1. RTI, Jaipur Financial Audit of Annual Accounts of Government Companies Profit and Loss Account According to the Section 211 of the Companies Act, 1956 every profit and loss account of a Company should give a ‘true and fair’ view of the Net Profit or Net Loss of the Company

2. RTI, Jaipur Profit and Loss Account Format of the Profit and Loss Account should satisfy the requirements of Part II of Schedule VI. Requirement of AS-5 on Net Profit or Loss for the period, prior period items, and changes in accounting policies. It should present a true and fair view of the state of affairs of the Company.

3. RTI, Jaipur Profit and Loss Account Profit and Loss Account may be prepared either in horizontal or vertical form. Most of the Companies prepare the Profit and Loss Account in vertical form as it is easy to understand

4. RTI, Jaipur Profit and Loss Account Except in the case of the first profit and loss account, every other profit and loss account must show the corresponding amounts for the immediately preceding financial year for all items shown in the profit and loss account.

5. RTI, Jaipur Profit and Loss Account Profit and Loss Account must be prepare so as to clearly disclose the results of the working of the Company during the period covered by the account and must disclosed every material feature, including credits or receipts and debits or expenses in respect of non-referring transactions or transactions of exceptional nature.

6. RTI, Jaipur Vertical Format of Profit ad Loss Account In view of the requirements of the Accounting Standards and the Companies Act, a summarised profit and loss account in Vertical Format is suggested. However, each item in Profit and Loss Account should be accompanies by the supporting schedule which will give more detail.

7. RTI, Jaipur Vertical Format of Profit ad Loss Account ParticularsSche- dule Current YearPrevious year Income Sales1 Other Income2 Increase/Decrease in Work-in- Progress/Finished Stocks 3 Total

8. RTI, Jaipur Expenditure ParticularsScheduleCurrent YearPrevious year Cost of Raw material and Spars Excise Duty4 Employees’ Remuneration & Benefits 5 Other Expenses6 Interest6 Depreciation8 Total

9. RTI, Jaipur Profit Before Taxation & Extra Ordinary Items ParticularsScheduleCurrent YearPrevious year Extraordinary Item9 Profit for the Current year Prior Period Adjustments 10

10. RTI, Jaipur Profit before Taxation ParticularsScheduleCurrent YearPrevious year Provision for Taxation

11. RTI, Jaipur Profit after Tax ParticularsScheduleCurrent YearPrevious year Balance B/F from the Previous year Total available for Appropriations

12. RTI, Jaipur Appropriations ParticularsScheduleCurrent YearPrevious year Proposed Dividend Corporate Dividend on Taxes (CDT) Debenture Redemption Reserve