Ministry of Corporate Affairs revised Schedule VI to the Companies Act, 1956 on 28th February 2012 vide Notification F.No.2/6/2008-C.L.-V. It deals with revise format of Balance sheet and statement of Profit and Loss and disclosure made there in. It will apply to all companies for financial statement prepared on or after Ist April, 2011.
- Apart from the disclosure required in Accounting Standards and the Companies Act 1956, additional disclosure is required to be made as prescribed in Part 1 and Part 2 of the schedule.
- All items of assets and liabilities should be bifurcated between Current and Non-Current.
- Any Assets or Liability should be classified as current if the following any of the condition is satisfied.
* It is expected to be realized in company's normal operating cycle.
* It is held for the purpose of trading.
* It is likely to be settled in twelve month after reporting date.
* Any liability that company cannot defer settlement for at least 12 month after reporting date.
- All Asset or Liabilities other than Current should be classified as Non Current.
- Reconciliation of opening and closing outstanding number of shares and number of shareholders holding 5% or more shares, required to disclosed.
- Terms and amount of share reserved for issue under option and commitments for divestment should be disclosed.
- For five preceding years, aggregate numbers of Share Allotted, Bonus Share, Share bought back. Conversion made and share forfeited should be disclosed.
- Loss should be shown under the head surplus as negative amount.
- Loan Guaranteed by related part should be shown separately.
- Unpaid dividend should be shown under other current liabilities.
- Provision for Employ benefit should be shown separately under Provisions head.
- Asset under Lease should be shown separately.
- Investment in Companies, Partnership firm should be shown separately.
- Earlier there was a head for Miscellaneous Expenditure, which is omitted.
- Separate disclosure should be made of an aggregate amount of outstanding Trade Receivables exceeding for a period six months from the due date of Invoice.
- Separate disclosure of Income and Expenditure, which exceeds 1% of revenue, or Rs. 1,00,000/- whichever is higher should be made.
- Expenses on ESOP should be shown separately.
- Net loss/gain on foreign currency transaction should be shown separately under Finance cost.