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REVISED SCHEDULE VI. BALANCE SHEET AS PER COMPANIES ACT 1956. Format of Balance Sheet Name of the Company…………… Balance Sheet as at……….. ( Rupees at ……) .
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REVISED SCHEDULE VI BALANCE SHEET AS PER COMPANIES ACT 1956
Format of Balance Sheet Name of the Company……………Balance Sheet as at……….. ( Rupees at ……)
Format of Balance Sheet (cont..)Name of the Company……………Balance Sheet as at……….. ( Rupees at ……)
REVISED SCHEDULE VI STATEMENT OF PROFIT & LOSS AS PER COMPANIES ACT 1956
STATEMENT OF PROFIT & LOSS • Ministry of Corporate Affairs has revised schedule VI which comprises of Profit & Loss Account and Balance Sheet. • The name of Profit & Loss account has been changed to Statement of Profit & Loss.
REVENUE REVENUE FROM OPERATIONS OTHER OPERATING REVENUES Revenue from a company’s operating activities incidental to principal revenue producing activities of sale of products or rendering of services e.g. sale of by-products or scrap in a manufacturing company. • The first item in the statement starts with revenue from operations. • Revenue from operations means net income from business activities. • The new revised version is required to disclose by way of a note the break-up of revenue into– • sale of products • sale of services • other operating revenues • Less: excise duty.
COST OF MATERIALS CONSUMED & PURCHASE OF STOCK IN TRADE • The revised Schedule requires separate disclosure of (i) cost of materials consumed, (ii) purchases of stock-in-trade and (iii) change in inventories of finished goods, work-in-progress and stock in trade on the face of the statement of profit and loss. • Raw Material Consumed = Opening Stock of RM + Purchases of RM – Closing Stock of RM • Change in Inventory is the difference of Closing and Opening Stock of FG, WIP and SIT.
Employee Benefits Expenses • Salaries and wages • Contribution to provident and other funds • Expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP) • Staff welfare expenses
Finance Costs • Interest expense • Other borrowing costs • Applicable net gain/loss on foreign currency transactions and translation. • Interest Expense includes Interest on Deb, Interest on Borrowings from Banks. • Other Borrowing Costs include project finance charges, loan processing charges etc.
Other Expenses • Consumption of stores and spare parts • Power and fuel • Rent • Repairs to buildings • Repairs to machinery • Insurance • Rates and taxes, excluding taxes on income • Miscellaneous expenses.
Extraordinary Items • The revised Schedule requires ‘extraordinary items’ to be distinguished from ‘exceptional items’ and shown separately on the face of the statement of profit and loss. For Eg: - • Attachment of property • Loss of property due to earthquake.
Tax Expense Current tax (MAT) payable XX Less: MAT credit entitlement (XX) Net Current tax liability XX • MAT refers to Minimum Alternate tax. • This was introduced to make sure that the companies having large profits and declaring substantial dividends to the shareholders, but who were not contributing to the government by way of corporate tax, by taking the advantage of various incentives provided in the Income Tax Act, pay a fixed % of book profit as MAT
Profit/(loss) from Discontinuing Operations • The disclosure requirements of AS 24, Discontinuing Operations, including the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation, and the income tax expense related thereto to be disclosed on the face of the Statement should be complied with.
Earnings per Equity Share • Basic and diluted earnings per share, computed in accordance with AS 20, Earnings Per Share, should be disclosed on the face of the statements of profit and loss. In this regard, it is relevant to note that AS 20 requires the nominal value of equity shares to be disclosed ‘along with the earnings per share figures’; hence, the same would also need to be disclosed on the face.
