Question

Following is the statement of Profit and Loss of DD Ltd. For the year ended 31-3-2015.

Particulars	Note No.	31-3-2015 (Rs.)	31-3-2014 (Rs.)
Revenue from operations Other Income Employee benefit – expenses 60% of total revenue Other expenses 10% of employee benefit expenses Tax Rate		75,00,000 1,50,000         40%	34,00,000 3,00,000         50%

The motto of DD Ltd. is to produce and supply green energy in the rural areas of India. It has also taken up a project of constructing a road that will pass through five villages so that these villages could be connected to the nearby town. It will use the local resources and employ local people for construction of the road.

You are required to prepare a comparative statement of Profit and Loss of DD Ltd. from the given statement of Profit and Loss. Also identify any two values that the company wishes to convey to the society.

Answer 1

Comparative Statement of Profit and Loss

for the year ended March 31,2014 and 2015

	Particulars	Note No	31st March 2014 (Rs.)	31st March 2015 (Rs.)	Absolute Change (Rs.)	Percentage Change (Rs.)
1.	Revenue from operations		34,00,000	75,00,000	41,00,000	120.59
2.	Other Income		3,00,000	1,50,000	(1,50,000)	(50.00)
3.	Total Revenue (1+2)		37,00,000	76,50,000	39,50,000	106.76
4.	Expenses:- Employee Benefit Expenses  Other Expenses
	Total Expenses		22,20,000	45,90,000	23,70,000	106.76
5.	Profit before Tax (3-4)           Less: Income Tax		14,80,000 7,40,000	30,60,000 12,24,000	15,80,000 4,84,000	106.76 65.41
6.	Profit after Tax		7,40,000	18,36,000	10,96,000	148.11

The values conveyed by Company are

(i) Rural Development

(ii) Employment opportunities to plenty.