Companies Act

Schedule VI to the Companies Act,1956
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1 INDEX S. No. 1. 2. 3. 4. 5. 6. 7. 21 CONTENTS Note on Concept in drafting of the Simplified Schedule VI Method Adopted in determining the form of Balance Sheet, Statement of Profit & Loss and Cash Flow Statement General Instructions for preparation of Balance Sheet, Statement of Profit & Loss and Cash Flow Statement General Instructions for preparation of Balance Sheet General Instructions for preparation of Statement of Profit & Loss General Instructions for preparation of Cash Flow Statement Formats’ Part-I - Balance Sheet Part-II - Statement of Profit & Loss Part-III - Cash Flow Statement Page No. 3 4 5-6 7-15 16-18 19 20 22-24 2 NOTE ON CONCEPT IN DRAFTING OF THE SIMPLIFIED SCHEDULE VI The Draft ‘Simplified Schedule VI’ to the Companies Act, 1956 has been prepared on the following concept: (a) (b) To have a ‘readable, useful, transparent and user friendly’ form of Schedule VI. To set out minimum disclosure requirements which are considered essential to ensure true and fair presentation of the financial position and financial performance of the company and comparability both with the company’s previous periods and with other companies. The Balance Sheet and the Statement of Profit and Loss should not be burdened with too many disclosure requirements. To remove the requirements of disclosures no longer considered relevant in view of the changed socio-economic structure and level of development of the economy. To remove disclosure requirements which are meant for statistical purposes only e.g. Part IV of Schedule VI. To have inherent flexibility for amendments and industry/sector specific improvements from time to time and to cater to industry/sector specific disclosure requirements. To harmonize and synchronize the general disclosure requirements with those prescribed in the Accounting Standards by removing the existing inherent anomalies. The specific disclosure requirements prescribed in the Accounting Standards are not incorporated here so that amendment in the Accounting Standard does not necessitate an amendment in the form of Schedule VI. To attain compatibility and convergence with the International Accounting Standards and practices. (c) (d) (e) (f) (g) (h) (i) 3 METHOD ADOPTED IN DETERMINING THE FORM OF BALANCE SHEET, STATEMENT OF PROFIT AND LOSS AND CASH FLOW STATEMENT I. BALANCE SHEET 1) Presentation is based upon : (a) The balanced format in which the sum of the amounts for liabilities and equity are added together to illustrate that assets equal liabilities plus equity. The report form i.e. top to bottom or the vertical form. (b) 2) Classification of assets and liabilities: (a) (b) Classification is based upon assets/liabilities method. current and non-current Similar nature of assets/liabilities are grouped into line items. II. STATEMENT OF PROFIT AND LOSS 1) Presentation is based upon: Multiple step format i.e. Revenues from operations less cost of sales less operating expenses add other incomes less non operating expense less tax expense. 2) Classification of expenses is based upon: Function of expense method-expenses are classified according to their function as part of cost of sales, selling and marketing expenses or administrative expenses. Expenses are reallocated among various functions within the company. III. CASH FLOW STATEMENT 1) Presentation is based upon: Cash inflow and outflow format i.e. cash inflows from various activities are grouped together and similarly cash outflows from various activities are grouped together. 2) Classification of cash flows is based upon: The indirect method, whereby net profit or loss is adjusted for the effects of a) transactions of a non-cash nature; b) any deferrals or accruals of past or future operating cash receipts or payments; and c) items of income or expense associated with investing or financing cash flows. 4 SCHEDULE VI GENERAL INSTURCTIONS FOR PREPARATION OF BALANCE SHEET, STATEMENT OF PROFIT AND LOSS AND CASH FLOW STATEMENT I. 1. GENERAL INSTRUCTIONS This Schedule shall apply to companies other than ‘Small and Medium Sized Company’ (SMC) as defined in Rule 2 (f) of Companies (Accounting Standards) Rules, 2006. This Schedule sets out the minimum requirements for disclosure on the face of the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement (hereinafter referred to as “Financial Statements”) and Notes. Line items, subline items and sub-totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the company’s financial position or performance or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act or under the Accounting Standards. Where compliance with the requirements of the Act including Accounting Standards require any addition, amendment, substitution or deletion in the head/sub-head or any changes interse financial statements or statements forming part thereof, the same shall be made and the form shall stand modified accordingly. The disclosure requirements specified in Part I, Part II and Part III of this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Accounting Standards prescribed under the Companies Act, 1956. Additional disclosures specified in the Accounting Standards shall be made in the Notes to Accounts or by way of additional statement unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act shall be made in the Notes to Accounts in addition to the requirements set out in this Schedule. The requirements for disclosure in the financial statements shall not be prescribed by any other Law except through amendment to the Schedule made in terms of the Companies Act, 1956 in consultation with the Institute of Chartered Accountants of India. Notes to Accounts shall contain information in addition to that presented in the Financial Statements and shall provide narrative descriptions or disaggregations of items disclosed in those statements and information about items that do not qualify for recognition in those statements. Each item on the face of Balance Sheet, Statement of Profit and Loss and Cash Flow Statement shall be crossreferenced to any related information in the Notes to Accounts. A balance shall be maintained between providing excessive detail that may not assist users of financial statements and obscuring important information as a result of too much aggregation. 2. 3. 4. 5. 5 6. Depending upon the turnover of the company, the figures appearing in the financial statements shall be rounded off as below: Turnover Rounding off To the nearest hundreds, thousands or lakhs, or decimals thereof. To the nearest thousands, lakhs or millions, or decimals thereof. To the nearest thousands, lakhs, millions or crores, or decimals thereof. (i) less than one hundred crore rupees (ii) one hundred crore rupees or more but less than one thousand crore rupees (iii) one thousand crore rupees or more 7. Except in the case of the first Financial Statements laid before the Company (after its incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including Notes shall also be given. An existing company, which was previously an SMC and subsequently becomes a non SMC, shall follow Schedule VI and shall not be qualified for ‘Saral Schedule VI’ until the company remains an SMC for two consecutive reporting periods. (i) For the year in which the existing SMC company becomes a non SMC company the previous period figures of the Financial Statements shall be reclassified according to the requirements of the Schedule VI unless the reclassification is impracticable. (ii) When it is impracticable to reclassify comparative amounts, the company shall disclose: (a) (b) the reason for not reclassifying the amounts; and the nature of the adjustments that would have been made if the amounts had been reclassified. 8. 9. 6 II. 10. GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET For the purpose of Part I - Balance Sheet: 10.1 An asset shall be classified as current when it satisfies any of the following criteria: (a) (b) (c) (d) it is expected to be realized in, or is intended for sale or consumption in, the company’s 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. All other assets shall be classified as non-current. 10.2 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. 10.3 (a) (b) (c) (d) A liability shall be classified as current when it satisfies any of the following criteria: it is expected to be settled in the company’s 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. All other liabilities shall be classified as non-current. 10.4 A. A company shall disclose the following in the notes to accounts: Share Capital for each class of share capital : (a) (b) (c) (d) the number and amount of shares authorized; the number of shares issued, subscribed and fully paid, and subscribed but not fully paid; par value per share; a reconciliation of the number of shares outstanding at the beginning and at the end of the period; 7 (e) (f) (g) (h) (i) the rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital; shares in the company held by its holding company or its ultimate holding company or by its subsidiaries or associates; shares in the company held by any shareholder holding more than 5 percent shares; shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts; Separate particulars for a period of five years following the year in which the shares have been allotted/bought back, in respect of: Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. Aggregate number and class of shares allotted as fully paid up by way of bonus shares (Specify the source from which bonus shares are issued). Aggregate number and class of shares bought back. (j) Terms of any security issued along with the earliest date of conversion in descending order starting from the farthest such date. B. Reserves and Surplus (i) Reserves and Surplus shall be classified as: (a) Capital Reserves; (b) Capital Redemption Reserves; (c) Securities Premium Reserve; (d) Debenture Redemption Reserve; (e) Revaluation Reserve; (f) Other Reserves – (specify the nature of each reserve and the amount in respect thereof); (g) Surplus i.e. balance in statement of Profit & Loss disclosing allocations and appropriations such as dividend paid, bonus shares and transfer to/from reserves. (Additions and deductions since last balance sheet to be shown under each of the specified heads) (ii) (iii) A reserve specifically represented by earmarked investments shall be termed as a ‘fund’. The balance of ‘Surplus’ after deducting debit balance of profit and loss account shall be shown under the head ‘Surplus’ even if the resulting figure is in the negative. Similarly, the balance of ‘Reserves and Surplus’, after adjusting negative balance of 8 surplus, if any, shall be shown under the head ‘Reserves and Surplus’ even if the resulting figure is in the negative. C. Share application money (i) Application money received in excess of the amount of capital offered for subscription, where the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Advance against share application money shall be disclosed separately including the contracts/ commitments and the terms thereof. (ii) D. Long-Term Borrowings (i) Long-term borrowings shall be classified as: (a) (b) (c) (d) (e) (f) (ii) Bonds/debentures. Term loans from banks. from other parties. Deferred payment liabilities. Public deposits. Loans and advances from subsidiaries/holding company/associates/business ventures. 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. (iii) Where loans have been guaranteed by directors or others, a mention thereof shall be made and also the aggregate amount of such loans under each head. (iv) Bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due. (v) Particulars of any redeemed bonds/ debentures which the company has power to reissue. (vi) Terms of repayment of term loans and other loans. 9 (vii) Period and amount of default in repayment of dues, providing break-up of principal and interest shall be specified separately in each case. E. Long-term provisions The amounts shall be classified as: (a) (b) F. Provision for employee benefits. Others (specify nature). Short-term borrowings (i) Short-term borrowings shall be classified as: (a) (b) (c) (d) (ii) Loans repayable on demand from banks. from other parties. Loans and advances from subsidiaries/holding company/associates/business ventures. Demand 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, a mention thereof shall be made and also the aggregate amount of loans under each head. Period and amount of default in repayment of dues, providing break-up of principal and interest shall be specified separately in each case. (iii) (iv) G. Trade payables The amounts shown under ‘Trade Payables’ shall include the amounts due in respect of goods purchased or services received in the normal course of business. H. Other current liabilities The amounts shall be classified as: (a) (b) (c) (d) (e) (f) Current maturities of long-term debt; Current maturities of finance lease obligations; Other payables (specify nature); Interest accrued but not due on borrowings; Interest accrued and due on borrowings; Unearned revenue; 10 (g) The following amounts shall be shown separately: Unpaid dividends Unpaid application money received for allotment of securities and due for refund Unpaid matured deposits Unpaid matured debentures Interest accrued on above I. Short-term provisions The amounts shall be classified as: (a) (b) Provision for employee benefits. Others (specify nature). J. Tangible assets (i) Classification shall be given as: (a) Land. (b) Buildings. (c) Plant and Equipment. (d) Furniture and Fixtures. (e) Vehicles. (f) Office equipment. (g) 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 and other movements and the related depreciation and impairment losses/reversals shall be disclosed separately. (ii) (iii) K. Intangible assets (i) Classification shall be given as: (a) Goodwill. (b) Brands /trademarks. (c) Computer software. (d) Mastheads and publishing titles. (e) Mining rights. (f) Copyrights, and patents and other intellectual property rights, services and operating rights. (g) Recipes, formulae, models, designs and prototypes. (h) Licenses and franchise. (i) Others (specify nature). 11 (ii) 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 and other movements and the related amortization and impairment losses/reversals shall be disclosed separately. Non-current investments (i) Non-current investments shall be classified as: (a) (b) (c) (d) (ii) (iii) Investment property; Investments in Government or trust securities; Investments in units, debentures or bonds; Other non-current investments (specify nature) L. The investments held-to-maturity shall be stated separately The following shall also be disclosed: (a) (b) (c) (d) Aggregate amount of quoted investments and market value thereof; Aggregate amount of unquoted investments; Aggregate amount of partly paid-up investments; The names of bodies corporate (indicating separately the names of subsidiaries, associates and other business ventures) in whose securities, investments have been made and the nature and extent of the investments so made in each such body corporate. M. Long-term loans and advances (i) Long-term loans and advances shall be classified as: (a) (b) (c) (d) (ii) Capital Advances; Security Deposits; To directors / subsidiaries / associates / business venturesloans and advances to specify separately; Others (specify nature)- loans and advances to specify separately. The above shall also be separately sub-classified as: (a) (b) (c) To the extent secured, considered good; Others, considered good; Doubtful. (iii) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. 12 N. Other non-current assets This is an all inclusive heading which incorporates assets that do not fit neatly into any of the other asset categories. O. Current Investments (i) Current investments shall be classified as: (a) (b) (c) (ii) Investments in government or trust securities; Investments in shares, units, debentures or bonds; Other investments (specify nature). The following shall also be disclosed: (a) (b) (c) Aggregate amount of quoted investments and market value thereof; Aggregate amount of unquoted investments; Aggregate amount of partly paid-up investments. (iii) Current investments shall be further sub-classified as: (a) (b) Investments held for trading; Other investments. P. Inventories (i) Classification shall be made as: (a) (b) (c) (d) (e) (f) (g) (ii) Raw material; Work-in-progress; Finished goods; Stock-in-trade; Stores and spares; Loose tools; Others (specify nature). Goods-in-transit shall be disclosed under the relevant sub-head of inventories. Q. Trade Receivables (i) The amounts shown under ‘Trade Receivables’ shall include the amounts due in respect of goods sold or services rendered in the normal course of business. Trade receivables shall also be classified as: (a) (b) (c) To the extent secured, considered good; Others, considered good; Doubtful. (ii) 13 (iii) R. Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. Cash and cash equivalents (i) Classification shall be made as: (a) Bank balances; (b) Cheques, drafts on hand; (c) Cash balance; (d) Cash equivalents – short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value; (e) Others (specify nature). Earmarked bank balances (e.g. unpaid dividend) shall be separately stated. Balance with banks to the extent held as 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. (ii) (iii) (iv) (v) S. Short-term loans and advances (i) Loans and advances shall be classified separately as: (a) (b) (ii) To subsidiaries/associates/business ventures; To others (specify nature). The above shall also be sub-classified as: (a) (b) (c) To the extent secured, considered good; Others, considered good; Doubtful. (iii) T. U. Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately. Other current assets (specify nature). Contingencies and commitments (to the extent not provided for) (i) Contingencies shall be classified as: 14 (a) (b) (c) Tax contingencies and law suits (except those where the likelihood of an outflow of resources is remote); Guarantees; Other money for which the company is contingently liable (except those where the likelihood of an outflow of resources is remote). (ii) Commitments shall be classified as: (a) (b) (c) 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). V. The amount of dividends proposed to be distributed to equity holders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends shall also be disclosed separately. 15 III. 12. GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS For the purpose of Part II – Statement of Profit and Loss: 12.1 A company shall disclose the following in the notes to accounts to the extent applicable: A. Revenues from operations (i) Revenue from operations shall be classified as: (a) (b) (c) Less: (d) (e) (ii) Sale of products; Sale of Services; Other operating revenues (specify nature); Discounts, allowances, and returns; Excise duty / service tax. These shall include sales or service charges to customers for the goods and/or services provided during the period. This section shall include information about duties, taxes, discounts, allowances and returns in order to determine net sales or net revenues. B. Cost of sales/services (i) These are costs directly associated with generating revenues and shall include (to be disclosed separately): (a) (b) Change in inventories - Opening (less closing) inventories of finished goods and work-in-process; Cost of direct materials consumed arrived at by adding net purchases (purchases less discounts, returns and allowances plus freight-in) to beginning inventory to obtain direct materials available. From the cost of direct materials available, the ending inventory is deducted; Other external charges (such as the hire of plant and machinery or the cost of casual labour used in the productive process); Direct labour (ESOP and ESPP expenses to be disclosed separately); All direct production overheads; Depreciation and amortization that can reasonably be allocated to the production function; Indirect overheads that can reasonably be allocated to the production function; Product development expenditure not qualifying for recognition as an intangible asset and amortization of (c) (d) (e) (f) (g) (h) 16 (i) (j) (k) (l) (m) C. development expenditure recognized as an intangible asset; Inventory write downs/reversals; All direct overheads in providing services; All allocable indirect overheads in providing services; Cost of goods traded-in arrived at by adding net purchases (purchases less discounts, returns, and allowances plus freight-in) to beginning inventory to obtain the cost of goods available for sale. From the cost of goods available for sale amount, the ending inventory is deducted; Other cost of sales. Operating expenses (i) Operating expenses are those that are incurred in order to generate sales. Operating expenses shall be classified as: (a) (b) (c) (d) (ii) Selling and marketing expenses; Administrative expenses; Depreciation and amortization of assets; Foreign currency exchange gains / (losses), net. Selling and marketing expenses are those expenses that are directly related to the company’s efforts to generate sales. These items shall include (to be disclosed separately): (a) (b) (c) (d) (e) (f) (g) (h) Payroll costs of sales, marketing and distribution functions (ESOP and ESPP expenses to be disclosed separately); Advertising; Sales persons’ travel and entertaining; Warehouse costs for finished goods; Transport costs arising on the distribution of finished goods; All costs of maintaining sales out-lets; Agents commission payable; Other selling and marketing expenses. (iii) Administrative expenses are expenses related to the general administration of the company’s operations. These items shall include (to be disclosed separately): (a) (b) (c) (d) (e) Payroll costs of office and administrative staff (ESOP and ESPP expenses to be disclosed separately); All costs of maintaining the administration buildings; Bad debts; Professional costs; Amount paid to the auditor, whether as fees, expenses or otherwise for services rendered: i) as auditor; ii) as advisor or in any other capacity in respect of: taxation matters; 17 (f) (g) (h) (i) (iv) D. company law matters; in any other manner. Directors remuneration; Insurance expense; Utilities expense; Other administrative expenses. Depreciation and amortization of assets other than used in the production process and included in cost of sales. Other income This shall include (to be disclosed separately): (a) (b) (c) (d) (e) (f) (g) Interest income; Dividend income; Rental on investment properties; Increase (decrease) in carrying amounts of investments; Gains and losses on trading derivatives; Amounts withdrawn, as no longer required, from provisions created previously for meeting specific liabilities; Other miscellaneous income. E. Other expenses (i) These shall be classified as: (a) (b) (ii) Finance costs. Others. Finance costs shall include (to be disclosed separately): (a) (b) Interest expense. Dividends on preference shares classified as debt. (iii) F. G. Others shall include costs related to ‘other income’. Tax Expense- Others Others shall be specified separately. Any item for which the expense exceeds one percent of the revenues from operations of the Company or Rs.1,00,000 whichever is higher, shall be shown as a separate and distinct item under the appropriate head of expense in the notes to accounts and shall not be combined with any other item. Results from discontinued operations included in the statement of profit and loss i.e. income (loss) from activities and gain (loss) from disposal of assets/settlement of liabilities shall be disclosed separately in the notes to accounts. H. 18 IV. 13. A. GENERAL INSTRUCTION FOR THE PREPARATION OF CASH FLOW STATEMENT For the purpose of Part III – Cash Flow Statement Operating activities Operating activities are the principal revenue-producing activities of the company and other activities that are not investing or financing activities. B. Investing activities Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. C. Financing activities Financing activities are activities that result in changes in the size and composition of the owners’ capital (including preference share capital) and borrowings of the company. D. Profit from Operating Activities The amount of profit from operating activities shall be profit before tax and before non operating income and non-operating expenses. E. Cash and Cash equivalents (i) (ii) Cash shall include cash on hand and demand deposits with banks. Cash equivalents shall include short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. F. Foreign Exchange Gains and Losses (i) (ii) Unrealised gains and losses arising from changes in foreign exchange rates are to be disclosed separately. The effect of changes in exchange rates on cash and cash equivalents held in a foreign currency shall be disclosed as a separate part of the reconciliation of the changes in cash and cash equivalents during the period. 19 PART I –BALANCE SHEET Name of the Company……………………. Balance Sheet as at ……………………… Particulars I. (1) 1 CAPITAL AND LIABILITIES Shareholders’ funds (a) Share capital (b) Reserves and surplus (Rupees in…………) Figures as at Figures as at the end of the end of the current previous reporting reporting period period 2 3 (2) (3) Share application money Non-current liabilities (a) Long-term borrowings (b) Deferred tax liabilities (Net) (c) Long-term provisions Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions ASSETS (4) II. (1) TOTAL 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 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 (2) See accompanying notes to the financial statements 20 PART II – STATEMENT OF PROFIT AND LOSS Name of the Company……………………. Profit and loss statement for the year ended ……………………… Particulars Figures for the current reporting period xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx (xxx) (xxx) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx (Rupees in…………) I. II. III. IV Revenues from operations Cost of sales Gross profit (I – II) Operating expenses: (1) Selling and marketing expenses (2) Administrative expenses (3) Depreciation and amortization of assets (4) Foreign currency exchange gains/(losses), net Total operating expense Figures for the previous reportin g period xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx (xxx) (xxx) xxx V. (1) Results from operating activities (III – IV) (2) Gain on sale of long-term investments (3) Other income (4) Other expenses: (i) Finance costs (ii) Others Income before income tax Tax expense: (1) Current income tax (2) Deferred income tax (3) Others Profit for the period (VI – VII) Earnings per equity share: (1) Basic (2) Diluted VI. VII VIII. IX. See accompanying notes to the financial statements 21 PART III – CASH FLOW STATEMENT Name of the Company……………………. Cash flow statement for the year ended ……………………… Particulars 1 I. (1) CASH INFLOWS From Operating activities (a) Profit from operating activities Adjustments: Depreciation and amortization Amortization of stock compensation (Gain)/Loss on sale of fixed assets Assets written off Provision/ (Reversal) for doubtful debts and advances (b) Working capital changes: Decrease in inventories Decrease in trade receivables Decrease in short-term loans and advances Decrease in other current assets Increase in trade payables Increase in other current liabilities Increase in provisions Total of (1) Figures for the Figures fort the current previous reporting period reporting period 2 3 (Rupees in…………) (2) From Investing activities (a) Proceeds from sale of fixed assets (b) Proceeds from sale of investments (c) Realisation of long-term loans and advances from subsidiaries/ associates/ business ventures (d) Decrease in other long-term loans and advances (e) Decrease in other non-current assets (f) Dividend received (g) Interest received (h) Other income Total of (2) 22 (3) From Financing activities (a) Proceeds from issue of share capital (b) Share application money pending allotment (c) Proceeds from long-term borrowings (d) Proceeds from short-term borrowings Total of (3) Total cash inflows(1+2+3) CASH OUTFLOWS From Operating activities (a) Loss from operating activities Adjustments: Depreciation and amortization Amortization of stock compensation (Loss)/Gain on sale of fixed assets Assets written off (Provision)/Reversal for doubtful debts and advances (b) Working capital changes: Increase in inventories Increase in trade receivables Increase in short-term loans and advances Increase in other current assets Decrease in trade payables Decrease in other current liabilities Decrease in provisions (c) Direct taxes paid (Net of refunds) Total of (1) II. (1) (2) From Investing activities (a) Purchase of tangible assets/capital work-in-progress (b) Purchase of intangible assets/assets under development (c) Purchase of investments (d) Investment in subsidiaries/ associates/ business ventures (e) Payment of long-term loans and advances to subsidiaries/associates/ business ventures (f) Increase in other long-term loans and advances (g) Increase in other non-current assets Total of (2) 23 (3) From Financing activities (a) Repayment of long-term borrowings (b) Repayment of short-term borrowings (c) Dividends paid (including distribution tax) (d) Interest and other finance costs (e) Share issue expenses Total of (3) Total cash outflows (1+2+3) Net (decrease)/increase in cash and cash equivalents (I-II) Add: Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period III. IV. 24