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Schedules Under Companies Act, 2013- An analysis
Schedules
underCompanies Act,2013-An analysis
Companies
Act,1956
|
Companies
Act,2013
|
16 Schedules
|
7
Schedules
|
As can be seen from the above ,Companies Act has lesser schedules; the reason being
the Act does not have the following schedules, which found a place
in Companies Act 1956 :
Schedule
of CA,1956
|
Particulars
|
Changes
in Companies Act,2013
|
IA
|
List of Relatives
|
List of 8 Relatives are
mentioned in the Companies (specification of definition
details)rules,2014corresponding to sec.2(77)(iii)
|
II
|
Matters to be Specified in Prospectus and
reports to be set out therein
|
Details of matters to be specified
in Prospectus are mentioned in the Companies
(Prospectus and Allotment of Securities) Rules, 2014. corresponding
to Sec.26(1)
|
III
|
Form of Statement in Lieu
of Prospectus (SLP)
|
Companies Act,2013 has done away
with the concept of SLP
|
IV
|
Form of Statement in Lieu
of Prospectus (SLP) to be filed by private company on
becoming public company.
|
Companies Act,2013 has done away
with the concept of SLP
|
V
|
Annual Return Form
|
New Form for filing of Annual
Return (Form MGT-7 along with Form MGT-8)
|
VII
|
Restrictions on powers of Managing
Agents, Secretaries and Treasurers
|
Redundant after abolition of
Managing Agents, Secretaries and Treasurers
|
VIII
|
Declaration to be made by Managing
Agents, Secretaries and Treasurers
|
Redundant after abolition of
Managing Agents, Secretaries and Treasurers
|
IX
|
Form of Proxy
|
New Form for appointment of
Proxy is Form MGT-11
|
X
|
Table of fees to be paid to ROC
|
Fees details are mentioned in
the Companies(Registration of offices and fees)Rules,2014.
|
XI
|
Forms in which Sec.539 to 544
of the 1956 Act are to apply in caseswhere application made under
Sec.397/398.
|
Matters are dealt with section 26
of the Companies Act,2013.
|
XII
|
Enactments Repealed by the 1956
Act
|
Sec.465 of the Companies
Act,2013 repeals the 1956 act except provision of Part IXA of the 1956 act relating to Producer
Companies.
|
XV
|
List of Industries
|
Omitted by the Companies
Act,2013.
|
The Companies
Act,2013 has retained only 4 of 16 schedules of
the Companies Act,1956 with changes and introduces 3 new schedules to
cover new concepts of Independent Directors, CSR and
Infrastructural Projects.
The 4 modified and 3 new schedules are
summarized below;
Particulars
|
Schedules
|
Remarks
|
||
CA 1956
|
CA 2013
|
Companies Act,1956
|
Companies Act,2013
|
|
Forms of MOA &AOA-Table F of
the 1956 Act
|
I
|
I (Table A to J)
|
Form of statement to be published
by limited Banking Cos, Insurance Cos,etc.,.
|
Formats modified to accommodate
new concepts of OPC, e-voting,etc.,.
|
Useful lives to Compute
Depreciation
|
XIV
|
II
|
It deals with only depreciation of
tangible assets.It deals with the Rate of Depreciation of tangible assets.
|
It deals withamortization of
Intangible assets also.
It deals with the useful lives of tangible assets and does not prescribe depreciation rates. |
General Instructions for
Preparation of B/S &Statement of P&L of a Company
|
VI
|
III
|
Form of B/S
|
Same as Revised Sch.VI except that
Sch.III contains instructions regarding consolidated accounts as preparation
of consolidated accounts made mandatory by the 2013 act.
|
Code of Independent Directors(IDs)
|
——-
|
IV
|
—–
|
IDs is new concept introduced by
the 2013 act. Sch.IV is a new schedule containing CoC for IDs.
|
Conditions to be fulfilled
for the appointment of a MD/WTD or a Mgr without the approval of CG
|
XIII
|
V
|
—–
|
—–
|
Infrastructural Projects/Facility
|
——-
|
VI
|
—–
|
New Schedule introduced
by the Companies Act,2013
|
Activities which may be included
by companies in their CSRPolices
|
——-
|
VII
|
—–
|
MCA has notified the Sec.135 &
corresponding rules & Sch.VII on 27/02/14 to comply with mandatory CSR spends for specified companies.
|
Useful lives to Compute
Depreciation: -–Schedule-II.{(Sec.123(2)}
Depreciation:
Depreciation
is the systematic allocation of the depreciable amount of an asset over its
useful life.
Depreciable amount of an asset =
Cost of an asset/other amount substituted for cost
(-)
Residual
value
|
Useful life:
‘Useful
life’ may be considered as a period over which an asset is available for use or
as the number of production or similar units expected to be obtained from the
asset by the entity.
The useful life of an
asset shall not be longer than the useful life specified in Part ‘C’ and the
residual value of an asset shall not be more than 5% of the original cost of
the asset Provided that where a company uses a useful life or residual value
of the asset which is different from the above limits, justification for the
difference shall be disclosed in its financial statement.
|
For intangible assets, the provisions of the accounting
standards applicable for the time being in force shall apply, except
in case of intangible assets (Toll Roads) created under ‘Build, Operate and
Transfer’, ‘Build, Own, Operate and Transfer’ or any other form of public
private partnership route in case of road projects.
Amortization in such cases may be done as follows:-
(a) Mode of amortisation
Amortisation Rate
= Amortisation Amount x 100 ÷ Cost of
Intangible Assets (A)
|
|
Amortisation Amount =
Actual Revenue for the year
(B) x Cost of Intangible Assets (A) ÷ Projected
Revenue from Intangible Asset (till the end of the concession period) (C)
|
|
Meaning of particulars are
as follows- Cost of Intangible Assets (A)
=
|
Cost incurred by the company
in accordance with the accounting standards.
|
Actual Revenue for the year (B)
=
|
Actual revenue (Toll Charges)
received during the accounting year.
|
Projected Revenue from Intangible
Asset
(C)
=
|
Total projected revenue from the
Intangible Assets as provided to
the project lender at the time of financial closure / agreement.
|
The
amortisation amount or rate should ensure that the whole of the cost of the
intangible asset is amortised over the concession period.
Revenue
shall be reviewed at the end of each financial year and projected revenue shall
be adjusted to reflect such changes, if any, in the estimates as will lead to
the actual collection at the end of the concession period.
Applicability
The Companies
Act, 2013 states that Schedule II will be applicable as follows:
o
For a prescribed class of companies, whose financial
statements are required to comply with AS prescribed under the 2013 Act, the
useful lives should normally be in accordance with theSchedule. However, if a
prescribed company uses a different useful life, it should disclose a
justification for doing so;
o
For Government companies,useful life or
residual value of any specified asset, as notified for accounting purposes by a
Regulatory Authority constituted under an Act of parliament or by the Central
Government shall be applied in calculating the depreciation to be provided for such asset
irrespective of the requirements of this Schedule.
o
For other Companies, the useful life
of an asset shall not be longer than the useful life and the residual value
shall not be higher than that prescribed in Part C.
Other Points:
1.
The following information shall be disclosed in the accounts namely;
o
Depreciation
method used &
o
Useful
lives of the assets for computing depreciation, if they are different from the
life specified in the schedule.
2.
Factory Buildings does not include offices, godowns, staff quarters.
3. During any financial year, if any
addition has been made to any asset or where any asset has been sold,
discarded, demolished or destroyed, the depreciation on such assets shall be
calculated on a pro rata basis from the date of such
addition or, as the case may be, up to the date on which such asset
has been sold, discarded, demolished or destroyed.
4.
Useful life specified in Part C of the Schedule is for whole of the
asset. Where cost of a part of the asset is significant to total cost of the
asset and useful life of that part is different from the useful life of the
remaining asset, useful life of that significant part shall be determined
separately.
5. Transitional Provisions:
From the
date this Schedule comes into effect, the carrying amount of the
asset as on that date—
(a)
shall be depreciated over the remaining useful life of the asset as per
this Schedule;
(b)
after retaining the residual value, shall be recognised in the opening balance
of retained earnings where the remaining useful life of an asset is NIL.
6. ‘‘Continuous process plant’’ means
a plant which is required and designed to operate for 24 hours a day.
Schedule XIV Vs Schedule II :
.Companies Act,1956 – Sch.XIV
|
Companies Act,2013- Sch.II
|
It deals with only
depreciation of tangible assets.
|
It deals with the amortization of
intangible assets also.
|
It contained rates of depreciation
of tangible assets.
|
It contains only useful lives of
tangible assets and does not prescribe depreciation rates.
|
100% Depreciation shall be charged
on assets whose actual cost does not exceed Rs.5,000/-
|
Omits the provision for 100% Depreciation on immaterial items i.e, assets
whose actual cost does not exceed Rs.5,000/-
|
Extra Shift Depreciation (ESD) not
applicable to
o Items marked NESD in the schedule
o Specified items of P&M to which general rate of
Depreciation was applicable.
|
Extra Shift Depreciation (ESD) not
applicable to
o Items marked NESD in the schedule.
o ESD will apply to P&M items subject to general rate
i.e., useful life of 15 years.
|
ESD for double shift and triple
shift was to be made separately in proportion with No.of days for which
concern worked second shift or triple shift bears to normal No.of working
days in a year.
For Seasonal factory: Greater of actuals and 180 days.Other cases: Greater
of actual and 240 days.
|
ESD working simplified by the 2013
act-
For Double shift:50% more depreciation for that period for which asset used. For Triple shift:100% more depreciation for that period for which asset used. |
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