Presentation on theme: "BALANCE SHEET AS PER COMPANIES ACT 1956"— Presentation transcript:
1 BALANCE SHEET AS PER COMPANIES ACT 1956 REVISED SCHEDULE VIBALANCE SHEETAS PER COMPANIES ACT 1956
2 Format of Balance Sheet Name of the Company…………… Balance Sheet as at……….. ( Rupees at ……) ParticularsNote NoFigures as at the end of the current reporting periodFigures as at the end of the previous reporting periodIEQUITY & LIABILITIES(1)Shareholder’s FundsShare CapitalReserves & surplusMoney received against share warrants(2)Share Application Money pending allotment(3)Non-Current LiabilitiesLong term borrowingsDeferred tax liabilities( net)Other long term liabilitiesLong term provision(4)Current LiabilitiesShort Term BorrowingsTrade PayablesOther Current LiabilitiesShort Term ProvisionsTOTAL
3 Format of Balance Sheet (cont Format of Balance Sheet (cont..) Name of the Company…………… Balance Sheet as at……… ( Rupees at ……)ParticularsNote NoFigures as at the end of the current reporting periodFigures as at the end of the previous reporting periodIIASSETS(1)Non Current AssetsFixed AssetsNon current InvestmentsDeffered tax assetsLong term loan and advancesOther non current assets(2)Current AssetsCurrent investmentsInventoriesTrade ReceivablesCash and Cash EquivalentsShort Term loans and advancesOther current assetsTOTAL
4 Shareholder’s Fund : Content & Information Share CapitalShall specify the number and the amount of shares of each class of share capital authorized, issued , subscribed and fully paidReserves & SurplusAmount appropriated from statement of profit & loss a/c as per statutory compliances or otherwise such as Capital Reserve , Debenture Redemption Reserve , Revaluation Reserve , General ReserveMoney received against share warrantsSecurites issued by company to owners which give them the right to purchase shares at a specific price at a future dateRepresents amount which would ultimately form part of either share capital or reserves and surplus
5 Non current Liabilities: Content & Information Long Term BorrowingsClassified as bonds/debentures, term loans , deffered payment liabilities, deposits, loans and advances from related parties, etc.Shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each caseOther Long Term LiabilitiesClassified as Trade payables( due on account of goods purchased or services rendered in normal course of business of non current nature) and others (specify nature)Long Term ProvisionsClassified into Provision for Employee Benefits and others (specify nature )
6 Current Liabilties: Content & Information Short Term BorrowingsClassified into loans repayable on demand by banks or other parties; deposits and other loans and advancesShall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.Trade PayablesAmounts payable in respect of goods purchased or services received in the normal course of business ( of current nature )Other Current LiabilitiesClassified into unpaid dividend, income received in advance , interest accrued and due on borrowings etc .Short Term ProvisionsClassified into Provision for Employee Benefits and others (specify nature )
7 Non current Assets : Content & Information Fixed AssetsNon current InvestmentsDeffered Tax AssetsLong Term Loans & advancesOther Non current assets
8 Non current Assets : Content & Information(cont.) Fixed AssetsTangible AssetsClassified as land , buildings , plant and equipment , furniture and fixture , vehicles , office equipment and othersIntangible AssetClassified as goodwill , brands/trademarks, computer software , mining rights etcCapital Work in ProgressRelated to tangible fixed asset to be disclosedIntangible Assets under developmentRecognised and measured as per accordance with AS 26
9 Non current Assets : Content & Information(cont.) Non-current InvestmentShall be classified as trade investments and other investments and further classified as investment property , investment in equity instruments ,preference shares , government securities , bonds , debentures etc .Long Term Loans and AdvancesShall be classifies as capital advances , security deposits , loans and advances related to other parties .Shall be Further classified into secured , considered good; unsecured , considered good or doubtfulOther non-current assetsShall be classified as long term trade receivables or others.
10 Current Assets : Content & Information Current InvestmentsInventoriesTrade ReceivablesCash and cash equivalentsOther Current AssetsShort Term Loans and advances
11 Current Assets : Content & Information (cont) Current InvestmentsShall be classified as trade investments and other investments and further classified as investment property,investment in equity instruments,preference shares, government,securities , bonds,debentures,etcInventoriesShall be classified as raw material , work in progress , finished goods ,stock in trade , stores and spares , loose tools ,etcMode of valuation should be statedTrade ReceivablesTreated as current if it is expected to be realised within 12 months from the balance sheet date or within the operating cycle of the business , whichever is longer.Shall be Further classified into secured , considered good; unsecured , considered good or doubtful
12 Current Assets : Content & Information (cont) Cash and Cash EquivalentsShall be classified into bank balances, cheques , drafts on hand , cash on hand , short term highly liquid investments , other etcShort Term Loans and AdvancesShall be classifies into loans and advances to related parties and others( specifying nature )Shall be Further classified into secured , considered good; unsecured , considered good or doubtfulOther Current AssetsCovers residuary current assets that do not fall into the any of the other current asset categories such as interest accrued on investments
13 STATEMENT OF PROFIT & LOSS AS PER COMPANIES ACT 1956 REVISED SCHEDULE VISTATEMENT OF PROFIT & LOSSAS PER COMPANIES ACT 1956
14 STATEMENT OF PROFIT & LOSS Ministry of Corporate Affairs has revised schedule VI which comprises of Profit & Loss Account and Balance Sheet.The name of Profit & Loss account has been changed to Statement of Profit & Loss.
15 Statement of Profit and Loss Name of the CompanyStatement of Profit and Loss for the year ended 31 March, 20X2ParticularsACONTINUING OPERATIONS1Revenue from operations (gross)Less: Excise dutyRevenue from operations (net)2Expenses(a) Cost of materials consumed(b) Purchases of stock-in-trade(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade(d) Employee benefits expense(e) Other expensesTotal3Earnings before exceptional items, extraordinary items, interest, tax, depreciation and amortisation (EBITDA) (1 - 2)4Finance costs5Depreciation and amortisation expense6Other income7Profit / (Loss) before exceptional and extraordinary items and tax ( )
16 Particulars A CONTINUING OPERATIONS 1 Revenue from operations (gross) ACONTINUING OPERATIONS1Revenue from operations (gross)Less: Excise dutyRevenue from operations (net)2Expenses(a) Cost of materials consumed(b) Purchases of stock-in-trade(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade(d) Employee benefits expense(e) Other expensesTotal3Earnings before exceptional items, extraordinary items, interest, tax, depreciation and amortisation (EBITDA) (1 - 2)4Finance costs5Depreciation and amortisation expense6Other income7Profit / (Loss) before exceptional and extraordinary items and tax ( )
17 8Exceptional items9Profit / (Loss) before extraordinary items and tax (7 + 8)10Extraordinary items11Profit / (Loss) before tax (9 + 10)12Tax expense:(a) Current tax expense for current year(b) (Less): MAT credit (where applicable)(c) Current tax expense relating to prior years(d) Net current tax expense(e) Deferred tax13Profit / (Loss) from continuing operations ( )BDISCONTINUING OPERATIONS14.iProfit / (Loss) from discontinuing operations (before tax)14.iiGain / (Loss) on disposal of assets / settlement of liabilities attributable to the discontinuing operations14.iiiAdd / (Less): Tax expense of discontinuing operations(a) on ordinary activities attributable to the discontinuing operations(b) on gain / (loss) on disposal of assets / settlement of liabilities15Profit / (Loss) from discontinuing operations (14.i + 14.ii + 14.iii)
18 CTOTAL OPERATIONS16Profit / (Loss) for the year ( )17.iEarnings per share (of ` ___/- each):(a) Basic(i) Continuing operations(ii) Total operations(b) Diluted17.iiEarnings per share (excluding extraordinary items) (of ` ___/- each):See accompanying notes forming part of the financial statements
19 REVENUE REVENUE FROM OPERATIONS OTHER OPERATING REVENUES The first item in the statement starts with revenue from operations.Revenue from operations means net income from business activities.The new revised version is required to disclose by way of a note the break-up of revenue into–sale of productssale of servicesother operating revenuesLess: excise duty.Revenue from a company’s operating activities incidental to principal revenue producing activities of sale of products or rendering of servicese.g. sale of by-products or scrap in a manufacturing company.
20 Interest on FD, Interest on Overdue Amounts. Dividend income Other IncomeInterest on FD, Interest on Overdue Amounts.Dividend incomeNet gain on sale of investments.Other non-operating income
22 COST OF MATERIALS CONSUMED & PURCHASE OF STOCK IN TRADE The revised Schedule requires separate disclosure of (i) cost of materials consumed, (ii) purchases of stock-in-trade and (iii) change in inventories of finished goods, work-in-progress and stock in trade on the face of the statement of profit and loss.Raw Material Consumed = Opening Stock of RM + Purchases of RM – Closing Stock of RMChange in Inventory is the difference of Closing and Opening Stock of FG, WIP and SIT.
23 Employee Benefits Expenses Salaries and wagesContribution to provident and other fundsExpense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP)Staff welfare expenses
24 Finance Costs Interest expense Other borrowing costs Applicable net gain/loss on foreign currency transactions and translation.Interest Expense includes Interest on Deb, Interest on Borrowings from Banks.Other Borrowing Costs include project finance charges, loan processing charges etc.
25 Depreciation & Ammortization Depreciation is an expense which arises due to the regular usage of the assetsAmortization refers to the writing off the cost of intangible assets like patents, copy rights etc. which have entitlements to use for a specified period of time.Commission on Salesseparate disclosure would be required if the amount exceeds one percent of turnover or INR 1,00,000, whichever is higher.
26 Other Expenses Consumption of stores and spare parts Power and fuel RentRepairs to buildingsRepairs to machineryInsuranceRates and taxes, excluding taxes on incomeMiscellaneous expenses.
27 EXCEPTIONAL NATUREWhen items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items should be disclosed separately.’
28 Extraordinary ItemsThe revised Schedule requires ‘extraordinary items’ to be distinguished from ‘exceptional items’ and shown separately on the face of the statement of profit and loss. For Eg: -Attachment of propertyLoss of property due to earthquake.
29 Tax Expense Current tax (MAT) payable XX Less: MAT credit entitlement (XX)Net Current tax liability XXMAT refers to Minimum Alternate tax.This was introduced to make sure that the companies having large profits and declaring substantial dividends to the shareholders, but who were not contributing to the government by way of corporate tax, by taking the advantage of various incentives provided in the Income Tax Act, pay a fixed % of book profit as MAT
30 Profit/(loss) from Discontinuing Operations The disclosure requirements of AS 24, Discontinuing Operations, including the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation, and the income tax expense related thereto to be disclosed on the face of the Statement should be complied with.
31 Earnings per Equity Share Basic and diluted earnings per share, computed in accordance with AS 20, Earnings Per Share, should be disclosed on the face of the statements of profit and loss. In this regard, it is relevant to note that AS 20 requires the nominal value of equity shares to be disclosed ‘along with the earnings per share figures’; hence, the same would also need to be disclosed on the face.