Answer / chandu

we will find all the expenses and incomes in p&l account amd
also we find profit of the company. this is the extract of
company activities in terms of money.

Answer / anup

P&L a/c is list of closing balances of all the nominal
accounts for the given period of time.this a/c help us to
find exact trading profit or loss for that period.we record
all the expenses and losses on the debit side, and all the
incomes and gains on the credit side.debit balance of p&l
a/c is considered as loss and vice-versa.

Answer / nalla rajendra prasad

According to the companies act,1956 Part-II Schedule VI P&L
a/c is used to prepare for the position of company whether
the company is running with profits or losses.with this a/c
we should know the effiency of company.

Answer / reshmi

P&L account displays the income generated and the expenses
incurred for a particular financial year..i.e.. operational
expenses and gains...

It also diaplays your Net Profit before and after tax as
well as before or after paying debenture holders and
preference shareholders' interest...or loss...

Answer / sunil bhatt

In P&L accounts we keep all the administratve expnses in
the debit side and keep all the income and gains in credit
side. We find net loss and profit from it.

Answer / renuka

W'll find all the payment and receipts which is called as
expenses and income in debit and credit side respectively.
depreciation of any assets , insurance claim,Discount
received etc and balance if it is in profit then known as
Net profit and if Net loss.

Answer / raghavendra babu

P&L A/C IS ONE OF THE FINANCIAL STATEMENT.THROUGH THIS WE CAN FIND WHAT R THE EXPENSES AND INCOMES OF THE COMP. AND ALSO THE NET PROFIT R NET LOSS.

What columns are there in a funds flow statement?

0 Answers  

What are the effects of 'inflation'?

0 Answers  

What is operating ratio? What does it indicate?

0 Answers  

what is mean by Ratio analysis in the orgnations?

0 Answers   Reliance, TATA,

What is pgdrb program?

0 Answers  

What is micro financing?

0 Answers   RBI,

What is the impact of Indian market as a whole if the sensex is positive since two months?

1 Answers   eClerx, Samruddha Jeevan, State Bank Of India SBI,

Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?

0 Answers  

can any on plz let me knw wat is rivarse repo rate ?

3 Answers  

What do you understand from 'internet banking'?

0 Answers   Bank of Baroda,

what are the different sources of risk to financial insititution in pakistan

2 Answers  

Which is higher - the cost of equity or the cost of debt, and why?

0 Answers   State Bank Of India SBI,