GP & NP % Increase

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This discussion explores acceptable increases in Gross Profit (GP) and Net Profit (NP) percentages compared to the previous financial year, especially when turnover has increased. While a 15-20% rise might be considered, the key is that these increases should be supported by the company's books of accounts. Even if the variance exceeds 10%, it can be accepted if it's on the higher side and verifiable.

Nisha Kathuria

Nisha Kathuria (Querist)
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03 April 2023 Dear Sir

Please provide your valuable suggestion how much GP and NP we can increase from previous year if turnover increase from previous year Rs.50 Lacs

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 April 2023 Check actual figures as per books of accounts.
The increase in turnover may not increase the percentages of GP &/or NP; though minor variation is acceptable.

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Nisha Kathuria

Nisha Kathuria (Querist)
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03 April 2023 Sir,
15% Or 20% GP and NP increase % acceptable
FY 2021-22 GP 8.06 and NP 4.84
FY 2022-23 GP 9.67% and NP 5.56%

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 April 2023 Though the variance is more than 10%, but being on upper side, it will be accepted with reference from books of accounts.

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