Financial Project Report

Business Name: Dairy product

Pramotor Name: Anmol mahakan

Address: Janeta block narauli teh. Chandausi distt. Sambhal up

Industry Type: Manufacturing

Cost of Project

PARTICULARS AMOUNT (INR)

Fixed Assets 800,000

Working Capital 600,000

TOTAL PROJECT COST 1,400,000

Means of Finance

SOURCE AMOUNT (INR)

Loan Amount 1,500,000

Equity Contribution 1,000,000

TOTAL SOURCE OF FUND 2,500,000

Depreciation Schedule (5 Years)

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Opening Balance (INR) 800,000 640,000 512,000 409,600 327,680

Less: Depreciation (20%) 160,000 128,000 102,400 81,920 65,536

Closing Balance (INR) 640,000 512,000 409,600 327,680 262,144

Projected Cash Flow Statement (5 Years)

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Opening Cash Balance 0 0 0 0 0

Cash Inflows

Net Profit 605,000 735,371 869,096 1,008,423 1,155,438

Add: Depreciation 160,000 128,000 102,400 81,920 65,536

Add: Loan Taken 1,500,000 0 0 0 0

Add: Equity Contribution 1,000,000 0 0 0 0

Total Inflows 3,265,000 863,371 971,496 1,090,343 1,220,974

Cash Outflows

Fixed Assets Purchase 800,000 0 0 0 0

Loan Repayment (Principal +

228,016 228,016 228,016 228,016 228,016
Interest)

Working Capital Investment 600,000 0 0 0 0

Total Outflows 1,628,016 228,016 228,016 228,016 228,016

Net Cash Flow 1,636,984 635,355 743,480 862,326 992,957

Closing Cash Balance 1,636,984 2,272,339 3,015,819 3,878,145 4,871,102

Projected Profit & Loss Account (5 Years)

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Revenue (INR) 1,500,000 1,650,000 1,815,000 1,996,500 2,196,150

Less: Operating Expenses 600,000 660,000 726,000 798,600 878,460

Less: Depreciation (20% of

160,000.00 128,000.00 102,400.00 81,920.00 65,536.00
Fixed Assets)

Less: Interest on Loan 135,000 126,629 117,504 107,557 96,716

Total Expenses 895,000 914,629 945,904 988,077 1,040,712

Profit Before Tax (PBT) 605,000 735,371 869,096 1,008,423 1,155,438

Less: Tax @20% 121,000 147,074 173,819 201,685 231,088

Net Profit After Tax (NPAT) 484,000 588,297 695,277 806,738 924,350
Projected Balance Sheet (5 Years)

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Fixed Assets (Net) 640,000 512,000 409,600 327,680 262,144

Working Capital 600,000 600,000 600,000 600,000 600,000

Cash Balance 1,636,984 2,272,339 3,015,819 3,878,145 4,871,102

Total Assets 2,876,984 3,384,339 4,025,419 4,805,825 5,733,246

Loan Balance 1,406,984 1,305,596 1,195,083 1,074,624 943,324

Other Liabilities 121,000 147,074 173,819 201,685 231,088

Equity 1,484,000.00 2,072,297.18 2,767,574.29 3,574,312.31 4,498,662.58

Total Liabilities &

3,011,984 3,524,967 4,136,477 4,850,621 5,673,074
Equity
Projected Loan Repayment Schedule

YEAR EMI INTEREST PAID PRINCIPAL PAID REMAINING LOAN

1 228,016 135,000 93,016 1,406,984

2 228,016 126,629 101,388 1,305,596

3 228,016 117,504 110,513 1,195,083

4 228,016 107,557 120,459 1,074,624

5 228,016 96,716 131,300 943,324

Debt Service Coverage Ratio (DSCR) - 5 Years

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Net Profit (₹) 605,000.00 735,371.48 869,096.38 1,008,422.53 1,155,437.84

Interest Paid (₹) 135,000.00 126,628.52 117,503.62 107,557.47 96,716.16

EMI Paid (₹) 228,016.39 228,016.39 228,016.39 228,016.39 228,016.39

DSCR 3.25 3.78 4.33 4.89 5.49

Average DSCR 4.35

Projected Break-even Analysis (5 Years)

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Expenses (INR) 600,000 660,000 726,000 798,600 878,460

EMI (INR per Month) 19,001 19,001 19,001 19,001 19,001

Total EMI (INR per Year) 228,016 228,016 228,016 228,016 228,016

Break-even Revenue (INR) 1,182,881 1,268,595 1,362,881 1,466,595 1,580,681

Actual Revenue vs. Break-even Revenue

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Actual
Revenue 1,500,000 1,650,000 1,815,000 1,996,500 2,196,150
(INR)

Break-even
Revenue 1,182,881 1,268,595 1,362,881 1,466,595 1,580,681
(INR)

Status Profitable ✅ Profitable ✅ Profitable ✅ Profitable ✅ Profitable ✅

Good Good Good Good Good
performance! performance! performance! performance! performance!
Suggestion
Maintain Maintain Maintain Maintain Maintain
growth. growth. growth. growth. growth.
Projected Financial Ratios
Interpretation of Financial Ratios

Net Profit Ratio (%): Measures profitability relative to revenue. A higher ratio indicates better
cost efficiency and profit margins.

ROCE (Return on Capital Employed) (%): Shows how efficiently the business uses capital to
generate profits. Higher ROCE is a good indicator of strong financial performance.

ROI (Return on Investment) (%): Indicates the return earned on equity invested by the owner.
A growing ROI suggests better profitability over time.

Current Ratio: Measures liquidity by comparing working capital to short-term liabilities. A

ratio above 1 indicates that the business has enough current assets to cover its short-term
liabilities.

FINANCIAL RATIO YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Net Profit Ratio (%) 40.33% 44.57% 47.88% 50.51% 52.61%

ROCE (%) 43.21% 52.53% 62.08% 72.03% 82.53%

ROI (%) 60.50% 73.54% 86.91% 100.84% 115.54%

Current Ratio 2.00 2.00 2.00 2.00 2.00

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