Financial Analysis of Project

Projected Profit & Loss Account--In Lakhs

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year
Capacity Utilization 70% 72% 74% 76% 78% 80% 82% 84%
Sales Or Receipts 41.34375 42.525 43.70625 44.8875 46.06875 47.25 48.43125 49.6125

Manufacturing Expenses

Raw Materials 26.42 27.18 27.93 28.69 29.44 30.20 30.95 31.71
Wages 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Repairs & Maintenance 0.07 0.07 0.07 0.08 0.08 0.08 0.08 0.08
Power & Fuel 1.09 1.12 1.15 1.18 1.21 1.24 1.27 1.30
Other Overhead expenses 0.07 0.07 0.07 0.08 0.08 0.08 0.08 0.08
Depreciation 0.64 0.57 0.52 0.47 0.42 0.38 0.34 0.31
Production Cost Total 28.29 29.02 29.75 30.49 31.23 31.98 32.73 33.49

Administrative Expenses

Salary 5.55 5.83 6.12 6.42 6.75 7.08 7.44 7.81
Telephone Expenses 0.06 0.07 0.07 0.08 0.09 0.10 0.11 0.12
Stationery & Postage 0.10 0.11 0.12 0.13 0.15 0.16 0.18 0.19
Advertisement & Publicity 0.10 0.11 0.12 0.13 0.15 0.16 0.18 0.19

Other Miscellaneous Expenses

 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.16
Rent (if ) 0.60 0.66 0.73 0.80 0.97 0.97 1.06 1.17
Total (B) 6.49 6.86 7.26 7.68 8.12 8.60 9.10 9.64
Interest on Bank Loan @
Term Loan.13 % 0.73 0.57 0.32 0.08 0.00 0.00 0.00 0.00
Working Capital Loan 13.5 % 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

Cost of Sale 35.86 36.79 37.68 38.59 39.70 40.92 42.18 43.48

Preliminary & Pre-Op & Contingency. written-off

 0.20 0.20 0.20 0.00 0.00 0.00 0.00 0.00
Net Profit before Tax 5.28 5.53 5.83 6.30 6.37 6.33 6.25 6.14
Less Tax 0.03 0.05 0.08 0.13 0.14 0.13 0.13 0.11
Net Profit 5.26 5.48 5.74 6.17 6.23 6.19 6.13 6.02
Retained Profit 5.26 10.73 16.48 22.64 28.88 35.07 41.19 47.22