1 1.

Format of Presentation

2 2. Vertical Income Statement

3 3. Terms

Notes for reference

Prof. Avanti Sathe
Format of Presentation
 Format of Presentation

Vertical Financial
Statements

Format A Format B

Statutory Format
Simple Vertical
as per Schedule
Form suitable for
III of Companies
Analysis
Act, 2013
Vertical Income Statement
 Vertical Income Statement for the year ended ______

Particulars Amount
Net Sales XX
Less: COGS (XX)
Gross Profit XX

Add: Operating Income XX

Less: Operating Expenses (XX)

EBDIT XX
Less: Depreciation (XX)
EBIT
XX
Add: Non-operating Income
XX
Less: Non-operating Expenses
(XX)
PBT XX
Less: Tax (XX)
PAT
XX
Terms

Terms
Net Sales
Cost of Gods Sold (COGS)
Operating Income
Operating Expenses
Non-operating Income
Non-operating Expenses
Terms
Includes
Gross Sales – Returns and Allowances
Opening Stock + Purchases + Direct Expenses + Direct Wages +
Depreciation on Machinery + Depreciation on Factory Building –
Closing Stock
Discount on Purchases + Discount Received + Recovery of Bad Debts
Office and Administrative Expenses + Selling and Distribution Expenses
+ Finance Costs
Profit on Sale of Assets/ Investments + Interest on Investments
Loss on Sale of Assets/ Investments

Gross Profit Net Sales – COGS

EBIT Gross Profit + Operating income – Operating expenses
PBT EBIT + Non- operating income - Non- operating expenses
PAT PBT – Provision for Tax
Profit Available for Eq.Share PAT – Preference Dividend
holders
 Terms

Machinery
Factory

Fixed Assets
Factory Building

Office Furniture
Office and Admin
Office Building

Selling and Vehicle for

Distribution Distribution