Welspun Corp Ltd Revised Schedule VI to Companies Act, 1956 By CA CS Pradeep Sainani

Scope & Applicability Applies to all companies following non-converged Indian Accounting Standards. No possibility of conflict between Accounting Standard and Schedule VI as on modification of accounting standards prescribed under the companies act, Schedule VI would stand modified accordingly. The disclosure requirement of revised Schedule VI are in addition to that required by Accounting Standards prescribed under the companies act. Unlike Previous Schedule VI, Form of Profit and Loss Account has been specified in Part II Detailed disclosures will be given in notes to accounts Cross reference for each line item will be provided. Unit of measurement selected to used uniformly in financial statements

Revised Schedule VIPrevious Schedule VI Part II – Form of Statement of Profit & Loss has been specified. Part II – No specific form is specified. However in particular, company has to disclose the specified information Assets & Liabilities are classified into current & non-current assets Assets are classified as fixed assets & current assets. Liabilities are classified into loan funds & current liabilities Rounding off Less than 100 Crores : To the nearest hundreds, thousands, lakhs or millions, or decimals thereof 100 Crores or more : To the nearest lakhs, millions or crores or decimals thereof Rounding off to nearest thousands or hundreds as may be convenient or may be expressed in terms of decimals of thousands Key Differences

Revised Schedule VIPrevious Schedule VI No such requirementRaw Material item which accounts for 10% or more of total value of raw material consumed should be shown separately with quantities thereof Any income or expense that exceeds 1% of total revenue from operation or Rs.1,00,000 whichever is higher, has to be disclosed in notes to accounts Any expense that exceeds 1% of total income or expense or Rs.10,000 whichever is higher, cannot be clubbed to miscellaneous expenditure. Gross disclosure. Interest income shall be clubbed with other income. Net finance cost disclosure Expenses to be clubbed considering nature of expense. Expenses to be clubbed under most convenient head Key Differences

Revised Schedule VIPrevious Schedule VI Reco is to be disclosed for each reserve & equity No such requirement No comments on certification by auditors Disclosure regarding shares held by parent & ultimate parent. Auditors are not required to certify such correctness No concept of Horizontal Balance Sheet Concept of Horizontal & Vertical Balance Sheet Interest Accrued & Due to be shown as other current liabilities Interest Accrued & Due to be added to outstanding borrowings Separate Disclosure for tangible & Intangible assets Common Schedule for both Key Differences

Revised Schedule VIPrevious Schedule VI Forex gain or loss related to finance cost to be shown under finance cost Forex gain or loss related to finance cost to be shown under manufacturing & other expenses No comments on certification by auditors Disclosure regarding shares held by parent & ultimate parent. Auditors are not required to certify such correctness No Quantitative Details. Only values to be given Disclosure of Quantitative & Values of goods Share application Money Refundable - Other current assets Non-Refundable – Under Equity To be shown separate line item on face of Balance Sheet irrespective of refundable or not Trade Receivables Normal Credit terms – Trade receivable Deferred Credit Terms - Other current assets All debtors to be shown as Sundry Debtors Key Differences