MGT153 BUSINESS PLAN

Prepared by :

Mohd Hafizuddin bin Mohd Noor 2012685904

Mohammad Azrulnizam Bin Pahing 2012266572
Saleha Anum binti Manap 2012261388
Noor Erra Amira binti Adam 2012845888
Nurul Shahierah binti Ismail 2012839892
Siti Nadzirah Binti Zakariah 2012858678

Prepared for :

Miss Nur Hanee binti Mohamad

Madam Thahira Bibi binti TKM Thangal

Group :
J3AC1102B

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CONTENT

No Content Page
1.0 Introduction 4
1.1 Logo of the Company 5
2.0 Purpose 6
3.0 Background of the Company 7
4.0 Background of Partners 8
5.0 Location of the Company 13
6.0 Administration Plan 14
6.1 Administration Objectives 15
6.2 Organization Strategies 16
6.3 Organization Chart 17
7.0 Marketing Plan 18
7.1 Service Description 18
7.2 Target Market 19
7.3 Market Size 20
7.4 Main Competitors 21
7.5 Market Share 23
8.0 Operation Plan 25
8.1 Service Planning 25
8.2 Operation Layout 27
8.3 Materials Planning 28
8.4 Machines and Equipment Planning 31
8.5 Manpower Planning 32
8.6 Overhead Requirement 33
8.7 Operations Hours 34
8.8 License, Permits and Regulations Required 35
8.9 Project Implementation Schedule 36

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9.0 Financial Plan 37
9.1 Pro-Forma Income Statement 37
9.2 Pro-Forma Balance Sheet 38
9.3 Financial Ratio Analysis 39
9.4 Depreciation Schedule 40

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1.0 INTRODUCTION

 Name of the company : RASEAN ENTERPRISE

 Nature of business : Our business is based on designing and printing

 Location of the business : Our business is located at Taman Universiti, Skudai. We

choose this location because it is situated in front of Jusco Taman Universiti that is
surrounded by residential area and near the University Teknologi Malaysia.

 Factors in selecting the proposed business : We choose this business because it can make
high profit and can be expand in future. Besides that, we realized that everyone need the
services that we provided.

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1.1 Logo of the Company

Description of logo :

 The purple colour : to symbolize that we are from UiTM. Purple is the colour for UiTM

 Variety of colours : to symbolize the variety of colours of inks that we used for printing

 The star : to symbolize our hope that our company will become a „star‟ in the future

 The green colour : to symbolize that our company is „green company‟ which is
environmentally friendly

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2.0 PURPOSE
A business plan is a document which describe a propose business or project to be undertaken in a
comprehensive manner. It is also known as working paper, business proposal, project paper, or
prospectus. RASEAN ENTERPRISE prepares this business planning for several purposes:-

1. The Entrepreneurs
 To better understand the purpose of the business and act as guideline to manage the
business effectively and efficiently.

2. Financial Institutions
 Assist and help financial institution to evaluate the capability of the proposed project
and provide loan for business. Financial institution involved in this business project is
Bank Islam.

3. Suppliers
 Help convince suppliers of the viability of our business venture thus benefiting both
the supplier and our company in the long term business arrangement.

4. Company Staffs/Workers
 Help workers to understand the business‟s goals and objectives and give a guideline
to them regarding their job duties and responsibilities.

5. Customers
 Persuade and influence our customers regarding the products being offered gives
assurance and confidence to them to have business with us.

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3.0 BACKGROUND OF THE COMPANY

Name : RASEAN ENTERPRISE

Address : Lot 2013 Jalan Pendidikan, Taman Universiti, 81300

Skudai, Johor Darul Takzim.

Telephone/Facsimile number : +607-20130101

Email : printingbizz153@gmail.com

Blog : printingtoyou.blogspot.com

Shareholders : 6 members

Starting capital : RM90,000

Equity contribution :  Mohd Hafizuddin bin Mohd Noor (RM15,000)

 Mohammad Azrulnizam bin Pahing (RM15,000)
 Saleha Anum binti Manap (RM15,000)
 Nurul Shahierah binti Ismail (RM15,000)
 Noor Erra Amira binti Adam (RM15,000)
 Siti Nadzirah binti Zakariah (RM15,000)

Form of business : Partnership

Main business activity : Designing and printing

Regional presence : Taman Universiti, Skudai, Johor Bahru

Name of bank : Bank Islam

Bank account number : 0576700000008276

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4.0 BACKGROUND OF PARTNERS

Name : Saleha Anum binti Manap

Date of Birth : 13th June 1984

Place of Birth : Kampung Sri Paya, Kulaijaya, Johor

Address : 152-A Jalan Kenangan, Kampung Sri Paya, 81030 Kulaijaya,

Johor Darul Takzim

Interest : Surf Internet and outdoor activities

Qualification :  Diploma in Accountancy at UiTM Kampus Bandaraya

Johor Bahru
 Bachelors of Accountancy at University of California

Experience : Financial Manager at Mitsubishi Electric Malaysia (2010-2012)

Skills :  Able to make decision

 Good on manage workers
 Able to make financial reports

Position : Chief Executive Officer (CEO)

Details of the Post :  The highest ranking corporate officer (executive) or

administrator
 In charge of total management of the organization
 Has responsibilities as a director, decision maker, leader,
manager and executor also advises the board of
directors, motivates employees, and drives change
within the organization.

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Name : Noor Erra Amira Bt Adam

Date of birth : 10 Aug 1984

Place of birth : Hospital Pontian

Address : Kg Prt Sikom,Kaw 10, Mukim Pontian ,82010,Pontian, Johor

Interest : Surfing internet.

Qualification : Diploma in Accountancy in UiTM Kampus Bandaraya Johor Bahru

Degree in Business Study at Harvard University

Position : Chief Operating Officer (COO)

Skills : Broad industry knowledge and have a great leadership

Experience : Senior Operations Manager (2009-2012)

 Received the regional “Store of Excellence” award for

achieving the highest percent increase in sales over plan.
Details of the post :  Developing and cascading the organization‟s strategy/mission
statement to the lower-ranking staff, and implementing
appropriate reward/recognition and coaching/corrective
practices to align personnel with company goals.
 Driving performance measures for the operation, often in the
form of dashboards convenient for review of high level key
indicators.

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Name : Mohammad Azrulnizam Bin Pahing
Date of birth : 28 March 1986
Place of birth : Hospital Pakar Sultanah Fatimah.
Address : Pos 39-1, Parit Keroma Darat Jalan Dato, 84000, Muar, Johor.
Interest : Playing video game and listening to music.
Qualification : Diploma in Accountancy at UiTM Kampus Bandaraya Johor Bahru
Degree in Accountancy at UiTM Puncak Perdana
Position : Chief Administrative Officer (CAO)
Skills :  Excellent in speaking and writing Malay language and
English language.
 Good in communicating and handle job.
 Work in team, helpful and willing to share knowledge.
Experience :  Part time job in Zurenee Tax as accountant clerk for one
year. (2011-2012)
 Involve in control account, ledgers, partnership and taxation
Details of the post :  Responsible for administrative management of private,
public, all governmental corporations.
 One of the highest ranking members of organization,
managing daily of operations and usually reporting directly
to the CEO.

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Name : Siti Nadzirah Binti Zakariah
Date of birth : 29 January 1988
Place of birth : Hospital Pontian, Johor
Address : 1326, Jalan Anggerik 6/12, Taman Anggerik Tenggara, Bandar
Tenggara, 81440 Kulaijaya, Johor.
Interest : Surfing internet and blogging.
Qualification : Diploma in Accountancy at UiTM Kampus Bandaraya Johor Bahru
Degree in Business Administration at UiTM Puncak Alam
Position : Chief Marketing Officer (CMO)
Skills :  Excellent in speaking and writing Malay language and English
language.
 Good in computer skills.
 Work in team, helpful and willing to share knowledge.
Experience :  Part time job in stationery shop for 1 year. (2011-2012)
 Involve in printing, copy, and design for wedding card and
business card.
Details of the post :  With primary or shared responsibility for areas such as sales
management, product development, distribution channel
management, marketing communication (including advertising
and promotions), pricing, market research, and customer
service.
 Faced with a diverse range of specialized discipline in which
they are required to be knowledgeable.

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Name : Nurul Shahierah binti Ismail

Date of birth : 31st July 1984

Place of birth : Mentakab, Pahang

Address : No.8, Jalan Saksofon 33/15 Taman Alam Indah 40400 Shah Alam, Selangor
Darul Ehsan

Interest : Reading

Qualification : Diploma in Accountancy at UiTM Kampus Bandaraya Johor Bahru

Bachelors of Accounting (School of Business Administration, California)

Position : Chief Financial Officer (CFO)

Skills :  Excellent in spoken and written Melayu languages and English

languages.
 Create and assess financial statements and budget documents.
 Recognize and be responsive to the needs of all clients of the
organization, including funding organizations, the Board of Directors,
local community advocates, participants, and employers.

Experience : Accounting & Finance Manager (2008-2012)

Details of the :  Managing the financial risks of the corporation, financial planning and
Post record-keeping, as well as financial reporting to higher management.
 Communicating financial performance and forecasts to the analyst
community

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Name : Mohd Hafizuddin bin Mohd Noor
Date of birth : 7 January 1984
Place of birth : Hospital Daerah Pontian
Address : No. 67, Kg Parit Selangor, Batu 32, 81500, Pekan Nenas, Johor
Darul Takzim
Interest : Computer Literation and Music
Qualification : Diploma in Accountancy at UiTM Kampus Bandaraya Johor Bahru
Position : Chief Human Resource Officer (CHRO)
Skills :  Excellent in speaking and writing Malay language and English
language.
 Good in computer skills such as Microsoft windows, Office
words, Spotfire tools analysis, and MiniTab Tool analysis.
 Work in team, helpful and willing to share knowledge, religious
and high in manner.
Experience :  Part time job in Tamasek Industries as accountant clerk for one
year. (2011-2012)
 Involve in control account, ledgers, partnership and taxation.
Details of the post :  Emphasize additional aspects of HR leadership, such as
delivering results with a global team.
 Helps the company build sustainable competitive advantage
through the selection and development of top talent that possess
capabilities that help differentiate the company from its
competitors.
 Managing corporate capabilities includes dealing with rapid
changes in technology, globalization, and the increasingly
complex external context of government regulations and public
policy.

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5.0 LOCATION OF THE COMPANY

RASEAN ENTERPRISE
Lot 2013 Jalan Pendidikan,
Taman Universiti,
81300 Skudai,
Johor Bahru

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6.0 ADMINISTRATION PLAN

6.1 Administration Objectives

RASEAN ENTERPRISE is a business that provides services such as printing and photocopying
which the management has its missions and objectives that are aimed to support the achievement
of the business.

1. To generate a better income with the higher rate of profit in order to raise up the business
capital to stabilize the business position.

2. To become the first choice in designing wedding card, business card and banner among
Skudai residents.

3. Become a well-establish company in Malaysia

4. To get maximum printing tenders from our customers that is wedding planner,
businessman and students and staff of UTM

5. To attract investors from neighbouring countries in order to open branches at their

countries.

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6.2 Organization Strategies

Strategies are the most important way to measure the implementation and the workflow business
to run smoothly. RASEAN ENTERPRISE has its own strategies in measuring the achievement
of goals and successfulness. The strategies that we have planned are:

1. We will conduct mass advertising throughout the year.

2. We will make sure the quality of our products satisfied the customers and accept all their
comments and feedback to improve our company.

3. Open branches all over Malaysia.

4. Promote our blog to our target market.

5. Try to have a business relation with other potential company that can support our
establishment.

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 6.3 Organization Chart

CHIEF EXECUTIVE OFFICER

Saleha Anum binti Manap

CHIEF OPERATING OFFICER

Noor Erra Amira binti Adam

CHIEF ADMINISTRATIVE CHIEF MARKETING OFFICER

OFFICER
Siti Nadzirah binti Zakariah
Mohamad Azrulnizam bin Pahing

CHIEF FINANCIAL OFFICER CHIEF HUMAN RESOURCES

OFFICER
Nurul Shahierah binti Ismail
Mohd Hafizuddin bin Mohd Noor

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7.0 MARKETING PLAN
7.1 Service Description

RASEAN ENTERPRISE provides printing for the people. This includes printing
invitation(wedding) cards, printing banner, printing business card (name card), as well as
ordinary printing, photocopy and scanning. Service will offer by order it online or by walk-in
basis.

For the invitation cards and business cards the customers can choose from pre-existing
patterns or custom design. The pre-existing patterns are chosen from an extensive catalog. These
catalogs are available in our blog so that the customers can be viewed and ordered via online,
providing them with flexibility and convenience. For the custom design, we have designers that
will help the customers to design the products.

For the banner, the customers will provide the design and our designers will make some
improvement on their design with their consent. We also provide printing, photocopy and
scanning for the walk-in customers.

We will regularly communicate with the customers to ensure the maximum customers
satisfaction.

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7.2 Target Market

1. Wedding planner
 45% of our target customers are wedding planner. They are known as the most users
of printing facilities. They will use the services of printing to print mostly banner and
wedding cards.

2. UTM students and staff

 Other 30% of our target customers are students and staff of UTM. This population is
our second largest target because our company is near the UTM. Students and staff
need to print out their paperwork and assignments.

3. Businessman
 We target that 20% of our customers will be the businessman. This is because, our
company is located at the industrial area. Many businessmen will use our services to
print out their proposal, business document or maybe their business card.

4. Others
 We expect about 5% of our customers are residents from the local area. These include
household, public and etc.

TARGET MARKET

5%
20%
45%
Wedding planner
Businessman

30%
Students and staff of UTM
Others

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7.3 Market Size
Market size is total potential purchase that is expected from the target market. Estimation
of market size required information regarding the particular market the business intends to enter.
The potential purchase includes purchase of the competitor within the same market.

Skudai is a develop city where there are many infrastructure and services provided to its
surrounding. Skudai is also surrounded with working place, university and housing area. Besides
that, each of the area within Skudai is provided with public transportation such as busses and
taxis. Furthermore, Jusco Taman Universiti Shopping Centre which is an established shopping
complex is situated in Skudai. From the seasonal factor, Skudai will be crowded with people
during seasonal event such as New Year, Hari Raya, Chinese New Year and other event.

Our company that is RASEAN ENTERPRISE considers that 40% of the wedding planner
in Skudai will be our customer because our company provides service of making interesting
banner and wedding card. 25% of the students and staff of University Technology Malaysia is
also will be our future customers because we also provide the service of Photostat and printing
for their assignments, paperwork and etc. Lastly, we estimate that 15% of the businessman that
work around our company will use our services as we provide services of printing business
documents and business card.

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7.4 Main Competitors
At our location, RASEAN ENTERPRISE has some competitors that provide the same
services like us. RASEAN ENTERPRISE has three competitors in printing services which is
Intelligent Printing Shop, Happy Bee Online Printing Enterprise and Inspirasi Bookstore. We
look these competitors in the positive ways to improve our company in providing the best
services to customers. RASEAN ENTERPRISE also looks the competitors as a healthy
challenge. We just want to make a variety in market competitors especially at Jalan Pendidikan.
So, customers have many choices to meet their preferences. At the same time, RASEAN
ENTERPRISE will also provide goods and quality services to meet their expectation and
satisfying customers wants.

The similarity with the competitors is providing services related to printing services but
our company provides sub services that differentiate our company from the competitors like
offering drinks to customers, membership card, and gives voucher to our regular customers.

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Major competitor

Company Strength Weaknesses

 The company already  The services are too
INTELLIGENT PRINTING establish expensive.
SHOP  Have regular customers  Lack of promotions
 Have good marketing  Lack of workers
strategies
 Give good services
 It is commonly known
in east Malaysia

Minor competitors

Company Strength Weaknesses

 The company already  The place have
HAPPY BEE ONLINE establish unlimited space
PRINTING ENTERPRISE  Good promotion deal  Inexperience of
 Have variety services employees
 The company already  Lack of promotion
INSPIRASI BOOKSTORE establish  Service that provided
 Have strategic place too expensive
 Have friendly  Provide only printing
employees service

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7.5 Market Share
Market share is the percentage of the market that had been control of the company. The table
show the market share of other competitors before RASEAN ENTERPRISE enter the market.

No Name of Company Market Share (%) Estimate Sales every Year (RM)

1 Intelligent Printing Shop 40 750,000

2 Happy Bee Online Printing 35 700,000

3 Inspirasi Bookstore 20 380,000

4 Others 5 170,000

TOTAL 100 2,000,000

Below is the pie chart representing the percentage of market share before RASEAN
ENTERPRISE enters the market.

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After the company has analysis the strength and the weaknesses of the competitors, RASEAN
ENTERPRISE had target to take over 10% of the market. The table shows the expecting market
share of RASEAN ENTERPRISE and the other competitors.

No Name of Company Market Share (%) Estimate Sales every Year (RM)

1 RASEAN ENTERPRISE 10 350,000

2 Intelligent Printing Shop 38 700,000

3 Happy Bee Online Printing 32 660,000

4 Inspirasi Bookstore 16 360,000

5 Others 4 150,000

TOTAL 100 2,220,000

Below is the pie chart representing the percentage of market share after RASEAN ENTERPRISE
enters the market.

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8.0 OPERATION PLAN
8.1 Service Planning
Flow chart of the process of service

Greet the customer

Walk the customer to the discussion room or waiting section

Obtain information from the customer

Discuss and suggest about the design

Ask the customer to come back when the sample is ready

Finish the order

Get the feedback

Make the amendment accordingly

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Service Planning

Our service plan starts with greeting the customer that comes into the shop. This is
because when we greet the customers, they will feel comfortable and appreciated and make them
want to come again to the shop. For the customers that order through our blog or email, we will
entertain them nicely.

After they walk into the shop, we will invite the customer to the discussion room or
waiting section depends on what service they need. If the customer need service such as make
business card, printing banner and design wedding card, we will walk them to the discussion
room, so they will feel more comfortable to discuss. Other than that, we will walk the customer
to the waiting section.

We will obtain information from the customer about the design that they want and
suggest them our idea while showing our catalogue. We will offer the sub service to the
customer that is drinks. That is for entertain the customer so that they can delivered their idea
properly.

After the discussion, we will get the agreement from the customer on the final decision of
the design that they want. Then we will ask them to come back when the sample is ready to make
sure that the customer satisfies with the design. The customer is allowed to make any
improvement on the sample until they satisfies with the design.

When the sample satisfies the customer, we will finish the order and delivered the
product to the customer. After sales, feedback will be obtained from the customer. We have
provided feedback forms to obtain customer comments on our services in terms of time, services
and quality of the product. That was stated in our company policy to obtain feedback after sale
services. Then we will improve our service based on that comments and feedback.

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8.2 Operation Layout

27
8.3 Materials Planning
When we start our business, we budget the materials cost would be RM6,000 for all
materials such A4 papers, business card paper, wedding card paper, envelope, ink for printing
machines and accessories for the wedding card. So we ordered the materials within the amount
that we estimated and we managed to get low prices for the materials from GCH Retail
(Malaysia) Sdn. Bhd. This company is our main dealer for our business.

From the materials that we ordered when we start our business within RM6,000 cost
budgets, for first to second month, the quantity of the materials is still enough to cover our
operation cycle since we just open our printing shop, so the usage is still little. So we will not
order the materials to add up into our store.

For third month and the following month, we will start to order and replace the materials
by monthly order. We set up the budget cost will be RM3, 000 per month for all the materials.
We have estimated our order to be in some quantity for the material per month but it is also
depends on customers‟ order especially in the wedding season. We will replace the materials
every month so that our store will not lack of materials to fulfill customers‟ order.

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Catalog

A4 White Paper 70gsm A4 White Paper 80gsm

A4 Colour Paper Business Card Paper

Wedding Card Paper

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Ink Envelope

Accessories

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8.4 Machines and Equipment Planning
No Machine Quantity Price/Unit Total Price
(RM) (RM)
1. Photocopier 2 2288 4576
2. Banner machine 1 14999 14999
3. Printing machine 2 2299 4598
4. Computer set 2 4000 8000
5. Laptop 3 2000 6000
6. Cash register machine 1 1000 1000
7. Air conditioner 2 1700 3400
8. Shelves 3 300 900
9. Chair 5 100 500
10. Table 3 300 900
TOTAL 44873

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8.5 Manpower Planning
We discussed that the worker is from our partner and outsiders. This is because, some of
our partners are qualified to work as a designing for wedding card, and the rest we will hire the
outsiders.

Hafiz as Human Resource Manager will set the duties for the workers including some of
our partner. Hafiz will make sure that all the workers come to work on time and rotating queue
for their break time. Hafiz also will assist the operator‟s job. We will tell the customers to make
appointment so that it will be easier for Hafiz to scheduling works.

Nad and Azrul will be the designer of wedding card and business card. Shahierah will be
the receptionist and cashier as well as managing online order as she will always be around the
shop. We also hired 3 workers, which are one is receptionist that will assist Shahierah, one will
manage for print and photocopy and the other one as the operator. The three workers are
permanent workers.

Anum or Erra will replace the position for Hafiz and Shahierah while they are having
their break or cannot attend to work. If we get many orders, the workers only can have their
break for 1 hour because the order must be finish on time. When there are no customers, they can
go for their break for 2 hours.

Day On duties Off duties

Monday Hafiz, Nad, Shahierah, Erra, two workers Anum, Azrul, one worker
Tuesday Everyone except Hafiz Hafiz
Wednesday Anum , Nad, Hafiz, Shahierah , Azrul, one worker Erra, two workers
Thursday Anum, Hafiz ,Azrul, Erra, 2 workers Shahierah, Nad, one worker
Friday OFF DAY
Saturday ALL -
Sunday ALL -

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8.6 Overhead Requirement
Overhead requirement that RASEAN ENTERPRISE needs is electricity, waters,
telephones and WIFI.

Electricity is very important to the operation of RASEAN ENTERPRISE because we use

electricity to operate the machine. Our company will be operated from 10 a.m. until 8 p.m on
weekdays and 10 a.m. until 10 p.m. on weekend. That is why cost of electricity is very high for
every month.

For water expenses, the cost was not high because we do not use it for printing and just
for necessities for the workers.

For WIFI, the cost is fixed per month. For telephone bills, we already limit it for RM200
per month because usually the customer will call us for appointment.

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8.7 Operation Hours

RASEAN ENTERPRISE will open every day except Friday, but the time is varying for
weekdays and weekend. The business is open from 10am to 8pm for weekdays. For weekend, the
business is open from 10am to 10pm. The recess time is depends on the customers‟ order. If
there are many orders, we only give 1 hour for workers to rest. If there are plenty or no order, we
will give 2 hours rest for workers. The rest hour is not straight 2 hours. We give 1 hour for first
rest and 1 hour for another rest. The recess time are divided equally to male and female workers.
For Saturday and Sunday, there will be no staff takes their day off due to many customers.

Day Hour
Monday - Thursday 10am - 8pm
Friday Off day
Saturday - Sunday 10am – 10pm

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8.8 License, Permits and Regulations Required

RASEAN ENTERPRISE has to get licenses from the related bodies and authority in order to run
the business smoothly. The licenses that are required are:

1. Premise and sign board license from MPJBT

(Form MPJBT-JPL-KP-01-A1)

2. License for outdoor advertising from MPJBT

(Form MPJBT-JPL-KP-01-B1)

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8.9 Project Implementation Schedule

Activities Deadlines Durations

Incorporation of business March - May 2013 3 months
Application for permits and license March - May 2013 3 months
Searching for business premise June - July 2013 2 months
Renovation of premise August 2013 3 weeks
Setting Fixtures and fittings August 2013 5 days
Procurement of stocks and materials September 2013 1 month
Searching for workers October - November 2013 1 months
Final Checklist November 2013 1 day
Grand Opening December 2013 -

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9.0 Financial Plan
9.1 Pro-Forma Income Statement
RASEAN ENTERPRISE
PRO-FORMA INCOME STATEMENT
YEAR 1
Sales 350,000

Less: Cost of Sales

Opening stock -
Purchases 36,000
Less: Ending Stock (1,000)
Carriage Inward & Duty -
Cost of Sales 35,000

GROSS PROFIT 315,000

Less: Expenditure
Rent 14,400
Utilities 6,000
Advertising 2,400
Salary 256,800
Interest on Loan 5,000
Business Registration & Licences 1,500
Depreciation of Fixed Assets 9,675

Total Expenditure (295,775)

NET PROFIT 19,225

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9.2 Pro-Forma Balance Sheet
RASEAN ENTERPRISE
PRO-FORMA BALANCE SHEET
YEAR 1
Non-Current Assets (Book Value)
Office Equipment 35,898
Signboard 2,800

Current Assets
Stock of Finished Goods 1,000
Accounts Receivable
Cash Balance 95,527

TOTAL ASSET 135,225

Owners' Equity
Capital 90,000
Accumulated Profit 19,225

Long-Term Liabilities
Loan Balance 25,000
Hire-Purchase Balance

Current Liabilities
Accounts Payable 1,000

TOTAL LIABILITIES 135,225

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9.3 Financial Ratio Analysis
FINANCIAL RATIO ANALYSIS

LIQUIDITY
Current Ratio 96.527 : 1
Quick Ratio (Acid Test) 95.527 : 1
LEVERAGE
Debt Ratio 19.23%
PROFITABILITY
Gross Profit Margin 90%
Net Profit Margin 5.49%
ACTIVITY
Stock Turnover Ratio 70 times

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9.4 Depreciation schedule

Fixed Asset Office Equipment

Cost (RM) 44,873
Method Straight Line
Economic Life (yrs) 5

Year Annual Depreciation Accumulated Depreciation Book Value

- - 44,873
1 8,975 8,975 35,898
2 8,975 17,950 26,923
3 8,975 26,925 17,948
4 8,975 35,900 8,973
5 8,975 44,875 -
6 - - -
7 - - -
8 - - -
9 - - -
10 - - -

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Fixed Asset Signboard
Cost (RM) 3,500
Method Straight Line
Economic Life (yrs) 5

Year Annual Depreciation Accumulated Depreciation Book Value

- - 3,500
1 700 700 2,800
2 700 1,400 2,100
3 700 2,100 1,400
4 700 2,800 700
5 700 3,500 -
6 - - -
7 - - -
8 - - -
9 - - -
10 - - -

41