COMMON - SIZE STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2018 and 2019
Analysis and Comments:
1. Purchases of Stock-in-Trade and Change in Inventories of Stock-in-Trade have decreased from 75% to 68%. There are two possible reasons for this change:
Efficient functioning of the purchase and production department
Increase in the sale price of the product without corresponding increase in the cost of inputs.
2. Increase in net profit mainly due to decrease in the percentage of Cost of Goods Sold.
