Financial Analysis - A fairytale lore towards analysing different aspects of numbers of the company - Revenue - Part 2/n

It is possible that the method of calculation of revenue could have changed over the years so it is important for us to make sure that the number that has been taken over the years are comparable in nature, some of the following transitions includes:

• Changing from method of calculation of revenue from percentage of completion method to complete contract method (IND-AS 115).
• Prior to 2016 a line item of excise duty was included but post 2016 that line item has been excluded from income statement rather revenue reported directly after deduction of GST ( in 2017 in some cases excise duty can be seen still in the income statement because it came somewhere around July so the 3 month Of excise duty still has to be applicable).

• Sometimes revenue from operation might include of one time line item that may show the revenue from operation to be a much higher number than it actually is so in order for us to make the number comparable we should deduct any such line items.

• In tobacco, cigarette and liquor businesses align item of excise duty is still visible mainly because this is not excise duty on the behalf of central government this is the state excise duty and in order for us to calculate the revenue we should deduct these as well