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      Ministry of Corporate Affairs (MCA ) has revised Schedule VI of the Companies Act 1956 which has become applicable from April 1, 2011.

      A quick comparative between old schedule VI and Revised Schedule VI given below:

      I) General

      1) Old Schedule VI contained Four Parts
      Part I — Form of Balance Sheet
      Part II — Requirements as to Profit & Loss A/c.
      Part III — Interpretation
      Part IV — Balance Sheet Abstract and Company’s General Business Profile
      Revised Schedule VI contains two Parts
      Part I - Form of Balance Sheet includes general instructions for preparation of Balance Sheet
      Part II - Form of Profit & Loss Account and includes general instructions for preparation of statement of Profit and Loss

      2) Old schedule VI was silent whether the Schedule VI overrides the Accounting Standards or vice versa. Whereas under Revised Schedule VI, Accounting Standards shall override Sch. VI inasmuch as:
      a) where the compliance with the Act and the Accounting Standards require any change in treatment or disclosure, in the financial statements or statements forming part thereof, the requirements of Sch. VI shall stand modified accordingly
      b) The disclosure requirements specified in Part I and Part II of the Schedule are in addition and not in substitution of the disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, 1956.

      3) Old Schedule VI gives both, horizontal as well as vertical formats of Balance Sheet. Under Revised Schedule VI only vertical format is given.

      4) Concept of presenting details in Schedules under Old Schedule VI whereas under Revised Schedule VI concept of presenting details in Schedules is replaced by presenting details in notes to account.

      5) Rounding Off under Old Schedule VI had three slabs
      — less than Rs. 100 crores
      — Rs. 100 crores or more but less than Rs. 500 crore
      — Rs. 500 crores or more
      Rounding Off - Two slabs under Revised Schedule VI
      — less than Rs. 100 crores
      — Rs. 100 crores or more
      If turnover exceeds 100 crore rupees, rounding off not permissible in hundreds or thousands

      II) Balance Sheet Changes

      a) Liabilities Side of Balance Sheet:
      1) Sources of Funds has been replaced with the term ‘Equities and Liabilities’
      2) Company would need to show the shares held more than 5% in a company under separate schedule along with the number of shares
      3) No separate mention of Share Application Money pending allotment under old schedule VI whereas under revised schedule VI Share Application Money pending allotment to be separately disclosed after Shareholder’s Funds
      4) Liabilities are broadly classified into
      Current Liabilities
      Non-Current Liabilities
      5) Profit & Loss Account (Debit Bal.) had to be disclosed separately under Application of Funds under old schedule now to be shown to be shown under Reserves & Surplus under Equities & Liabilities) as a negative item
      6) Provisions to be classified as Short term provisions and Long Term Provisions.

      b)Assets Side of the Balance Sheet:
      1) ‘Application of Funds’ has been replaced with the term ‘Assets’
      2) Fixed Assets to be classified as Tangible and Intangible Assets and Capital Work in Progress and Intangible Assets under Development on the face of the Balance Sheet.
      3) Capital Advances to form a part of Long Term Loans and Advances under Non-Current Assets
      4) Broad classification of Current and Non- Current Assets
      5) Investments to be classified as Current and Non-Current Investments on the face of the Balance Sheet.
      6) Nomenclature of Sundry Debtors has been changed to Trade Receivables
      7) Cash and Bank Balance has been termed as Cash and Cash Equivalents and further a number of further classification under this head
      8) Deferred Tax Assets to be shown under Current Assets

      III) Profit and Loss
      Profit and Loss Account is now termed as Statement of Profit and Loss and a format has been prescribed for the same.
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