CHAPTER-THREE
3.1
Presentation and Analysis of Data:
For
the preparation of report, the presentation of data plays the vital role. It
must be able to show overall genuine activities of the orgn clearly.
According to distribution report, the table and bar. Diagram is presented below
of Trading A/C, profit and loss A/C, profit and loss appropriation A/C, gross
profit ratio with its total sale and net profit ratio with its total sales of
fiscal years 2067/068, 068/069 and 069/70 of KBC.
3.1.1
Presentation and analysis of trading A/C.
Trading
A/C of KBC can be presented and analyzed with the help of table and figure
which are presented below:
Table
No.1 Kanchanjunga Business Circle Pvt. Ltd.
Khairahani-4, Chitwan
Trading A/C
Dr.
Cr.
|
Particulars
|
Fiscal years
|
Particular
|
Fiscal years
|
||||
|
2067/068
|
068/069
|
069/70
|
2067/068
|
068/069
|
069/70
|
||
|
To opening stock
|
2758500
|
2308400
|
2808400
|
By Sales
|
4867850
|
3740599
|
4800953
|
|
To purchase
|
3050000
|
2925600
|
3455684
|
By Closing stock
|
2308400
|
2808400
|
3023348
|
|
To carriage
|
383504
|
395805
|
401184
|
||||
|
To wages
|
104525
|
98873
|
106537
|
||||
|
To Gross profit
|
879721
|
820321
|
1052496
|
||||
|
Total
|
7176250
|
6548999
|
7824301
|
Total
|
7176250
|
6548999
|
7824301
|
Above
Table No.1 shows the Trading A/C of KBC for the last three fiscal year i.e.
2067/068, 068/069 & 069/70 in 2067/068 the total income of Rs.7176250
with the closing stock of Rs. 2308400. There is gross profit of Rs.
879721 but in fiscal year 068/069 the G.P. decreased to Rs. 820,321 and
the total exp. is Rs. 5,728,678 in 069/70, the G.P. has increase to Rs.
1,052,496 due to increase in sales.
We
can show the above table in bar diagram which is given below:
Figure No.1
Gross Profit
The above fig 1, shows the gross profit of three fiscal
year i.e. 2067/068, 068/069 & 069/70. In fiscal year 2067/068, the gross
profit is Rs. 879721 but in fiscal, year 2068/069, the G.P. has decrease to Rs.
820,321. Finally, in the fiscal year 2069/70, the G.P. has increased to Rs.
1,052,496.
3.1.2
Presentation and Analysis of Profit and Loss A/C.
Profit
and Loss A/C of KBC can be presented and analyzed with the help of table and
figure which are presented below:
Table No.2
Kanchanjunga Business Circle Pvt. Ltd.
Khairahani-4, Chitwan
Profit & Loss A/C
Dr.
Cr.
|
Particulars
|
Fiscal years
|
Particular
|
Fiscal years
|
||||
|
2067/068
|
068/069
|
069/70
|
2067/068
|
068/069
|
069/70
|
||
|
To salary
|
305000
|
310000
|
325000
|
By gross profit
|
879721
|
820321
|
1052496
|
|
To Depn
|
8330
|
7497
|
6747
|
||||
|
To stationery
|
19323
|
22830
|
25128
|
||||
|
To electrical
charge
|
28360
|
25220
|
29779
|
||||
|
To telephone
charge
|
37309
|
34212
|
41320
|
||||
|
To
Advertisement
|
30909
|
5122
|
70900
|
||||
|
To Rent
|
150000
|
150000
|
150000
|
||||
|
To other exp.
|
30000
|
15900
|
34680
|
||||
|
To bad debts
|
20000
|
18000
|
28300
|
||||
|
To Net profit
|
250490
|
231540
|
340642
|
||||
|
Total
|
879721
|
820321
|
1052496
|
Total
|
879721
|
820321
|
1052496
|
Table
No.2 shows us the Net Profit and Loss A/C of KBC for last three fiscal year
i.e. 2067/068, 2068/069 & 2069/70. This table not only shows us the net
profit of different fiscal year, it also shows the indirect expenses of the
firm. In fiscal year 2067/068, there is net profit of Rs. 250,490. To run the
orgn it has spend its income in different heading like
salaries, depn, stationery, electrical charge, telephone change and
so on. Such expenditures decrease the net profit. There is inverse relationship
between expenditure & net profit.
In
fiscal year 068/069, the firm had earned net profit of Rs.231,540. This net
profit is slightly fewer than previous years. The net profit is less here
because the gross profit is also less. This year is relatively not good year
for the firm.
In
fiscal year 2069/70, the net profit of the firm had increased to Rs. 340,642.
The net profit in this fiscal year is increased due to the increase in gross
profit. This year net profit is higher by Rs 109,102. The main reason that the
profit of this year had increased due to increase in advertisement and
publicity. Thus, this year is quite better year regarding the net profit.
The
fact revealed from the above table can be presented in diagrammatic form which
is given below.
Figure No. 2
Profit & Loss
Figure
No.2 shows the trend of net profit of different fiscal years. In fiscal year
2067/068, the net profit amount to Rs. 250,490. But in fiscal year 068/069, the
net profit of KBC had decreased to Rs.231,540 the net profit of this fiscal
year had decreased due to the lack of sufficient advertisement. But in fiscal
year 2069/70, the net profit of KBC had increased to Rs.340,642. This amount is
higher by Rs.109,102. The net profit in fiscal year 2069/70 had increased due
to heavy advertisement of the firm. So many customers are attracted towards
this firm. So, the net profit had increased.
3.1.3
Presentation and analysis of Profit and Loss appropriation A/C
We
can present and analyze the profit and loss appropriation A/C of KBC with the
help of table and figure which are presented below.
Table No.3
Kanchanjunga Business Circle Pvt. Ltd.
Khairahani-4, Chitwan
Profit and loss appropriation A/C
|
Particulars
|
Fiscal years
|
Particular
|
Fiscal years
|
||||
|
2067/068
|
068/069
|
069/70
|
2067/068
|
068/069
|
069/70
|
||
|
Taxation (26.5%)
|
66380
|
61358
|
90270
|
Net profit (before tax)
|
250490
|
231540
|
340642
|
|
Remaining profit (after tax)
|
184110
|
170182
|
250372
|
||||
|
250490
|
231540
|
340642
|
250490
|
231540
|
340642
|
||
|
General reserve (25%) net profit
|
46028
|
42546
|
62593
|
Remaining Profit (after tax)
|
184110
|
170182
|
250372
|
|
Net profit(after GR)
|
138082
|
127636
|
187779
|
||||
|
184110
|
170182
|
250372
|
184110
|
170182
|
250372
|
||
|
Employee bonus(10%)
|
13808
|
12764
|
18778
|
Net profit (after general reserve)
|
138082
|
127636
|
187779
|
|
Capital reserve (50%)
|
69042
|
63818
|
93890
|
||||
|
Reserve for future loss (20%)
|
27616
|
25527
|
37556
|
||||
|
Reserve for doubtful debt (20%)
|
27616
|
25527
|
37556
|
||||
|
138082
|
127636
|
187779
|
138082
|
127636
|
187779
|
||
Table
No.3 is a table of profit and loss appropriation of KBC. The KBC has same rules
to appropriation the profit and loss in every year. It pays Tax to the
government as per rules from its Net profit. After paying tax it keeps 25% of
Net profit after tax as general reserve and after general reserve it
distributes remaining profit. The KBC distributes 10% for employee bonus, 50%
for capital reserve, 20% for reserve for future loss and 20% for doubtful debt.
In above table the employers get higher bonus in fiscal year 069/70. i.e Rs
18,778 and less bonus in fiscal year 068/069. i.e. Rs. 12,764 than other years.
Due to less profit the employers are badly affected in this year. The capital
reserve, Reserve for future loss and reserve for doubtful debt also higher in
fiscal year 069/70 and less in fiscal year 068/069 than other years.
We
can show the above table in bar diagram which is as follow:
Figure
No.3
Figure
No. 3 is the figure of profit and loss appropriation of net profit after tax
and general reserve. At the KBC pays tax out of its net profit and again it
keeps 25% of remaining profit as general reserve. Then it distributes the
remaining profit for Employee bonus (10%), Capital reserve (50%), Reserve for
future loss (20%) and reserve for doubtful debt (20%). It never changes its
appropriation rule. It is not good system for good orgn. So, it has to change its
rule to distribute the profit to different points. We know well that the time
is changeable and the rules of orgn should be change with changing time. If
the orgn do so it can earn its
more profit and good will than it is having now.
3.1.4
Presentation and analysis of G.P. ratio with total sales
We can present and analyze the G.P ratio with total sales
of KBC. The table and figure help us to analyze G.P. ratio with sales of KBC
which are listed below:
Table No.4
Kanchanjunga Business Circle Pvt. Ltd.
Khairahani-4, Chitwan
Gross Profit ratio with sales
|
Fiscal years
|
Sales
|
Gross profit
|
G.P. ratio
|
Direct exp.
ratio
|
|
2067/068
|
4,867,850
|
879,721
|
18.07
|
81.93%
|
|
068/069
|
3,740,599
|
820,321
|
21.93%
|
78.07%
|
|
069/70
|
4,800,953
|
1,052,490
|
21.92%
|
78.08%
|
We can show the above table as bar-diagram which is as
follow:
Figure No.4
Gross Profit ratio with sales
The
Table and Figure No.4 show the G.P. ratio with sales of KBC. There is G.P.
ratio 18.07% in fiscal year 2067/068. In the same year the total direct exp.
ratio is 81.93%. But in fiscal year 068/069 the G.P. ratio increase to 21.93%.
In this year the total sales fall down to Rs. 3740599 from Rs. 4867850 of
previous sales. We can say that sales directly effects to the G.P.
The
G.P. ratio is 21.92% in fiscal year 069/70. In same year the Gross Profit is
more amount than other years. In the Table and figure No.4 we can see that
there is more expenditure ratio in fiscal year 2067/068 than other. The
expenditure ratio of 068/069. G.P. ratio in fiscal year 2067/068 is less than
other but this year sales amount is higher than other fiscal year. But above
table we can see that increase in G.P. due to increase in sales.
3.1.5 Presentation and analysis of Net Profit
Ratio with total sales
Table No. 5
Kanchanjunga Business Circle Pvt. Ltd.
Khairahani-4, Chitwan
Net profit ratio with sales
|
Fiscal years
|
sales
|
Net profit
|
Net profit
ratio
|
indirect exp.
ratio
|
|
2067/068
|
4867850
|
250490
|
5.15%
|
94.85%
|
|
068/069
|
3740599
|
231540
|
6.19%
|
93.81%
|
|
069/70
|
4800953
|
340642
|
7.1%
|
92.9%
|
Above
table can be shown as bar-diagram which is as follow:
Figure No.5
Above
table and figure No.5 show the relation of Net Profit ratio with total sales.
The profit of the firm depends on its sales. If there is more sales there will
be more profit and if there is less sales there will be less profit. There is
5.15% profit ratio in fiscal year 2067/068 where the total expenditure is
94.85% in this year. The sales amount is Rs. 4867850 and the Net Profit is Rs.
250490.
There
is 6.19% profit ratio in fiscal year 068/069 where the total expenditure is
93.81% in this year. The sales amount is Rs. 3740599 and the net profit is Rs.
231540. In this fiscal year. Net profit ratio increase to 6.19% from 5.15% due
to decrease in sales and net profit but direct expenditure ratio decrease.
There
is 7.1% profit ratio in fiscal year 069/70 where the total expenditure is 92.9%
in this year. The sales amount is Rs. 4800953 and the net profit is Rs. 340642.
In this fiscal year Net Profit ratio increases but indirect exp. ratio
decrease.
After
analysing the above data we can say that increasing sales increases to the Net
Profit and decreasing sales decreases to the Net Profit.
3.2
Study Result
By
analysing trading A/C, profit and loss A/C, profit and loss appropriation A/C,
gross profit ratio with sales and net profit ratio with sales we get the
following results:
i. Gross profit is Rs.879,721
Rs.820,321, Rs.1,052,496 respectively in fiscal year 2067/068, 068/069 and
066/066.
ii. Net profit is Rs.
250,490 Rs.231,540, Rs. 340,642 respectively in fiscal years 2067/068,
068/069 and 066/066.
iii. The KBC has followed the
same rule and rate for appropriation of profit & loss.
iv. At first, the KBC pays Tax
to the government as per rules from its Net profit and keeps 25% or remaining
profit for General reserve. Then, the remaining profit is distributed to Employ
bonus (10%), Capital reserve (50%), Reserve for future loss(20%) and Reserve
for doubtful debt(20%).
v. Gross profit ratio with
sales is 18.07% in fiscal year 2067/068 and it increases to 21.93% in fiscal
year 068/069 and again it decreases to 21.92% in fiscal year 069/70.
vi. Direct exp. is 81.93% in
fiscal year 2067/068 and it decreases to 78.07% in fiscal year 068/069 and
again it increases to 78.08% in fiscal year 069/70.
vii. Net profit ratio with sales
is 5.15% in fiscal year 2067/068 but it increases to 6.19% in fiscal year
068/069 and it increases to 7.1 in fiscal year 069/70.
viii. The total exp.(direct &
indirect) is 94.85% in fiscal year 2067/068 and it decreases to 93.81% in
fiscal year 068/069.
ix. By analysis G.P. ratio
the fiscal year 2067/068 is good and the fiscal year 069/70 is bad
for KBC.
x. By analysis Net profit
ratio the fiscal year 069/70 is good and the fiscal year 068/069 is bad for
KBC.
xi. It was found that the main
objective of the orgn is to earn profit by keeping satisfy to
workers, costumers.
