REVISED SCHEDULE VI

Schedule VI to the Companies Act, 1956 (the Act) provides the manner in hich ever! compan! re"istered under the Act shall prepare its #alance Sheet, Statement o$ %ro$it and &oss and notes thereto' (he )inistr! o$ Corporate A$$airs ()CA) has issued a revised $orm o$ Schedule VI on *e+ruar! ,-, ,.11' (he relevant noti$ication alon" ith the /evised Schedule VI to the Act is "iven in Annexure A. (he re0uirements o$ the /evised Schedule VI do not appl! to companies as re$erred to in the provison to Section ,11 (1) and Section ,11(,) o$ the Act, i'e', an! insurance or +an1in" compan!, or an! compan! en"a"ed in the "eneration or suppl! o$ electricit! or to an! other class o$ compan! $or hich a $orm o$ #alance Sheet and %ro$it and &oss account has +een speci$ied in or under an! other Act "overnin" such class o$ compan!' (a) For Half yearly results: till the time a ne $ormat is prescri+ed +! S2#I under Clause 31, companies ill have to continue to present their hal$4!earl! #alance Sheets +ased on the $ormat currentl! speci$ied +! the S2#I' (b) For Annual audited yearly results: companies have to prepare their annual *inancial Statements in the /evised Schedule VI $ormat, companies should use the same $ormat o$ /evised Schedule VI $or su+mission to stoc1 e5chan"es as ell' 6(he $ormats o$ the #alance Sheet and Statement o$ %ro$it and &oss prescri+ed under the S2#I /e"ulations ,..9 (IC7/ /e"ulations) is inconsistent ith the $ormat o$ the #alance Sheet8 Statement o$ %ro$it and &oss in the /evised Schedule VI' Main c an!es in "rofit # Loss A$c: (he name o$ %ro$it 9 loss A8c is chan"ed +! Statement o$ %ro$it and &oss' It prescri+es onl! vertical $ormat' :o' o$ shareholders holdin" more than 5; shares no need to +e disclosed' Shares allotted $or cash, +onus shares, share +ou"ht +ac1 ill need to +e disclosed $or a period o$ $ive !ears immediatel! preecidin" the #alance Sheet date includin" the current !ear' 7e+it +alance in statement o$ %ro$it 9 loss A8c ill +e disclosed under the head /eserves 9 Surplus' (he term < sundr! de+tors < has +een replaced +! the term < trade recieva+les <' It is onl! $or dues arisin" onl! $rom "oods sold or services rendered in the normal course o$ +usiness' (his term is not used $or contractual o+li"ation'

All t!pes o$ commitment are no need to +e disclosed' An! de$aults in repa!ment o$ loans and interest should no +e disclosed' :o appropriation item is mention in statement o$ %ro$it 9 &oss, /evised Schedule VI prescri+es such +elo the line ad=ustments to +e presented under < /eserves 9 surplus> in the <#alance Sheet>' An! item or e5pense hich e5ceeds 1; o$ the revenue $rom operation or /s' 1..... hichever is hi"her, needs to +e disclosed separatel!' 2arlier it as 1; o$ total revenue or /s' 5...' :o as per AS49 /evenue /eco"nition, dividends should +e reco"ni?ed as income onl! hen the ri"ht to receive dividends is esta+lished as on the +alance sheet date' /evenue $rom operations need to +e disclosed separatel! as revenue $rom (a) sale o$ products (+) sale o$ services (c) other operatin" revenues' In respect o$ companies other than $inance companies' 7isclosoure relatin" to the $ollo in" are no not re0uired @4

(a) )ana"erial remuneration 9 computation o$ net pro$its $or calculation o$ commission' (+) licensed capacit!, installed capacit! 9 actual production' (c) investments purchased 9 sold durin" the !ear' (d) Investments, sundr! de+tors 9 loans 9 advances pertainin" to companies under the same mana"ement' (e) )a5imum amount due on loans and advances $rom directors or o$$ices o$ the compan!' ($) Commission, +ro1era"e 9 non A trade discounts' (he disclosure re0uirements o$ the schedule are in addition to and not in su+stitution o$ the disclosure re0uirements speci$ied in the noti$ied accountin" statement' (he /evised Schedule VI re0uires all in$ormation relatin" to each item on the $ace o$ the #alance Sheet and Statement o$ %ro$it and &oss A8c to +e cross re$erenced to the :otes o$ Accounts rather than in the $orm o$ schedule' (hese notes to accounts should also contain in$ormation a+out items such as contin"ent lia+ilities 9 commitments hich do not reco"ni?ed in the $inancial statements' Same unit o$ measurement should +e used uni$orml! across the $inancial statements'

(he roundin" o$$ re0uirement should +e complied ith'

%urno&er ' Rs. ()) Crores A /ound o$$ to the nearest hundreds, thousands, la* s or +illions or decimal thereo$' %urno&er , Rs. ()) Crores 4 /ound o$$ to t e nearest la1hs, millions or crores, or decimal thereo$ Main C an!es in -alance S eet:. (he /evised Schedule VI re0uires all items in the #alance Sheet to +e classi$ied as either Current or :on4 current and +e re$lected as such'

<An asset shall +e classi$ied as current hen it satis$ies an! o$ the $ollo in" criteria@ (a) it is e5pected to +e reali?ed in, or is intended $or sale or consumption in, the compan!s normal operatin" c!cleB (+) it is held primaril! $or the purpose o$ +ein" tradedB (c) it is e5pected to +e reali?ed ithin t elve months a$ter the reportin" dateB or (d) it is Cash or cash e0uivalent unless it is restricted $rom +ein" e5chan"ed or used to settle a lia+ilit! $or at least t elve months a$ter the reportin" date' All other assets shall +e classi$ied as non4current'> Chere the normal operatin" c!cle cannot +e identi$ied, it is assumed to have a duration o$ t elve months'>

<A lia+ilit! shall +e classi$ied as current hen it satis$ies an! o$ the $ollo in" criteria@ (a) it is e5pected to +e settled in the compan!s normal operatin" c!cleB (+) it is held primaril! $or the purpose o$ +ein" tradedB (c) it is due to +e settled ithin t elve months a$ter the reportin" dateB or (d) the compan! does not have an unconditional ri"ht to de$er settlement o$ the lia+ilit! $or at least t elve months a$ter the reportin" date' (erms o$ a lia+ilit! that could, at the option o$ the counterpart!, result in its settlement +! the issue o$ e0uit! instruments do not a$$ect its classi$ication' All other lia+ilities shall +e classi$ied as non4current'> (he term <Dperatin" C!cle> is de$ined as the time +et een the ac0uisition o$ assets $or processin" and their reali?ation in Cash or cash e0uivalents' *or the purpose o$ /evised Schedule VI, a compan! also needs to classi$! its emplo!ee +ene$it o+li"ations as current and non4current cate"ories' (he /evised Schedule VI re0uires Investments to +e classi$ied as Current and :on4Current' (he /evised Schedule VI clari$ies that, <the terms o$ a lia+ilit! that could, at the option o$ the counterpart!, result in its settlement +! the issue o$ e0uit! instruments do not a$$ect its classi$ication>' As per /evised Schedule VI, a reserve speci$icall! represented +! earmar1ed investments shall +e termed as a $und' 7e+it +alance in the Statement o$ %ro$it and &oss hich ould arise in case o$ accumulated losses, is to +e sho n as a ne"ative $i"ure under the head Surplus' (he a""re"ate amount o$ the +alance o$ /eserves

and Surplus, is to +e sho n a$ter ad=ustin" ne"ative +alance o$ surplus, i$ an!' I$ the netvresult is ne"ative, the ne"ative $i"ure is to +e sho n under the headn/eserves and Surplus' (he /evised Schedule VI also stipulates that the nature o$ securit! shall +e speci$ied separatel! in each case' (he /evised Schedule VI re0uires that under the head <#orro in"s,> period and amount o$ <continuin" de$ault (in case o$ lon"4term +orro in") and de$ault (in case o$ short4term +orro in") as on the #alance Sheet date in repa!ment o$ loans and interest shall +e speci$ied separatel! in each caseE' (he /evised Schedule VI has introduced o$$ice e0uipment as a separate line item hile droppin" items li1e, live stoc1, rail a! sidin"s, etc' Fo ever, i$ the said items e5ist, the same should +e disclosed separate asset class speci$!in" nature thereo$' (he /evised Schedule VI is clear that the disclosure re0uirements o$ the Accountin" Standards are in addition to disclosures re0uired under the Schedule' Also, in case o$ an! con$lict, the Accountin" Standards ill prevail over the Schedule (he /evised Schedule VI re0uires disclosure o$ the <+asis o$ valuation> o$ non4current investments hich are carried at other than cost' Gnder the /evised Schedule VI, Capital Advances are not +e classi$ied under Capital Cor1 in %ro"ress (he /evised Schedule VI re0uires disclosure o$ the amount o$dividends proposed to +e distri+uted to e0uit! and pre$erence shareholders $or the period and the related amount per share to +e disclosed separatel!' It also re0uires separate disclosure o$ the arrears o$ $i5ed cumulative dividends on pre$erence shares'

% e Re&ised Sc edule VI re/uires t e follo0in! additional infor+ation to 1e !i&en 1y 0ay of notes:

2ature of co+3any )anu$acturin" companies (radin" companies Companies renderin" or suppl!in" services . Disclosures re/uired 4 /a materials under +road heads Hoods purchased under +road heads 4 %urchases o$ "oods traded under +road heads 4Hross income derived $rom services rendered under +road heads'