Easy Comparision- Revised Sch-VI of Co's Act

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Revised Sch VI Requirements :-

Schedule VI of the Companies Act, 1956, prescribes the format of financial statements and disclosure requirements for corporate entities in India.Considering the economic and regulatory changes that have taken place globally, and being as old as the Act itself (1956), schedule VI had completely outlived its utility.The Main object of revising schedule VI was to eliminate numerous statistical and disclosure requirements which are not relevant from an investor perspective.Following are the major changes that have been taken place. The following comparision between Old Sch VI format & the new revised format will make the task easy to understand the disclosure requirements.

Sr. No.	Particulars	Old Schedule VI	Revised Schedule VI
1)	Form of Balance Sheet	Both horizontal and vertical form were allowed	Only vertical form of Balance Sheet has been specified in the revised Schedule VI
2)	Form of Profit and Loss Account	No format specified for Profit and Loss Account	Form of Profit and Loss Account specified under Part II
3)	Profit and Loss Appropriation Account	Opening surplus, proposed dividend and transfer to/ from reserves were shown in Profit and Loss Appropriation Account	Transfer from/ to reserves to be shown under the heading Reserves & Surplus only. No requirement of separate Profit and Loss Appropriation Account.
4)	Rounding off of Figures appearing in financial statement	Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, thousands or decimal thereof	Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof
		Turnover of Rs. 100 Crs or more but less than Rs. 500 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof	Turnover of Rs. 100 Crs or more - R/off to the nearest lakhs, millions or crores, or decimal thereof
		Turnover of Rs. 500 Crs or more - R/off to the nearest Hundreds, thousands, lakhs, millions or crores, or decimal thereof
5)	Net Working Capital	Current assets & Liabilities are shown together under application of funds. The net working capital appears on balance sheet.	Assets & Liabilities are to be bifurcated into current & Non-current & to be shown separately. Hence, net working capital will not be appearing in B/S.
6)	Fixed Assets	There was no bifurcation required in to tangible & intangible assets.Capital advances used to be shown under the Head Capital Work in Progress under Fixed Assets	Fixed assets to be shown under non-current assets and have to be bifurcated into Tangible & intangible assets.Capital advances to be shown under the head ‘Long term Loans & Advances’
7)	Borrowings	Short term & long term borrowings are grouped together under the head Loan funds sub-head Secured / Unsecured	Long term borrowings to be shown under non-current liabilities and short term borrowings to be shown under current liabilities with separate disclosure of secured / unsecured loans.Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified
8)	Deposits	Lease deposits are part of loans & advances	Lease deposits to be disclosed as long term loans & advances under the head non-current assets
9)	Investments	Both current & non-current investments to be disclosed under the head investments	Current and non-current investments are to be disclosed separately under current assets & non-current assets respectively.
10)	Loans & Advances	Loans & Advance are disclosed along with current assets Loans & Advance to subsidiaries & others to be disclosed separately.	Loans & Advances to be broken up in long term & short term and to be disclosed under non-current & current assets respectively. Loans & Advance from related parties & others to be disclosed separately.
11)	Deferred Tax Assets / Liabilities	Deferred Tax assets / liabilities to be disclosed separately	Deferred Tax assets / liabilities to be disclosed under non-current assets / liabilities as the case may be.
12)	Cash & Bank Balances	Bank balance to be bifurcated in scheduled banks & others	No such bifurcation required. Bank balances in relation to earmarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately.
13)	Profit & Loss (debit Balance)	P&L debit balance to be separately disclosed in the Balance Sheet.	Debit balance of Profit and Loss Account to be shown as negative figure under the head Surplus. Therefore, Reserve & Surplus can have a negative balance.
14)	Sundry Debtors	Debtors outstanding for more than six months from invoice date to be shown separately	Debtors outstanding for more than six months from the date they became due to be shown separately
15)	Other current liabilities	No specific mention for separate disclosure of Current maturities of long term debt	Current maturities of long term debt to be disclosed under other current liabilities.
15)	Other current liabilities	No specific mention for separate disclosure of Current maturities of finance lease obligation	Current maturities of finance lease obligation to be disclosed.
16)	Separate line item (Disclosure criteria )	any item under which expense exceeds one per cent of the total revenue of the company or Rs. 5,000 which ever is higher; shall be disclosed separately	any item of income / expense which exceeds one per cent of the revenue from operations or Rs. 1,00,000, which ever is higher; to be disclosed separately
17)	Expense classification	Function wise & nature wise	Expenses in Statement of Profit and Loss to be classified based on nature of expenses
18)	Finance Cost	Finance cost to be classified in fixed loans & other loans	Finance cost shall be classified as interest expense, other borrowing costs & Gain / Loss on foreign currency transaction & translation
19)	Foreign exchange gain / loss	Gain / Loss on foreign currency transaction to be shown under finance cost	Gain / Loss on foreign currency transaction to be separated into finance costs and other expenses
20)	Purchases	The purchase made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities thereof.	Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted.Goods-in-transit to be separately disclosed.
21)	TDS amount on Interest, royalty received	TDS amount was required to be shown for Interest income etc.	No requirement of disclosing TDS amounts separately
22)	Managerial Remuneration and Commission	Payment to directors and detailed calculation under section 198 was required to be disclosed	No disclosure requirements for Managerial Remuneration
23)	ESOP expenses	No requirement to show separately as part of Employee Benefits expense	Expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP) to be shown separately as part of Employee Benefits expense
24)	Part III-Interpretation	Terms provision, reserve, capital reserve , quoted investment etc. were defined	No such specific definitions.
25)	Part IV- Balance Sheet Abstract	Details of company registration number, capital raised, Balance Sheet details, products etc. were required to be attached with financials	No such requirement.