SEM-6

GROUP MEMBERS
SR. NO. NAME ROLL NUMBER
1 Andodariya Kaushik Mahendrabhai 3094
2 Boghani Tushar Rameshbhai 3097
3 Chovatiya Sahil Savajibhai 3101
4 Gadhiya Parth Bharatbhai 3109
5 Gohil Fairy Tushar 3111
6 Panchal Devkumar Amrutbhai 3130
7 Parekh Kashish Dilpeshbhai 3135
8 Prajapati Khushi Ketanbhai 3148
9 Radadiya Amishaben Bhanubhai 3151
10 Shah Dhruvi Pareshkumar 3159
11 Shah Nirali Amitbhai 3161
12 Zinzala Raviraj Batukbhai 3183
Page 1 of 53
TABLE OF CONTENT
INTRODUCTION ................................................................................. 5
MEANING OF FINANCIAL FEASIBILITY REPORT ....................................................................... 6
ABOUT OUR COMPANY .................................................................................................................... 7
BASIC ASSUMPTION FOR FINANCIAL FEASIBILITIES ............................................................... 8
STATEMENT SHOWING COST OF PROJECT .................................................................................. 9
MEANS OF FINANACE (SOURCE OF FINANCE) ......................................................................... 11
UTILIZATION OF INSTALLED PRODUCTION CAPACITY ........................................................ 11
CALCULATION OF PRODUCTION CAPACITY ............................................................................. 14
STATMENTS ....................................................................................... 15
ESTIMATED SALES AND PRODUCTION (IN UNITS).................................................................. 16
RAW MATERIAL REQUIRED FOR ESTIMATED PRODUCTION ............................................... 17
ESTIMATE DIRECT LABOUR COST FOR THE YEAR 2024- 2025 TO 2028-2029 ..................... 18
MANUFACTURING EXPENSES....................................................................................................... 18
ADMINISTRATIVE EXPENSES ....................................................................................................... 19
SELLING AND DISTRIBUTION EXPENSES .................................................................................. 20
COST SHEET ....................................................................................................................................... 21
TRADING, PROFIT AND LOSS ACCOUNT .................................................................................... 26
BALANCE SHEET .............................................................................................................................. 31
CASH FLOW STATEMENT OF DIVINELOOMS FOR 2024-25 TO 2028-29 ................................ 36
EVALUATION .................................................................................... 38
PAY BACK PERIOD ........................................................................................................................... 39
NET PRESENT VALUE ...................................................................................................................... 40
INTERNAL RATE OF RETURN ........................................................................................................ 41
RATIO ANALYSIS ............................................................................................................................. 42
1. LIQUIDITY RATIO ....................................................................................................................... 42
2. TURNOVER RATIO ..................................................................................................................... 44
3. PROFITABILITY RATIO................................................................................................................ 47
4. SOLVENCY RATIO ...................................................................................................................... 50
LIMITATION ....................................................................................................................................... 52
CONCLUSION..................................................................................................................................... 53
Page 2 of 53
CERTIFICATE OF COMPLETION
This is to certify that the members of Group “L” of Third Year B.B.A. of K. S.
School of Business Management and Information Technology have successfully
completed their project work on Financial Feasibility Report of Bedsheet for the
academic year 2023-24 and have duly submitted the Project Report to the Institute.
Project Mentor: DR. ISMAIL BOOTWALA
Signature: ______________
Date of Submission: 5th April, 2024
Page 3 of 53
ACKNOWLEDGEMENT
Financial Feasibility Project has provided us with an opportunity to gain information of BEDSHEET
INDUSTRY. It was an experience of applying the concepts as well as the knowledge learned during
classrooms in real life practical situations.
Every Project Report is a culmination of a student’s endeavor to gain optimum experience during a short
valuable tenure. This Project is dedicated to all the people to whom we met, talked, took guidance and
learnt many things from them.
We take immense pleasure in taking this as an opportunity to express our deepest gratitude to all those
people whose guidance and support has made it possible for us to complete this project successfully.
First and foremost, we would like to convey our heartiest thanks to K.S SCHOOL OF BUSINESS
MANAGEMENT AND INFORMATION TECHNOLOGY for providing us with the huge platform
for doing this Feasibility Project.
We are thankful to our Director DR. B.S AGRAWAL for providing us constant support from the institute.
Our deepest gratitude to our project guides DR. ISMAIL BOOTWALA SIR, Faculty Guide who in spite
of their busy schedules have provided us with their invaluable guidance, suggestions and directions, which
enabled us during all stages of this project.
Finally, we would like to convey our deepest regard to everyone who have directly or indirectly helped us
in accomplishing this project.
Page 4 of 53
PART-1
INTRODUCTION
Page 5 of 53
MEANING OF FINANCIAL FEASIBILITY REPORT
❖ Meaning of Finance
Business finance is the cornerstone of every organization. It refers tothe corpus of funds and
credit employed in a business. Business finance is required for purchasing assets, goods, raw
materials and for performing all other economic activities. Precisely, it is required for running
all the business operations.
To understand what business finance is, we must know that businessfinance includes activities
concerning the acquisition and conservation of capital funds for meeting an organization’s
financial needs and objectives. The importance of business finance is evident from the fact that
business finance is required to undertake every business operation successfully.
The amount of capital that is pooled by a business owner into their company is often not
enough to meet the financial needs of a company. Herein, the importance of business finance
and its management rises even more. Consequently, business owners alongwith their teams
look out for various other ways to importance of business finance nerite funds.
❖ Here are some reasons why business finance is important for allorganizations:
Maximization of wealth
Business finance ensures that a shareholder’s wealth is maximized. Itis also important to
understand that wealth maximization is different from profit maximization. Wealth
maximization is holistic and ensures the growth of an organization.
Ensure constant availability of money

For any business to survive, it should be in optimum financial condition. This includes the
availability of funds at the time they areneeded. Unless there are enough funds, the business
may not be able to function properly.
Attaining optimum capital structure

This requires a perfect combination of shares and debentures. Thisway the organization
will be able to maintain a perfect balance by not give away too much equity.
Page 6 of 53
ABOUT OUR COMPANY
NAME DIVINELOOMS
LOGO
TAGLINE ELEVATE YOUR SLEEP EXPERIENCE
plot no.110, piplaj gam road, piplaj,

ADDRESS
Ahmedabad-382405
CONTACT NO. +919510862079
Divinelooms253@gmail.com
EMAIL ID
CONSTITUTION PARTNERSHIP FIRM
PARTNER’S FUND 1,75,00,000
BORROWED FUND 45,00,000
Page 7 of 53
BASIC ASSUMPTION FOR FINANCIAL FEASIBILITIES
→ We will follow the financial year would begin from 1st April and would end on 31ST March of every
year.
→ All the regulations as specified in the Companies Act, 2013 are strictly complied and followed by the
firm.
→ All partners are active partner.
→ The number of working days is 300 days in a year and 25 days in a month.
→ We get 3 months of credit facilities from suppliers of raw materials. We pay 60% cash in advance and
40% in credit.
→ The profit and loss of all the partners are in equal proportion.
→ All fixed assets are shown at original cost less depreciation.
→ The land and building will be on a lease.
→ Depreciation rates for miscellaneous assets are 10% and for machinery it is 15% by written down
Method.
→ All the partners will bring Rs.1,75,00,000 in cash. And Rs.45,00,000 loan will be borrowed from the
bank. So, the total capital would be Rs. 2,20,00,000.
Page 8 of 53
STATEMENT SHOWING COST OF PROJECT
COST OF PROJECT
PARTICULARS AMOUNT
MACHINERIES 1,74,77,000
MISCELLANEOUS ASSET 7,58,650
COST OF ESTABLISHMENT 31,500
CONTINGENCY (2%) 4,40,000
CASH ON HAND 57,53,150
TOTAL 2,20,00,000
Note no. - 1
NAME QTY AND PRICE AMOUNT

Mercerizing Machine 1*70,00,000 70,00,000
Bench Machine 1*2,00,000 2,00,000
Batching Machine 2*16,50,000 33,00,000
Flat Blad Machine 1*29,00,000 29,00,000
Rotary Machine 1*20,00,000 20,00,000
Print & Ager Machine 1*19,00,000 19,00,000
Flat Lock Machine 3*15,000 45,000
Sewing Machine 6*22,000 1,32,000
TOTAL ------ 1,74,77,000
Page 9 of 53
Note no. - 2
NAME QTY AND PRICE AMOUNT

CHAIR 30*250 7500
TABLE 12*2500 30,000
COUCH 3*5000 15,000
CUPBOARD 2*3000 6,000
COMPUTER 7*40,000 2,80,000
PRINTER 2*20,000 40,000
AC 3*40,000 1,20,000
WATER COOLER 3*20,000 60,000
FAN 19*1700 32,300
TUBELIGHT 35*130 4550
WALL CLOCK 2*2000 4000
WATERTANK 2*20,000 40,000
FIRE EXTINGUISHER 7*1900 13,300
ROUTER 1*6000 6000
FURNITURE 1,50,000 1,50,000
TOTAL ----- 7,58,650
Page 10 of 53
MEANS OF FINANACE (SOURCE OF FINANCE)
PARTICULARS AMOUNT (RS)

Owner’s fund 1,75,00,000
Borrowed fund (loan) 45,00,000
TOTAL 2,20,00,000
DETAILS OF PARTNER
No. NAME OF PARTNER CAPITAL INVESTMENT

1 Parth Gadhiya 35,00,000
2 Khushi Prajapati 35,00,000
3 Fairy Gohil 35,00,000
4 Kashish Parikh 35,00,000
6 Raviraj Zinzala 35,00,000
TOTAL -------- 1,75,00,000
UTILIZATION OF INSTALLED PRODUCTION CAPACITY
Year 2024-25 2025-26 2026-27 2027-28 2028-29

Utilization of
production 60% 70% 70% 80% 90%
capacity
❖ Raw material
We have assumed that there would be an approximate increase of 5% in the price of the
raw material every year.
❖ Depreciation
Method of depreciation:
We have assumed that the depreciation on different assets would becharged as per written down
Method.
Page 11 of 53
❖ Rate of depreciation:
Assets Percentage
Other Assets 10%
Machinery 15%
DEPRICIATION ACCOUNT
DEPRECIATION SHEET 2024-25 2025-26 2026-27 2027-28 2028-29
PLANT AND MACHINERY 1,74,77,000 1,48,55,450 1,26,27,132.5 1,07,33,062.6 91,23,103.2
DEPRECIATION 26,21,550 22,28,317.5 18,94,069.9 16,09,959.4 1368465.5
WDV OF FIXED ASSET 14855450 12627132.5 10733062.6 91,23,103.2 7754637.7
OTHER CURRENT ASSETS 7,58,650 6,82,785 6,14,506.5 5,53,055.8 4,97,750.2

DEPRECIATION 75,865 68,278.5 61,450.7 55,305.6 49,775
WDV OF FIXED ASSET 682785 614506.5 553055.8 497750.2 447975.2
A) Increase in expenses
Expenses Increase (every year)
Electricity 5% increase
Repair & maintenance 50,000
Stationary 3,000
Advertisement 10% increase
Office expense 5,000
Building lease 3% increase
Water 2%
B) Packaging expenses are expected to be:
Product Increase in percentage

Bedsheet 5%
Page 12 of 53
C) Finished goods:
→ Finished goods are expected to be sold after procurement of 10 days in warehouse.
D) Debtors:
→ Products are sold at credit of 3 months.
E) Creditors:
→ Raw material is purchased at a credit of 3 months.
F) Salaries:
→ Salaries are paid on last date of month.
❖ Wages and Salary:
Wages:
→ There are 20 workers in the factory. Salary will increase 4% for 2025-26 & 2026-27 after that it will
increase 5% for 2027-28 & 2028-29.
→ Auditors fees will be increased by 4 % every year.
❖ Factor Affecting Working Capital:
→ Production and sales activities are carried out evenly throughout the month.
→ Raw materials = Raw material are to be purchased every 1 month. There is no opening and closing stock
of raw material on work-in-progress.
❖ Taxation:
→ Tax rate is 30 % on profit.

→ We have assumed that there are no other indirect or direct taxes such as dividend distribution tax, other
than tax on income.
LOAN RE-PAYMENT SCHEDULE
EMI CALCULATION
OUT
PRINCIPAL INTEREST RE PAYMENT STANDING
YEAR INSTALMENT
AMOUNT @ 11% AMOUNT PRINCIPLE
AMOUNT
2024-25 45,00,000 12,17,532 4,95,000 7,22,532 37,77,468

2025-26 37,77,468 12,17,532 4,15,521 8,02,011 29,75,457
2026-27 29,75,457 12,17,532 3,27,300 8,90,232 20,85,226
2027-28 20,85,226 12,17,532 2,29,375 9,88,157 10,97,069
2028-29 10,97,069 12,17,532 1,20,678 10,96,854 214
Page 13 of 53
CALCULATION OF PRODUCTION CAPACITY
PRODUCTION PRODUCTION PRODUCTION

PRODUCT
PER DAY PER MONTH PER YEAR
SINGLE BED 55 1375 16,500

DOUBLE BED 80 2000 24,000
KING SIZE 75 1875 22,500
TOTAL 210 5,250 63,000
(Note: Here the production is done 25 days per month and total of 300 days in the whole year.)
UTILIZATION OF PRODUCTION CAPACITY
PRODUCT
(UTILIZATION
OF PRODUCTI 2024-25 2025-26 2026-27 2027-28 2028-29
ON)
PERCENTAGE
60% 70% 70% 80% 90%
INCREASE
SINGLE BED 16,500 19,250 19,250 21,656 24,750
DOUBLE BED 24,000 28,000 28,000 32,000 36,000
KING SIZE 22,500 26,250 26,250 30,000 33,750
TOTAL 63,000 73,500 73,500 83,656 94,500
Page 14 of 53
PART-2
STATMENTS
Page 15 of 53
ESTIMATED SALES AND PRODUCTION (IN UNITS)
OVERALL
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29
OPENING STOCK 0 12,600 14,700 14,700 16,800
PRODUCTION 63,000 73,500 73,500 84,000 94,500
CLOSING 12,600 14,700 14,700 16,800 18,900
SALES 50,400 71,400 73,500 81,900 92,400
❖ ESTIMATED SALES PRODUCT WISE
SINGLE BED
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29
OPENING STOCK 0 3300 3850 3850 4400
PRODUCTION 16,500 19,250 19,250 22,000 24,750
CLOSING 3300 3850 3850 4400 4950
SALES 13,200 18,700 19,250 21,450 24,200
DOUBLE BED
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29
OPENING STOCK 0 4800 5600 5600 6400
PRODUCTION 24,000 28,000 28,000 32,000 36,000
CLOSING 4800 5600 5600 6400 7200
SALES 19,200 27,200 28,000 31,200 35,200
KING SIZE
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29
OPENING STOCK 0 4500 5250 5250 6000
PRODUCTION 22,500 26,250 26,250 30,000 33,750
CLOSING 4500 5250 5250 6000 6750
SALES 18,000 25,500 26,250 29,250 33,000
Page 16 of 53
RAW MATERIAL REQUIRED FOR ESTIMATED PRODUCTION
ESTIMATED RAW MATERIAL REQUIRED (QUANTITY)
PRODUCT RAW MATERIAL 2024-25 2025-26 2026-27 2027-28 2028-29

COTTON FABRIC (METER) 24,750 28,875 28,875 33,000 37,125
SINGLE BED PIGMENT COLOUR (KG) 2805 3272.5 3272.5 3740 4207.5
THREAD (NO) 165 192.5 192.5 220 247.5
COTTON FABRIC (METER) 79,200 92,400 92,400 1,05,600 1,18,800

DOUBLE BED PIGMENT COLOUR (KG) 6000 7000 7000 8000 9000
THREAD (NO) 480 560 560 640 720
COTTON FABRIC (METER) 78,750 91,875 91,875 1,05,000 1,18,125

KING SIZE PIGMENT COLOUR (KG) 7425 8662.5 8662.5 9900 11,137.5
THREAD (NO) 517.5 603.75 603.75 690 776.25
ESTIMATED PURCHASE OF RAW MATERIAL IN RS.
ESTIMATED RAW MATERIAL REQUIRED (PRICE)
PRODUCT RAW MATERIAL 2024-25 2025-26 2026-27 2027-28 2028-29

COTTON FABRIC
7,42,500 9,09,563 9,55,041 1146049 1353770
(METER)
SINGLE PIGMENT COLOUR
BED 4,20,750 5,15,419 5,41,190 649428 767136
(KG)
THREAD (NO) 16,500 20,213 21,223 25468 30084
TOTAL 11,79,750 14,45,194 15,17,453 18,20,944 21,50,990
COTTON FABRIC
23,76,000 29,10,600 30,56,130 3667356 4332064
(METER)
DOUBLE PIGMENT COLOUR
BED 9,00,000 11,02,500 11,57,625 1389150 1640933
(KG)
THREAD (NO) 48,000 58,800 61,740 74088 87516
TOTAL 33,24,000 40,71,900 42,75,495 51,30,594 60,60,514
COTTON FABRIC
23,62,500 28,94,063 30,38,766 36,46,519 43,07,450
(METER)
KING PIGMENT COLOUR
SIZE 11,13,750 13,64,344 14,32,561 17,19,073 20,30,655
(KG)
THREAD (NO) 51,750 63,394 66,563 79,876 94354
TOTAL 35,28,000 43,21,800 45,37,890 54,45,468 64,32,459
TOTAL 80,31,750 98,38,894 1,03,30,838 1,23,97,006 1,46,43,963
Page 17 of 53
ESTIMATE DIRECT LABOUR COST FOR THE YEAR 2024- 2025 TO 2028-2029
LABOUR COST
NAME 2024-25 2025-26 2026-27 2027-28 2028-29

WORKER (20) 24,00,000 24,96,000 25,95,840 27,25,440 28,61,520
Total 24,00,000 24,96,000 25,95,840 27,25,440 28,61,520
MANUFACTURING EXPENSES
FACTORY OVERHEAD
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29
SUPERVISOR (1) 3,60,000 3,74,400 3,89,376 4,08,840 4,29,264
PRODUCTION MANAGER (1) 3,00,000 3,12,000 3,24,480 3,40,704 3,57,732
LAB TECHNICIAN (1) 2,40,000 2,49,600 2,59,584 3,32,556 2,86,176
DESIGNER (1) 1,20,000 1,24,800 1,29,792 1,36,272 1,43,076
HELPER(PEON) (1) 1,20,000 1,24,800 1,29,792 1,36,272 1,43,076
CLEANER (2) 1,20,000 1,24,800 1,29,792 1,36,272 1,43,064
ELECTRICITY 12,00,000 12,60,000 13,23,000 13,89,144 14,58,601
REPAIR & MAINTANANCE 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000
DEP. ON MACHINERY 26,21,550 22,28,318 18,94,070 16,09,959 13,68,466
BUILDING LEASE 14,40,000 14,83,200 15,27,696 15,73,524 16,20,720
WATER 5,13,000 5,80,000 5,90,000 6,60,000 7,32,000
INSURANCE (WORKER & MACHINARY) 1,96,400 1,96,400 1,96,400 1,96,400 1,96,400
TOTAL 74,30,950 73,08,318 71,93,982 72,69,943 72,78,575
Page 18 of 53
ADMINISTRATIVE EXPENSES
ADMINISTRATIVE EXPENSES
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29
FINANCE MANAGER 3,00,000 3,12,000 3,24,480 3,40,704 3,57,732
ACCOUNTANT 1,80,000 1,87,200 1,94,688 2,04,420 2,14,632
AUDITOR FEES 40,000 41,600 43,264 44,994 46,793
SECURITY GUARD 1,92,000 1,99,680 2,07,648 2,18,016 2,28,912

DEP. ON FURNITURE (TABLE, CHAIR, COUCH,
75,865 68,279 61,451 55,306 49,775
CUPBOARD)
STATIONARY 10,000 13,000 16,000 19,000 22,000
OFFICE EXPENSE 9,000 9,450 9,992 10,418 10,938
TOTAL 8,06,865 8,31,209 8,57,523 8,92,858 9,30,782
Page 19 of 53
SELLING AND DISTRIBUTION EXPENSES
SELLING & DISRIBUTION (PACKAGING)
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29

SINGLE 92,400 1,37,445 1,48,418 1,73,531 2,05,458
DOUBLE 1,92,000 2,85,600 3,08,560 3,60,984 4,27,680
KING 1,80,000 2,67,750 2,89,275 3,38,423 4,00,950
TOTAL 4,64,400 6,90,795 7,46,253 8,72,937 10,34,088
SELLING & DISRIBUTION (GENERAL)
PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29

ADVERTISING 40,000 44,000 48,400 53,240 58,564
PACKAGING 4,64,400 6,90,795 7,46,253 8,72,937 10,34,088
SALES EXECUTIVE 2,16,000 2,24,640 2,33,616 2,45,292 2,57,556
MARKETING MANAGER 3,00,000 3,12,000 3,24,480 3,40,704 3,57,732
TOTAL 10,20,400 12,71,435 13,52,749 15,12,173 17,07,940
Page 20 of 53
COST SHEET
ESTIMATED COST SHEET FOR THE YEAR 2024-25
PER PER
TOTAL PER UNIT TOTAL UNIT UNIT
TOTAL
COST OF COST OF COST OF COST COST
PARTICULAR COST OF
SINGLE SINGLE DOUBLE OF OF
KING SIZE
BED BED BED DOUBLE KING
BED SIZE
RAW MATERIAL 11,79,750 71.5 33,24,000 138.5 35,28,000 156.8
ADD: DIRECT
4,32,000 26.18 9,36,000 39 10,32,000 45.87
LABOUR
PRIME COST 16,11,750 98 42,60,000 178 45,60,000 203
ADD: FACTORY
13,37,571 81.06 28,98,071 120.75 31,95,309 142.01
OVERHEADS
FACTORY COST 29,49,321 179 71,58,071 298 77,55,309 345
ADD:
ADMINISTRATIVE 1,45,235.70 8.80 3,14,677.35 13.11 3,46,951.95 15.42
OVERHEADS
COST OF
30,94,557 188 74,72,748 311 81,02,260 360
PRODUCTION
ADD: OPENING
0 0 0
STOCK
LESS: CLOSING
6,18,911.34 14,94,550 16,20,452
STOCK
COST OF GOODS
24,75,645 188 59,78,198 311 64,81,808 360
SOLD
ADD: S & D
2,77,733.33 21 3,77,333.33 20 3,65,333.33 20
OVERHEADS
COST OF SALES 27,53,378.69 209 63,55,531.61 331 68,47,141.69 380
PROFIT/LOSS 12,06,621.307 91.411 22,84,468.387 118.98 23,32,858.307 130
SALES 39,60,000 300 86,40,000 450 91,80,000 510
Page 21 of 53
PER PER PER

TOTAL UNIT TOTAL UNIT UNIT
TOTAL
COST OF COST COST OF COST COST
PARTICULAR COST OF
SINGLE OF DOUBLE OF OF
KING SIZE
BED SINGLE BED DOUBLE KING
BED BED SIZE
RAW MATERIAL 14,45,194 75.075 40,71,900 145.425 43,21,800 164.64
ADD: DIRECT LABOUR 4,49,280 23.34 9,73,440 34.766 10,73,280 40.887
PRIME COST 18,94,474 98 50,45,340 180 53,95,080 206
ADD: FACTORY
13,15,497 68.34 28,50,244 101.794 31,42,577 119.717
OVERHEADS
FACTORY COST 32,09,971 167 78,95,584 282 85,37,657 325
ADD:
ADMINISTRATIVE 1,49,617.53 7.77 3,24,171.32 11.578 3,57,419.66 13.616
OVERHEADS
COST OF
33,59,588 175 82,19,755 294 88,95,076 339
PRODUCTION
ADD: OPENING STOCK 618911 1494550 1620452
LESS: CLOSING STOCK 6,71,918 16,43,951 17,79,015
COST OF GOODS
33,06,582 177 80,70,354 297 87,36,513 343
SOLD
ADD: S & D
3,30,991.67 18 4,79,146.67 18 4,61,296.67 18
OVERHEADS
COST OF SALES 36,37,573.75 195 85,49,500.35 314 91,97,809.70 361
PROFIT/LOSS 19,72,426.249 105.477 36,90,499.651 135.680 38,07,190.299 149
SALES 56,10,000 300 1,22,40,000 450 1,30,05,000 510
Page 22 of 53
PER PER PER

TOTAL
PARTICULAR COST OF
KING SIZE
BED BED SIZE
RAW MATERIAL 15,17,453 78.82875 42,75,495 152.69625 45,37,890 172.872
ADD: DIRECT
4,67,251 24.273 10,12,378 36.156 11,16,211 42.522
LABOUR
PRIME COST 19,84,705 103 52,87,873 189 56,54,101 215
ADD: FACTORY
12,94,917 67.268 28,05,653 100.202 30,93,412 117.844
OVERHEADS
FACTORY COST 32,79,621 170 80,93,526 289 87,47,513 333
ADD:
ADMINISTRATIVE 1,54,354.09 8.018 3,34,433.85 11.944 3,68,734.76 14.047
OVERHEADS
COST OF
34,33,975 178 84,27,959 301 91,16,248 347
PRODUCTION
ADD: OPENING
671918 1643951 1779015
STOCK
LESS: CLOSING
6,86,795 16,85,592 18,23,250
STOCK
COST OF GOODS
34,19,098 178 83,86,319 300 90,72,014 346
SOLD
ADD: S & D
3,50,582.83 18 5,10,725.33 18 4,91,440 19
OVERHEADS
COST OF SALES 37,69,680.89 196 88,97,043.88 318 95,63,454 364
PROFIT/LOSS 20,05,319.108 104.172 37,02,956.123 132.248 38,24,045.888 146
SALES 57,75,000 300 1,26,00,000 450 1,33,87,500 510
Page 23 of 53
PER
PER
TOTAL TOTAL PER UNIT UNIT
UNIT TOTAL
COST OF COST OF COST OF COST
PARTICULAR COST OF COST OF
SINGLE DOUBLE DOUBLE OF
SINGLE KING SIZE
BED BED BED KING
BED
SIZE
RAW MATERIAL 18,20,944 82.770 51,30,594 160.331 54,45,468 181.515
ADD: DIRECT
4,90,579 22.299 10,62,922 33.216 11,71,939 39.065
LABOUR
PRIME COST 23,11,523 105 61,93,516 194 66,17,407 221
ADD: FACTORY
13,08,590 59.481 28,35,278 88.602 31,26,076 104.203
OVERHEADS
FACTORY COST 36,20,113 165 90,28,794 282 97,43,483 325
ADD:
ADMINISTRATIVE 1,60,714.37 7.305 3,48,214.46 10.882 3,83,928.77 12.798
OVERHEADS
COST OF
37,80,828 172 93,77,008 293 1,01,27,412 338
PRODUCTION
ADD: OPENING
686795 1685592 1823250
STOCK
LESS: CLOSING
7,56,166 18,75,402 20,25,482
STOCK
COST OF GOODS
37,11,457 173 91,87,198 294 99,25,179 339
SOLD
ADD: S & D
3,86,609.17 18 5,74,062.67 18 5,51,501.17 19
OVERHEADS
COST OF SALES 40,98,066.26 191 97,61,260.94 313 1,04,76,680.11 358
PROFIT/LOSS 25,29,983.736 117.948 46,84,339.063 150.139 48,79,569.894 167
SALES 66,28,050 309 1,44,45,600 463 1,53,56,250 525
Page 24 of 53
PER PER PER

TOTAL COST
PARTICULAR OF KING
SIZE
BED BED SIZE
RAW MATERIAL 21,50,990 86.909 60,60,514 168.348 64,32,459 190.591
ADD: DIRECT
5,15,074 20.811 11,15,993 31.000 12,30,454 36.458
LABOUR
PRIME COST 26,66,064 108 71,76,507 199 76,62,913 227
ADD: FACTORY
13,10,143 52.935 28,38,644 78.851 31,29,787 92.734
OVERHEADS
FACTORY COST 39,76,207 161 1,00,15,151 278 1,07,92,700 320
ADD:
ADMINISTRATIVE 1,67,540.76 6.769 3,63,004.98 10.083 4,00,236.26 11.859
OVERHEADS
COST OF
41,43,748 167 1,03,78,156 288 1,11,92,936 332
PRODUCTION
ADD: OPENING
756166 1875402 2025482
STOCK
LESS: CLOSING
8,28,750 20,75,631 22,38,587
STOCK
COST OF GOODS
40,71,164 168 1,01,77,926 289 1,09,79,831 333
SOLD
ADD: S & D
4,30,075.33 18 6,52,297.33 19 6,25,567.33 19
OVERHEADS
COST OF SALES 45,01,239.28 186 1,08,30,223.79 308 1,16,05,398.50 352
PROFIT/LOSS 31,94,360.723 131.998 56,08,176.208 159.323 62,14,601.496 188
SALES 76,95,600 318 1,64,38,400 467 1,78,20,000 540
Page 25 of 53
TRADING, PROFIT AND LOSS ACCOUNT
PROFIT AND LOSS STATEMENT OF DIVINELOOMS FOR YEAR ENDING ON –

31/03/2025
TRADING ACCOUNT
PARTICULAR AMOUNT PARTICULAR AMOUNT

OPENING STOCK SALES ACCOUNT
PURCHASE ACCOUNT SALES 2,17,80,000
RAW MATERIAL PURCHASE 80,31,750
DIRECT LABOUR 24,00,000 CLOSING STOCK 37,33,913
PACKAGING EXPENSE 4,64,400
GROSS PROFIT 1,46,17,763
TOTAL 2,55,13,913 TOTAL 2,55,13,913
PROFIT & LOSS ACCOUNT

TO GROSS LOSS B/D BY GROSS PROFIT 1,46,17,763
TO SALARIES 21,48,000
TO OFFICE RENT 14,40,000
TO PRINTING & STATIONARY 10,000
TO INSURANCE 196400
TO AUDIT FEES 40,000
TO ELECTRICITY CHARGES 12,00,000
TO INTEREST ON MACHINERY LOAN 4,95,000
TO REPAIR & RENEWALS 2,00,000
TO DEPRECIATION 26,97,415
TO ADVERTISEMENT 40,000
TO PROFESSIONAL FEES FINANCE M. 3,00,000
TO OFFICE EXPENSE 9,000
TO COST OF ESTABLISHMENT 31,500
TO WATER EXPENSE 5,13,000
TO CONTINGENCY 4,40,000
TO PROFIT BEFORE TAX (48,57,448)
TO TAX (30%) 14,57,234
TO PROFIT AFTER TAX 34,00,214
TOTAL 1,46,17,763 TOTAL 1,46,17,763
Page 26 of 53
31/03/2026
TRADING ACCOUNT

OPENING STOCK 37,33,913 SALES ACCOUNT
RAW MATERIAL PURCHASE 98,38,894
TOTAL 3,49,49,884 TOTAL 3,49,49,884

TO GROSS LOSS B/D BY GROSS PROFIT B/D 1,81,90,282
TO INSURANCE 1,96,400
TO TAX (30%) 25,84,378
TOTAL 1,81,90,282 TOTAL 1,81,90,282
Page 27 of 53
31/03/2027
TRADING ACCOUNT

RAW MATERIAL PURCHASE 1,03,30,838
TOTAL 3,59,58,137 TOTAL 3,59,58,137

TO TAX (30%) 26,29,506
TOTAL 1,81,90,322 TOTAL 1,81,90,322
Page 28 of 53
31/03/2028
TRADING ACCOUNT

TOTAL 4,10,86,949 TOTAL 4,10,86,949

TO PROFIT BEFORE TAX (1,14,24,518)
TO TAX (30%) 34,27,355
TOTAL 2,08,95,930 TOTAL 2,08,95,930
Page 29 of 53
31/03/2029
TRADING ACCOUNT

TOTAL 4,70,96,968 TOTAL 4,70,96,968

TO PROFIT BEFORE TAX (1,44,56,461)
TO TAX (30%) 43,36,938
TO PROFIT AFTER TAX 1,01,19,523
TOTAL 2,39,00,347 TOTAL 2,39,00,347
Page 30 of 53
BALANCE SHEET
BALANCE SHEET OF DIVINELOOMS AS AT 31/03/2025
BALANCE SHEET
NOTE Figures at the end of

PARTICULARS
NO. Current reporting period
I. EQUITY AND LIABILITIES:

1. SHAREHOLDER’S FUNDS
A) SHARE CAPITAL (PARNTER’S FUND) 1,75,00,000
B) RESERVES AND SURPLUS 38,40,214
2. SHARE APPLICATION MONEY PENDING
ALLOTMENT
3. NON-CURRENT LIABILITIES:
A) LONG-TERM BORROWINGS 37,77,468
B) LONG-TERM PROVISIONS
4. CURRENT LIABILITIES:
A) SHORT-TERM BORROWINGS
B) TRADE PAYABLES 32,12,700
C) OTHER CURRENT LIABILITIES
D) SHORT-TERM PROVISIONS
TOTAL 2,83,30,382
II. ASSETS:
1.NON-CURRENT ASSETS:
A) PROPERTY, PLANT AND EQUIPMENT
I) MACHINERY 1,48,55,450
II) OTHER ASSET 682785
B) NON-CURRENT INVESTMENTS
2. CURRENT ASSETS:
A) CURRENT INVESTMENTS
B) INVENTORIES 37,33,913
C) TRADE RECECIVABLES 43,56,000
D) CASH AND CASH EQUIVALENTS 47,02,234
E) SHORT-TERM LOANS AND ADVANCES
F) OTHER CURRENT ASSETS
TOTAL 2,83,30,382
Page 31 of 53
BALANCE SHEET

PARTICULARS

ALLOTMEN
B) TRADE PAYABLES 39,35,557.5
TOTAL 3,17,81,445
II. ASSETS:
II) OTHER ASSET 6,14,506.5
E) OTHER NON-CURRENT ASSETS
2. CURRENT ASSETS:
D) CASH AND CASH EQUIVALENTS 82,73,922
TOTAL 3,17,81,445
Page 32 of 53
BALANCE SHEET

PARTICULARS

ALLOTMEN
B) TRADE PAYABLES 41,32,335
TOTAL 3,22,23,506
II. ASSETS:
2. CURRENT ASSETS:
D) CASH AND CASH EQUIVALENTS 1,03,89,251
TOTAL 3,22,23,506
Page 33 of 53
BALANCE SHEET

PARTICULARS

ALLOTMEN
TOTAL 3,25,58,978
II. ASSETS:
I) MACHINERY 91,23,103
II) OTHER ASSET 497750.2
2. CURRENT ASSETS:
TOTAL 3,25,58,978
Page 34 of 53
BALANCE SHEET

PARTICULARS

B) RESERVES AND SURPLUS 1,05,59,523
ALLOTMEN
A) LONG-TERM BORROWINGS 214
TOTAL 3,24,80,429
II. ASSETS:
I) MACHINERY 77,54,638
2. CURRENT ASSETS:
TOTAL 3,24,80,429
Page 35 of 53
CASH FLOW STATEMENT OF DIVINELOOMS FOR 2024-25 TO 2028-29
STATEMENT SHOWING CASH FLOW OF THE YEAR ENDING 31ST MARCH
SR. PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29

NO
(A) CASH FLOW FROM OPERATION ACTIVITIES
CASH INFLOW:
CASH SALES 1,74,24,000 2,46,84,000 2,54,10,000 2,91,43,920 3,35,63,200
DEBTORS 43,56,000 61,71,000 63,52,500 72,85,980
LESS: CASH OUT FLOW
RAW MATERIAL -48,19,050 -59,03,336 -61,98,503 -74,38,204 -87,86,378
LABOUR O/H -24,00,000 -24,96,000 -25,95,840 -27,25,440 -28,61,520
FACTORY O/H -48,09,400 -50,80,000 -52,99,912 -56,59,984 -59,10,109
ADMINISTRATIVE O/H -7,31,000 -7,62,930 -7,96,072 -8,37,552 -8,81,007

SELLING &
-10,20,400 -12,71,435 -13,52,749 -15,12,173 -17,07,940
DISTRIBUTION O/H
CREDITORS -3212700 -3935558 -4132335 -4958802
CONTINGENCY -4,40,000 -4,40,000 -4,40,000 -4,40,000

CASH FLOW FROM
OPERATING 36,44,150 98,73,599 1,09,62,367 1,27,50,732 1,53,03,423
ACTIVITY
LESS: TAX PAID -14,57,234 -25,84,378 -26,29,506 -34,27,355 -43,36,938
NET CASHFLOW
FROM OPERATING 21,86,916 72,89,220 83,32,861 93,23,377 1,09,66,485
ACTIVITY
(B) CASHFLOW FROM INVESTING ACTIVITY
MACHINERY -17477000 0
MISC. ASSETS -758650 0

COST OF
-31,500 0
ESTABLISHMENT
NET CASHFLOW
FROM INVESTING -1,82,67,150
ACTIVITY
Page 36 of 53
(C) CASH FLOW FROM FINANCING ACTIVITY
PARTNERS CAPITAL 1,75,00,000 0
LOAN BORROWED 45,00,000 0
INTEREST PAID -4,95,000 -4,15,521 -3,27,300 -2,29,375 -1,20,678

REPAYMENT OF
-7,22,532 -8,02,011 -8,90,232 -9,88,157 -10,96,854
LOAN
PARTNER'S
-25,00,000 -50,00,000 -75,00,000 -1,00,00,000
WITHDRAWAL
NET CASHFLOW
FROM FINANCING 2,07,82,468 -37,17,532 -62,17,532 -87,17,532 -1,12,17,532
ACTIVITY
TOTAL (A+B+C) 47,02,234 35,71,688 21,15,329 6,05,845 -2,51,047
ADD: OPENING BALANCE 47,02,234 82,73,922 1,03,89,251 1,09,95,095
CLOSING BALANCE 47,02,234 82,73,922 1,03,89,251 1,09,95,095 1,07,44,048
Page 37 of 53
PART-3
EVALUATION
Page 38 of 53
PAY BACK PERIOD
CUMULATIVE CASH FLOW AFTER

YEAR CASH FLOW AFTER TAX
TAX
2024-25 21,86,916 21,86,916
2025-26 72,89,220 94,76,136
2026-27 83,32,861 1,78,08,997
2027-28 93,23,377 2,71, 32,374
2028-29 1,09,66,485 3,80,98,859
Cost of project = 2,20,00,000
Payback period =3 + 2,20,00,000 – 1,78,08,997

93,23,377
= 3 + 0.45
= 3.45 years
So, Pay Back Period is 3.45 years.
The lower the PBP more beneficial the business.
Page 39 of 53
NET PRESENT VALUE
Calculating discounting rate:
CASH FLOW DISCOUNTING RATE

YEAR PV OF CASH FLOW
AFTER TAX 11%
2024-25 21, 86,916 0.901 19,80,411
2025-26 72,89,220 0.812 59, 18,847
2026-27 83,32,861 0.731 60,91,321
2027-28 93,23,377 0.659 61,44,105
2028-29 1,09,66,485 0.593 65,03,126
TOTAL 3,30,98,859 2.66,27,810
Net present value = PV of cash inflow – PV of cash outflow

= 2,66,27,810 – 2,20,00,000
= 46,27,810
In our business NPV is Positive so we can say that investment in business is Positive.
The amount of NVP is Rs.46,27,810
Page 40 of 53
INTERNAL RATE OF RETURN
CASH PV OF PV OF
DISCOUNTING DISCOUNTING
YEAR FLOW CASH CASH
@ 12% @ 15%
AFTER TAX FLOW FLOW
2023-24 21,86,916 0.893 19,52,916 0.870 19,02,617
2024-25 72,89,220 0.797 58,09,508 0.756 55,10,650
2025-26 83,32,861 0.712 59,32,997 0.658 54,83,023
2026-27 93,23,377 0.636 59,29,668 0.572 54,32,972
2027-28 1,09,66,485 0.567 62,17,997 0.497 54,50,343
PV of cash
2,58,43,086 2,36,79,604
inflow(A)
PV of cash
2,20,00,000 2,20,00,000
outflow (B)
Net present
38,43,086 16,79,604
value (A-B)
Interpolation between 12% and 15%: -

=12% + (38,43,086) ÷ (38,43,086 +16,79,604)
*0.3%
=17.33%
Internal rate of returns PS = 17.33%.
Page 41 of 53
RATIO ANALYSIS
1. LIQUIDITY RATIO
A) CURRENT RATIO
Current Ratio = Current Asset/Current Liabilities
CURRENT
YEAR CURRENT ASSETS CURRENT RATIO
LIABILITIES
2024-2025 12792147 3212700 3.98
2025-2026 18539806 3935557.5 4.71
2026-2027 20937388 4132335 5.06
2027-2028 22938124 4958802.45 4.62
2028-2029 24277816 5857585.4 4.41
CURRENT RATIO
6
5.06
5 4.62
4.71 4.41
4
3.98
0
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Analysis:
→ A higher current ratio is always more favorable than a lower current ratio because it shows that company
can easily make current debt payments.
→ Ideal current ratio is 2:1. In our business current ratio is showing an increasing 3 years trend which shows
that current assets are increasing in the business over the period of time.
Page 42 of 53
B) LIQUID RATIO
Liquid Ratio = Liquid Asset/Liquid Liabilities

Liquid Asset = Current Asset-Stock/Inventory
Liquid Liability = Current Liability-Bank Overdraft
YEAR LIQUID ASSET LIQUID LIABILITY LIQUID RATIO

2024-2025 9058234 3212700 2.82
2025-2026 14444922 3935557.5 3.67
2026-2027 16741751 4132335 4.05
2027-2028 18281075 4958802.45 3.69
2028-2029 19134848 5857585.4 3.27
Note: We don’t have bank overdraft so liquid liability is same as current liability.
LIQUID RATIO
4.5
4.05
4
3.69
3.5
3.27
3.67
3
2.82
2.5
2 ratio
1.5
0.5
0
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
Analysis:
→ Liquidity ratio compares current assets except stock and current liabilities except bank overdraft.
→ The Liquidity ratio is 1:1. It is good as the standard Liquidity ratio is more than 1 and we already have
more than 1.
→ The higher ratio, the higher is the safety margin and strong financial position.
Page 43 of 53
2. TURNOVER RATIO
A) FIXED ASSET TURNOVER RATIO
Fixed Asset Turnover Ratio = Sales / Fixed Assets
Year Sales FA Ratio (In Times)

2024 - 25 ₹ 2,17,80,000 ₹ 1,55,38,235 1.40
2025 - 26 ₹ 3,08,55,000 ₹ 1,32,41,639 2.33
2026 - 27 ₹ 3,17,62,500 ₹ 1,12,86,118 2.81
2027 - 28 ₹ 3,64,29,900 ₹ 96,20,853 3.79
2028 - 29 ₹ 4,19,54,000 ₹ 82,02,613 5.11
Fixed Asset Turnover Ratio

6.00
5.11
5.00
3.79
4.00
2.81
3.00
2.33
2.00 1.40
1.00
0.00
2024 - 25 2025 - 26 2026 - 27 2027 - 28 2028 - 29
Analysis:
→ The Fixed Asset Turnover Ratio evaluates the efficiency of a company in utilizing its fixed assets to
generate sales revenue. It is calculated by dividing sales by the value of fixed assets.
→ Analysis of the Fixed Asset Turnover Ratio indicates an increasing trend over the years. In 2024-25, the
ratio was 1.40, suggesting that for every ₹1 of fixed assets, ₹1.40 of sales revenue was generated.
→ However, this ratio steadily increased in subsequent years, reaching 5.11 in 2028-29. This upward trend
signifies an improvement in the company's ability to generate sales revenue per unit of fixed assets,
indicating greater efficiency in asset utilization.
→ The line graph would depict an upward slope, indicating an increasing ratio over the five-year period.
→ This visual representation highlights the company's improving efficiency in utilizing its fixed assets to
generate sales revenue over time.
Page 44 of 53
B) STOCK TURNOVER RATIO
Stock Turnover Ratio = COGS / Average Stock
YEAR COGS AVERAGE STOCK RATIO (IN TIMES)
2024 - 25 ₹ 71,62,237 ₹ 18,66,956.50 3.84
2025 - 26 ₹ 1,26,64,718 ₹ 39,14,398.50 3.24
2026 - 27 ₹ 1,35,72,178 ₹ 41,45,260.50 3.27
2027 - 28 ₹ 1,55,33,970 ₹ 44,26,343.00 3.51
2028 - 29 ₹ 1,80,53,653 ₹ 49,00,008.50 3.68
Stock Turnover Ratio

3.90
3.80
3.84
3.70
3.60 3.68
3.50
3.40 3.51
3.30
3.20 3.27
3.24
3.10
3.00
2.90
2024 - 25 2025 - 26 2026 - 27 2027 - 28 2028 - 29
Analysis:
→ The Stock Turnover Ratio assesses how efficiently a company manages its inventory by comparing the
cost of goods sold (COGS) to the average stock level. It is calculated by dividing COGS by the average
stock.
→ Analysis of the Stock Turnover Ratio shows a fluctuating trend over the years. In 2024-25, the ratio was
3.84, indicating that the company turned over its stock approximately 3.84 times during the year.
→ However, this ratio varied slightly in subsequent years, with values ranging from 3.24 to 3.68. Overall, the
ratio remained relatively stable, suggesting consistent inventory management efficiency.
→ Stock Turnover Ratio would demonstrate fluctuations within a relatively narrow range from 2024-25 to
2028-29. This visual representation highlights the stability in the company's inventory management
efficiency over time.
Page 45 of 53
C) WORKING CAPITAL TURNOVER
Working Capital Turnover Ratio = COGS / Net Working Capital
YEAR COGS NET WORKING CAPITAL RATIO (IN TIMES)
2024 - 25 ₹ 71,62,237 ₹ 95,79,447.00 0.75
2025 - 26 ₹ 1,26,64,718 ₹ 1,16,28,791.50 1.09
2026 - 27 ₹ 1,35,72,178 ₹ 1,47,19,827.00 0.92
2027 - 28 ₹ 1,55,33,970 ₹ 1,68,82,252.55 0.92
2028 - 29 ₹ 1,80,53,653 ₹ 1,84,20,016.61 0.98
Working Capital Turnover Ratio

1.20
1.00 1.09
0.98
0.80 0.92 0.92
0.60 0.75
0.40
0.20
0.00
2024 - 25 2025 - 26 2026 - 27 2027 - 28 2028 - 29
Analysis:
→ The Working Capital Turnover Ratio measures a company's efficiency in utilizing its net working capital
to generate sales revenue. It is calculated by dividing the cost of goods sold (COGS) by the net working
capital.
→ Analysis of the Working Capital Turnover Ratio uncovers fluctuations in operational efficiency over the
five-year period. In 2024-25, the ratio was 0.75, suggesting that for every unit of net working capital, the
company generated 0.75 units of sales revenue.
→ However, subsequent years witnessed variations in the ratio, with values ranging from 0.92 to 1.09.
Despite these fluctuations, the overall trend indicates a degree of stability in the company's management
of working capital efficiency.
→ The graph would portray deviations around an average value, showcasing the company's changing
efficiency in utilizing its net working capital to generate sales revenue over the five-year period.
→ This graphical representation underscores the variability in the company's management of its working
Page 46 of 53
capital efficiency over time.
3. PROFITABILITY RATIO
A) GROSS PROFIT RATIO
Gross Profit Ratio = Gross Profit/Sales x 100
YEAR GROSS PROFIT SALES GP RATIO
2024-25 1,46,17,763 2,17,80,000 67.12 %
2025-26 1,81,90,282 3,08,55,000 58.95 %
2026-27 1,81,90,322 3,17,62,500 57.26 %
2027-28 2,08,95,930 3,64,29,900 57.36 %
2028-29 2,39,00,347 4,19,54,000 56.97 %
68.00%
67.12%
66.00%
64.00%
62.00%
58.95%
60.00%
57.26% 57.36%
58.00% 56.97%
56.00%
54.00%
52.00%
50.00%
2024-25 2025-26 2026-27 2027-28 2028-29
Analysis:
→ The table presents gross profit ratios for the years 2024-2029, showcasing fluctuations in profitability.
In 2024-25, the ratio peaked at 67.12%, indicating strong profitability relative to sales.
→ However, by 2025-26, it decreased to 58.95%, suggesting a potential decline in efficiency.
→ The subsequent years showed fluctuations, with 2028-29 recording a ratio of 56.97%, possibly
indicating a need for strategic adjustments to improve profitability and optimize sales performance.
Page 47 of 53
B) NET PROFIT RATIO
Net Profit Ratio = Net profit (Profit after tax) / Sales * 100
YEAR NET PROFIT SALES N.P RATIO (%)

2024 - 25 ₹ 34,00,214 ₹ 2,17,80,000 15.61
2025 - 26 ₹ 60,30,216 ₹ 3,08,55,000 19.54
2026 - 27 ₹ 61,35,515 ₹ 3,17,62,500 19.32
2027 - 28 ₹ 79,97,162 ₹ 3,64,29,900 21.95
2028 - 29 ₹ 1,01,19,523 ₹ 4,19,54,000 24.12
30
24.12
25
21.95
19.54 19.32
20
15.61
15
Series 1
10
0
2024 - 25 2025 - 26 2026 - 27 2027 - 28 2028 - 29
Analysis:
→ Net profit Ratio shows the actual profit on the basis of Sales.
→ If the Ratio would high it means that firms can be stable in future Plans & Action.
→ We can analyses from the above data, In Year 2024-25 the Net Profit Ratio is 15.61% and it is increasing
to 19.54% in Year 2025-26.
→ But in Year 2026-27 the Net Profit Ratio is decreased to 19.32%.
→ In Year 2027-28 & Year 2028-29 the Net Profit Ratio is to be constantly increasing.
→ The Total No. of 5 Year in the Net Profit Ratio is increasing 15.61 % to 24.12% and it is showing the
growth of the Net profit in the Business.
Page 48 of 53
C) RETURN ON ASSET RATIO
Return on Asset Ratio = Net Income/Total Average Asset * 100
NET TOTAL TOTAL AVERAGE RETURN ON

YEAR
INCOME ASSETS ASSETS ASSETS (IN %)
2024-25 34,00,214 2,83,30,382 2,83,30,382 12
2025-26 60,30,216 3,17,81,445 3,00,55,914 20
2026-27 61,35,515 3,22,23,506 3,20,02,476 19.17
2027-28 79,97,162 3,25,58,978 3,23,91,242 24.69
2028-29 1,01,19,253 3,24,80,429 3,25,19,704 31.12
Return On Asset Ratio

35
31.12
30
24.69
25
20
19.17
20
15 12
10
0
2024-25 2025-26 2026-27 2027-28 2028-29
Analysis:
→ Return on asset ratio shows how efficient a company is using it assets to generate profits.
→ Here, we can see that the ratio is increasing for starting two years.
→ In 2026-27 the ratio would be decreased at 19.17% than the ratio again increased.
→ The line graph is depicting a steady rise from 12% in 2024-25 to 31.12% in 2028-29. Overall, the graph
goes to upward and it shows the good return on assets.
Page 49 of 53
4. SOLVENCY RATIO
A) DEBT EQUITY RATIO
Debt-Equity Ratio: Total Debt. / Eq. Share Holder Fund
YEAR TOTAL DEBT(RS.) EQ.SH.HOLDER FUND(RS.) RATIO
2024-25 69,90,168 2,47,40,428 0.28:1
2025-26 69,11,014.5 3,09,00,646 0.22:1
2026-27 62,17,561 3,21,41,460 0.19:1
2027-28 60,55,871.45 3,45,00,268 0.17:1
2028-29 58,57,799.39 3,67,42,153 0.15:1
0.3
0.28
0.25
0.22
0.2 0.19
0.17
0.15 0.15
0.1
0.05
0
2024-25 2025-26 2026-27 2027-28 2028-29
Analysis:
→ Debt-equity ratio describe how much debt a company has compare to its assets.
→ If the ratio is less, it means that firm can be a less risky for leaders and investors.
→ In year 2024-25 debt-equity ratio is 0.28 and it is decreasing in year 2025-26 to 0.22
→ In year 2028-29 it can be a decreasing at 0.15.
Page 50 of 53
B) INTEREST COVERAGE RATIO
Interest Covering Ratio = Profit Before Tax + Finance Cost/Loan
INTEREST
PROFIT FINANCE
YEAR LOAN COVERAGE RATIO
BEFORE TAX COST
(IN TIMES)
2024-25 48,57,448 3,00,000 4,95,000 10.42

2025-26 86,14,594 3,12,000 4,15,521 21.48
2026-27 88,32,021 3,24,480 3,27,300 27.98
2027-28 1,14,24,517 3,40,704 2,29,375 51.29
2028-29 1,44,56,461 3,57,732 1,20,678 122.76
140
120 122.76
100
80
60
51.29
40
27.98
20 21.48
10.42
0
2024-25 2025-26 2026-27 2027-28 2028-29
Analysis:
→ Interest covering ratio used to determine how easily a company can pay interest on its outstanding debt.
→ There is trend of increasing interest covering ratio over the years. In current year 2024-25 the ratio stands
at 10.42 times than it continuously growing over the years.
→ In last year 2028-29 the ratio touches their peak at 122.76 times.
Page 51 of 53
LIMITATION
The project revolves around some basic assumptions in the beginning which may not be wholly correct and it
is likely to fluctuate. Some of the limitations which can be pointed are given as under:
1. The estimations related to Production, Sales are only based on assumption and its practical implementation
in real life maybe not be wholly correct and it may fluctuate in real life.
2. It has been assumed that the project will be grow under the conditions but it may also fluctuate in real life.
3. This project is Only the basic assumptions in all areas of this project so in real life the situation may be
totally different from this.
4. Due to lack of knowledge and expertise this project may not be feasible enough to start such business.
5. The data obtained might not be accurate and appropriate though the best have been tried to achieve.
Page 52 of 53
CONCLUSION
When we want to start a new business, we should have knowledge about all the areas regarding to the project
like marketing, Finance, Human resources management, Technological Knowledge, Estimation related to
project and Many other areas like science, statistics, psychology.
Calculation about the profit, loss, capital, production, Sales etc. are made in this project.
This Project is about financial feasibility and during the process of this project, All the practical aspects
pertaining to Finance were applied which was very useful for the knowledge purpose. And we have studied
that the feasibility reports are helpful us in estimate the future of our company and assumptions of our
company.
We hope that this project will helpful in estimate about the future.
Page 53 of 53

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GROUP MEMBERS

SR. NO. NAME ROLL NUMBER

1 Andodariya Kaushik Mahendrabhai 3094

2 Boghani Tushar Rameshbhai 3097

3 Chovatiya Sahil Savajibhai 3101

4 Gadhiya Parth Bharatbhai 3109

5 Gohil Fairy Tushar 3111

6 Panchal Devkumar Amrutbhai 3130

7 Parekh Kashish Dilpeshbhai 3135

8 Prajapati Khushi Ketanbhai 3148

9 Radadiya Amishaben Bhanubhai 3151

10 Shah Dhruvi Pareshkumar 3159

11 Shah Nirali Amitbhai 3161

12 Zinzala Raviraj Batukbhai 3183

Project Mentor: DR. ISMAIL BOOTWALA

Date of Submission: 5th April, 2024

Ensure constant availability of money

Attaining optimum capital structure

TAGLINE ELEVATE YOUR SLEEP EXPERIENCE

plot no.110, piplaj gam road, piplaj,

CONTACT NO. +919510862079

CONSTITUTION PARTNERSHIP FIRM

PARTNER’S FUND 1,75,00,000

BORROWED FUND 45,00,000

MISCELLANEOUS ASSET 7,58,650

COST OF ESTABLISHMENT 31,500

CONTINGENCY (2%) 4,40,000

CASH ON HAND 57,53,150

NAME QTY AND PRICE AMOUNT

NAME QTY AND PRICE AMOUNT

TOTAL ----- 7,58,650

PARTICULARS AMOUNT (RS)

No. NAME OF PARTNER CAPITAL INVESTMENT

UTILIZATION OF INSTALLED PRODUCTION CAPACITY

Year 2024-25 2025-26 2026-27 2027-28 2028-29

Other Assets 10%

OTHER CURRENT ASSETS 7,58,650 6,82,785 6,14,506.5 5,53,055.8 4,97,750.2

Expenses Increase (every year)

B) Packaging expenses are expected to be:

Product Increase in percentage

❖ Wages and Salary:

❖ Factor Affecting Working Capital:

→ Tax rate is 30 % on profit.

LOAN RE-PAYMENT SCHEDULE

2024-25 45,00,000 12,17,532 4,95,000 7,22,532 37,77,468

PRODUCTION PRODUCTION PRODUCTION

SINGLE BED 55 1375 16,500

UTILIZATION OF PRODUCTION CAPACITY

❖ ESTIMATED SALES PRODUCT WISE

ESTIMATED RAW MATERIAL REQUIRED (QUANTITY)

PRODUCT RAW MATERIAL 2024-25 2025-26 2026-27 2027-28 2028-29

COTTON FABRIC (METER) 79,200 92,400 92,400 1,05,600 1,18,800

COTTON FABRIC (METER) 78,750 91,875 91,875 1,05,000 1,18,125

ESTIMATED PURCHASE OF RAW MATERIAL IN RS.

ESTIMATED RAW MATERIAL REQUIRED (PRICE)

PRODUCT RAW MATERIAL 2024-25 2025-26 2026-27 2027-28 2028-29

TOTAL 80,31,750 98,38,894 1,03,30,838 1,23,97,006 1,46,43,963

NAME 2024-25 2025-26 2026-27 2027-28 2028-29

PARTICULAR 2024-25 2025-26 2026-27 2027-28 2028-29

SUPERVISOR (1) 3,60,000 3,74,400 3,89,376 4,08,840 4,29,264