FINANCIAL ANALYSIS

BALANCE SHEET (Construction Period)

Liabilities
Promoters Capital
Parent Company Captial

Amount
Assets
8000000 Machinery
42000000 Furniture
Cash In Hand
Cash at Bank

Amount
2000000
1500000
8000000
38500000

50000000

50000000

COST SHEET (Operating Year)

Particulars

Cost Per Unit

Total Cost

Raw Material
Direct Labour
Direct Expenses
Prime Cost

985
40
25
950

39400000
1600000
1000000
42000000

Power and Fuel

Repair and Maintenance
Depreciation Of Machinery
Depreciation Of Furniture
Loose Tools

15
4
0.47
0.31
0.01

600000
160000
18800
12400
400

Work Cost

969.79

42791600

Salaries of supervisor
Remuneration to MD
Cost of production

2
13
984.79

80000
520000
43391600

Advertisement expenses
Sales Commission
Travelling Expenses

5
2
8

4923950
38467650
200000
80000
320000

Cost of Sales

1099.79

39067650

Profit

400

14000000

Less: Closing Stock

(984.79*5000)

60

Selling price

52500000

1500

MANUFACTURING ACCOUNT
Particulars
To Work in
progress(opening)
TO Raw Materials
To Direct Wages
To Direct Expenses
To Factory Overheads
Power and fuel

Amount
Nil

Particulars

Amount

By Work in Progress
39400000 By Cost of Production
1600000
1000000
600000
42600000

Nil
42600000

42600000

TRADING and P&L A/c

Particulars
To cost of Production
To Gross Profit c/d
To Salaries
To Advertisement Exp
To Depreciation: Machinery
To Depreciation: Furniture
To Sales Commission
To Repair and Maintenance
To Travelling Expenses
To provision of tax
To Rent
To selling and distribution Exp
To profit c/d

To Reserve
To Net profit

Liabilities
Capital

Amount
Particulars
42600000 By Sales
14823950 By closing Stock
57423950
600000 By gross profit b/d
200000
18800
12400
80000
160000
320000
3150465
2400000
500000
7351085
14823950
By profit b/d from P&L
367554
a/c
6983531
7351085

Amount
8000000

Assets
Machinery

61

Amount
52500000
4923950
57423950
14823950

14823950
7351085
7351085

Amount
2000000

Add: Net Profit

Reserves
Provision of Tax

6983531

14983531 Less :- Dep @ 10%

367554 Furniture
3150465 Less :- Dep@ 10%
Closing Stock
Cash In Hand
Cash at Bank
Debtors

200000
1500000
150000

1800000
1000000
4923950
8000000
1000000
1777600

18501550

18501550

CASH FLOW
Particulars
Initial investment
Revenues
Operating cost
Business overhead
Depriciation
PBT
Tax @ 30%
PAT
+Depriciation
Operating cash
inflow
Net cash flow
outflow

0
50000000

52500000
37676050
4291200
31200
10501550
3150465
7351085
31200

58800000
41066894
4677408
31200
13024498
39073494
9117148
31200

66444000
44762915
5098374
31200
16551511
4965453
11586057
31200

76410600
48791576
5557228
31200
22024596
6607379
15417217
31200

90164508
53182818
6057379
31200
31493111
9447933
22045178
31200

7382285

9148348 11617257 15448417 22076378

50000000

Calculation of NPV
[7388285 x PVIF(15%, 1yr)+9148348 x PVIF(15%,2yr)+11617257 x PVIF(15%,3yr)+15448417 x
PVIF(15%,4yr)+22076378 x PVIF(15%,5yr)]-50000000
=[7388285 x 0.952+9148348 x 0.907+11617257 x0.864 +15448417 x 0.823+22076378 x0.784]-50000000
=[7027935.32+8297551.636+10037310.048+12714047.191+17307880.352]-50000000
=55384724.547-50000000
=5384724.547

62

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