The Balance Sheet of MP Ltd. as on 31st March, 2018 is given as under: Liabilities Amount (₹) Assets Amount (₹) Equity Share Capital (₹ 10 each) 1,60,000 Fixed Assets 3,00,000 Reserves 80,000 Current Assets 1,00,000 10%

Financial Break-even level Financial Break even level is the level of earnings before interest and taxes that will result in zero net income or zero earnings per share. Let X be the level of EBIT, then EPS = [(X - Interest) (1 - tax rate)] / No. of equity shares 0 = [(X - 12,000) (1 - 0.50)] / 16,000 X = 12,000 Financial break even will be at EBIT of ₹ 12,000