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    FA Assignment#2 Profit and Loss Statement Company Name: Deepak Nitrite

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    Bhakta
    This document summarizes the profit and loss statement of Deepak Nitrite for the last two years. It shows that in 2018-19, revenue was Rs. 2715.05 crores and expenses plus dividends were Rs. 2790.55 crores, resulting in retained earnings of Rs. 265.14 crores, a 28% increase over the previous year. Sales of finished goods accounted for over 98% of revenue. Cost of materials and employee benefits were the largest expenses. An interesting item is that tax expenses increased substantially from 2018 to 2019, possibly due to changes in tax policy.

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    FA Assignment#2 Profit and Loss Statement Company Name: Deepak Nitrite

    Uploaded by

    Bhakta
    20 views1 page
    This document summarizes the profit and loss statement of Deepak Nitrite for the last two years. It shows that in 2018-19, revenue was Rs. 2715.05 crores and expenses plus dividends were Rs. 2790.55 crores, resulting in retained earnings of Rs. 265.14 crores, a 28% increase over the previous year. Sales of finished goods accounted for over 98% of revenue. Cost of materials and employee benefits were the largest expenses. An interesting item is that tax expenses increased substantially from 2018 to 2019, possibly due to changes in tax policy.

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    FA Assignment2-Deepak Nitrite

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    This document summarizes the profit and loss statement of Deepak Nitrite for the last two years. It shows that in 2018-19, revenue was Rs. 2715.05 crores and expenses plus dividends were Rs. 2790.55 crores, resulting in retained earnings of Rs. 265.14 crores, a 28% increase over the previous year. Sales of finished goods accounted for over 98% of revenue. Cost of materials and employee benefits were the largest expenses. An interesting item is that tax expenses increased substantially from 2018 to 2019, possibly due to changes in tax policy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    20 views1 page

    FA Assignment#2 Profit and Loss Statement Company Name: Deepak Nitrite

    Uploaded by

    Bhakta
    This document summarizes the profit and loss statement of Deepak Nitrite for the last two years. It shows that in 2018-19, revenue was Rs. 2715.05 crores and expenses plus dividends were Rs. 2790.55 crores, resulting in retained earnings of Rs. 265.14 crores, a 28% increase over the previous year. Sales of finished goods accounted for over 98% of revenue. Cost of materials and employee benefits were the largest expenses. An interesting item is that tax expenses increased substantially from 2018 to 2019, possibly due to changes in tax policy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Bhakta Ranjan Deka EPGP-12B-038

    FA Assignment#2 Profit and Loss Statement


    Company Name: Deepak Nitrite
    1. Summarized income statement equation for last two years:
    Retained Earnings during a period(X) = Revenue(R) – Expenses(E) + Dividends(D)
            *All figures are in Crores
    Particulars Revenue [R] Expense [E] Dividends [D] Retained Earnings(X)= [R]-([E]+[D])
    As on 31st Mar 2019 2715.05 2620.73 170.82 265.14
    As on 31st Mar 2018 1688.48 1577.62 79.88 190.74

    Comment: As per historical earning statement, Deepak Nitrite is doing well and retained earnings is increased by
    28% from 2017 -18 to 2018-19. Changes in Inventories of Finished Goods and Work-in-Progress showing negative as
    on 31st Mar 2019, which indicates that end of the year inventory is high which implies high on Production.

    Five biggest items as part of the “Sales/ Revenue/ Income” and the “Expenses/Dividends/Deductions”

          *All figures are in Crores


    Sales/ Revenue/ Income Value % Expenses/Dividends/Deductions Value %
    Sales of Product (Finished and Trade Cost of Materials Consumed as on
    2665.49 98.18 1027.85 64.97
    Goods) as on 31st Mar 2019 31st Mar 2019

    Sales of Service and Other Operating Employee Benefit Expense as on


    34.43 1.26 158.6 10.03
    Revenue as on 31st Mar 2019 31st Mar 2019

    Power and Fuel expense as on 31st


    Other Income as on 31st Mar 2019 15.12 0.56 140.94 8.91
    Mar 2019
    Sales of Product (Finished and Trade Cost of Materials Consumed as on
    1626.58 96.33 839.94 61.37
    Goods) as on 31st Mar 2018 31st Mar 2019

    Sales of Service and Other Operating Employee Benefit Expense as on


    49.6 2.94 132.06 9.65
    Revenue as on 31st Mar 2018 31st Mar 2019

    Power and Fuel expense as on 31st


    Other Income as on 31st Mar 2018 12.4 0.73 119.88 8.76
    Mar 2019

    Comments: Other Income reduced in 2019 but revenue got increase by 2% due to sales of product. Cost of material
    consumption is 1027.85 Cr compared to 839.94 Cr which means increase in raw material inventory for finished
    goods. Excise Duty on Sale of Goods for 2019 is Nil where as in 2018, it was 24.25Cr. This is may be due to GST.
    Changes in Inventories of Finished Goods and WIP for 2019 is (-)153.59 Cr means Deepak nitrite consume
    more inventories as compared to beginning of the year. Other expense is reduced to 0.83 Cr from 2.63 Cr in
    2019, indicates company able to reduce extra cost in production.

    2. 1 items missing and 1 items interesting

    Missing Items: No items mentioned like (+/-) Extra Ordinary Return, (+/-) exceptional return. Excise duty of
    Sales goods is not mentioned in 2019 may be due to GST but same is not mention as well.

    Interesting items: Tax expense raised from 79.02 Cr in Mar 2018 to 173.66 Cr in Mar 2019. Raise of this
    expense may be due to change in Tax policy. Changes in Inventories of Finished Goods, Work-in-Progress and
    Traded Goods as on 31st Mar 2019 is (-)153.59 Cr, which is good sign for the business as its production is
    increasing.

    Page 1

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