Calculate Gross Profit.

Gross Profit is calculated by subtracting the Cost of Sales from Revenue.

$$\text{Gross Profit} = \text{Revenue} - \text{Cost of Sales}$$ $$\text{Gross Profit} = 1,280,000 - 720,000$$ $$\text{Gross Profit} = 560,000$$

Operating expenses include Depreciation, Electricity, Rent, Salaries, and Other operational expenses.

$$\text{Total Operating Expenses} = \text{Depreciation} + \text{Electricity} + \text{Rent} + \text{Salaries} + \text{Other operational expenses}$$ $$\text{Total Operating Expenses} = 155,000 + 30,000 + 20,000 + 60,000 + 31,250$$ $$\text{Total Operating Expenses} = 296,250$$

Operating Profit is Gross Profit minus Total Operating Expenses.

$$\text{Operating Profit} = \text{Gross Profit} - \text{Total Operating Expenses}$$ $$\text{Operating Profit} = 560,000 - 296,250$$ $$\text{Operating Profit} = 263,750$$

Net Profit is Operating Profit minus Finance costs.

$$\text{Net Profit} = \text{Operating Profit} - \text{Finance costs}$$ $$\text{Net Profit} = 263,750 - 20,000$$ $$\text{Net Profit} = 243,750$$

The Net Profit for the year ended 31 March 2026 is:

$$\text{243,750}$$