PROJECT APPRAISAL &

FINANCING
 POP MEMORABILIA - PAYBACK

INITIAL CASH OUTLAY= 94,00,000

PV of Cash Accumulated cash Accumulated cash flows

Year Cash Flow PV@ 10% Flow flows (PV)

1 2776577 0.909 2524160.91 2776577 2524160.91

2 3903735 0.826 3226227.27 6680312 5750388.18

3 4535977 0.751 3407946.66 11216289 9158334.84

Payback Period= 7.2 Years

 NET PRESENT VALUE

PV of Cash
Year Cash Flow PV@ 10% Flow

1 2776577 0.909 2524160.91

2 3903735 0.826 3226227.27

3 4535977 0.751 3407946.66

PRESENT VALUE OF CASH INFLOWS 9158334.84

NET PRESENT VALUE -241665.16

 ACCOUNTING RATE & PI INDEX

Average Cash flow for each year 3738763.00

Average Investment 4700000

Average Rate of Return 79.55%

Profitability Index 0.97

 INTERNAL RATE OF RETURN

PV of Cash PV of Cash
Year Cash Flow PV@ 27% Flow PV@ 30% Flow

1 2776577 0.787 2186281.10 0.769 2135828.46

2 3903735 0.620 2420320.54 0.592 2309902.37

3 4535977 0.488 2214418.40 0.455 2064623.12

6821020.04 6510353.95

Internal Rate of Return 2.10%

SENSITIVITY ANALYSIS

INCOME STATEMENT
1st Year:

Sl. No. Particulars Note No. Amount(₹)

I Revenue From Operation 1,04,15,977 1,04,15,977.000

II Other Income - -

III Total Revenue 1,04,15,977 1,26,63,536.517

IV Expenses :
Cost of Materials
59,22,793 59,22,793.000
Consumed
Purchases of Stock-in-
4,13,800 4,13,800.000
Trade
Interest on Loan 1,98,000 1,98,000.000
Depreciation and
1,55,440 1,55,440.000
Amortization
Other Expenses 1 54,29,166 54,29,166.000

Total Expenses 1,21,19,199 1,21,19,199.000

V Profit before tax (III-IV) -17,03,222 5,44,337.517

2nd Year:

Sl. No. Particulars Note No. Amount(₹) Amount(₹)

I Revenue From Operation 1,14,57,575 1,14,57,575

II Other Income - -

III Total Revenue 1,14,57,575 1,14,57,575

IV Expenses :

Cost of Materials Consumed 64,34,840 64,34,840

Purchases of Stock-in-Trade

Interest on Loan 1,19,000 1,19,000

Depreciation and
1,39,896 1,39,896
Amortization
Other Expenses 1 54,13,766 54,13,766

Total Expenses 1,21,07,502 1,21,07,502

V Profit before tax (III-IV) -6,49,927 -6,49,927

3rd Year:

Note
Sl. No. Particulars Amount(₹) Amount(₹)
No.

I Revenue From Operation 1,37,49,090 1,37,49,090

II Other Income - -
III Total Revenue 1,37,49,090 59,90,753
IV Expenses :
Cost of Materials Consumed 70,191,50 70,191,50
Purchases of Stock-in-Trade
Interest on Loan 34,000 34,000
Depreciation and Amortization 1,25,906 1,25,906
Other Expenses 1 56,07,146 56,07,146
Total Expenses 1,29,50,202 57,67,052
V Profit before tax (III-IV) 9,62,888 2,23,701

VI Tax Expense (Entertainment GST 28%) 2,23,689 2,23,689

VII Profit/(Loss) for the period 6,93,279 12

SA 56.43%
SCENARIO ANALYSIS
1st year

Sl. No. Particulars Note No. Most Likely Amount(₹) Optimistic Amount(₹) Pessimistic Amount(₹)
I Revenue From Operation 1,04,15,977 1,35,40,770 72,91,184
II Other Income - - -
III Total Revenue 1,04,15,977 1,35,40,770 72,91,184
IV Expenses :

Cost of Materials Consumed 59,22,793 76,99,631 41,45,955

Purchases of Stock-in-Trade 4,13,800 5,37,940 2,89,660

Interest on Loan 1,98,000 2,57,400 1,38,600

Depreciation and Amortization 1,55,440 2,02,072 1,08,808

Other Expenses 1 54,29,166 70,57,916 38,00,416
Total Expenses 1,21,19,199 1,57,54,959 84,83,439
V Profit before tax (III-IV) -17,03,222 -22,14,189 -11,92,255
VI Tax Expense - - -
VII Profit/(Loss) for the period -17,03,222 -22,14,189 -11,92,255
2nd year

Note Most Likely Optimistic Most Likely

Sl. No. Particulars No. Amount(₹) Amount(₹) Amount(₹)

I Revenue From Operation 1,14,57,575 1,48,94,848 80,20,303

II Other Income - - -

III Total Revenue 1,14,57,575 1,48,94,848 80,20,303

IV Expenses :

Cost of Materials Consumed 64,34,840 83,65,292 45,04,388

Purchases of Stock-in-Trade

Interest on Loan 1,19,000 1,54,700 83,300

Depreciation and Amortization 1,39,896 1,81,865 97,927

Other Expenses 1 54,13,766 70,37,896 37,89,636

Total Expenses 1,21,07,502 1,57,39,753 84,75,251

V Profit before tax (III-IV) -6,49,927 -8,44,905 -4,54,949

VI Tax Expense - - -

VII Profit/(Loss) for the period -6,49,927 -8,44,905 -4,54,949

FINAL CONCLUSION

• Overall, we see that this project will face huge losses for the first 3-4 years but will
slowly start improving and start earning profits in the fifth year with investment and
financial attractiveness being pretty low
•
3rd year

Sl. No. Particulars Note No. Most Likely Amount(₹) Optimistic Amount(₹) Pessimistic Amount(₹)

I Revenue From Operation 1,37,49,090 1,78,73,817 96,24,363

II Other Income - - -

III Total Revenue 1,37,49,090 1,78,73,817 96,24,363

IV Expenses :

Cost of Materials Consumed 70,191,50 9124895 4913405

Purchases of Stock-in-Trade

Interest on Loan 34,000 44,200 23,800

Depreciation and Amortization 1,25,906 1,63,678 88,134

Other Expenses 1 56,07,146 72,89,290 39,25,002

Total Expenses 1,29,50,202 1,68,35,263 90,65,141

V Profit before tax (III-IV) 9,62,888 12,51,754 6,74,022

VI Tax Expense (Entertainment GST 28%) 2,23,689 2,90,796 1,56,582

VII Profit/(Loss) for the period 6,93,279 9,01,263 4,85,295

BIOFUEL – CREATING SUSTAINABLE ENERGY
RESOURCES FOR AEROSPACE
PROFIT & LOSS A/C

Particulars 31-03-2020 31-03-2021 31-03-2022

Revenue from operations 2803200 5256000 7008000

gross profit 2803200 5256000 7008000

operating expenses 1647360 3088800 4118400

operating profit 1155840 2167200 2889600

depreciation 160000 300000 400000

EBIT 995840 1867200 2489600

interest 0 0 0

EBT 995840 1867200 2489600

tax(35%) 348544 653520 871360

EAT 647296 1213680 1618240

 PBP & NET VALUE
Table 1: PBP for BIOFUEL
Yea
r PAT Depreciation Projected Cash Flows Cummulative
1 647296 160000 807296 807296
2 1213680 300000 1513680 2320976
3 1618240 400000 2018240 4339216
Table 2: NPV for BIOFUEL
Projected Cash
Year PAT Depreciation Flows PV factor @ 10% Pv of Cash flows
1 647296 160000 807296 0.909 733832.064
2 1213680 300000 1513680 0.826 1250299.68
3 1618240 400000 2018240 0.751 1515698.24

TOTAL 4339216 3499829.984

NPV= PV of Cash Flows-Initial Investment
-2500170.02
BCR ANALYSIS

Table 3: BCR for BIOFUEL

Year PAT Depreciation Projected Cash Flows PV factor @ 10% Pv of Cash flows

1 647296 160000 807296 0.909 733832.064

2 1213680 300000 1513680 0.826 1250299.68

3 1618240 400000 2018240 0.751 1515698.24

TOTAL 4339216 3499829.984

SENSTIVITY ANALYSIS
SENSITIVITY ANALYSIS
Particulars YEAR 1 AT 64.50% YEAR 2 AT 64.49% YEAR 3 AT 64.50%

Revenue from operations 2803200 1808092.03 5256000 3389594.447 7008000 4520160.701

gross profit 2803200 1808092.03 5256000 3389594.447 7008000 4520160.701
operating expenses 1647360 1647360 3088800 3088800 4118400 4118400
operating profit 1155840 160732.032 2167200 300794.4473 2889600 401760.7008
depreciation 160000 160000 300000 300000 400000 400000
EBIT 995840 732.032 1867200 794.447304 2489600 1760.7008
interest 0 0 0 0 0 0
EBT 995840 732.032 1867200 794.447304 2489600 1760.7008
tax(35%) 348544 256.2112 653520 278.0565564 871360 616.24528
EAT 647296 475.8208 1213680 516.3907476 1618240 1144.45552

SA 35.50 35.51 35.5

FINAL CONCLUSION

• Overall, we see that this project will earn good profits in the coming year with good
investment and financial attractiveness. The financial analysis shows that the proposal can
be accepted and would be beneficial to the investor.