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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

ConceptProfitability Ratios - Net Profit Ratio

#### Question

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 LtdComparative Statement of Profit and Loss Particulars NoteNo. 2012-13 Rs 2013-14 Rs AbsoluteChange 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?

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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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