company act presentation

7/27/2019 Company Act Presentation

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P.C. Modi & Company CA Bharat Sonkhiya 20/01/2012 1

RAJASTHAN STATE MINES AND MINERALS LIMITED


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Section 211 of the Companies Act, 1956Section 211 1): Balance Sheet Section 211 2): Profit and LossAccount

As per Part-I of

Schedule VI of theCompanies Act, 1956.

Must give a trueand fair view.

General instructions i.e.Notes

against each itemshould be followed.

As per Part-II ofSchedule VI of the

Companies Act, 1956.

Must give a trueand fair view.



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Existing Schedule VI replacedby new Schedule VI videNotification No. S.O. 447(E)dated 28thFebruary, 2011.



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All Companies (except Banking, Insurance andElectricity Companies).Financial years commencing on or after 1stApril,2011.In accordance with the existing non-convergedAccounting Standards notified under theCompanies (Accounting Standards), Rules, 2006.Infosys has come out with full set of FinancialStatements for two quarters based on revisedSchedule VI.


APPLICABILITY


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Revised Schedule VIA Birds eye view


General Instructions

Part I Form of Balance Sheet and GeneralInstructions for preparation of Balance Sheet

Part II Form of the Statement of Profit and

Loss and General Instructions for preparation ofStatement of Profit and Loss


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BALANCE SHEETPART I- Form of BALANCE SHEET

Name of the Company.Balance Sheet as at.

(Rupees in.)See accompanying notes to the financial statements

Particulars NoteNo. Figures for thecurrent reportingperiod

Figures for theprevious reportingperiod

I. Equity and LiabilitiesShareholders Fund

Share Application Money pending

for allotment

Non-current liabilities

Current liabilities

Xxx xxx

II. AssetsNon-current assets

Current assets

Xxx xxx


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STATEMENT OF PROFIT ANDLOSS

Particulars NoteNo. Figures for thecurrent reportingperiodFigures for theprevious reportingperiod

I. Revenue from operations Xxx xxx

II. Other Income Xxx xxx

III

.

Total Revenue (I+II) Xxx xxx

PART II- Form of STATEMENT OF PROFIT AND LOSSName of the CompanyProfit and loss statement for the year ended




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EQUITY AND LIABILITY CLASSIFICATION


Other Long-

term Liabilities

Deferred taxLiabilities(Net)

Short-term

borrowings

CurrentLiabilities

Trade Payables

Long-term

borrowings

Non-CurrentLiabilities

Short-termprovisions

Other currentliabilities

ShareApplication

moneypending

allotment

Long-termprovisions

Equity andLiabilities

Moneyreceived

against sharewarrants

Reserves andSurplus

Share Capital

ShareholdersFund


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Assets

Current AssetsNon- Current Assets

Non- CurrentInvestments

Fixed Assets

IntangibleAssets underdevelopment

Capital WIP

IntangibleAssets

Other Non-Current Assets

Long-term Loansand Advances

Deferred TaxAssets (Net)

Tangible AssetsCurrent

Investments

Inventories

Other currentAssets

Shortterm Loansand Advances

TradeReceivables

Cash and cashequivalents

ASSET CLASSIFICATION


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Supremacy of Accounting Standards Assets & Liabilities:-

Current Non Current

Definitions of :- Current Non Current

Proposed Dividend Cross Reference of NOTES

YET NOT IN ACCORDANCE WITHIFRS / IND - ASP.C. Modi & Company CA Bharat Sonkhiya 20/01/2012 10

HIGHLIGHTS


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ACCOUNTING STANDARD WILL PREVAILAS PER PARAS 1 AND 6 OF GENERAL

INSTRUCTIONS

Disclosure Requirements

As per

Accounting

Standards

As perRevised Schedule VI

CONFLICT

SUPREMACY OF ACCOUNTING STANDARDS



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MOST SIGNIFICANTCHANGES

CURRENT ASSETS / LIABILITIES

NON CURRENT ASSETS/ LIABILITIES



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IMPORTANT DEFINITIONS


OPERATING CYCLEAn operating cycle is the time between the acquisitionof assets for processing and their realization incash or cash equivalents. Where the normaloperating cycle cannot be identified, it is assumedto have a duration of 12 months.


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RSMML

Mining Activity

RockPhosphate

Limestone Lignite Gypsum

Wind Farms



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Normal Operating cycle in RSMML

Particulars RockPhosphate

Limestone Gypsum Lignite WindFarms

Removal of overburden 2 - - - -

Drilling & Blasting 2 2 - - -

Excavation, Processing

& Transportation tocustomers

16 15 11 20 -

Supply of electricity - - - - 40

Realization of debtors 180 55 5 5 15

TOTAL 200 72 16 25 55

(In Days)

*Higher credit period has been considered as time taken for realization of debtors in case of credit sales.

*For better clarity Company may opt single higher NOC i.e. 200 days.



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In case of RSMML, Normal Operating Cycle isshorter than 12 months. Therefore, criteria forCurrent and Non-Current will be as under:

Criteria for Current and Non-Current

NormalOperatingCycle (as

determined)

12 monthsafter

reporting

date

Whichever

is higher



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0

Determination of Normal Operating Cycle

End of NOC

Normal Operating Cycle = 200 days

NOCperiod

Assets andliabilities

expected to berealized and

settled in thisperiod will beCurrent

Assets and

liabilities not

expected to be

realized and

settled in this

period will be

Non- Current

Initial DevelopmentPeriod (not a part ofNOC) Removal of

overburdenDrilling &Blasting

Excavation &Transportation

Realizationof debtors

Start of NOC

Rock Phosphate SBU

1-2 Years 2 days

2 day 16 days 180 days



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Q.) Rock Phosphate SBU has entered into a contract with a party on 1st

April, 2011 for supplying minerals quarterly for three years. The first

supply was made in the month of May, 2011 amounting to `10 lacs.

However payment was not realized before 31stMarch, 2012. A sum of `7

lacs was expected to be received within the year and remaining `3 lacs

was not expected to be received till 31st March, 2013. The contract

required a sum of ` 2 lacs to be deposited as security deposit by the party

and the contract can be terminated at the option of party. The securitydeposit was refundable after 12 months from the date of termination of

contract.

Example



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Example

1. Debtors amounting to ` 7 lacs will not be considered as non-current on thereporting date as these are expected to be realized within 12 months after thereporting date as per the condition 3 of the definitions. Debtors amounting to `3

lacs will be considered as non-current on the reporting date as these are notexpected to be realized within 12 months after the reporting date.2. Security deposit is considered as current if the contract is terminated before 31st

March, 2012 as the amount is refundable within 12 months from the end ofreporting period.

Removal ofoverburden

& Excavation

Processinginto finished

goods

Transportation& billing tocustomers

Payment realized(`7 lacs)

Reporting date

01/04/2011 01/05/2011 05/05/201131/03/2012

30/09/2012 31/03/2013

Non-current

Current on the basis ofcondition 3 of the definition.

`10 lacs out of NOC

`3 lacs


20/11/2011

End of NOC

(200days)


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Items which are always Non-Current


1. Deferred tax asset/liability

2. Fixed Assets3. Capital advances for Fixed Assets

Items which are always Current

1. Finished goods/ stock-in-trade held for trading.2. Fixed deposits until there is a restriction on

their realization.3. Unpaid dividend lying in Investor Education

and Protection Fund Account.4. Accrued interest.5. Current maturities of Non-Current liabilities.6. Current realization of Non-Current assets.


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Determination of Normal Operating Cycle.

Also, proper documentation of Normal Operating Cycle along with the

Boardsapproval for the same.

This requires the empirical study of Companys previous years data and

past experiences.

View of Auditor and Auditee may differ on issues involving subjectivity.

Applying the test of Normal Operating Cycle (as applicable) for classifying

each and every asset and liabilities into Current and Non-Current.



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Expected tobe realized

Basisrequired

Documentationrequired at thetime of audit

Empiricalstudy/

Analysis ofdata

Assets:- Expected to be realized



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Debtors

Long outstanding also includespending for reconciliationagainst which provision is made.

Others

Documentation requiredfor expected realizationwithin 12 months.

Expected to berealized within12 months afterreporting date.

Not expected tobe realizedwithin 12months after

reporting date.

CURRENT NON-CURRENT



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Finished

Goods/Stock-in-

trade

Slowmoving

ObsoleteNon-moving

Not expectedto be realizedwithin 12months afterreportingdate. Hence

Non-Current

AlwaysCurrent



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Stores&

Spares

Slowmoving

Obsolete

Non-moving

Not expectedto beconsumedwithin 12months afterthe reportingdate. Hence,non-current


If expected to be utilized/ consumed within 12months after the reporting date then currentotherwise Non-Current


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Advances to employees, claims

recoverable & security deposits

Amount expected to be realized

within 12 months after thereporting date CURRENTAmount expected to be realized

beyond 12 months after thereporting date NON-CURRENT



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Income taxdeposits

Advance tax

AlwaysCURRENT

Income tax

refunds

If expected to berealized within 12months from thereporting datethen CURRENT.

Demanddeposits

against appeal

Expectation ofrealization within12 months afterreporting date thenCURRENT.

Others will beNON-CURRENT.



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Portion to be amortizedwithin 12 months afterreporting date shall beCURRENT.

Unamortized portion shallbe NON-CURRENT


Miscellaneous Expenditure :- Deferred Revenue Expenditure

Under the head other Current/ Non-Current Assets


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Investment in joint

sector/ assisted sector

Investment held for Long Term,

hence NON - CURRENT

Investment in

Subsidiaries

Investment in Subsidiaries held for

Long Term, hence NONCURRENT.

Current maturities oflong term investments Classified as CURRENT



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LIABILITIES



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P.C. Modi & Company CA Bharat Sonkhiya 20/01/2012

37

The Company doesnot have anyunconditional right todefer settlement ofthe liability for atleast 12 months afterthe reporting date.

Criteria for Current Liabilities

CURRENT

NONCURRENT

Yes

No


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Running bills of Contractors pending to

be settled.1. Have to be settled within 12 months after reporting date

2. No unconditional right to defer beyond 12 months

3. Expected to be settled within the Normal Operating Cycle of the

Company

Currentliability

Non-Currentliability



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The amount is expectedto be adjusted within 12monthsThe amount is to beadjusted within theNOC

Right to defer thepayment of the samebeyond 12 months

Yes/No Yes/No Yes/No

CurrentIf Yes

Non-CurrentIf No



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Provision for employees benefits likegratuity and leave encashment

Liability as ascertainedby Actuarial Valuation

Liability payable within12 months will be Current

Other liability will be Non-Current


Provisions


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Other Miscellaneous Liabilities

Other Misc.Liabilities &Provisions

Provisions

Income Tax

Dividenddistribution

tax

Others

Outstanding

expenses

Contributionto Provident

FundUnpaid

expenses

Expected to besettled within 12months after thereporting date

OtherwiseNon-Current

CurrentLiability



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The disclosure requirementsspecified in Part I of Schedule VIare in addition to and not in

substitution of the disclosurerequirements specified in the

Accounting Standards prescribed

under the Companies Act, 1956.



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Disclosure in Notes Requirement of disclosure of Delayed Payments to Micro and Small

Enterprises


Contractual

Obligations Excluded - amounts due undercontractual obligation can nolonger be included within Trade

Payables. Such payables should beclassified as "others" and each such

item should be disclosed nature-

wise.

Included amount due in

respect of all contractual

obligations to be included

under Sundry Creditors.

ExamplePayable

against Purchase of

Machinery and its

renovation contract.

Will be shown under Other Non

Current Liabilities(If payable after 12

months from the reporting date or

Operating cycle).

Will be shown under the

head Sundry Creditors.


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Long TermOther Current (Non Current)

To be disclosedunder this head

Employee BenefitsOthers (Specify Nature)

Example: Provisionsfor Warranties

Long Term Provisions

Short TermProvisionsProvision for Employee Benefits Others (Provision for Dividend,Provision for Taxation etc.)


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Capital Work-in-Progress

Capital advancesshould be includedunder long-termloans & advances

Intangible Assetsunder Development

should be disclosedunder separatehead provided theycan be recognisedbased on thecriteria laid down

in AS 26Intangible Asset



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Example Sale of Such receivables will be classified Will be shown under the head Sundry


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Particulars Revised Schedule VI Old Schedule VIDue date of payment Expected date of realization

calculated from past trend.Billing date

Disclosure Outstanding for a periodexceeding 6 months from thedate the invoice / bill is due forpayment.

** where no due date isspecifically agreed upon,normal credit period allowed

by the company should betaken into consideration forcomputing the due date whichmay vary depending upon thenature of goods or services soldand type of customers.

Outstanding for a periodexceeding 6 months based onthe date on which invoice / billwas raised.


Fixed Assets /Contractuallyreimbursableexpenses / insuranceclaims.

as others and each such itemshould be disclosed nature-wise.

yDebtors

:


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Example: Billing Date01st July, 2011 In normal course of business, receivables are realized within 3 months from the billing date.

Disclosure Comparison of Schedule VI:Particulars Revised Schedule VI Old Schedule VIDue Date 01st October, 2011 01st July, 2011

Disclosure to be made for: Outstanding as on and after01st April, 2012

Outstanding as on and after01st Jan, 2012

In normal course of business the receivables became due for payment on 01st October, 2011 (3months). Thus outstanding for a period exceeding 6 months will be calculated from that date asper Revised Schedule V1.


S b idi i


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CurrentAssets

CurrentInvestments

Subsidiaries

Associates

JointVentures

Trade

Receivables(current)

Secured,considered good,

Unsecured,

considered good,

Doubtful

Inventories

Goods in transit

Finished Goods otherthan those acquired for

trading purposes

Mode ofvaluation

Stock-in-trade should includegoods acquired for trading



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Contingent Liabilities and CapitalCommitmentsDisclosure of Contingent Liabilities and Commitments (to the extent not provided for)

Commitments

Estimated amount of contractsremaining to be executed onCapital account and not providedfor

Uncalled Liability on sharesand other investments whichare partly paid

Other Commitments(Specify nature)



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STATEMENT OF PROFIT AND LOSS

PART II REVISED SCHEDULE VI

COMPANIES ACT,1956



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KEYHIGHLIGHTS

Format prescribed: Vertical

Elimination of the concept of schedules,information to be provided in the notes toaccounts.

Classification of expenses is based on theirnature and not on their function.

Quantitative disclosure is dispensed with.


PART II FORM OF STATEMENT OF PROFIT AND LOSS


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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

PART II - FORM OF STATEMENT OF PROFIT AND LOSS

Name of the Company.

Profit and loss statement for the year ended.




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Significant Changes:Seperate disclosure on


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Significant Changes:Seperate disclosure on

face of P&L

Exceptional and Extraordinary items:


I Profit before exceptional and

extraordinary items and tax

II Exceptional items

III Profit before extraordinary items

and tax ( I-II)

IV Extraordinary items

V Profit before tax ( III-IV)

xxx

xxx

xxx

xxx

xxx


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DISCONTINUING OPERATIONS:


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Format will be:

AS-24provides the guidance on this part.


Profit/(loss) fromdiscontinuing operations

Tax expense of

discontinuing operations

Profit/(loss) from

discontinuing

operations(after tax)

xxx

xxx

xxx

DISCLOSURES IN NOTES TO


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DISCLOSURES IN NOTES TO

ACCOUNTS

Employeebenefitsexpenses

Salaries andwages

Contribution toprovident and

other funds

Staff welfareexpenses


1.


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6.


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Finance cost

Interestexpenses

Otherborrowing

costs


Borrowing costs has not been defined in revised schedule VI,

reference is to taken from AS-16 Borrowingcost.

6.

7


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Other

Disclosure innotes

ReservesSubsidiary

companies

DividendsProvision for

losses

ProvisionsDividend

proposed


7.

REQUIREMENT OF DISLOSURE OF STOCK:


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Q

RAW MATERIALS:

PARTICULARS CONSUMPTION

RAW MATERIALS XX

(YY)

TOTAL XX

(YY)


(Amount in `)

PARTICULARS PURCHASES

TRADED ITEM XX

(YY)

TOTAL XX

(YY)

(Amount in `)GOODS PURCHASED :

MANUFACTURED GOODS :


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MANUFACTURED GOODS :

PARTICULARS SALES VALUES CLOSING

INVENTORY

OPENING

INVENTORYFINISHED GOODS

A

XX

(YY)

XX XX

TOTAL XX

(YY)

XX XX


(Amount in `)

PARTICULARS WIP

GOODS WIP XX(YY)

TOTAL XX

(YY)

WIP GOODS :(Amount in `)

*Figures in brackets are previous year figures.


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DISCLOSURE BY WAY OF NOTES TO ACCOUNTS:


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Employeebenefit expenses

Salaries andwages

Contribution

to providentand other

funds

Employeeswelfare

Leaveencashment

Selling expenses

Cash discounts

Packagingexpenses

Advertisementexpenses

Businesspromotionexpenses

Payment tocontractors

For removal ofoverburden

For raising,transportation

and others

Freight charges



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