Roi


This query is : Resolved 

(Querist)
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

Rekha Sharma (Querist)
30 September 2011 Sir is this percentage show loss or gain in business


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