Examples:
A 3) Yes.
ThereisnobarinrevisedScheduleVIforacompanytohavemultipleoperatingcycles
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Examples:
Q 4) Immovableinvestmentpropertyexpectedtobesoldwithin12monthsfromthereportingdate,howtoclassifythisproperty?
Backupslide
Examples:
A 4) AS 13requiredthatanenterpriseholdinginvestmentshouldbeaccountedforthesameaslongterminvestments.Hence,despitethefactitisintendedtobesoldwithin12monthsfromthereportingdate,sameshallbeclassifiedasnoncurrent.
Backupslide
Examples:
Q 5) XLtdgivingsecuritydepositofRs15,000forthepurposeofpreparingbalancesheetasperrevisedScheduleVI,wherethisdepositshallbeclassified?
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Examples:
A 5) Theintensionofthecompanyistoseekwhethercompanywantarefundwithin12monthsfromthereportingdatethencurrentassetelsenoncurrentasset.
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Examples:
Q 6) OldscheduleVIrequiresonlycapitalcommitmentshallbedisclosed,howeverreviseScheduleVIrequiredallcommitmentsrequirestobedisclosed.WhatisthenatureofcommitmentstobedisclosedunderrevisedScheduleVI?
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Examples:
A 6) Commitmentgenerallyimpliesfutureliabilityforcontractualexpenditure.Accordingly,allexpensesrelatedtocontractualcommitmentsapartfromcapital
dit i i f l t t t f h f t i lexpenditurearisingfromlongtermcontractsforpurchaseofrawmaterial,employeecontracts,leasecommitments,etc.Thescopeofsuchterminologyisverywideandmayincludecontractualcommitmentsforpurchaseofinventory,services, investments,sales,employeecontracts,etc.Onlynoncancellable, , , p y , ycontractsshallbedisclosed.
Backupslide
Examples:
Q 7) RevisedScheduleVIrequiredCapitaladvancestobeclassifiedunderlongtermloansandadvances;doesitmeanall,includingtherecoverablewithin12monthsshallbeclassifiedunderthishead?
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Examples:
A 7) Yes
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Examples:
Q 8) RevisedScheduleVIdoesnotdefinecashandcashequivalents,doesitmeanwehavetofollowtherequirementsofthesameasperAS 3?
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Examples:
A 8) Yes.
AsAS willprevailoverscheduleVI.Thus,oneshouldchangethediscloseofcashandbankbalanceassubheadingCashandCashEquivalentsandOtherbankbalances.TheformerheadingwillincludeonlytheasdefinedinAS 3oncashand cash equivalent and the remaining balances as per later headingandcashequivalentandtheremainingbalancesasperlaterheading.
Backupslide
Examples:
Q 9) Acompanyhasexcessfinishedgoodsinventorythatitdoesnotexpect torealizewithinthecompanysoperatingcycleof15months?
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Examples:
A 9) SincesuchFinishedgoodsinventoryisheldprimarilyforthepurposeofbeingtraded,thesameshouldbeclassifiedasCurrent.
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Examples:
Q 10) Acompanyhassold10,000tonnes ofsteeltoitscustomer.Thesalecontractprovidesforanormalcreditperiodfor3months.Thecompanysoperatingcycleis6months.However,thecompanydoesnotexpecttoreceivethepaymentwithin12 months from the reporting date Whether such receivable should be classified12monthsfromthereportingdate.WhethersuchreceivableshouldbeclassifiedunderCurrentorNoncurrent?
Backupslide
Examples:
A 10) ThisshouldbeclassifiedasNon currentinBalancesheet.Incase,thecompanyexpects torealizetheamountupto 12monthsfromtheBalancesheetdate(thoughbeyondoperatingcycle)thesameshouldbeclassifiedascurrent.
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