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SCHEDULE VI TO THE COMPANIES ACT, 1956
(See Section 211)

PART I

Form of Balance Sheet

  1. Horizontal Form

Balance Sheet of ..................................... (name of the company) ..................................................................

As at ........................................................(date as at which it is made out)

Figures
for the P.Y.
(Rs.)

L I A B I L I T I E S

Figures
for the C.Y.
(Rs.)

Figures for the P.Y.
(Rs.)

A S S E T S

Figures
for the C.Y.
(Rs.)

 

SHARE CAPITAL Authorised

..... Shares of Rs....... each

Issued

..... Shares of Rs....... each

Subscribed

..... Shares of Rs....... each

Rs. .... per share called up

Less: Unpaid calls

Add: Forfeited shares

RESERVES AND SURPLUS

1. Capital Reserves

2. Capital Redemption Reserve

3. Share Premium Account

4. Other Reserves

Less: Debit balance in profit and loss account, if any

5. Balance in the profit and loss accounts after providing for proposed allocation namely Dividend Bonus or Reserves

6. Proposed additions to Reserves

7. Sinking Funds

 

SECURED LOANS

1. Debentures

2. Loans and Advances from Banks

3. Loans and Advances from Subsidiaries

4. Other Loans and Advances

 

UNSECURED LOANS

1. Fixed Deposits

2. Loans and Advances from

Subsidiaries

3. Short-term Loans and Advances:

a) from Banks

b) from others

4. Other Loans and Advances

a) from Banks

b) from others

CURRENT LIABILITIES & PROVISIONS

A. Current Liabilities

1. Acceptances

2. Sundry Creditors

(a) Total outstanding dues of micro enterprises and small enterprises; and

(b) Total outstanding dues of creditors other than micro enterprises and small enterprises

3. Subsidiary companies

4. Advance payments and unexpired
discounts

5. Investor Education and Protection Fund:

(a) Unpaid Dividend
(b) Unpaid Application Money 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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED ASSETS

1. Goodwill

2. Land

3. Buildings

4. Leaseholds

5. Railway Sidings

6. Plant and Machinery

7. Furniture and Fittings

8. Development of Property

9. Patents, trademarks and designs

10. Livestock

11. Vehicles etc.

INVESTMENTS

1. Investments in Govt. or

Trust Securities

2. Investments in shares,

debentures or bonds

3. Immovable properties

4. Investments in the capital

of partnership firms

5. Balance of unutilised

monies raised by Issue

CURRENT ASSETS, LOANS &
ADVANCES

A. Current Assets

1. Interest accrued on investments

2. Stores and spare parts

3. Loose tools

4. Stock-in-trade

5. Works-in-progress

6. Sundry debtors :

a) Debts outstanding for a

period exceeding 6 months

b) Other debts

Less: Provision

7. a) Cash balance on hand

b) Bank balances :

i) With Scheduled Banks

ii) With Others

B. Loans and Advances

8. Advances and Loans

a) To subsidiaries

b) To partnership firms in which the co./its subsidiary 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.

11.Balances with Customs, Port Trust, etc. (where payable on demand).

MISCELLANEOUS EXPENDITURE

(to the extent not written off or adjusted)

1. Preliminary Expenses

2. Expenses including commission/brokerage on underwriting or subscription of shares or debentures

3. Discount allowed on issue of shares or debentures

4. Interest paid out of capital during construction

5. Development expenditure not adjusted

6. Other items (Specifying nature)

PROFIT AND LOSS ACCOUNT

(Debit Balance)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Total

 

CONTINGENT LIABILITIES

(Foot Note)

  1. Claims against the company not acknowledged as debts

  2. Uncalled liability on shares partly paid

  3. Arrears of fixed cumulative dividends

  4. Estimated amount of contracts remaining to be executed on capital account and not provided for

  5. Other money for which the company is contingently liable

Requirements as to Balance Sheet

Under each of the heads in the above balance sheet of the companies, detailed notes are to be given on various matters. These requirements are listed as under :

Share Capital

  1. The ‘issued capital’ and ‘subscribed capital’ must be distinguished into various classes of capital; viz. preference and equity, and the particulars specified hereunder must be given separately for each of them.

  2. Shares allotted as fully paid, pursuant to a contract, for consideration other than cash, should be separately shown; e.g., shares issued to promoters, or for the purchase of a running business etc.

  3. Shares allotted as fully paid-up by way of bonus shares, should be separately disclosed. The source from which the bonus shares are issued must also be specified; e.g., by capitalisation of reserves or profits or from share premium account, etc.

  4. Terms of redemption or conversion, if any, in case of redeemable preference shares must be stated, together with the earliest date of redemption or conversion.

  5. Particulars of any option on unissued share capital should also be specified.

  6. Preference shares should also be classified into different categories, if any.

  7. Unpaid calls must be shown separately in respect of following:

a) By directors.

b) By others.

  1. In case of forfeited shares, amount originally paid-up should be shown. Any profit on reissue of forfeited shares should be transferred to capital reserve.

  2. In case of 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.

  3. Any capital profit on reissue of forfeited shares should be transferred to Capital Reserve.

The auditor is not required to certify the correctness of such shareholdings as certified by the management.

Reserves and Surplus

  1. The item ‘Share Premium Account’ shall include the details of its utilisation in the year of its utilisation in the manner provided in S. 78.

  2. In case of ‘other reserves’, the nature and the amount of each reserve must be specified; e.g., General Reserves, Dividend Equalisation Reserve, etc.

  3. The debit balance in the profit and loss account should be shown as a deduction from the uncommitted reserves, if any.

  4. Additions and deductions in the reserves since last balance sheet must be shown under each of the specified heads.

  5. The word ‘fund’ in relation to any ‘reserve’ must be used only where such reserve is specifically represented by earmarked investments.

Secured Loans

  1. Loans from directors and managers must be shown separately, under each sub-head.

  2. Interest accrued and due on secured loans should be included under appropriate sub-heads under the head "Secured Loans".

  3. The nature of security must be specified in each case.

  4. Where loans have been guaranteed by managers and/or directors, a mention thereof shall also be made and also the aggregate amount of such loans under each head.

  5. In case of debentures, the terms of redemption or conversion, if any, of debentures issued must be stated together with earliest date of redemption or conversion.

  6. Particulars of redeemed debentures which the company has power to reissue should be given.

  7. 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 company’s books shall be stated.

Unsecured Loans

  1. Loans from Directors; or Manager should be separately shown.

  2. Interest accrued and due on unsecured loans must be included under the appropriate sub-heads under the head
    "Unsecured Loans".

  3. Where loans have been guaranteed by the managers and/or directors a mention thereof should be made and also the aggregate amount of such loans under each head.

  4. Short-term loans are defined to include those loans which are due for not more than 1 year as on the date of the balance sheet.

  5. Maximum amount raised through ‘Commercial Paper’ and outstanding balance at year end to be disclosed as per RBI stipulations.

Current Liabilities and Provisions

  1. Advance payments/unexpired discounts are that portion for which value has still to be given; e.g. in case of following companies.

    Newspapers, Fire insurance, Theatres, Clubs, Banking companies, Steamship companies, etc.

  2. Current account balances with directors, and manager, shall be shown separately.

  3. The name(s) of the small scale industrial undertaking(s) to whom the company owes any sum exceeding Rs. 1,00,000/- together with interest which is outstanding for more than 30 days are to be disclosed.

Contingent liabilities

  1. These are to be shown by way of a footnote and their amounts do not form part of the total of the balance sheet.

  2. In case of arrears of fixed cumulative dividends, the period for which the dividends are in arrears or if there is more than one class of shares, the dividends on each of such class are in arrears, shall be stated separately. The amount shall be stated before deduction of income 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 must be stated.

  3. The amount of any guarantee given by the company on behalf of the directors or other officers of the company should be stated.

  4. The contingent liabilities with their general nature and amount of each such contingent liability, if material, should be stated.

Fixed Assets

  1. The fixed assets must be classified and distinguished as far as possible between the heads given in the balance sheet.

  2. Under each head, the following details have to be separately given:

a) Original cost of the asset.

b) Additions thereto during the year.

c) Deductions therefrom during the year.

d) Total depreciation written off or provided up to the end of the year.

  1. Where the original cost of the asset cannot be ascertained without unreasonable expense or delay, the valuation shown by the books must be given. Such valuation shall be the net amount at which the asset stood in the company’s books at the commencement of the Companies Act, 1956, after deduction for depreciation etc.

  2. Where any sum has been written off on a reduction of capital or revaluation of assets, every balance sheet subsequent to such reduction or revaluation must show the reduced figures and the date of the reduction. For a period of five years, the amount of the reduction made shall also be stated.

  3. Similarly, where sums have been added by writing up the asset, each subsequent balance sheet, should show the increased figures with the date of the increase. For a period of five years, the amount of the increase shall also be
    stated.

  4. Depreciation written off or provided should be allocated under the different heads of assets and deducted in arriving at the value of the fixed assets.

Investments

  1. The nature of investment and the mode of valuation for example at cost or market value shall be stated.

  2. The investments shall be distinguished between quoted and unquoted investments and where quoted, the market value must be shown.

  3. Investments in shares, debentures or bonds must be classified into fully paid or partly paid and into different classes of shares.

  4. Investments in subsidiaries must be separately stated.

  5. Investments must also be classified into trade investments and other investments. "Trade investment" means an investment by a company in the shares or debentures of another company, not being its subsidiary, for the purpose of promoting the trade or business of the first company.

  6. A separate schedule of investments, showing the names of bodies corporate (showing separately the bodies corporate under the same management) in whose shares or debentures, investments have been made, should be annexed. The schedule also should show all the investments whether existing or not, made subsequent to the date as at which previous balance sheet was made out. In case of investment company (principal business of acquisition of shares, debentures, etc.), investments existing on the date as at which the balance sheet was made out may be given.

  7. In regard to the investments in the capital of partnership firms, the names of the firms, names of all other partners, total capital and share of each partner shall be given.

  8. 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

  1. 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 the business at least equal to the amount at which they are stated, the fact that the Board is of that opinion shall be stated.

  2. In case of stores and spare parts, stock-in-trade and work-in-progress, the mode of valuation shall be stated. Amount in respect of raw materials should be stated separately wherever practicable.

  3. In case of investment in shares, debentures, etc. classified under current assets as a stock-in-trade information as per paras 5 and 6 above under ‘Investment' shall also be given separately.

  4. In regard to sundry debtors particulars should be given separate in respect of :

a) debts considered good and in respect of which the company is fully secured.

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.

A separate disclosure should also be made in respect of following:

a) debts due by —

i) directors or other officers of the company

ii) directors or other officers of the company jointly with any other person

iii) firms in which any director is partner

iv) private companies in which any director is a director or a member

b) debts due from other companies under the same management within the meaning of sub-section (1B) of S. 370 together with the names of such cos.

c) the maximum amount due by directors or other officers of the company at any time during the year.

The term "Sundry Debtors" has been defined to include "the amounts due in respect of goods sold or services rendered or in respect of other contractual obligations". It does not, however, include amounts which are in the nature of loans or advances.

The provision for bad and doubtful debts under the head ‘sundry debtors’ should not exceed the amount of debts stated to be considered bad or doubtful. Any surplus of such provision should be shown as reserve for bad or doubtful debts under the head ‘Reserves and Surplus’ on the liabilities side.

  1. In regard to ‘bank balances’, the following particulars should be given :

  1. the balance lying with scheduled banks on current accounts, call accounts and deposit accounts;

  2. the names of the bankers (other than scheduled banks) and the balances 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

  3. the nature of the interest, if any, of any director or his relative in each of the banks, referred to in (b) above.

  1. In regard to loans and advances, all instructions regarding ‘Sundry Debtors’ would apply to "Loans and Advances" also.

The amounts due from other companies under the same management within the meaning of S. 370(1B) shall be given with the names of such companies.

The maximum amount due from every one of such companies at any time during the year must also be stated.

Current accounts with directors and managers should be shown separately.

Miscellaneous expenditure

  1. The debit balance of profit and loss account should be shown as a deduction from the free or uncommitted reserves, if any.

  2. While showing "interest paid out of capital during construction", the rate of interest shall be stated.

Other general instructions

  1. If the required information cannot be given conveniently in the given form in the balance sheet itself, it may be furnished in separate schedules annexed to and forming part of the balance sheet.

  2. Except in the case of the first balance sheet, the corresponding amounts for the immediately preceding financial year for all items shall also be shown.

  3. Paise can also be given in addition to rupees, if desired.

  4. Dividends declared by subsidiary companies after the date of the balance sheet should not be included unless they are in respect of the period which closed on or before the date of the balance sheet.

  5. Any reference to benefits expected from contracts to the extent executed shall not be made in the balance sheet but shall be made in the Board's Report.

  6. A small-scale industrial undertaking has the same meaning as assigned to it under clause (j) of sec. 3 of the Industries (Development and Regulation) Act, 1951.

  7. The figures in the balance sheet may be rounded off as under:

• Less than Rs. 100 crores : to the nearest hundreds or thousands or decimal thereof

• Between Rs. 100 crore or more, but less than Rs. 500 crores : to the nearest hundreds, thousands, lakhs or millions or decimal thereof

• Rs. 500 crores or more, to the nearest hundreds, thousands, lakhs, millions or crores or decimal thereof.

B. VERTICAL FORM

Name of the company

Notes :

Balance Sheet as at

  1. Details under each of the above items shall be given in separate Schedules. The Sche-dules shall incorporate all the information required to be given under A Horizontal Form read with notes containing general instructions for preparation of balance sheet. The Schedules, referred to above, accounting policies and explanatory notes that may be attached shall form an integral part of the balance sheet.

  2. The figures in the balance sheet may be rounded off as mentioned in "Other general instructions" – Point No. 7, under the previous topic of "Requirements as to Balance Sheet".

  3. A footnote to the balance sheet may be added to show separately contingent liabilities.

 

 

 

Sch. No.

Figures as
at the end
of the current financial year (Rupees)

Figures as
at the end
of the previous financial year (Rupees)

I.

Sources of funds

1. Shareholders’ 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 ........................

 

 


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