Sarthi communication Pvt Ltd

B-160/161, Industrial Estate,

Gokul Road, Hubli

FINANCIAL PROJECT REPORT

VIII. FINANCIAL PROJECT REPORT Page 22

PROJECT COST: AMOUNT

Plant and Machinary 70,000,000
Land and Building 20,000,000
Furnitures & Fittings 10,000,000
TOTAL : 100,000,000

MEANS OF FINANCE :
Directors Contricution
Sumit Kumar Agrawal 20,000,000
Anand Dalal 20,000,000
Namratha.K.S. 20,000,000
Bank 40,000,000
TOTAL: 100,000,000
 Page 23

INCOME STRUCTURE: 1st Year 2nd Year 3rd Year 4th Year 5th Year

Tumod Device Instrument Charges

No of Devices Sold 50,000 75,000 100,000 125,000 150,000
Rate per Device 2,000 2,000 2,000 3,000 3,000
Total Amount on Sale of Tumod Device Sold A 100,000,000 150,000,000 200,000,000 375,000,000 450,000,000

Set Up Charges per Device 500 500 500 750 750

Total Set Up Charges Received B 25,000,000 37,500,000 50,000,000 93,750,000 112,500,000

Subscription Charges Per Month 200 250 300 500 500

Total Subscription Charges for the Year C 120,000,000 225,000,000 360,000,000 750,000,000 900,000,000

Advertisement Income Expected Per Month 15,000 50,000 100,000 150,000 200,000
Total Advertisement Income for the Year D 180,000 600,000 1,200,000 1,800,000 2,400,000

TOTAL INCOME A+B+C+D 245,180,000 413,100,000 611,200,000 1,220,550,000 1,464,900,000

x Page 24
PROFITABILITY STATEMENT: 1st Year 2nd Year 3rd Year 4th Year 5th Year
PROFIT AND LOSS ACCOUNT
Opening Stock (Refer Annexure) A - 12,000,000 12,000,000 36,000,000 9,000,000
Purchases (Refer Annexure) B 60,000,000 75,000,000 120,000,000 150,000,000 225,000,000
Transportation Charges (Refer Annexure) C 1,200,000 1,500,000 2,400,000 3,000,000 4,500,000
Sales (Refer Annexure) D 100,000,000 150,000,000 200,000,000 375,000,000 450,000,000
Closing Stock (Refer Annexure) E 12,000,000 12,000,000 36,000,000 9,000,000 9,000,000

Gross Profit (D+E)-(A+B+C) 50,800,000 73,500,000 101,600,000 195,000,000 220,500,000

Add: Setup Charges Received 25,000,000 37,500,000 50,000,000 93,750,000 112,500,000
Add: Monthly Subscription Charges Received 120,000,000 225,000,000 360,000,000 750,000,000 900,000,000
Add: Advertisement Income Received 180,000 600,000 1,200,000 1,800,000 2,400,000

Total Gross Income F 195,980,000 336,600,000 512,800,000 1,040,550,000 1,235,400,000

 Page 25
x EXPENDITURES 1st Year 2nd Year 3rd Year 4th Year 5th Year
Modification Charges for Device 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000
Salary to Staff (Refer Annexure) 11,316,000 12,936,000 23,208,000 23,802,000 31,860,000
Advertisement Expenses 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Printing Stationery 1,500,000 1,500,000 1,650,000 1,650,000 1,750,000
Postage & Telephone Charges 708,000 990,000 1,675,000 1,925,000 2,625,000
Remuneration to Directors 3,600,000 3,600,000 3,600,000 7,200,000 7,200,000
Veichle Maintenance 1,236,000 516,000 906,000 510,000 960,000
Licence Fees 10,000,000 - - - -
Licence Renewal Fees - 50,000 50,000 50,000 50,000
Internet & TV Channel Charges 60,000,000 150,000,000 210,000,000 270,000,000 330,000,000
Gifts & Prizes & Honorarium 240,000 360,000 480,000 600,000 720,000
Interest on Bank Loan 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004
Loan Processing Charges Paid 400,000 - - - -
Entertainment Tax 1.2% on Subscription 1,440,000 2,700,000 4,320,000 9,000,000 10,800,000

Depreciation on
Directors Cars 360,000 306,000 260,100 761,085 646,922
Chief Officers & Installation Van 105,000 89,250 75,863 116,983 99,436
Plant & Machinary & Land & Building 13,500,000 11,475,000 9,753,750 8,290,688 7,047,084
Furniture & Fixtures 1,000,000 900,000 810,000 729,000 656,100
Mobiles Handsets 8,000 7,200 8,480 13,632 12,269
Bikes to Employees 260,000 294,000 404,600 384,140 445,726
Cameras and Mikes 48,000 55,200 85,680 77,112 93,401

Total Expenses G 115,966,004 198,523,654 272,532,477 342,854,644 415,210,942

Profit Before Tax ( F - G ) 80,013,996 138,076,346 240,267,524 697,695,356 820,189,058

Income tax at 35% 28,004,899 48,326,721 84,093,633 244,193,375 287,066,170

Profit after Tax 52,009,097 89,749,625 156,173,890 453,501,982 533,122,888

x Page 26
RESERVES & SURPLUS ACCOUNT 1st Year 2nd Year 3rd Year 4th Year 5th Year
SURPLUS ACCOUNT
Opening Surplus - 47,009,097 129,258,722 274,182,613 710,809,594
Add : Current Year Profit 52,009,097 89,749,625 156,173,890 453,501,982 533,122,888
Less : Reserves 5,000,000 7,500,000 11,250,000 16,875,000 25,312,500
Closing Balance of Surplus Account 47,009,097 129,258,722 274,182,613 710,809,594 1,218,619,982

RESERVES ACCOUNT
Opening Reserves - 5,000,000 12,500,000 23,750,000 40,625,000
Add : Current Year Reserves 5,000,000 7,500,000 11,250,000 16,875,000 25,312,500
Less: Transferred to Working Capital -
Closing Balance of Surplus Account 5,000,000 12,500,000 23,750,000 40,625,000 65,937,500

REPAYMENT SCHEDULE
Loan of Rs. 40000000 at Rate of 13.5% P.a.
Monthly EMI 895,417 895,417 895,417 895,417 895,417
Yearly EMI Paid 10,745,004 10,745,004 10,745,004 10,745,004 10,745,004
Yearly Principal Amount Paid 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Yearly Interest Amount Paid 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004

Total Repayment Paid during the Year 10,745,004 10,745,004 10,745,004 10,745,004 10,745,004

D.S.C.R 5.10 8.61 14.79 42.46 49.87

Average DSCR 24.17

Net income + interest paid for the year / Total Repayment of Loan
Net Income 52,009,097 89,749,625 156,173,890 453,501,982 533,122,888
Interest Paid for the Year 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004
Total Repayment of Loan Paid 10,745,004 10,745,004 10,745,004 10,745,004 10,745,004
x IX. CASH FLOW STATEMENT Page 27

CASH FLOW STATEMENT 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Cash - 53,030,097 147,166,372 304,918,735 756,643,356
Cash Inflow
Directors Investments 60,000,000 -
Loan from Bank 40,000,000 -
Sale of Directors Old Cars - - - - -
Gross Income (Refer P & L A/c.) 195,980,000 336,600,000 512,800,000 1,040,550,000 1,235,400,000
Total Inflow A 295,980,000 389,630,097 659,966,372 1,345,468,735 1,992,043,356

Application of Funds on
Purchase of Land & Buildings Plant & M/c 90,000,000 - - - -
Furnitures & Fixtures 10,000,000 - - - -
Directors Cars 2,400,000 - - 3,600,000 -
Office Executive & Installation Cars 700,000 - - 350,000 -
Mobile Handsets to Reporters 80,000 20,000 60,000 - 40,000
Bikes to Employees 2,600,000 600,000 1,400,000 200,000 1,000,000
Cameras and Mike Sets to Reporters 480,000 120,000 360,000 - 240,000
Loan Principle Amount Paid for the year 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Income Tax AT 35% Paid for the Year 28,004,899 48,326,721 84,093,633 244,193,375 287,066,170
Indirect Expenses (Refer P & L A/c. ) 115,966,004 198,523,654 272,532,477 342,854,644 415,210,942

B 258,230,903 255,590,375 366,446,110 599,198,018 711,557,112

Gross Cash in Hand ( A - B ) C 37,749,097 134,039,722 293,520,263 746,270,717 1,280,486,244

ADD BACK:
Depreciation on Fixed Assets
Directors Cars 360,000 306,000 260,100 761,085 646,922
Chief Officers & Installation Van 105,000 89,250 75,863 116,983 99,436
Plant & Machinary & Land & Building 13,500,000 11,475,000 9,753,750 8,290,688 7,047,084
Furniture & Fixtures 1,000,000 900,000 810,000 729,000 656,100
Mobiles Handsets 8,000 7,200 8,480 13,632 12,269
Bikes to Employees 260,000 294,000 404,600 384,140 445,726
Cameras and Mikes 48,000 55,200 85,680 77,112 93,401

Total Depreciation D 15,281,000 13,126,650 11,398,473 10,372,640 9,000,938

Net Cash inHand at the End of the Year ( C + D ) 53,030,097 147,166,372 304,918,735 756,643,356 1,289,487,182
x X. BALANCE SHEET Page 28

BALANCE SHEET 1st Year 2nd Year 3rd Year 4th Year 5th Year
Liabilities
Directors Capital Accounts 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000
Bank Loan 32,000,000 24,000,000 16,000,000 8,000,000 -
Reserves & Surplus 5,000,000 12,500,000 23,750,000 40,625,000 65,937,500
Profit & Loss A/c. 47,009,097 129,258,722 274,182,613 710,809,594 1,218,619,982

TOTAL : 144,009,097 225,758,722 373,932,613 819,434,594 1,344,557,482

Assets
Land & Building & Plant & Machinary 76,500,000 65,025,000 55,271,250 46,980,563 39,933,478
Directors Cars 2,040,000 1,734,000 1,473,900 4,312,815 3,665,893
Office Executive & Installation Cars 595,000 505,750 429,888 662,904 563,469
Furnitures & Fixtures 9,000,000 8,100,000 7,290,000 6,561,000 5,904,900
Mobile Handsets to Reporters 72,000 84,800 136,320 122,688 150,419
Bikes to Employees 2,340,000 2,646,000 3,641,400 3,457,260 4,011,534
Cameras and Mike Sets to Reporters 432,000 496,800 771,120 694,008 840,607
Cash inHand 53,030,097 147,166,372 304,918,735 756,643,356 1,289,487,182

TOTAL : 144,009,097 225,758,722 373,932,613 819,434,594 1,344,557,482

Difference - - - - -
x Page 29
Annexures for Profitabity Statement 1st Year 2nd Year 3rd Year 4th Year 5th Year
OPENING STOCK DETAILS
Opening Stock No. of Devices A 10,000 10,000 30,000 5,000
Rate per Device 1,000 1,200 1,200 1,200 1,800
Total Amount of Opening Stock - 12,000,000 12,000,000 36,000,000 9,000,000

PURCHASE DETAILS
No. of Devices purchased B 60,000 75,000 120,000 100,000 150,000
Rate per Device 1,000 1,000 1,000 1,500 1,500
Total Amount of Purchae during the Year 60,000,000 75,000,000 120,000,000 150,000,000 225,000,000

TRANSPORTATION CHARGES
No. of Devices purchased 60,000 75,000 120,000 100,000 150,000
Transportation per 10000 Devices 200,000 200,000 200,000 300,000 300,000
Total Transportation Charges 1,200,000 1,500,000 2,400,000 3,000,000 4,500,000

SALES DETAILS
No. of Devices Sold C 50,000 75,000 100,000 125,000 150,000
Rate per Devices 2,000 2,000 2,000 3,000 3,000
Sales Amount 100,000,000 150,000,000 200,000,000 375,000,000 450,000,000

CLOSING STOCK DETAILS

No of Devices at the End of the Year 10,000 10,000 30,000 5,000 5,000
(A + B - C )
Rate per Devices 1,200 1,200 1,200 1,800 1,800
Closing Stock Value 12,000,000 12,000,000 36,000,000 9,000,000 9,000,000
(At Cost price )

Bank Loan Account

Opening Loan Amount 40,000,000 32,000,000 24,000,000 16,000,000 8,000,000
Add: Loan Processing Charges 400,000
Less: Loan Processing Charges paid 400,000
Add: Interest for the Year 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004
Less : Principal Amount Paid 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Less:Interest paid for the Year 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004
Closing Balance 32,000,000 24,000,000 16,000,000 8,000,000 -
 XI. SALARY ANNEXURE Page 30
x SALARY ANNEXURE 1st Year 2nd Year 3rd Year 4th Year 5th Year
Chief Administrative Officer 1 1 1 1 1
Salary per Month 25,000 25,000 35,000 35,000 45,000
Total Salary paid during the Year A 300,000 300,000 420,000 420,000 540,000

Chief Accountant 1 1 1 1 1
Salary per Month 10,000 10,000 15,000 15,000 20,000
Total Salary paid during the Year B 120,000 120,000 180,000 180,000 240,000

Account Assistants 2 2 2 3 3
Salary per Month 3,500 3,500 5,000 5,000 6,000
Total Salary paid during the Year C 84,000 84,000 120,000 180,000 216,000

Chief Human Resources Officer 1 1 1 1 1

Salary per Month 5,000 5,000 6,000 6,000 7,500
Total Salary paid during the Year D 60,000 60,000 72,000 72,000 90,000

Assistant to Human Resources Officer 2 2 2 3 3

Salary per Month 3,000 3,000 4,000 4,000 5,000
Total Salary paid during the Year E 72,000 72,000 96,000 144,000 180,000

Chief Marketing Officer 1 1 1 2 2

Salary per Month 10,000 10,000 12,000 12,000 15,000
Total Salary paid during the Year F 120,000 120,000 144,000 288,000 360,000

Assistants to Marketing Officer 5 5 10 10 10

Salary per Month 4,000 4,000 5,000 5,000 6,500
Total Salary paid during the Year G 240,000 240,000 600,000 600,000 780,000

Installation Assistants(Technician) 15 15 25 25 25
Salary per Month 3,500 3,500 5,000 5,000 5,000
Total Salary paid during the Year H 630,000 630,000 1,500,000 1,500,000 1,500,000

Production Manager 1 1 1 1 1
Salary per Month 10,000 10,000 12,000 12,000 15,000
Total Salary paid during the Year I 120,000 120,000 144,000 144,000 180,000
 Production Assistants 15 15 30 30 30
Salary per Month 4,000 4,000 5,000 5,000 5,000
Total Salary paid during the Year J 720,000 720,000 1,800,000 1,800,000 1,800,000

x Store Keeper 1 1 1 1 1
Salary per Month 3,500 3,500 4,500 4,500 5,000
Total Salary paid during the Year K 42,000 42,000 54,000 54,000 60,000

Driwers 5 5 5 6 6
Salary per Month 3,000 3,000 4,000 4,000 5,000
Total Salary paid during the Year L 180,000 180,000 240,000 288,000 360,000

Cleaners, Sweepers and Officer Boys 10 10 10 10 10

Salary per Month 2,000 2,000 2,500 2,500 3,000
Total Salary paid during the Year M 240,000 240,000 300,000 300,000 360,000

Chief Security Incharge 3 3 3 3 3

Salary per Month 4,000 4,000 5,000 5,000 6,500
Total Salary paid during the Year N 144,000 144,000 180,000 180,000 234,000

Security Guards 12 12 12 12 12
Salary per Month 3,000 3,000 4,000 4,000 5,000
Total Salary paid during the Year O 432,000 432,000 576,000 576,000 720,000

Collection Boys 25 30 35 40 45
Salary per Month 3,000 3,000 3,500 3,500 4,000
Total Salary paid during the Year P 900,000 1,080,000 1,470,000 1,680,000 2,160,000

Call Operators 4 4 6 8 10
Salary per Month 3,000 3,000 3,500 3,500 4,000
Total Salary paid during the Year Q 144,000 144,000 252,000 336,000 480,000

Computer Operators 24 24 30 30 40
Salary per Month 3,500 3,500 4,500 4,500 5,000
Total Salary paid during the Year R 1,008,000 1,008,000 1,620,000 1,620,000 2,400,000

Camera Mens & Reporters 80 100 160 160 200

Salary per Month 6,000 6,000 7,000 7,000 8,000
Total Salary paid during the Year S 5,760,000 7,200,000 13,440,000 13,440,000 19,200,000
TOTAL SALARY PAID FOR THE YEAR 11,316,000 12,936,000 23,208,000 23,802,000 31,860,000
(A+B+C+D+E+F+G+H+I+J+K+L+M+N+
O+P+Q+R+S)
 XII. FIXED ASSETS ANNEXURE Page 32
x FIXED ASSETS ANNEXURE 1st Year 2nd Year 3rd Year 4th Year 5th Year
Veichles
Directors Executive Cars
Opening - 2,040,000 1,734,000 1,473,900 4,312,815
Addition / Purchases during the Year 2,400,000 3,600,000
Deletion / Sold during the Year ) - -
Depreciation at 15% 360,000 306,000 260,100 761,085 646,922
Closing WDV at the End of the Year 2,040,000 1,734,000 1,473,900 4,312,815 3,665,893

Cars for Office and Installation Van

Opening - 595,000 505,750 429,888 662,904
Addition / Purchases during the Year 700,000 350,000
Deletion / Sold during the Year )
Depreciation at 15% 105,000 89,250 75,863 116,983 99,436
Closing WDV at the End of the Year 595,000 505,750 429,888 662,904 563,469

Plant and Machinary & Land & Building

Opening - 76,500,000 65,025,000 55,271,250 46,980,563
Addition / Purchases during the Year 90,000,000
Deletion / Sold during the Year )
Depreciation at 15% 13,500,000 11,475,000 9,753,750 8,290,688 7,047,084
Closing WDV at the End of the Year 76,500,000 65,025,000 55,271,250 46,980,563 39,933,478

Furnitures & Fixtures

Opening - 9,000,000 8,100,000 7,290,000 6,561,000
Addition / Purchases during the Year 10,000,000
Deletion / Sold during the Year )
Depreciation at 10% 1,000,000 900,000 810,000 729,000 656,100
Closing WDV at the End of the Year 9,000,000 8,100,000 7,290,000 6,561,000 5,904,900
Mobile Hand Sets to Reporters
Opening - 72,000 84,800 136,320 122,688
Addition / Purchases during the Year 80,000 20,000 60,000 - 40,000
Deletion / Sold during the Year )
Depreciation at 10% 8,000 7,200 8,480 13,632 12,269
Closing WDV at the End of the Year 72,000 84,800 136,320 122,688 150,419

Bikes to Employees
Bikes purchased during the Year 65 15 35 5 25
Opening - 2,340,000 2,646,000 3,641,400 3,457,260
Addition / Purchases during the Year 2,600,000 600,000 1,400,000 200,000 1,000,000
Deletion / Sold during the Year )
Depreciation at 10% 260,000 294,000 404,600 384,140 445,726
Closing WDV at the End of the Year 2,340,000 2,646,000 3,641,400 3,457,260 4,011,534

Mikes and Camera Sets

Mikes & Cameras purchased during the Year 40 10 30 - 20
Opening - 432,000 496,800 771,120 694,008
Addition / Purchases during the Year 480,000 120,000 360,000 - 240,000
Deletion / Sold during the Year )
Depreciation at 10% 48,000 55,200 85,680 77,112 93,401
Closing WDV at the End of the Year 432,000 496,800 771,120 694,008 840,607
 EXTRA CALCULATIONS
Postage and telephone charges
Call operators 4 4 6 8 10
1,000 1,250 1,450 1,650 1,850
yearly telephone charges 48,000 60,000 104,400 158,400 222,000
reporters & camerman mobiles 480,000 750,000 1,392,000 1,584,000 2,220,000

528,000 810,000 1,496,400 1,742,400 2,442,000

60,000 60,000 60,000 60,000 60,000
120,000 120,000 120,000 120,000 120,000
708,000 990,000 1,676,400 1,922,400 2,622,000
708,000 990,000 1,675,000 1,925,000 2,625,000

Veichle maintenance charges

bikes 65 15 35 5 25
Petrol & Maintenance perMonth 1,200 1,200 1,300 1,300 1,400
Gross 936,000 216,000 546,000 78,000 420,000
Directors Veichles & Delivery Vans 5 5 5 6 6
Petrol & Maintenance perMonth 5,000 5,000 6,000 6,000 7,500
Gross 300,000 300,000 360,000 432,000 540,000

Gross + gross 1,236,000 516,000 906,000 510,000 960,000

Months 40,000,000
1st 450,000 666,667 39,333,333
2nd 442,500 666,667 38,666,667
3rd 435,000 666,667 38,000,000
4th 427,500 666,667 37,333,334
5th 420,000 666,667 36,666,667
6th 412,500 666,667 36,000,000
7th 405,000 666,667 35,333,334
8th 397,500 666,667 34,666,667
9th 390,000 666,667 34,000,001
10th 382,500 666,667 33,333,334
11th 375,000 666,667 32,666,667
12th 367,500 666,667 32,000,001
13th 360,000 666,667 31,333,334
14th 352,500 666,667 30,666,668
15th 345,000 666,667 30,000,001
16th 337,500 666,667 29,333,334
17th 330,000 666,667 28,666,668
18th 322,500 666,667 28,000,001
19th 315,000 666,667 27,333,335
20th 307,500 666,667 26,666,668
21st 300,000 666,667 26,000,001
22nd 292,500 666,667 25,333,335
23rd 285,000 666,667 24,666,668
24th 277,500 666,667 24,000,002
25th 270,000 666,667 23,333,335
26th 262,500 666,667 22,666,668
27th 255,000 666,667 22,000,002
28th 247,500 666,667 21,333,335
29th 240,000 666,667 20,666,669
30th 232,500 666,667 20,000,002
31st 225,000 666,667 19,333,335
32nd 217,500 666,667 18,666,669
33rd 210,000 666,667 18,000,002
34th 202,500 666,667 17,333,336
35th 195,000 666,667 16,666,669
36th 187,500 666,667 16,000,002
37th 180,000 666,667 15,333,336
38th 172,500 666,667 14,666,669
39th 165,000 666,667 14,000,003
40th 157,500 666,667 13,333,336
41st 150,000 666,667 12,666,669
42nd 142,500 666,667 12,000,003
43rd 135,000 666,667 11,333,336
44th 127,500 666,667 10,666,670
45th 120,000 666,667 10,000,003
46th 112,500 666,667 9,333,336
47th 105,000 666,667 8,666,670
48th 97,500 666,667 8,000,003
49th 90,000 666,667 7,333,337
50th 82,500 666,667 6,666,670
51st 75,000 666,667 6,000,003
52nd 67,500 666,667 5,333,337
53rd 60,000 666,667 4,666,670
54th 52,500 666,667 4,000,004
55th 45,000 666,667 3,333,337
56th 37,500 666,667 2,666,670
57th 30,000 666,667 2,000,004
58th 22,500 666,667 1,333,337
59th 15,000 666,667 666,671
60th 7,500 666,667 4

13,725,001 39,999,996 53,724,997

895,417
100,000
1,667
Monthly EMI 895,417 895,417 895,417 895,417 895,417
Yearly EMI 10,745,004 10,745,004 10,745,004 10,745,004 10,745,004
Principle 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Interest 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004

Opening 40,000,000 32,000,000 24,000,000 16,000,000 8,000,000

Add Interest 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004
Less Interest Paid 2,745,004 2,745,004 2,745,004 2,745,004 2,745,004
Less Principle Amount Paid 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Closing Balance 32,000,000 24,000,000 16,000,000 8,000,000 -
Break Even Analysis Page 33

A break-even analysis predicts the sales volume, at a given price, required to recover total costs.
In other words, it’s the sales level that is the dividing line between operating at a loss and operating at a profit.

Expressed as a formula, break-even is:

Break Even point = fixed cost/ contribution

Fixed cost = 9,97,42,004

Contribution = Sales - Varible Cost

Sales = 10,00,00,000

Variable Cost = 1,11,84,000

Contribution = 8816000

Break Even Point = Fixed cost/contribution = 11.31

Break Even point of Volume = Fixed Cost * 100 / Installed Capacity

Installed Capacity = 50,000 units

Break Even Point of Volume = 99742004 * 100 / 50000 = 199484 units