VIKAS BHARATI PUBLIC SCHOOL

CLASS XII- ACCOUNTANCY PROJECT GUIDELINES

ACCOUNTANCY: SPECIFIC PROJECT- ANALYSIS OF THE STATEMENT OF PROFIT AND LOSS OF ----LTD

SEQUENCE OF SHEETS

1. TITLE PAGE
2. CERTIFICATE
3. ACKNOWLEDGEMENT
4. INDEX
5. SPECIFIC PROJECT
6. BIBLIOGRAHY

PROJECT GUIDELINES

1. SHEET 1: HEADING SHEET:

SPECIFIC PROJECT I: ANALYSIS OF THE STATEMENT OF PROFIT AND LOSS
NAME OF THE COMPANY SELECTED
2. SHEET 2
NAME OF THE PROJECT:
AN ANALYSIS OF THE PROFITABILITY POSITION OF -----LTD THROUGH A COMPARITIVE STUDY OF
THE DIFFERENT COMPONENTS OF THE STATEMENT OF PROFIT AND LOSS
PERIOD OF STUDY:
YEAR ENDED MARCH 31, 20____
YEAR ENDED MARCH 31,20____
OBJECTIVE:
TO KNOW WHETHER THE COMPANY’S PERFORMANCE HAS IMPROVED IN THE CURRENT YEAR
OR NOT
TOOLS OF ANALYSIS:
COMPARATIVE STATEMENTS
RATIO ANALYSIS
SOURCE MATERIAL:
STATEMENT OF PROFIT AND LOSS OF XYZ LTD TAKEN FROM THE WEB SITE OF THE COMPANY

COMPARATIVE ANALYSIS:
1) REVENUE FROM OPERATIONS
2) TOTAL INCOME
3) TOTAL EXPENSES
4) NET PROFIT BEFORE TAX
5) NET PROFIT AFTER TAX (NET PROFIT FOR THE PERIOD)
6) EARNING PER SHARE (BASIC)

NOTE: BAR GRAPHS TO BE MADE FOR ALL

EXAMPLE OF COMPARATIVE ANALYSIS:
1. COMPARATIVE ANLAYSIS OF REVENUE FROM OPERATIONS FOR THE YEAR ENDED MARCH 31,
2020 AND March 31, 2019 for -----LTD.

Particulars P.Y. (2019) C.Y. (2020) ABSOLUTE % CHANGE

CHANGE
REVENUE FROM 100000 120000 20,000 20%
OPERATIONS

GRAPH: PLOT PREVIOUS YEAR VALUE AND CURRENT YEAR VALUE.

2. COMPARATIVE ANLAYSIS OF TOTAL EXPENSES FOR THE YEAR ENDED MARCH 31, 2020 AND
March 31, 2019 for -----LTD.

Particulars P.Y. (2019) C.Y. (2020) ABSOLUTE % CHANGE

CHANGE
EXPENSES 40,000 20000 (20000) (50%)

ABSOLUTE CHANGE= CURRENT YEAR – PREVIOUS YEAR

% CHANGE = (ABSOLUTE CHANGE/ PREVIOUS YEAR) X 100
GRAPH: PLOT PREVIOUS YEAR VALUE AND CURRENT YEAR VALUE.
NOTE: NEGATIVE VALUES TO BE IN BRACKETS

RATIO ANALYSIS:

1) NET PROFIT RATIO

A) NET PROFIT RATIO BEFORE TAX
B) NET PROFIT RATIO AFTER TAX
2) GROSS PROFIT RATIO
3) OPERATING RATIO
4) INTEREST COVERAGE RATIO
NOTE: BAR GRAPHS TO BE MADE FOR ALL

PRESENTATION:
1. NET PROFIT RATIO BEFORE TAX:
PARTICULARS YEAR ENDED MARCH 31, 2019 YEAR ENDED MARCH 31, 2020
NET PROFIT BEFORE TAX VALUE FROM STATEMENT VALUE FROM STATEMENT
REVENUE FROM VALUE FROM STATEMENT VALUE FROM STATEMENT
OPERATIONS
NET PROFIT RATIO CALCULATE % CALCULATE %
 NET PROFIT RATIO BEFORE TAX=
(NET PROFIT BEFORE TAX / REVENUE FROM OPERATIONS) X 100= %

GRAPH: PLOT THE NET PROFIT RATIO % FOR PREVIOUS YEAR AND CURRENT YEAR
FORMULA:
1) NET PROFIT RATIO= (NET PROFIT / REVENUE FROM OPERATIONS) X 100= %
a) NET PROFIT RATIO BEFORE TAX=
(NET PROFIT before tax / REVENUE FROM OPERATIONS) X 100= %
b) NET PROFIT RATIO after TAX=
(NET PROFIT after tax or net profit for the period/ REVENUE FROM OPERATIONS) X 100= %

2) GROSS PROFIT RATIO = (GROSS PROFIT / REVENUE FROM OPERATIONS) X 100= %

COST OF REVENUE FROM OPERATIONS = OP STOCK + PURCASES + DIRECT EXP – CLOSING STOCK
COST OF REVENUE FROM OPERATIONS = COST OF MATERIAL CONSUMED + PURCHASE OF STOCK IN TRADE
+ CHANGE IN INVENTORIES
GROSS PROFIT= REVENUE FROM OPERATIONS- COST OF REVENUE FROM OPERATIONS
3) OPERATING RATIO = (OPERATING COST/ REV FROM OPERATIONS) X 100 = %

OPERATING COST= COST OF REVENUE FROM OPERATIONS + OPERATING EXPENSES

OPERATING COST =
COST OF MATERIAL CONSUMED + PURCHASE OF STOCK IN TRADE + CHANGE IN INVENTORIES +
EMPLOYEE BENEFIT EXPENSE + DEPRECIATION AND AMORTIZATION
4) INTEREST COVERAGE RATIO= PROFITS BEFORE INTEREST AND TAX / INTEREST = ___ TIMES
PROFITS BEFORE INTEREST AND TAX= PROFITS BEFORE TAX + FINANCE COST
INTEREST= FINANCE COST

INTERPRETATION TABLE

SR NAME OF THE RATIO 2020 2019

NO
1 NET PROFIT BEFORE TAX RATIO
2 NET PROFIT AFTER TAX RATIO
3 GROSS PROFIT RATIO
4 OPERATING RATIO
5 INTEREST COVERAGE RATIO
 INDEX

SR NO TOPIC PAGE NO SIGNATURE

1. OBJECTIVE
2. SOURCE MATERIAL
3. PROCESSING SHEETS
3 (A) COMPARATIVE ANALYSIS:
1) REVENUE FROM
OPERATIONS
2) TOTAL INCOME
3) TOTAL EXPENSES
4) NET PROFIT BEFORE TAX
5) NET PROFIT AFTER TAX (NET
PROFIT FOR THE PERIOD)
6) EARNING PER SHARE (BASIC)

3(B) RATIO ANALYSIS:

1) NET PROFIT RATIO

A) NET PROFIT RATIO
BEFORE TAX
B) NET PROFIT RATIO
AFTER TAX
2) GROSS PROFIT RATIO
3) OPERATING RATIO
4) INTEREST COVERAGE
RATIO
4. INTERPRETATION
5. BIBLIOGRAPHY