The paper discusses the effect of functional grading on the position of neutral axis of a cantilever beam. The principle of virtual work is used to derive the governing equations and B-spline collocation method is used to solve the governing equations. The material distribution is done using power law function. The position of neutral axis plays an important role in designing a composite beam. The present analysis gives a brief insight into the effect of power index on the depth of neutral axis measured from the centroidal axis. The results show the influence of modulus ratio on the position of neutral axis. Effect of shift in neutral axis further influence the stress values and deflection.