PRESENTATTION ON INCOME STATEMENT of RIL

PRESENTED BY:Amit Kumar

Vamsi KrishnaKritika Jain

Rutvij BhutaiyaTPR. Akhilesh

Neha Choudhary

What is Income statement ?

This is a statement which describe how the revenue is transformed into net income.

Income = profit + expenses

COMPONENTS OF INCOME STATEMENT

INCOME TAXES1. SALES 1. CURRENT TAX2. OTHER INCOME 2. DEFERRED TAX 3. FRINGE BENEFIT EXPENDITURE TAX APPROPRIATION 1. RAW MATERIAL BALANCE 2. MANUFACTURING AND 1. DIVIDENDS OTHER EXP. 2. CORPORATE DIVIDEND TAX 3. GENERAL 4. RESERVES

INCOMEParticular 2010-2011 in cr 2009-2010 in cr

Turnover 2,58,651.15 2,00,399.79

Excise Duty / S Tax Recovered

(10,481.15) (7,938.77)

Net Turnover 2,48,170.00 1,92,461.02

Other Income Dividend:

Interest:Profit on Sale of

Current Investments & Fixed Assets

3,051.71 2,460.32

Variation in Stocks 3,243.05 3,947.89

2,54,464.76 1,98,869.23

• Export incentives::Monetary, tax or legal incentives designed to

encourage businesses to competitive in global market.• Non-trade Investments:: Shares and bonds which are not related to business

thats NON TRADE INVESTMENT

ExpenditureExpenditure 2010-2011

in cr2009-2010 in cr

PurchasesInterest and Finance

1,464.31 2,995.82

Manufacturing and Other Expenses

2,11,823.01 1,62,832.23

Charges 2,327.62 1,997.21

Depreciation 16,241.33 13,477.01

Transferred from Revaluation Reserve

(2,633.75) (2,980.48)

2,29,222.52 1,78,321.79

PROFIT BEFORE TAX• A profitability measure that looks at a company's

profits before the company has to pay corporate income tax.

• PBT exists because tax expense is constantly changing and taking it out helps to give an investor a good idea of changes in a company's profits or earnings from year to year.

PROFIT AFTER TAX

• It the net profit earned by the company after deducting all expenses like interest, depreciation and tax.

Particular 2010-2011 in cr 2009-2010 in cr

Profit before Tax 25,242.24 20,547.44

Provision for Current Tax

4,320.44 3,111.77

Provision for Deferred Tax

635.50 1,200.00

Profit after Tax 20,286.30 16,235.67

TAX

• A compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

• It can be broadly classified into

1. Current tax

2. Deferred tax

3. Fringe Benefit tax

• Deferred Tax: It is an accounting concept known as future income taxes, meaning a future tax liability or asset.

• Fringe Benefit Tax: Those which are provided by an employee to his employer and which are exempted from the taxes under certain condition are met.

• Some of the FBT are:

Health insurance

Employee discount

Balance available for appropriation• Appropriation in accounting terms means Setting aside Money for a

specific purpose.• Using P & L Appropriation account would enable handling all the

information relating to appropriation of profits through a separate account.

Particular 2010-2011 in cr 2009-2010 in cr

General Reserve 16,000.00 14,000.00

Debenture Reserve ______ 189.50

Proposed Dividend on Equity Shares

2,384.99 2,084.67

Tax on Dividend 386.90 346.24

18,771.89 16,620.41

Bal carried to BS 6,513.86 4,999.45

• Interim Dividend:

A dividend which is declared and distributed before the company’s annual earnings have been calculated and it is often distributed quarterly.

• Proposed Dividend:

It is a way in which a company shares its profit to its shareholders. It is given as a percentage of the base / face value of the share. Each shareholder gets an amount depending upon the number of shares it has. The amount is decided on the Annual General Meeting (AGM) of the company. It is a current liability for a company as it has to be paid by the company during the same accounting period.

• General Reserve:

In short is the part of reserve amount kept by the company out of its profits for future purpose.

Usually, companies keep 20% aside the general reserves out of the total profit earned for a particular period.

Thank you