Chapter 4: Statement of Profit and Loss

Solution to problems and cases

1. Expense recognition in statement of profit and loss :

The impact of the following transaction on the Statement of Profit & Loss for the
financial year 2016-17:
a. The interest for the period 1st July 2016 to 31st March 2017 will be accounted for
in the Statement of Profit & Loss. Accordingly interest amounting to `9 Crores
will be charged to the Statement of Profit & Loss using accrual basis of
accounting.
b. Stationary consumed = Opening Inventory + Stationary Purchased – Closing
Inventory. Accordingly `13.5 million will be debited to the Profit and Loss A/c as
stationary consumed. (`2.3 million + `13 million – `1.8 million).
c. Employee Cost = Paid during the year – advances + salary outstanding +
provision for retirement benefits; = `134.75 million - `2 million + `15.35 million
+ `2.35 million = `150.45 Million

2. a) Operating Income
b) Other Income
c) Other Operating Income
d) Other Operating Income
e) Other Income
f) Exceptional Income
g) Not an Income
h) Exceptional Income
i) Other Operating Income
j) Other Income
3. Classification of Expenses
a) Employees Cost
b) Finance Cost
c) Other Expenses
d) Purchase of Stock in Trade
e) Other Expenses
f) Depreciation and Amortisation
g) Finance Cost
h) Employees Cost
i) Material Consumed
j) Other Expenses
k) Provision for Income Tax
l) Other Expenses

4. Various measures of profits:

Pre –tax profit (PBT) = PAT + Provision for Tax = `743 + `131 = `874 Crores.
Operating Profit (EBIT) = PBT + Interest and Finance Charges = `874 + `160 = `1034
Crores
Cash Operating Profit (EBITDA) = EBIT + Depreciation = `1034 + 130 = `1164 Crores

5. Preparation of Profit & Loss Account: The Profit & Loss Account for the Jack
Paints Limited for the year 2016-17 is given below:

Profit & Loss Account for the year 2016-17

Particulars ` Crores

Gross Sales 5528.82  

Less: Excise Duty 403.74  

Net Sales   5125.08

Other Income    

Interest Earned 131.3  

Dividend Received 1.85  

Profit on Sales of fixed assets 10.7 143.85

Total Income   5268.93

Expenses    

Material Consumed 2840.24  

Employee Cost 280.84  

Manufacturing Expenses 718.73  

Administrative and Marketing Expenses 295.27 4135.08

Earnings Before Interest, Tax, Depreciation and

Amortization   1133.85

Depreciation and Amortization   60.74

Earnings Before Interest and Tax   1073.11

Interest on borrowed funds   13.76

Profit Before Tax and Extra Ordinary Items   1059.35

Extra-Ordinary Income   25.46

Profit Before Tax   1084.81

Provisions for Tax    

- for Current Year 336.46  

- for earlier year written back -6.29 330.17

Profit After Tax   754.64
     

6. Computing Earnings Per Share:

Basic Earnings Per Share = PAT / Number of Equity Shares = `754.64 Crore / `9.6 Crore
= `78.61

Diluted Earnings Per Share = PAT / Number of Existing Shares + Number of Dilutive
Shares = `754.64 Crore / (`9.6 + 0.58) Crore = `74.13

7.

Profit and Loss Statement of Solid Steels Limited

For the year ended 31st March 2017  
     
Income    
Revenue from Operations    
Sale of Steel 13,120  
Other Operating Income 235 13
 ,355
Other Income    
Interest Earned 180  

Dividend Received 23 203

     
13
Total Income   ,558
     
Expenses    
Raw Material Consumed    
Opening Stock 554  
+ Raw Material Purchased 8,332  
8
- Closing Stock 662 ,224

Purchase of Stock in Trade   233

Change in Stock    
Opening Stock    
Work in Progress 328  
Finished Goods 205  
Less: Closing Stock    
Work in Progress 432  

Finished Goods 156 (55)

     
Employee Benefit Expenses    
Salary & Wages 1,120  
Contribution to Employees Funds 212  
1
Training & Development Cost 34 ,366
     
Financial Cost    
Interest 191  

Bank Charges 14 205

     
Depreciation and Amortisation    
Depreciation 331  

Amortisation 12 343
     
Other Expenses    
Freight Outwards 356  
 Handling Cost 130  
Loss on Sales of Assets 12  
Power & Fuel 462  
Provisions and Write offs 17  
Repair & Maintenance 168  
Stores and Spares 518  
2
Other Expenses 809 ,472
     
12
Total Expenses   ,788
Profit Before Tax and Exceptional
Items   770

Exceptional Item   6

Profit Before Tax   764

Tax Expenses   258

Profit For the Period   506

     
Other Comprehensive Income    
Items that will not be classified to
Statement of Profit and Loss (20)  
Tax on Items that will not be
classified to Statement of Profit &
Loss 6 (14)
Items that will be classified to
Statement of Profit and Loss 80  

Tax on Items that will be classified to

Statement of Profit & Loss (22) 58

    44
     
Total Comprehensive Income for the
year   550
     

8. Preparation of Profit & Loss Statement from a trial balance:

Profit & Loss Statement of Star Limited for the year
ended 31st March 2017

  Amount (` Million) Amount (` Million)

Income    
Operating Income    
Sales 1,602.76  
Less: Sales Returns 17.37 1,585.39
Other Income    
Interest 8.56  
Add: Accrued Interest 3.43 11.99
     
Total   1,597.38
Expenditure    
Material Consumed    
Opening Stock 255.4  
Add: Purchases 983.95  
Less : Purchase
13.49
Return  
Less: Closing Stock 171.03 1,054.83
Employees Benefits    
Wages 152.93  
Salaries 26.13 179.06
Depreciation    
Premises 5.48  
Plant & Machinery 33.39  
Furniture 0.93 39.8
Finance Cost    
Interest on Bank Loan 6.17
Other Expenses    
Freight 6.73  
General Expenses 34.58  
Auditors Fees 11.78  
Directors Fees 35.96 89.05
Total Expenditure   1,368.91
     
Profit Before Tax   228.47
Provision for Tax   68.54
Profit After Tax   159.94
Cases
Case 5.1: Preparation of Statement of Profit & Loss for Asian Paints

Statement of Profit & Loss of Asian Paints for the year ended 31st March 2017

  Note No Amount (Rs Crores)

Revenue    
Revenue from Operations 1 14,361
Other Income 2 301
Total Income   14,662
Expenses    
Raw Material Consumed 3 6,738
Purchase of Stock In Trade   647
Change in Inventories of Stock in Trade 4 (515)
Excise Duty   1,713
Employees Benefits Expenses 5 742
Depreciation on property, plant and
equipment 6 296
Finance Cost 7 19
Other Expenses 8 2,364
Total Expenses   12,004
Profit Before Tax   2,658
Tax Expense    
- Current Tax   817
- Tax Credit   (4)
- Deferred Tax   42
Total Tax Expense   855
Profit for the year   1,803
     
Other Comprehensive Income    
Items that will not be classified to Statement
of Profit & Loss   139
Tax on Items that will not be classified to
Statement of Profit & Loss   (3)
     
Items that will be classified to Statement of
Profit & Loss   3
     
Total Other Comprehensive Income   139
Total Comprehensive Income for the year   1,942
     
Notes to Accounts  
  Rs. Crores
1. Revenue from Operations  
Sale of Products 14,154
Sale of Service 8
Other Operating Income  
Processing and Service Income 53
Scrap Sales 9
Subsidy from State Government 137
  14,361
2. Other Income  
Interest Income 22
Dividend Income 77
Exchange Difference (Credit) 17
Other non-operating Income 185
  301
   
3.Raw Material Consumed  
Opening Stock - Raw Material 534
Purchase of Raw Material 5,630
Less: Closing Stock of Raw Material 598
  5,566
Opening Stock - Packing Material 40
Purchase of Packing Material 1,168
Less: Closing Stock of Packing Material 36
  1,172
  6,738
   
4. Change In Inventories of Stock in Trade  
Opening Stock - Finished Goods 778
Opening Stock - Work In Progress 65
Opening Stock - Stock in Trade 135
  978
Less:  
Closing Stock - Finished Goods 1,233
Closing Stock - Work in Progress 75
Closing Stock - Stock in Trade 185
  1,493
  (515)
   
5. Employee Benefits Expenses  
 Salaries and Wages 642
Contribution to provident and other funds 40
Staff Welfare Expenses 60
  742
   
6. Depreciation and Amortisation  
Depreciation on property, plant and equipment 270
Amortisation of Intangible assets 26
  296
   
7. Finance Cost  
Interest expense on Loans 18
Interest on Income Tax 1
  19
8. Other Expenses  
Advertisement Expenses 517
Consumption of stores, spares and consumables 43
Training and Recruitment 46
Freight and handling charges 829
Legal and Professional Expenses 37
Training and Recruitment 46
Legal and Professional Expenses 37
Information Technology Expenses 45
Power and Fuel 88
Rent Paid 196
CSR Expenses 48
Travelling Expenses 101
Miscellaneous Expenses 331
  2,364
   

Case 5.2: Preparation of Statement of Profit & Loss for HCL Tech Limited

Statement of Profit & Loss of HCL Tech Limited for the year ended 31st March 2017

  Note No Amount (Rs Crores)

Revenue    
Revenue from Operations 1 19,318
Other Income 2 956
Total Income   20,274
Expenses    
Purchase of Stock In Trade   123
Change In Inventories of Stock in Trade 3 39
Employee Benefits Expenses 4 6,843
Depreciation & Amortisation   479
Finance Cost 5 56
Outsourcing Costs   2,219
Other Expenses 6 2,239
Total Expenses   11,998
Profit Before Tax   8,276
Tax Expense    
- Current Tax   1,537
- Deferred Tax   (134)
Total Tax Expense   1,403
Profit for the year   6,873
     
Other Comprehensive Income    
Items that will not be classified to
Statement of Profit & Loss   (7)
Tax on Items that will not be classified
to Statement of Profit & Loss   1
     
Items that will be classified to
Statement of Profit & Loss   521
Tax on Items that will be classified to
Statement of Profit & Loss   (110)
Total Other Comprehensive Income   405
Total Comprehensive Income for the
year   7,278
     

Notes to Accounts  
  Rs. Crores
1. Revenue from Operations  
Sale of Service 19,150
Sale of Hardware and Software 168
  19,318
2. Other Income  
Interest Income 788
Investment Income 46
Dividend from Subsidiary Companies 26
Exchange Difference (Credit) 57
Profit on Sale of property 2
Miscellaneous Income 37
  956
3. Change In Inventories of Stock
in Trade  
Opening Stock of Stock in Trade 129
Closing Stock on Stock-in-Trade 90
  39
4. Employee Benefits Expenses  
Salaries, Wages & Bonus 6,545
Contribution to employee funds 245
Staff Welfare Expenses 53
  6,843
5. Finance Cost  
Interest expense on Loans 51
Bank Charges 5
  56
6. Other Expenses  
Communication Costs 131
Legal and Professional Fees 132
Power and Fuel 234
Rent Paid 217
Repair & Maintenance 261
Software Licence Fees incurred 224
Travel and Conveyance 740
Miscellaneous Expenses 300
  2,239
   

Case 5.3 Statement of Profit & Loss for CIPLA Limited

Particulars Note No. Rs. Crores

I. Revenue from operations   10,974
II. Other Income   130
III. Total Income (I +II)   11,104
IV. Expenses:    
Cost of materials consumed   2,956
Purchase of Stock-in-Trade   1,129
Changes in inventories of finished goods, work-in-
  56
progress and Stock-in-Trade

Employee benefit expense   1,729

Finance costs   39
Depreciation and amortization expense   500
Impairment of Investment   251
Other expenses   3,257
Total Expenses (IV)   9,917
V. Profit/ (Loss) before exceptional items and tax
  1,187
(III-IV)
VI. Exceptional Items   -
VII Profit/(Loss) Before Tax (V – VI)   1,187
VIII. Tax expense:  
(1) Current tax 311
(2) Deferred tax (99)
IX. Profit /(Loss) from the period from continuing
  975
operations (VII - VIII)
X. Profit/(Loss) from discontinued operations   -

XI. Tax expense of discounted operations   -

XII. Profit/(Loss) from Discontinued operations (X
  -
- XI)
XIII. Profit/(Loss) for the period (IX + XII)   975

XIV. Other Comprehensive Income    

A (i) Items that will not be reclassified to profit &
  11
loss
(ii) Income tax relating to items that will not be
  (4)
reclassified to profit & loss
B (i) Items that will be reclassified to profit & loss    
(ii) Income tax relating to items that will be
   
reclassified to profit & loss

XV. Total Comprehensive Income for the period

(XIII + XIV) comprising Profit (Loss) and Other   982
Comprehensive Income for the period)

Notes to Accounts   Rs. Crores

Revenue from Operations    
Revenue from Sales of Products   10,637
Other Operating Income   337
    10,974
     
Cost of Material Consumed    
Opening Stock- Raw Material and Packing Material   1,303
Purchase of Raw Material   2,765
Less: Closing Stock of Raw Material and Packing Material   1,112
    2,956
     
Change in Inventories of WIP, Finished Goods and Stock-in-trade    
Opening Stock    
Work-in- Progress 762  
Finished Goods 602  
Stock-in-trade 199 1,563
Less: Closing Stock    
Work-in- Progress 545  
Finished Goods 680  
Stock-in-trade 282 1,507
    56
     
     
Employee benefits expenses    
Salaries & Wages   1,540
Contribution to PF and Other Funds   71
Staff Gratuity   39
Employee Stock Option Expense   22
Staff Welfare Expenses   57
    1,729
     
Depreciation and Amortisation Expense    
Depreciation on Tangible Assets   465
Amortisation of Intangible Assets   35
    500
     
Other Expenses    
Commission on Sales   234
Contractual Services expenses   164
CSR Expenditure   28
Freight & Forwarding   158
Manufacturing Expenses   443
Power & Fuel   206
Professional Fees   395
Repair & Maintenance   132
Research Costs - Clinical trials   280
Sales Promotion Expenses   231
Stores and Spares 94  
Less: Closing stock of spares 34 60
Travelling & Conveyance   239
Provision for doubtful trade receivables   33
Miscellaneous Expenses   654
    3,257
     

Case 5.4 Statement of Profit & Loss for Hindustan Lever Limited

Particulars Note No. Rs. Crores

I. Revenue from operations   34,487
II. Other Income   526
III. Total Income (I +II)   35,013
IV. Expenses:    
Cost of materials consumed   11,363
Purchase of Stock-in-Trade   4,166
Changes in inventories of finished
goods, work-in-progress and Stock-   156
in-Trade
Employee benefit expense   1,620
Finance costs   22
Depreciation and amortization
  396
expense
Excise Duty   2,597
Other expenses   8,538
Total Expenses (IV)   28,858
V. Profit/ (Loss) before exceptional
  6,155
items and tax (III-IV)
VI. Exceptional Items   241
VII Profit/(Loss) Before Tax (V – VI)   6,396
VIII. Tax expense:  
(1) Current tax (1,865)
(2) Deferred tax (41)
IX. Profit /(Loss) from the period
from continuing operations (VII -   4,490
VIII)
X. Profit/(Loss) from discontinued
  -
operations
XI. Tax expense of discounted
  -
operations
XII. Profit/(Loss) from Discontinued
  -
operations (X - XI)
XIII. Profit/(Loss) for the period (IX
  4,490
+ XII)
XIV. Other Comprehensive Income    
A (i) Items that will not be
  (32)
reclassified to profit & loss
(ii) Income tax relating to items that
  11
will not be reclassified to profit & loss
B (i) Items that will be reclassified to
  1
profit & loss
(ii) Income tax relating to items that
   
will be reclassified to profit & loss
XV. Total Comprehensive Income for
the period (XIII + XIV) comprising
Profit (Loss) and Other   4,470
Comprehensive Income for the
period)

Notes to Accounts   Rs. Crores

Reveue from Operations    
Sales of Products   33,895
Income for services rendered   513
Other Operating Income   79
    34,487
     
Other Income    
Interest Income   262
Dividend Income   178
Misc Other Income   86
    526
Cost of Material Consumed    
Opening Stock- Raw Material and Packing
Material   907
Raw Material and Packing Material
Purchased   11,335
Less: Closing Stock of Raw Material and
Packing Material   (879)
    11,363
     
Change in Inventories of WIP, Finished
Goods and Stock-in-trade    
Opening Stock    
Work in Progress 354  
Finished Goods & Stock-in-trade 1,206 1,560
Less: Closing Stock    
Work in Progress -205  
Finished Goods & Stock-in-trade -1214  
 Excise Duty in closing stock of finished
goods 15 (1,404)
    156
Employee benefits expenses    
Salaries & Wages   1,330
Contribution to PF and Other Funds   81
Defined Benefits Plan Expenses   18
Share based payments to employees   94
Workmen and Staff Welfare Expenses   97
    1,620
Depreciation and Amortisation Expense    
Depreciation on Tangible Assets   384
Amortisation of Intangible Assets   12
    396
Other Expenses    
Advertising and promotion   3,470
Carriage & Freight   1,457
CSR Expenditure   104
Power, Fuel, Light and Water   257
Processing Charges   290
Rates and Taxes   116
Rent   241
Repair & Maintenance 120  
Add: Opening Stock of Stores and Spares 61  
Less: Closing stock of Stores and spares -64 117
Royalty Expenses   1,044
Travelling & Conveyance   176
Miscellaneous Expenses   1,266
    8,538
     

Case 5.5 Comparison between Hero MotoCorp Limited and Tech Mahindra Limited

1. Compare the composition of expenses for the two companies.

Hero Motocop is a manufacturing company whereas Tech Mahindra is in services.
Accordingly the main differences in the cost structure are as follows:
a) Tech Mahindra has comparatively higher employee benefits expenses
b) For Hero Motocop, cost of material consumed is the major element of cost which is
missing in case of Tech Mahindra.
c) Hero Motocop has significant amount of excise duty. Tech Mahindra has large
expenses on subcontracting.
 d) For Hero Motocop, OCI is negative whereas for Tech Mahindra it is positive.
e) Tech Mahindra has higher Finance Charges signifying higher reliance on borrowed
funds.

2. The disclosure is being made based upon the concept of materiality.

Profit & Loss Account for the year ended 31st March
  ` Crores
Income 2010 2009
Income from software services and products 21140 20264
Interest Income 743 836
Dividend Income 101 2
Other income / (loss) 66 -334
Total Income 22050 20768
     
Expenses    
Software development expenses 2317 2111
Selling expenses 215 247
Salaries, wages and other employee benefits 10340 9960
Managerial remuneration 16 15
Depreciation and amortization 807 694
Auditor's remuneration 1 1
Provision for doubtful debts -1 74
Provision for post-sales client support and warranties -2 39
Other expenses 885 913
Total Expenses 14578 14054
Profit Before Tax and Extra-Ordinary Items 7472 6714
Provision for Taxation 1717 895
Profit Before Extra-Ordinary Items 5755 5819
Extra-ordinary Income, net of taxes 48 0
Profit After Tax 5803 5819
     
Appropriations    
Interim Dividend on Equity Shares 573 572
Final Dividend on Equity Shares 861 774
Tax on dividend 240 228
Total Appropriations 1674 1574
Balance Carried to Balance Sheet 4129 4245
     

Case 4.2: Preparation of Profit & Loss Account for Cipla Limited based upon the Trial
Balance and additional information

Profit & Loss Account of Cipla Limited for the year ended 31st March 2010
  ` Crores ` Crores
   
Gross Sales 5411.68  
Less : Excise Duty 52.16 5359.52
Other Income 353.72
   
Total Income 5713.24
Expenses  
Material Consumed  
Opening Stock 1398.32  
+ Purchases 2567.24  
- Closing Stock 1512.58 2452.98
Employee Cost 263.01  
+ Salary Outstanding 26.74  
+ Provisions for Retirement Benefits 29.12 318.87
Provision for doubtful debts 83.61
Manufacturing Expenses 231.05
Other Expenses 957.85
Research & Development Expenses 250.69
Provision for Depreciation 165.25
Interest Cost 22.95
Total Expenses 4483.25
   
Profit Before Tax and Extra-Ordinary Income 1229.99
Extra Ordinary Income 95.00
Profit Before Tax 1324.99
Less : Provision for Tax 243.5
   
 Profit After Tax 1081.49
   
Less : Appropriations  
Proposed Dividends 160.58
Dividend Distribution Tax 26.67
   
Balance Carried to the Balance Sheet 894.24
     
Note: Colored entries depict adjustment entries.

Case 4.3: Preparation of Profit & Loss Account for Siemens Limited based upon the Trial
Balance and additional information
The Profit & Loss Account of Siemens Limited for the year ended 30 th September 2009 is given
below:

Profit & Loss Account of Siemens Limited for the year ended 30 th September 2009

Particulars ` '000
     
Income    
Gross Sales & Services Income 85,554,114  
Less : Excise Duty 2,186,779 83,367,335
Other Income    
Commission Income 520,410  
Other Operating Income 697,219  
Interest Earned 523,002  
Profit on Sale of Investment in Subsidiaries 2,059,459  
Other Income 2,341,188 6,141,278
Total Income   89,508,613
Expenses    
Raw Material, Stores and Components Purchased 20,200,725  
Add: Opening Stock - Raw Material, Stores & Components 1,526,726  
Less: Closing Stock - Raw Material, Stores & Components 2,531,516 19,195,935
Traded Goods Purchased   11,335,326
Personnel Cost 5,445,792  
Add: Provisions for Employees Benefits 53,197 5,498,989
Other Cost of Sales & Services   28,535,474
Provisions for Warranties and Contingencies   5,237,014
Provisions for doubtful debts   769,201
Other Costs   4,877,553
 Depreciation   777,794
Interest Expense   58,772
Add: Opening Stock - WIP & Finished Goods 6,094,417  
Less: Closing Stock - WIP & Finished Goods 7,190,455 (1,096,038)
Profit Before Tax   14,318,593
Tax    
Current 4,007,464  
Deferred (208,879)  
Fringe Benefit Tax 71,500 3,870,085
Profit After Tax   10,448,508
     
Appropriations    
Proposed Dividend 1,685,801  
Tax on Dividend 286,502 1,972,303
Balance carried to Balance Sheet   8,476,205
     
     

Red entries are based upon the adjustments.

Case 4.4

Profit & Loss Statement of TCS Limited for the year ended 31st
March 2012
    ` Crores
Income  
Revenue from Operations 38,858.54
Other Income  
Dividend 2,428.00  
Interest 658.57  
Other Income 31.43 3,118.00
Total Income 41,976.54
   
Expenditure  
Employee Benefit Expenses 14100.41
Other Expenses 13372.41
Exchange Loss 432.82
Finance Cost 16.4
 Depreciation 681.23
Amortisation 6.94
Total Expenditure 28610.21
   
Profit Before Tax 13,366.33
   
Provision for Tax 2390.35
   
Profit After Tax 10,975.98
     

Case 4.5: Comparison of Profit & Loss Account of Hero Honda Motors Limited and Tech
Mahindra Limited for the year 2009-101

Hero Honda Tech Mahindra

Particulars Motors Limited Limited
(` Crores) (` Crores)
     
Net Sales/ Income from Operations 15,758 4,484
Other Income 341 91
Total Income 16,099 4575
Personnel Expenses 560 1,599
Material Consumed 10,736 0
Operating and Other Expenses 1,800 1,803
Depreciation and Amortization 191 130
Finance Charges -20 160
Exceptional Items 0 9
Profit Before Tax 2,832 874
Provision for Tax    
-Current 592 138
-Deferred 8 -7
Net Profit After Tax 2,232 743
Balance of Profit brought forward 2,707 1,350
Interim Dividend 1,598  
Proposed Dividend 599 43
Tax on Dividend 371 7
Transfer to Reserves 225 269
Balance Carried to Balance Sheet 2,146 1,774

1
Annual Reports of Hero Honda Motors Limited and Tech Mahindra Limited for the year 2009-10
3. Compare the composition of expenses for the two companies.
Hero Honda is a manufacturing company whereas Tech Mahindra is in services.
Accordingly the main differences in the cost structure are as follows:
f) Tech Mahindra has comparatively higher personnel cost
g) For Hero Honda material cost is the major element of cost which is missing in case of
Tech Mahindra
h) Proportionately Operating and Other Expenses are higher in case of Tech Mahindra
i) Tech Mahindra has higher Finance Charges signifying higher reliance on borrowed
funds.

4. Hero Honda Motors Limited has negative finance charges. What does it indicate?
The interest earned is netted from interest paid and finance charges. Hero Honda being a
cash rich company might have kept surplus funds in bank deposits etc. on which it is
earning interest. The negative finance charges indicate that the interest earned in higher
than interest paid.

5. How are these two companies appropriating their profits?

Tech Mahindra is paying relatively lower dividends and retaining more in Reserves &
Surplus. Hero Honda on the other hand is paying larger dividends and retaining less in
Reserves and Surplus.

Case 4.6
Identify the key differences:

a. Proportion of `Other Income’ in the total income

b. Fuel Cost (NTPC) and `Electricity Cost’ (PTC) vs. Nil cost of raw material for
NHPC and PG
c. Higher depreciation in PG whereas lowest in case of PTC
d. Higher Interest/Finance Cost in case of PG/NTPC
e. Impact of Prior Period Items (NTPC)