Introduction

the Ministry of Corporate Affairs replaced the existing Schedule VI of the Companies Act, 1956 on 28th February 2011 the revised Schedule VI applicable to all companies for the financial year commencing from 01st April 2011 Every company registered under the Act shall prepare its Balance Sheet, Statement of Profit and Loss and notes Need:
To harmonise the disclosure requirements with the Accounting Standards To converge with the new reforms

Not Applicable to;

companies as referred to in the proviso to Section 211 (1) and Section 211 (2) of the Act, i.e., any insurance or banking company, or any company engaged in the generation or supply of electricity

Key features
Gives prominence to Accounting Standards (AS) Balance Sheet presented in vertical format only Revised Schedule VI has eliminated the concept of schedule which is replaced by Notes

Key features
Title of Balance Sheet
Source of Funds now is Equities and Liabilities; Application of Funds now is Assets

All Assets and liabilities classified into current and non-current and presented separately on the face of the Balance Sheet. shareholder holding more than 5% shares now needs to be disclosed

Key features
Presentation of figures: Where Turnover: < ` 100 crores = Figures to be in nearest hundreds, thousands, lacs or millions or decimals thereof. > ` 100 crores = Figures to be in nearest lacs or millions or crore or decimals thereof. Unit measurement should be used uniformly in the Financial Statements. Any item under which income or expenses exceed 1% of revenue from operations or ` 1,00,000 whichever is higher, shall be shown separately and distinct item against an appropriate account head in Profit & Loss statement

Particulars

Note No.

Figures as at the end of the current reporting period

Figures as at the end of the previous reporting period

I. EQUITY AND LIABILITIES (1) Shareholders Funds (a) Share capital (b) Reserves and surplus (c) Money received against share warrants (2) Share Application Money pending allotment

New Line Item New Line Item

(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

Form of Balance sheet

Particulars Note No.
Figures as at the end of the current reporting period Figures as at the end of the previous reporting period II. ASSETS (1) Non-current Assets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress (iv) Intangible assets under development (b) Non-current Investments (c) Deferred Tax Assets (net) (d) Long-term loans and advances (e) Other non-current assets (2) Current Assets (a) (b) (c) (d) (e) (f) TOTAL Current investments Inventories Trade receivables Cash and cash equivalents Short-term loans and advances Other current assets

COMPARITIVE ANALYSIS BETWEEN OLD SCHEDULE VI AND REVISED SCHEDULE VI

Particulars Authority Old Schedule VI Revised Schedule VI Provisions of Schedule VI Provisions of Accounting will prevail over Standards will prevail over Accounting Standards Schedule VI Both horizontal and vertical form were allowed Only vertical form of Balance Sheet has been specified in the revised Schedule VI Form of Profit and Loss Account specified under Part II Equities and Liabilities and Assets Transfer from/ to reserves to be shown under the heading Reserves & Surplus only. No requirement of separate Profit and Loss Appropriation Account.

Form of Balance Sheet

Form of Profit No format specified for and Loss Account Profit and Loss Account Headings in Balance Sheet Profit and Loss Appropriation Account Sources of funds and Application of funds Opening surplus, proposed dividend and transfer to/ from reserves were shown in Profit and Loss Appropriation Account

Particulars Proposed Dividend

Old Schedule VI Proposed Dividend required to be provided for

Revised Schedule VI Proposed Dividend to be disclosed in notes

Quantitative Details

Quantitative details of Raw materials, purchases, stocks and turnover to be given for each class of goods. Also licensed and installed capacity and production quantity to be given for manufacturing companies

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

Particulars

Old Schedule VI

Revised Schedule VI

Share Capital

No requirement to disclose separately bonus shares issued during last 5 years. Also no requirement for details of shareholders holding more than 5% of shares

In addition to the disclosure requirements of old Schedule VI following additional disclosures are also required Number of bonus shares/ shares allotted without payment being received in cash/ shares bought back during last 5 years
Names and number of shares held by shareholders holding more than 5 percent of total shares

Particulars

Old Schedule VI

Revised Schedule VI

Net Working Capital

Current assets & Liabilities are shown together under application of funds. The net working capital appears on balance sheet.
There was no bifurcation required in to tangible & intangible assets. Capital advances used to be shown under the Head Capital Work in Progress under Fixed Assets

Assets & Liabilities are to be bifurcated in to current & Non-current and to be shown separately. Hence, net working capital will not be appearing in Balance sheet.
Fixed assets to be shown under non-current assets and have to be bifurcated in to Tangible & intangible assets. Capital advances to be shown under the head Long term Loans and Advances

Fixed Assets

Particulars Borrowings

Old Schedule VI Short term & long term borrowings are grouped together under the head Loan funds sub-head Secured / Unsecured

Revised Schedule VI Long term borrowings to be shown under non-current liabilities and short term borrowings to be shown under current liabilities with separate disclosure of secured / unsecured loans. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified.

Deposits

Lease deposits are part of loans & advances

Lease deposits to be disclosed as long term loans & advances under the head non-current assets

Particulars Deferred Tax Assets / Liabilities

Old Schedule VI Deferred Tax assets / liabilities to be disclosed separately on the face of Balance Sheet.

Revised Schedule VI Deferred Tax assets / liabilities to be disclosed under non-current assets / liabilities as the case may be.

Sundry Debtors

Debtors outstanding for more than six months from invoice date to be shown separately

Debtors outstanding for more than six months from the date they became due to be shown separately.

Profit & Loss (Debit Balance)

P&L debit balance to be Debit balance of Profit and separately disclosed in the Loss Account to be shown as Balance Sheet. negative figure under the head Surplus. Therefore, Reserve & Surplus can have a negative balance

Particulars Other current liabilities

Old Schedule VI No specific mention for separate disclosure of Current maturities of long term debt No specific mention for separate disclosure of Current maturities of finance lease obligation Any item under which expense exceeds one per cent of the total revenue of the company or Rs. 5,000 which ever is higher; shall be disclosed separately

Revised Schedule VI Current maturities of long term debt to be disclosed under other current liabilities. Current maturities of finance lease obligation to be disclosed.

Separate line item Disclosure criteria

Any item of income / expense which exceeds one per cent of the revenue from operations or Rs. 1,00,000, which ever is higher; to be disclosed separately

Particulars Purchases

Old Schedule VI The purchase made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities thereof.

Revised Schedule VI Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted. Goods-in-transit to be separately disclosed

TDS amount on Interest, royalty received Managerial Remuneration and Commission

TDS amount was required No requirement of disclosing to be shown for Interest TDS amounts separately income etc. Payment to directors and detailed calculation under section 198 was required to be disclosed No disclosure requirements for Managerial Remuneration

Particulars ESOP expenses

Old Schedule VI No requirement to show separately as part of Employee Benefits expense

Revised Schedule VI Expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP) to be shown separately as part of Employee Benefits expense No such specific definitions.

Part IIIInterpretation

Terms provision, reserve, capital reserve, quoted investment etc. were defined Details of company registration number, capital raised, Balance Sheet details, products etc. were required to be attached with financials

Part IV- Balance Sheet Abstract

No such requirement.