1

Format of Statement of Profit and Loss

DefinitionA financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement".

STATEMENT OF PROFIT & LOSS

ParticularsNote No.

Figures as at the end of the current reporting period

Figures as at the end of the previous reporting period

1)Revenue from Operations

2)Other Income

3)Total Revenue ( 1 + 2)

4)Expenses

Cost of Materials ConsumedPurchases of Stock in TradeChanges in inventories Employee Benefit expenseFinance CostsDepreciation and amortization expenseOther expenses

5)Profit Before Exceptional and extraordinary items and tax(3-4)

6)Exceptional Items

STATEMENT OF PROFIT & LOSS

ParticularsNote No.

Figures as at the end of the current reporting period

Figures as at the end of the previous reporting period

7)Profit Before extraordinary items and tax(5-6)

8)Extraordinary Items

9)Profit Before Tax(7-8)

10)Tax Expense Current Tax Deferred Tax

11)Profit (loss) for the period from continuing operations(9-10)

12)Profit (loss) from discontinuing operations

13)Tax expense of discontinuing operations

14)Profit(loss) from discontinuing operations (after tax)

15)Profit (loss) for the period (11+14)

16)Earnings per equity shareBasicDiluted

5

HYPERLINKS

6

REVENUE FROM OPERATIONS

Revenue from operations of a company other than a finance company• Sale of products• Sale of services• Other operating revenues• Less: Excise duty

Revenue from operations of a finance company• Interest• Other financial services

Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable.

OTHER INCOME

Interest Income (other than a finance company) i) Dividend from Subsidiary companies

ii) Dividend Net Gain/Loss on sale of investments. Other non-operating income (net of expense directly attributable

to such income)

COST OF MATERIALS CONSUMED

Applicable for manufacturing companies Includes Raw materials, packing materials

and intermediaries consumed

• Includes those purchased for the purpose of resalePURCHASE OF

STOCK IN TRADE

• Separate disclosures w.r.t finished goods, work in progress and stock in trade.CHANGES IN

INVENTORIES

EMPLOYEE BENEFIT

EXPENSES

Salaries & Wages

Contribution to provident &

other funds

Staff welfare expenses such

as canteen expenses

FINANCE COSTS

Interest expenses

Other borrowing

costs

Net gain/loss on foreign currency

transactions and

translation

12

EXCEPTIONAL ITEMS

13

When items of income and expense, even though related to ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise, such items are known as exceptional items. Such items include:

Write-downs of inventories to net realisable value or of fixed assets to recoverable amount

Restructurings of the activities of the enterprise Disposals of items of fixed assets Disposals of long term investments Legislative changes having retrospective application

EXTRAORDINARY ITEMS

When an event or transaction is clearly distinct from the ordinary activities of the enterprise it is called extraordinary item.

For example, losses sustained as a result of an earthquake is an extraordinary item.

14

BASIC EARNING PER SHARE

NET PROFIT NO. OF EQUITY SHARES

15

DILUTED EARNINGS PER SHARE

It is calculated when there are convertible preference shares, convertible debentures, options, warrants, etc. in the capital structure of a company.

Diluted earnings per share focuses how much dilution would take place in Earning Per Share(E.P.S.) if all these convertible instruments are immediately converted into equity shares.

= NET PROFIT

CURRENT EQUITY SHARES +CONVERTIBLE BONDS16