Skip to main content

Revised Schedule VI


The Ministry of Corporate Affairs (MCA) has issued a revised Schedule VI to the Companies Act 1956 on the 28th February 2011.

This revised Schedule VI has nothing to do with the converged Indian Accounting Standards (IND AS) as notified by the Ministry earlier. The Schedule has been framed been framed as per the existing non-converged Indian Accounting Standards (AS) notified under the Companies (Accounting Standards) Rules, 2006. This Schedule will apply to all the companies registered with ROC for the financial statements to be prepared for the financial year 2010 - 2011 and onwards.

The highlights of the Revised Schedule VI is as follows:


1. Applies to all companies following non-converged Indian Accounting Standards

2. No possibility of conflict between Accounting Standard and Schedule VI as on modification of accounting standards prescribed under the companies act, Schedule VI would stand modified accordingly

3. The disclosure requirement of revised Schedule VI are in addition to that required by Accounting Standards prescribed under the Companies Act

4. All disclosures required by Companies Act to be made in notes to accounts

5. Cross-referencing each line item with notes and vice versa required

6. Unit of measurement selected to used uniformly in financial statements

7. One year comparatives required

8. Classification of all assets and liabilities into current and non-current

9. Definition of current asset and current liability in line with converged Ind AS 1 or IAS 1

10. Nature and purpose of each reserve to be stated only for those aggregated under “Other Reserves”

11. Debit balance of Profit and Loss Account to be shown as negative figure in Surplus

12. Reserve and Surplus balance can be negative

13. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified

14. Dividends proposed to be disclosed

15. Expenses in Statement of Profit and Loss to be classified based on nature of expenses

16. Gain / Loss on foreign currency transaction to be separated into finance costs and other expenses

17. Disclosure of quantitative details of goods diluted.


Please click on the link above for a copy of the Revised Schedule VI.

Comments

Post a Comment

Popular posts from this blog

Maintenance Charges Default: No Water, No Sympathy

In what can only be described as a case of forum shopping (trying to find the friendliest court), an apartment owner in Shiv Vihar CHS, Dombivali (East), took his complaints on a legal tour. The petitioner, Vilas Gopal Dongare member of the society was unhappy. Why? Because his water supply was cut off. The reason? He had not paid his maintenance bills, which had piled up to a whopping Rs. 7 Lakhs! Despite making several complaints about the alleged harassment by the society and even a water tank causing structural issues in his building, his cries were heard and promptly dismissed. The Maharashtra State Human Rights Commission looked into his case and, on 05.02.2020, decided it was not a human rights violation. They said, “Pay your bills first.” The society initiated proceedings under Section 101 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) to recover arrears and got a Recovery Certificate issued in its favour. When the petitioner’s appeal against this certificate wa...
Post a Comment
Read more

AMORTISED COST CALCULATION: THE EFFECTIVE INTEREST RATE (EIR)

IAS 39 mandates some financial assets and liabilities to be subsequently measured at ‘amortized cost’.  This measurement concept is a management theory put in accounting practice. It means that the contractual interest rate each period should be adjusted to amortize the transaction costs over the expected life of the financial instrument. The amortization is calculated on an effective interest rate (EIR) / yield-to-maturity (YTM) basis. The EIR is the rate that exactly discounts the stream of principal and interest cash flows excluding any impact of credit losses, to the initial net proceeds. It is important to note that EIR method does not take into account any future credit impairments anticipated on that instrument. The carrying amount of the financial instrument subsequently measured at amortized cost is computed as: Transaction costs are an integral part of the amortized cost calculation. They are defined as costs that are directly attributable to the acquisit...
49 comments
Read more

Court Upholds Co-operative Membership Transfer with Release Deed

In the case of Bima Nagar Co-operative Housing Society Ltd. v. Divisional Joint Registrar & Ors. WP 10768 of 2024 , the Bombay High Court on 23.09.2024 dismissed the society’s petition challenging the membership transfer to Pushpa Morey, a widow, following her husband's death. Initially, Pushpa was granted provisional membership but was later denied full membership by the society. Pushpa applied for full membership after her husband's passing. When the society refused, she sought help from the Deputy Registrar, who ordered that the society admit her as a full member under Section 22(2) of the Maharashtra Co-operative Societies Act, 1960. The society’s appeal to the Divisional Joint Registrar was unsuccessful, prompting the writ petition in the Bombay High Court. The society argued that the "family arrangement" concept under Section 154B-13 of the Maharashtra Co-operative Societies Act applies only to a Hindu Undivided Family (HUF). Pushpa, however, contended tha...
2 comments
Read more