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The Motto of Yash Ltd., an Advertising Company is 'Service with Dignity'. Calculate Net Profit Ratio for the Years Ending 31st March, 2013 and 2014. Identify Any Two Values Which Yash Ltd. is Trying to Propagate - CBSE (Arts) Class 12 - Accountancy

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The motto of Yash Ltd., an advertising company is 'Service with Dignity'. Its management and workforce is hard-working, honest and motivated. The net profit of the company doubled during the year ended 31-3-2014. Encouraged by its performance company decided to give one-month extra salary to all its employees. Following is the Comparative Statement of Profit and Loss of the company for the years ended 31st March 2013 and 2014.

Yash Ltd
Comparative Statement of Profit and Loss
Particulars Note
No.

2012-13

Rs

2013-14

Rs

Absolute
Change

Rs

%
Change

Revenue from operations

Less Employee benefit expenses

Profit before tax

Tax Rate 25%

Profit after tax

 

10,00,000

6,00,000

4,00,000

1,00,000

3,00,000

15,00,000

7,00,000

8,00,000

2,00,000

6,00,000

5,00,000

1,00,000

4,00,000

1,00,000

3,00,000

50

16.67

100

100

100

1) Calculate net Profit Ratio for the years ending 31st March, 2013 and 2014.

2) Identify any two values which Yash Ltd. is trying to propagate

Solution

For 2013

Net Profit Ratio = `"Net Profit after Tax"/"Revenue from Operations" xx 100`

= `300000/1000000 xx 100`

= 30%

For 2014

Net Profit Ratio = `"Net Profit after Tax"/"Revenue from Operations" xx 100`

`= 600000/1500000 xx 100`

= 40%

The Following are the values that are propagated by Yash Ltd.

1) Staff welfare (since it depicts concerns for its staff members)

2) Boosting the morale of the employee

  Is there an error in this question or solution?
Solution The Motto of Yash Ltd., an Advertising Company is 'Service with Dignity'. Calculate Net Profit Ratio for the Years Ending 31st March, 2013 and 2014. Identify Any Two Values Which Yash Ltd. is Trying to Propagate Concept: Profitability Ratios - Net Profit Ratio.
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