One credit sale, three statements, two markets.

A distributor ships ₹12,00,000 of goods on 60-day credit. The goods cost ₹7,50,000. No cash changes hands this month.

• Income statement into equityNet income of ₹3,37,500 is the only thing that moved retained earnings.
• The balance sheet balancesAssets rose ₹4,50,000; liabilities and equity rose ₹4,50,000.
• Profit is not cashOperations produced ₹0 of cash, which is what the cash line says.

25% is the base corporate rate for a domestic company under ₹400 crore of turnover, before surcharge and cess. The tax is accrued, not paid, so it sits in liabilities this month. Figures are the change from this one transaction, nothing else.

A distributor ships $60,000 of goods on 60-day credit. The goods cost $37,500. No cash changes hands this month.

• Income statement into equityNet income of $17,775 is the only thing that moved retained earnings.
• The balance sheet balancesAssets rose $22,500; liabilities and equity rose $22,500.
• Profit is not cashOperations produced $0 of cash, which is what the cash line says.

21% is the federal statutory corporate rate; state income tax is on top of it. The tax is accrued, not paid, so it sits in liabilities this month. Figures are the change from this one transaction, nothing else.