SCHEDULE VI - Form of Balance-sheet The balance sheet of a company shall be either in horizontal form or vertical form - Companies Act, 1956

SCHEDULE VI ( See section 211) GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS OF A COMPANY IN ADDITION TO THE NOTES INCORPORATED ABOVE THE HEADING OF BALANCE SHEET UNDER GENERAL INSTRUCTIONS 1. Where compliance with the requirements of the Act including Accounting Standards as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head/sub-head or any changes inter se , in the financial statements or statements forming part thereof, the same shall be made and the requirements of the Schedule VI shall stand modified accordingly. 2. The disclosure requirements specified in Part I and Part II of this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, 1956. Additional disclosures specified in the Accounting Standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act shall be made in the notes to accounts in addition to the requirements set out in this Schedule. 3. Notes to accounts shall contain information in addition to that presented in the Financial Statements and shall provide where required ( a ) narrative descriptions or disaggregations of items recognized in those statements and ( b ) information about items that do not qualify for recognition in those statements. Each item on the face of the Balance Sheet and Statement of Profit and Loss shall be cross-referenced to any related information in the notes to accounts. In preparing the Financial Statements including the notes to accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation. 4. Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as below: Turnover Rounding off ( i ) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. ( ii ) one hundred crore rupees or more To the nearest, lakhs, millions or crores, or decimals thereof. Once a unit of measurement is used, it should be used uniformly in the Financial Statements. 5. Except in the case of the first Financial Statements laid before the Company (after its incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including notes shall also be given. 6. For the purpose of this Schedule, the terms used herein shall be as per the applicable Accounting Standards. Notes This part of Schedule sets out the minimum requirements for disclosure on the face of the Balance Sheet, and the Statement of Profit and Loss (hereinafter referred to as Financial Statements for the purpose of this Schedule) and Notes. Line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the company s financial position or performance or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act or under the Accounting Standards. PART I Form of BALANCE SHEET Name of the Company . Balance Sheet as at (Rupees in ) Particulars Note No. Figures as at the end of current reporting period Figures as at the end of the previous reporting period 1 2 3 4 I. I.EQUITY AND LIABILITIES (1) Shareholders funds ( a ) Share capital ( b ) Reserves and surplus ( c ) Money received against share warrants (2) Share application money pending allotment (3) Non-current liabilities ( a ) Long-term borrowings ( b ) Deferred tax liabilities (Net) ( c ) Other Long-term liabilities ( d ) Long-term provisions (4) Current liabilities ( a ) Short-term borrowings ( b ) Trade payables ( c ) Other current liabilities ( d ) Short-term provisions TOTAL II. ASSETS Non-current assets (1) ( a ) Fixed assets ( i ) Tangible assets ( ii ) Intangible assets ( iii ) Capital work-in-progress ( iv ) Intangible assets under development ( b ) Non-current investments ( c ) Deferred tax assets (net) ( d ) Long-term loans and advances ( e ) Other non-current assets (2) Current assets ( a ) Current investments ( b ) Inventories ( c ) Trade receivables ( d ) Cash and cash equivalents ( e ) Short-term loans and advances ( f ) Other current assets TOTAL See accompanying notes to the financial statements Notes GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET 1. An asset shall be classified as current when it satisfies any of the following criteria: ( a ) it is expected to be realized in, or is intended for sale or consumption in, the company s normal operating cycle; ( b ) it is held primarily for the purpose of being traded; ( c ) it is expected to be realized within twelve months after the reporting date; or ( d ) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets shall be classified as non-current. 2. An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a duration of 12 months. 3. A liability shall be classified as current when it satisfies any of the following criteria: ( a ) it is expected to be settled in the company s normal operating cycle; ( b ) it is held primarily for the purpose of being traded; ( c ) it is due to be settled within twelve months after the reporting date; or ( d ) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current. 4. A receivable shall be classified as a trade receivable if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business. 5. A payable shall be classified as a trade payable if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. 6. A company shall disclose the following in the notes to accounts: A. Share Capital for each class of share capital (different classes of preference shares to be treated separately): ( a ) the number and amount of shares authorized; ( b ) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid; ( c ) par value per share; ( d ) a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period; ( e ) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital; ( f ) shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate; ( g ) shares in the company held by each shareholder holding more than 5 per cent shares specifying the number of shares held; ( h ) shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts; ( i ) for the period of five years immediately preceding the date as at which the Balance Sheet is prepared: u Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. u Aggregate number and class of shares allotted as fully paid up by way of bonus shares. u Aggregate number and class of shares bought back. ( j ) terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date; ( k ) calls unpaid (showing aggregate value of calls unpaid by directors and officers); ( l ) forfeited shares (amount originally paid up). B. Reserves and Surplus ( i ) Reserves and Surplus shall be classified as: ( a ) Capital Reserves; ( b ) Capital Redemption Reserve; ( c ) Securities Premium Reserve; ( d ) Debenture Redemption Reserve; ( e ) Revaluation Reserve; ( f ) Share Options Outstanding Account; ( g ) Other Reserves (specify the nature and purpose of each reserve and the amount in respect thereof);] ( h ) Surplus i.e., balance in Statement of Profit Loss disclosing allocations and appropriations such as dividend, bonus shares and transfer to/from reserves etc. (Additions and deductions since last balance sheet to be shown under each of the specified heads). ( ii ) A reserve specifically represented by earmarked investments shall be termed as a fund . ( iii ) Debit balance of statement of profit and loss shall be shown as a negative figure under the head Surplus . Similarly, the balance of Reserves and Surplus , after adjusting negative balance of surplus, if any, shall be shown under the head Reserves and Surplus even if the resulting figure is in the negative. C. Long-Term Borrowings ( i ) Long-term borrowings shall be classified as: ( a ) Bonds/debentures. ( b ) Term loans u from banks. u from other parties. ( c ) Deferred payment liabilities. ( d ) Deposits. ( e ) Loans and advances from related parties. ( f ) Long-term maturities of finance lease obligations. ( g ) Other loans and advances (specify nature). ( ii ) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. ( iii ) Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. ( iv ) Bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due. ( v ) Particulars of any redeemed bonds/ debentures which the company has power to reissue shall be disclosed. ( vi ) Terms of repayment of term loans and other loans shall be stated. ( vii ) Period and amount of continuing default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. D. Other Long-term Liabilities Other Long-term Liabilities shall be classified as: ( a ) Trade payables. ( b ) Others. E. Long-term provisions The amounts shall be classified as: ( a ) Provision for employee benefits. ( b ) Others (specify nature). F. Short-term borrowings ( i ) Short-term borrowings shall be classified as: ( a ) Loans repayable on demand u from banks. u from other parties. ( b ) Loans and advances from related parties. ( c ) Deposits. ( d ) Other loans and advances (specify nature). ( ii ) Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. ( iii ) Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed. ( iv ) Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case. G. Other current liabilities The amounts shall be classified as: ( a ) Current maturities of long-term debt; ( b ) Current maturities of finance lease obligations; ( c ) Interest accrued but not due on borrowings; ( d ) Interest accrued and due on borrowings; ( e ) Income received in advance; ( f ) Unpaid dividends; ( g ) Application money received for allotment of securities and due for refund and interest accrued thereon. Share application money includes advances towards allotment of share capital. The terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed. It shall also be disclosed whether the company has sufficient authorized capital to cover the share capital amount resulting from allotment of shares out of such share application money. Further, the period for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed. Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable i.e. , the amount in excess of subscription or in case the requirements of minimum subscription are not met, shall be separately shown under ther current liabilities ; ( h ) Unpaid matured deposits and interest accrued thereon; ( i ) Unpaid matured debentures and interest accrued thereon; ( j ) Other payables (specify nature). H. Short-term provisions The amounts shall be classified as: ( a ) Provision for employee benefits. ( b ) Others (specify nature). I. Tangible assets ( i ) Classification shall be given as: ( a ) Land. ( b ) Buildings. ( c ) Plant and Equipment. ( d ) Furniture and Fixtures. ( e ) Vehicles. ( f ) Office equipment. ( g ) Others (specify nature). ( ii ) Assets under lease shall be separately specified under each class of asset. ( iii ) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately. ( iv ) Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. J. Intangible assets ( i ) Classification shall be given as: ( a ) Goodwill. ( b ) Brands /trademarks. ( c ) Computer software. ( d ) Mastheads and publishing titles. ( e ) Mining rights. ( f ) Copyrights, and patents and other intellectual property rights, services and operating rights. ( g ) Recipes, formulae, models, designs and prototypes. ( h ) Licenses and franchise. ( i ) Others (specify nature). ( ii ) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately. ( iii ) Where sums have been written off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase. K. Non-current investments ( i ) Non-current investments shall be classified as trade investments and other investments and further classified as: ( a ) Investment property; ( b ) Investments in Equity Instruments; ( c ) Investments in preference shares; ( d ) Investments in Government or trust securities; ( e ) Investments in debentures or bonds; ( f ) Investments in Mutual Funds; ( g ) Investments in partnership firms; ( h ) Other non-current investments (specify nature). Under each classification, details shall be given of names of the bodies corporate (indicating separately whether such bodies are ( i ) subsidiaries, ( ii ) associates, ( iii ) joint ventures, or ( iv ) controlled special purpose entities) in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. ( ii ) Investments carried at other than at cost should be separately stated specifying the basis for valuation thereof. ( iii ) The following shall also be disclosed: ( a ) Aggregate amount of quoted investments and market value thereof; ( b ) Aggregate amount of unquoted investments; ( c ) Aggregate provision for diminution in value of investments. L. Long-term loans and advances ( i ) Long-term loans and advances shall be classified as: ( a ) Capital Advances; ( b ) Security Deposits; ( c ) Loans and advances to related parties (giving details thereof); ( d ) Other loans and advances (specify nature). ( ii ) The above shall also be separately sub-classified as: ( a ) Secured, considered good; ( b ) Unsecured, considered good; ( c ) Doubtful. ( iii ) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. ( iv ) Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. M. Other non-current assets Other non-current assets shall be classified as: ( i ) Long-term Trade Receivables (including trade receivables on deferred credit terms); ( ii ) Others (specify nature); ( iii ) Long-term Trade Receivables, shall be sub-classified as: ( i ) ( a ) Secured, considered good; ( b ) Unsecured considered good; ( c ) Doubtful. ( ii ) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. ( iii ) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. N. Current Investments ( i ) Current investments shall be classified as: ( a ) Investments in Equity Instruments; ( b ) Investment in Preference Shares; ( c ) Investments in Government or trust securities; ( d ) Investments in debentures or bonds; ( e ) Investments in Mutual Funds; ( f ) Investments in partnership firms; ( g ) Other investments (specify nature). Under each classification, details shall be given of names of the bodies corporate [indicating separately whether such bodies are ( i ) subsidiaries, ( ii ) associates, ( iii ) joint ventures, or ( iv ) controlled special purpose entities] in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). In regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given. ( ii ) The following shall also be disclosed: ( a ) The basis of valuation of individual investments; ( b ) Aggregate amount of quoted investments and market value thereof; ( c ) Aggregate amount of unquoted investments; ( d ) Aggregate provision made for diminution in value of investments. O. Inventories ( i ) Inventories shall be classified as: ( a ) Raw materials; ( b ) Work-in-progress; ( c ) Finished goods; ( d ) Stock-in-trade (in respect of goods acquired for trading); ( e ) Stores and spares; ( f ) Loose tools; ( g ) Others (specify nature). ( ii ) Goods-in-transit shall be disclosed under the relevant sub-head of inventories. ( iii ) Mode of valuation shall be stated. P. Trade Receivables ( i ) Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated. ( ii ) Trade receivables shall be sub-classified as: ( a ) Secured, considered good; ( b ) Unsecured, considered good; ( c ) Doubtful. ( iii ) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. ( iv ) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. Q. Cash and cash equivalents ( i ) Cash and cash equivalents shall be classified as: ( a ) Balances with banks; ( b ) Cheques, drafts on hand; ( c ) Cash on hand; ( d ) Others (specify nature). ( ii ) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. ( iii ) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. ( iv ) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. ( v ) Bank deposits with more than 12 months maturity shall be disclosed separately. R. Short-term loans and advances ( i ) Short-term loans and advances shall be classified as: ( a ) Loans and advances to related parties (giving details thereof); ( b ) Others (specify nature). ( ii ) The above shall also be sub-classified as: ( a ) Secured, considered good; ( b ) Unsecured, considered good; ( c ) Doubtful. ( iii ) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. ( iv ) Loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated. S. Other current assets (specify nature) This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories. T. Contingent liabilities and commitments (to the extent not provided for) ( i ) Contingent liabilities shall be classified as: ( a ) Claims against the company not acknowledged as debt; ( b ) Guarantees; ( c ) Other money for which the company is contingently liable. ( ii ) Commitments shall be classified as: ( a ) Estimated amount of contracts remaining to be executed on capital account and not provided for; ( b ) Uncalled liability on shares and other investments partly paid; ( c ) Other commitments (specify nature). U. The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on preference shares shall also be disclosed separately. V. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, there shall be indicated by way of note how such unutilized amounts have been used or invested. W. If, in the opinion of the Board, any of the assets other than fixed assets and non-current investments do not have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion, shall be stated. PART II Form of STATEMENT OF PROFIT AND LOSS Name of the Company . Profit and loss statement for the year ended (Rupees in ) Particulars Note No. Figures for the current reporting period Figures for the previous reporting period I. Revenue from operations xxx xxx II. Other income xxx xxx III. Total Revenue (I + II) xxx xxx IV. Expenses: Cost of materials consumed xxx xxx Purchases of Stock-in-Trade xxx xxx Changes in inventories of finished goods work-in-progress and Stock-in-Trade xxx xxx Employee benefits expense Finance costs Depreciation and amortization expense Other expenses Total expenses xxx xxx V. Profit before exceptional and extraordinary items and tax (III-IV) xxx xxx VI. Exceptional items xxx xxx VII. Profit before extraordinary items and tax (V - VI) xxx xxx VIII. Extraordinary Items xxx xxx IX. Profit before tax (VII- VIII) xxx xxx X Tax expense: (1) Current tax xxx xxx (2) Deferred tax xxx xxx XI Profit (Loss) for the period from continuing operations (VII-VIII) xxx xxx XII Profit/(loss) from discontinuing operations xxx xxx XIII Tax expense of discontinuing Operations xxx xxx XIV Profit/(loss) from Discontinuing operations (after tax) (XII-XIII) xxx xxx XV Profit (Loss) for the period (XI + XIV) xxx xxx XVI Earnings per equity share: (1) Basic xxx xxx (2) Diluted xxx xxx See accompanying notes to the financial statements GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS 1. The provisions of this Part shall apply to the income and expenditure account referred to in sub-section (2) of section 210 of the Act, in like manner as they apply to a statement of profit and loss. 2. (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from : ( a ) sale of products; ( b ) sale of services; ( c ) other operating revenues; Less : ( d ) excise duty. (B) In respect of a finance company, revenue from operations shall include revenue from ( a ) Interest; and ( b ) Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable. 3. Finance Costs Finance costs shall be classified as: ( a ) Interest expense; ( b ) Other borrowing costs; ( c ) Applicable net gain/loss on foreign currency transactions and translation. 4. Other income Other income shall be classified as: ( a ) Interest Income (in case of a company other than a finance company); ( b ) Dividend Income; ( c ) Net gain/loss on sale of investments; ( d ) Other non-operating income (net of expenses directly attributable to such income). 5. Additional Information A Company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:- ( i ) ( a ) Employee Benefits Expense [showing separately ( i ) salaries and wages, ( ii ) contribution to provident and other funds, ( iii ) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), ( iv ) staff welfare expenses]; ( b ) Depreciation and amortization expense; ( c ) Any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs. 1,00,000, whichever is higher; ( d ) Interest Income; ( e ) Interest Expense; ( f ) Dividend Income; ( g ) Net gain/ loss on sale of investments; ( h ) Adjustments to the carrying amount of investments; ( i ) Net gain or loss on foreign currency transaction and translation (other than considered as finance cost); ( j ) Payments to the auditor as ( a ) auditor, ( b ) for taxation matters, ( c ) for company law matters, ( d ) for management services, ( e ) for other services, ( f ) for reimbursement of expenses; ( k ) Details of items of exceptional and extraordinary nature; ( l ) Prior period items. ( ii ) ( a ) In the case of manufacturing companies,- (1) Raw materials under broad heads. (2) goods purchased under broad heads. ( b ) In the case of trading companies, purchases in respect of goods traded in by the company under broad heads. ( c ) In the case of companies rendering or supplying services, gross income derived form services rendered or supplied under broad heads. ( d ) In the case of a company, which falls under more than one of the categories mentioned in ( a ), ( b ) and ( c ) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads. ( e ) In the case of other companies, gross income derived under broad heads. ( iii ) In the case of all concerns having works-in-progress, works-in-progress under broad heads. ( iv ) ( a ) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance-sheet is made up. ( b ) The aggregate, if material, of any amounts withdrawn from such reserves. ( v ) ( a ) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments. ( b ) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. ( vi ) Expenditure incurred on each of the following items, separately for each item:- ( a ) Consumption of stores and spare parts. ( b ) Power and fuel. ( c ) Rent. ( d ) Repairs to buildings. ( e )/( f ) Repairs to machinery. ( g ) Insurance . ( h ) Rates and taxes, excluding, taxes on income. ( i ) Miscellaneous expenses. ( vii ) ( a ) Dividends from subsidiary companies. ( b ) Provisions for losses of subsidiary companies. ( viii ) The profit and loss account shall also contain by way of a note the following information, namely:- ( a ) Value of imports calculated on C.I.F. basis by the company during the financial year in respect of I. Raw materials; II. Components and spare parts; III. Capital goods; ( b ) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; ( c ) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; ( d ) The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related; ( e ) Earnings in foreign exchange classified under the following heads, namely:- I. Export of goods calculated on F.O.B. basis; II. Royalty, know-how, professional and consultation fees; III. Interest and dividend; IV. Other income, indicating the nature thereof. Note:-Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements. 82 [2. The notification shall come into force for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 1.4.2011. ] [Date of enforcement of Schedule VI is 1-4-2011 as per www.mca.gov.in ] ----------------------------------------------- Notes:- [1] Substituted by the Companies (Amendment) Act, 1960, Act No. 65 of 1960, section 217. [2] Inserted by Notification No. GSR 220(E), dated 12-3-1979. [3] Inserted by Notification No. GSR 129, dated 3-1-1968. Omitted by Notification No. GSR 226(E), dated 31-3-2009, w.e.f. 31-3-2009. Prior to omission, it read as under: [ Where the original cost aforesaid and additions and deductions thereto, relate to any fixed asset which has been acquired from a country outside India, and in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there has been an increase or reduction in the liability of the company, as expressed in Indian currency, for making payment towards the whole or a part of the cost of the asset or for repayment of the whole or a part of moneys borrowed by the company from any person, directly or indirectly in any foreign currency specifically for the purpose of acquiring the asset (being in either case the liability existing immediately before the date on which the change in the rate of exchange takes effect), the amount by which the liability is so increased or reduced during the year, shall be added to, or, as the case may be deducted from the cost, and the amount arrived at after such addition or deduction shall be taken to be the cost of the fixed asset. Explanation 1: This paragraph shall apply in relation to all balance-sheets that may be made out as at the 6th day of June,1966, or any day thereafter and where, at the date of issue of the notification of the Government of India, in the Ministry of Industrial Development and Company Affairs (Department of Company Affairs), G.S.R. No. 129, dated the 3rd day of January, 1968, any balance sheet, in relation, to which this paragraph applies, has already been made out and laid before the company in Annual General Meeting, the adjustment referred to in this paragraph may be made in the first balance-sheet made out after the issue of the said notification. Explanation 2. In this paragraph, unless the context otherwise requires, the expressions "rate of exchange", "foreign currency" and "Indian currency" shall have the meanings respectively assigned to them under sub-section (1) of section 43A of the Income-tax Act, 1961 (43 of 1961), and Explanation 2 and Explanation 3 of the said sub-section shall, as far as may be, apply in relation to the said paragraph as they apply to the said sub-section (1). ]. [4] Inserted by Notification No. GSR 414, dated 21-3-1961. [5] Substituted by Notification No. GSR 414, dated 21-3-1961. [6] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [7] Inserted by Notification No. GSR 414, dated 21-3-1961. [8] Substituted, by Notification No. GSR 414, dated 21-3-1961. [9] Substituted by Notification No. GSR 414, dated 21-3-1961. [10] Inserted by Notification No. 129, dated 3-1-1968. [11] Substituted by Notification No. GSR 414, dated 21-3-1961. [12] Inserted by Notification No. 494(E), dated 9-11-1973. [13] Inserted by Notification No. GSR 423(E), dated 13-9-1996. [14] Inserted by Notification No. GSR 423(E), dated 13-9-1996. [15] Substituted by Notification No. GSR 414, dated 21-3-1961. [16] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [17] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [18] Substituted by Notification No. GSR 414, dated 21-3-1961. [19] Substituted by Notification No. GSR 414, dated 21-3-1961. [20] Substituted by Notification No. GSR 78, dated 4-1-1963. [21] Substituted by Notification No. GSR 414, dated 21-3-1961. [22] Substituted by Notification No. GSR 414, dated 21-3-1961. [23] Substituted by Notification No. GSR 78, dated 4-1-1963. [24] Substituted by Notification No. GSR 78, dated 4-1-1963. [25] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. [26] Inserted by Notification No. GSR 423(E), dated 13-9-1996. [27] Inserted by Notification No. GSR 414, dated 21-3-1961. [28] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. [29] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. [30] Item (8) relettered as sub-item ( a ) by Notification No. GSR 494(E), dated 30-10-1973. [31] Inserted by Notification No. GSR 494(E), dated 30-10-1973. [32] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [33] Substituted by Notification No. GSR 376(E), dated 22-5-2002. [34] Substituted by Notification No. GSR 78, dated 4-1-1963. [35] Inserted by Notification No. GSR 129(E), dated 22-2-1999. [36] Substituted Notification No. GSR 762(E), dated 13-11-2002. [37] Substituted by Notification No. GSR 414, dated 21-3-1961. [38] Inserted by Notification No. GSR 414, dated 21-3-1961. [39] Substituted by Notification No. GSR 414, dated 21-3-1961. [40] Inserted, Notification No. GSR 414, dated 21-3-1961. [41] Substituted by Notification No. GSR 414, dated 21-3-1961. [42] Substituted by Notification No. GSR 414, dated 21-3-1961. [43] Substituted by Notification No. GSR 414, dated 21-3-1961. [44] Substituted by Notification No. GSR 414, dated 21-3-1961. [45] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [46] Substituted by Notification No. GSR 414, dated 21-3-1961. [47] Substituted by Notification No. GSR 494(E), dated 30-10-1973. [48] Substituted by Notification No. GSR 414, dated 21-3-1961. [49] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [50] Inserted by Notification No. GSR 129(E), dated 22-2-1999. [51] Inserted by Notification No. GSR 220(E), dated 12-3-1979. [52] Substituted by Notification No. GSR 545(E), dated 1-8-2002. [53] Substituted by Notification No. GSR 494(E), dated 30-10-1973. [54] Substituted by Notification No. GSR 414, dated 21-3-1961. [55] Substituted by Notification No. GSR 494(E), dated 30-10-1973. [56] Substituted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 217. [57] Inserted by Notification No. GSR 414, dated 21-3-1961. [58] Inserted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 217. [59] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 with effect from 3-4-1970. [60] Substituted by Notification No. GSR 414, dated 21-3-1961. [61] Inserted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 217. [62] Note renumbered as Note 1 by Notification No. 1665, dated 9-10-1971. [63] Omitted by Notification No. SO 723(E), dated 18-9-1990. [64] Inserted by Notification No. GSR 494(E), dated 30-10-1973. [65] Inserted by Notification No. GSR 494(E), dated 30-10-1973. [66] Inserted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 217. [67] Substituted for para 4 by paras 4, 4A and 4B by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 217. [68] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [69] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [70] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [71] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [72] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [73] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [74] Substituted by Notification No. GSR 78, dated 4-1-1963. [75] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970. [76] Substituted by Notification No. GSR 78, dated 4-1-1963. [77] The word "and" omitted by Notification No. GSR 455, dated 27-4-1974. [78] Substituted, by Notification No. GSR 455, dated 27-4-1974. [79] Substituted for para 4C by paras 4C and 4D by Notification No. GSR 494(E), dated 30-10-1973. [80] Inserted by Notification No. GSR 388(E), dated 15-5-1995. [81] Replaced vide Notification No. S.O. 447(E), DATED 28-2-2011, before it was read as:- SCHEDULE VI ( See section 211) [1] [PART I Form of Balance-sheet] [2] [ The balance sheet of a company shall be either in horizontal form or vertical form A. HORIZONTAL FORM] Balance sheet of ................ [Here enter the name of the Company] As at ............. [Here enter the date as at which the balance-sheet is made out.] Instructions in LIABILITIES ASSETS Instructions in accordance accordance with with which assets should which liabilities Figures Figures Figures Figures be made out should be made out for the for the for the for the previous current previous current year year year year Rs. Rs. Rs. Rs. ( b ) ( b ) ( b ) ( b ) *Share Capital *Fixed Assets *Terms of redemption or conversion (if any), of any redeemable preference capital to be stated, together with earliest date of redemption or conversion. Authorised .... shares of Rs..... each. +Issued (distinguishing between the various classes of capital and stating the Distinguishing as far as possible between expenditure upon ( a ) goodwill, ( b ) land, ( c ) buildings, ( d ) leaseholds, ( e ) rail-way sidings, ( f ) plant and machinery, ( g ) furniture and *Under each head the original cost, and the additions there-to and deductions therefrom during the year, and the total depreciation written off or provided up to the end of the year to be stated. +Particulars of any option on un-issued share capital to be specified. particulars specified below, in respect of each class) ....shares of Rs. ... each. fittings, ( h ) development of property, ( i ) patents, trade marks and designs, ( j ) live-stock and ( k ) vehicles, etc. [3] [Where the original cost aforesaid and additions and deductions thereto, relate to any fixed asset which has been acquired from a country outside +Particulars of the different classes of preference shares to be given. +Subscribed (distinguishing between the various classes of Capital and stating the particulars specified below in respect of each class). ( c ) ...shares of Rs. ... ach. Rs. ... ..........called up. Of the above shares....... shares are allotted as fully paid-up pursuant to a contract without payments being received in cash. India, and in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there has been an increase or reduction in the liability of the company, as expressed in Indian currency, for making payment towards the whole or a part of the cost of the asset or for repayment of the whole or a part of moneys borrowed by the company from any person, directly or indirectly in any foreign currency specifically for the purpose of [4] [Specify the source from which bonus shares are issued, e.g. , capitalisa- tion of profits or Reserves or from Share Premium Account.] [5] [Of the above shares ..... shares are allotted as fully paid-up by way of bonus shares*] Less : Calls unpaid: [6] [( i ) By managing agent or secretaries and treasurers and where the managing agent or secretaries and treasurers are a firm, by the partners thereof, and where the managing agent or secretaries and treasurers are a private company by the directors or members of that company.] acquiring the asset (being in either case the liability existing immediately before the date on which the change in the rate of exchange takes effect), the amount by which the liability is so increased or reduced during the year, shall be added to, or, as the case may be deducted from the cost, and the amount arrived at after such addition or deduction shall be taken to be the cost of the fixed asset. Explanation 1: This paragraph shall apply in relation to all balance-sheets that may be made out as at the 6th day of June,1966, or any day thereafter and [7] [+Any capital profit on reissue of forfeited shares should be transferred to Capital Reserve. ( ii ) By directors. ( iii ) By others. [8] [+Add: Forfeited shares (amount originally paid up)]. where, at the date of issue of the notification of the Government of India, in the Ministry of Industrial Development and Company Affairs (Department of Company Affairs), G.S.R. No. 129, dated the 3rd day of January, 1968, any balance sheet, in relation, to which this paragraph applies, has already been made out and laid before the company in Annual General Meeting, the adjustment referred to in this paragraph may be made in the first balance-sheet made out after the issue of the said notification. Explanation 2 . In this paragraph, unless the context otherwise requires, the expressions "rate of exchange", "foreign currency" and "Indian currency" shall have the meanings respectively assigned to them under sub-section (1) of section 43A of the Income-tax Act, 1961 (43 of 1961), and Explanation 2 and Explanation 3 of the said sub-section shall, as far as may be, apply in relation to the said paragraph as they apply to the said sub-section (1). [9] [In every case where the original cost cannot be ascertained, without unreasonable expense or delay, the valuation shown by the books shall be given. For the purposes of this paragraph, such valuation shall be the net amount at which an asset stood in the company's books at the commencement of this Act after deduction of the amounts previously provided or written off for depreciation or diminution in value, and where any such asset is sold, the amount of sale proceeds shall be shown as deduction.] Where sums have been written off on a reduction of capital or a revaluation of assets, every balance sheet, (after the first balance sheet) subsequent to the reduction or revaluation shall show the reduced figures and with the date of the reduction in place of the original cost. Each balance sheet for the first five years subsequent to the date of the reduction, shall show also the amount of the reduction made. Similarly, where sums have been added by writing up the assets, every balance-sheet subsequent to such writing up shall show the increased figures with the date of the increase in place of the original cost. Each balance sheet for the first five years subsequent to the date of writing up shall also show the amount of increase made. [10] [ Explanation . Nothing contained in the preceding two paragraphs shall apply to any adjustment made in accordance with the second paragraph.] *Reserves and Surplus Investments *Additions and deductions since last balance sheet to be shown under each of the specified heads. The word "fund" in relation to any "Reserve" should be used only where such Reserve is specifically represented by earmarked investments. [11] [(1) Capital Reserves. (2) Capital Redemption Reserve. (3) Share Premium Account ( cc ). (4) Other Reserves speci-fying the nature of each Reserve and the amount in respect thereof. Less : Debit balance in profit and loss account (if any) ( h ). (5) Surplus i.e. , balance in profit and loss account after providing for proposed allocations, namely: Dividend, Bonus or Re-serves. (6) Proposed additions to Reserves. (7) Sinking Funds.] Showing nature of investments and mode of valuation, for example, cost or market value and distinguishing between *(1) Investments in Government or Trust Securities. *(2) Investments in shares, debentures or bonds (showing separately shares fully paid-up and partly paid up and also distinguishing the different classes of shares and showing also in similar details investments in shares, debentures or bonds of subsidiary companies. (3) Immovable properties. [12] [(4) Investments in the capital of partnership firms.] [13] [(5) Balance of unutilised monies raised by issue.] *Aggregate amount of company's quoted investment and also the market value thereof shall be shown. Aggregate amount of company's unquoted investments shall also be shown. [14] [All unutilised monies out of the issue must be separately disclosed in the Balance Sheet of the company indicating the form in which such unutilised funds have been invested.] Current Assets, Loans and Advances: A. Current Assets [15] [Loans from Directors, [16] [* * *] Manager should be shown separately. Interest accrued and due on Secured Loans should be included under the appropriate sub-heads under the head "Secured Loans". *The nature of the security to be specified in each case. Where loans have been guaranteed by [17] [* * *] managers and/or directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head. + Terms of redemption or conversion (if any) of debentures issued to be stated together with earliest date of redemption or conversion. Secured Loans: *(1) Debentures+ *(2) Loans and Advances from Banks. *(3) Loans and Advances from subsidiries. *(4) Other Loans and Advances. (1) Interest accrued on In- vestments ++(2) Stores and spare parts. [18] [(3) Loose Tools.] ++(4) Stock-in-trade. **(5) Works-in-Progress +(6) Sundry debtors ( a ) Debts outstanding for a period exceeding six months. ( b ) Other debts. [19] [ Less : Provision] ++Mode of valuation of stock shall be stated and the amount in respect of raw material shall also be stated separately where practicable. ** Mode of valuation of works in-progress shall be stated. +In regard to Sundry Debtors particulars to be given separately of ( a ) debts considered good and in respect of which the company is fully secured; and ( b ) debts considered good for which the company holds no security other than the debtor's personal security; and ( c ) debts considered doubtful or bad. Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member to be separately stated. [20] [Debts due from other companies under the same management within the meaning of sub-section (1B) of section 370, to be disclosed with the names of the Companies. The maximum amount due by directors or other officers of the company at any time during the year to be shown by way of a note. The [21] [provisions to be shown under this head should not exceed the amount of debts stated to be considered doubtful or bad and any surplus of such [22] [provision if already created, should be shown at every closing under "Reserves and Surplus" (in the liabilities side) under a separate sub-head "Reserve for Doubtful or Bad Debts". [23] [(7A) Cash balance on hand. *(7B) Bank balances [24] [*In regard to bank balances, particulars to be given separately of ( a ) with Scheduled Banks, and ( b ) with others. ( a ) the balances lying with Scheduled Banks on current accoounts, call accounts and deposit accounts; ( b ) the names of the bankers other than Scheduled Banks and the balance lying with each such banker on current accounts, call accounts and deposit accounts and the maximum amount outstanding at any time during the year from each such banker; and ( c ) the nature of the interest, if any, of any director or his relative or the [25] [* * *] in each of the bankers (other than Scheduled Banks) referred to in ( b ) above.] [26] [All unutilised monies out of the issue must be separately disclosed in the Balance Sheet of the company indicating the form in which such unutilised funds have been invested.] Unsecured Loans: (1) Fixed Deposits. + [27] [Loans from directors, [28] [***] manager should be shown separately. Interest accrued and due on Unsecured Loans should be included under the appropriate sub-heads under the head "Unsecured Loans".] +(2) Loans and Advances from subsidiaries. +(3) Short Term Loans and Advances: ( a ) From Banks. ( b ) From others. (4) Other Loans and Advances: B. Loans and Advances *The above instructions regarding "Sundry Debtors" apply to "Loans and Advances" also. +Where loans have been guaranteed by [29] [* * *] managers and/or directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head. ( a ) From Banks. (8) [30] [( a )] Advances and loans to subsidiaries. ( b ) From others. [31] [( b ) Advances and loans to partnership firms in which the company or any of its subsidiaries is a partner.] (9) Bills of Exchange. (10) Advances recoverable in cash or in kind or for value to be received, e.g. , Rates, Taxes, Insurance, etc. [32] [(11) * * *]. * See note ( d ) at foot of Current liabilities (12) Balances with Customs, Form and provisions Port Trust, etc. (where payable on demand). A. Current Liabilities [33] [The name(s) of small scale industrial under taking(s) to whom the company owe any sum together with interest outstanding for more than thirty days, are to be disclosed.] [34] [(1) Acceptances. (2) Sundry creditors. [35] [( i ) Total outstanding dues to small scale industrial undertaking(s); and ( ii ) Total outstanding dues of creditors other than small scale industrial undertaking(s).] (3) Subsidiary companies. (4) Advance payments and unexpired discounts for the portion for which value has still to be given e.g. , in the case of the following classes of companies: Newspaper, Fire Insurance, Theatres, Clubs, Banking, Steamship Companies, etc. [36] [(5) Investor Education and Protection Fund shall be credited by the following amounts namely: ( a ) Unpaid dividend; ( b ) Unpaid application money received by the companies for allotment of securities and due for refund; ( c ) Unpaid Matured Deposits; ( d ) Unpaid Matured Debentures; ( e ) Interest accrued on ( a ) to ( d ) above.] (6) Other Liabilities (if any). (7) Interest accrued but not due on loans.] B. Provisions [37] [(8) Provision for taxation. (9) Proposed dividends. (10) For contingencies. (11) For provident fund scheme. (12) For insurance, pension and similar staff benefit schemes. (13) Other provisions.] A foot-note to the balance- sheet may be added to show separately: (1) Claims against the company not acknowledged as debts. (2) Uncalled liability on shares partly paid. Miscellaneous Expenditure (to the extent not written off [38] [or adjusted]): The period for which the dividends are in arrear or if there is more than one class of shares, the dividends on each such class are in arrear, shall be stated. ++(3) Arrears of fixed cumulative dividends. (4) Estimated amount of contracts remaining to be executed on capital account and not provided for. (1) Preliminary expenses. (2) Expenses including commission or brokerage on underwriting or subscription of shares or debentures. The amount shall be stated before deduction of in-come-tax, except that in the case of tax-free dividends the amount shall be shown free of income-tax and the fact that it is so shown shall be stated. +The amount of any guarantees given by the company on behalf of Directors or other officers of the company shall be stated and where practicable, the general nature and amount of each such contingent liability, if material, shall also be specified. +(5) Other money for which the company is contingently liable. (3) Discount allowed on the issue of shares or debentures. (4) Interest paid out of capital during construction (also stating the rate of interest.) (5) Development expenditure not adjusted. (6) Other items (specifying nature). [39] [Profit and Loss Account.] [40] [+Show here the debit balance of profit and loss account carried forward after deduction of the uncommitted reserves, if any.] Notes . General instructions for preparation of balance sheet. ( a ) The information required to be given under any of the items or sub-items in this Form, if it cannot be conveniently included in the balance sheet itself, shall be furnished in a separate Schedule or Schedules to be annexed to and to form part of the balance sheet. This is recommended when items are numerous. ( b ) Naye Paise can also be given in addition to Rupees, if desired. ( c ) In the case of [41] [subsidiary companies] the number of shares held by the holding company as well as by the ultimate holding company and its subsidiaries must be separately stated. The auditor is not required to certify the correctness of such shareholdings as certified by the management. [42] [( cc ) The item "Share Premium Account" shall include details of its utilisation in the manner provided in section 78 in the year of utilisation.] ( d ) Short Term Loans will include those which are due for not more than one year as at the date of the balance-sheet. ( e ) Depreciation written off or provided shall be allocated under the different asset heads and deducted in arriving at the value of Fixed Assets. ( f ) Dividends declared by subsidiary companies after the date of the balance sheet [43] [should not be included] unless they are in respect of period which closed on or before the date of the balance sheet. ( g ) Any reference to benefits expected from contracts to the extent not executed shall not be made in the balance sheet but shall be made in the Board's report. [44] [( h ) The debit balance in the Profit and Loss Account shall be shown as a deduction from the uncommitted reserves, if any.] ( i ) As regards Loans and Advances, [45] [amounts due by the Managing Agents or Secretaries and Treasurers, either severally or jointly with any other persons to be separately stated;] [46] [the amounts due from other companies under the same management within the meaning of sub-section (1B) of section 370 should also be given with the names of the companies] the maximum amount due from every one of these at any time during the year must be shown. ( j ) Particulars of any redeemed debentures which the company has power to issue should be given. ( k ) Where any of the company's debentures are held by a nominee or a trustee for the company, the nominal amount of the debentures and the amount at which they are stated in the books of the company shall be stated. [47] ( l ) A statement of investments (whether shown under "Investment" or under "Current Assets" as stock-in-trade) separately classifying trade investments and other investments should be annexed to the balance sheet, showing the names of the bodies corporate (indicating separately the names of the bodies corporate under the same management) in whose shares or debentures, investments have been made (including all investments whether existing or not, made subsequent to the date as at which the previous balance sheet was made out) and the nature and extent of the investment ; so made in each such body corporate; provided that in the case of an investment company that is to say, a company whose principal business is the acquisition of shares, stock, debentures or other securities, it shall be sufficient if the statement shows only the investments existing on the date as at which the balance sheet has been made out. In regard to the investments in the capital of partnership firms, the names of the firms (With the names of all their partners total capital and the shares of each partner) shall be given in the statement.] ( m ) If, in the opinion of the Board, any of the current assets, loans and advances have not a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, the fact that the Board is of that opinion shall be stated. ( n ) Except in the case of the first balance sheet laid before the company after the commencement of the Act,the corresponding amounts for the immediately preceding financial year for all items shown in the balance sheet shall be also given in the balance sheet.The requirement in this behalf shall, in the case of companies preparing quarterly or half-yearly accounts, etc., relate to the balance sheet for the corresponding date in the previous year. ( o ) The amounts to be shown under Sundry Debtors shall include the amounts due in respect of goods sold or services rendered or in respect of other contractual obligations but shall not include the amounts which are in the nature of loans or advances. [48] [( p ) Current accounts with directors, [49] [* * *] and Manager, whether they are in credit or debit, shall be shown separately.] [50] [( q ) A small scale industrial undertaking has the same meaning as assigned to it under clause (j ) of section 3 of the Industries (Development and Regulation) Act, 1951.] [51] [ B. VERTICAL FORM Name of the Company .......................... Balance Sheet as at .......................... Schedule No. Figures as at the end of current financial year Figures as at the end of previous financial year I. Sources of funds: (1) Shareholder's funds ( a ) Capital ( b ) Reserves and Surplus (2) Loan funds ( a ) Secured loans ( b ) Unsecured loans TOTAL: II. Application of funds: (1) Fixed assets ( a ) Gross block ( b ) Less depreciation ( c ) Net block ( d ) Capital work-in-progress (2) Investments (3) Current assets, loans, and advances: ( a ) Inventories ( b ) Sundry debtors ( c ) Cash and bank balances ( d ) Other current assets ( e ) Loans and advances Less: Current liabilities and provisions: ( a ) Liabilities ( b ) Provisions Net current assets (4) ( a ) Miscellaneous expenditure to the extent not written off or adjusted ( b ) Profit and Loss account TOTAL: Notes. 1. Details under each of the above items shall be given in separate Schedules. The Schedules shall incorporate all the information required to be given under A Horizontal Form read with notes containing general instructions for preparation of balance sheet. 2. The Schedules, referred to above, accounting policies and explanatory notes that may be attached shall form an integral part of the balance sheet. [52] [3. The figures in the balance sheet may be rounded off as under: Where the turnover of the company in any financial year is: Round off permissible: ( i ) less than one hundred crore rupees to the nearest hundreds or thousands, or decimals thereof. ( ii ) one hundred crore rupees or more but less than five hundred crore rupees to the nearest hundreds, thousands, lakhs or millions, or decimals thereof. ( iii ) five hundred crore rupees or more to the nearest hundreds, thousands, lakhs, millions, or crores, or decimals thereof.] 4. A foot-note to the balance sheet may be added to show separately contingent liabilities. PART II Requirements as to Profit and Loss Account 1 . The provisions of this Part shall apply to the income and expenditure account referred to in sub-section (2) of section 210 of the Act, in like manner as they apply to a profit and loss account, but subject to the modification of references as specified in that sub-section. 2 . The profit and loss account ( a ) shall be so made out as clearly to disclose the result of the working of the company during the period covered by the account ; and ( b ) shall disclose every material feature, including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature. 3 . The profit and loss account shall set out the various items relating to the income and expenditure of the company arranged under the most convenient heads; and in particular, shall disclose the following information in respect of the period covered by the account: ( i ) [53] [( a ) The turnover, that is, the aggregate amount for which sales are effected by the company, giving the amount of sales in respect of each class of goods dealt with by the company, and indicating the quantities of such sales for each class separately.] [54] [( b ) Commission paid to sole selling agents within the meaning of section 294 of the Act. ( c ) Commission paid to other selling agents. ( d ) Brokerage and discount on sales, other than the usual trade discount.] [55] [( ii ) ( a ) In the case of manufacturing companies, (1) The value of the raw materials consumed, giving item-wise break-up and indicating the quantities thereof. In this break- up, as far as possible, all important basic raw materials shall be shown as separate items. The intermediates or components procured from other manufacturers may, if their list is too large to be included in the break-up, be grouped under suitable headings without mentioning the quantities, provided all those items which in value individually account for 10 per-cent or more of the total value of the raw material consumed shall be shown as separate and distinct items with quantities thereof in the break-up. (2) The opening and closing stocks of goods produced, giving break-up in respect of each class of goods and indicating the quantities thereof. ( b ) In the case of trading companies, the purchases made and the opening and closing stocks, giving break-up in respect of each class of goods traded in by the company and indicating the quantities thereof. ( c ) In the case of companies rendering or supplying services, the gross income derived from services rendered or supplied. ( d ) In the case of a company, which falls under more than one of the categories mentioned in ( a ), ( b ) and ( c ) above, it shall be sufficient compliance with the requirements herein if the total amounts are shown in respect of the opening and closing stocks, purchases, sales and consumption of raw material with value and quantitative break-up and the gross income from services rendered is shown. ( e ) In the case of other companies, the gross income derived under different heads. Note 1. The quantities of raw materials purchases, stocks, and the turnover shall be expressed in quantitative denominations in which these are normally purchased or sold in the market. Note 2. For the purpose of items ( ii )( a ), ( ii )( b ) and ( ii )( d ), the items for which the company is holding separate industrial licences, shall be treated as separate classes of goods, but where a company has more than one industrial licence for production of the same item at different places or for expansion of the licensed capacity, the item covered by all such licences shall be treated as one class. In the case of trading companies, the imported items shall be classified in accordance with the classification adopted by the Chief Controller of Imports and Exports in granting the import licences. Note 3. In giving the break-up of purchases, stocks and turnover, items like spare parts and accessories, the list of which is too large to be included in the break-up, may be grouped under suitable headings without quantities, provided all those items, which in value individually account for 10 per-cent or more of the total value of the purchases, stocks, or turnover, as the case may be, are shown as separate and distinct items with quantities thereof in the break-up.] ( iii ) In the case of all concerns having works-in-progress, the amounts for which [56] [such works have been completed] at the commencement and at the end of the accounting period. ( iv ) The amount provided for depreciation, renewals or diminution in value of fixed assets. If such provision is not made by means of a depreciation charge, the method adopted for making such provision. If no provision is made for depreciation, the fact that no provision has been made shall be stated [57] [and the quantum of arrears of depreciation computed in accordance with section 205(2) of the Act shall be disclosed by way of a note.] ( v ) The amount of interest on the company's debentures and other fixed loans, that is to say, loans for fixed periods, stating separately the amount of interest, if any, [58] [paid or payable] to the managing director [59] [* * *] and the manager, if any. ( vi ) The amount of charge for Indian income-tax and other Indian taxation on profits, including, where practicable, with Indian income-tax any taxation imposed elsewhere to the extent of the relief, if any, from Indian income-tax and distinguishing, where practicable, between income-tax and other taxation. ( vii ) The [60] [amounts reserved for ] ( a ) repayment of share capital; and ( b ) repayment of loans. ( viii ) ( a ) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserves, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as at which the balance-sheet is made up. ( b ) The aggregate, if material, of any amounts withdrawn from such reserves. ( ix ) ( a ) The aggregate, if material, of the amounts to set aside to provisions made for meeting specific liabilities, contingencies or commitments. ( b ) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required. ( x ) Expenditure incurred on each of the following items, separately for each item: ( a ) Consumption of stores and spare parts. ( b ) Power and fuel. ( c ) Rent. ( d ) Repairs to buildings. ( e ) Repairs to machinery. ( f ) (1) Salaries, wages and bonus. (2) Contribution to provident and other funds. (3) Workmen and staff welfare expenses [61] [to the extent not adjusted from any previous provision or reserve. Note [62] [1]. Information in respect of this item should also be given in the balance sheet under the relevant provision or reserve account.] Note 2. [63] [* * *] ( g ) Insurance. ( h ) Rates and taxes, excluding taxes on income. ( i ) Miscellaneous expenses: [64] [ Provided that any item under which the expenses exceed one per cent of the total revenue of the company or Rs. 5,000 whichever is higher shall be shown as a separate and distinct item against an appropriate account head in the Profit and Loss Account and shall not be combined with any other item to be shown Under 'Miscellaneous expenses'.] ( xi ) ( a ) The amount of income from investments, distinguishing between trade investments and other investments. ( b ) Other income by way of interest, specifying the nature of the income. ( c ) The amount of income-tax deducted if the gross income is stated under sub-paragraphs ( a ) and ( b ) above. ( xii ) ( a ) Profits or losses on investments [65] [showing distinctly the extent of the profits or losses earned or incurred on account of membership of a partnership firm] [66] [to the extent not adjusted from any previous provision or reserve. Note . Information in respect of this item should also be given in the balance sheet under the relevant provision or reserve account.] ( b ) Profits or losses in respect of transactions of a kind, not usually undertaken by the company or undertaken in circumstances of an exceptional or non-recurring nature, if material in amount. ( c ) Miscellaneous income. ( xiii ) ( a ) Dividends from subsidiary companies. ( b ) Provisions for losses of subsidiary companies. ( xiv ) The aggregate amount of the dividends paid, and proposed, and stating whether such amounts are subject to deduction of income-tax or not. ( xv ) Amount, if material, by which any items shown in the profit and loss account are affected by any change in the basis of accounting. [67] [ 4. The profit and loss account shall also contain or give by way of a note detailed information, showing separately the following payments provided or made during the financial year to the directors (including managing directors), [68] [* * *] or manager, if any, by the company, the subsidiaries of the company and any other person: ( i ) managerial remuneration under section 198 of the Act paid or payable during the financial year to the directors (including managing directors), [69] [* * *] manager, if any; ( ii ) [70] [* * *]; ( iii ) [71] [* * *]; ( iv ) [72] [* * *]; ( v ) [73] [* * *]; [74] [( vi ) other allowances and commission including guarantee commission (details to be given)]; ( vii ) any other perquisites or benefits in cash or in kind (stating approximate money value where practicable); ( viii ) pensions, etc., ( a ) pensions, ( b ) gratuities, ( c ) payments from provident funds, in excess of own subscriptions and interest thereon, ( d ) compensation for loss of office, ( e ) consideration in connection with retirement from office.] 4A. The profit and loss account shall contain or give by way of a note a statement showing the computation of net profits in accordance with section 349 of the Act with relevant details of the calculation of the commissions payable by way of percentage of such profits to the directors (including managing directors), [75] [* * *] or manager (if any). 4B. The profit and loss account shall further contain or give by way of a note detailed information in regard to amounts paid to the auditor, [76] [whether as fees, expenses or otherwise for services rendered ] ( a ) as auditor; [77] [* * *] [78] [( b ) as adviser, or in any other capacity, in respect of ( i ) taxation matters; ( ii ) company law matters; ( iii ) management services; and ( c ) in any other manner].] [79] [ 4C. In the case of manufacturing companies, the profit and loss account shall also contain, by way of a note in respect of each class of goods manufactured, detailed quantitative information in regard to the following, namely: ( a ) the licensed capacity (where licence is in force); ( b ) the installed capacity; and ( c ) the actual production. Note 1 . The licensed capacity and installed capacity of the company as on the last date of the year to which the profit and loss account relates, shall be mentioned against items ( a ) and ( b ) above, respectively. Note 2 . Against item ( c ), the actual production in respect of the finished products meant for sale shall be mentioned. In cases where semi-processed products are also sold by the company, separate details thereof shall be given. Note 3 . For the purposes of this paragraph, the items for which the company is holding separate industrial licences shall be treated as separate classes of goods but where a company has more than one industrial licence for production of the same item at different places or for expansion of the licensed capacity, the item covered by all such licences shall be treated as one class. 4D . The profit and loss account shall also contain by way of a note the following information, namely: ( a ) value of imports calculated on C.I.F. basis by the company during the financial year in respect of: ( i ) raw materials; ( ii ) components and spare parts; ( iii ) capital goods; ( b ) expenditure in foreign currency during the financial year on account of royalty, know-how, professional, consultation fees, interest, and other matters; ( c ) value of all imported raw materials, spare parts and components consumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption; ( d ) the amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the number of non-resident share-holders, the number of shares held by them on which the dividends were due and the year to which the dividends related; ( e ) earnings in foreign exchange classified under the following heads, namely: ( i ) export of goods calculated on F.O.B. basis; ( ii ) royalty, know-how, professional and consultation fees; ( iii ) interest and dividend; ( iv ) other income, indicating the nature thereof.] 5. The Central Government may direct that a company shall not be obliged to show the amount set aside to provisions other than those relating to depreciation, renewal or diminution in value of assets, if the Central Government is satisfied that the information should not be disclosed in the public interest and would prejudice the company, but subject to the condition that in any heading stating an amount arrived at after taking into account the amount set aside as such, the provision shall be so framed or marked as to indicate that fact. 6. (1) Except in the case of the first profit and loss account laid before the company after the commencement of the Act, the corresponding amounts for the immediately preceding financial year for all items shown in the profit and loss account shall also be given in the profit and loss account. (2) The requirement in sub-clause (1) shall, in the case of companies preparing quarterly or half-yearly accounts, relate to the profit and loss account for the period which entered on the corresponding date of the previous year. PART III Interpretation 7. (1) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires, ( a ) the expression "provision" shall, subject to sub-clause (2) of this clause, mean any amount written off or retained by way of providing for depreciation renewals or diminution in value of assets, or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy; ( b ) the expression "reserve" shall not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability; ( c ) the expression "capital reserve" shall not include any amount regarded as free for distribution through the profit and loss account; and the expression "revenue reserve" shall mean any reserve other than a capital reserve; and in this sub-clause the expression "liability" shall include all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities. (2) Where ( a ) any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, not being an amount written off in relation to fixed assets before the commencement of this Act; or ( b ) any amount retained by way of providing for any known liability; is in excess of the amount which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of this Schedule as a reserve and not as a provision. 8. For the purposes aforesaid, the expression "quoted investment" means an investment as respects which there has been granted a quotation or permission to deal on a recognised stock exchange, and the expression "unquoted investment" shall be construed accordingly. [80] [Part IV Balance Sheet Abstract and Company's General Business Profile I. Registration Details Registration No. ...... State Code .. (Refer Code List) Balance Sheet Date .. .. .. Date Month Year II. Capital raised during the year (Amount in Rs. Thousands) Public Issue Rights Issue ......... ......... Bonus Issue Private Placement ......... ......... III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) Total Liabilities Total Assets ......... ......... Source of Funds Paid-up Capital Reserves Surplus ......... ......... Secured Loans Unsecured Loans ......... ......... Application of Funds Net Fixed Assets Investments ......... ......... Net Current Assets Misc. Expenditure ......... ......... Accumulated Losses ......... IV. Performance of Company (Amount in Rs. Thousands) Turnover Total Expenditure ......... ......... + Profit/Loss Before Tax + Profit/Loss After Tax .. ......... .. ......... (Please tick appropriate box + for profit, for loss) Earning Per Share in Rs. Divided rate % ......... .. V. Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) .......... Product Description .................. .................. .................. Item Code No. (ITC Code) .......... Product Description .................. .................. .................. Item Code No. (ITC Code) .......... Product Description .................... .................... .................... * Note : for ITC Code of Products please refer to the publication Indian Trade Classification based on harmonized commodity description and coding system by Ministry of Commerce, Directorate General of Commercial Intelligence Statistics, Calcutta-700 001. Annexure I Code List 1: State Codes State Code State Name State Code State Name 01 Andhra Pradesh 02 Assam 03 Bihar 04 Gujarat 05 Haryana 06 Himachal Pradesh 07 Jammu Kashmir 08 Karnataka 09 Kerala 10 Madhya Pradesh 11 Maharashtra 12 Manipur 13 Meghalaya 14 Nagaland 15 Orissa 16 Punjab 17 Rajasthan 18 Tamil Nadu 20 Uttar Pradesh 21 West Bengal 22 Sikkim 23 Arunachal Pradesh 24 Goa 52 Andaman Islands 53 Chandigarh 54 Dadra Islands 55 Delhi 56 Daman Diu 57 Lakshadweep 58 Mizoram 59 Pondicherry] [ Schedules VII and VIII, relating to managing agents, secretaries and treasurers are not reproduced here as they have become redundant after the abolition of the system by Act 17 of 1969 w.e.f. 3-4-1970 ] [82] Substituted vide Notification No. S.O. 653(E), dated 30-03-2011 , before it was read as:- 2. This notification shall come into force from the date of publication in the official gazette.