Table 1 Equipment list and price

Equipment cost Price(USD) Power Size Capacity

(kW) (L*W*H) (kg/h)
Warehouse
Washer (Bubble ozone conveyer) Machine 3,500 5 5*1.3*1.3 300
TSXQ 30

Thermal pre-treatment Machine 250 4.5 Custom 400

Winnowing and breaking GGPT Machine 4,000 0.75 1.8*0.75*1.3 700

300

Alkalisation Machine 1450 1.5*1.5*3 1000

Tray drying KLMD - 8 Machine 5000 45 4.2*2.0*2.3 960 kg

Roasting GWR 150 Machine 14,700 1.3 1.4*0.8*1.5 1000 kg/h

Grinding LSTC1000 Machine 7500 22 2.58*1.35*1.79 1000 kg 16- 30

22 h rpm

Flowsplit Machine
Pressing Machine 3000 13 1.5*1.5*1 200-300 kg/h

ST 1 Machine 1450 1.2*1.3*2.3 500-1000 L

ST2 Machine 1450 1.2*1.3*2.4 500-1000 L

ST 3 Machine 1450 1.2*1.3*2.5 500-1000 L

ST 4 Machine 1450 1.2*1.3*2.6 500-1000 L

Mixer Labour + 2000 custom 2000 L Stainless steel
Mixer

Conching Machine 4,000 5.5 1.7*1.05*1.25 1200 L 20-

25
um

Extrusion/molding LST 1000 Machine 5,500 32 14.9*2.4*1.8 4500 kg

Cooling Machine 1500 1.5 9*1.05*0.7 Stainless steel

Filling/wrapping Machine 4,500 1.8 5.5*1.2*2

Conveyer Machine 2000 3 <20 m total (in 10-30 metres
between
machines)

Packaging Machine 3 3*1.2*1.5

Total 65,200 131.35

Marked up price per month 130400 23117. <kW per month
6

Total RM 589884 277404

 Table 2 Raw material costs

Raw material price per Price

month per year
RM 7.72 cocoa bean per kg (22000) 169840
rm1.06 sugar per kg (9790 kg) 10277
Rm 19 chilli per kg (660) 12540
Rm 25 milk per kg (5280) 132000
Rm 197 lecithin per kg (110) 21670
Total 346327 4155924

Table 3 Production cost

Price of product per year

Raw material 4155924
Packaging material 24000
Transport 7200
Power 92655.24
Labour 187200
Total 4466979.24

Table 4 Product pricing and profit decision

Per batch Amount RM Marked up

Price of production - 16920 24534
No. of chocolate (150g) 6733 - -
Chocolate bar 150 g 1 3.64 -
Gross profit 7614
Per annum 2010096
 Table 5 Plant financial per year

per per year

month
Type of production cost RM
Rent 3500 42000
Production Labour/EPF/SOCSO * 15600 187200
22days
Loan repayment**1,000,000 33300
Interest charges**4% 6069
Professional fees (e.g. 2500 30000
accountant's fees)
Maintenance of equipment (10% of 54246
value)
Depreciation of equipment (over 3 - 197425.92
years) 14% per year
Halal Certification, Business - 550
registration and etc.
Total fixed costs - 583421.92
Variable costs
Raw materials (Table 1) 346327 4155924
Water bills 18000
Fuel 800 9600
Power 7721.27 92655.2
Packaging materials rm18 per kg 2000 24000
Transport/distribution 600 7200
Management salary/EPF/SOCSO 15000 180000
Advertising and promotion 300 3600
Total variable costs - 4477779.24

Total operating costs per Year - 5061201.16

Cash flow from product profit 167,508 2010096

Cash flow from by-product profit 230,000 2900000
 Table 6 Total annual cost for year 1

TOTAL ANNUAL COST- YEAR 1

RM RM
Administrative Cost
Working Capital 367 200
(Management Cost,
Production Labor Cost,
EPF, SOCSO)
30 000
Professional Fees
54 246
Maintenance of equipment

Halal Certification, Business 550

registration fees, Hygiene
certificates and other
licenses

451 996
Operating Cost
Rent 42 000
Raw materials 4 155 924
Fuel 9 600
Utilities 110 655.20
Packaging materials 24 000
Transport/distribution 7 200

4 349 379.20
Marketing Expenditure
Advertising and promotion 3 600
3 600
Loan Payment
Principal & Interest 39393.45
39393.45
Total
4 839975.20
 Table 7 Cash flow input for 10 years

Input
year 0 1 2 3 4 5 6 7 8 9 10
Sale max daily prodn 7000
By-product sale 2900000 2900000 3045000 3197250 3357112.5 3524968.125 3701216.531 3886277.36 4080591.226 4284620.787 4498851.826
total sale "50% increasing to 100%"
RM4.00 6,260,000 6,741,000 7,229,250 7,725,113 8,228,968 8,741,217 9,262,277 9,792,591 10,332,621 11,218,852
Products return 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

Cost of production
raw material 4,155,924 4,363,720 4,581,906 4,811,002 5,051,552 5,304,129 5,569,336 5,847,802 6,140,193 6,447,202
Packaging material 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Indirect material 1,200 1,260 1,323 1,389 1,459 1,532 1,608 1,689 1,773 1,862
Labour cost 187,200 196,560 206,388 216,707 227,543 238,920 250,866 263,409 276,580 290,409
Utility 110,655 1,309,116 1,374,572 1,443,300 1,515,465 1,591,239 1,670,801 1,754,341 1,842,058 1,934,161
Maintenance and repair 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540

Cost of admin & marketing

Indirect labour cost 36,000 37,800 39,600 41,400 43,200 45,000 46,800 48,600 48,600 50,400
Factory renting 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000
Admin expenses 180,000 189,000 198,450 208,373 218,791 229,731 241,217 253,278 265,942 279,239

Other cost
Development expenses 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300
Depreciation 82,584 71,022 61,079 52,528 45,174 38,850 33,411 28,733 24,711 21,251
Loan interest 39,393.46 38,035.78 36,623 35,152 33,622 32,029 30,371 28,646 26,850 24,982

Capital cost
Advertising and promotion 3,600
Machine & equipment 589884
Fuel 9,600
Building renovation & offi ce fitting 42,000
Transport 7,200
Working capital 367,200
 Table 8 Predicted profit and lost for 10 years

Table 8 Predicted profit and loss for 10 years

Table 9 Cash flow statement for 10 years
Predicted
Cashprofit and lost
flow statement
Year Year 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10

Sale Cash flow, in: 6,260,000 6,741,000 7,229,250 7,725,113 8,228,968 8,741,217 9,262,277 9,792,591 10,332,621 11,218,852
Minus: Productsreturn
return
Profit before minus other cost 62,600
1,430,421 67,410
477,434 72,293
653,183 77,251
821,179 82,290
981,032 87,412
1,132,335 92,623
1,274,662 97,926
1,407,563 103,326
1,532,367 112,189
1,977,619
Net sale Return on working capital 6,197,400 6,673,590 7,156,958 7,647,861 8,146,678 8,653,804 9,169,655 9,694,665 10,229,295 11,106,663
367,200
Total cash flow in - 1,430,421 477,434 653,183 821,179 981,032 1,132,335 1,274,662 1,407,563 1,532,367 2,344,819
Minus: Costs of production
Cash flowRaw
out: material 4,155,924 4,363,720 4,581,906 4,811,002 5,051,552 5,304,129 5,569,336 5,847,802 6,140,193 6,447,202
Capital expenses: material
Packaging 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Indirect material expenses
Production 3,600 1,200 - 1,260 - 1,323 - 1,389 - 1,459 - 1,532 - 1,608 - 1,689 - 1,773 - 1,862 -
Labour cost
Machine & equipments 589,884 187,200 - 196,560 - 206,388 - 216,707 - 227,543 - 238,920 - 250,866 - 263,409 - 276,580 - 290,409 -
UtilityDelivery, transport & installation 9,600 110,655 - 1,309,116 - 1,374,572 - 1,443,300 - 1,515,465 - 1,591,239 - 1,670,801 - 1,754,341 - 1,842,058 - 1,934,161 -
RepairRenovation
and maintainance
and offi ce fitting 42,000 30,000 - 31,500 - 33,075 - 34,729 - 36,465 - 38,288 - 40,203 - 42,213 - 44,324 - 46,540 -
Total cost of production
Transport 7,2004,508,979 - 5,927,356 - 6,223,724 - 6,534,910 - 6,861,656 - 7,204,739 - 7,564,976 - 7,943,224 - 8,340,385 - 8,757,405 -
Working capital 367,200
GrossTotal
profitcash out 652,2841,688,421
367,200 746,234 - 933,233 - 1,112,951 - 1,285,023 - 1,449,066 - 1,604,679 - 1,751,441 - 1,888,909 - 2,349,259 -

Minus: Admin and marketing

Net cash flow (652,284) 1,063,221 477,434 653,183 821,179 981,032 1,132,335 1,274,662 1,407,563 1,532,367 2,344,819
Indirect labour cost 36,000 37,800 39,600 41,400 43,200 45,000 46,800 48,600 48,600 50,400
Factory
Accumulated cashrenting
flow (652,284) 42,000
410,937 42,000
888,371 42,000
1,541,554 42,000
2,362,733 42,000
3,343,764 42,000
4,476,099 42,000
5,750,761 42,000
7,158,324 42,000
8,690,691 42,000
11,035,511
Admin expenses 180,000 189,000 198,450 208,373 218,791 229,731 241,217 253,278 265,942 279,239
Total Admin & marketing 1 258,000
0 268,800
0 280,050
0 291,773
0 303,991
0 316,731
0 330,017
0 343,878
0 356,542
0 371,639
0
0 1 0 0 0 0 0 0 0 0 0
Gross profit before minus other costs 1,430,421 477,434 653,183 821,179 981,032 1,132,335 1,274,662 1,407,563 1,532,367 1,977,619

Development expenses 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300
Depreciation 82,584 71,022 61,079 52,528 45,174 38,850 33,411 28,733 24,711 21,251
38,036 Table 10
Loan interest
NPV, IRR and
36,623
R
35,152 33,622 32,029 30,371 28,646 26,850 24,982
39,393.46
Sub total 39,393.46 112,358 101,002 90,980 82,096 74,179 67,082 60,679 54,861 49,533

Profit before tax 1,391,027 365,076 552,182 730,198 898,936 1,058,157 1,207,580 1,346,884 1,477,506 1,928,087
Net present value (NPV) 10% 5,339,489
Internal rate of return (IRR) 133%
Return on investment (ROI) 0.6 years