FINANCIAL PLAN

1
9. Financial Plan
The financial part of a business plan includes various financial statements that show
where your company currently stands and where it expects to be soon.

9.1 Operating Budget

9.1.1 Administrative Department

Table 9.1.1 Administrative Budget

Monthly Other
Item Fixed Assets Expenses Expenses (RM)
(RM)
Fixed Asset
Office Furniture and Fittings 6,5770.00 - -
Working capital
Salary, EPF & SOCSO - 5,163.75 -
Other Expenses
Office Supplies - - 646.00

TOTAL 6,5770.00 5,163.75 646.00

 9.1.2 Marketing Department

Table 9.1.2 Marketing Budget

Fixed Asset Monthly Other Expenses

Item
(RM) Expense (RM) (RM)
Fixed Asset
- Signboard 1,500 - -
Working capital
- Salary, EPF, SOCSO - 2,300 -
Other expenses
- Media Social Advertisement - 200 -
- Business Card 250
- -
600
- Flyers - -
150
- Signboard license - -
2400
- Grand opening - -
TOTAL 1,500 2,500 1000

9.1,3 Operations Department

Table 9.1.3 Operations Budget

Item Fixed Assets Monthly Other
Expenses Expenses
(RM) (RM)

Fixed Asset
Machine and Equipment 4,641.28 - -
Working Capital
Raw Material, - 1,766.48 -
Salary, EPF & SOCSO - 7,344.00 -
Operational Overhead - 4,098.00 -

Other Expenses
Worker’s uniform - - 200.00
Vaccine, healthcare - - 900.00
consultation, and - - -
Medicine - - -
 Pre-Operations
Deposit Rent - - 2,100.00
Halal Certificate - - 200.00
Insurance - - 500.00

TOTAL 4,641.28 13,208.48 3,900.00

9.2 Project Implementation Cost and Sources of Finance

Table 9.2.1 Project Implementation Cost of Finance

Capital Expenditure Cost Sources of Financing
Land & Building   Existing asset
Office Furniture & Fittings 6,577 Hire-purchase
Signboard 1,500 Cash
Machines and equipment 4,641 Hire-purchase
Working Capital 1 months  
Sales & Marketing Costs (monthly) 2,495 Cash
General & Administrative Costs (monthly) 5,163 Cash
Operations & Technical Costs (monthly) 13,208 Cash
Pre-Operating & Incorporation Costs (one-off) 6,200 Cash
Other Expenditure (annually) 1,746 Cash
Provision for Contingencies 5%   1,989 Cash
TOTAL 43,519  
 Table 9.2.2 Project Implementation Source of Finance

Capital Expenditure Cost Own Contributions Loan Hire-

Cash Existing F. Purchase
Assets
Office Furniture & Fittings 6,577 6,577
Signboard 1,500 1,500
Machines and equipment 4,641 4,641
Working Capital
Sales & Marketing Costs 2,495 2,495
(monthly)
General & Administrative 5,163 5,163
Costs (monthly)
Operations & Technical Costs 13,208 13,208
(monthly)
Pre-Operating & 6,200 6,200
Incorporation Costs (one-off)
Other Expenditure 1,746 1,746
(annually)
Provision for Contingencies 1,989 1,989
TOTAL 43,519 32,301 11,218

9.3 Fixed Asset Depreciation Schedule

Table 9.3.1 Office Furniture & Fittings Depreciation

Type of Fixed Asset Office Furniture & Fittings

Cost (RM) 6,577  
Depreciation Method Straight Line  
Economic Life (yrs) 5  
Yea Annual Accumulated Book Value
Depreciation Depreciation
r
  - - 6,577
1 1,315 1,315 5,262
2 1,315 2,631 3,946
3 1,315 3,946 2,631
4 1,315 5,262 1,315
5 1,315 6,577 -

Table 9.3.2 Signboard Depreciation

Type of Fixed Asset Signboard

Cost (RM) 1,500  
Depreciation Method Straight Line  
Economic Life (yrs) 5  
Yea Annual Accumulated Book Value
Depreciation Depreciation
r
- - 1,500
1 300 300 1,200
2 300 600 900
3 300 900 600
4 300 1,200 300
5 300 1,500 -

Table 9.3.3 Machines and Equipment Depreciation

Type of Fixed Asset Machines and equipment

Cost (RM) 4,641
Depreciation Method Straight Line
Economic Life (yrs) 5
Yea Annual Accumulated Book Value
Depreciation Depreciation
r
- - 4,641
1 928 928 3,713
2 928 1,857 2,785
3 928 2,785 1,857
4 928 3,713 928
5 928 4,641 -

9.4 Hire-Purchase Depreciation Schedule

Table 9.4 Hire-Purchase Depreciation Schedule

HIRE-PURCHASE REPAYMENT SCHEDULE

Amount 11,218
(RM)
Interest 5%
Rate
Duration 5
(yrs)

Years Installment Payment Principal Balance

Principal Interest Annual
 Payments
- - - 11,218
1 2,244 561 2,805 8,975
2 2,244 561 2,805 6,731
3 2,244 561 2,805 4,487
4 2,244 561 2,805 2,244
5 2,244 561 2,805 -
 9.5 Pro-Forma Cashflow Statement

Table 9.5.1 Pro-forma Cashflow

Statement
2019 MONTHLY CASH FLOW 2019 2020 2021

MONTH Pre- Januar Februar Marc April May June July August Septembe Octobe Novembe Decembe
Operation y y h r r r r
s
CASH
INFLOW
Capital 32,301 32,301 0 0
(Cash)
Loan 0 0 0 0
Cash Sales 31,464 32,220 31,558 29,58 35,23 34,80 33,632 32,860 30,520 28,780 38,690 42,900 402,23 442,45 508,82
0 0 0 4 7 6
Collection of 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounts
Receivable
TOTAL 32,301 31,464 32,220 31,558 29,58 35,23 34,80 33,632 32,860 30,520 28,780 38,690 42,900 434,53 442,45 508,82
CASH 0 0 0 5 7 6
RECEIPT
CASH
OUTFLOW
Pre-operating 6,200 6,200
&
Incorporation
Expenditure
Sales & 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 29,940 31,437 33,009
Marketing
Expenditure
General & 5,163 5,163 5,163 5,163 5,163 5,163 5,163 5,163 5,163 5,163 5,163 5,163 61,956 65,054 68,306
Administrativ
e Expenditure
Operations & 12,148 13,226 13,252 13,23 13,29 13,41 13,371 13,314 13,235 13,117 13,281 13,710 158,60 167,82 177,89
101
 Technical 8 7 1 1 1 4
Expenditure
Other 1,746 1,746 1,833 1,325
Expenditure
Purchase of 1,500 1,500
Fixed Assets
Hire-Purchase
Repayment:
Principal 187 187 187 187 187 187 187 187 187 187 187 187 2,244 2,244 2,244
Interest 47 47 47 47 47 47 47 47 47 47 47 47 561 561 561
Loan
Repayment:
Principal 0 0 0 0 0 0 0 0 0 0 0 0 0 - -
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 - -
Tax Payable 0 0 0 0 0 0 0 0 0 0 0 37,659 37,659 44,861 58,015
TOTAL 7,700 21,786 21,117 21,144 21,13 21,18 21,30 21,262 21,206 21,127 21,009 21,173 59,260 300,04 313,81 341,95
CASH 0 9 3 9 1 5
OUTFLOW
CASH 24,601 9,678 11,103 10,414 8,450 14,04 13,49 12,370 11,654 9,393 7,771 17,517 (16,360) 134,12 128,64 166,87
SURPLUS 1 7 9 6 1
(DEFICIT)
BEGINNIN 24,601 34,279 45,382 55,79 64,24 78,28 91,784 104,15 115,808 125,201 132,972 150,489 0 134,12 262,77
G CASH 6 6 7 4 9 5
BALANCE
ENDING 24,601 34,279 45,382 55,796 64,24 78,28 91,78 104,15 115,80 125,201 132,972 150,489 134,129 134,12 262,77 429,64
CASH 6 7 4 4 8 9 5 6
BALANCE

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 Table 9.5.2 Summary of Cashflow Statement

SUMMARY Total Cash Total Cash Ending

Inflows Outflows Balance
2019 434,535 300,406 134,129
2020 442,457 313,811 262,775
2021 508,826 341,955 429,646

Graph 9.5 Annual Cash Balance

500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1 2 3 4 5

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 9.6 Pro-forma Income Statement

Table 9.6.1 Pro-forma Income Statement

Years 2019 2020 2021
Sales 402,234 442,457 508,826
Less: Cost of Sales (Notes 1 & 2) 157,475 169,413 180,274
Gross Profit 244,759 273,044 328,552
       
Less: Expenditure      
Pre-Operating & Incorporation 4,100    
Expenditure
General & Administrative 61,956 65,054 68,306
Expenditure
Sales & Marketing Expenditure 29,940 31,437 33,009

Other Expenditure 1,746 1,833 1,925

Interest on Hire-Purchase 561 561 561
Interest on Loan      
Depreciation of Fixed Assets 1,615 1,615 1,615
Total Expenditure 99,918 100,500 105,417
Net Income Before Tax 144,840 172,543 223,135
Tax   37,659 44,861 58,015
Net Income After Tax 107,182 127,682 165,120
Accumulated Net Income 107,182 234,864 399,984
             
Note 1        
Cost of Sales      
Opening Inventory of Finished 0 3,000 3,500
Goods
Add: Total Production Cost (Note 2) 160,475 169,913 180,774
0
Less: Ending Inventory 3,000 3,500 4,000
        157,475 169,413 180,274
             
Note 2
Raw Materials      
Opening Inventory 0 500 700
Add: Current Year Purchases 22,743 25,016 28,768
Add: Carriage Inwards      
Less: Ending Inventory 500 700 1,000
Raw Materials Used 22,243 24,816 28,468
             
Labour      
Salaries, Wages, EPF & SOCSO 88,128 92,534 97,161
             
Factory Overhead      
Depreciation of Fixed assets 928 928 928
(Operations)
Operational Overhead 49,176 51,635 54,217
             
Total Factory Overhead 50,104 52,563 55,145
             
Total Production Cost 160,475 169,913 180,774

Table 9.6.2 Summary of Pro-forma Income Statement

SUMMAR Total Sales Total Net
Y Expenditure Income
2019 402,234 99,918 107,182
2020 442,457 172,543 127,682
2021 508,826 223,135 165,120
2021 Net Income
Expenses
Sales

2020

2019

- 200,000 400,000 600,000

Graph 9.6.1 Summary of Pro-forma income Statement

 9.7 Pro-forma Balance Sheet

Table 9.7.1 Pro-forma Balance Sheet

2019 2020 2021
ASSETS
Non-Current Assets (Book
Value)
Land & Building
Other Fixed Assets 10,175 7,631 5,087
Other Assets
Deposit 2,100 2,100 2,100
12,275 9,731 7,187
Current Assets
Inventory of Raw 500 700 1,000
Materials
Inventory of Finished 3,000 3,500 4,000
Goods
Accounts Receivable
Cash Balance 134,129 262,775 429,646
137,629 266,975 434,646

TOTAL ASSETS 149,904 276,706 441,834

Owners' Equity
Capital 32,301 32,301 32,301
Accumulated Income 107,182 234,864 399,984
139,483 267,165 432,285
Long-Term Liabilities
Loan Balance
Hire-Purchase Balance 8,975 6,731 4,487
8,975 6,731 4,487
Current Liabilities
Accounts Payable 1,446 2,810 5,061

TOTAL EQUITY & 149,904 276,706 441,834

LIABILITIES
 Table 9.7.2 Summary of Pro-forma Balance Sheet
XSUMMAR Total Total Total Equity
Y Assets Liabilities
2019 149,904 10,421 139,483
2020 276,706 9,541 267,165
2021 441,834 9,548 432,285

Graph 9.7.1 Summary of Pro-forma Balance Sheet

2013

2012

Equity
2011 Liabilities
Sales

2010

2009

0 100000 200000 300000 400000 500000

 9.8 Financial Ratio Analysis
9.8.1 Luquidity Ratios
9.8.1.1 Current Ratio Ratios

Table 9.8.1.1 Current Ratios

LIQUIDITY      
  95 95 86
Current Ratio

Current Ratio
100
90
80
70
60
50
40
30
20
10
0
2019 2020 2021 2022 2023

Graph 9.8.1.1 Current Ratios

1.1.1.1 Quick Ratio

 9.8.1.2 Quick Ratio
Table 9.8.1.2 Quick Ratios

Quick Ratio 93 94 85
(Acid Test)

Graph 9.8.1.2 Current Ratios

Quick Ratio (Acid Test)

100
90
80
70
60
50
40
30
20
10
0
2019 2020 2021 2022 2023
 9.8.2 Efficiency Ratios
9.8.2.1 Inventory Turnover Ratios

Table 9.8.2.1 Inventory Turnover Ratios

EFFICIENCY
Inventory Turnover 90 81 72

Graph 9.8.2.1 Inventory Turnover Ratios

Inventory Turnover
90
80
70
60
50
40
30
20
10
0
2019 2020 2021 2022 2023
 9.8.3 Profitability Ratios

Table 9.8.3 Profitability Ratios

PROFITABILITY
Gross Profit Margin 60.85% 61.71% 64.57%
Net Profit Margin 26.65% 28.86% 32.45%
Return on Assets 71.50% 46.14% 37.37%
Return on Equity 76.84% 47.79% 38.20%

9.8.3.1 Gross Profit Margin

Graph 9.8.3.1 Gross Profit Margin

Gross Profit Margin

70%
60%
50%
40%
30%
20%
10%
0%
2019 2020 2021 2022 2023
 9.8.3.2 Net Profit Margin

Graph 9.8.3.2 Net Profit Margin

Net Profit Margin

35%
30%
25%
20%
15%
10%
5%
0%
2019 2020 2021 2022 2023

9.8.3.3 Return on Assets

Graph 9.8.3.3 Return on Assets

Return on Assets
80%
70%
60%
50%
40%
30%
20%
10%
0%
2019 2020 2021 2022 2023
 9.8.3.4 Return on Equity

Graph 9.8.2.4 Return on Equity

Return on Equity X

80%
70%
60%
50%
40%
30%
20%
10%
0%
2019 2020 2021 2022 2023

110
 9.8.4 Solvency Ratios

Table 9.8.4 Solvency Ratios

SOLVENCY
Debt to Equity 7.47% 3.57% 2.21%
Debt to Assets 6.95% 3.45% 2.16%

9.8.4.1 Debt to Equity

Debt to Equity
8%
7%
6%
5%
4%
3%
2%
1%
0%
2019 2020 2021 2022 2023

Graph 9.8.4.1 Debt to Equity

114
 9.8.4.2 Debt to Assets

Debt to Assets
7%
6%
5%
4%
3%
2%
1%
0%
2019 2020 2021 2022 2023

Graph 9.8.4.2 Debt to Asset

115