Roi


This query is : Resolved 

29 September 2011 sir please help me please check this is it right ROI



Discription Expense INR Expense Euro Remarks
Establishment Cost 2,220,000 34154
Machenery Cost 13,000,000 200000
Machinary fixation and trail run cost 0
Rent Cost 100,000 1,200,000 18462
Fixed Expenses 100,000 1,200,000 18462
Production Cost 0 0
Raw Material Cost 437,500 5,250,000 80769
0 0
Electicity cost 50,000 600,000 9231
Manpower cost 300,000 3,600,000 55385
Transpotation Cost 100,000 1,200,000 18462
Marketing Cost 100,000 1,200,000 18462
ToTal expenditure 16,407,500 14,250,000 453385




Mnufacturing cost per ton Sale per ton EBIT
RS 40,000.00 RS 60,000.00
Ist year sale (30 tons) RS 14,400,000.00 RS 21,600,000.00 RS 7,200,000.00

2nd year sale (50 tons) RS 24,000,000.00 RS 36,000,000.00 RS 12,000,000.00

3rd year sale (70 tons) RS 33,600,000.00 RS 50,400,000.00 RS 16,800,000.00

EBIT for 3 years RS 36,000,000.00


Total investment RS 87,220,000.00


ROI for 3 years 41.27493694



ROI = profits/capital Employed


profits = Sales-Manufacturing cost

Manf. Cost = Manpower+overheads+Material


Capital Employed = Fixed assets+current Assets

29 September 2011 well the ROI for the period of three year will be 41.34 %
but yeARLY roi will be 41.34/3 i.e. 13.45 %
in my opinion

29 September 2011 in my opinion all the costs must be deducted not only manufacturing costs

30 September 2011 Sir is this percentage show loss or gain in business


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details