1. Presentation CA.Dileep Surya Kumar 1 Catching up with global trends

2.  As per the Government Notification no. F.No.2/6/2008- C.L-V dated 30-3-2011, the Revised Schedule VI is applicable for the financial Statements to be prepared for the financial year commencing on or after April 1, 2011.  Applicable to consolidated financial statements.  Revised Schedule VI would apply to all Indian companies till they are required to follow IFRS-converged Indian Accounting Standards (Ind ASs).  Companies engaged in the generation and supply of electricity, the revised Schedule VI may be followed by such companies till the time a format is prescribed under the relevant statute 2

3. 1. General Instructions (Applicable for both BS and Statement of P&L) 2. Part 1 1. Form of Balance Sheet 2. General Instructions for preparation of Balance Sheet 3. Part 2 1. Form of Statement of Profit and loss 2. General Instructions for preparation of Statement of Profit and Loss 3

4.  Compliance with the Act and/or Accounting Standards: –Requirements of the Act and/or Standards will override the related requirement of Schedule VI.  Disclosures as required by Accounting Standards: –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  Other Disclosures: –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 the Revised Schedule VI 4

5.  Notes to accounts shall contain information in addition to that presented in the FS and shall provide where required: a)Narrative descriptions, and b)Information about items that do not qualify for recognition in those statement.  Each item on the face of the Balance Sheet and Statement of Profit and Loss is to be cross referenced to related information the notes to accounts.  Corresponding amounts for the immediately preceding reporting period(Except in the case of the first FS laid before company) 5

6.  Rounding off based on Turnover: 1)Less than 100 cr - Figures to be in nearest Hundreds,thousand,lakhs or millions or decimals thereof. 2) 100 cr or more - Figures to be in nearest lakhs,millions or crores, or decimals thereof. 6

7. ParticularsNote No. Figures as at the end of the current reporting period Figures as at the end of the previous reporting period I. EQUITY AND LIABILITIES (1)Shareholders’ Funds (a) share capital (b) Reserve 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 7

8. ParticularsNote No. Figures as at the end of the current reporting period Figures as at the end of the previous reporting period II. ASSETS (1)Non-current assets (a) fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress (iv) Intangible assets under development (b) Non- current investments (c) Deferred tax assets (Net) (d) Long term loans and advances (e) Other non-current assets (2) Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short term loans and advances (f) Other current assets TOTAL 8 Format – cont’d

9.  Share Capital : For each class of Share Capital *The number and amount of share authorized. *the number of share- -issued, -subscribed, -fully paid,and -subscribed but not fully paid. *Par value per share. * A reconciliation from the beginning of the year till end of the year. 9

10. *Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held. * Shares in respect of each class in the company held by a) its holding company b) its ultimate holding company including shares held by or by subsidiaries c) associates of the holding company or the ultimate holding company in aggregate; *Shares issued for consideration other than cash, Bonus shares, shares bought back (for 5Yrs). *Shares reserved for issues under options, disinvestments their terms and conditions. *Terms and earliest date of conversion of securities convertible in equity or preference shares 10

11.  Reserves and Surplus: *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). * A reserve specifically represented by earmarked investments shall be termed as a ‘fund’. *Debit balance of statement of profit and loss shall be shown as a negative figure under the head ‘Surplus’. *Share Options Outstanding Account,include in reserves and surpuls heading. 11

12. * Unlike its predecessor, the revised Schedule contains specific requirements in this regard. * share application money pending allotment, is required to be divided into two parts : - the part against which shares will be allotted is in the nature of equity. - the part which is due for refund is in the nature of liability * Equity part shown under Share application maney pending allotment. * Refundable part shown under other current liabilities. 12

13.  Criteria to be met to classify as current liability,any of following :---- Expected to be settled in the co’s normal operating cycle, Held primarily for the purpose of being traded, Due to be settled within twelve months after the reporting date,or There is no unconditional right to defer settlement for at least 12 months after the reporting date. * All other liability shall be classified as non-current. * Operating cycle – time between the acquisition of assets for processing and their realisation in cash or cash equivalents. If can not be identified- duration of 12 months. 13

14. *It shall be classifed as: a)Bonds/debentures. b)Term loans -from banks. -from other parties. c)Deferred payment liabilites. d)Deposites. e)loans and advances from related parties. f)Long term maturities of finance lease obligations. g)Other loans and advances(specify nature). 14 Non-Current Liabilities

15. * Sub- classification as as secured and unsecured, nature of security, guaranteed by directors or others * Terms of repayment of term loans and other loans shall be stated. * Period and amount of continuing default as on the balance sheet date in repayment of loans and interest,shall be specified separtely in each case. * Convertible/Reedemable bonds/debentures (descending order). 15

16. Other Long Term Liabilities shall be classified as: a)Trade payables. b)Others. 16  Long term provisions The amounts shall be classified as : a)Provisions for employee benefits. b)Others (specify nature).

17.  Short-Term borrowings: 17 a)Loans repayable on demand -from banks. -From other parties. b) Loans and advances from related parties. c) Deposits. d) Oher loans and advances (specify nature) * Sub- classification as as secured and unsecured, nature of security, guaranteed by directors or others. * Period and amount of continuing default as on the balance sheet date in repayment of loans and interest,shall be specified separtely in each case

18. The amount shall be classified as: a) Current maturities of LT 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 dividend g)Application money pending allotment, T & C, Proposed no. of shares, amount of premium, whether sufficient authorised capital, period for which allotment pending. (Equity or Other current liabilities) h)Unpaid matured deposits and debentures 18

19. The amounts shall be classified as: a)Provisions for employee benefits b)Others(specify natures) 19

20.  An item is classified as current :  Expected to be realise in or intended for sale or consumption in normal operating cycle of the co, or  is expected to be realized/ settled within twelve months from reporting date,or  If it is held primary for trading or  Is cash or cash equivalent.  All other assets shall be classified as non-current  Operating cycle (same as current liabilities) 20

21. Tangible Assets: *Tangible fixed assets are required to be further classified into the following categories in the notes: a. Land b. Buildings c. Plant and equipment d. Furniture and fixtures e. Vehicles f. Office equipment g. Others (specifying nature) * Asset under lease – shall be separately specified. * Reconciliation of the gross and net carrying amounts at beginning and end of reporting period. * Written off or add on account of revaluation of assets shall show reduced figure and shall give by way of note ( for 5 yrs) the details of such revaluation. 21

22. Intangible Assets: * Recognising the importance of intangible fixed assets, this new category has been added, with sub-classification in the notes as below : a. Goodwill b. Brands /trademarks c. Computer software d. Mastheads and publishing titles e. Mining rights f. Copyrights, and patents and other intellectual property rights, g. services and operating rights h. Recipes, formulae, models, designs and prototypes i. Licenses and franchise g.Others (specifying nature). * Disclosure requirment same as tangible assets 22

23. Capital work-in-progress : * The (aggregate) amount of capital work-in-progress (relating to tangible fixed assets) is required to be disclosed as a separate item under ‘fixed assets’. capital advances are required to be disclosed under long-term loans and advances. Intangible assets under development : * The (aggregate) amount of intangible assets under development (which would be recognised and measured in accordance with AS 26, Intangible Assets) has to be disclosed separately as a separate item on the face of the balance sheet under ‘fixed assets’. 23

24. *Non–current investment shall be classified as trade investments and other investment and further classified as : -property -equity instruments -preference shares -Govt and trust securities -Debentures and bonds -Mutual funds -Partnership firms -Others. * Investments carried at other than at cost should be separately stated specifying the basis for valuation thereof. *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 *Name, nature and extent of investment in body corporate. *Name, names of the partners, total capital and sharing ratio 24

25. *Long-term loans and advances shall be classified as: (a) Capital Advances; (b) Security Deposits; (c) Loans and advances to related parties (giving details thereof). Reference should be made to AS 18 for identifying the related parties. (d) Other loans and advances (specify nature). *The above shall also be separately sub-classified as: (a) Secured, considered good; (b) Unsecured, considered good; (c) Doubtful. *Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. *Due by directors and other officers, firms and companies in which directors are interested to be separately stated. 25

26. *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). * Goods-in-transit shall be disclosed under the relevant sub- head of inventories. * Mode of valuation shall be stated. 26

27. *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. * Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. *Debts due by : -Directors,:or -officers :or -firms or pvt. Companies respectively in which any director is a partener or a director or a member should be seprately stated. 27 *Words ‘Sundry Debtors’ have been replaced with ‘Trade Receivables’.

28. (i) Cash and cash equivalents shall be classified as: (a) Balances with banks; (b) Cheques, drafts on hand; (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) Bank deposits with more than 12 months maturity shall be disclosed separately. 28

29. *Short term loans and advances : These need to be sub-classified in the notes as: - - Loans and advances to related parties (giving details thereof) -Others (specifying nature). *Other current assets: -Other current assets is the residuary heading, which covers current assets that do not fall into any of the other ‘current asset’ categories. 29

30. Particulars Note No. Figures at the end of current reporting period Figures at the end of previous reporting period Revenue from Operations Other Income Total Revenue ( I + II) Expenses Cost of Material Consumed Purchases of Stock in Trade Changes in inventories of finished goods Work in progress and stock in trade Employee Benefit expense Finance Costs Depreciation and amortization expense Other expenses Profit Before Exceptional and extraordinary items and tax Exceptional Items 30

31. 31 Particulars Note No. Figures at the end of current reporting period Figures at the end of previous reporting period Profit Before extraordinary items and tax Extraordinary Items Profit Before Tax Tax Expense Current Tax Deferred Tax Profit (loss) for the period from continuing operations Profit (loss) from discontinuing operations Tax expense of discontinuing operations Profit(loss) from discontinuing operations (after tax) Profit (loss) for the period Earnings per equity share Basic Diluted

32. *Profit and Loss: – Now known as ‘Profit and Loss Statement f or the year ended ________’ –Format specified in new Schedule. –Exceptional and extraordinary items need to be disclosed separately on the face of the Statement of Profit and Loss. The details of the same as also of any prior period items should be disclosed in the notes. -Profit / loss before and after tax from discontinuing operations and the tax expense from discontinuing operations need to be disclosed separately on the face of the Statement of Profit and Los 32

33. - The items to be disclosed under Revenue from Operations have been specifically indicated for both finance companies and others. - Payments to 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 33

34. * Any item of income or expenditure which exceeds one percent of the revenue from operations or Rs. 1,00,000 whichever is higher should be disclosed separately. * Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements. 34

35. 35 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 1)Form of Balance Sheet Both horizontal and vertical form were allowed Only vertical form of Balance Sheet has been specified in the revised Schedule VI 2)Form of Profit and Loss Account No format specified for Profit and Loss Account Form of Profit and Loss Account specified under Part II 3)Profit and Loss Appropriation Account Opening surplus, proposed dividend and transfer to/ from reserves were shown in Profit and Loss Appropriation Account Transfer from/ to reserves to be shown under the heading Reserves & Surplus only. No requirement of separate Profit and Loss Appropriation Account.

36. 36 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 4)Rounding off of Figures appearing in financial statement Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, thousands or decimal thereof Turnover of Rs. 100 Crs or more but less than Rs. 500 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof Turnover of Rs. 500 Crs or more - R/off to the nearest Hundreds, thousands, lakhs, millions or crores, or decimal thereof Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof Turnover of Rs. 100 Crs or more - R/off to the nearest lakhs, millions or crores, or decimal thereof

37. 37 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 5)Net Working Capital Current assets & Liabilities are shown together under application of funds. The net working capital appears on balance sheet. Assets & Liabilities are to be bifurcated into current & Non-current & to be shown separately. Hence, net working capital will not be appearing in B/S. 6)Fixed AssetsThere was no bifurcation required in to tangible & intangible assets. Capital advances used to be shown under the Head Capital Work in Progress under Fixed Assets Fixed assets to be shown under non-current assets and have to be bifurcated into Tangible & intangible assets. Capital advances to be shown under the head ‘Long term Loans & Advances’

38. 38 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 7)BorrowingsShort term & long term borrowings are grouped together under the head Loan funds sub-head Secured / Unsecured Long term borrowings to be shown under non-current liabilities and short term borrowings to be shown under current liabilities with separate disclosure of secured / unsecured loans. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified 8)DepositsLease deposits are part of loans & advances Lease deposits to be disclosed as long term loans & advances under the head non-current assets

39. 39 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 9)InvestmentsBoth current & non- current investments to be disclosed under the head investments Current and non-current investments are to be disclosed separately under current assets & non-current assets respectively. 10)Loans & Advances Loans & Advance are disclosed along with current assets Loans & Advance to subsidiaries & others to be disclosed separately. Loans & Advances to be broken up in long term & short term and to be disclosed under non- current & current assets respectively. Loans & Advance from related parties & others to be disclosed separately. 11)Deferred Tax Assets / Liabilities Deferred Tax assets / liabilities to be disclosed separately Deferred Tax assets / liabilities to be disclosed under non- current assets / liabilities as the case may be.

40. 40 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 12)Cash & Bank Balances Bank balance to be bifurcated in scheduled banks & others No such bifurcation required. Bank balances in relation to earmarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately. 13)Profit & Loss (Debit Balance) P&L debit balance to be separately disclosed in the Balance Sheet. Debit balance of Profit and Loss Account to be shown as negative figure under the head Surplus. Therefore, Reserve & Surplus can have a negative balance.

41. 41 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 14)Sundry Debtors Debtors outstanding for more than six months from invoice date to be shown separately Debtors outstanding for more than six months from the date they became due to be shown separately 15)Other current liabilities No specific mention for separate disclosure of Current maturities of long term debt No specific mention for separate disclosure of Current maturities of finance lease obligation Current maturities of long term debt to be disclosed under other current liabilities. Current maturities of finance lease obligation to be disclosed.

42. 42 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 16)Separate line item Disclosure criteria any item under which expense exceeds one per cent of the total revenue of the company or Rs. 5,000 which ever is higher; shall be disclosed separately any item of income / expense which exceeds one per cent of the revenue from operations or Rs. 1,00,000, which ever is higher; to be disclosed separately 17)Expense classification Function wise & nature wise Expenses in Statement of Profit and Loss to be classified based on nature of expenses 18)Finance CostFinance cost to be classified in fixed loans & other loans Finance cost shall be classified as interest expense, other borrowing costs & Gain / Loss on foreign currency transaction & translation

43. 43 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 19)Foreign exchange gain / loss Gain / Loss on foreign currency transaction to be shown under finance cost Gain / Loss on foreign currency transaction to be separated into finance costs and other expenses 20)PurchasesThe purchase made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities thereof. Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted. Goods-in-transit to be separately disclosed.

44. 44 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 21)TDS amount on Interest, royalty received TDS amount was required to be shown for Interest income etc. No requirement of disclosing TDS amounts separately 22)Managerial Remuneratio n and Commission Payment to directors and detailed calculation under section 198 was required to be disclosed No disclosure requirements for Managerial Remuneration 23)ESOP expenses No requirement to show separately as part of Employee Benefits expense Expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP) to be shown separately as part of Employee Benefits expense

45. 45 Sr. No. ParticularsOld Schedule VIRevised Schedule VI 24)Part III- Interpretatio n Terms provision, reserve, capital reserve, quoted investment etc. were defined No such specific definitions. 25)Part IV- Balance Sheet Abstract Details of company registration number, capital raised, Balance Sheet details, products etc. were required to be attached with financials No such requirement.

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