Financial Analysis

Cost of Production (per year)

Sl.no

 Description Amount Rs
1 Total recurring cost 279200
2 Depreciation on machinery @10% 8850
3 Depreciation on furniture @20% 9600
4 Interest on Term Loan @14% 15288
5 Interest on Working Capital Loan @14% 31270
Grand total 344208

Turnover (per year)

SI.NO Items Qty Rate Rs Total Rs
1 Churidar 800 600 480000
2 Nighty 800 200 160000
Grand total 640000

Net Profit (per year)

Turnover 640000
Cost of production(-) 344208
Total 295792

Net Profit Ratio

Net Profit Ratio

(Net profit per year/Turnover per year)x100 = 46.2175 %

Break even point

Break even point

Sl.no

 Description Amount Rs
1 Rent for one year 24000
2 Total depreciation 18450
3 40% salary and wages 168000
4 40% of utilities and other contingent expenses 24960
Grand total 235410

B.E.P = (Fixed cost x 100)/(Fixed cost+Net profit)

= (235410x100)/(235410+295792)

= 23541000/531202

= 44.316%

The Project is Economically viable and Technically feasible. The project is submitted for approval.