Prepare the format of the statement of profit and loss and explain its items up to the ascertainment of profit before tax.


Kishore V, SME and ACW at Edumarz

Companies have to prepare the Profit & Loss Account as per Schedule III of the Companies Act, 2013. 

Following is the format mentioned in Schedule III – STATEMENT OF PROFIT & LOSS 

Name of the Company…………. 

Statement of Profit and Loss for the period ended…………….  


Note No.

Figures for the current reporting period

Figures for the previous reporting period





a) Revenue From operations




b) Other Income




Total Income








a) Cost of materials consumed


b) Purchases of Stock-in-Trade




c)   Changes in inventories of finished goods, Stock-in -Trade and work-in-progress




d) Employee benefits expense




e) Finance costs




f)    Depreciation and amortisation expenses




g) Other expenses




Total Expenses




Profit/(loss) before exceptional items and tax




Exceptional Items




Profit/ (loss) before tax




Tax Expense:




Current tax


Deferred tax


Profit (Loss) for the period from continuing operations




Profit/(loss) from discontinued operations




Tax expenses of discontinued operations




Profit/(loss) from Discontinued operations (after tax)




Profit/(loss) for the period




Other Comprehensive Income




A. (i) Items that will not be reclassified to profit or loss


(ii) Income tax relating to items that will not be reclassified  to profit or loss


B. (i) Items that will be reclassified to profit or loss


(ii)  income tax relating to items that will be reclassified to profit or loss


Total Comprehensive Income for the period Comprising Profit (Loss) and   other comprehensive income for the period )




Earnings per equity share (for continuing operation):




(1) Basic


(2) Diluted


Earnings per equity share (for discontinued operation):




(1) Basic


(2) Diluted


Earning per equity share (for discontinued & continuing operation)








(2) Diluted




Details to be disclosed in the notes

  1. Amount of “Revenue from operations” will be divided in –
  2. Sale of products (including excise duty)
  3. Sale of services

iii. Other operating revenues

  1. Finance costs will be distributed in –
  2. Interest
  3. Dividend on redeemable preference shares

iii. Exchange Differences regarded as an adjustment to borrowing costs, and

  1. Other borrowing costs (if any)
  2. Other Income will be distributed in –
  3. Interest Income,
  4. Dividend Income, and

iii. Other non-operating income

  1. Other Comprehensive Income shall be classified into –

    i.Items that will  not be reclassified to profit or loss

  1. Changes in revaluation surplus
  2. Remeasurements of the defined benefit plans
  3. Equity Instruments through Other Comprehensive Income
  4. Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss

Share of other comprehensive income in associates and joint ventures, to the extent not to be classified into profit or loss, and


  1. Items that will be reclassified to profit or loss
  • Exchange differences in translating the financial statements of a foreign operation;
  • Debt instruments through Other Comprehensive Income;
  • The effective portion of gains and loss on hedging instruments in a cash flow hedge;
  • Share of other comprehensive income in Associates and Joint Ventures, to the extent to be classified into profit or loss; and
  • Others
  1. Employees benefit expense
  2. Salaries and wages,
  3. Contribution to provident and other funds,

iii. Share-based payments to employees

  1. staff welfare expenses
  2. Depreciation and amortisation expense,
  3. Interest Income, 
  4. Interest Expense, 
  5. Dividend Income, 
  6. Net gain or loss on sale of investments,
  7. Net gain or loss on foreign currency transaction and translation (other than considered as finance cost), 
  8. Payment to the auditor as :
  9. Auditor
  10. For taxation matters

iii. For company law matters

  1. For other services
  2. For reimbursement of expenses
  3. Amount of expenses incurred on corporate social responsibility activities, n. Details of items of exceptional nature. Any other expense or income which exceeds higher of Rs. 10,00,000 or 1% of revenue from operations

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