1. Revised Schedule VI of The Companies Act, 1956 CA. Rajkumar S Adukia B.Com(Hons.) FCA, ACS,MBA, AICWA, LLB,Dip In IFRS(UK) DLL& LW rajkumarfca@gmail.com www.carajkumarradukia.com www.carajkumarradukia.com09820061049/09323061049

2. Schedule VI Revised Introduction Notification Date 28 February 2011 Effective Date 1 April 2011 Applicable to the financial statements to be prepared for the Financial Year commencing on or after 1 April 2011 No provision in the notification for early application 2 www.carajkumarradukia.com

3. Schedule VI Structure General instructions for preparation of Financial Statements General notes applicable to the Financial Statements Part I – Form of Balance Sheet General instructions for preparation of Balance Sheet Part II – Form of Statement of Profit And Loss General instructions for preparation of Statement of Profit And Loss 3 www.carajkumarradukia.com

4. Conceptual Changes Schedule VI format and disclosures shall yield to Accounting standards and the requirements of the Act. Financial statements vertical format mandatory. Clear mandate on disclosure  on the face of financial statements and  In the accompanying notes Certain accounting terms defined in the schedule. The non-defined terms shall have the meaning as per the accounting standards. Separate head for Share application money pending allotment Liabilities to be classified as Current and Non-current liabilities  Creditors may be classified as Non-current liabilities in certain circumstances  Schedules to the Financial Statements to be given as notes to accounts Schedule VI 4 www.carajkumarradukia.com

5. Conceptual Changes Assets to be classified as current and non-current – as defined in the schedule – items like inventories and receivables may get classified as non current in certain circumstances. Investments specifically classified into non-current and current on the face of balance sheet. Disclosures as per schedule and as per accounting standards to be harmonized.  Disclosures requirements specified in the schedule VI are additional disclosures - not the substitute to the accounting standards disclosures  Disclosures as per accounting standards (unless required to be made on the face of Financial Statements) can be given in the notes to account or by way of additional statement Other disclosures required under the companies act to be made in the notes to accounts only. Schedule VI 5 www.carajkumarradukia.com

6. Notes to accounts Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required  Narrative descriptions or disaggregation of items recognized in those statements and  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. Schedule VI 6 www.carajkumarradukia.com

7. Comparatives and Rounding off Comparatives for the immediately preceding year to be given for all items shown in Financial Statements including notes Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as below : TurnoverRounding off Less than one hundred crore To the nearest hundreds, thousands, rupeeslakhs or millions, or decimals thereof. one hundred crore rupees or To the nearest lakhs, millions or crores, moreor decimals thereof. Rounding off is optional. 7 www.carajkumarradukia.com

8. Accounting terms defined 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. 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 company’s 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. Schedule VI 8 www.carajkumarradukia.com

9. Accounting terms defined A liability shall be classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the company’s 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. Schedule VI 9 www.carajkumarradukia.com

10. LIABILITIES Revised Format Note Figures at the Figures at the Particulars No. end of current end of previous reporting period reporting period Equity and Liabilities ( On the face of Balance Sheet ) 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 Schedule VI 10 www.carajkumarradukia.com

11. LIABILITIES Revised Format Note Figures at the Figures at the Particulars No. end of current end of previous reporting period reporting period 4. Current Liabilities (a) Short term Borrowings (b) Trade payables (c) Other current liabilities (d) Short term provisions Total Schedule VI 11 www.carajkumarradukia.com

12. ASSETS Revised Format Note Figures at the Figures at the Particulars No. end of current end of previous reporting period reporting period Assets ( On the face of Balance Sheet ) 1 ) Non Current Assets A) Fixed Assets i) Tangible assets ii) Intangible Assets iii) Capital WIP 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 Schedule VI 12 www.carajkumarradukia.com

13. ASSETS Revised Format Note Figures at the Figures at the Particulars No. end of current end of previous reporting period reporting period 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 Schedule VI 13 www.carajkumarradukia.com

14. Equity and liabilities Shareholders’ Funds Share Capital Reserves and surplus Money received against share warrants Share application money pending allotment Non – current liabilities Long term borrowings Deferred tax liabilities (net) Other long term liabilities Long term provisions Current Liabilities Short term borrowings Trade payables Other current liabilities Short-term provisions Schedule VI 14 www.carajkumarradukia.com

15. Assets Non Current Assets Fixed Assets Investments Deferred Tax Assets (Net) LT Loans & Adv. Others Current assets Current Investments Inventories Trade Receivables Cash & Cash Equiv. ST Loans & Adv. Other Curr. assets Schedule VI 15 www.carajkumarradukia.com

16. Shareholders’ Funds ( On the face of Balance sheet ) Revised Format Shareholders’ Funds  Share capital  Reserves and surplus  Money received against share warrant Current Format Shareholders’ Funds Share Capital  Authorized ___ shares of ` ____ each.  Issued ____ shares of ` ___ each.  Subscribed ____ shares of ` ___ each, ` ___ called up. ( Of the above, ____ shares are allotted as fully paid-up pursuant to a contract without payments being received in cash or as bonus shares – also source of bonus shares) Less: Calls unpaid (i) by directors (ii) by others Add: Forfeited Shares (amt originally paid) (capital profit on reissue of forfeited share transferred to capital reserve) Shareholders’ Funds 16 www.carajkumarradukia.com

17. Disclosures – Share Capital Revised Format For each class of share capital (different classes of preference shares to be treated separately):  the number and amount of shares authorized;  the number of shares issued, subscribed and fully paid, and subscribed but not fully paid;  par value per share;  a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period;  the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital;  shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or ssociates of the holding company or the ultimate holding company in aggregate;  shares in the company held by each shareholder holding more than 5 per cent shares specifying the number of shares held; Shareholders’ Funds 17 www.carajkumarradukia.com

18. Disclosures – Share Capital Revised Format  shares reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment, including the terms and amounts;  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.  Aggregate number and class of shares bought back.  terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date.  calls unpaid (showing aggregate value of calls unpaid by directors and officers)  forfeited shares (amount originally paid up) Shareholders’ Funds 18 www.carajkumarradukia.com

19. Reserves and Surplus Revised Format Capital Reserves ; Capital Redemption Reserve; Securities Premium Reserve; Debenture Redemption Reserve; Revaluation Reserve; Share Options Outstanding Account; Other Reserves – (specify the nature and purpose of each reserve and the amount in respect thereof); Debit balance of statement of profit and loss shall be shown as a negative figure under the head `Surplus’. Surplus i.e. balance in Statement of Profit & Loss disclosing allocations and appropriations  Dividend, bonus shares  transfer to/from reserves etc. Current Format Capital Reserves. Capital Redemption Reserve. Share Premium Account (cc) ---- Other reserves (specifying the nature of each reserve and the amount in respect thereof). Less : Debit balance in profit and loss account (if any) Surplus, i.e., balance in profit and loss account after providing for proposed allocations, namely :-  Dividend, bonus or reserves.  Proposed additions to reserves. Shareholders’ Funds 19 www.carajkumarradukia.com

20. Reserves and Surplus Revised Format 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’. 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.. Current Format Additions and deductions since last balance sheet to be shown, under each of the specified heads. The word "fund" in relation to any "Reserve" should be used only where such Reserve is specifically represented by earmarked investments. The negative balance of P/L Account if still shows a debit balance even after deductions from reserves, it is shown under a separate head ‘Profit and Loss account debit balance’ under Assets Shareholders’ Funds 20 www.carajkumarradukia.com

21. Share Warrants Revised Format Money received against share warrants Current Format ---- Shareholders’ Funds 21 www.carajkumarradukia.com

22. Share Application Money Revised Format Share Application money pending allotment (Detailed instructions given under current liabilities) Current Format No prescribed head It was customary to show as quasi capital Share Application Pending allotment 22 www.carajkumarradukia.com

23. Non Current Liabilities Revised Format Non Current Liabilities  Long term borrowings  Deferred tax liabilities (net)  Other long term liabilities  Long term provisions Current Format The category ‘Non Current liabilities’ does not exist. Liabilities 23 www.carajkumarradukia.com

24. Long Term Borrowings Revised Format Long Term Borrowings Classification I  Bonds/debentures.  Term loans from banks. from other parties.  Deferred payment liabilities.  Deposits.  Loans and advances from related parties.  Long-term maturities of finance lease obligations.  Other loans and advances (specify nature). Classification II  secured  unsecured. Current Format Secured and unsecured loans  Secured loans Debentures Loans and advances from banks. Loans and advances from subsidiaries. Other loans and advances.  Unsecured Loans Fixed deposits. Loans and advances from subsidiaries. Short-term loans and advances:  From Banks.  From others Other loans and advances:  From Banks.  From others. Non current Liabilities 24 www.carajkumarradukia.com

25. Long Term Borrowings (continued) Revised Format Long Term Borrowings Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. 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 instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due. Particulars of any redeemed bonds/ debentures which the company has power to reissue shall be disclosed. 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 separately in each case. Current Format Where loans have been guaranteed by directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head. Terms of redemption or conversion (if any) of debentures issued to be stated together with earliest date of redemption or conversion. Particulars of any redeemed debentures which the company has power to issue should be given. Non current Liabilities 25 www.carajkumarradukia.com

26. Deferred Tax Liabilities Revised Format Deferred tax liabilities (net) Current Format ---- Non current Liabilities 26 www.carajkumarradukia.com

27. Other Liabilities Revised Format Other long term liabilities (a) Trade payables (b) Others Current Format The category ‘Other long term liabilities’ does not exist. Non current Liabilities 27 www.carajkumarradukia.com

28. Provisions Revised Format Long term provisions  Provision for employee benefits.  Others (specify nature). Current Format Provisions***  Provision for taxation.  Proposed dividends.  For contingencies.  For provident fund scheme.  For insurance, pension and similar staff benefit schemes.  Other provisions. *** No bifurcation between long term and short term provisions Non current Liabilities 28 www.carajkumarradukia.com

29. Current Liabilities Revised Format Current Liabilities (a) Short term Borrowings (b) Trade payables (c) Other current liabilities (d) Short term provisions Current Format Current Liabilities (a) Acceptances. (b) Sundry creditors. (c) Subsidiary companies. (d) Advance payments and unexpired discounts for the portion for which value has still to be given (e) Unclaimed dividends. (f) Other liabilities (if any) (g) Interest accrued but not due on loans. Note: Provisions shown as a separate sub head under “Current liabilities and provisions” Current Liabilities 29 www.carajkumarradukia.com

30. Borrowings Revised Format Short term borrowings Classification I:  Loans repayable on demand  from banks.  from other parties.  Loans and advances from related parties.  Deposits.  Other loans and advances (specify nature). Classification II  secured  unsecured. Current Format Secured and unsecured loans  Secured loans Debentures Loans and advances from banks. Loans and advances from subsidiaries. Other loans and advances.  Unsecured Loans Fixed deposits. Loans and advances from subsidiaries. Short-term loans and advances:  From Banks.  From others Other loans and advances: (a) From Banks. From others. Current Liabilities 30 www.carajkumarradukia.com

31. Borrowings (continued) Revised Format Short term borrowings Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. Current Format The category ‘Short term borrowings’ does not exist. Current Liabilities 31 www.carajkumarradukia.com

32. Other Current Liabilities Revised Format Other current liabilities (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; Current Format The category ‘Other current liabilities’ does not exist. Current Liabilities 32 www.carajkumarradukia.com

33. Revised Format Other current liabilities (g) Application money received for allotment of securities and due for refund and interest accrued thereon  Share application money includes advances towards allotment of share capital.  The terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed.  It shall also be disclosed whether the company has sufficient authorized capital to cover the share capital amount resulting from allotment of shares out of such share application money. Current Format The category ‘Other current liabilities’ does not exist. Current Liabilities 33 www.carajkumarradukia.com

34. Revised Format Other current liabilities  Further, the period for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed.  Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head Equity and  share application money to the extent refundable i.e., the amount in excess of subscription or in case the requirements of minimum subscription are not met, shall be separately shown under `Óther current liabilities’; Current Format The category ‘Other current liabilities’ does not exist. Current Liabilities 34 www.carajkumarradukia.com

35. Revised Format Other current liabilities (h) Unpaid matured deposits/debentures and interest accrued thereon; (j) Other payables (specify nature ). Current Format The category ‘Other current liabilities’ does not exist. Current Liabilities 35 www.carajkumarradukia.com

36. Provisions Revised Format Short term provisions (a) Provision for employee benefits. (b) Others (specify nature). Current Format Provisions***  Provision for taxation.  Proposed dividends.  For contingencies.  For provident fund scheme.  For insurance, pension and similar staff benefit schemes.  Other provisions. *** No bifurcation between long term and short term provisions Current Liabilities 36 www.carajkumarradukia.com

37. Contingent Liabilities Revised Format Contingent liabilities and commitments (to the extent not provided for) Contingent liabilities shall be classified as:  Claims against the company not acknowledged as debt;  Guarantees;  Other money for which the company is contingently liable Commitments shall be classified as:  Estimated amount of contracts remaining to be executed on capital account and not provided for;  Uncalled liability on shares and other investments partly paid;  Other commitments (specify nature). Current Format Contingent Liabilities  Claims against the company not acknowledged as debts.  The amount of any guarantees given by the company on behalf of directors or other officers of the company  Other money for which the company is contingently liable.  Estimated amount of contracts remaining to be executed on capital account and not provided for.  Uncalled liability on shares partly paid.]  The period for which the dividends are in arrear or if there is more than one class of shares, the dividends on each such class are in arrear, shall be stated.  Arrears of fixed cumulative dividends. Notes to Accounts 37 www.carajkumarradukia.com

38. Fixed Assets ( On the face of Balance sheet ) Revised Format Fixed Assets 1) Tangible Assets 2) Intangible assets 3) Capital WIP 4) Intangible assets under dev. Current Format Fixed Assets Gross Block Less: Depreciation. Net Block Capital WIP Non current Assets 38 www.carajkumarradukia.com

39. Fixed Assets – Classification of Tangible Assets Revised Format 1) Tangible Assets 1. Land 2. Buildings 3. Plant & Equipment 4. Furniture & Fixtures 5. Vehicles 6. Office Equipments 7. ---- 8. ---- 9. ---- 10. Others (Specify nature) Note : Assets under lease should be classified separately Current Format 1) *** 1. Land 2. Buildings 3. Plant & Machinery 4. Furniture & fittings 5. Vehicles 6. ---- 7. Live stocks 8. Leaseholds 9. Development of property *** No title prescribed in Sch. VI. But in practice the title “Tangible Assets” was used to differentiate from Intangible assets Non current Assets 39 www.carajkumarradukia.com

40. Fixed Assets – Classification of Intangible Assets Revised Format 2) Intangible Assets 1. Goodwill 2. Brands / trademarks 3. Computer Software 4. Mastheads & publishing titles 5. Mining rights 6. Copyrights & patents & other intellectual property rights, services & operating rights Current Format 2) *** 1. Goodwill 2. Trademarks 3. ---- 4. ---- 5. ---- 6. Patents *** No title prescribed in Sch. VI. But in practice the title “Tangible Assets” was used to differentiate from Intangible assets Non current Assets 40 www.carajkumarradukia.com

41. Fixed Assets – Classification of Intangible Assets Revised Format 7. Recipes, formulae, models, designs and prototypes 8. Licenses and franchise 9. Others Current Format 7. Designs 8. ---- Non current Assets 41 www.carajkumarradukia.com

42. Fixed Assets – Work-in-progress Revised Format 3) Capital WIP 4) Intangible Assets under dev Current Format 3) Capital WIP 4) ---- Non current Assets 42 www.carajkumarradukia.com

43. Fixed Assets – Revaluation of Assets Revised Format 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. Current Format Where sums have been written off on a reduction of capital or a revaluation of assets, every balance sheet, (after the first balance sheet) subsequent to the reduction or revaluation shall show the reduced figures and with the date of the reduction in place of the original cost. Each balance sheet for the first five years subsequent to the date of the reduction, shall show also the amount of the reduction made. Similarly, where sums have been added by writing up the assets, every balance sheet subsequent to such writing up shall show the increased figures with the date of the increase in place of the original cost. Each balance sheet for the first five years subsequent to the date of writing up shall also show the amount of increase made. Non current Assets No change in substance - only the language is modified 43 www.carajkumarradukia.com

44. Fixed Assets – Reconciliation of Assets Revised Format A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately. Current Format Under each head the original cost and the additions thereto and deductions there from during the year, and the total depreciation written off or provided up to the end of the year to be stated. Non current Assets 44 www.carajkumarradukia.com

45. Investments Revised Format Non Current Investments Classification I Trade Investments Non-trade Investments Classification II (a) Investment 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) ---- (i) Other non-current investments (specify nature). Current Format Investments Classification I Trade Investments Non-trade Investments Classification II a) Immovable Properties b) Investments in shares @, $ c) ---- d) Investments in Govt. or Trust securities e) Investments in debentures or bonds @ f) ---- g) Inv. in the capital of the partnership firms h) Balance of unutilized monies raised by issue Non current Assets $- Distinguish class of shares and Partly/Fully paid share @- Investments in subsidiaries, shown separately 45 www.carajkumarradukia.com

46. Investments – Disclosures Revised Format Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are  subsidiaries,  associates,  joint ventures, or  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. Current Format A statement of investments showing the names of the bodies corporate (indicating separately ) the names of the bodies corporate under the same management in whose shares or debentures, investments have been made (including all investments, whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and the nature and extent of the investment so made in each such body corporate; In regard to the 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 in the statement. Non current Assets @- In the current format disclosure required Only for partly paid shares. 46 www.carajkumarradukia.com

47. Disclosure of investment movements dispensed Current Format A statement of investments (whether shown under “Investment” or under “Current Asset” as stock –in-trade) separately classifying trade investments and other investments should be annexed to the balance sheet, showing the names of the bodies corporate (indicating separately the names of the bodies corporate under the same management) in whose shares or debentures, investments have been made (including all investments, whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and the nature and extent of the investment so made in each body corporate. In the case of an investment company, that is to say, a company whose principal business is the acquisition of shares, stock, debentures or other securities, it shall be sufficient if the statement shows only the investments existing on the date as at which the balance sheet has been made out. Revised Format The revised format does not contemplate movement of investments for any category of the companies. 47 www.carajkumarradukia.com

48. Investments – Details required to be given Revised Format Investments carried at other than 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 Refer paragraph V of the revised schedule VI for the note to be given. Current Format Nature of investments and mode of valuation to be shown separately Aggregate amount of company's quoted investment and also the market value thereof shall be shown. Aggregate amount of company's unquoted investments shall also be shown. All unutilized monies out of the issue must be separately disclosed in the balance sheet of the company indicating the form in which such unutilized funds have been invested Non current Assets 48 www.carajkumarradukia.com

49. Deferred Tax Assets Revised format Deferred Tax Assets (Net) Current Format ---- Non current Assets Accounting Standard 22 explains the same presentation 49 www.carajkumarradukia.com

50. Long term loans and advances - Classification Revised format Long term loans and advances Classification I (i) Capital Advances; (ii) Security Deposits; (iii) Loans and advances to related parties (giving details thereof); (iv) ---- (v) Other loans and advances (specify nature ). Current Format Loans and advances *** Classification I (i) ---- (ii) ---- (iii) Advances and loans to subsidiaries (iiia)Advances and loans to partnership firms in which the company or any of its subsidiaries is a partner (iv) Bills of Exchanges (v) Advances Recoverable in cash or kind or for value to be received e.g. rates, taxes, insurance etc (vi) Balance with customs, Port Trust etc (where payable on demands) Non current Assets *** No bifurcation between long term and short term loans and advances on the face of Balance Sheet 50 www.carajkumarradukia.com

51. Long term loans and advances - Classification Revised format Classification II (i) secured, considered good (ii) unsecured, considered good (iii) doubtful Current Format Classification II (i) secured, considered good (ii) unsecured, considered good (iii) doubtful Non current Assets 51 www.carajkumarradukia.com

52. Loans and advances - disclosures Revised format 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  amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. In the revised format the disclosure of maximum amount has been dispensed Current Format 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  amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. The maximum amount due by directors or other officers of the company at any time during the year to be shown by way of a note. Non current As sets 52 www.carajkumarradukia.com

53. Loans and advances - disclosures Revised format This disclosure has been dispensed in the revise format. Current Format Loans and advances due from other companies under the same management within the meaning of sub-section (1B) of section 370, to be disclosed with the names of the companies. Maximum amount due from each such company Non current Assets 53 www.carajkumarradukia.com

54. Value on realization in the ordinary course of business Revised format If, in the opinion of the Board, any of the assets other than fixed assets and non-current investments do not have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion, shall be stated. Current Format If, in the opinion of the Board, any of the current assets, loans and advances have not value on realisation in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion shall be stated. Non current Assets 54 www.carajkumarradukia.com

55. Other non current assets Revised Format Classification I (a) Long-term Trade Receivables (including trade receivables on deferred credit terms); ( b)Others (specify nature); Classification II ( For Trade Receivables) (a) Secured, considered good; (b) Unsecured considered good; ( c) Doubtful  Allowance for bad and doubtful debts to be disclosed under the relevant head separately  Due from directors or any other officers of the company or any of them either severally or jointly with any person or debts due by firms or private companies respectively in which any director is a partner or a director or a member to be separately stated. Current Format The category ‘Other Non Current Asset’ does not exist. Non current Assets 55 www.carajkumarradukia.com

56. Current Assets ( On the face of Balance Sheet ) Revised format Current Assets 1. Current Investments 2. Inventories 3. Trade Receivables 4. Cash and Cash Equivalents 5. Short term Loans and Advances 6. Other Current Assets Current Format Current Assets 1. ---- 2. Inventories 3. Sundry Debtors 4. Cash and bank balances 5. ---- 6. Other Current Assets Current Assets 56 www.carajkumarradukia.com

57. Current Investments - Classification Revised format Current Investments Primary Classification No such classification Secondary classification (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). Current Format Investments Primary Classification Trade Investments Non-trade Investments Secondary classification (a) Immovable Properties (b) Investments in shares (c) Investments in shares (d) Investments in Govt. or Trust securities (e) Investments in debentures or bonds (f) Inv. in the capital of the partnership firms (g) Balance of unutilized monies raised by issue Current Assets 57 www.carajkumarradukia.com

58. Inventories - Classification Revised format Inventories (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. (For all items of inventories) Current Format Inventories (a) Raw materials; (b) Work-in-progress; (c) Finished goods; (d) Stock-in-trade (e) Stores and spares; (f) Loose tools; (g) Others (specify nature). Mode of valuation of stock shall be stated and the amount in respect of raw material shall also be stated separately where practicable. Mode of valuation of works-in-progress shall be stated. Current Assets 58 www.carajkumarradukia.com

59. Trade Receivables - Classification Revised format Trade Receivables Classification I 1. outstanding for > 6 months 2. others Classification II 1. secured, considered good 2. unsecured, considered good 3. doubtful Note : Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. Current Format Sundry Debtors Classification II 1 outstanding for > 6 months 2. others Classification II 1. secured, considered good 2. unsecured, considered good 3. doubtful Note : Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. Current Assets 59 www.carajkumarradukia.com

60. Trade Receivables - Disclosures Revised format Debts due by  directors or  other officers of the company or  any of them either severally or jointly with any other person or  amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. In the revised format the disclosure of maximum amount has been dispensed Current Format Debts due by  directors or  other officers of the company or  any of them either severally or jointly with any other person or  amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. The maximum amount due by directors or other officers of the company at any time during the year to be shown by way of a note. Non current Assets 60 www.carajkumarradukia.com

61. Trade Receivables - Disclosures Revised format This disclosure has been dispensed in the revise format. Current Format Debts due from other companies under the same management within the meaning of sub-section (1B) of section 370, to be disclosed with the names of the companies. Non current Assets 61 www.carajkumarradukia.com

62. Trade Receivables/ Sundry debtors – definition modified Revised format 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. Current Format The amounts to be shown under Sundry Debtors shall include the amounts due in respect of goods sold or services rendered or in respect of other contractual obligations but shall not include the amounts which are in the nature of loans or advances. Current Assets 62 www.carajkumarradukia.com

63. Cash and cash equivalents - Classification Revised format Cash and Cash equivalents (a) Balances with banks; (b) Cheques, drafts on hand; (c) Cash on hand; (d) Others (specify nature). Current Format Cash Balance on hand Bank balances 1. with schedule banks 2. with others Current Assets 63 www.carajkumarradukia.com

64. Cash and cash equivalents - Disclosures Revised format Balances with the bank Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. Bank deposits with more than 12 months maturity shall be disclosed separately. Current Format Bank The balances lying with Scheduled Banks on current accounts, call accounts, and deposit accounts, The names of the bankers other than Scheduled Banks and the balance lying with each such banker on current accounts, call accounts and deposit accounts and the maximum amount outstanding at any time during the year from each such banker; and The nature of the interest, if any, of any director or his relative in each of the bankers (other than Scheduled Banks) referred to in above Current Assets 64 www.carajkumarradukia.com

65. Short term loans and advances - Classification Revised format Short term loans and advances Classification I (a) Loans and advances to related parties (giving details thereof); (b) Others (specify nature). Classification II (a) Secured, considered good; (b) Unsecured, considered good; (c) Doubtful. Note : Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. Current Format Loans and advances *** Classification I (ii) Balance with customs authority or Trust (iii) Loans to subsidiaries (iv) Bills of Exchanges Classification II (a) Secured, considered good; (b) Unsecured, considered good; (c) Doubtful. *** No bifurcation between long term and short term loans and advances on the face of Balance Sheet Current Assets 65 www.carajkumarradukia.com

66. Item head of current format (Assets) omitted in revised format Revised format ---- 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. Current Format Miscellaneous Expenditure (1)Preliminary expenses. (2) Expenses including commission on brokerage on underwriting or subscription of shares or debentures. (3) Discount allowed on the issue of shares or debentures. (4) Interest paid out of capital during construction (also stating the rate of interest). (5) Development expenditure not adjusted. (6) Other items (specifying nature), Profit & Loss Account (Debit Balance) The debit balance in the Profit and Loss Account shall be shown as a deduction from the uncommitted reserves, if any. Current Assets 66 www.carajkumarradukia.com

67. Conceptual Changes The term profit and loss account is changed to profit and loss statement The format is prescribed Many redundant disclosures of current schedule VI dispensed Quantitative information of raw material consumption, production, sales and stocks dispensed Profit And Loss Statement 67 www.carajkumarradukia.com

68. Profit & Loss Statement Note Figures for Figures for No. Current previous reporting reporting period period I) Revenue From Operations II) Other incomes Total Revenue III) Expenses Cost of Materials Consumed Purchases of Stock in trade Changes in Inventories of finished goods, WIP, and stock in trade Employee benefits expenses Finance Cost Depreciation and Amortization Exp Other Expenses Total Expenses 68 www.carajkumarradukia.com

69. Profit & Loss Statement Note No. Fig for curr. Fig. for the Rep. period Pre.rep per V) Profits before exceptional & extraordinary items and tax ( III – IV ) VI) Exceptional items VII) Profits before extraordinary items and tax ( V – VI ) VIII) Extraordinary items IX) Profits before tax (VII – VIII ) X) Tax expense 1) Current Tax 2) Deferred Tax 69 www.carajkumarradukia.com

70. Profit & Loss Statement Note Figures for the Figures for the No. Current reporting previous period reporting period XI) Profits/ (loss) for the period from continuing operations (VII – VIII ) XII) Profit/(loss) from discontinuing operations XIII) Tax Expense of discontinuing operations XIV) Profits/ (loss) from discontinuing operations (after tax) ( XII – XIII) XV) Profits and loss for the period (XI – XIV ) XVI) Earnings per equity share 1. Basic 2. Diluted 70 www.carajkumarradukia.com

71. Disclosures - Revenue Revised Format (A) In respect of a company other than finance company, revenue from operations shall include revenue from (a) sale of products; (b) sale of services; (c) other operating revenues; 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. Current Format The turnover, that is, the aggregate amount for which sales are effected by the company, giving the amount of sales in respect of each class of goods dealt with by the company, and indicating the quantities of such sales for each class separately Profit & Loss Statement Sales quantity disclosure dispensed in the revised format 71 www.carajkumarradukia.com

72. Disclosures – Other Income Revised Format Interest Income (in case of a company other than a finance company) Dividend Income (Dividend from subsidiaries to be disclosed separately) Net gain/loss on sale of investments Other non-operating income (net of expenses directly attributable to such income) Current Format The amount of income from investments, distinguishing between trade investments and other investments. Other income by way of interest, specifying the nature of the income Dividend from subsidiary companies Profit or losses on investments (showing distinctly the extent of the profits or losses earned or incurred on account of membership of a partnership firm) (to the extent not adjusted from any previous provision or reserve Profit & Loss Statement Interest, dividend and gain/loss on sale of investments are also specified as items of separate disclosure otherwise than other income – seems to be for finance companies. 72 www.carajkumarradukia.com

73. Disclosures – Extraordinary Items/Miscellaneous Income Revised Format Extraordinary Items Details of items of exceptional and extraordinary nature Miscellaneous Income Any item of income or expenditure which exceeds !% of the revenue from operations or Rs..100000 whichever is higher. requires separate disclosure. Current Format Extraordinary items Profit or losses in respect of transactions of a kind, not usually undertaken by the company or undertaken in circumstances of an exceptional or non-recurring nature, if material in amount. Miscellaneous Income No prescribed limit Profit & Loss Statement 73 www.carajkumarradukia.com

74. Revised Format In the case of manufacturing companies,- (1) Raw materials under broad heads. (2) goods purchased under broad heads. In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. In the case of companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads. In the case of other companies, gross income derived under broad heads. Current Format In case of manufacturing company : The value of the raw materials consumed, giving item-wise break-up and indicating the quantities thereof @ The opening and closing stocks of goods produced, giving break-up in respect of each class of goods and indicating the quantities thereof. @ In the case of trading companies, the purchases made and the opening and closing stocks, giving break-up in respect of each class of goods traded in by the company and In the case of companies rendering or supplying services, the gross income derived from services rendered or supplied. In the case of other companies, gross income derived under broad heads. Disclosures – Quantity Information Dispensed Profit & Loss Statement @ - In the current format the term principal items is used which is defined to mean 10% of aggregate value Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements. 74 www.carajkumarradukia.com

75. Additional Information - Disclosures Revised Format 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]. Depreciation and amortization expense; Current Format Salaries, wages and bonus. Contribution to provident and other funds. Workmen and staff welfare expenses [to the extent not adjusted from any previous provision or reserve. The amount provided for depreciation, renewals or diminution in value of fixed assets. If no provision is made the fact shall be stated Profit & Loss Statement 75 www.carajkumarradukia.com

76. Additional information - Disclosures (a) Consumption of stores and spare parts. (b) Power and fuel. (c) Rent. (d) Repairs to buildings. (e) Repairs to machinery. (f) Insurance. (g) Rates and taxes, excluding, taxes on income. (h) Miscellaneous expenses. Any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs.1,00,000, whichever is higher; (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 (if expense = 1% of revenue or > ` 5,000 whichever is higher, to be shown under a separate head) Profit & Loss Statement 76 www.carajkumarradukia.com

77. Additional Information - Disclosures Revised Format 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; Prior period items; Current Format Payments to the auditor as  (a) as auditor;  ( b) as adviser, or in any other capacity, in respect of  (i)taxation matters;  (ii)company law matters;  (iii) management services; and  (c) in any other manner]. ----- Profit & Loss Statement 77 www.carajkumarradukia.com

78. Additional information - Disclosures Revised Format 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; Expenditure in foreign currency during the financial year on account of royalty, know- how, professional and consultation fees, interest, and other matters; 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; Current Format 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; Expenditure in foreign currency during the financial year on account of royalty, know- how, professional and consultation fees, interest, and other matters; Value of all imported raw materials, spare parts and components consumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; Profit & Loss Statement 78 www.carajkumarradukia.com

79. Additional information - Disclosures Revised Format 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; 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 Current Format The amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the number of non-resident shareholders, the number of shares held by them on which the dividends were due and the year to which the dividends related; 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. Profit & Loss Statement 79 www.carajkumarradukia.com

80. Disclosures Transfer (to/from) Reserves & Provisions - Rules unchanged Revised Format 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. The aggregate, if material, of any amounts withdrawn from such reserves. The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required Current Format The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserves, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as at which the balance sheet is made up. The aggregate, if material, of any amounts withdrawn from such reserves. The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. Profit & Loss Statement 80 www.carajkumarradukia.com

81. Disclosures – New Items Adjustments to the carrying amount of investments Net gain/loss on foreign currency transaction and translation (other than considered as finance cost) Prior Period Items Details of items of exceptional and extraordinary nature Finance costs to be classified as  Interest Expense  Other borrowing costs  Applicable net gain/loss on foreign currency transactions and translation. Profit & Loss Statement The disclosure as per the current format to the effect that the amount of interest on the company’s debentures and other fixed loans (loans for fixed period), stating separately the amount of interest to the managing director and the manager, if any. has been dispensed 81 www.carajkumarradukia.com

82. Disclosure of Managerial Remuneration and Retirement benefits Dispensed Managerial remuneration under section 198 of the Act paid or payable during the financial year to the directors (including managing directors), or manager, if any; Other allowances and commission including guarantee commission (details to be given);] Any other perquisites or benefits in cash or in kind (stating approximate money value where practicable); Statement showing the computation of net profits in accordance with section 349 of the Act with relevant details of the calculation of the commissions payable by way of percentage of such profits to the directors (including managing directors) or manager (if any). Retirement Benefits (a) pensions, (b) gratuities, (c) payments from provident funds, in excess of own subscriptions and interest thereon, (d) compensation for loss of office, (e) consideration in connection with retirement from office Current Format Profit & Loss Statement 82 www.carajkumarradukia.com

83. Disclosures – Items Dropped in the revised format Commission paid to sole selling agents within the meaning of sec 294 of the Act. Commission paid to other selling agents. Brokerage and discount on sales, other than the usual trade discount. The amount reserved for  Repayment of share capital  Repayment of loans The aggregate amount of the dividends paid and proposed, and stating whether such amounts are subject to deduction of income-tax or not. Amount, if material, by which any items shown in the profit and loss account are affected by any change in the basis of accounting. Details of licensed capacity, installed capacity and actual production. PART III of current schedule VI explaining the meaning of expressions ‘provision’, ‘reserve’, ‘capital reserve’ and ‘quoted investments’. PART IV comprising of Balance sheet and company’s general business profile Profit & Loss Statement 83 www.carajkumarradukia.com

84. Comments..?

85. T H A N K Y O U 85 www.carajkumarradukia.com