Net profit represents the excess of revenue over expenses during a particular accounting period. When the result of this computation is negative, it is referred to as a net loss. It may be noted that the net profit to be shown in Clause 40 is net profit before tax. There should be consistency between the numerator and the denominator while calculating the ratios. Any significant deviation thereof should be pointed out in Para 3 of Form 3CA or Para 5 of Form 3CB.