September 18, 2019

Revised Schedule VI is applicable on all companies except insurance or banking company, or any company engaged in the generation or supply of electricity. The highlights of the changes in the revised Schedule VI in comparison to the earlier Schedule VI are discussed below.

  1. The latest changes to Schedule VI permit only the vertical format for preparation of Balance Sheet, Profit & Loss, and Cash Flow Statements.
  2. Classification: These changes pertain to the categorization of the Assets and Liabilities in the Schedule VI.

Revised Schedule VI Classification

Earlier Schedule VI Classification

Asset Classification under two categories, Current Assets and Non-current Assets No such classification existed previously
Fixed Assets are classified into Tangible and Intangible assets No such classification existed previously
New category of Fixed assets, ‘Intangible Assets Under Development’ added No such category existed previously
Liabilities are classified under ‘Current’ and ‘Non-current’. Constituents of Current and Non-current liabilities modified There was no classification as Non-Current Liabilities. Earlier the liabilities were classified into Share Holders’ Funds, Loan Funds, Deferred Tax Liability and Current Liability.

3.  Representation: These changes pertain to how facts are represented in the financial report.

Revised Schedule VI Representation

Earlier Schedule VI Representation

Debit balance in the Profit & Loss Account is to be adjusted with values shown under the “Surplus” head.In case the value under “Surplus” is still negative, this needs to be adjusted with the balance against “Reserves and Surplus”.

In case the value under “Surplus” is still negative after the above adjustments, it needs to be represented as a negative value under “Liabilities”.

Debit balance in the Profit & Loss account shall be shown under “ASSETS” side after deduction from uncommitted reserves (if any)
“Share Application Money Pending Allotment” need to be shown separately under share holder’s funds and not under “Reserves and surplus” “Share application money pending allotment” was included in the “Reserves and surplus”.
Finance Lease obligations are to be grouped under the head Non-Current Liabilities. Finance Lease obligations are included in Current Liabilities.
Current & non-current investments are to be disclosed separately under current assets & non-current assets respectively. Investments both current & and non-current investments to be disclosed under the head investments
Deferred Tax asset/liabilities to be disclosed under non-current assets/liabilities as the case may be. Deferred tax assets/liabilities to be disclosed separately.
Any item of income/ expense which exceeds “one percent” of  the revenue from operations or “Rs 1 lakh” whichever is higher to be disclosed separately Any item under which expense exceed one percent of the total revenue of the company or “Rs 5 thousand” whichever is higher shall be disclosed separately.

4.  Nomenclature: Schedule VI has also been modified to include changes in nomenclature and inclusion of additional information.

Headings in the Balance Sheet The headings in the Balance Sheet are now “Equity and Liabilities” and “Assets”. This has replaced “Sources of Funds” and “Application of funds”.
Share capital Company would need to show in sub-head a shares held more than 5% in company along with number of shares
Cash and Cash Equivalents Cash and Cash Equivalents” has replaced the element “Cash and Bank Balance”.Cash and Cash Equivalents is a wider term that includes cash, bank balance, money market funds, other short term deposits etc.
Trade receivables” & “Trade payables Trade receivables” and “Trade payables” is used in the place of “Sundry debtors” and “Sundry Creditors” respectively

5.  Rounding Off Requirement



Less than one hundred crore rupees To the nearest hundreds , thousands,lakhs or millions or decimals thereof
One hundred crore rupees or more To the nearest lakh, millions or crores or decimals thereof
Note: Once a unit of measurement is used, it should be used uniformly in subsequent financial statements.

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