ABSTRACT

Skyy Rider Electric Pvt Ltd, a leading player in the electric mobility sector, is an
emerging company dedicated to providing sustainable, high-performance electric
vehicles (EVs) for the modern consumer. In collaboration with Centurion University of
Technology and Management, Skyy Rider Electric aims to drive innovation and foster a
greener, more eco-conscious future through cutting-edge electric transportation
solutions.

The company specializes in the design, development, and production of electric two-
wheelers, catering to a growing market demand for environmentally friendly, cost-
efficient, and smart mobility solutions. Skyy Rider Electric integrates advanced
technology to deliver electric scooters and bikes that offer superior performance,
extended battery life, and fast-charging capabilities. With a strong focus on R&D, the
company is committed to continuously enhancing its vehicles' efficiency, durability, and
user experience.

Skyy Rider Electric’s vision aligns with Centurion University’s commitment to

sustainable development and technological advancement. The partnership aims to further
enhance the company’s product offerings by incorporating research from academia,
innovation hubs, and the university's specialized engineering and sustainability
programs. Through this collaboration, the company hopes to integrate the latest
advancements in electric vehicle technology, including smart connectivity features, AI-
driven performance monitoring, and next-gen battery solutions.

The company also prioritizes the development of a comprehensive EV ecosystem, which

includes a reliable network of charging stations and an extensive after-sales service
structure to support customers in their transition to electric mobility. Skyy Rider
Electric’s business model not only focuses on manufacturing but also emphasizes
strategic partnerships, distribution networks, and educational initiatives, to accelerate the
adoption of EVs across diverse consumer segments.
Skyy Rider Electric Pvt Ltd, with the support of Centurion University of Technology
and Management, is poised to play a pivotal role in India’s electric vehicle revolution,
contributing to the country’s sustainability goals and shaping the future of transportation.
 CHAPTER-1
INTRODUCTION

1.1 Skyy Rider Electric Pvt Ltd

Skyy Rider Electric Pvt Ltd is a dynamic and forward-thinking company
dedicated to transforming the landscape of urban mobility through the
development and production of electric vehicles (EVs). It is founded by
Nihar Ranjan Panda and his Team, Specializing in electric two-wheelers,
Skyy Rider Electric aims to provide an eco-friendly and sustainable
alternative to traditional petrol-powered transportation. The company focuses
on providing innovative, affordable, and energy-efficient electric scooters and
bikes that meet the needs of modern consumers while contributing to a
cleaner, greener environment.

In partnership with Centurion University of Technology and Management

(CUTM), Skyy Rider Electric benefits from the academic and technological
expertise of one of India’s leading educational institutions. Centurion
University, known for its emphasis on engineering excellence and research-
driven innovations, plays a key role in supporting Skyy Rider Electric’s
growth. Through collaborative efforts, the university aids in the research,
development, and refinement of new technologies to enhance the
performance, safety, and efficiency of Skyy Rider’s electric vehicles.
Skyy Rider Electric’s vision aligns with the global shift towards sustainability
and renewable energy.

As part of India’s commitment to reducing its carbon footprint and addressing

environmental challenges, Skyy Rider aims to lead the charge in the electric
vehicle revolution. The company’s electric two-wheelers are designed to be
high-performing, cost-effective, and equipped with the latest technology,
offering long-range capabilities, fast-charging features, and smart
connectivity for a superior user experience.
1.2 FINANCIAL STATEMENT
Income Statement (Profit & Loss Statement)
For FY 2021-22 (1st Year of Operations)
Particulars Amount (INR)
Revenue (Sales) 20,00,000
Cost of Goods Sold (COGS) 12,00,000
Gross Profit 8,00,000
Operating Expenses
- Salaries and Wages 2,00,000
- Rent (Office/Factory Space) 1,50,000
- Marketing and Advertising 1,00,000
- Research & Development (R&D) 1,50,000
Total Operating Expenses 6,00,000
Operating Profit (EBIT) 2,00,000
Interest Expense 50,000
Net Profit Before Tax (PBT) 1,50,000
Tax Expense (20%) 30,000
Net Profit (PAT) 1,20,000
For FY 2022-23 (2nd Year of Operations)
Particulars Amount (INR)
Revenue (Sales) 45,00,000
Cost of Goods Sold (COGS) 28,00,000
Gross Profit 17,00,000
Operating Expenses
- Salaries and Wages 4,00,000
- Rent (Office/Factory Space) 2,00,000
- Marketing and Advertising 2,50,000
- Research & Development (R&D) 3,00,000
Particulars Amount (INR)
Total Operating Expenses 11,50,000
Operating Profit (EBIT) 5,50,000
Interest Expense 75,000
Net Profit Before Tax (PBT) 4,75,000
Tax Expense (20%) 95,000
Net Profit (PAT) 3,80,000
Balance Sheet
(Assets, Liabilities, and Equity)
As of March 31, 2022 (End of FY 2021-22)
Assets Amount (INR)
Non-Current Assets
- Property, Plant, and Equipment (PPE) 5,00,000
- Intangible Assets (e.g., patents) 1,00,000
Total Non-Current Assets 6,00,000
Current Assets
- Cash and Bank 2,00,000
- Inventory 2,50,000
- Accounts Receivable 1,00,000
Total Current Assets 5,50,000
Total Assets 11,50,000
Liabilities & Equity Amount (INR)
Equity
- Share Capital 5,00,000
- Retained Earnings 1,20,000
Total Equity 6,20,000
Liabilities
- Long-Term Debt 4,00,000
Liabilities & Equity Amount (INR)
- Short-Term Borrowings 1,30,000
Total Liabilities 5,30,000
Total Liabilities & Equity 11,50,000
As of March 31, 2023 (End of FY 2022-23)
Assets Amount (INR)
Non-Current Assets
- Property, Plant, and Equipment (PPE) 10,00,000
- Intangible Assets (e.g., patents) 2,00,000
Total Non-Current Assets 12,00,000
Current Assets
- Cash and Bank 4,00,000
- Inventory 3,50,000
- Accounts Receivable 2,00,000
Total Current Assets 9,50,000
Total Assets 21,50,000
Liabilities & Equity Amount (INR)
Equity
- Share Capital 7,00,000
- Retained Earnings 3,80,000
Total Equity 10,80,000
Liabilities
- Long-Term Debt 7,00,000
- Short-Term Borrowings 3,70,000
Total Liabilities 10,70,000
Total Liabilities & Equity 21,50,000
Cash Flow Statement
For FY 2021-22 (1st Year of Operations)
Cash Flow Amount (INR)
Operating Activities
- Net Profit 1,20,000
- Depreciation 50,000
- Changes in Working Capital (80,000)
Net Cash Flow from Operations 90,000
Investing Activities
- Purchase of PPE (4,50,000)
Net Cash Flow from Investing (4,50,000)
Financing Activities
- Issuance of Shares 5,00,000
- Loan Repayment (1,00,000)
Net Cash Flow from Financing 4,00,000
Net Change in Cash 90,000
Opening Cash Balance 1,10,000
Closing Cash Balance 2,00,000

For FY 2022-23 (2nd Year of Operations)

Cash Flow Amount (INR)
Operating Activities
- Net Profit 3,80,000
- Depreciation 1,00,000
- Changes in Working Capital (1,20,000)
Net Cash Flow from Operations 3,60,000
Investing Activities
- Purchase of PPE (6,00,000)
Net Cash Flow from Investing (6,00,000)
Financing Activities
Cash Flow Amount (INR)
- Issuance of Shares 3,00,000
- Loan Repayment (50,000)
Net Cash Flow from Financing 2,50,000
Net Change in Cash 1,10,000
Opening Cash Balance 2,00,000
Closing Cash Balance 4,00,000

1.3 FINANCIAL STATEMENT ANALYSIS

To effectively analyze the financial performance and health of Skyy Rider,

we'll use several key ratios. These ratios help in understanding various
aspects of a company such as profitability, liquidity, solvency, and efficiency.

1. Profitability Ratios
Profitability ratios help assess the company’s ability to generate profits
relative to its revenue, assets, and equity.
Gross Profit Margin
Formula:
Gross Profit Margin=Gross Profit / Revenue×100
For FY 2021-22:
8,00,000/20,00,000×100=40%
For FY 2022-23:
17,00,000/45,00,000×100=37.8%
Interpretation: The Gross Profit Margin slightly decreased from 40% in
FY 2021-22 to 37.8% in FY 2022-23. This could indicate an increase in the
cost of production or a change in pricing strategy, such as offering discounts
or reducing prices to increase sales volume.
Operating Profit Margin
Formula:
Operating Profit Margin=Operating Profit (EBIT)/Revenue×100
For FY 2021-22:
2,00,000/20,00,000×100=10%
For FY 2022-23:
5,50,000/45,00,000×100=12.2%
 Interpretation: The Operating Profit Margin improved significantly
from 10% to 12.2%, suggesting better control over operating expenses
and stronger overall operational efficiency in the second year.
Net Profit Margin
Formula:
Net Profit Margin=Net Profit (PAT)/Revenue×100
For FY 2021-22:
1,20,000/20,00,000×100=6%
For FY 2022-23:
3,80,000/45,00,000×100=8.4%
 Interpretation: The Net Profit Margin increased from 6% to 8.4%,
indicating that the company was able to convert a higher proportion of
its revenue into actual profit in the second year.
2. Liquidity Ratios
Liquidity ratios measure the company's ability to meet its short-term
obligations with its most liquid assets.
Current Ratio
Formula:
Current Ratio=Current Assets / Current Liabilities
For FY 2021-22:
5,50,000/1,30,000=4.23
For FY 2022-23:
9,50,000/3,70,000=2.57
Interpretation: The Current Ratio decreased from 4.23 to 2.57, which still
indicates strong liquidity. A ratio above 2 typically suggests that the company
has enough assets to cover its short-term liabilities. The decrease is due to an
increase in short-term liabilities, possibly to fund growth, but it is still
considered healthy.
Quick Ratio (Acid-Test Ratio)
Formula:
Quick Ratio=Current Assets−Inventory / Current Liabilities
For FY 2021-22:
5,50,000−2,50,000/1,30,000=2.31
For FY 2022-23:
9,50,000−3,50,000/3,70,000=1.62
 Interpretation: The Quick Ratio dropped from 2.31 to 1.62, but both
are still considered above the minimum acceptable threshold of 1,
indicating that the company can cover its short-term liabilities even
without relying on the sale of inventory.

3. Solvency Ratios
Solvency ratios assess a company’s ability to meet its long-term debts and
financial obligations.
Debt-to-Equity Ratio
Formula:
Debt-to-Equity Ratio=Total Debt / Total Equity
For FY 2021-22:
4,00,000+1,30,000/6,20,000=0.87
For FY 2022-23:
7,00,000+3,70,000/10,80,000=0.98
Interpretation: The Debt-to-Equity Ratio increased slightly from 0.87 to
0.98, indicating that the company is relying a bit more on debt financing in
the second year. A ratio under 1 generally suggests a balanced approach to
leveraging debt.
Interest Coverage Ratio
Formula:
Interest Coverage Ratio=Operating Profit (EBIT)/Interest Expense
For FY 2021-22:
2,00,000/50,000=4.0
For FY 2022-23:
5,50,000/75,000=7.33
 Interpretation: The Interest Coverage Ratio improved from 4.0 to
7.33, meaning the company is more comfortably able to meet its interest
payments from its operating profit in the second year. A ratio above 3 is
typically considered good.

4. Efficiency Ratios
Efficiency ratios measure how effectively a company is utilizing its assets
and resources.
Asset Turnover Ratio
Formula:
Asset Turnover Ratio=Revenue / Total Assets
For FY 2021-22:
20,00,000/11,50,000=1.74
For FY 2022-23:
45,00,000/21,50,000=2.09
 Interpretation: The Asset Turnover Ratio increased from 1.74 to
2.09, which suggests that Skyy Rider was able to generate more revenue
from its assets in FY 2022-23, indicating improved operational
efficiency.
Inventory Turnover Ratio
Formula:
Inventory Turnover Ratio=COGS / Average Inventory
For FY 2021-22:
12,00,000/2,50,000=4.80
For FY 2022-23:
28,00,000/3,50,000=8.00
Interpretation: The Inventory Turnover Ratio increased from 4.80 to 8.00,
which shows that the company has become more efficient in managing its
inventory. It’s able to sell and replenish stock more quickly in the second
year.

5. Cash Flow Analysis

Operating Cash Flow
For FY 2021-22:
 Net cash from operations: INR 90,000
For FY 2022-23:
 Net cash from operations: INR 3,60,000
  Interpretation: The company’s operating cash flow improved
significantly, from INR 90,000 to INR 3,60,000, indicating that Skyy
Rider’s operations are generating more cash in the second year, which is
a positive sign of financial health.

CHAPTER-2
COMPANY PROFILE
Skyy Rider Electric Pvt. Ltd. is an innovative electric vehicle (EV) startup based in
Bhubaneswar, Odisha, India. The company is focused on designing, manufacturing, and
promoting sustainable electric mobility solutions. As part of a forward-thinking
initiative, Skyy Rider aims to revolutionize the transportation sector in India by
providing eco-friendly, cost-effective, and reliable electric scooters, EV batteries, and
integrated charging infrastructure.
Founded by a group of entrepreneurs and students from Centurion University of
Technology and Management (CUTM), Bhubaneswar, the company was established
in 2021 with the goal of contributing to the growing demand for electric vehicles in India
and addressing key issues such as air pollution, rising fuel costs, and dependence on
fossil fuels.

Mission & Vision

Mission:
To create a sustainable and efficient future for urban transportation by providing
accessible and affordable electric vehicles that promote cleaner, greener mobility options
for India. Skyy Rider Electric is committed to developing high-quality, innovative
electric scooters and building a robust EV infrastructure to accelerate the adoption of
electric mobility.
Vision:
To be one of India's leading electric vehicle manufacturers, known for high-performance
EV products, cutting-edge technology, and a commitment to environmental
sustainability. Skyy Rider Electric aims to lead the shift towards electric mobility and
make a positive impact on the environment while empowering consumers with reliable
and cost-effective transportation solutions.

Products & Services

1. Electric Scooters:
Skyy Rider offers a range of electric scooters designed for urban commuting, with an
emphasis on performance, affordability, and sustainability. The scooters are equipped
with modern lithium-ion batteries, offering longer ranges and faster charging times
compared to traditional battery-powered vehicles.
 Models: The company has different models catering to different segments,
including city commuters, college students, and working professionals.
 Features:
o Long-lasting lithium-ion batteries
o Smooth and comfortable ride
o Energy-efficient
o High-speed capabilities suitable for urban roads
o Advanced safety features like regenerative braking and anti-lock braking
systems (ABS)
2. EV Batteries:
Skyy Rider Electric manufactures and supplies high-quality lithium-ion EV batteries.
These batteries are used in their scooters as well as sold separately for replacement or
use in other EV applications.
 Battery Types:
o Standard and fast-charging options
o Long-range batteries for extended travel
o Batteries with a longer lifespan and greater efficiency
3. Charging Infrastructure:
The company is also focusing on the development of an EV charging network to
support the growing number of electric vehicles on the roads. Skyy Rider Electric plans
to establish a network of charging stations at strategic locations in cities and towns to
make EV ownership more convenient.
 Charging Stations: High-speed charging stations for quick top-ups
 Mobile Charging Units: Providing flexibility for customers on the go
4. Research & Development (R&D):
Skyy Rider Electric has a dedicated R&D wing at Centurion University of Technology
and Management (CUTM), Bhubaneswar, where the team focuses on innovation in
electric vehicle technology, including battery management systems, vehicle performance
improvements, and sustainable production methods.
 Focus Areas:
 o Battery Technology
o AI-powered vehicle management systems
o Vehicle Design & Engineering
o Energy efficiency

Market Position & Competitive Advantage

Skyy Rider Electric operates in the rapidly growing electric vehicle (EV) market in
India, which is driven by government policies favoring green technologies, rising fuel
prices, and an increased awareness of environmental issues.
 Market Opportunity: With increasing demand for environmentally friendly
transportation options and government incentives for EV adoption, Skyy Rider
aims to tap into both the growing consumer market and government-led green
initiatives.
 Competitive Advantage:
o Innovation: By leveraging the knowledge and research capabilities from
CUTM, the company is able to integrate cutting-edge technology into its
products.
o Affordability: Skyy Rider offers electric scooters at competitive prices,
making them an attractive option for cost-conscious consumers.
o Local Production: With manufacturing operations in Bhubaneswar, the
company aims to minimize costs related to import duties and supply chain
inefficiencies.
o Sustainability: Skyy Rider Electric is committed to using eco-friendly
manufacturing processes and promoting the use of clean energy sources,
aligning with India’s sustainability goals.

Target Audience
Skyy Rider Electric Pvt. Ltd. targets a wide range of consumers, from individual
commuters to businesses and government organizations, seeking to reduce their
carbon footprint and make the transition to greener mobility solutions.
 Urban Commuters: People who rely on daily commuting in cities.
 Young Professionals & Students: Those looking for cost-effective, sustainable
transportation solutions.
 Eco-conscious Consumers: Individuals who prefer environmentally friendly
alternatives to traditional gasoline-powered vehicles.
 Government and Corporate Fleets: Businesses looking to transition to electric
vehicles for sustainability goals.

Key Achievements & Milestones

 2021: Company Founded by students and entrepreneurs from Centurion
University of Technology and Management (CUTM), Bhubaneswar.
 2021: Successfully launched the first model of electric scooter, Skyy Rider X1.
 2022: Expanded the product range with the introduction of Skyy Rider X2 and a
fast-charging station.
  2023: Opened the first EV charging station in Bhubaneswar and surrounding
areas, with plans for a larger network.
 2023: Increased sales by 50% over the previous year, reflecting growing demand
and market acceptance of electric scooters.

Social Responsibility & Sustainability

Skyy Rider Electric is committed to contributing to environmental sustainability in India
by promoting electric mobility and reducing the country's reliance on fossil fuels. The
company also plans to adopt sustainable manufacturing processes and work towards
achieving carbon-neutral production in the near future.
Additionally, Skyy Rider has established programs to educate the public on the
environmental benefits of electric vehicles, provide recycling programs for old
batteries, and support local communities through job creation in the EV and renewable
energy sectors.

Future Plans & Expansion

 National Expansion: Skyy Rider aims to expand its sales and distribution
network to other parts of India, especially major cities like Bengaluru, Delhi, and
Mumbai, where demand for EVs is growing.
 International Market: Exploring opportunities for exporting its electric scooters
to international markets with a focus on Southeast Asia and Africa.
CHAPTER -3
DATA ANALYSIS

●3.1 COST SHEET FY21-22 & 22-23

For FY 2021-22 (1st Year of Operations)
Particulars Amount (INR)
A. Direct Costs
1. Raw Materials (for manufacturing 1000 units) 10,00,000
2. Direct Labor Cost 3,00,000
3. Manufacturing Overhead 2,00,000
4. Other Direct Costs 1,00,000
Total Direct Costs 16,00,000
B. Indirect Costs
1. Admin Salaries 1,50,000
2. Marketing & Advertising 1,00,000
3. Rent (Factory & Office) 1,50,000
Particulars Amount (INR)
4. R&D Expenses 1,50,000
5. Depreciation on Equipment/Factory 50,000
6. Interest on Loans 50,000
Total Indirect Costs 6,50,000
Total Cost of Production (Direct + Indirect) 22,50,000
Per Unit Cost (Cost of Production per Unit) 22,50,000 / 1000
22,500

For FY 2022-23 (2nd Year of Operations)

Particulars Amount (INR)
A. Direct Costs
1. Raw Materials (for manufacturing 2000
20,00,000
units)
2. Direct Labor Cost 6,00,000
3. Manufacturing Overhead 4,00,000
4. Other Direct Costs 2,00,000
Total Direct Costs 32,00,000
B. Indirect Costs
1. Admin Salaries 2,00,000
2. Marketing & Advertising 2,50,000
3. Rent (Factory & Office) 2,00,000
4. R&D Expenses 3,00,000
5. Depreciation on Equipment/Factory 1,00,000
6. Interest on Loans 75,000
Total Indirect Costs 11,25,000
Total Cost of Production (Direct + Indirect) 43,25,000
Per Unit Cost (Cost of Production per Unit) 43,25,000 / 2000
21,625
 3.2 CVP ANALYSIS FY 21-22 & 22-23

Assumptions for CVP Analysis:

 Sales Price per Unit: The price at which Skyy Rider sells its

electric scooters.
o FY 2021-22: INR 30,000 per unit

o FY 2022-23: INR 32,000 per unit

 Variable Costs per Unit: The costs that change directly with

the number of units produced and sold.

o Variable costs include raw materials, direct labor, and

part of the manufacturing overhead that vary with

production volume.
 Fixed Costs: These costs do not change with the level of

production or sales volume (e.g., rent, administrative salaries,

R&D expenses, and fixed portion of manufacturing overhead).
Step 1: Breakdown of Costs for CVP Analysis
From the Cost Sheet:
FY 2021-22 (1st Year)
 Sales Price per Unit: INR 30,000

 Total Units Sold: 1000

 Total Revenue:

30,000×1000=INR30,00,000
  Variable Costs per Unit (Direct Costs):
 Raw Materials: INR 10,00,000 for 1000 units → INR 10,000
per unit
 Direct Labor: INR 3,00,000 for 1000 units → INR 3,000 per
unit
 Manufacturing Overhead (Variable portion): INR 2,00,000
for 1000 units → INR 2,000 per unit
 Other Direct Costs: INR 1,00,000 for 1000 units → INR 1,000
per unit

Total Variable Costs per Unit =

10,000+3,000+2,000+1,000=INR16,000

Fixed Costs (Indirect Costs):

 Admin Salaries: INR 1,50,000

 Marketing & Advertising: INR 1,00,000

 Rent: INR 1,50,000

 R&D Expenses: INR 1,50,000

 Depreciation: INR 50,000

 Interest on Loans: INR 50,000

Total Fixed Costs =

1,50,000+1,00,000+1,50,000+1,50,000+50,000+50,000= INR
6,50,000
FY 2022-23 (2nd Year)
 Sales Price per Unit: INR 32,000

 Total Units Sold: 2000

 Total Revenue:

32,000×2000=INR64,00,000
Variable Costs per Unit:
 Raw Materials: INR 20,00,000 for 2000 units → INR 10,000

per unit
 Direct Labor: INR 6,00,000 for 2000 units → INR 3,000 per

unit
  Manufacturing Overhead (Variable portion): INR 4,00,000
for 2000 units → INR 2,000 per unit
 Other Direct Costs: INR 2,00,000 for 2000 units → INR 1,000

per unit
Total Variable Costs per Unit =
10,000+3,000+2,000+1,000=INR16,000
Fixed Costs:
 Admin Salaries: INR 2,00,000

 Marketing & Advertising: INR 2,50,000

 Rent: INR 2,00,000

 R&D Expenses: INR 3,00,000

 Depreciation: INR 1,00,000

 Interest on Loans: INR 75,000

Total Fixed Costs =

2,00,000+2,50,000+2,00,000+3,00,000+1,00,000+75,000=INR11,25
,000
Step 2: CVP Analysis - Contribution Margin
The contribution margin is the amount of money available to cover
fixed costs and generate profit after covering variable costs.
Contribution Margin per Unit:
 FY 2021-22:

Sales Price per Unit = INR 30,000

Variable Costs per Unit = INR 16,000
Contribution Margin per Unit =
30,000−16,000=INR14,00030,000 - 16,000 = INR
14,00030,000−16,000=INR14,000
 FY 2022-23:

Sales Price per Unit = INR 32,000

Variable Costs per Unit = INR 16,000
 Contribution Margin per Unit =
32,000−16,000=INR16,000
Step 3: Break-Even Analysis
The Break-Even Point (BEP) is the level of sales at which total
revenues equal total costs (i.e., no profit, no loss). The formula is:
Break-Even Point (in units)=Total Fixed Costs/Contribution Margin
per Unit
FY 2021-22:
 Total Fixed Costs = INR 6,50,000

 Contribution Margin per Unit = INR 14,000

Break-Even Point=6,50,00014,000≈46.43 units

So, the company needs to sell at least 47 units to break even in FY
2021-22.
FY 2022-23:
 Total Fixed Costs = INR 11,25,000

 Contribution Margin per Unit = INR 16,000

Break-Even Point=11,25,00016,000≈70.31
So, the company needs to sell at least 71 units to break even in FY
2022-23.
Step 4: Profit at Different Sales Levels
Now, let's analyze the profit at different sales levels:
FY 2021-22:
 Sales Volume: 1000 units

 Revenue: INR 30,00,000

 Variable Costs: INR 16,000 × 1000 = INR 16,00,000

 Fixed Costs: INR 6,50,000

 Profit:

Profit=Revenue−Variable Costs−Fixed Costs

Profit=30,00,000−16,00,000−6,50,000=INR7,50,000
Sales Volume: 2000 units
 Revenue: INR 64,00,000

 Variable Costs: INR 16,000 × 2000 = INR 32,00,000

 Fixed Costs: INR 11,25,000

 Profit:

Profit=Revenue−Variable Costs−Fixed Costs

Profit=64,00,000−32,00,000−11,25,000=INR 20,75,000
Step 5: Margin of Safety (MOS)
The Margin of Safety (MOS) indicates how much sales can decline
before the company reaches its break-even point.
Margin of Safety=Actual Sales−Break/Even SalesActual Sales×100
FY 2021-22:
 Actual Sales = 1000 units

 Break-Even Sales = 47 units

MOS=1000−471000×100=95.3%
FY 2022-23:
 Actual Sales = 2000 units

 Break-Even Sales = 71 units

MOS=2000−712000×100=96.45%
 CHAPTER- 4 FINDINGS
4.1 COST SHEET ANALYSIS:
1. Production Efficiency and Cost per Unit
 FY 2021-22:
o The cost per unit in FY 2021-22 is INR 22,500 for 1000 units.
o This cost is primarily driven by the raw material costs, direct labor,
and manufacturing overheads.
 FY 2022-23:
o In FY 2022-23, the cost per unit decreases slightly to INR 21,625 for
2000 units.
o The reduction in unit cost is largely due to the economies of scale,
where the fixed costs (such as admin salaries, rent, and R&D
expenses) are spread across a larger number of units.
o The overall decrease in unit cost indicates that the company has
achieved some operational efficiencies as it scaled up production.
2. Raw Materials and Direct Costs
 Raw Materials:
o In both years, raw material costs form a significant portion of the total
cost. This is expected in manufacturing industries, especially in the
production of electric vehicles (EVs), where parts like motors,
batteries, and frames are the primary raw materials.
o Raw material costs increased in FY 2022-23, from INR 10,00,000 in
FY 2021-22 to INR 20,00,000 in FY 2022-23, reflecting the increase
in production volume (from 1000 units to 2000 units).
 Direct Labor:
o Direct labor costs also increased in FY 2022-23, reflecting the higher
number of workers needed to meet the increased production demand.
o Labor costs per unit remained constant at INR 3,000 per unit, which
shows that the company was able to maintain consistent labor
 efficiency even as production volume doubled.
 Manufacturing Overhead:
o The manufacturing overhead in FY 2022-23 increased with production
but remained consistent on a per-unit basis.
o This suggests that some overhead costs (like factory utilities,
maintenance) may be partially fixed, not increasing proportionally
with production.
3. Fixed Costs and Their Impact
 Fixed Costs:
o Fixed costs (admin salaries, rent, marketing, R&D, and depreciation)
increased in FY 2022-23, from INR 6,50,000 in FY 2021-22 to INR
11,25,000 in FY 2022-23.
o This increase is due to higher administrative salaries, increased
marketing and advertising costs, and more investment in R&D.
o However, since fixed costs do not change with production volume, the
company will benefit from spreading these costs over a larger number
of units in the second year.
 Rent and Depreciation:
o Both rent and depreciation have increased, which might indicate
expansion of the factory or office space and acquisition of more
equipment for increased production.
4. Profitability Trends
 FY 2021-22:
The company made a profit of INR 7,50,000 with the sale of 1000 units.
The profit margin is healthy considering it was the first year of operation and
the company was still scaling its operations.
 FY 2022-23:
The company’s profitability increased significantly, with a profit of INR
20,75,000 in FY 2022-23, despite the increase in fixed costs.
This increase in profitability is a result of higher sales volume, improved
economies of scale, and the ability to reduce the per-unit cost of production.
5. Contribution Margin
 Contribution Margin per Unit:
o FY 2021-22: The contribution margin per unit is INR 14,000, which
means for every scooter sold, the company has INR 14,000 available
to cover fixed costs and generate profit.
o FY 2022-23: The contribution margin increases to INR 16,000 per unit
due to the increase in sales price per unit (from INR 30,000 to INR
32,000), while variable costs remained the same.
o The increase in contribution margin per unit shows the company's
pricing power and ability to absorb increased costs without affecting
 profitability too much.
6. Economies of Scale
 Impact of Scaling Production:
o In FY 2021-22, the company had to sell 1000 units to cover its fixed
costs and start generating profits.
o In FY 2022-23, with the increase in production to 2000 units, the
company achieved better cost absorption, leading to a lower per-unit
cost (from INR 22,500 to INR 21,625), even though fixed costs
increased.
o The increase in production volume helped spread fixed costs (such as
rent, admin salaries, and marketing) across more units, improving
profitability.
7. Profitability per Unit
 Unit Profit:
o The company made a profit of INR 7,500 per unit in FY 2021-22
(Selling price of INR 30,000 - Cost of INR 22,500).
o In FY 2022-23, the profit per unit increased slightly to INR 10,375
(Selling price of INR 32,000 - Cost of INR 21,625).
o The increase in unit profit is a positive sign, as it reflects both the
company's ability to increase prices and reduce costs over time.
8. Fixed Cost Recovery and Break-Even Analysis
 Break-Even Point:
o In FY 2021-22, Skyy Rider needed to sell at least 47 units to cover its
fixed costs and reach the break-even point.
o In FY 2022-23, the break-even point increased to 71 units, primarily
because fixed costs grew, but the increase in sales volume (2000 units)
meant the company still had a comfortable margin to cover its fixed
costs.
 Margin of Safety:
o The margin of safety in both years is very high (95.3% in FY 2021-22
and 96.45% in FY 2022-23), indicating that the company is in a strong
position and has substantial room to weather potential sales declines
before it starts incurring losses.
9. Marketing and R&D Investment
 Marketing & Advertising:
o Marketing costs increased in FY 2022-23, from INR 1,00,000 to INR
2,50,000, indicating a stronger focus on promoting the brand and
expanding market presence.
 R&D Investment:
o The company increased its R&D expenditure in FY 2022-23,
suggesting a focus on product development and improvement. This
 could include enhancing battery life, improving vehicle design, or
developing new models to keep pace with the competitive EV market.

4.2 CVP ANALYSIS:

1. Profitability at Different Sales Levels
 FY 2021-22:
o With a sales volume of 1000 units, Skyy Rider Electric Pvt. Ltd.
achieved a profit of INR 7,50,000.
o The contribution margin per unit was INR 14,000, indicating
that for every unit sold, the company generated INR 14,000 to
cover its fixed costs and contribute to profits.
o The break-even point for the company was 47 units, meaning
that the company needed to sell 47 units to cover all fixed costs
and start making a profit.
o The margin of safety was 95.3%, indicating that the company
had a significant cushion against sales declines, as actual sales
(1000 units) were far above the break-even point.
 FY 2022-23:
o With a sales volume of 2000 units, the company earned a profit
of INR 20,75,000, a substantial increase from FY 2021-22,
reflecting the benefits of higher sales volume.
o The contribution margin per unit increased to INR 16,000,
primarily due to a higher selling price (INR 32,000) in FY 2022-
23, compared to INR 30,000 in FY 2021-22.
o The break-even point increased to 71 units in FY 2022-23 due to
higher fixed costs, but the company still achieved strong
profitability, thanks to the increase in sales volume.
o The margin of safety remained high at 96.45%, indicating that
the company was still well-positioned to handle fluctuations in
sales.
2. Contribution Margin and Profitability
 Contribution Margin Growth:
o The contribution margin per unit increased from INR 14,000 in
FY 2021-22 to INR 16,000 in FY 2022-23, mainly due to the
increase in sales price per unit from INR 30,000 to INR 32,000.
o This increase in contribution margin is a positive sign for the
company, as it allows more revenue to go toward covering fixed
 costs and generating profit.
 Impact of Increased Sales Price:
o The increase in the sales price per unit in FY 2022-23
contributed to the higher contribution margin. This also led to a
higher profit despite the increase in fixed costs.
o Price elasticity could be a key factor to monitor, as further price
increases may impact demand if not managed carefully.
3. Break-Even Analysis
 The break-even point in both years indicates how many units need to
be sold to cover fixed costs.
o In FY 2021-22, the break-even point was 47 units, which was
quite low and suggests the company had a relatively low fixed
cost base and high profitability per unit.
o In FY 2022-23, the break-even point increased to 71 units,
reflecting the increase in fixed costs (such as marketing, rent,
R&D, and salaries). Although the break-even point increased, it
still remained relatively low compared to actual sales (2000 units),
indicating the company’s ability to generate profit even with
higher fixed costs.
4. Margin of Safety (MOS)
 FY 2021-22:
o The Margin of Safety was 95.3%, indicating that actual sales
were significantly higher than the break-even sales volume. The
company had a large buffer to absorb fluctuations in demand.
o This high margin of safety suggests the company was operating
in a relatively low-risk environment, with plenty of room to
handle potential declines in sales before reaching the break-even
point.
 FY 2022-23:
o The Margin of Safety remained very high at 96.45%, even
though fixed costs had increased. This shows that the company
continued to have substantial leeway in terms of sales volume
before it would hit a loss.
o The fact that the margin of safety stayed so high is a good
indicator of the company’s financial stability and risk
management capacity.
5. Impact of Increased Production Volume (Economies of Scale)
 The increase in production volume from 1000 units in FY 2021-22 to
 2000 units in FY 2022-23 allowed the company to achieve better
economies of scale, especially in fixed cost absorption.
o As production increased, the company’s fixed costs were spread
over more units, which helped lower the cost per unit and
increase profitability.
o The decrease in cost per unit (from INR 22,500 to INR 21,625)
reflects the benefits of scaling operations.
 The increase in production not only led to higher revenue but also to an
increase in profit margins, showing that the company successfully
leveraged its growing sales to improve its cost structure and
profitability.
6. Profitability Potential
 Profitability per Unit:
o The profit per unit in FY 2021-22 was INR 7,500 per unit
(Selling price of INR 30,000 - Cost of INR 22,500).
o In FY 2022-23, the profit per unit increased to INR 10,375
(Selling price of INR 32,000 - Cost of INR 21,625).
o The increase in unit profit is a positive outcome of both increased
sales price and better cost management.
 Future Profitability:
o With a strong contribution margin and a high margin of safety,
the company is positioned to generate healthy profits even if sales
growth slows or costs increase moderately. However, it will need
to monitor its pricing strategy closely to maintain a balance
between profitability and market demand.

7. Strategic Decision-Making Insights

 Pricing Strategy: The increase in the sales price in FY 2022-23 helped
boost profitability without negatively impacting sales volume. The
company should consider periodic price adjustments based on cost
trends, market conditions, and consumer preferences.
 Cost Control: The company should continue focusing on controlling
variable costs, particularly raw material costs and direct labor, as
these are the primary drivers of production costs. Leveraging
automation or negotiating better terms with suppliers could be
strategies to reduce costs further.
  Fixed Cost Management: While the company has successfully
managed to spread fixed costs over more units, it should remain
cautious of excessive increases in fixed costs, particularly in areas like
R&D and marketing, which could erode profitability if not justified by
a corresponding increase in revenue.
 Expansion and Scaling: With the successful scaling of production in
FY 2022-23, the company may look to expand further into new markets
or product lines, leveraging its existing production capacity and
improving return on investment (ROI).

CHAPTER-5
CONCLUSION

Skyy Rider Electric Pvt. Ltd., operating under CUTM BBSR (Centurion
University of Technology and Management, Bhubaneswar), has demonstrated
significant financial growth and operational efficiency over the analyzed
periods, positioning itself as a promising player in the electric vehicle (EV)
market.

Profitability and Growth

The company has shown impressive profitability improvement, with net

profits increasing from INR 7,50,000 in FY 2021-22 to INR 20,75,000 in
FY 2022-23. This increase can be attributed to higher sales volume
(doubling from 1000 to 2000 units), improved contribution margins, and
the successful implementation of a pricing strategy that raised the selling
price per unit from INR 30,000 to INR 32,000. The contribution margin per
unit also improved, reflecting better cost absorption and enhanced
operational efficiencies as production scaled.

Effective Cost Management

Despite rising fixed costs—including administrative, marketing, and R&D

expenses—the company successfully absorbed these costs through increased
production and sales volume. The cost per unit decreased slightly, from INR
22,500 in FY 2021-22 to INR 21,625 in FY 2022-23, highlighting the
benefits of economies of scale. The ability to maintain profitability while
managing these costs underscores Skyy Rider’s strong cost management
practices.

Financial Stability

Skyy Rider Electric Pvt. Ltd. maintains a strong financial foundation, as

evidenced by its high margin of safety (MOS), which remained over 95% in
both fiscal years. This indicates a robust buffer against sales fluctuations,
providing the company with ample room to manage risks. The break-even
point—though slightly higher in FY 2022-23—remains low relative to actual
sales, ensuring that the company remains profitable even in less favorable
market conditions.

Strategic Positioning and Future Outlook

The company’s focus on expanding its market presence and investing in

R&D and marketing is a clear indication of its ambition to strengthen its
competitive edge in the fast-growing electric vehicle industry. The increase in
sales volume, combined with a strategic pricing approach, suggests that Skyy
Rider is positioning itself to capture a larger share of the EV market.
 REFERENCES

1.https://cutm.ac.in/
2.http://www.mca.gov.in/
3.https://www.linkedin.com/
4.https://economictimes.indiatimes.com/
5.https://scholar.google.com/
6.www.google.com
7.Chatgpt.com
8.https://www.newindianexpress.com/
9.https://www.business-standard.com/
ASSESSMENT
Internal:

S FUL MARKS REMAR

RUBRI
L CS L OBTAIN KS
N MA ED
O RK
Understanding the relevance,
1 1
scope and dimension of the
0
project
2 Methodology 1
0
3 Quality of Analysis and Results 1
0
4 Interpretations and Conclusions 1
0
5 Report 1
0
Total 5
0

Date: Signature of the Faculty

COURSE OUTCOME (COs) ATTAINMENT

➢ Expected Course Outcomes (COs):

(Refer to COs Statement in the Syllabus)

➢ Course Outcome Attained:

How would we rate our learning of the subject based on the specified COs?

1 2 3 4 5 6 7 8 9 10
LOW HIGH
➢ Learning Gap (if any):

➢ Books / Manuals Referred:

Date: Signature of the Student

➢ Suggestions / Recommendations:
(By the Course Faculty)

Date: Signature of the Facu

 CONTENTS

Sl. Topi Page No.

No. cs
* Abstract 1

1 Introduction 2 - 12

2 Company Profile 13 -15

3 Data analysis in tabular form and 16 - 21

interpretation after every table
4 Findings 22 - 27

5 Conclusion 28 - 29

6 References 30