Corporate Fin Mgt NDLM.PDF

TABLE 2: Profit and Loss Account of Shatabdi Industries Ltd.,
Rs. In Lakhs
Year ending

Common size
Year ending
31.03.1990 31.03.1991 31.03.1990 31.03.1991
A 1. Net Sales 51929 61527 100 100
B Cost of Goods Sold 35105 40002 68 65

2. Stocks Consumed 8809 9292 17 15


3. Wages and Salaries 5239 6182 10 10


4. Direct Manufacturing
   Expenses

21057 24527 41 40

C 5. General Expenses 6511 7540 13 12
D 6. Gross Profit 10313 13985 20 23
E 7. Interest 2293 2428 4 4
F 8. Pre-Depreciation
Operating Profit

8021 11558 15 19

G 9. Depreciation 3972 4222 8 7
H 10. Operating Profit 4049 7335 8 12
I 11.Non-Operating Surplus/
Deficit

169 277 0 0

J 12. Pre-tax Profit 4218 7612 8 12

K 13. Provision for Taxes 728 2170 1 4
L 14. Net Profit 3489 5442 7 9
M Profit Distributed 745 932 1 2

15. Dividend on Preferred
    Capital


16. Dividend on equity 745 932 1 2
    N 17. Profit Retained 2744 4510 5 7

4.4. The Profit and Loss Account shows the revenues earned and the costs

incurred by the company during the years ending 31.03.1990 and

31.03.1991. The costs are classified into major heads. The Gross Profit as

defined by BSE, commonly known as Earnings Before Interest, Depreciation

and Taxes (EBIDT), is arrived at by subtracting the Cost of Goods Sold and

the General Expenses from Sales Revenues. The Operating Profit as defined

by BSE more commonly known as Profit Before Tax (PBT) is arrived at by

subtracting Interest and Depreciation Expenses from the Gross Profit. The

Net Profit or Profit After Tax (PAT) is arrived at by subtracting the Taxes

Paid from the total of Operating and Non-operating Profits. The P&L

Statement also shows the details of distribution of net profits between

dividends and retention.