Cinemugam (Kollywood)

Minimum Information on the face of Statement of Profit and Loss On the face of statement of profit and loss,  'revenue from operations' and 'other income'  are to be presented; besides, 'expenses' are to be presented as under : Cost of materials consumed Purchases of stock-in-trade Changes in inventories of finished goods, work-in-progress and stock-in-trade Employee benefits expenses Finance costs Depreciation and amortisation expenses Other expenses Total expenses Separate line items on the face of statement of profit and loss are required to present : Profit before exceptional and extraordinary items and tax Exceptional items Profit before extraordinary items and tax Extraordinary items Profit before tax Tax expense : Current tax Deferred tax If there is a discontinuing operation, further separate line items are required to be presented on the face of the Statement as follows : Profit/(loss) for the period from continuing oper

CONTINGENT LIABILITIES AND COMMITMENTS AND OTHER NOTES The revised Schedule makes a clear distinction between contingent liabilities and commitments. Contingent Liabilities It has to be sub-classified as : Claims against the company not acknowledged as debt Guarantees (the separate disclosures required by existing Schedule VI regarding guarantees given on behalf of directors / other officers are not required, though some of these would nevertheless be disclosed under AS 18) Other money for which the company is contingently liable. For example : Arrears of preference dividend and Bills under discount. Commitments These include : 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 (specifying nature).

The revised Schedule does not include the requirement to separately disclose bank balances with scheduled banks and other banks. 10.14.16 Short Term Loans and Advances This has to be sub-classified in the notes as : Loans and advances to related parties (giving details thereof) Others (specifying nature) It may be argued that 'loans' and 'advances' are of totally different nature and should not have been clubbed.