Comparative Profit & loss A/c

The Various items of profit and Loss accounts may be presented side by side which will show the trend of
increasing or decreasing expenses or incomes. Such changes may be shown in absolute figures or in
percentage forms. While examining the comparative Statements for the figure of incomes and expenses
must be simultaneously examined. For example, if the sales of Current year show an increase of Rs.
100000 but if the expenses incurred for earning the extra sales are not considered, then the Comparison
becomes useless. It may happen that for achieving an increase in sale of Rs.100000, expenses of Rs.
1.10lakh might have been incurred.

Comparative Profit and Loss Account and Analysis of Profit & Loss
Statement.
Year End
No of Months
Gross Sales
Less: Excise
Net Sales
EXPENDITURE :
Increase/Decrease in Stock
Raw Materials Consumed
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Less: Pre-operative Expenses Capitalised
Total Expenditure
PBIDT (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation & Exceptional Items
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
PAT
Extra items
Appropriations
Dividend (%)
EPS
Book Value

INTERPRETATION:

Y201203
12
768870.6
3719.7
765150.9

Y201103
12
686488
3098.8
683389.2

(Indian Rupee .in Millions)

Y201003
Y200903
Y200803
12
12
12
602048.2
639477.1
601370.2
2185.4
3494.1
2887.4
599862.8
635983
598482.8

-1034.5
9575.9
3161.8
67960.5
173758.7
185691.8
3339.2
117556.4
0
560009.7
205141.2
205186.4
410327.7
348.3
409979.4
74959.2
335020.2
31405.5
366425.7
115196.5
251229.2
0
251229.2
195
29.4
131

0.6
7709.3
2856
67282.2
263378
182946.9
3112.6
97075.1
0
624360.6
59028.6
294153.1
353181.7
251.1
352930.6
76766.9
276163.7
0
276163.7
86923.7
189240
0
189240.3
175
22.1
113.3

-1181.7
7558.4
2603.8
57153.2
201152.4
177173.2
2990
12920
0
460369.4
139493.4
256921.2
396414.5
144.2
396270.3
146431.9
249838.4
0
249838.4
82162.9
167675.6
0
167675.7
330
78.4
404.1

-922.3
94766.5
2707.9
47374.5
141429.3
149175.8
6926.3
28885.9
0
470343.8
165639.2
194241.5
359880.7
1189.2
358691.6
119542
239149.6
657.7
239807.3
78544.2
161263.2
0
161264.1
320
75.4
365.1

-1141.3
72809.3
3171.5
60467.8
139346.8
115699.3
772.2
13819.5
0
404945.1
193537.7
157594
351131.7
589.6
350542.1
98196.2
252345.9
0
252345.9
85329.4
167016.5
0
167016.9
320
78.1
327

The profit and loss account of the company shows the overall income and expenditure, made by
the company in a particular time period. The difference between the debit and credit side of the
P&L account, shows the net profit or net loss.
Here, the profit and loss account of the company shows the satisfactory level but as compared to
previous year the expenses of the company is increases. Here the sales turnover is increase year
by year. The operating income is increasing slightly from year 2007 and it decreasing in 2011and
in current year it is increased. So, by this way the net profit of the company is increased as
compared to previous year.
While on the other side the expenditure shows the expenses meet by the company in a particular
period. The expenditure met by the company is highest in 2009, while in other year the
expenditure of the company are increases. The overall analysis of the expenditure side of the
company shows the average increase in expenses of the company.
After analyzing the income and expenditure side of the company, there is difference between
both sides which is known as the net profit/loss. The net profit of the company shows an overall
increase year by year. In 2007 it is Rs. 167016.9million and now it is rs. 251229.2 million.

Common Size Profit & loss A/c

The results of operation of a business for a period of time are presented in the income and statement from
the accounting points of view an income statement is subordinate to balance sheet is because the form
simple presents the details of the change in the retained earnings in balance sheet . However, it is a vital
resource of financial information. An income statement summarized the results of the business operation
during a specific period and shows them in the form or net income or net loss. By comparing the income
statement for successive period, it is possible to observe the progress of a business. A comparative
statement of the cost of good manufactured and Sold supplement these statements. The items of profit &
loss account may be presented which shows the trend of increasing or decreasing expenses or income.
Such changes may be shown in absolute figure or in percentage forms while examine the comparative
statement.
COMMON SIZE PROFIT & LOSS AND INTERPRETATION
Year End
No of Months
Gross Sales
Less: Excise
Net Sales
EXPENDITURE :
Increase/Decrease in Stock
Raw Materials Consumed
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Less: Pre-operative Expenses Capitalised
Total Expenditure
PBIDT (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation & Exceptional Items
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
PAT
Appropriations

Trend Analysis

Y201203
12
100
0.5
99.5

Y201103
12
100
0.5
99.5

Y201003
12
100
0.4
99.6

Y200903
12
100
0.5
99.5

Y200803
12
100
0.5
99.5

-0.1
1.2
0.4
8.8
22.6
24.2
0.4
15.3
0
72.8
26.7
26.7
53.4
0
53.3
9.7
43.6
4.1
47.7
15
32.7
32.7

0
1.1
0.4
9.8
38.4
26.6
0.5
14.1
0
90.9
8.6
42.8
51.4
0
51.4
11.2
40.2
0
40.2
12.7
27.6
27.6

-0.2
1.3
0.4
9.5
33.4
29.4
0.5
2.1
0
76.5
23.2
42.7
65.8
0
65.8
24.3
41.5
0
41.5
13.6
27.9
27.9

-0.1
14.8
0.4
7.4
22.1
23.3
1.1
4.5
0
73.6
25.9
30.4
56.3
0.2
56.1
18.7
37.4
0.1
37.5
12.3
25.2
25.2

-0.2
12.1
0.5
10.1
23.2
19.2
0.1
2.3
0
67.3
32.2
26.2
58.4
0.1
58.3
16.3
42
0
42
14.2
27.8
27.8

For studying a trend of various items of financial statements. Figures of a single year are not enough.
Comparative Figures of some more years are significant. Such comparative Figures may be either
absolute figures or may be presented in percentages, the method is known as Trend percentages Method
or Trend ratios Method.

Trend Analysis of Profit & loss Account& Interpretation

Year End
No of Months
Gross Sales
Less: Excise
Net Sales
EXPENDITURE :
Increase/Decrease in Stock
Raw Materials Consumed
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
General and Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses
Less: Pre-operative Expenses Capitalised
Total Expenditure
PBIDT (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation & Exceptional Items
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
PAT
Appropriations

Y201203
12
106.3
106.5
106.3

Y201103
12
104.5
102.4
104.5

Y201003
12
100.1
87
100.1

Y200903
12
106.3
121
106.3

Y200803
12
100
100
100

97.6
60.2
99.9
103
105.7
112.6
144.2
170.8
0
108.4
101.5
106.8
104
87.7
104
93.5
107.3
0
109.8
107.8
110.7
110.7

-7.9
47.3
96.6
103.6
123.6
116.5
159.1
191.5
0
115.5
67.3
123.1
100.2
75.2
100.2
92.1
103.1
0
103.1
100.6
104.3
104.3

101.8
32.2
90.6
97.2
120.1
123.7
196.8
96.7
0
106.6
84.9
127.7
106.3
49.5
106.3
122.1
99.5
0
99.5
98.1
100.2
100.2

80.8
130.2
85.4
78.3
101.5
128.9
897
209
0
116.2
85.6
123.3
102.5
201.7
102.3
121.7
94.8
0
95
92
96.6
96.6

100
100
100
100
100
100
100
100
0
100
100
100
100
100
100
100
100
0
100
100
100
100