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Soft solutions for those who can’t afford to make errors. “A Summary on Revised Schedule VI & XBRL” Service begins here…..

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Presentation on theme: "Soft solutions for those who can’t afford to make errors. “A Summary on Revised Schedule VI & XBRL” Service begins here….."— Presentation transcript:

1 Soft solutions for those who can’t afford to make errors. “A Summary on Revised Schedule VI & XBRL” Service begins here…..

2 INDEX REVISED SCHEDULE VI (The companies Act, 1956) 1) Applicability 2) Major Changes 3) Key Definitions 4) Comparative Change in - Balance Sheet Key Highlights 5) Comparative Change in - Statement of Profit and Loss Key Highlights 6) Others/Disclosures 7) Disclosures under Companies Act,1956 8) Reference

3  As per the Government Notification No. F. No. 26/2008-C L-V dated , Revised Schedule VI is applicable for the Balance Sheet and Profit & Loss Account to be prepared for the financial Year commencing on or after April,  Early adoption of the Revised Schedule VI is not permitted since Schedule VI is a Statutory format.  Schedule VI to the Companies Act, 1956 (‘the Act’) provides the manner in which every company registered under the Act shall prepare its,  Balance Sheet  Statement of Profit and Loss and  Notes thereto.  In the light of various economic and regulatory reforms that have taken place for companies over the last several years, there was a need for enhancing the disclosure requirements under the Old Schedule VI to the Act and harmonizing and synchronizing them with the notified Accounting Standards as applicable (‘AS’/‘Accounting Standard(s)’). Applicability

4  Accounting Standards (AS) and other statutory requirement have a superseding effect over the disclosure requirements of Revised Schedule VI :  In case of any changes in existing AS which are contradictory with Revised Schedule VI format, AS will prevail over this format.  The disclosure Requirements specified in Revised Schedule VI are in addition to and not in substitution to AS and Companies Act.  Expenses should be aggregated based on their nature only. Accordingly, functional classification of expenses is prohibited.  Comparative number for FY11 also need to be regrouped based on the above principle Major Changes

5  The concept of separate schedules and separate notes has been removed.  Notes are to be given for all disclosure in addition to disclosure given on the face of Balance Sheet and Profit & Loss. Cross referencing of notes to related item on face of BS or P&L is mandatory now. --> IAS 1  Classification of all Assets and Liabilities into Current and Non- Current.  Specific format of Profit and Loss Account.  Profit and Loss Account is now named as “Statement of Profit and Loss” Major Changes (Contd….)

6 Current / Non-Current Assets: An asset shall be classified as current when it satisfies any of the following criteria:  It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle.**  It is held primarily for the purpose of being traded;  It is expected to be realized within twelve months after the reporting date; or  It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets shall be classified as Non-Current. ** Operating cycle:  An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.  Where the normal operating cycle cannot be identified, it is assumed to have a duration of 12 months. Key Definitions:

7 Current / Non- Current Liability: A liability shall be classified as current when it satisfies any of the following criteria:  It is expected to be settled in the company’s normal operating cycle;  It is held primarily for the purpose of being traded;  It is due to be settled within twelve months after the reporting date; or  The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current. Key Definitions:

8 Comparative Changes in Format of: Balance Sheet Note: (The Revised Schedule VI prescribes only the vertical format for presentation of Financial Statements. Thus, a company will now not have an option to use horizontal format for the presentation of Financial Statements as prescribed in Old Schedule VI.)

9 ParticularsSchedulesDetail Amount Amount Sources of Funds: Shareholders’ Fund: Share Capital2.1XXXX Reserve & Surplus2.2XXXX Loans & Funds: Secured Loans2.3XXXX Unsecured Loans2.4XXXX TOTAL FUNDSXXXX Particulars Notes Current Year Previous Year I. EQUITY AND LIABILITIES: (1) Shareholders’ Fund: (a) Share capital2.1XXXX (b) Reserves & Surplus2.2XXXX (c) Money Received against Share warrants 2.3XXXX (2) Share Application Money Pending Allotment: 2.4XXXX (3) Non-Current Liabilities: (a) Long-Term Borrowings2.5XXXX (b) Deferred Tax Liabilities (Net)2.6XXXX (c) Other Long-Term Liabilities2.7XXXX (d) Long-Term Provisions2.8XXXX (4) Current Liabilities: (a) Short -Term Borrowings2.9XXXX (b) Trade Payables2.10XXXX (c) Other Current Liabilities2.11XXXX (d) Short -Term Provisions2.12XXXX TOTALXXXX Old Schedule VI (Balance Sheet) New Revised Schedule VI (Balance Sheet)

10 ParticularsSchedu les Detail Amount Amount Application of Funds: Fixed Assets: Gross Block3.1 XXXX Less: Depreciation3.2(XXXX) Net Block3.1XXXX Capital Work-in-Progress3.3XXXX Investments3.4XXXX Current Assets, Loans and Advances: Inventories3.6XXXX Sundry Debtors3.7XXXX Cash & Bank Balances3.8XXXX Other Current Assets3.9XXXX Loans & Advances3.10XXXX Less: Current Liabilities and Provisions: Current Liabilities3.11(XXXX) Provisions3.12 (XXXX) Net Current Assets XXXX Miscellaneous Expenditure (to the extent not written off or adjusted) {fictitious asset} 3.13 XXXX Profit & Loss Account3.14(XXXX) Difference in Trial balance3.15XX/(XX) TOTAL FUNDS EMPLOYED XXXX Particulars Notes Current Year Previous Year II. ASSETS: (1) Non-Current Assets: (a) Fixed Assets: (i) Tangible Assets3.1XXXX (ii) Intangible Assets3.2XXXX (iii) Capital Work-in-Progress3.3XXXX (iv) Intangible assets under Development 3.4XXXX (b) Non-Current Investments:3.5XXXX (c) Deferred Tax Assets (Net)3.6XXXX (d) Long-Term Loans and Advances3.7XXXX (e) Other Non-Current Assets3.8XXXX (2) Current Assets: (a) Current investments 3.9XXXX (b) Inventories 3.10XXXX (c) Trade receivables 3.11XXXX (d) Cash and cash equivalents 3.12XXXX (e) Short-term loans and advances 3.13XXXX (f) Other current assets 3.14XXXX TOTALXXXX

11 Share Capital:  Number of shares held by each shareholder holding more than 5 percent shares in the company now needs to be disclosed. In the absence of any specific indication of the date of holding, such information should be based on shares held as on the Balance Sheet date.  Details pertaining to aggregate number and class of shares allotted for consideration other than cash, bonus shares and shares bought back will need to be disclosed only for a period of five years immediately preceding the Balance Sheet date including the current year.  Specific disclosures are prescribed for Share Application money. The application money not exceeding the capital offered for issuance and to the extent not refundable will be shown separately on the face of the Balance Sheet. The amount in excess of subscription or if the requirements of minimum subscription are not met will be shown under “Other current liabilities.” Key Highlights (Balance sheet):

12 Reserves and Surplus: Major heads : a)Capital Reserves b)Surplus as per Profit & Loss Account c)Other Reserves** **Specify nature and purpose of each Other reserve i.e. Gen. Reserve, Special Reserve etc.  Profit and Loss Surplus: Appropriation of surplus in Profit & Loss such as dividend, transfer to/from reserves etc need to be mentioned. Hence appropriation of surplus has not to be shown in Profit & Loss A/c.  The balance of ‘Reserves and Surplus’, after adjusting negative balance of surplus, if any, shall be shown under the head ‘Reserves and Surplus’ even if the resulting figure is in the negative. Key Highlights (Balance sheet):

13 Borrowings:  Borrowing should be classified in Current and Non-Current category. Working Capital Loans: It will classified as current even if based on the past experience, it is expected that the lender will not demand the repayment within next 12 months. Since the company does not have an unconditional right to defer the settlement of loan for at least 12 months after the reporting date.  Interest accrued and due on borrowings now to be shown along with current liabilities, earlier it was to be shown along with borrowings. Key Highlights (Balance sheet):

14 Additional Disclosure:  Terms of Repayment i.e. Period of maturity; No. & amount of installment; Rate of interest etc.  TUF Loan (Technology Up-gradation Fund)  Deferred Sales tax Liability  Default existing on BS date for any loan or interest amount repayment Particular of borrowingNon current ( Borrowings ) Current ( Current portion of long term borrowings) Key Highlights (Balance sheet):

15 Trade Payables:  “Sundry Creditors” has been replaced by “Trade Payables” which is defined as follows: “A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business.”  By definition its is clear that any payable arising other than in normal course of business will not be grouped under trade payables for e.g. “Payable for Capex”.  Disclosure under MSMED Act, 2006 (The Micro, Small and Medium Enterprises Development Act):  Disclosure to be done only in case of delayed payment. Outstanding amount under normal credit period need not be disclosed under the disclosure. No separate line item is required under trade payables for MSMED trade payables. Key Highlights (Balance sheet):

16 Other Current / Non-Current Liabilities:  Current maturity of long term borrowings to be disclosed under other current liabilities.  Long term trade payables, if any, to be disclosed under Non-current liabilities  Interest on borrowings accrued but not due as well as accrued and due  Income received in Advance  Advance from Customers  Book Overdraft  Mark to Market- Derivatives  Statutory Dues  Payable for Capital Expenditure.  Liability on account of straight lining of the lease rent  Deposits Key Highlights (Balance sheet):

17 Provisions: Employee Benefits :  Gratuity  Funded : Since amount is due for payment to the fund within 12 months so to be classified as current (short term provision)  Leave Encashment  If right to avail the leave is without any condition - Short term otherwise to be segregated into short term and long term prov. as per actuarial data  Provision & Actuarial Val- Governed by AS-15  Pension  Current portion- Based on expected Cash flow for next year.  Provision & Actuarial Val- Governed by AS-15  Actuarial valuation of the PF administered by the company also needs to be done and disclosed as defined benefit plan (as per Guidance note issued on the same) Key Highlights (Balance sheet):

18 Note:  Office equipment now needs to be disclosed separately in tangible assets.  On the face of the balance sheet, only the net block of each of the above categories is required to be disclosed.  Complete Fixed Asset Schedule needs to be given for two years. (Incase of regrouping it has to be done even in previous year)  Capital advances should be shown under loan & advances given, not in CWIP Fixed Assets Tangible Assets Intangible Assets Capital Work-In Progress Intangible Assets under Development Key Highlights (Balance sheet):

19 Tangible Assets-Classification Land Building Plant & Equipment Furniture & Fixtures Vehicles Office Equipments Others (Specify Nature) Note: Assets under lease shall be separately specified for each class of Asset. Intangible Assets-Classification Goodwill Brands/Trademarks Computer Software Mastheads & Publishing Titles Mining Rights Copyrights & Patents and other intellectual property rights, services and operating rights Recipes, Formulae, Models, Designs and Prototypes Licenses & Franchise Others (Specify Nature) Key Highlights (Balance sheet):

20 Trade Receivables:  “Sundry Debtors” has been replaced by “Trade Receivables” which is defined as follows:  A receivable shall be classified as a ‘Trade Receivable’ if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. Hence amounts due on account of other contractual obligations (i.e. Insurance claim receivable, contractual reimbursement, rent receivable, etc.), which were earlier included in the sundry debtors, can no longer be included in the trade receivables.  Trade receivables outstanding for a period exceeding six months from the date they are due for payment has to be shown separately.  Debtors backed by deposits are to be treated as Secured and backed by Letter of Credit / Guarantees are treated as unsecured. Key Highlights (Balance sheet):

21 Loans and Advances:  Anything which has been paid and receivable in form of cash/kind (to be adjusted against future services/liabilities) to be grouped under loans & advances.  Capital Advances: New category and same will not shown under Capital WIP. Classified as Non current.  Perpetual Security Deposit: (Security Deposits for electricity, telephone etc.) This should be considered as non-current until and unless it is identified to be receivable in next 12 months/ Operating Cycle.  Loan & Advances to related party (earlier it was “to subsidiary companies”)  Prepaid expenses.  Rental and Lease Deposit. Key Highlights (Balance sheet):

22 Loans and Advances: (Contd..)  TDS should be shown separately in the schedule.  Regarding additional disclosure as required under clause 32 of listing agreement only Loans and Advance in nature of Loans need to be disclosed and not the normal advances.  Present requirements regarding sub-classification as secured or un-secured, considered good or doubtful debts continue in the revised schedule also.  Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately  Presentation for MAT should be as per guidance note issued by ICAI.  “Capital advances” are specifically required to be presented separately under the head “Loans & advances” rather than including elsewhere. Key Highlights (Balance sheet):

23 Other Current Assets / Other Non- Current Assets:  This is an all-inclusive heading, which incorporates Current / Non-Current assets that do not fit into any other asset categories. For e.g.  Unamortized premium on forward contracts  Deferred Government Grants receivable  Unbilled Revenue.  Interest Accrued on Loans and Advances  Reimbursement receivable  Rent income receivable  Long term Trade Receivable(on the deferred credit terms).  Insurance claim receivable  Interest on debtors  Amount Receivable against sale of fixed assets  Bank Deposits more than 12 months to be classified under non-current assets. Key Highlights (Balance sheet):

24 Cash and Bank Balances:  Cash & Bank Balance to be divided in 3 category 1.Cash & Cash Equivalent : Cash, Bank balance, cheque/DD and deposits with original maturity up to 3 months (as defined in AS-3 “ Cash Flow Statements”) 2.Other Bank Balance (Current) : Deposits with more than 3 months original maturity but less than 12 months maturity from BS date. 3.Other Bank Balance (Non-Current) : Deposits with more than 12 months maturity from BS date  Bank Deposits more than 12 months to be classified under non-current assets.  Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. Key Highlights (Balance sheet):

25 Cash and Bank Balances: (Contd..)  Bank balance/Deposit held as margin money or security against the borrowings or guarantee or other commitment should be disclosed separately  Accounting of Book OD : Book OD to be netted off with the FD balance related to same bank account appearing in books on account of Swap in facility.  Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. Key Highlights (Balance sheet):

26 Inventories:  Goods-in-transit shall be disclosed under the relevant sub-head of inventories.  Stock in Trade (in respect of goods acquired for trading) needs to be disclosed separately.  Mode of valuation shall be stated. “ Inventory is valued lower of cost and net realizable value ”  Inventories shall be classified as: (a)Raw materials; (b)Work-in-progress; (c)Finished goods; (d)Stock-in-trade (in respect of goods acquired for trading); (e)Stores and spares; (f)Loose tools; (g)Others (specify nature). Key Highlights (Balance sheet):

27 Comparative Changes in Format of: Statement of Profit and Loss Note: (The Revised Schedule VI prescribes only the vertical format for presentation of Financial Statements. Thus, a company will now not have an option to use horizontal format for the presentation of Financial Statements as prescribed in Old Schedule VI.)

28 ParticularsSchedul es Detail Amount Amount Sales4.1 XXXX Opening Stock4.2 XXXX Purchases4.3 XXXX Direct Expenses4.4 XXXX Less: Closing Stock4.5(XXXX) XXXX Cost of Goods Sold(XXXX) Gross Profit: XXXX Add: Indirect Incomes4.6 XXXX Less: Provisions and Payments to Employees 4.7(XXXX) Less: Administrative Expense4.8(XXXX) Less: Selling & Distribution Expenses 4.9(XXXX) Less: Financial Expenses4.10(XXXX) Net Profit/(Loss) Before Depreciation and Tax [Balance C/F] XXXX Particulars Notes Current Year Previous Year I. Revenue from Operations4.1XXXX II. Other Income4.2XXXX III. Net Revenue from Operations: (I+II) XXXX IV. Expenses:XXXX Cost of materials consumed4.3XXXX Purchases of Stock-in-Trade4.4XXXX Changes in Inventories: Finished Goods Work-in-Progress Stock-in-Trade 4.5 XXXX Employee benefits expense4.6XXXX Finance costs4.7XXXX Depreciation & Amortization expense 4.8XXXX Other Expenses4.9XXXX Total ExpensesXXXX V. Profit before exceptional and extraordinary items and tax (III-IV) [Balance C/F] XXXX Old Schedule VI (Profit & Loss Account) New Revised Schedule VI (Statement of Profit & Loss)

29 Particulars Notes Current Year Previous Year V. Profit before exceptional and extraordinary items and tax (III-IV) [Balance C/F] XXXX VI. Exceptional Items4.10XXXX VII. Profit before extraordinary and prior period items and tax (V-VI) XXXX VIII. Extra ordinary Item4.11XXXX IX. Profit before Prior period Items and Tax (VII-VIII) XXXX X. Extraordinary Items4.12XXXX XI. Profit Before Tax (IX-X)XXXX XII. Tax Expense: (1) Current Tax (2) Deferred Tax 4.13XXXX XIII. Profit (Loss) for the period from continuing operations XXXX XIV. Profit/(Loss) from discontinuing Operations 4.14XXXX XV. Tax expense of discounting operations 4.15XXXX XVI. Profit/(Loss) from discounting operations (after tax) (XIV-XV) XXXX XVII. Profit (Loss) for the period (XIII+XVI) XXXX XVIII. Earning per Equity Share: (1) Basic (1) Diluted XXXX Particulars Detail Amount Amount Net Profit/(Loss) Before Depreciation and Tax [Balance B/F] XXXX Less: Depreciation3.2(XXXX) Net Profit/(Loss) Before TaxXXXX Less: Taxation – Current4.11(XXXX) Net Profit/(Loss) After TaxXXXX Profit & Loss Account B/F(Last year)4.12XXX/(XXX) Profit Available for AppropriationXXXX Less: Reserves Created in C.Y.4.13(XXXX) NET PROFIT/(LOSS) CARRIED TO BALANCE SHEET XXXX

30 Revenue from Operations:  Any item of income or expenditure which exceeds 1% of the revenue from operations or Rs. 1,00,000, whichever is higher needs to be disclosed separately.  Revenue from Operations is to be separately disclosed in the notes.  Sales of Product  Manufactured XXX  Traded XXX XXX  Sale of Services XXX  Other Operating Revenue XXX  Less : Excise Duty (XXX) Key Highlights (Statement of Profit & Loss):

31 Revenue from Operations:  Other Operating Revenue includes revenue arising from company’s operating activities, i.e. either its principal or ancillary revenue- generating activities but does not include revenue from sale of products and services.  Disclosure under broad heads  Sales of finished goods manufactured.  Sales of traded goods ( Only amount need to be disclosed product wise. It would not include export incentives) Key Highlights (Statement of Profit & Loss):

32 Other Income:  Non-operating income needs to be shown after netting off with any expenses directly attributable to such income.  Insurance claim received for the current year to be netted off under the respective head of expenses (eg.repair & maintenance) and for prior year to be shown under other income.  Provision written back for non recurring material nature more than one year old to be shown under other income and in all other case it has to be credited to respective expense account.  Following items need to be classified under other income  Profit on sale of fixed assets ( net)  Foreign Exchange Gain ( net)  Bad Debt written off recovered. Key Highlights (Statement of Profit & Loss):

33 Cost of Material Consumed:  Cost of Packing Material is classified under Cost of Material consumed  Cost of component consumed is separately disclosed  Disclosure under broad heads  Consumption of major items of Raw materials. Purchase of Stock in trade:  Purchase of finished goods.  Disclosure under broad heads  Goods purchased for trading Key Highlights (Statement of Profit & Loss):

34 Changes in inventory of Finished goods, WIP & Stock in trade:  Disclosure under broad heads.  Major items of opening and closing stock  Works in progress, works-in-progress under broad heads.  Closing stock under broad heads Employee Benefit Expenses:  Recruitment and Training Expenses should be grouped as follows :  Recruitment - Other Expenses  Training Exp - Staff Welfare Expenses  ESOP expenses need to be disclosed under Remuneration to Key Personnel disclosure. Key Highlights (Statement of Profit & Loss):

35 Other Expenses:  Separate disclosure need to be given for the following Consumption of Stores Consumption of Spares Other Selling Expenses –(to include expense only on account of sales promotion) Legal and Professional Fees : Payment to Auditors should be shown excluding Service tax and would be part of legal and profession charges Provisions for Doubtful advances Provision for Doubtful debts Bad debt Written off Printing and Stationery Consumable stores means items which are consumed in manufacturing or in any process become incorporated into other goods and lose their identity. For e.g. Lubrication Oils, fuel, chemicals etc.incorporatedidentity Key Highlights (Statement of Profit & Loss):

36 Other Expenses:  Separate disclosure need to be given for the following:- Travelling and Conveyance Communication Exp. Loss on sale of fixed assets Foreign exchange loss (net) – (other than on borrowings ) Premium amortized on forward cover Finance charges others (not related to borrowings) Donation u/s 80G (Donation to Jan Seva Trust would be clubbed under Miscellaneous expenses)  Research and Development for in house research will not be shown, and the expenses to be shown under respective heads. Contribution for Scientific research will be shown separately  Penalties levied under Income Tax should be classified under other expenses.  Wealth Tax to be grouped under Rates and taxes. Key Highlights (Statement of Profit & Loss):

37 Finance Cost: Other Borrowing Cost:  Misc. Bank Charges like, CMS Charges, Credit card charges Foreign Remittance charges, DD / TT Commission, Charges on issuance of Bank Guarantee, LC opening & confirmation charges, Bank Certification, OBC, Annual inspection fees, etc which are not related to borrowings needs to grouped under Other expenses.  Only charges pertaining to borrowing like commitment charges, loan processing charges, loan guarantee charges, loan facilitation charges, etc. will be part of Other Borrowing Cost. Charges related to Commercial Paper (for e.g. brokerage, Issuing & Paying Agent Fees (IPA), stamping charges etc.) also need to be shown as Other Borrowing Cost  Premium on Derivatives on borrowings to be shown under finance cost and others would shown under other expenses. Key Highlights (Statement of Profit & Loss):

38 Contingent Liabilities:  Contingent liabilities shall be classified as: (a) Claims against the company not acknowledged as debt. (b) Guarantees. (c) Other money for which the company is contingently liable.  For all contingent liability having value more than 10 lacs, a descriptive note should be disclosed separately.  In CARO [Companies (Auditor’s Report) Order, 2003] provisional interest need not be disclosed until unless demanded. Others/Disclosures:

39 Commitments:  Commitments shall be classified as: (a) Estimated amount of contracts remaining to be executed on capital account and not provided for; (b) Uncalled liability on shares and other investments partly paid (c) Other commitments (specify nature).  All commitments needs to be disclosed, earlier only capital commitment needs to be disclosed.  However will include only non-cancellable material contractual commitments (i.e. cancellation of which will result in a penalty disproportionate to the benefits involved) based on the professional judgment of the management. Others/Disclosures:

40 Related Party Disclosure:  Transaction with Joint Venture of the Holding Company is to be disclosed in RPT Statement (transactions with Subsidiary-I, Subsidiary-II and so on.)  Separate disclosure in RPT Statement:  Insurance Premium paid to Subsidiary Co. (e.g. Insurance subsidiary co.)  Payment on account of corporate connection  No disclosure required for the investment in the Birla Sunlife mutual funds. Remuneration to Key Personnel:  ESOP expenses to be disclosed Others/Disclosures:

41 Expenses included under other heads of expenses of Profit & Loss:  Details need to be provided under which head the same has been clubbed Expenditure incurred for in house Research & Development facilities:  Details need to be provided as a disclosure Provision as per AS 29 need to be disclosed:  Details need to be provided which should match with the financials. Others/Disclosures:

42 Value of Imports calculated on C.I.F:  The value of imports should be disclosed on a C.I.F basis. I. Raw materials; II. Components and spare parts; III. Capital goods;  The value of imports should also include goods which are in transit on the Balance Sheet date, provided significant risks and rewards of ownership in those goods have already passed to the purchasing company.  Import of packing material need to be disclosed separately Earnings in Foreign exchange classified under the following heads:  Export of goods calculated on F.O.B. basis;  Royalty, know-how, professional and consultation fees;  Interest and dividend;  Other income, indicating the nature thereof Others/Disclosures:

43 Retirement Benefits:  In addition to disclosure of contribution to Superannuation and ESI, following need to be shown separately Contribution to Government Employees Provident Fund Contribution to Government Employee Pension Fund Derivative disclosure:  Details of currency exposure which is not hedged need to provided in INR as well as in Foreign currency Additional disclosure for Cash-flow:  Details of unrealized (gain)/loss included in foreign Exchange gain loss need to be provided for current / non current assets or liabilities. Others/Disclosures:

44 Exceptional and Extra-ordinary Items:  Not defined in Revised Schedule VI  Para 12, 13 and 14 of AS-5 ‘Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies’, Exceptional items arise from ordinary activity and are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period.  Not defined in Revised Schedule VI  Para 4.2 of AS-5 ‘Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies’, - Extra ordinary items are those that arise other than from ordinary activity of the Company and hence are not expected to be recurring. Others/Disclosures:

45 Expenditure in Foreign Currency:  The expenditure in foreign currency is to be shown on accrual basis, earlier it was showing on cash basis Segmental Disclosure:  In case of secondary segment disclosure, the detail of asset in India and outside India needs to be given. Donation and Depreciation expenses need to be shown under general expenses  Units share of “the Company” expenses are accounted under various heads of expenditure to which it pertains except for donation and depreciation. Others/Disclosures:

46 1. Section 77A: Where a company purchases its own shares out of free reserves, then a sum equal to the nominal value of the share so purchased shall be transferred to the capital redemption reserve account referred to in clause (d) of the proviso to sub-section (1) of section 80 and details of such transfer shall be disclosed in the balance-sheet. 2. Section 211: (3A) Every profit and loss account and Balance Sheet of the company shall comply with the Accounting Standards. (3B) Where the profit and loss account and the Balance Sheet of the company do not comply with the Accounting Standards, such companies shall disclose in its profit and loss account and balance sheet, the following, namely :- (a) the deviation from the Accounting Standards; (b) the reasons for such deviation; and (c) the financial effect, if any, arising due to such deviation. List of disclosures required under the Companies Act 1956 :

47 3. Section 293A: Every company shall disclose in its profit and loss account any amount or amounts contributed by it to any political party or for any political purpose to any person during the financial year to which that account relates, giving particulars of the total amount contributed and the name of the party or person to which or to whom such amount has been contributed. 4. Section 293B: 1) The Board of directors of any company or any person or authority exercising the powers of the Board of directors of a company, or of the company in general meeting, may, notwithstanding anything contained in sections 293 and 293A or any other Provision of this Act or in the memorandum, articles or any other instrument relating to the company, contribute such amount as it thinks fit to the National Defence Fund or any other Fund approved by the Central Government for the purpose of national defence. (2) Every company shall disclose in its profit and loss account the total amount or amounts contributed by it to the Fund referred to in sub-section (1) during the financial year to which the amount relates. List of disclosures required under the Companies Act 1956 : (Contd..)

48 Rest of the rules, regulations and bye laws must be followed as they are for private, public and producer companies applicable on them being listed and non-listed company falling in category of XBRL and for more clarification please refer:  MCA Taxonomy on XBRL 2012  Revised Schedule-VI (guidance note issued by ICAI)  Accounting Standards,  Listing Agreement,  SEBI: ICDR Guidelines,2009 and  Extensible Business Reporting Language rules, 2012 read with provisions of the Companies Act Reference:

49 THANK YOU. For More details: e: c: Log on to:


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