OPENING BALANCE SHEET

LIABILITIES AMOUNT(Rs.) ASSETS

SHARE CAPITAL 138000 BUILDING

LONG TERM LOAN 322000 PLANT & EQUIPMENT
CASH

TOTAL 460000 TOTAL

CLOSING BALANCE SHEET

LIABILITIES AMOUNT (Rs.) ASSETS

SHARE CAPITAL 138000 BUILDING

RESERVE FUND 69938.33 PLANT & EQUIPMENT
LONG TERM LOAN 322000 DEBTORS
CASH

TOTAL 529938.33 TOTAL

AMOUNT(Rs.)

100000
350000
10000

460000

AMOUNT (Rs.)

90000.00
262500.00
126900
50538.33

529938.33
Sl.No. Details
A Investment
A1 Land
A2 Building
A3 Plant and Machinery
Total Investment
B Sales
B1 Capacity Utilisation (%)
B2 Production of Kernel(in Kgs)
B3 Selling Price (Rs./Kg)
Sales Revenue
C Cost of Production and Sales
C1 Raw Materials
C2 Power & Fuel
C3 Salaries(1Sec@Rs5000, 1guard@Rs1800PM for 12 months)
C4 Wages(40 labourers) @Rs1800 PM(9 months)
C5 Factory Overheads
C6 Selling Expenses
C7 Interest on Working Capital Loan
Total Cost of Production and Sales
D Profit Before Depreciation, Interest and Tax (PBDIT)
E Depreciation
F Profit Before Interest (PBI)
G Interest on Term Loan
H Profit after interest and depreciation
Dividend
Reserve Fund

DETAILS OF DEPRECIATION
1 Value of buildings at yr beginning
2 Depreciation on buildings
3 Value of P&M at yr beginning
 4 Depreciation on P&M
5 Total Depreciation

Sl.No. Details
1 Total Variable Cost
2 Total Fixed Cost
3 Sales
4 Contribution/ Kg
5 Break Even Quantity (Kg)
 Year 0 Year 1

100000.00
350000.00
450000.00

634500.00

375000.00
0.00
81600.00
648000.00
50000.00
50000.00
1341.67
1205941.67
-571441.67
97500.00
-668941.67
35420.00
-704361.67
13800.00
-718161.67

100000.00
0.10 10000.00
350000.00
 0.25 87500.00
97500.00

M-00 M-01
952341.67
269500.00
634500.00
#DIV/0!
#DIV/0!
HONEY: PROFIT AND LOSS ACCOUNT

Sales 634500.00
Less:
Raw Material 375000.00
Power & Fuel 500.00
Salaries 30000.00
Wages 2500.00
Factory Overheads 3500.00
Depreciation 97500.00
Selling Expenses 5000.00
Interest on loan@11% 35420.00
Interest on short term loan 1341.67
Total Expenses 550761.67

Net Profit 83738.33

Less: Dividend 13800.00
Reserve Fund 69938.33
HONEY: CASH FLOW Aggregated for the Year March April

Purchase price per kg of HONEY 75.0 75.0

Raw Material 375000.0 75000.0 75000.0
Power & Fuel 500.0 100.0 100.0
Salaries 30000.0 6000.0 6000.0
Wages(20 labourers) @Rs800 PM(8 months) 2500.0 500.0 500.0
Manufaturing Overheads(bottling & other expenses) 3500.0 700.0 700.0
Selling Expenses(distributed over 8 months) 5000.0 1000.0 1000.0
Interest on short term loan @14%pa 1341.7 875.0
Interest on loan@11% 35420.0
Total Expenses 453261.7 83300.0 84175.0

Sales Quantity 4700.0 940.0 940.0

Sales @ Rs 135/kg of HONEY (95% recovery) one month credit 634500.0 126900.0 126900.0
Cash received from Debtors 507600.0 126900.0
Opening Cash Balance 10000.0 10000.0 1700.0
Total Receipts 10000.0 128600.0
Cash surplus or deficit -73300.0 44425.0
Borrowings 75000.0 75000.0 0.0
Loan Payments 75000.0 0.0 35000.0
Ending cash Balance 99758.3 1700.0 9425.0

Profit before depreciation 181238.3

Less:- Depreciation 97500.0
Profit after interest & depreciation 83738.3
Less:- Dividend @ 10% 10000.0
Profit after dividend 73738.3
Calculations for interest
75000.0
Borrowings 75000.0 75000.0 0.0
Loan Payments 1341.7 0.0 35000.0
Net borrowings 75000.0 40000.0
Interest Cost 875.0 466.7
May June July August September October November December January February

0.0 0.0 0.0 0.0 0.0 0.0 0.0 75.0 75.0 75.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 75000.0 75000.0 75000.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 100.0 100.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 6000.0 6000.0 6000.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 500.0 500.0 500.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 700.0 700.0 700.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 1000.0 1000.0 1000.0
466.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

466.7 0.0 0.0 0.0 0.0 0.0 0.0 83300.0 83300.0 83300.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 940.0 940.0 940.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 126900.0 126900.0 126900.0
126900.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 126900.0 126900.0
9425.0 95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 12558.3 56158.3
136325.0 95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 139458.3 183058.3
135858.3 95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 12558.3 56158.3 99758.3
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
40000.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 95858.3 12558.3 56158.3 99758.3
interest 35420.0
dividend 13800.0

loan 0.0
49220.0
Ending Cash 50538.3
 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
40000.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sl.No. Details M-00 M-01 M-02 M-03
A Investment
A1 Land -1.20
A2 Building -6.00
A3 Plant and Machinery -1.00
A5 Preliminary Expenses -0.50
A7 Working Capital Margin -15.49
Total Investment -24.19
B Sales
B1 Capacity Utilisation (%) 80.00 80.00 80.00
B2 Production of Kernel(in Kgs) 32400 32400 32400
B3 Selling Price (Rs./Kg) 200 210 221
Sales Revenue 64.80 68.04 71.44
C Cost of Production and Sales
C1 Raw Materials 49.25 51.71 54.30
C2 Power & Fuel 0.65 0.68 0.71
C3 Salaries(1Sec@Rs5000, 1guard@Rs1800PM for 12 months) 0.82 0.82 0.82
C4 Wages(40 labourers) @Rs1800 PM(9 months) 6.48 6.48 6.48
C5 Factory Overheads 0.50 0.53 0.55
C6 Selling Expenses 0.50 0.55 0.61
C7 Interest on Working Capital Loan 0.01 6.59 6.92
Total Cost of Production and Sales 58.21 67.35 70.39
D Profit Before Depreciation, Interest and Tax (PBDIT) 6.59 0.69 1.06
E Depreciation 0.85 0.73 0.63
F Profit Before Interest and Tax (PBIT) 5.74 -0.04 0.43
G Interest on Term Loan #REF! 1.25 1.13
H Profit Before Tax (PBT) #REF! -1.29 -0.70
I Write-off of preliminary expenses 0.05 0.05 0.05
J PBT less write-off of prel exp. #REF! -1.34 -0.75
K Unabsorbed loss of previous years 0.00 0.17 0.00
L Gross Income #REF! -1.51 -0.75
N Total Income #REF! -1.51 -0.75
O Income-tax Rate (%) 36.75 36.75 36.75
P Income-tax 0.00 -0.56 -0.28
Q Profit after tax (PAT) #REF! -0.96 -0.48
R Net Salvage Value of fixed assets
S Net Recovery of Working Capital Margin
T Net Cash Flow (NCF) -24.19 #REF! 0.61 0.92
U Present Value (PV) of Net Cash Flows -24.19 #REF!
V Net Present Value (NPV) #REF!
WORKING CAPITAL ESTIMATES
Norm in
months

1 Raw materials 49.25 51.71 54.30

5 Total current assets 49.25 51.71 54.30
6 Working capital margin @ 25% of total current assets 12.31 12.93 13.57
7 Trade credit 0.50 2.05 2.15 2.26
8 Bank credit for working capital 34.88 36.63 38.46
9 Interest rate on Working Capital Loan (%) 18.00 18.00 18.00
10 Interest on Working Capital Loan 6.28 6.59 6.92
DETAILS OF DEPRECIATION
 1 Value of buildings at yr beginning 6.00 5.40 4.86
2 Depreciation on buildings 10.00 0.60 0.54 0.49
3 Value of P&M at yr beginning 1.00 0.75 0.56
4 Depreciation on P&M 25.00 0.25 0.19 0.14
5 Total Depreciation 0.85 0.73 0.63
INTEREST ON TERM LOANS
1 Loan at the beginning of first half 10.43 10.43 9.78
2 Loan repayable during first half 0.00 0.00 0.65
3 Loan at the beginning of second half 10.43 10.43 9.13
4 Loan repayable during second half 0.00 0.65 0.65
5 Annual interest rate (%) 12.00 12.00 12.00
6 Annual interest 1.25 1.25 1.13
COST OF CAPITAL
1 Promoter's Equity 6.00 6.00 6.00
2 Term Loan 10.43 10.43 9.46
3 Khadi Village Industrial C 7.00 7.00 7.00
4 Dividend Rate (%) 0.00 12.00 12.00
5 Weighted cost of capital 4.82 9.20 9.30
6 Weighted average cost of capital 11.83

Sl.No. Details M-00 M-01 M-02 M-03

1 Total Variable Cost 55.41 64.54 67.55
2 Total Fixed Cost 2.83 2.72 2.64
3 Sales 64.80 64.80 64.80
4 Contribution/ Kg 0.00029 0.00029 0.00029
5 Break Even Quantity (Kg) 9762 9402 9119
M-04 M-05 M-06 M-07 M-08 M-09 M-10

80.00 80.00 80.00 80.00 80.00 80.00 80.00

32400 32400 32400 32400 32400 32400 32400
232 243 255 268 281 295 310
75.01 78.76 82.70 86.84 91.18 95.74 100.53

57.01 59.86 62.85 66.00 69.30 72.76 76.40

0.75 0.79 0.83 0.87 0.91 0.96 1.01
0.82 0.82 0.82 0.82 0.82 0.82 0.82
6.48 6.48 6.48 6.48 6.48 6.48 6.48
0.58 0.61 0.64 0.67 0.70 0.74 0.78
0.67 0.73 0.81 0.89 0.97 1.07 1.18
7.27 7.63 8.01 8.41 8.84 9.28 9.74
73.57 76.92 80.43 84.13 88.02 92.10 96.40
1.44 1.85 2.27 2.71 3.16 3.64 4.13
0.54 0.47 0.41 0.36 0.32 0.28 0.25
0.90 1.38 1.85 2.34 2.84 3.35 3.88
0.98 0.82 0.67 0.51 0.35 0.20 0.04
-0.08 0.55 1.19 1.83 2.49 3.15 3.84
0.05 0.05 0.05 0.05 0.05 0.05 0.05
-0.13 0.50 1.14 1.78 2.44 3.10 3.79
0.00 0.00 0.00 0.00 0.00 0.00 0.00
-0.13 0.50 1.14 1.78 2.44 3.10 3.79
-0.13 0.50 1.14 1.78 2.44 3.10 3.79
36.75 36.75 36.75 36.75 36.75 36.75 36.75
-0.05 0.18 0.42 0.66 0.90 1.14 1.39
-0.08 0.32 0.72 1.13 1.54 1.96 2.40
2.65
15.49
1.13 1.36 1.61 1.86 2.14 2.42 20.86

57.01 59.86 62.85 66.00 69.30 72.76 76.40

57.01 59.86 62.85 66.00 69.30 72.76 76.40
14.25 14.97 15.71 16.50 17.32 18.19 19.10
2.38 2.49 2.62 2.75 2.89 3.03 3.18
40.38 42.40 44.52 46.75 49.09 51.54 54.12
18.00 18.00 18.00 18.00 18.00 18.00 18.00
7.27 7.63 8.01 8.41 8.84 9.28 9.74
 4.37 3.94 3.54 3.19 2.87 2.58 2.32
0.44 0.39 0.35 0.32 0.29 0.26 0.23
0.42 0.32 0.24 0.18 0.13 0.10 0.08
0.11 0.08 0.06 0.04 0.03 0.03 0.02
0.54 0.47 0.41 0.36 0.32 0.28 0.25

8.48 7.18 5.88 4.58 3.28 1.98 0.68

0.65 0.65 0.65 0.65 0.65 0.65 0.68
7.83 6.53 5.23 3.93 2.63 1.33 0.00
0.65 0.65 0.65 0.65 0.65 0.65
12.00 12.00 12.00 12.00 12.00 12.00 12.00
0.98 0.82 0.67 0.51 0.35 0.20 0.04

6.00 6.00 6.00 6.00 6.00 6.00 6.00

8.16 6.86 5.56 4.26 2.96 1.66 0.34
7.00 7.00 7.00 7.00 7.00 7.00 7.00
14.00 14.00 16.00 16.00 18.00 18.00 20.00
10.31 10.58 11.96 12.51 14.56 15.75 19.33

M-04 M-05 M-06 M-07 M-08 M-09 M-10

70.72 74.04 77.54 81.21 85.08 89.14 93.40
2.58 2.53 2.49 2.46 2.45 2.43 2.43
64.80 64.80 64.80 64.80 64.80 64.80 64.80
0.00029 0.00029 0.00029 0.00029 0.00029 0.00029 0.00029
8898 8728 8599 8505 8439 8399 8380