From the following profit and loss amount of 'X' company Ltd. For the years ending 31.03.2018 and 31.03.2019 you are required to solve a comparative statement of profit and loss and interpret the changes.
Particulars
	2017-18	2018-19
Revenue from operations
	650	850
Other income
	20	25
cost of materials consumed
	400	500
Employee Benefit Expenses
	40	50
Finance cost
	30	40
Depreciation
	15	20
Other expenses
	35	40
Income tax
	30	40
Net profit
	120	185


### Comparative Statement of Profit and Loss for 'X' Company Ltd. (for the years ending 31.03.2018 and 31.03.2019)

| **Particulars**                  | **2017-18** | **2018-19** | **Absolute Change** | **Percentage Change (%)** |
|-----------------------------------|-------------|-------------|---------------------|---------------------------|
| **Revenue from Operations**       | 650         | 850         | 200                 | 30.77%                    |
| **Other Income**                  | 20          | 25          | 5                   | 25.00%                    |
| **Total Income**                  | 670         | 875         | 205                 | 30.60%                    |
| **Cost of Materials Consumed**    | 400         | 500         | 100                 | 25.00%                    |
| **Employee Benefit Expenses**     | 40          | 50          | 10                  | 25.00%                    |
| **Finance Cost**                  | 30          | 40          | 10                  | 33.33%                    |
| **Depreciation**                  | 15          | 20          | 5                   | 33.33%                    |
| **Other Expenses**                | 35          | 40          | 5                   | 14.29%                    |
| **Total Expenses**                | 520         | 650         | 130                 | 25.00%                    |
| **Profit Before Tax (PBT)**       | 150         | 225         | 75                  | 50.00%                    |
| **Income Tax**                    | 30          | 40          | 10                  | 33.33%                    |
| **Net Profit**                    | 120         | 185         | 65                  | 54.17%                    |

### Interpretation of Changes:
1. **Revenue from Operations**: Increased by 30.77%. This indicates strong business performance and growth in sales for the company during 2018-19 compared to the previous year.
   
2. **Other Income**: There was a 25.00% increase in other income, signifying additional revenue streams, although this increase is relatively minor compared to revenue from operations.

3. **Cost of Materials Consumed**: The cost rose by 25.00%, likely due to higher production volumes to support the increased revenue. This indicates that while expenses are growing, they are controlled in proportion to the growth in sales.

4. **Total Expenses**: The total expenses increased by 25.00%, which is lower than the rate of revenue increase (30.60%). This shows an effective cost management strategy by the company, as profits are growing faster than expenses.

5. **Net Profit**: The net profit increased significantly by 54.17%, which is a very healthy growth, indicating improved profitability. The company is retaining more income despite rising operational costs.

Would you like a deeper analysis of any specific area, or do you have any further questions?

### Relative Questions:
1. How does an increase in finance costs impact the overall profitability of a company?
2. What strategies can companies adopt to control the rising cost of materials consumed?
3. Why might a company's revenue from operations increase significantly in one year?
4. How does depreciation impact the financial health of a company?
5. What is the importance of keeping the income tax liability under control?

### Tip:
Always analyze the relationship between revenue growth and expense control. A company with balanced revenue growth and expense management often sees a substantial improvement in net profit.

From the following profit and loss amount of 'X' company Ltd. For the years ending 31.03.2018 and 31.03.2019 you are required to solve a comparative statement of profit and loss and interpret the changes.
Particulars
	2017-18	2018-19
Revenue from operations
	650	850
Other income
	20	25
cost of materials consumed
	400	500
Employee Benefit Expenses
	40	50
Finance cost
	30	40
Depreciation
	15	20
Other expenses
	35	40
Income tax
	30	40
Net profit
	120	185

Analyze the comparative profit and loss statement for 'X' company Ltd. for the years ending 31.03.2018 and 31.03.2019. Includes percentage changes in revenue, expenses, and profit with interpretations. Ideal for undergraduate finance students.

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