Compiled by Kunal,Aman priyanka and Alok

COMPANIES ACT, 1956 NOTIFICATION Company Law : Section 642 of the Companies Act, 1956 - Schedules, forms and rules - Power of Central Government to make rules - Amendment in Notification No. S.O. 447(E), dated 28-2-2011 "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".

The disclosure requirements specified in schedule VI are in addition to the disclosure requirements of Companies Act as well as the Accounting Standards. REVISED SCHEDULE VI has been framed as per existing non-converged INDIAN ACCOUNTING STANDARDS under the Companies Rules,2006.It is not related to convergence to IFRS .
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Applicability to Consolidated Financial Statements: Revised Schedule VI has been prescribed in the context of standalone financial statements prepared under the Act, it would apply equally to consolidated financial statements. As per AS 21 Consolidated Financial Statements, revealed that Consolidated Financials statements should be presented, to the extent possible, in the same format as adopted for the parents stand-alone financial statements.

STATEMENT OF PROFIT AND LOSS Profit and Loss statement for the year ended 31st March, _______ Figures as at the end Figures as at the end Particulars Note No of current reporting of previous period reporting period I. Revenue from operations II. Other Income III. Total Revenue (I +II) IV. Expenses: Cost of materials consumed Purchase of Stock-in-Trade Changes in inventories of finished goods, work-in-progress and Stockin-Trade Employee benefit expense Financial costs Depreciation and amortization expense Other expenses Total Expenses V. Profit before exceptional and extraordinary items and tax (III - IV)

VI. Exceptional Items

VII. Profit before extraordinary items and tax (V - VI) VIII. Extraordinary Items IX. Profit before tax (VII - VIII)
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X. Tax expense: (1) Current tax (2) Deferred tax

XI. Profit(Loss) from the period from continuing operations (VII-VIII)

XII. Profit/(Loss) from discontinuing operations

XIII. Tax expense of discounting operations

XIV. Profit/(Loss) from Discontinuing operations (XII - XIII)

XV. Profit/(Loss) for the period (XI + XIV)

XVI. Earning per equity share: (1) Basic (2) Diluted

TATA Consulting Engineers Limited

Statement of Profit & Loss Statement for the year ended 31st March, 2011 Rs. in Lakh New Schedule VI Year Ended Particulars I. II. III. Revenue from Operations Other Income Total Revenue (I + II) Administrative & Selling Expenses Employee Benefit Expenses Establishment Expenses Other Expenses 22,039.38 5,278.59 3,296.48 19,631.19 7,791.58 3,296.48 31st March, 2011 41,604.48 509.32 42,113.80 Old Schedule VI Year Ended 31st March, 2011 41,602.02 511.78 42,113.80

Finance Costs
Depreciation and Amortization Expense

585.60
2,142.23

480.80
2,142.23

Total Expenses V. Profit before Exceptional and Extraordinary Items and Tax (III - IV)

33,342.28 8,771.52

33,342.28 8,771.52

Additional disclosures for P/L account

In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from sale of products; sale of services; other operating revenues; Less: Excise duty.
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. Finance costs shall be classified as: Interest expense; Other borrowing costs; Applicable net gain/loss on foreign currency transactions and translation:

 Other income to be classified as Interest Income (in case of a company other than a finance company); Dividend Income; Net gain/loss on sale of investments Other non-operating income (net of expenses directly attributable to such income).
Additional information in case of all companies A Company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items: (i) in case of all companies Employee Benefits Expense [showing separately] (i), (ii) contribution to provident Funds 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;
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 (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;

Further additional information in case of all companies Expenditure incurred on each of the following items, separately for each item: Consumption of stores and spare parts. Repairs to machinery. Power and fuel. Insurance Rent. Rates and taxes, excluding, taxes on income Repairs to buildings. Miscellaneous expenses, Subsidiary companies: Dividends from subsidiary companies. Provisions for losses of subsidiary companies.

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Profit and loss account also to show by way of notes Value of imports calculated on C.I.F basis by company during the financial year in respect of Raw materials; Components and spare parts; Capital goods; Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters; 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; This is the same as in existing Schedule VI It appears that the significance of this disclosure is to give comparison between indigenous and imported raw materials, spare parts and components 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; Earnings in foreign exchange classified under the following heads, namely: Export of goods calculated on F.O.B. basis; Royalty, know-how ,professional and consultation fees .Interest and dividend; Other income, indicating the nature thereof
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Particulars I. EQUITY AND LIABILITIES (1) Shareholder's Funds (a) Share Capital (b) Reserves and Surplus

Note No

Figures as at the end Figures as at the end of of current reporting the previous reporting period period

(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
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II. Assets
(1) Non-current assets (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 13

Balance Sheet as at 31st March, 2011 Rs. in Lakh Note No. As at 31st March, 2011

Particulars I. (1) EQUITY AND LIABILITIES Shareholder's Funds (a) Share Capital (b) Reserves and Surplus

1,000.00 18,011.26

(3)

Non-Current Liabilities (a) Long-Term Borrowings (c) Other Long Term Liabilities (d) Long-Term Provisions Current Liabilities (a) Short-Term Borrowings (b) Trade Payables (c) Other Current Liabilities (d) Short-Term Provisions TOTAL

3 4 5

7.91 1,851.89

(4)

6 7 8

2,798.33 4,121.67 3,642.49 2,331.70 33,765.25

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Balance Sheet as at 31st March, 2011 II. (1) ASSETS Non-Current Assets (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) Trade Receivables (c) Unbilled revenue (d) Cash and Cash Equivalents (e) Short-Term Loans and Advances (f) Other Current Assets TOTAL

9 10

7,499.05 885.22 208.39 5.95 35.82 426.86 1,376.09 -

11 12 13

14 16 17 18 19

9,319.17 9,896.12 955.65 3,156.93 33,765.25 -

See accompanying notes to the financial statements

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Balance Sheet as at 31st March, 2011

Schedule

As at 31.03.2011

Sources of Funds : Shareholder's Funds : (a) Share Capital (b) Reserves and Surplus

1 2

1,000.00 18,011.25 19,011.25

Loan Funds : (a) Secured Loans (b) Unsecured Loans

3 2,298.33 506.95 2,805.28

Total Funds Employed

21,816.53

Application of Funds :
Fixed Assets (a) Gross Block (b) Less:Depreciation / Amortisation (c) Net Block (d) Capital Work-in-progress 4 15,883.70 7,499.41 8,384.29 405.63 8,789.92 Investments Deferred Tax Assets (net) ( See Note 20 ) 5 35.82 426.86 16

Balance Sheet as at 31st March, 2011

As at Schedule 31.03.2011

Current Assets, Loans and Advances

(a) Work done not billed (Gross Amount due from Customers for Contract work) (b) Sundry Debtors (c) Cash and Bank Balances (d) Loans and Advances 6 7 8 9,319.16 955.64 4,341.72 24,512.64 9,896.12

Less: Current Liabilities and Provisions (a) Liabilities (b) Provisions

9 7,765.12 4,183.59

11,948.71
Net Current Assets 12,563.93

Total Assets

21,816.53 17

Sr. Particulars No . 1 Rounding off of Figures appearing in financial statement

Old Schedule VI

Revised Schedule VI

Net Working Capital

Fixed Assets

Turnover of less than Rs. 100 Crs - R/off to Turnover of less than Rs. 100 Crs the nearest Hundreds, thousands or R/off to the nearest Hundreds, decimal thereof thousands, lakhs or millions or decimal thereof Turnover of Rs. 100 Crs or more but less than Rs. 500 Crs - R/off to the nearest Turnover of Rs. 100 Crs or more Hundreds, thousands, lakhs or millions or R/off to the nearest lakhs, decimal thereof millions or crores, or decimal Turnover of Rs. 500 Crs or more - R/off to thereof the nearest Hundreds, thousands, lakhs, millions or crores, or decimal thereof Current assets & Liabilities are shown Assets & Liabilities are to be together under application of funds. The bifurcated in to current & Nonnet working capital appears on balance current and to be shown sheet. separately. Hence, net working capital will not be appearing in Balance sheet. There was no bifurcation required in to Fixed assets to be shown under tangible & intangible assets. non-current assets and it has to be bifurcated in to Tangible18 &

Sr. Particulars No . 4 Borrowings

Old Schedule VI

Revised Schedule VI

Short term & long term borrowings are grouped together under the head Loan funds sub-head Secured / Unsecured

Long term borrowings to be shown under non-current liabilities and short term borrowings to be shown under current liabilities with separate disclosure of secured / unsecured loans. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified

Finance lease obligation

Finance lease obligations are Finance lease obligations are to be included in current grouped under the head Current as well liabilities as non-current liabilities.

Investments

Both current & non-current Current and non-current investments are investments to be disclosed to be disclosed separately under current under the head investments assets & non-current assets respectively.

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No. 7

Loans & Advances

Deferred Tax Assets / Liabilities

Cash & Bank Balances

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Profit & Loss (Dr Balance)

Loans & Advance are disclosed Loans & Advances to be along with current assets broken up in long term & short term and to be disclosed under non-current & current assets respectively. Deferred Tax assets / liabilities Deferred Tax assets / to be disclosed separately liabilities to be disclosed under non-current assets / liabilities as the case may be. Bank balance to be bifurcated Bank balances in relation to in scheduled banks & others earmarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately. P&L debit balance to be shown Debit balance of Profit and under the head Miscellaneous Loss Account to be shown as expenditure & losses. negative figure under the head Surplus. Therefore, reserve & surplus balance 20 can be negative.

Sr. No. 11

Particulars Sundry Creditors

Old Schedule VI Creditors to be broken up in to micro & small suppliers and other creditors. No specific mention for separate disclosure of Current maturities of long term debt No specific mention for separate disclosure of Current maturities of finance lease obligation any item under which expense exceeds one per cent of the total revenue of the company or Rs. 5,000 whichever is higher; shall be disclosed separately

Revised Schedule VI It is named as Trade payables. Current maturities of long term debt to be disclosed under other current liabilities. Current maturities of finance lease obligation to be disclosed. any item of income / expense which exceeds one per cent of the revenue from operations or Rs. 1,00,000, whichever is higher; to be disclosed separately
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12

Other current liabilities

13

Separate line item Disclosure criteria

Sr. No. 14

Particulars Finance Cost

Old Schedule VI There was no specific provision of finance cost.

Revised Schedule VI Finance cost shall be classified as interest expense, other borrowing costs & Gain / Loss on foreign currency transaction & translaton.

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Current Assets :
Definition in Schedule VI: An asset shall be classified as current when it satisfies any of the following criteria: it is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle; it is held primarily for the purpose of being traded; it is expected to be realized within twelve months after the reporting date; or 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.

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Current Assets : Meaning of cash equivalent: Short term, highly liquid investments that are readily convertible into cash, with insignificant risk of changes in value [IAS 7] Meaning of operating cycle Defined in Schedule VI: 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. IAS 1: The operating cycle of an entity is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. When the entitys normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

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Current liabilities
If it satisfies any of the following criteria it is expected to be settled in the companys normal operating cycle; it is held primarily for the purpose of being traded; it is due to be settled within twelve months after the reporting date; or the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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Details of Long term borrowings Long-term borrowings shall be classified as: Bonds/debentures. Term loans from banks. from other parties. Deferred payment liabilities. Deposits. Loans and advances from related parties. Long term maturities of finance lease obligations Other loans and advances (specify nature). Borrowings shall further be sub-classified as secured and unsecured. Nature of security (i.e. Mortgage, Pledge & Hypothecation) shall be specified separately in each case. Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed.
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Other long term liabilities and Provisions

Other Long Term Liabilities Other Long term Liabilities shall be classified as: Trade payables Others Long-term provisions: The amounts shall be classified as: Provision for employee benefits. Others (specify nature).

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Short-term borrowings Short-term borrowings shall be classified as: Loans repayable on demand (a) from banks (b) from other parties. Loans and advances from related parties. Deposits. Other loans and advances (specify nature). Borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case. Where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed.

Period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case.
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Other current liabilities Current maturities of long-term debt; Current maturities of finance lease obligations; Interest accrued but not due on borrowings; Interest accrued and due on borrowings; Income received in advance; Unpaid dividends Application money received for allotment of securities and due for refund and interest accrued thereon: Note the distinction between application money going as a part of shareholders funds, and that coming as liability What is refundable is a liability, what is due for allotment is quasi capital Also see another slide for details of share application money Unpaid matured deposits and interest accrued thereon Unpaid matured debentures and interest accrued thereon Other payables (specify nature)

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Fixed Assets

There was no bifurcation required in to tangible & intangible assets.

Fixed assets to be shown under non-current assets and it has to be bifurcated in to Tangible & intangible assets.

Tangible Assets : Classification shall be given as: Land. Buildings. Plant and Equipment. Furniture and Fixtures. Vehicles. Office equipment. Others (specify nature). Assets under lease shall be separately specified under each class of asset. 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. 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.
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Intangible Assets : Assets to be classified as Goodwill Brands /trademarks. Computer software. Mastheads and publishing titles. Mining rights. Copyrights, and patents and other intellectual property rights, services and operating rights. Recipes, formulae, models, designs and prototypes. Licenses and franchise. Others (specify nature). 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. 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.
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Non-current Investments :
Non-current investments shall be classified as trade investments and other investments and further classified as: Investment property; Investments in Equity Instruments; Investments in preference shares Investments in Government or trust securities; Investments in debentures or bonds; Investments in Mutual Funds; Investments in partnership firms Other non-current investments (specify nature)

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More on non-current Investments : Under each classification, details shall be given of names of the bodies corporate 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 indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities

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Long-term loans and Advances : Long-term loans and advances shall be classified as: Capital Advances; Security Deposits; Loans and advances to related parties (giving details thereof); Other loans and advances (specify nature). The above shall also be separately sub-classified as: Secured, considered good; Unsecured, considered good; Doubtful Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. 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.

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Other non-current assets :

Other non-current assets shall be classified as: Long Term Trade Receivables (including trade receivables on deferred credit terms); Others (specify nature) Long term Trade Receivables, shall be sub-classified as: Secured, considered good; Unsecured considered good; Doubtful Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. 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.

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Current Investments : Current investments shall be classified as: Investments in Equity Instruments; Investments in preference shares Investments in Government or trust securities; Investments in debentures or bonds; Investments in Mutual Funds; Investments in partnership firms Other non-current investments (specify nature) Investment in property is conspicuously absent as if property investments cannot be current investments

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More on current investments Under each classification, details shall be given of names of the bodies corporate 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 indicating separately whether such bodies are (i) subsidiaries, (ii) associates, (iii) joint ventures, or (iv) controlled special purpose entities 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. The following shall also be disclosed Basis of valuation of individual investments This clause is difficult to understand it cannot be taken to mean that the basis of valuation of each investment shall be disclosed separately Note that there are variety of approaches to valuation of investments under AS 30 Aggregate amount of quoted investments and market value thereof; Aggregate amount of unquoted investments; Aggregate provision for diminution in value of investments
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Trade receivables Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated. Trade receivables shall be sub-classified as: Secured, considered good; Unsecured considered good; Doubtful. Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. 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.

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Cash and cash equivalents : Cash and cash equivalents shall be classified as: Balances with banks; Cheques, drafts on hand; Cash on hand; Others (specify nature). Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated. Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately. Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. Bank deposits with more than 12 months maturity shall be disclosed separately.

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Short-term loans and advances Short-term loans and advances shall be classified as: Loans and advances to related parties (giving details thereof); Others (specify nature). The above shall also be sub-classified as: Secured, considered good; Unsecured, considered good; Doubtful. Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. 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.
Other current assets This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories.
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Contingent liabilities and commitments

Contingent liabilities and commitments (to the extent not provided for) Contingent liabilities shall be classified as: Claims against the company not acknowledged as debt; Guarantees; Other money for which the company is contingently liable Commitments shall be classified as: Estimated amount of contracts remaining to be executed on capital account and not provided for; Uncalled liability on shares and other investments partly paid Other commitments (specify nature).

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Other disclosures Capital Advances should not be included in CWIP it should be shown under the head long term loans and Advances. The Revised Schedule VI is pretty clear that additional line items can be added on the face or in the notes. Under revised Schedule VI other commitments also needs to be disclosed. Disclosure relating to MR and Computation under Sec 309(5) need not be shown. In the case of any inconsistencies between the New Schedule VI and AS the latter will prevail. Companies rendering or supplying services has to disclose Gross income derived from services rendered under broad heads.
Particulars Services rendered Service A Service B Others Total ------------42

Amount

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