PART II – STATEMENT OF PROFIT AND LOSS

Name of the Company…………………….

Profit and loss statement for the year ended ………………………

(Rupees in…………)

Explanation-

 (A) In respect of a company other than a finance company revenue from operations

shall disclose separately in the notes revenue from—

(a) Sale of products;

(b) Sale of services;

(c) Other operating revenues;

Less:

(d) Excise duty.

(B) In respect of a finance company, revenue from operations shall include revenue

from—

(a) Interest; and

(b) Other financial services.

Revenue under each of the above heads shall be disclosed separately by way of notes

to accounts to the extent applicable.

3. Finance Costs

Finance costs shall be classified as:

(a) Interest expense;

(b) Other borrowing costs;

(c) Applicable net gain/loss on foreign currency transactions and translation.

4. Other income

Other income shall be classified as:

(a) Interest Income (in case of a company other than a finance company);

(b) Dividend Income;

(c) Net gain/loss on sale of investments;

(d) Other non-operating income (net of expenses directly attributable

to such income).

A Company shall disclose by way of notes additional information regarding aggregate

expenditure and income on the following items:—

(i) (a) Employee Benefits Expense [showing separately

 (i) salaries and wages,

(ii) contribution to provident and other funds,

 (iii) expense on Employee Stock Option

Scheme (ESOP) and Employee Stock Purchase Plan (ESPP),

 (iv) staff welfare expenses].

(b) Depreciation and amortisation expense;

(c) Any item of income or expenditure which exceeds one per cent. of the revenue

from operations or Rs.1,00,000, whichever is higher;

(d) Interest Income;

(e) Interest expense;

(f) Dividend income;

(g) Net gain/loss on sale of investments;

(h) Adjustments to the carrying amount of investments;

(i) Net gain or loss on foreign currency transaction and translation (other than

considered as finance cost);

(j) Payments to the auditor as

 (a) auditor;

(b) for taxation matters;

(c) for company

       law matters;

 (d) for management services;

(e) for other services; and

(f) for reimbursement of expenses

Working Capital of a company = Current Assets – Current Liabilities

Capital = Total Assets – outside liabilities