Financial Analysis
Cost of Production (Per Annum)
Total recurring cost per year( i.e Working Capital for 12 months) |
310000*12
months=37,20,200/- |
| Depreciation on machinery & Equipment ( @ 10% ) | 100000*10%=10,000/- |
| Depreciation on Building ( @ 5 % ) | 500000*5%=25,000/- |
Interest on total investment ( @ 10% ) [ Bank Loan Amount |
1147500*10%=1,14,750/- |
| Grand Total: | 38,69,950/- |
sales proceeds (per annum)
| 1 | Land | Free hold |
| 2 | Building | Rented |
| 3 | Plant & Machinery | Rs.3,00,000.00 |
| 4 | Working Capital | Rs.3,29,200.00 |
| Total | Rs. |
Profit Analysis (P.A.)
Net Profit =[ Sales- Cost of Production ]= 47,39,280-38,69,950= 8,69,330. Income Tax at 30%=2,60,799. Profit after tax=[8,69,330-2,60,799] =6,08,531/-
Rate of Return
On total sale =[ Profit * 100/Cost of Production] 6,08,531x100/38,69,950= 15.72 %. On total capital investment:= [ Profit * 100/Total Capital Investment] 6,08,531x100/15,30,000= 39.77 %
Break Even Analysis
Fixed Cost
| Rent [ own building] | Rs: 0/- |
| Total Depreciation[ Machinery & Building] | Rs: 35,000/- |
| Interest on Total Investment | Rs: 1,14,750/- |
| 40 % of Salary & Wages[ 40000*12/ 40%] | Rs: 1,92,000/- |
40% of utilities & other contingent expenses [20000*12/ 40%] |
Rs: 96,000/- |
| Total: | Rs: 4,37,750 |
Net Profit =6,08,531/-
Fixed Cost: 4,37,750/-
B.E.P= 4,37,750 x 100 / 4,37,750+6,08,531 =41.84 %
