This document presents information from Reliance Industries Limited's income statement for 2010-2011 and 2009-2010. It summarizes key components of the income statement including sales, other income, expenses, profit before and after tax, appropriation of profits including dividends and transfers to reserves. The document outlines key terms related to the income statement such as net turnover, deferred tax, fringe benefits tax, and components of profit appropriation including interim dividends, proposed dividends, and general reserves.

1. PRESENTATTION ON INCOME
STATEMENT of RIL
P R E S E N T E D B Y :
Amit Kumar
Vamsi Krishna
Kritika Jain
Rutvij Bhutaiya
TPR. Akhilesh
Neha Choudhary

2. What is Income statement ?
This is a statement which describe how the revenue is
transformed into net income.
Income = profit + expenses

4. COMPONENTS OF INCOME
STATEMENT
INCOME TAXES
1. SALES 1. CURRENT TAX
2. OTHER INCOME 2. DEFERRED TAX
3. FRINGE BENEFIT
EXPENDITURE TAX APPROPRIATION
1. RAW MATERIAL BALANCE
2. MANUFACTURING AND 1. DIVIDENDS
OTHER EXP. 2. CORPORATE
DIVIDEND TAX
3. GENERAL
4. RESERVES

5. INCOME
Particular 2010-2011 in cr 2009-2010 in cr
Turnover 2,58,651.15 2,00,399.79
Excise Duty / S Tax
Recovered
(10,481.15) (7,938.77)
Net Turnover 2,48,170.00 1,92,461.02
Other Income
Dividend:
Interest:
Profit on Sale of
Current Investments
& Fixed Assets
3,051.71 2,460.32
Variation in Stocks 3,243.05 3,947.89
2,54,464.76 1,98,869.23

6. • Export incentives::Monetary, tax or legal incentives designed to encourage
businesses to competitive in global market.
• Non-trade Investments:: Shares and bonds which are not related to business
thats NON TRADE INVESTMENT

7. Expenditure
Expenditure 2010-2011
in cr
2009-2010
in cr
Purchases
Interest and Finance
1,464.31 2,995.82
Manufacturing and Other
Expenses
2,11,823.01 1,62,832.23
Charges 2,327.62 1,997.21
Depreciation 16,241.33 13,477.01
Transferred from
Revaluation Reserve
(2,633.75) (2,980.48)
2,29,222.52 1,78,321.79

8. P R O F I T B E F O R E
T A X• A profitability measure that looks at a company's
profits before the company has to pay corporate
income tax.
• PBT exists because tax expense is constantly
changing and taking it out helps to give an investor a
good idea of changes in a company's profits or
earnings from year to year.

9. P R O F I T A F T E R
T A X
• It the net profit earned by the company after deducting all
expenses like interest, depreciation and tax.
Particular 2010-2011 in cr 2009-2010 in cr
Profit before Tax 25,242.24 20,547.44
Provision for Current
Tax
4,320.44 3,111.77
Provision for Deferred
Tax
635.50 1,200.00
Profit after Tax 20,286.30 16,235.67

10. TAX
• A compulsory contribution to state revenue, levied by
the government on workers' income and business
profits or added to the cost of some
goods, services, and transactions.
• It can be broadly classified into
1. Current tax
2. Deferred tax
3. Fringe Benefit tax

11. • Deferred Tax: It is an accounting concept
known as future income taxes, meaning a future
tax liability or asset.
• Fringe Benefit Tax: Those which are provided by
an employee to his employer and which are
exempted from the taxes under certain condition
are met.
• Some of the FBT are:
Health insurance
Employee discount

12. Balance available for appropriation
• Appropriation in accounting terms means Setting aside Money for a
specific purpose.
• Using P & L Appropriation account would enable handling all the
information relating to appropriation of profits through a separate
account.
Particular 2010-2011 in cr 2009-2010 in cr
General Reserve 16,000.00 14,000.00
Debenture Reserve ______ 189.50
Proposed Dividend
on Equity Shares
2,384.99 2,084.67
Tax on Dividend 386.90 346.24
18,771.89 16,620.41
Bal carried to BS 6,513.86 4,999.45

13. • Interim Dividend:
A dividend which is declared and distributed before the company’s annual
earnings have been calculated and it is often distributed quarterly.
• Proposed Dividend:
It is a way in which a company shares its profit to its shareholders. It is
given as a percentage of the base / face value of the share. Each shareholder
gets an amount depending upon the number of shares it has. The amount is
decided on the Annual General Meeting (AGM) of the company. It is a
current liability for a company as it has to be paid by the company during
the same accounting period.
• General Reserve:
In short is the part of reserve amount kept by the company out of its
profits for future purpose.
Usually, companies keep 20% aside the general reserves out of the total
profit earned for a particular period.