Project-Manufacturing of Corrugated Boxes

Profitability Statement
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6

Total Revenue 15000000 15750000 16537500 21498750 22573688 23702372

Variable Cost
Raw Material Cost 6750000 7087500 7441875 9674438 10158159 10666067
Manpower Cost 1500000 1575000 1653750 1811438 1902009 1997110
Energy Cost 750,000 787,500 826,875 1,074,938 1,128,684 1,185,119
Manufacturing Expenses 750,000 787500 826875 1074938 1128684 1185119
Total Variable Cost 9750000 10237500 10749375 13635750 14317538 15033414
EBDITA 5250000 5512500 5788125 7863000 8256150 8668958
Fixed Cost
Lease Rent 480000 480000 480000 480000 480000 480000
Depreciation 1000000 1000000 1000000 1130000 1130000 1130000
Interest Cost
PBT 3770000 4032500 4308125 6253000 6646150 7058958
Income Tax 565500 604875 646218.8 937950 996922.5 1058844
PAT 3204500 3427625 3661906 5315050 5649228 6000114
Cash Accrual 4204500 4427625 4661906 6445050 6779228 7130114

Assumptions
Average Selling Price/ Box 100
Available Production Capacity 150,000 157500 165375 214988 225737 237024
Growth 5% 5% 30% 5% 5%
Raw Material (40%) 45% 45% 45% 45% 45% 45%
Manpower (% on Sales) 10% 10% 10% 10% 10% 10%
Lease Rent 480000 480000 480000 480000 480000 480000
Energy Cost (% on Sale) 5% 5% 5% 5% 5% 5%
Manufacturing Exps(% on Sale) 5% 5% 5% 5% 5% 5%
Project Cost
Machinery & Equipment 10000000 10000000 10000000 10000000 11300000 11300000
Additions 1300000
Total 10000000 10000000 10000000 11300000 11300000 11300000
Working Capital 7500000
Intial Project Cost 17500000

Depreciation 1000000 1000000 1000000 1130000 1130000 1130000

 Amt in INR
Year-7 Year-8 Year-9 Year-10

24887490 34842487 36584611 38413842

11199371 15679119 16463075 17286229

2096965 2306814 2422154 2543262
1,244,375 1,742,124 1,829,231 1,920,692
1244375 1742124 1829231 1920692
15785085 21470181 22543690 23670875
9102405 13372305 14040921 14742967 15750000

480000 480000 480000 480000

1130000 1300000 1300000 1300000

7492405 11592305 12260921 12962967

1123861 1738846 1839138 1944445
6368545 9853460 10421783 11018522
7498545 11153460 11721783 12318522

248875 348425 365846 384138

5% 40% 5% 5%
45% 45% 45% 45%
10% 10% 10% 10%
480000 480000 480000 480000
5% 5% 5% 5%
5% 5% 5% 5%

11300000 11300000 13000000 13000000

1700000
11300000 13000000 13000000 13000000

1130000 1300000 1300000 1300000

 Cost of machinery ₹ 10,000,000.00
Life 10 years
Variable Cost
manpowermanufacturing raw material
energy
Additional Investment
4th year ₹ 3,000,000.00
Depreciation ₹ 1,300,000.00

8th year ₹ 4,000,000.00

Depreciation ₹ 1,700,000.00

Cost of Equipment
add: Working Capital
add: Additional investment
Cash outflow

Years Units sold

1 ₹ 150,000.00
2 ₹ 157,500.00
3 ₹ 165,375.00
4 ₹ 214,987.50
5 ₹ 225,736.88
6 ₹ 237,023.72
7 ₹ 248,874.90
8 ₹ 348,424.87
9 ₹ 365,846.11
10 ₹ 384,138.42
 Depreciation@ 10% (straight line) ₹ 1,000,000.00

Fixed Cost
Rent/month ₹ 40,000.00
total ₹ 480,000.00

Working Capital ₹ 1,500,000.00

Discount Rate (assumed) 10%

₹ 10,000,000.00
₹ 6,750,000.00
₹ 391,700.00
₹ 17,141,700.00

Price/unit Net sales Variable cost Fixed cost Depreciation EBT

₹ 100.00 ₹ 15,000,000.00 ₹ 9,750,000.00 ₹ 480,000.00 ₹ 1,000,000.00 ₹ 3,770,000.00

₹ 100.00 ₹ 15,750,000.00 ₹ 10,237,500.00 ₹ 480,000.00 ₹ 1,000,000.00 ₹ 4,032,500.00
₹ 100.00 ₹ 16,537,500.00 ₹ 10,749,375.00 ₹ 480,000.00 ₹ 1,000,000.00 ₹ 4,308,125.00
₹ 100.00 ₹ 21,498,750.00 ₹ 13,635,750.00 ₹ 480,000.00 ₹ 1,300,000.00 ₹ 6,083,000.00
₹ 100.00 ₹ 22,573,687.50 ₹ 14,317,537.50 ₹ 480,000.00 ₹ 1,300,000.00 ₹ 6,476,150.00
₹ 100.00 ₹ 23,702,371.88 ₹ 15,033,414.38 ₹ 480,000.00 ₹ 1,300,000.00 ₹ 6,888,957.50
₹ 100.00 ₹ 24,887,490.47 ₹ 15,785,085.09 ₹ 480,000.00 ₹ 1,300,000.00 ₹ 7,322,405.38
₹ 100.00 ₹ 34,842,486.66 ₹ 21,470,181.26 ₹ 480,000.00 ₹ 1,700,000.00 ₹ 11,192,305.39
₹ 100.00 ₹ 36,584,610.99 ₹ 22,543,690.33 ₹ 480,000.00 ₹ 1,700,000.00 ₹ 11,860,920.66
₹ 100.00 ₹ 38,413,841.54 ₹ 23,670,874.84 ₹ 480,000.00 ₹ 1,700,000.00 ₹ 12,562,966.70

NPV ₹ 21,297,847.35
IRR 17%
Profitability Index 2.2424582947962
Tax @25% EAT Depreciation Cash Inflow PVF@10%, 10yrs Present Value
-₹ 17,141,700.00
₹ 942,500.00 ₹ 2,827,500.00 ₹ 1,000,000.00 ₹ 3,827,500.00 0.909 ₹ 3,479,197.50
₹ 1,008,125.00 ₹ 3,024,375.00 ₹ 1,000,000.00 ₹ 4,024,375.00 0.826 ₹ 3,324,133.75
₹ 1,077,031.25 ₹ 3,231,093.75 ₹ 1,000,000.00 ₹ 4,231,093.75 0.751 ₹ 3,177,551.41
₹ 1,520,750.00 ₹ 4,562,250.00 ₹ 1,300,000.00 ₹ 5,862,250.00 0.683 ₹ 4,003,916.75
₹ 1,619,037.50 ₹ 4,857,112.50 ₹ 1,300,000.00 ₹ 6,157,112.50 0.621 ₹ 3,823,566.86
₹ 1,722,239.38 ₹ 5,166,718.13 ₹ 1,300,000.00 ₹ 6,466,718.13 0.564 ₹ 3,647,229.02
₹ 1,830,601.34 ₹ 5,491,804.03 ₹ 1,300,000.00 ₹ 6,791,804.03 0.513 ₹ 3,484,195.47
₹ 2,798,076.35 ₹ 8,394,229.04 ₹ 1,700,000.00 ₹ 10,094,229.04 0.467 ₹ 4,714,004.96
₹ 2,965,230.17 ₹ 8,895,690.50 ₹ 1,700,000.00 ₹ 10,595,690.50 0.424 ₹ 4,492,572.77
₹ 3,140,741.67 ₹ 9,422,225.02 ₹ 1,700,000.00 ₹ 11,122,225.02 0.386 ₹ 4,293,178.86
Total ₹ 38,439,547.35

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