specialization in companies act 2013

8/13/2019 specialization in companies act 2013

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INTRODUCTION

Background

The corporate laws of an economy are a sine qua non for economic growth. In todaysglobal economic scenario, entrepreneurs are looking forward to economies that havethe best, compact and easy laws and procedures that facilitate quick establishment ofcompanies. The Indian Company Law, which had its legislative origin afterindependence, had gone through a number of amendments since 1956. The Ministry ofCorporate Affairs has been taking timely and pro-active initiatives by making the existinglaw simple, compact with less cumbersome procedures. Apart from the large number ofsections contained in the Act, there are a number of Schedules to the Companies Act,1956 which the Ministry has been re-looking at from time to time. With its totalmakeover at this juncture, it is almost at par with the laws elsewhere in the globe and

making the country as a platform for inviting off- shore investments. As AccountingStandards have become mandatory and more so the road map towards convergenc e ofIFRS has been drawn up, Schedule VI to the Companies Act, 1956 became animportant piece of document, which necessitated the Ministry very recently to revise interms of contents, format and to align itself with that of existing Accounting Standards. Itis a major step and members of the profession have a greater role and responsibility inits preparation.

Schedule VI to the Companies Act, 1956 (the Act) provides the manner in which everycompany registered under the Act shall prepare its Balance Sheet, Statement of Profitand Loss and notes thereto. In the light of various economic and regulatory reforms thathave taken place for companies over the last several years, there was a need forenhancing the disclosure requirements under the Old Schedule VI to the Act andharmonizing and synchronizing them with the notified Accounting Standards asapplicable. Accordingly, the Ministry of Corporate Affairs has issued a revised form ofSchedule VI on February 28, 2011.

Need

The Ministry of Corporate Affairs of the Government of India has been taking manyinitiatives for overhauling the Companies Act, 1956 through major amendments,circulars and notifications. To make Indian business and companies competitive andglobally recognizable, a need was felt that format of Financial Statements of Indian

corporate should be comparable with international format. Since most of the Indian Accounting Standards are being made at par with the international AccountingStandards, the changes to format of Financial Statements to align with the AccountingStandards will make Indian companies competitive on the global financial world. Takingcognizance of imperative situation and need, the Ministry of Corporate Affairs revisedthe existing Schedule VI to the Companies Act, 1956 and made it applicable to allcompanies for the Financial Statements to be prepared for the financial yearcommencing on or after April 1, 2011.


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Brief review of literature

Schedule VI to the Companies Act, 1956 (the Act) provides the manner in which every

company registered under the Act shall prepare its Balance Sheet, Statement of Profitand Loss and notes thereto. The requirements of the Revised Schedule VI however, donot apply to companies as referred to in the proviso to Section 211 (1) and Section 211(2) of the Act, i.e., any insurance or banking company, or any company engaged in thegeneration or supply of electricity or to any other class of company for which a form ofBalance Sheet and Profit and Loss account has been specified in or under any other

Act governing such class of company. Revised Schedule VI may be followed by suchcompanies till the time any other format is prescribed by the relevant statute.

Objective

The FORM AND CONTENT of Balance Sheet and Profit and Loss Account of

Companies are regulated as per Section 211 of the Companies Act, 1956 which saysthat every Balance Sheet of a company must comply with the following threerequirements:

It must give a true and fair view of the state of affairs of the company as at theend of the financial year.

It must be in the form set out in Part-1 of Schedule VI or as near thereto ascircumstances admit or in such other form as may be approved by the CentralGovernment either generally or any particular case.

Due regard must be had, in preparing the balance sheet to the generalinstructions for preperation of Balance Sheet under the heading Notes at the

end of that part. Accordingly all companies whether public or private and irrespective of level ofoperation required to prepare their Balance Sheet, Profit and Loss Account and notesthereto in the manner provided in Schedule VI.

Methodology

Area of Study

1. The Revised Schedule VI is applicable for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after April 1,

2011.2. Early adoption of the Revised Schedule VI is not permitted since Schedule VI isa statutory format.

3. The Revised Schedule VI requires that except in the case of the first FinancialStatements laid before the company after incorporation, the correspondingamounts for the immediately preceding period are to be disclosed in the FinancialStatements including the Notes to Accounts.


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4. Applicability of the Revised Schedule VI format to interim Financial Statementsprepared by companies in the first year of application of the Schedule.

SampleThe Structure of Revised Schedule VI is as under:I. General InstructionsII. Part I Form of Balance SheetIII. General Instructions for Preparation of Balance SheetIV. Part II Form of Statement of Profit and LossV. General Instructions for Preparation of Statement of Profit and Loss

Type of study

The Revised Schedule VI requires that if compliance with the requirements of the

Act and / or the notified Accounting Standards requires a change in the treatmentor disclosure in the Financial Statements as compared to that provided in theRevised Schedule VI, the requirements of the Act and / or the notified AccountingStandards will prevail over the Schedule.

The Revised Schedule VI clarifies that the requirements mentioned therein fordisclosure on the face of the Financial Statements or in the notes are minimumrequirements. Line items, sub-line items and sub-totals can be presented as anaddition or substitution on the face of the Financial Statements when suchpresentation is relevant for understanding of the companys financial position and/or performance.

In the Old Schedule VI, break-up of amounts disclosed in the main Balance

Sheet and Profit and Loss Account was given in the Schedules. Additionalinformation was furnished in the Notes to Account. The Revised Schedule VI haseliminated the concept of Schedule and such information is now to be furnishedin the Notes to Accounts.

The terms used in the Revised Schedule VI will carry the meaning as defined bythe applicable Accounting Standards. For example, the terms such asassociate, related parties, etc. will have the same meaning as defined in

Accounting Standards notified under Companies (Accounting Standards) Rules,2006.

In preparing the Financial Statements including the Notes to Accounts, a balancewill have to be maintained between providing excessive detail that may not assist

users of Financial Statements and not providing important information as a resultof too much aggregation.

All items of assets and liabilities are to be bifurcated between current and non-current portions and presented separately on the face of the Balance Sheet.Such classification was not required by the Old Schedule VI.

There is an explicit requirement to use the same unit of measurement uniformlythroughout the Financial Statements and notes thereon. Moreover, rounding off


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requirements has been changed to eliminate the option of presenting figures interms of hundreds and thousands if turnover exceeds 100 crores.

Tools for data collection

Research data is either primary or secondary, depending on the source of theinformation. Both types of research data are valuable for market research or any othertype of study.

Primary Data - Primary data is information collected by the researcher directly throughinstruments such as surveys, interviews, focus groups or observation. Tailored to hisspecific needs, primary research provides the researcher with the most accurate andup-to-date data.

Secondary Data - Secondary data, on the other hand, is basically primary data collectedby someone else. Researchers reuse and repurpose information as secondary databecause it is easier and less expensive to collect. However, it is seldom as useful andaccurate as primary data.

Method of analysis

The major highlights of form of Balance Sheet are:-

a) Under Revised Schedule VI, all the assets and liabilities are to be classified intocurrent and non-current, accordingly line items for both current and non-current havebeen inserted for items like trade receivables, trade payables, investments, provisions,

loan and advances etc which were not provided earlier under Old Schedule VI.

b) Only vertical format has been provided whereas earlier option of horizontal formatwas also allowed.

c) Current Liabilities to be shown on liability side of balance sheet instead of deductionfrom current assets. Consequently the upper part named as Equity & Liabilities and laterpart named as Assets as against Sources of Funds and Application of Funds under OldSchedule.

d) New line items inserted on face of Balance Sheet:

i. Money received against share warrants under Shareholders funds. ii. Share application money pending allotment between Shareholders funds and Non -current liabilities.

iii. Tangible Assets under Fixed Assets.

iv. Intangible Assets under Fixed Assets.


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v. Intangible assets under development under Fixed Assets.

The major highlights of form of Statement of Profit and Loss are:-

a) Name changed from Profit and Loss Account to Statement of Profit and Loss.

b) Under Old Schedule VI, there was no form of Statement of Profit and Loss, but samehas now been provided.

c) In the format there is no mention for any appropriation item like transfers to reservesetc, which need to be presented under Reserves & Surplus in the Balance Sheet.

Accordingly it ends with Profit after Tax and disclosure of Earning per share. Thedisclosure regarding the appropriations like transfers to reserves, proposed dividend,tax on dividend etc is shown under subhead Surplus in head Reserves and Surplusin the Balance Sheet.

d) The expenses are to be classified by nature earlier even function based classificationwas permissible.

e) Requires separate presentation of extraordinary and exceptional items.

f) Requires separate disclosure of profit before tax, tax expense and profit after tax fromdiscontinuing operations.


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CONCEPTUAL FRAMEWORK

Framework Analysis

1. Where compliance with therequirements of the Act including

Accounting Standards as applicable to thecompanies require any change intreatment or disclosure including addition,amendment, substitution or deletion in thehead/sub-head or any changes inter se, inthe Financial Statements or statementsforming part thereof, the same shall bemade and the requirements of theSchedule VI shall stand modifiedaccordingly.

This is a landmark change in the history ofFinancial Reporting System prevalent inIndia as Revised Schedule VI givessupremacy to the provisions of theCompanies Act and Accounting Standardsover the Revised Schedule VI, whereasearlier Old Schedule VI requirements weresupreme and were overriding the

Accounting Standards. Now wheneveraccounting standards are changed, theresultant accounting treatment,presentation and disclosures will not be inconflict with the requirements of RevisedSchedule VI as same shall stand modifiedaccordingly.

2. The disclosure requirements specified inPart I and Part II of this Schedule are in

addition to and not in substitution of thedisclosure requirements specified in the Accounting Standards prescribed underthe Companies Act, 1956. Additionaldisclosures specified in the AccountingStandards shall be made in the Notes to

Accounts or by way of additional statementunless required to be disclosed on the faceof the Financial Statements. Similarly, allother disclosures as required by the

Companies Act shall be made in the Notesto Accounts in addition to the requirementsset out in this Schedule.

Importance of Accounting Standards isagain reiterated as all the disclosure

requirements specified in the AccountingStandards need to be complied with in theNotes to Accounts / additional statement /on the face of the Financial Statements,besides compliance with RevisedSchedule VI. Also all other disclosures asrequired by the Companies Act shall bemade in the Notes to Accounts.Companies need to comply with thedisclosure requirements of all three i.e.

Revised Schedule VI, AccountingStandards and Companies Act, 1956.However in event of any conflict betweenSchedule and AS or Companies Act, thelater will prevail and Schedule will take aback seat.


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3. Notes to Accounts shall containinformation in addition to that presented inthe Financial Statements and shall providewhere required (a) narrative descriptionsof items recognized in those statementsand (b) information about items that do notqualify for recognition in those statements.

Each item on the face of the BalanceSheet and Statement of Profit and Lossshall be cross-referenced to any relatedinformation in the Notes to Accounts. Inpreparing the Financial Statementsincluding the Notes to Accounts, a balanceshall be maintained between providingexcessive detail that may not assist usersof Financial Statements and not providingimportant information as a result of toomuch aggregation .

For the first time, Notes to accounts havebeen defined will also be part of Notes.Consequently each item on the face of theBalance Sheet and Statement of Profit andLoss shall be cross referenced to anyrelated information in the Notes to

Accounts (as against Schedules in oldSchedule VI). Due to above, Column ofSchedule No. on face of Balance Sheethas been changed to Note No. in RevisedSchedule VI and similarly Column of NoteNo. has been specified in newly introduced

format of Statement of Profit and Loss.

4. Except in the case of the first FinancialStatements laid before the Company (afterits incorporation) the corresponding

amounts (comparatives) for theimmediately preceding reporting period forall items shown in the FinancialStatements including notes shall also begiven.

There is no change here as under OldSchedule VI also previous years figureswere required to be given. However as the

Revised Schedule VI is applicable from FY2011-12, the financial statements of FY2010-11 will be required to be reclassified /regrouped in accordance to RevisedSchedule VI, before being used ascomparatives. A note to this effect mayalso be given in the notes to account.


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ANALYSIS AND FINDINGS

1) Classification of Assets and Liabilities into Current and Non-Current:- Concept of classified balance sheet has been introduced, according to which all assetsand liabilities are classified into current and non-current categories applying thedefinitions of Current / Non-current asset / liability and operating cycle provided in theSchedule itself.

2) Overriding effect of Accounting Standards and Flexibility:

The general instructions of Revised Schedule VI specifically provide that wherecompliance with the requirements of the Act including Accounting Standards require anychange in treatment of disclosure including any change in head / subhead or any

changes interse, the financial statements or statements forming part thereof, the sameshall be made and the requirements of the Schedule-VI shall stand modifiedaccordingly.

3) Horizontal format of Balance Sheet deleted:

Horizontal format of Balance Sheet known as conventional or customary form ofBalance Sheet has been deleted accordingly now onwards only vertical format is to beused.

4) Part III of Schedule VI omitted:

Part III of Old Schedule VI, on Interpretation which contained definition of terms likeprovision, reserve etc has been omitted.

5) New definitions provided:

Definitions in respect of Current / Non-Current Asset, Current / Non Current Liability,Operating Cycle, Trade Receivables and Trade Payables, which are relevant forRevised Schedule VI, have been provided, considering that these terms are notcurrently defined in notified Accounting Standards.

6) Balance Sheet Abstract and Companys General Business Profile no longer requiredto be given:-

Balance Sheet Abstract and Companys General Business Profile as provided in Part -IVof Old Schedule VI has been removed which is a welcome move as this statement wasof no real purpose and meant for statistical purposes.


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7) Change in titles of upper and lower half of Balance Sheet:

Under Revised Schedule VI the upper half is referred to as Equity and Liabilities and

lower half is shown as Assets whereas in Old Schedule VI the same were referred asSources of Funds and Application of Funds respectively.

8) Proposed Dividend:

Revised Schedule VI does not require provision for proposed dividend, however as the Accounting Standards have an overriding effect over Revised Schedule VI, accordinglycompanies will have to account for the same along with Dividend Distribution Tax, untilrevision to this effect is made in AS 4.

9) Rounding off rule (optional) revised:

Old Schedule VI Revised Schedule VI

Round off to the nearest hundreds,thousands or decimal thereof

Round off to the nearest hundreds,thousands, lakhs or millions or decimalthereof

-

Round off to the nearest hundreds,thousands, lakhs, millions or crores, ordecimal thereof.

Round off to the nearest hundreds,thousands, lakhs or millions or decimalthereof.

-

Round off to the nearest lakhs, millions orcrores, or decimal thereof.

10) Concept of Schedules eliminated:

As per Old Schedule VI disaggregations of items recognized in financial statementswere disclosed by way of Schedules. Revised Schedule VI states that the same shouldbe provided in the Notes to Accounts.


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11) Notes to Accounts defined:

Revised Schedule VI states that Notes to Accounts shall contain information in addition

to that presented in the Financial Statements and shall provide where required: narrative descriptions or disaggregations of items recognized in those

statements. information about items that do not qualify for recognition in those statements.

12) Relief from disclosing more than 5 years old issue of shares for consideration otherthan cash/ Bonus Shares:-

Share-based payments for acquisition of goods or services including tangible andintangible assets and issue of Bonus Shares were earlier required to be reported oncontinuous basis but in Revised Schedule VI the same need to be disclosed for

transactions of period of five years immediately preceding the relevant Balance SheetDate.

13) Disclosure of shareholding pattern:

Two new disclosures regarding disclosures of share holding pattern for each class ofshare capital have been introduced in revised Schedule VI.

i) shares in the company held by its holding company or its ultimate holding companyincluding shares held by or by subsidiaries or associates of the holding company or theultimate holding company in aggregate.

ii) shares in the company held by each shareholder holding more than 5 percent shares(as on Balance Sheet date) specifying the number of shares held.

14) Disclosure of reconciliation of the number of shares:

Revised Schedule VI has introduced new disclosure of reconciliation of the number ofshares outstanding at the beginning and at the end of the reporting period.

15) Disclosure of Shares reserved :

New requirement for disclosure of Shares reserved for issue under andcontracts/commitments for the sale of shares/disinvestment, including the terms andamounts, has been introduced.

16) Disclosure of Reserves & Surplus:

New line items for Debenture Redemption Reserve, Revaluation Reserve, Share OptionOutstanding Account have been inserted under Reserves & Surplus. Further additionalrequirement of specifying purpose of reserves falling under residual head of otherreserves has been introduced.


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17) Disclosure of Accumulated Losses.

Debit balance of profit and loss shall be shown as a negative figure under the head

Surplus. Similarly, the balance of Reserve and Surplus after adjusting negativebalance of surplus, if any shall be shown under the head Reserve and Surplus even ifthe figure is in the negative.

18) Money received against Share Warrants:

Revised Schedule VI has inserted a new line item under Shareholders funds towardsMoney received against Share Warrants after Share Capital and Reserves and Surplus.

19) Share Application Money:

Revised Schedule VI has inserted a new line item Share Application Money pendingallotment under Equity & Liabilities between Shareholder funds and Non-currentliabilities. Share application money not exceeding the issued capital and to the extentnot refundable is to be disclosed here. Share application money to the extent refundableshould be shown separately under the head Other Current Liabilities.

20) Disclosure of Borrowing:

The portion of borrowing which is not due within 12 months after the reporting date isonly required to be shown as Long term borrowing. Further for disclosure by the lesseeof finance lease obligations not due within 12 months a new line item of Long termmaturities of finance lease obligations has been inserted by Revised Schedule VI,under Long-term Borrowings.

21 ) Disclosure of Provisions:

Under Old Schedule VI all the provisions were shown as Current Liabilities, but now allprovisions for which the related claim is expected to be settled beyond 12 months afterthe reporting date are classified as non-current liabilities and shown under new line itemof Long-term provisions. The provisions which will be settled within 12 months after thereporting period are classified as a current liability and shown under line item of Short-term provisions.

22) Disclosure of Interest accrued and due on borrowing:

Revised Schedule VI, requires Interest accrued and due on borrowing to be shownunder Other current liabilities. In Old Schedule VI these were shown as part of LoanFunds.

23) Trade Receivables and Trade Payables:

The terms of Debtors and Creditors have been scrapped and replaced with TradeReceivables and Trade Payables respectively.


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24) Fixed Assets:

The amount of tangible, intangible assets and intangible assets under development are

required to be depicted on face of balance sheet separately.25) Tangible Assets:

Tangible assets under lease are required to be separately specified under each class ofasset. The said disclosure is in respect of assets given on operating lease in the case oflessor and assets held under finance lease in the case of lessee.

26) Intangible Assets:

New line items of Computer Software, mastheads and publishing rights, Mining Rights,Recipes, formulae, models, designs and prototypes, Licenses & Franchise introduced.

27) Disclosure of Capital Advances:

Capital Advances are required to be presented separately under the head Long termloans and advances.

28) Cash and cash equivalents:

Name changed from cash & bank balances. The bifurcation of bank deposits amongstscheduled and non scheduled banks has been dispensed with. Bank deposits with morethan 12 months maturity to be disclosed separately. The bank balances which are cashand cash equivalents as per AS 3 Cash Flow Statements be included in relevant headand others should be shown as other bank balances.

29) Inventories:

A new line item of Finished Goods has been inserted. Further Goods in Transit shouldbe separately disclosed under the relevant sub-head of inventories.

30) Format of Statement of Profit and Loss prescribed:

The nomenclature of Profit and Loss Account has been changed to Statement of Profitand Loss under Revised Schedule VI. Further Part II of Revised Schedule VI prescribesthe format of Statement of Profit and Loss which was not there in Old Schedule VI. Thiswill facilitate standardization and comparability. The format of Statement of Profit andLoss ends with depiction of Profit after tax and Earning Per Share accordingly it doesnot depict any appropriation item on its face, as the below the line adjustments i.e.dividend, bonus shares and transfer to / from reserves etc are to be disclosed undersub- head Surplus in head Reserve and Surplus in the Notes to accounts referencedto Balance Sheet.


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31) Disclosure of revenue- other than a finance company:

In respect of a company other than a finance company revenue from operations shall

disclose separately in notes revenue froma) sale of products

b) sale of services

(c) other operating revenues less:-

(d) Excise Duty.

As per AS- 9 Revenue Recognition, the disclosure in respect of Excise Duty needs tobe shown on the face of the Statement of Profit and Loss. Since Accounting Standardsoverride Revised Schedule VI, the presentation in respect of excise duty will have to bemade on the face of the Statement of Profit and Loss. As per the Guidance Note indoing so, a company may choose to present the elements of revenue from sale ofproducts, sale of services and other operating revenues also on the face of theStatement of Profit and Loss instead of the Notes.

32) Disclosure of revenue- finance company:

In case of finance company, revenue from operations shall include revenue from

(a) Interest

(b) Other financial services.

It has further been stated that revenue from each of the above heads shall be disclosed

separately by way of notes to accounts to the extent applicable. The above disclosure ismore detailed than old schedule VI.

33) As per the format provided the expenses are to be classified by nature.

34) Raising of limit for non-inclusion in miscellaneous expenditure:

Additional information regarding aggregate income or expenditure exceeding 1% of therevenue from operations or Rs 1,00,000/-, whichever is higher, need to be disclosednow by way of notes.

35) Recognition of dividend income.

The Old Schedule VI required the parent company to recognize dividends declared bysubsidiary companies even after the date of the Balance Sheet if they were pertaining tothe period ending on or before the Balance Sheet date. Such requirement has beenabolished in the Revised Schedule VI.

36) Break-up in terms of quantitative disclosures for significant items of Statement ofProfit and Loss, such as raw material consumption, stocks, purchases and sales havebeen simpl ified and replaced with the disclosure of broad heads only.


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37) Gain / Loss on foreign currency transactions and translations to be separated intofinance costs ( to the extent of adjustment to interest cost) and other expenses.

38) Separate disclosure of Exceptional and Extraordinary items on face of Statement ofProfit and Loss.

39) Requires separate disclosure of profit before tax, tax expense and profit after taxfrom discontinuing operations.

40) Disclosures dispensed with; The Revised Schedule VI has removed a number ofdisclosure requirements in Part II, Examples include:

(a) Disclosures relating to managerial remuneration and computation of net profits forcalculation of commission;

(b) Information relating to licensed capacity, installed capacity and actual production;

(c) Information on investments purchased and sold during the year;

(d) Investments, sundry debtors and loans & advances pertaining to companies underthe same management;

(e) Maximum amounts due on account of loans and advances from directors or officersof the company;

(f) Commission, brokerage and non-trade discounts.


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CONCLUSION AND RECOMMENDATIONS

Revised Schedule VI sets out minimum requirements for disclosure and offerspresentation flexibility. This approach is a landmark change as compared to OldSchedule VI where such flexibility was not there. This change is in line with the IAS 1Presentation of Financial Statements. An entity should be guided by the qualitativecharacteristics of financial statements relevance and understandability in selectionof the line items. It is pertinent to mention here that this note has not been incorporatedbefore Part II that contains form of Statement of Profit and Loss. However consideringthat the Statement of Profit and Loss has also been referred here and the spirit of theflexibility inherent in the Revised Schedule VI, same logic is applicable to Part II as well.

Part II deals with disclosures relating to the Statement of Profit and Loss. The formatprescribed is the vertical form wherein disclosure for revenues and expenses is invarious line items. Part II of the Schedule contains items I to XVI which lists items ofRevenue, Expenses and Profit / (Loss). General Instructions for Preparation ofStatement of Profit and Loss govern the other disclosure and presentation.

The above project also helped me to gain an immense knowledge on Revised ScheduleVI which will help me throughout my life, be it as a professional or in any phase of life.


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BIBLIOGRAPHY

The list of books and articles which have been used in the project work and in writing aproject report are hereby mentioned below:

Guidance Note on Revised Schedule VI of Companies Act 1956 issued by ICAI. Practitioners Guide on Revised Schedule VI of Companies Act 1956 issued by

ICAI. Search Engine Google. and in writing a project report. Microsoft Office Word.


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Equity and Liability Classification

Equity and Liabilities

Shareholders' Fund

Share Capital

Reserve andSurplus

Money Receivedagianst Share

Warrants

Share Application MoneyPending Allotment Non-Current Liabilities

Long-Termborrowings

Deffered TaxLiabilities (Net)

Other LTLiabilities

Long-TermProvisions

Current Liabilities

Short-Termborrowings

Trade Payables

Other CurrentLiabilities

Short-TermProvisions


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Assets Classification

Assets

Non Current Asstets

Fixed Assets

Non-CurrentInvestments

Deffered TaxAssets (Net)

LT Loans andAdvances

Other NonCurrent assets

Current Assets

CurrentInvestments

Inventories

TradeReceivables

Cash and CashEquivalents

ST Loans andAdvances

Other CurrentAssets


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NEW FORMAT AS PER REVISED SCHEDULE VI

Balance Sheet

Name of the CompanyBalance Sheet as at 31 March, 201X

Particulars NoteNo.

As at 31March,201X

As at 31March,201X

` `

A EQUITY AND LIABILITIES

1 Shareholders funds (a) Share capital(b) Reserves and surplus(c) Money received against share warrants

2 Share application money pending allotment

3 Non-current liabilities(a) Long-term borrowings(b) Deferred tax liabilities (net)(c) Other long-term liabilities(d) Long-term provisions

4 Current liabilities(a) Short-term borrowings(b) Trade payables(c) Other current liabilities(d) Short-term provisions

TOTAL

B ASSETS

1 Non-current assets(a) Fixed assets

(i) Tangible assets(ii) Intangible assets(iii) Capital work-in-progress(iv) Intangible assets under

development(v) Fixed assets held for sale


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(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

See accompanying notes forming part of thefinancial statements

STATEMENT OF PROFIT AND LOSS ACCOUNT

Name of the CompanyStatement of Profit and Loss for the year ended 31March, 201XParticulars Note

No.For the yearended31 March,201X

For the yearended31 March,201X

` `

A CONTINUING OPERATIONS

1 Revenue from operations (gross)Less: Excise dutyRevenue from operations (net)

2 Other income

3 Total revenue (1+2)

4 Expenses(a) Cost of materials consumed(b) Purchases of stock-in-trade(c) Changes in inventories of finished goods,

work-in-progress and stock-in-trade(d) Employee benefits expense(e) Finance costs(f) Depreciation and amortisation expense


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(g) Other expenses

Total expenses

5 Profit / (Loss) before exceptional andextraordinary items and tax (3 - 4)

6 Exceptional items

7 Profit / (Loss) before extraordinary items andtax (5 + 6)

8 Extraordinary items

9 Profit / (Loss) before tax (7 + 8)

10 Tax expense:(a) Current tax expense for current year(b) (Less): MAT credit (where applicable)(c) Current tax expense relating to prior years(d) Net current tax expense(e) Deferred tax

11 Profit / (Loss) from continuing operations (9+10)

B DISCONTINUING OPERATIONS

12.i Profit / (Loss) from discontinuing operations(before tax)

12.ii Gain / (Loss) on disposal of assets / settlement ofliabilities attributable to the discontinuingoperations

12.iii Add / (Less): Tax expense of discontinuingoperations

(a) on ordinary activities attributable to thediscontinuing operations

(b) on gain / (loss) on disposal of assets /

settlement of liabilities

13 Profit / (Loss) from discontinuing operations(12.i + 12.ii + 12.iii)

C TOTAL OPERATIONS


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14 Profit / (Loss) for the year (11 + 13)

15.i Earnings per share (of ` ___/- each):

(a) Basic(i) Continuing operations(ii) Total operations

(b) Diluted(i) Continuing operations(ii) Total operations

15.ii Earnings per share (excluding extraordinaryitems) (of ` ___/- each):

(a) Basic

(i) Continuing operations(ii) Total operations

(b) Diluted(i) Continuing operations(ii) Total operations

See accompanying notes forming part of thefinancial statements

Documents

specialization in companies act 2013