ScheduleVI Companies Act 1956

8/3/2019 ScheduleVI Companies Act 1956

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SCHEDULE VI(See section 211)

GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEETAND STATEMENT OF PROFIT AND LOSS OF A COMPANY IN ADDITION

TO THE NOTES INCORPORATED ABOE THE HEADING OF BALANCE

SHEET UNDER

GENERAL INSTRUCTIONS

1. Where compliance with the requirements of the Act including AccountingStandards as applicable to the companies require any change in treatment ordisclosure including addition, amendment, substitution or deletion in thehead/sub-head or any changes interse, in the financial statements or statements

forming part thereof, the same shall be made and the requirements of theSchedule V shall stand modified accordingly.

!. "he disclosure requirements specified in #art and #art of this Schedule are inaddition to and not in substitution of the disclosure requirements specified in theAccounting Standards prescribed under the $ompanies Act, 1%&'. Additionaldisclosures specified in the Accounting Standards shall be made in the notes toaccounts or by way of additional statement unless required to be disclosed onthe face of the (inancial Statements. Similarly, all other disclosures as requiredby the $ompanies Act shall be made in the notes to accounts in addition to therequirements set out in this Schedule.

). *otes to accounts shall contain information in addition to that presented in the(inancial Statements and shall pro+ide where required a narrati+e descriptionsor disaggregations of items recognied in those statements and b informationabout items that do not qualify for recognition in those statements.

ach item on the face of the 0alance Sheet and Statement of #rofit and ossshall be cross-referenced to any related information in the notes to accounts. npreparing the (inancial Statements including the notes to accounts, a balanceshall be maintained between pro+iding e2cessi+e detail that may not assist usersof financial statements and not pro+iding important information as a result of too

much aggregation.3. 4epending upon the turno+er of the company, the figures appearing in the

(inancial Statements may be rounded off as below5

T!"no#e" Ro!n$in% o&&

i less than one hundred crorerupees

"o the nearest hundreds, thousands,la6hs or millions, or decimals thereof.


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ii one hundred crore rupees ormore

"o the nearest, la6hs, millions or crores,or decimals thereof.

7nce a unit of measurement is used, it should be used uniformly in the (inancialStatements.

&. 2cept in the case of the first (inancial Statements laid before the $ompany after itsincorporation the corresponding amounts comparati+es for the immediately

preceding reporting period for all items shown in the (inancial Statements includingnotes shall also be gi+en.

'. (or the purpose of this Schedule, the terms used herein shall be as per theapplicable Accounting Standards.

*otes

"his part of Schedule sets out the minimum requirements for disclosure on the face of

the 0alance Sheet, and the Statement of #rofit and oss hereinafter referred to as8(inancial Statements9 for the purpose of this Schedule and *otes. ine items, sub-lineitems and sub-totals shall be presented as an addition or substitution on the face of the(inancial Statements when such presentation is rele+ant to an understanding of thecompany:s financial position or performance or to cater to industry/sector-specificdisclosure requirements or when required for compliance with the amendments to the$ompanies Act or under the Accounting Standards.

PART I ' Fo"( o& BALANCE SHEET

*ame of the $ompany;;;;;;;;.0alance Sheet as at ;;;;;;;;;


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I+

1

!

)

3

E.UITY AND LIABILITIES

S,"e,o*$e"s/ &!n$s

a Share capitalb


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Notes

GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET

1. An asset shall be classified as current when it satisfies any of thefollowing criteria5

(a) it is e2pected to be realied in, or is intended for sale or consumption in, thecompany:s normal operating cycle>

(b) it is held primarily for the purpose of being traded>(c) it is e2pected to be realied within twel+e months after the reporting date> or(d) it is cash or cash equi+alent unless it is restricted from being e2changed or

used to settle a liability for at least twel+e months after the reporting date.

All other assets shall be classified as non-current.

!. An operating cycle is the time between the acquisition of assets for

processing and their realiation in cash or cash equi+alents. Where the normaloperating cycle cannot be identified, it is assumed to ha+e a duration of 1!months.

). A liability shall be classified as current when it satisfies any of thefollowing criteria5

(a) it is e2pected 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 twel+e months after the reporting date> or(d) the company does not ha+e an unconditional right to defer settlement of the

liability for at least twel+e months after the reporting date. "erms of a liabilitythat could, at the option of the counterparty, result in its settlement by theissue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.

3. A recei+able shall be classified as a ?trade recei+able: if it is in respect ofthe amount due on account of goods sold or ser+ices rendered in the normalcourse of business.

&. A payable shall be classified as a ?trade payable: if it is in respect of theamount due on account of goods purchased or ser+ices recei+ed in the normal

course of business.

'. A company shall disclose the following in the notes to accounts5

A. Share $apitalfor each class of share capital different classes of preference shares to betreated separately5


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(a) the number and amount of shares authoried>(b) the number of shares issued, subscribed and fully paid, and

subscribed but not fully paid>(c) par +alue per share>(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 ofshares including restrictions on the distribution of di+idends and therepayment of capital>

(f) shares in respect of each class in the company held by its holdingcompany or its ultimate holding company including shares held byor by subsidiaries or associates of the holding company or theultimate holding company in aggregate>

(g) shares in the company held by each shareholder holding more than& percent shares specifying the number of shares held>

(h) shares reser+ed for issue under options and contracts/commitmentsfor the sale of shares/disin+estment, including the terms and

amounts>(i) (or the period of fi+e years immediately preceding the date as at

which the 0alance Sheet is prepared5

Aggregate number and class of shares allotted as fully paid uppursuant to contracts without payment being recei+ed in cash.

Aggregate number and class of shares allotted as fully paid up byway of bonus shares.

Aggregate number and class of shares bought bac6.

(j) "erms of any securities con+ertible into equity/preference shares

issued along with the earliest date of con+ersion in descendingorder starting from the farthest such date.

(k) $alls unpaid showing aggregate +alue of calls unpaid by directorsand officers

(l) (orfeited shares amount originally paid up

0.


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h Surplus i.e. balance in Statement of #rofit ossdisclosing allocations and appropriations such as di+idend,bonus shares and transfer to/from reser+es etc.

Additions and deductions since last balance sheet to be shownunder each of the specified heads

ii A reser+e specifically represented by earmar6ed in+estments shallbe termed as a ?fund:.

iii 4ebit balance of statement of profit and loss shall be shown as anegati+e figure under the head ?Surplus:. Similarly, the balance of?


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+ii #eriod and amount of continuing default as on the balance sheetdate in repayment of loans and interest, shall be specifiedseparately in each case.

D. 7ther ong "erm iabilities7ther ong term iabilities shall be classified as5

a "rade payablesb 7thers

. ong-term pro+isions

"he amounts shall be classified as5

(a) #ro+ision for employee benefits.(b) 7thers specify nature.

(. Short-term borrowings

i Short-term borrowings shall be classified as5

(a) oans repayable on demand from ban6s. from other parties.

(b) oans and ad+ances from related parties.(c) 4eposits.(d) 7ther loans and ad+ances specify nature.


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(ii) 0orrowings shall further be sub-classified as secured and unsecured. *ature ofsecurity shall be specified separately in each case.

(iii) Where loans ha+e been guaranteed by directors or others, the aggregateamount of such loans under each head shall be disclosed.

i+ #eriod and amount of default as on the balance sheet date inrepayment of loans and interest, shall be specified separately ineach case.

C. 7ther current liabilities

"he amounts shall be classified as5

(a) $urrent maturities of long-term debt>(b) $urrent maturities of finance lease obligations>(c) nterest accrued but not due on borrowings>

(d) nterest accrued and due on borrowings>(e) ncome recei+ed in ad+ance>

f Dnpaid di+idendsg Application money recei+ed for allotment of securities and due for

refund and interest accrued thereon. Share application moneyincludes ad+ances towards allotment of share capital. "he termsand conditions including the number of shares proposed to beissued, the amount of premium ,if any, and the period beforewhich shares shall be allotted shall be disclosed. t shall also bedisclosed whether the company has sufficient authoried capital toco+er the share capital amount resulting from allotment of shares

out of such share application money. (urther, the period for whichthe share application money has been pending beyond the periodfor allotment as mentioned in the document in+iting applicationfor shares along with the reason for such share application moneybeing pending shall be disclosed. Share application money note2ceeding the issued capital and to the e2tent not refundable shallbe shown under the head quity and share application money tothe e2tent refundable i.e., the amount in e2cess of subscription orin case the requirements of minimum subscription are not met,shall be separately shown under ?Ether current liabilities:

h Dnpaid matured deposits and interest accrued thereoni Dnpaid matured debentures and interest accrued thereon

B 7ther payables specify nature>

F. Short-term pro+isions"he amounts shall be classified as5


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(a) #ro+ision for employee benefits.(b) 7thers specify nature.

. "angible assets

i $lassification shall be gi+en as5a and.b 0uildings.c #lant and quipment.d (urniture and (i2tures.e Vehicles.f 7ffice equipment.g 7thers specify nature.

ii Assets under lease shall be separately specified under each classof asset.

iii A reconciliation of the gross and net carrying amounts of eachclass of assets at the beginning and end of the reporting periodshowing additions, disposals, acquisitions through businesscombinations and other adBustments and the related depreciationand impairment losses/re+ersals shall be disclosed separately.

i+ Where sums ha+e been written off on a reduction of capital orre+aluation of assets or where sums ha+e been added onre+aluation of assets, e+ery balance sheet subsequent to date ofsuch write-off, or addition shall show the reduced or increasedfigures as applicable and shall by way of a note also show the

amount of the reduction or increase as applicable together withthe date thereof for the first fi+e years subsequent to the date ofsuch reduction or increase.

G. ntangible assets

i $lassification shall be gi+en as5a Coodwill.


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b 0rands /trademar6s.c $omputer software.d =astheads and publishing titles.e =ining rights.f $opyrights, and patents and other intellectual property

rights, ser+ices and operating rights.g b n+estments in quity nstruments>c n+estments in preference sharesd n+estments in Co+ernment or trust securities>e n+estments in debentures or bonds>f n+estments in =utual (unds>g n+estments in partnership firms


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h 7ther non-current in+estments specify nature

Dnder each classification, details shall be gi+en of names of the bodiescorporate indicating separately whether such bodies are isubsidiaries, ii associates, iii Boint +entures, or i+ controlledspecial purpose entities in whom in+estments ha+e been madeand the nature and e2tent of the in+estment so made in eachsuch body corporate showing separately in+estments which arepartly-paid. n regard to in+estments in the capital of partnershipfirms, the names of the firms with the names of all their partners,total capital and the shares of each partner shall be gi+en.

ii n+estments carried at other than at cost should be separately statedspecifying the basis for +aluation thereof.

iii "he following shall also be disclosed5

(a) Aggregate amount of quoted in+estments and mar6et +alue thereof>(b)Aggregate amount of unquoted in+estments>(c) Aggregate pro+ision for diminution in +alue of in+estments

. ong-term loans and ad+ances

i ong-term loans and ad+ances shall be classified as5

a $apital Ad+ances>b Security 4eposits>c oans and ad+ances to related parties gi+ing details

thereof>d 7ther loans and ad+ances specify nature.

ii "he abo+e shall also be separately sub-classified as5

a Secured, considered good>


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b Dnsecured, considered good>c 4oubtful.

iii Allowance for bad and doubtful loans and ad+ances shall bedisclosed under the rele+ant heads separately.

i+ oans and ad+ances due by directors or other officers of thecompany or any of them either se+erally or Bointly with any otherpersons or amounts due by firms or pri+ate companiesrespecti+ely in which any director is a partner or a director or amember should be separately stated.

=. 7ther non-current assets

7ther non-current assets shall be classified as5

(i) ong "erm "rade

(ii) 7thers specify nature

iii ong term "rade bDnsecured considered good> c4oubtful

ii Allowance for bad and doubtful debts shall be disclosed underthe rele+ant heads separately.

iii 4ebts due by directors or other officers of the company or anyof them either se+erally or Bointly with any other person or debtsdue by firms or pri+ate companies respecti+ely in which anydirector is a partner or a director or a member should beseparately stated.


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*. $urrent n+estments

i $urrent in+estments shall be classified as5

a n+estments in quity nstruments>b n+estment in #reference Shares

c n+estments in go+ernment or trust securities>d n+estments in debentures or bonds>

e n+estments in =utual (unds>f n+estments in partnership firmsg 7ther in+estments specify nature.

Dnder each classification, details shall be gi+en of names of the bodies corporateindicating separately whether such bodies are i subsidiaries, iiassociates, iii Boint +entures, or i+ controlled special purposeentities in whom in+estments ha+e been made and the natureand e2tent of the in+estment so made in each such body

corporate showing separately in+estments which are partly-paid.n regard to in+estments in the capital of partnership firms, thenames of the firms with the names of all their partners, totalcapital and the shares of each partner shall be gi+en.

ii "he following shall also be disclosed5

(a) "he basis of +aluation of indi+idual in+estments(b) Aggregate amount of quoted in+estments and mar6et +alue thereof>(c) Aggregate amount of unquoted in+estments>(d) Aggregate pro+ision made for diminution in +alue of in+estments.

7. n+entoriesi n+entories shall be classified as5


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a b Wor6-in-progress>c (inished goods>d Stoc6-in-trade in respect of goods acquired for trading>e Stores and spares>f oose tools>g 7thers specify nature.

ii Coods-in-transit shall be disclosed under the rele+ant sub-head ofin+entories.

iii =ode of +aluation shall be stated.

#. "rade b Dnsecured considered good>c 4oubtful.

iii Allowance for bad and doubtful debts shall be disclosed under therele+ant heads separately.


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i+ 4ebts due by directors or other officers of the company or any ofthem either se+erally or Bointly with any other person or debts dueby firms or pri+ate companies respecti+ely in which any director isa partner or a director or a member should be separately stated.

I. $ash and cash equi+alents

i $ash and cash equi+alents shall be classified as5a 0alances with ban6s>b $heques, drafts on hand>c $ash on hand>

d 7thers specify nature.

ii armar6ed balances with ban6s for e2ample, for unpaiddi+idend shall be separately stated.

iii 0alances with ban6s to the e2tent held as margin money or

security against the borrowings, guarantees, other commitmentsshall be disclosed separately.

i+


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ii "he abo+e shall also be sub-classified as5

a Secured, considered good>b Dnsecured, considered good>c 4oubtful.

iii Allowance for bad and doubtful loans and ad+ances shall bedisclosed under the rele+ant heads separately.

i+ oans and ad+ances due by directors or other officers of thecompany or any of them either se+erally or Bointly with any otherperson or amounts due by firms or pri+ate companiesrespecti+ely in which any director is a partner or a director or amember shall be separately stated.

S. 7ther current assets specify nature.

"his is an all-inclusi+e heading, which incorporates current assets that donot fit into any other asset categories.

". $ontingent liabilities and commitmentsto the e2tent not pro+ided fori $ontingent liabilities shall be classified as5

a $laims against the company not ac6nowledged as debt>b Cuarantees>c 7ther money for which the company is contingently liable

ii $ommitments shall be classified as5


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(a) stimated amount of contracts remaining to be e2ecuted on capital account andnot pro+ided for>

(b) Dncalled liability on shares and other in+estments partly paid

(c) 7ther commitments specify nature.D. "he amount of di+idends proposed to be distributed to equity and

preference shareholders for the period and the related amount per shareshall be disclosed separately. Arrears of fi2ed cumulati+e di+idends onpreference shares shall also be disclosed separately.

V. Where in respect of an issue of securities made for a specific purpose, thewhole or part of the amount has not been used for the specific purposeat the balance sheet date, there shall be indicated by way of note howsuch unutilied amounts ha+e been used or in+ested.

W. f, in the opinion of the 0oard, any of the assets other than fi2ed assets andnon-current in+estments do not ha+e a +alue on realiation in theordinary course of business at least equal to the amount at which theyare stated, the fact that the 0oard is of that opinion, shall be stated.


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PART II ' Fo"( o& STATEMENT OF PROFIT AND LOSS

*ame of the $ompany;;;;;;;;.#rofit and loss statement for the year ended ;;;;;;;;;


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K #rofit oss for the period fromcontinuing operations V-V

222 K22

K #rofit/loss from discontinuingoperations

222 K22

K "a2 e2pense of discontinuingoperations

222 K22

KV #rofit/loss from 4iscontinuingoperations after ta2 K-K

222 K22

KV #rofit oss for the period K J KV 222 222

KV arnings per equity share51 0asic

! 4iluted

222

222

222

222See cco-n0in% notes to t,e &innci* stteents


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GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFITAND LOSS

1. "he pro+isions of this #art shall apply to the income and e2penditure accountreferred to in sub-section ! of Section !1L of the Act, in li6e manner as theyapply to a statement of profit and loss.

!. A n respect of a company other than a finance company re+enue fromoperations shall disclose separately in the notes re+enue from

a sale of products>b sale of ser+ices>c other operating re+enues>ess5d 2cise duty.

0 n respect of a finance company, re+enue from operations shall includere+enue from

a nterest> andb 7ther financial ser+ices

b 7ther borrowing costs>c Applicable net gain/loss on foreign currency transactions andtranslation.

3. 7ther income


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7ther income shall be classified as5a nterest ncome in case of a company other than a financecompany>b 4i+idend ncome>c *et gain/loss on sale of in+estmentsd 7ther non-operating income net of e2penses directly attributable

to such income.

&. Additional nformationA $ompany shall disclose by way of notes additional information regardingaggregate e2penditure and income on the following items5-

i amployee 0enefits 2pense Mshowing separately i salaries andwages, ii contribution to pro+ident and other funds, iii e2pense onmployee Stoc6 7ption Scheme S7# and mployee Stoc6 #urchase #lanS##, i+ staff welfare e2pensesN.

b4epreciation and amortiation e2pense>cAny item of income or e2penditure which e2ceeds one per cent of there+enue from operations or d nterest ncome>e nterest 2pense>f 4i+idend ncome>g *et gain/ loss on sale of in+estments>h AdBustments to the carrying amount of in+estments>

i*et gain or loss on foreign currency transaction and translation other than

considered as finance cost>

B#ayments to the auditor as aL auditor,bL for ta2ation matters, c for

company law matters, d for management ser+ices, e for other ser+ices, f for

reimbursement of e2penses>

6 4etails of items of e2ceptional and e2traordinary nature>

l #rior period items>

ii a n the case of manufacturing companies,-


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(1)


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+ii a 4i+idends from subsidiary companies.

b #ro+isions for losses of subsidiary companies.

Viii "he profit and loss account shall also contain by way of a note thefollowing information, namely5-

a) Value of imports calculated on $..( basis by the company during the financialyear in respect of @I. II. $omponents and spare parts>III. $apital goods>

b) 2penditure in foreign currency during the financial year on account of royalty,6now-how, professional and consultation fees, interest, and other matters>

c) "otal +alue if all imported raw materials, spare parts and components consumedduring the financial year and the total +alue of all indigenous raw materials,spare parts and components similarly consumed and the percentage of each tothe total consumption>

d) "he amount remitted during the year in foreign currencies on account ofdi+idends with a specific mention of the total number of non-residentshareholders, the total number of shares held by them on which the di+idendswere due and the year to which the di+idends related>

e) arnings in foreign e2change classified under the following heads, namely5-

I. 2port of goods calculated on (.7.0. basis>

II. III. nterest and di+idend>IV. 7ther income, indicating the nature thereof

Note3B"o$ ,e$s s,** e $eci$e$ t4in% into cco!nt t,e conce-t o&te"i*it0 n$ -"esenttion o& t"!e n$ &i" #ie5 o& &innci*stteents67+

Documents

ScheduleVI Companies Act 1956