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
INCOME
a) Revenue From operations
b) Other Income
Total Income
EXPENSES
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)
(1)Basic
(2) Diluted

Details to be disclosed in the notes

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

iii. Other operating revenues

Finance costs will be distributed in –
Interest
Dividend on redeemable preference shares

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

Other borrowing costs (if any)
Other Income will be distributed in –
Interest Income,
Dividend Income, and

iii. Other non-operating income

Other Comprehensive Income shall be classified into –

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

Changes in revaluation surplus
Remeasurements of the defined benefit plans
Equity Instruments through Other Comprehensive Income
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

Others

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

Employees benefit expense
Salaries and wages,
Contribution to provident and other funds,

iii. Share-based payments to employees

staff welfare expenses
Depreciation and amortisation expense,
Interest Income,
Interest Expense,
Dividend Income,
Net gain or loss on sale of investments,
Net gain or loss on foreign currency transaction and translation (other than considered as finance cost),
Payment to the auditor as :
Auditor
For taxation matters

iii. For company law matters

For other services
For reimbursement of expenses
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