{"id":105,"date":"2013-08-10T09:18:54","date_gmt":"2013-08-10T09:18:54","guid":{"rendered":"https:\/\/blog.ritulpatwa.com\/?p=105"},"modified":"2013-08-10T09:18:54","modified_gmt":"2013-08-10T09:18:54","slug":"changes-in-the-revised-schedule-vi-of-the-companies-act-1956","status":"publish","type":"post","link":"https:\/\/blog.ritulpatwa.com\/?p=105","title":{"rendered":"CHANGES IN THE REVISED SCHEDULE VI OF THE COMPANIES ACT, 1956"},"content":{"rendered":"

Revised Schedule VI is applicable on all companies except insurance or banking company, or any company engaged in the generation or supply of electricity. The highlights of the changes in the revised Schedule VI in comparison to the earlier Schedule VI are discussed below.<\/p>\n

    \n
  1. The latest changes to Schedule VI permit only the vertical format<\/b> for preparation of Balance Sheet, Profit & Loss, and Cash Flow Statements.<\/li>\n
  2. Classification:<\/b> These changes pertain to the categorization of the Assets and Liabilities in the Schedule VI.<\/li>\n<\/ol>\n\n\n\n\n\n\n\n
    \n

    Revised Schedule VI Classification<\/b><\/p>\n<\/td>\n

    		\n

    Earlier Schedule VI Classification<\/b><\/p>\n<\/td>\n<\/tr>\n

    Asset Classification under two categories, Current Assets and Non-current Assets<\/td>\nNo such classification existed previously<\/td>\n<\/tr>\n
    Fixed Assets are classified into Tangible and Intangible assets<\/td>\nNo such classification existed previously<\/td>\n<\/tr>\n
    New category of Fixed assets, \u2018Intangible Assets Under Development\u2019 added<\/td>\nNo such category existed previously<\/td>\n<\/tr>\n
    Liabilities are classified under \u2018Current\u2019 and \u2018Non-current\u2019. Constituents of Current and Non-current liabilities modified<\/td>\nThere was no classification as Non-Current Liabilities. Earlier the liabilities were classified into Share Holders\u2019 Funds, Loan Funds, Deferred Tax Liability and Current Liability.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    3. \u00a0Representation:<\/b>\u00a0These changes pertain to how facts are represented in the financial report.<\/p>\n\n\n\n\n\n\n\n\n\n
    \n

    Revised Schedule VI Representation<\/b><\/p>\n<\/td>\n

    		\n

    Earlier Schedule VI Representation<\/b><\/p>\n<\/td>\n<\/tr>\n

    Debit balance in the Profit & Loss Account is to be adjusted with values shown under the \u201cSurplus\u201d head.<\/p>\n

    In case the value under \u201cSurplus\u201d is still negative, this needs to be adjusted with the balance against \u201cReserves and Surplus\u201d.<\/p>\n

    In case the value under \u201cSurplus\u201d is still negative after the above adjustments, it needs to be represented as a negative value under \u201cLiabilities\u201d.<\/td>\n

    		Debit balance in the Profit & Loss account shall be shown under \u201cASSETS\u201d side after deduction from uncommitted reserves (if any)<\/td>\n<\/tr>\n
    \u201cShare Application Money Pending Allotment\u201d need to be shown separately under share holder\u2019s funds and not under \u201cReserves and surplus\u201d<\/td>\n\u201cShare application money pending allotment\u201d was included in the \u201cReserves and surplus\u201d.<\/td>\n<\/tr>\n
    Finance Lease obligations are to be grouped under the head Non-Current Liabilities.<\/td>\nFinance Lease obligations are included in Current Liabilities.<\/td>\n<\/tr>\n
    Current & non-current investments are to be disclosed separately under current assets & non-current assets respectively.<\/td>\nInvestments both current & and non-current investments to be disclosed under the head investments<\/td>\n<\/tr>\n
    Deferred Tax asset\/liabilities to be disclosed under non-current assets\/liabilities as the case may be.<\/td>\nDeferred tax assets\/liabilities to be disclosed separately.<\/td>\n<\/tr>\n
    Any item of income\/ expense which exceeds \u201cone percent\u201d of\u00a0 the revenue from operations or \u201cRs 1 lakh<\/b>\u201d whichever is higher to be disclosed separately<\/td>\nAny item under which expense exceed one percent of the total revenue of the company or \u201cRs 5 thousand<\/b>\u201d whichever is higher shall be disclosed separately.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    4. \u00a0Nomenclature:<\/b> <\/b>Schedule VI has also been modified to include changes in nomenclature and inclusion of additional information.<\/b><\/p>\n\n\n\n\n\n\n
    Headings in the Balance Sheet<\/b><\/td>\nThe headings in the Balance Sheet are now \u201cEquity and Liabilities\u201d and \u201cAssets<\/b>\u201d. This has replaced \u201cSources of Funds\u201d<\/b> and \u201cApplication of funds\u201d.<\/b><\/p>\n

     <\/td>\n<\/tr>\n

    Share capital<\/b><\/td>\nCompany would need to show in sub-head<\/b> a shares held more than 5%<\/b> in company along with number of shares<\/td>\n<\/tr>\n
    Cash and Cash Equivalents<\/b><\/b><\/td>\n\u201cCash and Cash Equivalents<\/b>\u201d has replaced the element \u201cCash and Bank Balance<\/b>\u201d.<\/p>\n

    Cash and Cash Equivalents is a wider term that includes cash, bank balance, money market funds, other short term deposits etc.<\/td>\n<\/tr>\n

    \u201cTrade receivables<\/b>\u201d &<\/b> \u201cTrade payables<\/b>\u201d<\/td>\n\u201cTrade receivables<\/b>\u201d and \u201cTrade payables<\/b>\u201d is used in the place of \u201cSundry debtors<\/b>\u201d and \u201cSundry Creditors<\/b>\u201d respectively<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    5. \u00a0Rounding Off Requirement<\/b><\/p>\n\n\n\n\n\n\n
    \n

    TURNOVER<\/p>\n<\/td>\n

    		\n

    ROUNDING OFF<\/p>\n<\/td>\n<\/tr>\n

    Less than one hundred crore rupees<\/td>\nTo the nearest hundreds , thousands,lakhs or millions or decimals thereof<\/td>\n<\/tr>\n
    One hundred crore rupees or more<\/td>\nTo the nearest lakh, millions or crores or decimals thereof<\/td>\n<\/tr>\n
    Note: Once a unit of measurement is used, it should be used uniformly in subsequent financial statements.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

    Revised Schedule VI is applicable on all companies except insurance or banking company, or any company engaged in the generation or supply of electricity. The highlights of the changes in the revised Schedule VI in comparison to the earlier Schedule VI are discussed below. The latest changes to Schedule VI permit only the vertical format …<\/p>\n

    CHANGES IN THE REVISED SCHEDULE VI OF THE COMPANIES ACT, 1956<\/span> Read More »<\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[4],"tags":[44,45,46,47],"class_list":["post-105","post","type-post","status-publish","format-standard","hentry","category-chartered-accountants-ca","tag-company-formation-in-jaipur","tag-company-law-matters","tag-revised-schedule-vi-of-companies-act-1956","tag-roc-in-jaipur"],"_links":{"self":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts\/105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=105"}],"version-history":[{"count":1,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts\/105\/revisions"}],"predecessor-version":[{"id":106,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=\/wp\/v2\/posts\/105\/revisions\/106"}],"wp:attachment":[{"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.ritulpatwa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}