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TRANS HINDON CPE STUDY CIRCLE of circ of icai Saturday, MAY 12, 2012 SEMINAR ON NEW SCHEDULE VI TO THE COMPANIES ACT,1956 CA. Gopal Ji Agrawal B.COM LLB.

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Presentation on theme: "TRANS HINDON CPE STUDY CIRCLE of circ of icai Saturday, MAY 12, 2012 SEMINAR ON NEW SCHEDULE VI TO THE COMPANIES ACT,1956 CA. Gopal Ji Agrawal B.COM LLB."— Presentation transcript:

1 TRANS HINDON CPE STUDY CIRCLE of circ of icai Saturday, MAY 12, 2012 SEMINAR ON NEW SCHEDULE VI TO THE COMPANIES ACT,1956 CA. Gopal Ji Agrawal B.COM LLB DISA IFRS (ICAI) For any query, discussion or suggestion, please mail at TRANS HINDON CPE STUDY CIRCLE of circ of icai Saturday, MAY 12, 2012 SEMINAR ON NEW SCHEDULE VI TO THE COMPANIES ACT,1956 CA. Gopal Ji Agrawal B.COM LLB DISA IFRS (ICAI) For any query, discussion or suggestion, please mail at

2 MATTERS FOR DISCUSSION MATTERS FOR DISCUSSION BY- CA GOPAL JI AGRAWAL NEW SCHEDULE VI TO THE COMPANIES ACT Background of old schedule (a farewell note) 2. Background for Introduction of New Schedule VI 3. Discussion on various general notes & definitions in New Schedule VI 4. Old Disclosure dispensed in New Schedule VI 5. Detailed head wise discussion on New Schedule VI- Balance Sheet 5. Detailed head wise discussion on New Schedule VI- Profit and Loss 6. Summary of Discussion

3 History of old Schedule VI or A farewell note for it? History of old Schedule VI or A farewell note for it? BY- CA GOPAL JI AGRAWAL Old Schedule VI was divided in how many parts? Four Parts: Part I – Balance Sheet (In Horizontal and vertical) Part II – Requirements for profit and loss account Part III – Interpretation Part IV – Balance sheet Abstract and Company general business profile Four Parts: Part I – Balance Sheet (In Horizontal and vertical) Part II – Requirements for profit and loss account Part III – Interpretation Part IV – Balance sheet Abstract and Company general business profile

4 History of old Schedule VI or A farewell note for it? History of old Schedule VI or A farewell note for it? BY- CA GOPAL JI AGRAWAL Whether Old schedule VI was ever amended? If yes, how many times? Interesting it was amended and modified 50 times in 50 years by way of 15 notifications and amendments in Companies (Amendment Acts)

5 History of old Schedule VI or A farewell note for it? History of old Schedule VI or A farewell note for it? BY- CA GOPAL JI AGRAWAL Whether the exemptions given under Old Schedule VI will apply to New Schedule VI? No. Exemptions were given like disclosure of details in respect of public financial institution and quantitative details in respect of certain companies Whether Balance Sheet abstract and company general business profile will be applicable in new regime. No.

6 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL When New Schedule VI was notified ? Vide Notification Number 447 (E) dated 28TH February 2011 with its applicability for the financial year commencing on or after April 1, Why had we not applied the new Schedule VI for financial year commencing on or after April 1, 2010? As the original notification 447 (E) was amended vide notification 653(E) dated 30th March 2011 and the date was postponed for a year time.

7 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL Whether New Schedule VI is applicable for interim financial statements during FY ? Per AS-25, Interim Financial Reporting, in case of condensed financial statements, the old schedule VI would apply while in case of complete set of interim financial statements, the NEW would apply. Whether New Schedule VI is applicable for Half Yearly result to be published by listed companies under clause 41 of the listing agreement Till SEBI prescribe the new format, the old Schedule would be applied for half yearly result. Since no format is prescribed for Annual Results hence New Schedule would be applied.

8 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL Whether New Schedule VI is applicable under SEBI (Issue of capital and disclosure requirements) [Regulation 2009, commonly known as ICDR Regulations? Per MCA Circular number 62/2011 dated 5th September, 2011, the FSs for the limited purpose of IPO/FPO during the FY i.e. till 31st March 2012, the company may make the FSs in Old Schedule VI.

9 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL What is the legislative indent or motto behind notifying New Schedule VI ? Just to demonstrate the intention to converge itself into IFRS environment as GOI could not meet out the G20 Commitment. Whether New Schedule VI is applicable only for the companies which are adopting IFRS ? No, MCA had clarified that the new schedule VI as nothing to do with IFRS.

10 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL Whether New Schedule VI would be applied to SMC or Non SMC or both? Earlier two drafts were issued but finally a single schedule was notified that is applicable for SMC as well as Non SMC companies. What is the fundamental change in New Schedule VI? Classification of all assets and liabilities in two category: (1) Current (2) Non current Moving towards IFRS regime thus giving flavor of it Classification of all assets and liabilities in two category: (1) Current (2) Non current Moving towards IFRS regime thus giving flavor of it

11 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL How many parts are there in New Schedule VI Two parts only in place of four Part I – Form of Balance Sheet (only vertical) Part II – Form of Statement of Profit and Loss Two parts only in place of four Part I – Form of Balance Sheet (only vertical) Part II – Form of Statement of Profit and Loss Whether New Schedule VI is applicable for all companies or is there any exemption or non applicability? It is not applicable for Banking & Insurance. Per Proviso to sec. 211, not applicable to Electricity generation and supply Company but since no form has been prescribed under Electricity Act 2003, hence the new schedule would apply.

12 Discussion on New Schedule VI BY- CA GOPAL JI AGRAWAL Are the financial statements of the companies are only governed by the requirements of Schedule VI? The financial statements are governed by: The Companies Act, 1956 –Schedule VI The Banking Regulation Act, 1949 –Schedule III Insurance Regulatory and Dev. Authority Act 1999 vide Regulations 2002 Notified Accounting Standards Engagement Standards Listing Agreement (like clause 32) SEBI Guidelines Securities Contract Regulation Act, 1957 NBFC Auditors Report (Reserve Bank ) directions 2008 ICAI guidance notes including Revised Schedule VI Other Statutes, rules and regulations like MSME Act The financial statements are governed by: The Companies Act, 1956 –Schedule VI The Banking Regulation Act, 1949 –Schedule III Insurance Regulatory and Dev. Authority Act 1999 vide Regulations 2002 Notified Accounting Standards Engagement Standards Listing Agreement (like clause 32) SEBI Guidelines Securities Contract Regulation Act, 1957 NBFC Auditors Report (Reserve Bank ) directions 2008 ICAI guidance notes including Revised Schedule VI Other Statutes, rules and regulations like MSME Act

13 New Schedule VI – Old Disclosures dispensed with BY- CA GOPAL JI AGRAWAL No need to make Profit and Loss Account No need to make Profit and Loss Account No need to make schedules to the financial statements No need of classification of Sundry debtors and sundry creditors Lengthy quantitative information with regard to: o Licensed, Installed capacity and production o Purchases, sales, stocks, raw material consumption Lengthy quantitative information with regard to: o Licensed, Installed capacity and production o Purchases, sales, stocks, raw material consumption

14 New Schedule VI – Disclosures dispensed with BY- CA GOPAL JI AGRAWAL Investment break up (company wise) in respect of various securities purchased and sold during the year Investment break up (company wise) in respect of various securities purchased and sold during the year Computation of Net Profit during the year u/s 349 for managerial remuneration Disclosure in respect of companies under the same management as defined u/s 370(IB) as well as maximum balance during the year with regard to: o Loans and advances o Sundry Debtors Disclosure in respect of companies under the same management as defined u/s 370(IB) as well as maximum balance during the year with regard to: o Loans and advances o Sundry Debtors

15 New Schedule VI – Disclosures dispensed with in case of B/Sheet BY- CA GOPAL JI AGRAWAL Break Up of bank balances with scheduled and non scheduled banks o With name of such banks and maximum balance during the year with non scheduled banks o Interest of directors in such non scheduled banks Break Up of bank balances with scheduled and non scheduled banks o With name of such banks and maximum balance during the year with non scheduled banks o Interest of directors in such non scheduled banks Disclosure of Utilization of securities premium Account In case of WIP, the amt. for which (such works have been completed) at start and end of accounting period.

16 New Schedule VI – Disclosures dispensed with Profit & Loss BY- CA GOPAL JI AGRAWAL Disclosure of commission paid to sole selling agent u/s 294, brokerage and non trade discount Classification of Income from trade and other investments Nature of interest income is no more required In case of no provision of depreciation, the detailed disclosure with reason and amount is not required as per schedule VI

17 New Schedule VI – Disclosures dispensed with Profit & Loss BY- CA GOPAL JI AGRAWAL Disclosure of TDS in respect of interest and other income from investment Disclosure regarding payment to managing directors or managers like managerial remuneration, commission and other allowances, perquisites or benefits, pension, gratuity, compensation for loss of office or on retirement etc. Bifurcation of interest expense on term and other loan is not required.

18 Major Change in Financial Reporting BY- CA GOPAL JI AGRAWAL For financial periods beginning on or after April 1, 2011, Auditors Report will not be issued? For financial periods beginning on or after April 1, 2011, Independent Auditors Report will be issued (SA-700, 705, 706) For financial periods beginning on or after April 1, 2011, Independent Auditors Report will be issued (SA-700, 705, 706)

19 Paragraphs in Independent Auditors report BY- CA GOPAL JI AGRAWAL (a)Title (b)Addressee (c)Introductory paragraph (d)Managements responsibility paragraph (e)Auditors responsibility paragraph (f)Auditors opinion paragraph (g)Other responsibilities paragraph Matter Paragraph Other Matter Paragraph (h)Signature (i)Date of the auditors report (j)Place of signature (a)Title (b)Addressee (c)Introductory paragraph (d)Managements responsibility paragraph (e)Auditors responsibility paragraph (f)Auditors opinion paragraph (g)Other responsibilities paragraph Matter Paragraph Other Matter Paragraph (h)Signature (i)Date of the auditors report (j)Place of signature

20 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 1.Where compliance with the requirements of the Act including Accounting Standards as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head/sub-head or any changes inter-se, in the financial statements or statements forming part thereof, the same shall be made and the requirements of the Schedule VI shall stand modified accordingly Exp. Under the sub head cash and cash equivalent, various items have been sub classified which are contrary to the provisions of AS-3 Cash Flow Statement.

21 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (d) (i) Cash and cash equivalents: shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (dt. 31/03/12 but recd in april) (c) Cash on hand; (d) Others (specify nature). (ii)Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (iii)Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iv)Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. (v)Bank deposits with more than 12 months maturity shall be disclosed separately. 2 (d) (i) Cash and cash equivalents: shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (dt. 31/03/12 but recd in april) (c) Cash on hand; (d) Others (specify nature). (ii)Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (iii)Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iv)Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. (v)Bank deposits with more than 12 months maturity shall be disclosed separately.

22 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL Per AS-3, Cash means cash and demand deposits with banks. Cash equivalent means short term highly liquid investments that are readily convertible into known amount of cash which are subject to insignificant risk of changes in value. i.e. Investment having three months maturity or less from the date of acquisition. Therefore the caption will be rectified as (a) Cash & cash equivalent and (b) other bank balances (AS-3(42) Another conflict is reg. disclosure of revenue from operations from sale of products is to be shown under Notes which is again contrary to AS-9- Revenue recognition. Hence conflict is to be removed. (AS-9(10-Explanation).

23 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from (a)sale of products; [Gross turnover less ED) (b)sale of services; (c) other operating revenues; (different from other income) Less: (d) Excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from (a) Interest; and (b) Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable. (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from (a)sale of products; [Gross turnover less ED) (b)sale of services; (c) other operating revenues; (different from other income) Less: (d) Excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from (a) Interest; and (b) Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable.

24 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL The old schedule required for provision for proposed dividend but new schedule specified that proposed dividend to be disclosed in Notes. Since AS-4 still overrides the schedule VI hence the provision will have to be made for the proposed dividend till AS-4 is amended if the dividend is proposed before approval of accounts. (AS-4(14). Separate disclosure is required for dividend from subsidiary company but the provision of old schedule VI to recognise dividend income by parent company for subsidiary co, even it is declared after BS date is to be recognised if period is covered under BS but since this old provision deleted hence AS-9 would recognise if the same is declared on or before the BS date.

25 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL Per AS -24 on Discontinuing Operations, Profit/loss before tax is arrived at by deducting the expenses from revenue on the face of Profit & Loss, both being aggregate of amounts relating to both continuing and discontinuing operations. Profit (loss) is then analysised between TWO and income tax on each is shown as deduction and net profit(loss) is stated on FACE. The break up of revenue and expenses of each constituent is disclosed in the notes. Per NS VI, it asks for the revenue and expenses of the continuing operations only on the face and net profit (loss) from discontinuing opertations.?????? Per AS -24 on Discontinuing Operations, Profit/loss before tax is arrived at by deducting the expenses from revenue on the face of Profit & Loss, both being aggregate of amounts relating to both continuing and discontinuing operations. Profit (loss) is then analysised between TWO and income tax on each is shown as deduction and net profit(loss) is stated on FACE. The break up of revenue and expenses of each constituent is disclosed in the notes. Per NS VI, it asks for the revenue and expenses of the continuing operations only on the face and net profit (loss) from discontinuing opertations.??????

26 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL Exception: Per explanation to para 30 of AS-22 Deferred tax assets (net of the deferred tax liabilities, if any, in accordance with paragraph 29) is disclosed on the face of the balance sheet separately after the head Investments and deferred tax liabilities (net of the deferred tax assets, if any, in accordance with paragraph 29) is disclosed on the face of the balance sheet separately after the head Unsecured Loans.

27 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL Exception: Per AS-5, Exceptional items are either disclosed as a separate line items on the FACE or explained by way of notes. While as per NS-VI, it requires the disclosure on the FACE.? NS- Not discussed Prior period items-AS5(15) Exceptional items are either disclosed as a separate line items on the FACE or explained by way of notes. While as per NS-VI, it requires the disclosure on the FACE.? NS- Not discussed Prior period items-AS5(15)

28 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 2. The disclosure requirements specified in Part I and Part II of this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements.Similarly, all other disclosures as required by the Companies Act shall be made in the notes to accounts in addition to the requirements set out in this Schedule. 2. The disclosure requirements specified in Part I and Part II of this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements.Similarly, all other disclosures as required by the Companies Act shall be made in the notes to accounts in addition to the requirements set out in this Schedule.

29 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 3. Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required (a) narrative descriptions or disaggregations of items recognized in those statements and (b) information about items that do not qualify for recognition in those statements. Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts. In preparing the Financial Statements including the notes to accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation. 3. Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required (a) narrative descriptions or disaggregations of items recognized in those statements and (b) information about items that do not qualify for recognition in those statements. Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts. In preparing the Financial Statements including the notes to accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation.

30 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 500 CR. AND ABOVE nearest hundreds, thousands, lakhs, millions or crores or decimal thereof Same as above 100 CR. AND ABOVE BUT LESS THAN 500 CR. nearest hundreds, thousands, lakhs or millions or decimal thereof nearest, lakhs, millions or crores, more or decimals thereof. 4. R/OFF - FIGURES -FINANCIAL STATEMENTS [BASE TURNOVER ] LESS THAN 100 CR. OLD nearest hundreds or thousands or decimal thereof NEW nearest hundreds thousands, lakhs or millions, or decimals thereof

31 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 5. Except in the case of the first Financial Statements laid before the Company (after its incorporation)the corresponding amounts(comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including notes shall also be given. 6. For the purpose of this Schedule, the terms used herein shall be as per the applicable Accounting Standards. Examples: Associates, related parties etc.

32 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL Notes: This part of Schedule sets out the minimum requirements for disclosure on the face of the Balance Sheet, and the Statement of Profit and Loss (hereinafter referred to as Financial Statements for the purpose of this Schedule) and Notes. Line items, sub-line items and sub- totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the companys financial position or performance or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act or under the Accounting Standards. Notes: This part of Schedule sets out the minimum requirements for disclosure on the face of the Balance Sheet, and the Statement of Profit and Loss (hereinafter referred to as Financial Statements for the purpose of this Schedule) and Notes. Line items, sub-line items and sub- totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the companys financial position or performance or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act or under the Accounting Standards.

33 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL The application of the above principle is a matter of professional judgment. Examples: Earning before interest, tax, depreciation and amortization [EBITA] is often an important measure of financial performance of the company relevant for various users Associates, related parties etc. Policy should be followed consistently and disclosed for such additional line items. Example: Disclosure of provisions for non performing assets by NBFC as required by relevant RBI prudential norms. The application of the above principle is a matter of professional judgment. Examples: Earning before interest, tax, depreciation and amortization [EBITA] is often an important measure of financial performance of the company relevant for various users Associates, related parties etc. Policy should be followed consistently and disclosed for such additional line items. Example: Disclosure of provisions for non performing assets by NBFC as required by relevant RBI prudential norms.

34 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET 1.An asset shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reporting date; or (d) 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. GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET 1.An asset shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reporting date; or (d) 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.

35 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 2.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.

36 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL A company has excess finished goods inventory that is not expected to realize within the companys normal operating cycle of 15 months. Whether it would be current or non current assets? A debtor of the company could not pay within its credit period of 3 months as well as within operating cycle of the company of 9 months but is expected to be realized within twelve months from the reporting date. Whether is would be classified as current or non current?

37 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL Can a company have different operating cycle? A company is required to disclose Investments into Current and Long term Investments as per AS-13. AS-13 states the investment as long term if it is not intended to be held for less than 12 months from the date of investment. The company makes an investment on 30 th June 2011 with the intention to hold it for 18 months hence disclose it as long term investment on 31 st March 2012 but as criteria of current and non current, it is expected to be realised by 31 st December What will be classification? WHETHER AS OR SCHEDULE VI WOULD PREVAIL? A company is required to disclose Investments into Current and Long term Investments as per AS-13. AS-13 states the investment as long term if it is not intended to be held for less than 12 months from the date of investment. The company makes an investment on 30 th June 2011 with the intention to hold it for 18 months hence disclose it as long term investment on 31 st March 2012 but as criteria of current and non current, it is expected to be realised by 31 st December What will be classification? WHETHER AS OR SCHEDULE VI WOULD PREVAIL?

38 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 3. A liability shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the companys normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within twelve months after the reporting date; or (d) 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. 3. A liability shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the companys normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within twelve months after the reporting date; or (d) 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.

39 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL A term loan agreement that impose a condition of furnishing quarterly financial information, the breach of which entails the bankers to call for the loan. If a company fails to furnish the QIR before the year end and the default is continued till the approval of FSs, what would be position? Take a case of accumulated leaves of employee, the same is measured as other long term employee benefits as per AS-15 but the employer has not unconditional right to defer the encashment of such leaves, how it would be classified? The debentures are issued with the option to the debenture holders for conversion into equity shares between July 2012 to December 2012, what would be the treatment of such debentures liability as at March 31, 2012?

40 Discussion on New Schedule VI- ( A detailed verse ) BY- CA GOPAL JI AGRAWAL 4.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. 5.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. 4.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. 5.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.

41 Presentation format of Balance Sheet under revised Schedule – VI BY- CA GOPAL JI AGRAWAL 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 (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 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 (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

42 Presentation format of Balance Sheet under revised Schedule – VI BY- CA GOPAL JI AGRAWAL 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) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets Total 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) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets Total

43 Presentation format of Statement of Profit and Loss BY- CA GOPAL JI AGRAWAL I. Revenue from operations II. Other income III. Total Revenue (I + II) IV. Expenses: Cost of materials consumed Purchases of Stock-in-Trade Changes in inventories of finished goods WIP & Stock-in-Trade Employee benefits expense Finance costs Depreciation and amortization expense Other expenses Total expenses I. Revenue from operations II. Other income III. Total Revenue (I + II) IV. Expenses: Cost of materials consumed Purchases of Stock-in-Trade Changes in inventories of finished goods WIP & Stock-in-Trade Employee benefits expense Finance costs Depreciation and amortization expense Other expenses Total expenses

44 Presentation format of Statement of Profit and Loss BY- CA GOPAL JI AGRAWAL V. Profit before excep. and extraordinary items and tax (III – IV) VI. Exceptional items VII. Profit before extraordinary items and tax (V – VI) VIII. Extraordinary Items IX. Profit before tax (VII – VIII) X. Tax expenses: (1) Current tax (2) Deferred tax XI. Profit/(Loss) for the period from continuing operat. (VII –VIII) XII. Profit/(Loss) from discontinuing operations XIII. Tax expense of discontinuing operations XIV. Profit/(loss) from Discontinuing oper (after tax) (XII – XIII) XV. Profit (Loss) for the period (XI + XIV) XVI. Earnings per equity share: (1) Basic (2) Diluted (Per AS-20-EPS- it is not applicable for SMC) V. Profit before excep. and extraordinary items and tax (III – IV) VI. Exceptional items VII. Profit before extraordinary items and tax (V – VI) VIII. Extraordinary Items IX. Profit before tax (VII – VIII) X. Tax expenses: (1) Current tax (2) Deferred tax XI. Profit/(Loss) for the period from continuing operat. (VII –VIII) XII. Profit/(Loss) from discontinuing operations XIII. Tax expense of discontinuing operations XIV. Profit/(loss) from Discontinuing oper (after tax) (XII – XIII) XV. Profit (Loss) for the period (XI + XIV) XVI. Earnings per equity share: (1) Basic (2) Diluted (Per AS-20-EPS- it is not applicable for SMC)

45 New Schedule VI- Shareholders funds BY- CA GOPAL JI AGRAWAL Classification as: (a)Share Capital (b)Reserves and Surplus (c)Money received against share warrants AS-20- SW means financial instruments giving right to acquire equity shares. Classification as: (a)Share Capital (b)Reserves and Surplus (c)Money received against share warrants AS-20- SW means financial instruments giving right to acquire equity shares. Further sub-classification as: Each class of share capital (different classes of pref. shares to be treated separately) 1. Authorized 2. Issued 3. Subscribed & fully paid up 4.Subscribed & not fully paid up 5.Par value per share 6. Calls unpaid 7. By Directors 8. By Officers [others] 9. Forfeited shares (amount originally paid-up) Further sub-classification as: Each class of share capital (different classes of pref. shares to be treated separately) 1. Authorized 2. Issued 3. Subscribed & fully paid up 4.Subscribed & not fully paid up 5.Par value per share 6. Calls unpaid 7. By Directors 8. By Officers [others] 9. Forfeited shares (amount originally paid-up)

46 New Schedule VI- Shareholders funds BY- CA GOPAL JI AGRAWAL If preference shares are to be redeemed during the next 12 months where it would be classified or if it is already due for payment where it would be classified? The number of shares issued, subscribed and fully paid, reconciliation etc. are to be disclosed but as per GN amount should also be reported. Previous year reconciliation is also to be given. The number of shares issued, subscribed and fully paid, reconciliation etc. are to be disclosed but as per GN amount should also be reported. Previous year reconciliation is also to be given.

47 New Schedule VI- Shareholders funds BY- CA GOPAL JI AGRAWAL d) A reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period. e)The rights, preferences and restrictions attaching to each class of shares including restrictions of the distributions of dividends and the repayment of capital. f) shares in respect of each class in the company held by its holding company or its ultimate holding company, subsidiary of holding company, subsidiary of its ultimate holding company, associates of the holding company or associates of the ultimate holding company in aggregate;

48 New Schedule VI- Shareholders funds BY- CA GOPAL JI AGRAWAL g) shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held; h) Shares reserved for issue under options and contracts/commitments for sale of shares /disinvestment, including the terms and amounts. j) Terms of any securities [Preference Shares] convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date. At what date, the 5% holding will be seen?

49 New Schedule VI- Shareholders funds BY- CA GOPAL JI AGRAWAL i) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared: Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. Aggregate number and class of shares allotted as fully paid up by way of bonus shares. [specifying the source from which such bonus shares are issued e.g., Capitalization of profits or Reserves or from Share Premium Account] Aggregate number and class of shares bought back. i) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared: Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. Aggregate number and class of shares allotted as fully paid up by way of bonus shares. [specifying the source from which such bonus shares are issued e.g., Capitalization of profits or Reserves or from Share Premium Account] Aggregate number and class of shares bought back.

50 New Schedule VI- Shareholders funds BY- CA GOPAL JI AGRAWAL k) Calls unpaid (showing aggregate value of calls unpaid by directors and officers [others]) l) Forfeited shares (Amount originally paid-up). [Any Capital profit on issue of Forfeited shares should be transferred to capital Reserves.] 1.If subscription amount is adjusted against a bonafide debt payable in money, whether it would be meant without cash? 2. Conversion of loan into shares in the event of default? 3.Is year wise break up for last year required? 1.If subscription amount is adjusted against a bonafide debt payable in money, whether it would be meant without cash? 2. Conversion of loan into shares in the event of default? 3.Is year wise break up for last year required?

51 New Schedule VI- Reserves & Surplus BY- CA GOPAL JI AGRAWAL (a)Capital Reserves ; (b)Capital Redemption Reserve; (c)Securities Premium Reserve; [Share Premium Account] (d)Debenture Redemption Reserve; (e)Revaluation Reserve; (f)Share Options Outstanding Account; (g)Other Reserves – (specify the nature and purpose of each reserve and the amount in respect thereof); eg. Investment (h)Surplus i.e. balance in Statement of Profit & Loss disclosing allocations and appropriations such as dividend, bonus shares and transfer to/from reserves etc. (Additions and deductions since last balance sheet to be shown under each of the specified heads) [Sinking fund] (a)Capital Reserves ; (b)Capital Redemption Reserve; (c)Securities Premium Reserve; [Share Premium Account] (d)Debenture Redemption Reserve; (e)Revaluation Reserve; (f)Share Options Outstanding Account; (g)Other Reserves – (specify the nature and purpose of each reserve and the amount in respect thereof); eg. Investment (h)Surplus i.e. balance in Statement of Profit & Loss disclosing allocations and appropriations such as dividend, bonus shares and transfer to/from reserves etc. (Additions and deductions since last balance sheet to be shown under each of the specified heads) [Sinking fund]

52 New Schedule VI- Reserves & Surplus BY- CA GOPAL JI AGRAWAL (ii) A reserve specifically represented by earmarked investments shall be termed as a fund. (iii) Debit balance of statement of profit and loss shall be shown as a negative figure under the head Surplus. Similarly, 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. [Debit balance in the Profit & Loss Account shall be shown as a deduction from the uncommitted reserves, if any. If debit balance of Profit & Loss is in excess of uncommitted reserves, the same shall be shown under ASSETS as Profit & Loss.] (ii) A reserve specifically represented by earmarked investments shall be termed as a fund. (iii) Debit balance of statement of profit and loss shall be shown as a negative figure under the head Surplus. Similarly, 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. [Debit balance in the Profit & Loss Account shall be shown as a deduction from the uncommitted reserves, if any. If debit balance of Profit & Loss is in excess of uncommitted reserves, the same shall be shown under ASSETS as Profit & Loss.]

53 New Schedule VI- Reserves & Surplus BY- CA GOPAL JI AGRAWAL When capital redemption reserve is required to be created? Per Section 80, where the redemption of the preference shares is made out of profits. Per section 77AA, of the buyback is made out of free reserves. Per Section 80, where the redemption of the preference shares is made out of profits. Per section 77AA, of the buyback is made out of free reserves. Per Section 117C the debenture redemption reserve is created for redemption of debentures. Once the debentures are paid, what is the treatment of such reserve? It is transferred to General reserve. Reminder: Securities premium account instead of reserve. It is transferred to General reserve. Reminder: Securities premium account instead of reserve.

54 New Schedule VI- Share Application Money (SAM) BY- CA GOPAL JI AGRAWAL The following disclosures required in both cases: 1.SAM received for allotment of securities and due for refund with interest thereon. 2.The number of shares proposed to be issued, premium, if any and period before which share shall be allotted. 3.Whether company has sufficient authorized capital 4. Period for which SAM is pending along-with reason 5. Share application money refundable (in excess of subscription received or minimum subscription not received) shall be shown under other current liabilities. The following disclosures required in both cases: 1.SAM received for allotment of securities and due for refund with interest thereon. 2.The number of shares proposed to be issued, premium, if any and period before which share shall be allotted. 3.Whether company has sufficient authorized capital 4. Period for which SAM is pending along-with reason 5. Share application money refundable (in excess of subscription received or minimum subscription not received) shall be shown under other current liabilities. If the share application money is more than A/capital, what is to be done?

55 New Schedule VI- Non Current Liabilities BY- CA GOPAL JI AGRAWAL 3 (a)Long-Term Borrowings i) Long-term borrowings shall be classified as: (a) Bonds/debentures (b) Term loans from banks from other parties (c) Deferred payment liabilities (like sales tax schemes) (d) Deposits.[Fixed Deposits] (e) Loans and advances from related parties.[Subsidiaries] (f) Long term maturities of finance lease obligations (g) Other loans and advances (specify nature). 3 (a)Long-Term Borrowings i) Long-term borrowings shall be classified as: (a) Bonds/debentures (b) Term loans from banks from other parties (c) Deferred payment liabilities (like sales tax schemes) (d) Deposits.[Fixed Deposits] (e) Loans and advances from related parties.[Subsidiaries] (f) Long term maturities of finance lease obligations (g) Other loans and advances (specify nature).

56 New Schedule VI- Non Current Liabilities BY- CA GOPAL JI AGRAWAL ii) Borrowings [Loans] shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. The security given other than by co. would not be treated as secured. GN iii) Where loans have been guaranteed by directors or others [Manager], the aggregate amount of such loans under each head shall be disclosed. v) Particulars of any redeemed bonds/ debentures which the company has power to reissue shall be disclosed. vi) Terms of repayment of term loans and other loans shall be stated.

57 New Schedule VI- Non Current Liabilities BY- CA GOPAL JI AGRAWAL 3 (a)Long-Term Borrowings iv) Bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due. 3 (a)Long-Term Borrowings iv) Bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due. Meaning of repayment terms- period of maturity, number and amount of installment, interest rate and other major terms. GN

58 New Schedule VI- Non Current Liabilities BY- CA GOPAL JI AGRAWAL 3 (a)Long-Term Borrowings vii) Period and amount of continuing default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. 3 (a)Long-Term Borrowings vii) Period and amount of continuing default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. 3 (b) Deferred Tax Liabilities Loan means all items under borrowings like bonds, debentures, deposits, deferred payment liabilities, finance lease obligations. GN

59 New Schedule VI- Non Current Liabilities BY- CA GOPAL JI AGRAWAL 3 (c) Other Long-Term Liabilities Other Long term Liabilities shall be classified as: (a)Trade payables (b)Others 3 (c) Other Long-Term Liabilities Other Long term Liabilities shall be classified as: (a)Trade payables (b)Others 3(d)Long-term provisions- The amounts shall be classified as: (a)Provision for employee benefits. (b)Others (specify nature). [a) Provident fund scheme (b) insurance, pension and other similar staff benefit scheme c)provision for taxation d) Proposed dividend e) for contingencies] 3(d)Long-term provisions- The amounts shall be classified as: (a)Provision for employee benefits. (b)Others (specify nature). [a) Provident fund scheme (b) insurance, pension and other similar staff benefit scheme c)provision for taxation d) Proposed dividend e) for contingencies]

60 New Schedule VI- Current Liabilities BY- CA GOPAL JI AGRAWAL 4 (a) Short-term borrowings (i)Short-term borrowings shall be classified as: (a) Loans repayable on demand from banks. from other parties. (b) Loans and advances from related parties. (c) Deposits. (d) Other loans and advances (specify nature) 4 (a) Short-term borrowings (i)Short-term borrowings shall be classified as: (a) Loans repayable on demand from banks. from other parties. (b) Loans and advances from related parties. (c) Deposits. (d) Other loans and advances (specify nature) ii) Borrowings [Loans] shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.

61 New Schedule VI- Current Liabilities BY- CA GOPAL JI AGRAWAL 4(a) Short Term Borrowings iii) Where loans have been guaranteed by directors or others [Manager], the aggregate amount of such loans under each head shall be disclosed. 4(a) Short Term Borrowings iii) Where loans have been guaranteed by directors or others [Manager], the aggregate amount of such loans under each head shall be disclosed. iv) Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. 4 (b) Trade Payables

62 New Schedule VI- Current Liabilities BY- CA GOPAL JI AGRAWAL 4 (c) Other current liabilities- shall be classified as: (a)Current maturities of long-term debt; (b)Current maturities of finance lease obligations; (c) Interest accrued but not due on borrowings; (d) Interest accrued and due on borrowings; (e) Income received in advance; (f) Unpaid dividends (g) Share Application money refundable with interest (h) Unpaid matured deposits and interest accrued thereon (i)Unpaid matured debentures and interest accrued thereon (j)Other payables (specify nature); 4 (c) Other current liabilities- shall be classified as: (a)Current maturities of long-term debt; (b)Current maturities of finance lease obligations; (c) Interest accrued but not due on borrowings; (d) Interest accrued and due on borrowings; (e) Income received in advance; (f) Unpaid dividends (g) Share Application money refundable with interest (h) Unpaid matured deposits and interest accrued thereon (i)Unpaid matured debentures and interest accrued thereon (j)Other payables (specify nature);

63 New Schedule VI- Current Liabilities & Provisions BY- CA GOPAL JI AGRAWAL 4 (d) Short-term provisions shall be classified as: (a) Provision for employee benefits. (b) Others (specify nature). 4 (d) Short-term provisions shall be classified as: (a) Provision for employee benefits. (b) Others (specify nature). The old schedule required for provision for proposed dividend but new schedule specified that proposed dividend to be disclosed in Notes. Since AS-4 still overrides the schedule VI hence the provision will have to be made for the proposed dividend till AS-4 is amended.

64 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (a) Fixed Assets (i)Tangible assets-Classification shall be given as: (a)Land. (b)Buildings. (c)Plant and Equipment. (d)Furniture and Fixtures. (e)Vehicles. (f)Office equipment. (g)Others (specify nature). [Railway sidings, development property and live stock, leasehold] ii)Assets under lease shall be separately stated for each class GN: Lesser –operating lease, lessee- finance lease. 1 (a) Fixed Assets (i)Tangible assets-Classification shall be given as: (a)Land. (b)Buildings. (c)Plant and Equipment. (d)Furniture and Fixtures. (e)Vehicles. (f)Office equipment. (g)Others (specify nature). [Railway sidings, development property and live stock, leasehold] ii)Assets under lease shall be separately stated for each class GN: Lesser –operating lease, lessee- finance lease.

65 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (iii)A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing addition, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately. (iv)Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. AS-10 states no time limit hence would prevail over it. (iii)A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing addition, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately. (iv)Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. AS-10 states no time limit hence would prevail over it.

66 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (a) Fixed Assets (ii) Intangible Assets -Classification shall be given as: (a)Goodwill. (b)Brands /trademarks. (c)Computer software. (OPEARTING SOFTWARE) (d)Mastheads and publishing titles. (e)Mining rights. (f)Copyrights, and patents and other intellectual property rights, services and operating rights. (g)Recipes, formulae, models, designs and prototypes. (h)Licenses and franchise. (i)Others (specify nature). 1 (a) Fixed Assets (ii) Intangible Assets -Classification shall be given as: (a)Goodwill. (b)Brands /trademarks. (c)Computer software. (OPEARTING SOFTWARE) (d)Mastheads and publishing titles. (e)Mining rights. (f)Copyrights, and patents and other intellectual property rights, services and operating rights. (g)Recipes, formulae, models, designs and prototypes. (h)Licenses and franchise. (i)Others (specify nature).

67 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (ii)A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing addition, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately. (iii)Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. AS-26 does not allow revaluation of intangible asset. (ii)A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing addition, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately. (iii)Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. AS-26 does not allow revaluation of intangible asset.

68 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (a) Fixed Assets (iii) Capital work in Progress (Capital advances to be shown under long term loan and advances). (iv) Intangible assets under development 1 (a) Fixed Assets (iii) Capital work in Progress (Capital advances to be shown under long term loan and advances). (iv) Intangible assets under development

69 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (1) (b) Non-current investments (i)Non-current investments shall be classified as trade investments and other investments and further classified as: (a)Investment [Immovable] property; (b)Investments in Equity Instruments; (c)Investments in preference shares (d)Investments in Government or trust securities; (e)Investments in debentures or bonds; (f)Investments in Mutual Funds; (g)Investments in partnership firms (h)Other non-current investments (specify nature) (1) (b) Non-current investments (i)Non-current investments shall be classified as trade investments and other investments and further classified as: (a)Investment [Immovable] property; (b)Investments in Equity Instruments; (c)Investments in preference shares (d)Investments in Government or trust securities; (e)Investments in debentures or bonds; (f)Investments in Mutual Funds; (g)Investments in partnership firms (h)Other non-current investments (specify nature)

70 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (1) (b) Non-current investments Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. GN- Since the term controlled special purpose entity is not defined in Act, AS or schedule hence no disclosure for the same is required. (1) (b) Non-current investments Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. GN- Since the term controlled special purpose entity is not defined in Act, AS or schedule hence no disclosure for the same is required.

71 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (1) (b) Non-current investments ii) Investments carried at other than at cost should be separately stated specifying the basis for valuation thereof. (iii) The following shall also be disclosed: (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; (c) Aggregate provision for diminution in value of investments (1) (b) Non-current investments ii) Investments carried at other than at cost should be separately stated specifying the basis for valuation thereof. (iii) The following shall also be disclosed: (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; (c) Aggregate provision for diminution in value of investments 1 (c) Deferred Tax Assets

72 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (d) Long-term loans and advances shall be classified as: (a)Capital Advances; (b)Security Deposits; (c)Loans and advances to related parties (giving details) (d)Other loans and advances (specify nature). (ii)The above shall also be separately sub-classified as: (a)Secured, considered good; (b)Unsecured, considered good; (c)Doubtful. 1 (d) Long-term loans and advances shall be classified as: (a)Capital Advances; (b)Security Deposits; (c)Loans and advances to related parties (giving details) (d)Other loans and advances (specify nature). (ii)The above shall also be separately sub-classified as: (a)Secured, considered good; (b)Unsecured, considered good; (c)Doubtful.

73 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (d) Long-term loans and advances (iii)Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv)Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other persons oramounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 1 (d) Long-term loans and advances (iii)Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv)Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other persons oramounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

74 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (e)Other non-current assets shall be classified as: (i) Long Term Trade Receivables (including trade receivables on deferred credit terms); (ii) Others (specify nature) It shall be sub-classified as: (i)(a) Secured, considered good; (b)Unsecured considered good; (c)Doubtful 1 (e)Other non-current assets shall be classified as: (i) Long Term Trade Receivables (including trade receivables on deferred credit terms); (ii) Others (specify nature) It shall be sub-classified as: (i)(a) Secured, considered good; (b)Unsecured considered good; (c)Doubtful

75 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL 1 (e) Other Non current assets (iii)Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv)Debts due by directors or other officers of the company or any of them either severally or jointly with any other persons or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 1 (e) Other Non current assets (iii)Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv)Debts due by directors or other officers of the company or any of them either severally or jointly with any other persons or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

76 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2(a) Current Investments: Shall be classified as: (a)Investments in Equity Instruments; (b)Investment in Preference Shares (c) Investments in government or trust securities; (d) Investments in debentures or bonds; (e)Investments in Mutual Funds; (f)Investments in partnership firms (g)Other investments (specify nature). 2(a) Current Investments: Shall be classified as: (a)Investments in Equity Instruments; (b)Investment in Preference Shares (c) Investments in government or trust securities; (d) Investments in debentures or bonds; (e)Investments in Mutual Funds; (f)Investments in partnership firms (g)Other investments (specify nature).

77 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (2) (a) Current investments Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. (2) (a) Current investments Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given.

78 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL (2) (a) Current investments ii) The basis of valuation of individual investments should be separately stated. (iii) The following shall also be disclosed: (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; (c) Aggregate provision for diminution in value of investments -But as per AS-13 it is not the provision (2) (a) Current investments ii) The basis of valuation of individual investments should be separately stated. (iii) The following shall also be disclosed: (a) Aggregate amount of quoted investments and market value thereof; (b) Aggregate amount of unquoted investments; (c) Aggregate provision for diminution in value of investments -But as per AS-13 it is not the provision Q. Is current investment is be shown as trade and non trade?

79 New Schedule VI- Non-Current Assets BY- CA GOPAL JI AGRAWAL In case of investment in partnership firm: 1.In case of change in constitution during the year of firm, the partners details would be given at what date? 2.In case of different accounting period, the financial information of which date is to be reported? 3. Disclosure of share of each partner is with regard to capital or profit? 4.Total capital investment in the partnership firm means the capital account balance or the aggregate of all capital,current or drawings account? 5.If firm happens to be Associate or JV, state provision? 6.Profit /loss is not required under NS? 5. Whether investment in LLP would be taken as firm? In case of investment in partnership firm: 1.In case of change in constitution during the year of firm, the partners details would be given at what date? 2.In case of different accounting period, the financial information of which date is to be reported? 3. Disclosure of share of each partner is with regard to capital or profit? 4.Total capital investment in the partnership firm means the capital account balance or the aggregate of all capital,current or drawings account? 5.If firm happens to be Associate or JV, state provision? 6.Profit /loss is not required under NS? 5. Whether investment in LLP would be taken as firm?

80 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (b) 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). (ii) Goods-in-transit shall be disclosed under the relevant sub-head of inventories. (iii) Mode of valuation shall be stated. 2 (b) 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). (ii) Goods-in-transit shall be disclosed under the relevant sub-head of inventories. (iii) Mode of valuation shall be stated.

81 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (c) Trade Receivables (i) Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated. Trade receivables shall be sub-classified as: (a) Secured, considered good; (b)Unsecured considered good; (c)Doubtful. 2 (c) Trade Receivables (i) Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated. Trade receivables shall be sub-classified as: (a) Secured, considered good; (b)Unsecured considered good; (c)Doubtful.

82 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (c) Trade Receivables (iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (iv) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 2 (c) Trade Receivables (iii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. (iv) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

83 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (d) (i) Cash and cash equivalents: shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (dt. 31/03/12 but recd in april) (c) Cash on hand; (d) Others (specify nature). (ii)Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (iii)Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iv)Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. (v)Bank deposits with more than 12 months maturity shall be disclosed separately. 2 (d) (i) Cash and cash equivalents: shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (dt. 31/03/12 but recd in april) (c) Cash on hand; (d) Others (specify nature). (ii)Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. (iii)Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. (iv)Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. (v)Bank deposits with more than 12 months maturity shall be disclosed separately.

84 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (e) (i) Short-term loans and advances (a) Loans and advances to related parties (giving details thereof); (b) Others (specify nature). (ii)The above shall also be sub-classified as: (a)Secured, considered good; (b)Unsecured, considered good; (c) Doubtful. 2 (e) (i) Short-term loans and advances (a) Loans and advances to related parties (giving details thereof); (b) Others (specify nature). (ii)The above shall also be sub-classified as: (a)Secured, considered good; (b)Unsecured, considered good; (c) Doubtful.

85 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL 2 (e) Short term loans and advances (iii) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv) Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other person or amount due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 2 (e) Short term loans and advances (iii) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. (iv) Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other person or amount due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. 2 (f) Other current assets- specify nature- residual clause

86 New Schedule VI- CURRENT ASSETS BY- CA GOPAL JI AGRAWAL The head Miscellaneous Expenditure has been deleted. Why? What would happen about unamortized portion of expenses like share issue expenses, discount on debentures, shares, (not covered under AS-26)? Security deposits have been shown under long term loans and advances only so what would be treatment for the security amount due for refund within 12 months from BS date?

87 New Schedule VI- CONTINGENT LIABILITIES & COMMITMENTS BY- CA GOPAL JI AGRAWAL Contingent liabilities and commitments (to the extent not provided for) (a) Claims against the company not acknowledged as debt; (b)Guarantees; (not guarantee issued by bankers for co.) (c)Other money for which the company is contingently liable (ii)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). (onerous one) Contingent liabilities and commitments (to the extent not provided for) (a) Claims against the company not acknowledged as debt; (b)Guarantees; (not guarantee issued by bankers for co.) (c)Other money for which the company is contingently liable (ii)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). (onerous one)

88 New Schedule VI- CONTINGENT LIABILITIES & COMMITMENTS BY- CA GOPAL JI AGRAWAL The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on preference shares shall also be disclosed separately. V. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, there shall be indicated by way of note how such unutilized amounts have been used or invested. The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on preference shares shall also be disclosed separately. V. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, there shall be indicated by way of note how such unutilized amounts have been used or invested.

89 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from (a)sale of products; (b)sale of services; (c) other operating revenues; (different from other income) Less: (d) Excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from (a) Interest; and (b) Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable. (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from (a)sale of products; (b)sale of services; (c) other operating revenues; (different from other income) Less: (d) Excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from (a) Interest; and (b) Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable.

90 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Finance Costs shall be classified as: (a) Interest expense; (b) Other borrowing costs; (c)Applicable net gain/loss on foreign currency transactions and translation. 4. Other income (a) Interest Income (in case of a company other than a finance company); (b) Dividend Income; (AS-13 separate for LT/current invest.) (c) Net gain/loss on sale of investments (d) Other non-operating income (net of expenses directly attributable to such income). Finance Costs shall be classified as: (a) Interest expense; (b) Other borrowing costs; (c)Applicable net gain/loss on foreign currency transactions and translation. 4. Other income (a) Interest Income (in case of a company other than a finance company); (b) Dividend Income; (AS-13 separate for LT/current invest.) (c) Net gain/loss on sale of investments (d) Other non-operating income (net of expenses directly attributable to such income).

91 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL (a)Employee Benefits Expense showing separately (i)salaries and wages, (ii)contribution to provident and other funds, (iii)expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses]. (b)Depreciation and amortization expense; (c)Any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs.1,00,000, whichever is higher; (d)Interest Income; (e) Interest Expense; (f)Dividend Income; (g)Net gain/ loss on sale of investments; (h)Adjustments to the carrying amount of investments; (a)Employee Benefits Expense showing separately (i)salaries and wages, (ii)contribution to provident and other funds, (iii)expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses]. (b)Depreciation and amortization expense; (c)Any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs.1,00,000, whichever is higher; (d)Interest Income; (e) Interest Expense; (f)Dividend Income; (g)Net gain/ loss on sale of investments; (h)Adjustments to the carrying amount of investments;

92 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. (i)Net gain or loss on foreign currency transaction and translation (other than considered as finance cost); (j)Payments to the auditor as (a)auditor,(b)for taxation matters, (c) for company law matters, (d) for management services, (e) for other services, (f) for reimbursement of expenses; (k) Details of items of exceptional and extraordinary nature; (each item with nature to be disclosed in notes) (l) Prior period items; Continued….. (i)Net gain or loss on foreign currency transaction and translation (other than considered as finance cost); (j)Payments to the auditor as (a)auditor,(b)for taxation matters, (c) for company law matters, (d) for management services, (e) for other services, (f) for reimbursement of expenses; (k) Details of items of exceptional and extraordinary nature; (each item with nature to be disclosed in notes) (l) Prior period items;

93 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. (a) In the case of manufacturing companies,- (1)Raw materials under broad heads. (2) goods purchased under broad heads. (b)In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. (c)In the case of companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads. Continued….. (a) In the case of manufacturing companies,- (1)Raw materials under broad heads. (2) goods purchased under broad heads. (b)In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. (c)In the case of companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads.

94 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. (d)In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above,it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads (e)In the case of other companies, gross income derived under broad heads. (iii) In the case of all concerns having works in progress, works-in-progress under broad heads. Continued….. (d)In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above,it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads (e)In the case of other companies, gross income derived under broad heads. (iii) In the case of all concerns having works in progress, works-in-progress under broad heads.

95 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. (iv) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance-sheet is made up. (b) The aggregate, if material, of any amounts withdrawn from such reserves. v)(a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. (b)The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. Continued….. (iv) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance-sheet is made up. (b) The aggregate, if material, of any amounts withdrawn from such reserves. v)(a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. (b)The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required.

96 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. (vi) Expenditure incurred on each of the following items, separately for each item:- (a) Consumption of stores and spare parts. (b) Power and fuel. (c) Rent. (d) Repairs to buildings. (e) Repairs to machinery. (g) Insurance. (h) Rates and taxes, excluding, taxes on income. (i) Miscellaneous expenses, (vii) (a) Dividends from subsidiary companies. (b) Provisions for losses of subsidiary companies. (AS-13) Continued….. (vi) Expenditure incurred on each of the following items, separately for each item:- (a) Consumption of stores and spare parts. (b) Power and fuel. (c) Rent. (d) Repairs to buildings. (e) Repairs to machinery. (g) Insurance. (h) Rates and taxes, excluding, taxes on income. (i) Miscellaneous expenses, (vii) (a) Dividends from subsidiary companies. (b) Provisions for losses of subsidiary companies. (AS-13)

97 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. a) Value of imports calculated on C.I.F basis by the company during the financial year in respect of – I. Raw materials; II. Components and spare parts; III. Capital goods; (while it is not part of profit and loss) b) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; c) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; Continued….. a) Value of imports calculated on C.I.F basis by the company during the financial year in respect of – I. Raw materials; II. Components and spare parts; III. Capital goods; (while it is not part of profit and loss) b) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; c) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;

98 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Continued….. d) The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related; (CASH BASIS) e) Earnings in foreign exchange classified under the following heads, namely:- I. Export of goods calculated on F.O.B. basis; II. Royalty, know-how,professional and consultation fees; III. Interest and dividend; IV. Other income, indicating the nature thereof Continued….. d) The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related; (CASH BASIS) e) Earnings in foreign exchange classified under the following heads, namely:- I. Export of goods calculated on F.O.B. basis; II. Royalty, know-how,professional and consultation fees; III. Interest and dividend; IV. Other income, indicating the nature thereof

99 New Schedule VI- STATEMENT OF PROFIT& LOSS BY- CA GOPAL JI AGRAWAL Q. Whether CIF value of goods imported for trading is to be disclosed? Q. Whether CIF value of raw material, components and spare parts would match with consumption as there no base for arriving at it whether CIF or FOB? Q. Whether CIF value of raw material, components and spare parts would be disclosed on accrual or payment basis. Q. Expenditure in foreign currency in respect of royalty, know how, professional consultancy, interest etc if received from of cost (FOC) or against rupee payment, whether it is required to be disclosed.

100 An humble appeal I will acknowledge your critical comments and suggestions for making my Coming Deliberations more effective and copious Gopal Ji Agrawal B.COM LLB DISA IFRS (ICAI) For any query, discussion or suggestion, please mail at An humble appeal I will acknowledge your critical comments and suggestions for making my Coming Deliberations more effective and copious Gopal Ji Agrawal B.COM LLB DISA IFRS (ICAI) For any query, discussion or suggestion, please mail at


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