FINANCIAL ANALYSIS OF LAYER BIRD FARM:

I Fixed Capital Quantity Rate

A. Preperation of site
1 Land and Building 5000 sq ft
2 Rent Deposit
3 Electrification

B. Furniture:

1 Feeding bowls 50 20
2 Water bowls 50 20
3 Other utensils 50 25
4 Almarah 1 4,000
5 Steel Rack 1 1,500
6 Table 1 700
7 Chairs 4 300

Fixed Capital = A + B

II Working Capital
A. Procurement and other expenses

1 Eggs 3000 6.25

2 Hatching charges 3000 1.00
3 Sexing 3000 0.10
4 Vaccination 3000 1.00
5 Transportation 3000 0.50
6 Feed 3000 16.00

B. Other Expenses:
1 Rent
2 Electricity Charges
3 Office maintenance, TA etc
Working capital for one month (A+B)

Total Capital Investment

Total Working capital for 3 months 2 82,750
 Total Fixed Capital
Total Capital Investment in the Project
say approx

III SOURCE OF FINANCE:

A. Beneficiery Contribution
B. Loan from Bank
C. Subsidy
Total

IV FINANCIAL ANALYSIS:

A. Cost Of Production
1 Total recurring expenses per year 12 82,750
2 depreciation @ 20% on dimnishing value of 28150
3 Loan repayment and monthly interest 1,960
4 Risk factor @ 15 % 74,550 0.15
Total

B. Turnover per year

1 Net avg Income per year
45 day old chicks @ Rs.40/-, 12 batches of 3000 birds 3000 40
12 120,000
2 Net Average profit per year
(Income - Expenses) 1,440,000

3 Net Profit Per Person Per Month 283,660 60

5 persons X 12 months = 60 man months
C. Net profit ratio
(( Net avg profit per year / Net avg income per year )*100)

D. Rate Of Return
(( Net avg profit per year / Total investment )*100 )

E. Debt Servicing Ratio

(( Total Loan amount / Net Profit In 5 years )*100 )

F. Break Even Point

1 BEP in %
(a) Fixed Cost
 ( i ) Depreciation
( ii ) loan repayment
( iii ) Total fixed expenses
Total

(b) Net avg profit per year

BEP in %

2 BEP in time
As per the cash flow patterns its noted that there is a
positve cashflow from the 4th month onwards and
the total cumulative profit crosses the
total investment in the 9th month, therefore the 9th
month can be said as the BEP in Time
RM:

Amount Total Amount

15,000
2,500 17,500

1,000
1,000
1,250
4,000
1,500
700
1,200 10,650

28,150

18,750
3,000
300
3,000
1,500
48,000 74,550

5,000
200
3,000 8,200
82,750

165,500
 28,150
193,650
200,000

10,000
90,000
100,000
200,000

993,000
5,630
12 23,520
12 134,190
1,156,340

120,000
1,440,000

1,156,340 283,660

4,728 4,728

19.70%

141.83%

4.26%
 5,630
1,960
993,000
1,000,590

283,660

28.35%
 Less Cumulative
Month Net Monthly Income Expenses Monthly Profit Profit

1 0 82750 -82750 -82750

2 120000 82750 37250 -45500
3 120000 82750 37250 -8250
4 120000 82750 37250 29000
5 120000 82750 37250 66250
6 120000 82750 37250 103500
7 120000 82750 37250 140750
8 120000 82750 37250 178000
9 120000 82750 37250 215250
10 120000 82750 37250 252500
11 120000 82750 37250 289750
12 120000 82750 37250 327000
13 120000 82750 37250 364250
14 120000 82750 37250 401500
15 120000 82750 37250 438750
16 120000 82750 37250 476000
17 120000 82750 37250 513250
18 120000 82750 37250 550500
19 120000 82750 37250 587750
20 120000 82750 37250 625000
21 120000 82750 37250 662250
22 120000 82750 37250 699500
23 120000 82750 37250 736750
24 120000 82750 37250 774000
25 120000 82750 37250 811250
26 120000 82750 37250 848500
27 120000 82750 37250 885750
28 120000 82750 37250 923000
29 120000 82750 37250 960250
30 120000 82750 37250 997500
31 120000 82750 37250 1034750
32 120000 82750 37250 1072000
33 120000 82750 37250 1109250
34 120000 82750 37250 1146500
35 120000 82750 37250 1183750
36 120000 82750 37250 1221000
37 120000 82750 37250 1258250
38 120000 82750 37250 1295500
39 120000 82750 37250 1332750
40 120000 82750 37250 1370000
41 120000 82750 37250 1407250
42 120000 82750 37250 1444500
43 120000 82750 37250 1481750
44 120000 82750 37250 1519000
 45 120000 82750 37250 1556250
46 120000 82750 37250 1593500
47 120000 82750 37250 1630750
48 120000 82750 37250 1668000
49 120000 82750 37250 1705250
50 120000 82750 37250 1742500
51 120000 82750 37250 1779750
52 120000 82750 37250 1817000
53 120000 82750 37250 1854250
54 120000 82750 37250 1891500
55 120000 82750 37250 1928750
56 120000 82750 37250 1966000
57 120000 82750 37250 2003250
58 120000 82750 37250 2040500
59 120000 82750 37250 2077750
60 120000 82750 37250 2115000

45%
IRR 45%
NPV 143,928.86 142,364.02

*1 Assuming loan amount as 90000

*2 Assuming interest at the rate of 11
*3 Assuming loan repayment period as 5
*4 Assuming depreciation for value 28150
*5 Assuming depreciation at the rate of 20%
*6 Assuming depreciation for the period of 1year

for 2nd year 769496

for 3rd year 1217396.8
for 4th year 1665117.44
for 5th year 2112693.952

*7 As per the table its noted that though the positive cashflow happens after 4th month
The total investment is covered by the 9th month so it can be assumed as the BEP
*8 NPV has been calculated at an assumed rate of 15%
*9 IRR has been calculated at an assumed rate of 13%

*10 DSCR
 Less
Depreciation
PBDT * PAD
@ 20 %pa

327000 5630 321370

774000 4504 769496

1221000 3603.2 1217396.8

1668000 2882.56 1665117.44

2115000 2306.048 2112693.952

2112694 90000 4.26

7080000