Profit & Loss Statement Generator — Free P&L Statement Maker for Indian Companies
This Profit & Loss Statement Generator creates formatted income statements aligned with Schedule III of the Companies Act, 2013. Enter your revenue, cost of goods sold, operating expenses, other income, and tax provisions to instantly generate a professional P&L statement with automatic calculations for gross profit, operating profit, PBT, and net profit after tax. Built by a practising Chartered Accountant for Indian businesses — Private Limited, LLP, OPC, and sole proprietors.
Generate Profit & Loss Statement
How to Use This Profit & Loss Statement Generator
This free tool helps Indian businesses generate professional Profit & Loss statements aligned with MCA requirements. Follow these steps:
Step 1: Enter Company Details
Enter your company or business name and the accounting period end date (e.g., 31st March 2026). This information appears in the header of the generated statement.
Step 2: Choose Statement Format
Schedule III format follows the structure prescribed under the Companies Act, 2013 and is suitable for Private Limited Companies, OPCs, and Public Companies filing with the Registrar of Companies. Simple format is ideal for sole proprietors, freelancers, and partnerships for internal tracking and Income Tax Return preparation.
Step 3: Add Line Items
Enter revenue from operations (product sales, service income), other income (interest, rent, dividends), all expense categories (materials, employee costs, depreciation, finance costs), and tax provisions. Use the "+ Add" buttons to include additional line items specific to your business.
Step 4: Generate & Download
Click "Generate P&L Statement" to view the formatted statement with automatic calculations for gross profit, operating profit, profit before tax, and net profit after tax. Download as CSV for Excel or print directly.
CA Tip: Always reconcile your P&L figures with your trial balance before generating the final statement. The revenue and expense totals must match the ledger balances in your books of accounts. Cross-verify with GSTR-9 figures for GST-registered businesses to ensure consistency across statutory filings.
P&L Statement Format Under Schedule III (Companies Act, 2013)
The Ministry of Corporate Affairs prescribes the format for the Statement of Profit and Loss under Schedule III of the Companies Act, 2013. Section 129 mandates that every company's financial statements must give a "true and fair view" and comply with applicable Accounting Standards notified by the Central Government.
Division I vs Division II
Division I applies to companies following Indian Accounting Standards (AS) under the Companies (Accounting Standards) Rules, 2006. Division II applies to companies following Ind AS under the Companies (Indian Accounting Standards) Rules, 2015. Division II additionally requires disclosure of Other Comprehensive Income (OCI) and a Statement of Changes in Equity.
Prescribed Line Items
| Sl. No. | Particulars | Notes |
|---|---|---|
| I | Revenue from Operations | Sale of products, sale of services, other operating revenues |
| II | Other Income | Interest, dividends, rent, gain on sale of assets |
| III | Total Income (I + II) | — |
| IV | Expenses | — |
| Cost of materials consumed | Raw materials, packing materials | |
| Purchases of stock-in-trade | Goods purchased for resale | |
| Changes in inventories | Opening stock minus closing stock | |
| Employee benefit expense | Salaries, wages, PF, gratuity, bonus | |
| Finance costs | Interest expense, loan processing fees | |
| Depreciation & amortisation | As per Schedule II rates | |
| Other expenses | Rent, utilities, legal, repairs, travel | |
| V | Total Expenses | — |
| VI | Profit Before Tax (III − V) | — |
| VII | Tax Expense | Current tax + Deferred tax |
| VIII | Profit After Tax (VI − VII) | — |
| IX | Other Comprehensive Income | Ind AS companies only (Division II) |
| X | Total Comprehensive Income (VIII + IX) | — |
Note: Schedule III requires that every line item be cross-referenced to supporting notes to accounts. Additional line items, headings, and sub-totals must be presented when relevant to understanding the company's financial performance. The MCA has amended Schedule III multiple times — most recently in March 2021 — always verify the latest format at mca.gov.in.
Understanding Key P&L Line Items
Revenue from Operations
This is the topline of your P&L — income earned from the primary business activities. For a manufacturing company, it includes sale of manufactured goods. For a service provider, it includes consulting fees, subscription revenue, or professional service charges. Schedule III requires separate disclosure of: (a) sale of products, (b) sale of services, and (c) other operating revenues. Revenue recognition follows Ind AS 115 (Revenue from Contracts with Customers) for Ind AS companies.
Cost of Materials Consumed
This represents the cost of raw materials and components used in manufacturing or production. The formula is: Opening Stock + Purchases − Closing Stock. For trading businesses, "Purchases of Stock-in-Trade" captures the cost of goods bought for resale. Both must be disclosed separately under Schedule III.
= Opening Stock of Materials + Purchases during the year − Closing Stock of Materials
Example: Opening = ₹5,00,000 + Purchases = ₹20,00,000 − Closing = ₹4,00,000
Cost of Materials Consumed = ₹21,00,000
Employee Benefit Expense
This includes all personnel costs: salaries and wages, contribution to provident fund (EPF at 12% of basic), ESIC contributions, gratuity provision under the Payment of Gratuity Act, 1972, leave encashment, bonus under the Payment of Bonus Act, and staff welfare expenses. For companies following Ind AS, actuarial gains and losses on defined benefit plans (like gratuity) are reported through OCI rather than the P&L.
Finance Costs
Finance costs include interest on term loans, working capital interest, interest on debentures, loan processing fees, bank charges, and interest on delayed payment of taxes. Under Ind AS 23 (Borrowing Costs), interest directly attributable to qualifying assets must be capitalised and not charged to the P&L. Always separate borrowing costs on the face of the P&L as prescribed by Schedule III.
Depreciation & Amortisation
Depreciation on tangible assets follows the useful life prescribed under Schedule II of the Companies Act, 2013 (or rates under the Income Tax Act for tax purposes). Amortisation applies to intangible assets like software, patents, and trademarks. The difference between book depreciation (Companies Act) and tax depreciation (Income Tax Act) gives rise to deferred tax, which is disclosed separately under tax expense.
Other Expenses
This is a catch-all category covering rent, electricity, water, repairs and maintenance, legal and professional fees, communication expenses, travel and conveyance, printing and stationery, insurance, rates and taxes, and CSR expenditure (mandatory for companies meeting the criteria under Section 135). Schedule III requires that any individual item exceeding 1% of revenue or ₹10 lakhs (whichever is higher) must be disclosed separately.
Filing & Compliance Requirements
MCA Filing (Form AOC-4)
Under Section 137 of the Companies Act, 2013, every company must file its financial statements (including the P&L statement) with the Registrar of Companies in e-Form AOC-4. The filing deadline is within 30 days of the AGM. Small companies and One Person Companies file in AOC-4 CFS format. Companies meeting specified criteria must file in XBRL format as per the Companies (Filing in XBRL) Rules, 2015.
Statutory Audit Requirement
Under Section 143, the statutory auditor verifies the P&L statement and issues an audit report opining whether the financial statements give a true and fair view. The audit report is filed with the financial statements in AOC-4. Companies must appoint an auditor under Section 139 — typically a Chartered Accountant or firm registered with the ICAI.
Tax Audit (Section 44AB)
If your business turnover exceeds ₹1 crore (₹10 crore if cash receipts and payments are within 5% of turnover) or professional receipts exceed ₹75 lakhs, a tax audit under Section 44AB of the Income Tax Act is required. The auditor verifies the P&L account and certifies it in Form 3CB/3CD. The due date for tax audit report filing is 30th September of the assessment year.
GST Reconciliation
For GST-registered businesses, the revenue figures in the P&L must reconcile with turnover declared in GSTR-9 (annual return) and GSTR-9C (reconciliation statement). Discrepancies between books of accounts and GST returns can trigger scrutiny notices from the GST authorities. Our tool helps you prepare a clean P&L that feeds into a consistent compliance trail.
Need Expert Help with Financial Statements? Patron Accounting's team of Chartered Accountants prepares audit-ready financial statements, handles MCA filing (AOC-4), statutory audits, and tax audits for companies across India. Get expert assistance →
How to Analyse a Profit & Loss Statement
Gross Profit Margin
Gross Profit Margin = (Revenue − COGS) ÷ Revenue × 100. This ratio reveals how efficiently a business converts raw materials or purchases into revenue. A declining gross margin may indicate rising input costs, pricing pressure, or inventory inefficiency. Indian manufacturing companies typically target gross margins of 25–40% depending on the industry.
Example: Revenue = ₹50,00,000, COGS = ₹30,00,000
Gross Margin = (₹50L − ₹30L) ÷ ₹50L × 100 = 40%
Operating Profit Margin (EBIT Margin)
Operating Profit = Gross Profit − Operating Expenses (employee costs, depreciation, other expenses, excluding finance costs and tax). This shows profitability from core operations. It is the most important metric for comparing companies within the same industry, as it strips out the effects of capital structure and tax rates.
Net Profit Margin
Net Profit Margin = Net Profit After Tax ÷ Revenue × 100. This is the bottom-line profitability metric. For Indian SMEs, a net profit margin of 8–15% is considered healthy. Publicly listed companies disclose EPS (Earnings Per Share) calculated from net profit, which is a key metric for investors and is required under Schedule III.
Common-Size Analysis
Expressing each line item as a percentage of revenue makes it easy to compare performance across periods or with industry peers. For instance, if employee costs are 35% of revenue this year vs 30% last year, it signals rising labour costs that may need attention. Lenders and investors regularly perform common-size analysis when evaluating loan applications or funding proposals.
