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Meaning of a line

21 June 2021

On 31st March, 2019 the net profit (before taking into account the provisions of deed) was ₹2,40,000.
I am confused that what the meaning is

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 21 June 2021

I think it would mean that provision for some act has not been taken into account while arriving at net profit. In other words, net profit would be impacted if such provision is considered.

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Aryan Roy (16 Points)
Replied 21 June 2021

Sry maam but can u plz elaborate

CMA Poornima Madhava (CMA) (13097 Points)
Replied 21 June 2021

As I understand, probably a provision for something needs to be made which is not yet made.

For example, let's assume the net profit (before making provision for salary) is Rs.10 lacs and provision to be made for salary is Rs.1 lac. In this case, once provision for salary is made, the net profit would be Rs.9 lacs.

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