MEMBER’S PROFILE

Name: Muhammad Alif bin Nordin

Personal Id: 020215101457

Student Id: 2020880616

Email : alifnrdn15@gmail.com

Phone Number: 01169506020

Residential Address: Lot 4371, Sungai Baru Rungkup,

36200 Selekoh, Perak

Name: Nuradilah binti Ahmad Shaifuddin

Personal Id: 020913140082

Student Id: 2020613324

Email: nradilahshaifuddin@gmail.com

Phone Number: 0126565166

Residential Address : A-16-27 Pangsapuri Sri Penara

Bandar Sri Permaisuri Cheras 56000 Kuala Lumpur.
Name: Izza Farisha Binti Aznan

Personal Id: 021113011236

Student Id: 2020611094

Email: izzafarisha13@gmail.com

Phone Number: 0136498840

Residential Address : A-2-6 Desa Aman 1, Jalan

Pantai Murni, Pantai Dalam 59200 Kuala Lumpur.

Name: Sabarina binti Amran

Personal Id: 020415010824

Student Id: 2020475598

Email: erinamran04@gmail.com

Phone Number: 0194382260

Residential Address : No 14 Jalan Jelatang 20 Taman

Megah Ria, 81750 Masai, Johor.
 CHAPTER 1:
BACKGROUND OF THE
COMPANY
1.1 Name of company

The name that we have chosen for our company is Sky Wagon Motors. The company was given
the moniker Sky Wagon to reflect our commitment to achieving our goal, as the first company to
ever develop cars with the ability to fly.

1.2 Type of business

We conducted business in the automotive industry. Sky Wagon is an automobile firm that makes
flying cars. We also introduce various sorts of cars into our company. Sports cars, for example,
the BMW Z4. Mercedes-Benz AMG GT Coupe, Ford Mustang Convertible, and Mercedes-Benz
AMG GT Convertible. In addition, Ducati Panigale V4, SuperSport, and Monster BS6 are
available as motorcycles. There are also sedans and MPVs offered by BMW, Mercedes-Benz,
Kia, Toyota, and Honda.

1.3 Date of registration

Sky Wagon motors were founded with Senior General Manager (SGM) on 2 February 2012 by
Muhammad Aliff Bin Nordin as a director and the other partner, Izza Farisha Binti Aznan,
Nuradilah Binti Ahmad Shaifuddin, and Sabarina Binti Amran. After earning his degree from
Universiti Teknologi Mara, Senior General Manager Encik Muhammad Alif went to Stanford
University to earn a master's in automobile design and engineering. Following that, he gets
offered the job to work for Perodua Manufacturing Sdn. Bhd. for six years as an engineering
assistant. His desire to learn more about cars drove him to create a business in 2012, and he
has since continued to develop new models of vehicles with the assistance of co-founders with
various specialties. Sky Wagon Motors has been operating for 10 years and is always improving
to suit the demands of the ever-changing motor repair business. This company has its registered
office at No 294 JLN Ampang 50450 Kuala Lumpur. Our branch is located at Wisma SW, No 4 &
5, JALAN Memanda 7, Ampang Point, 68000 Ampang Selangor
1.4 Capital of business

Initially, this business was capitalized on by the co-founders. Each of the founders contributes
RM10,000 per person. Later, the firm intends to obtain a loan of RM100,000,000 as a start-up to
cover the initial costs of furniture and computers, as well as staff salaries for the first twenty
years.

1.5 Purpose of business

The purpose of our business is that we are certain that we will be able to produce the first flying
automobile. To boost productivity, this invention combines a land and air vehicle. To reduce time
and promote environmental responsibility, consumers will not need to travel using two different
types of transportation. If this firm succeeds, it will change people's perceptions of driving cars.
The company will be focusing on middle- and upper-class customers that are between 28 to 50
years old as their major target market who are looking for cost-effective and environmentally
friendly automobiles. If this firm were successful, it would take over the whole market. For the
past 10 years, we have had four partners and forty-six (46) staff from different fields.
 CHAPTER 2:
ADMINISTRATION,
MARKETING,
OPERATIONS, AND
MANAGEMENT
PLANNING
2.1 MARKETING (4P’S)

2.1.1 Price

The financing division has put a lot of effort into figuring out the cost of the flying cars to set
affordable pricing while still making a profit. After deep consideration, we decided to set the price
per unit of the flying car at RM850,000. Before determining the price, the expenses incurred
while manufacturing the products, the market demand, and the profit percentage were all
considered. The costs incurred include both fixed costs like machinery and equipment as well as
variable costs like labor, raw materials, and utilities. As the product is new, there is little demand
in the market because people are still unsure whether it will work. As of now, the company is only
selling 65 vehicles per month. It is still far from the firm's target of selling 100 cars per month to
make a profit and pay off the firm's liabilities as planned. A new marketing strategy will be
developed to ensure that the company meets its goal. Following a thorough discussion among
the co-founders, a thorough conclusion for profit percentage gain per unit car sold was reached.
They agreed to a 20% profit as they are still new to the market and cannot afford to set it too
high. They must also ensure that the profit is sufficient to cover the modal and expenses.

2.1.2 Promotion

To ensure the firm reached its target, we should have a meticulous marketing plan. We exhibit
our cars in the mall to expose our products to the public. We carefully selected Pavilion as the
mall in which to display our vehicles. Because that is where we believe our target market, which
is middle and upper-class, is concentrated. Aside from that, we can do indirect advertising by
sponsoring an automotive influencer on one of our vehicles for a set period. As a result, they can
advertise our products on their platform, making people aware of them. It is because people tend
to mimic what influencers do to keep up with the trend. Influencers, on the other hand, must be
well-known figures in their respective communities and have a large following. The marketing
team must ensure that they consult with respected influencers about the type of image of the
product that should be displayed. Furthermore, it is critical to conduct a background check and
thoroughly contract with them to ensure they do not tarnish the product and company image.
Other than that, we can do television advertising as it is nationwide use by any generation. It is a
great medium to introduce flying cars, so people become more familiar with them and more
believable. We can hire any celebrity that is renowned as our ambassador to represent our
brand.
2.1.3 Place

We own a showroom for our flying cars which is located at Wisma SW, No 4 & 5, JALAN
Memanda 7, Ampang Point, 68000 Ampang Selangor. We conduct our business from 9.00 am
until 7.00 pm on the weekdays while on the weekend we operate from 9.30 am until 5.30 pm.

2.1.4 Product

The vehicle is equipped with the most recent turbocharging systems and technology to generate
more power and airspeed. The rear suspension geometry and flight controls are integrated into
the tail surface. The vehicle's ultra-lightweight wheels allow for tarmac, concrete, or grass
landings. The flying platform is 5.8 meters long, 8.8 meters wide, and 1.4 meters high, while the
vehicle configuration is 5.9 meters long, 2.2 meters broad, and 1.5 meters high. While the
highest speed on a road is 160 km/h, the vehicle has an optimum flying speed of 360 km/h. The
vehicle's maximum take-off weight is 960 kilograms, while its usable load and fuel capacity are
each 240 kg and 90l. The vehicle's interiors are equipped with cutting-edge safety features and
technologies, like dual-stage airbags and pyrotechnic seatbelts. To prevent crash landings, the
vehicle also has built-in vehicle recovery ballistic parachutes. By effectively spreading the
weights, the pilot and co-seating pilot's positions are fixed. Comfort and safety are further
improved by the main flight/drive controls and the movable pedal box.
2.2 ORGANIZATION PART

CEO

VP Human
resources

VP Business
VP Marketing
development

2.2.1 List of Administrative Remuneration

POSITION TOTAL AMOUNT (RM)

CEO 25,000
VP Human resources 15,000
VP operations 15,000
VP Marketing 16,000
VP Finance 15,000
Cleaner 1,500
TOTAL
2.2.2 Job Description

POSITION Task and Authority

CEO  In charge of directing the activity of a

certain department within an
organization.
 Oversee personnel as they do their
tasks.
 Ensure that all company goals and
objectives are met.
 Provide instruction and direction.
 Keep track of the company’s day-to-
day operations.

Finance Manager  Obtaining, evaluating, and reviewing

financial data.
 Making predictions about future
financial patterns.
 Budget review, monitoring, and
management.
 Creating techniques that work to
reduce financial risk.
 Investigating market trends and rivals.

VP Human Resource  Maintains and improves the

organization's human resources.
 Maintains the work structure.
 Maintain employee perks.
 Follow the management guidelines.

VP Marketing  Observe all marketing initiatives.

 Apply techniques
 Market a company, a product, or a
 service.
 In charge of hitting the goal for gaining
new customers.
 Increase the advertising's return on
investment.
VP Business Development  accountable for aiding businesses in
growing their revenue and improving
brand awareness.
 Work together with business leaders
and sales and marketing experts to
examine current market trends.
 Establish enduring and fruitful
connections with important clients.
 Communication must be direct and
decisive.
 When necessary, engage consumers
directly to assist in closing sales.

2.2.3 Process of production

 To turn a concept car into a real car, automakers need raw materials.
Many businesses are looking for materials that are more
environmentally friendly, lightweight, and affordable.
Source of material

People's requirements and wishes must be met via design, which

typically takes several iterations to reach the right match. The inside
and exterior must also be appealing and useful to potential purchases
Designing while adding cutting-edge technology that adds value to the vehicle.

Machines design and stamp the sheet metal components for the
bodywork. These components combine to create the side frames,
doors, hoods, and roofs that are eventually attached to the car’s
primary frame. The automobile will be transported onto a production
line once the frame is made, and the components are prepared for
Manufacturing assembling.

1) Manufacturing

Machines design and stamp the sheet metal components for the bodywork. These
components combine to create the side frames, doors, hoods, and roofs that are eventually
attached to the car’s primary frame. The automobile will be transported onto a production line
once the frame is made, and the components are prepared for assembling.

2) Testing and Launch

The automobile can be introduced to the market if it doesn't need any more design or
manufacturing modifications for safety. The automobile will be built and sold to the public by
automotive dealerships and independent dealers after market research, the creation of a
marketing strategy, and pricing determination.

OPERATION PLAN
 CAR-PRODUCING PROCESS FLOW DIAGRAM

Gearbox Trans Axle Engine-TA Engine Block

assembly Assembly Marriage Assembly

Weld Paint Shop Trim Line 1 Engine Final

Shop Mounting assembly

Assem

The vehicle production operation plan consists of a few of phases. stamping being
the primary one. the early phase of a vehicle's production the basic material, which is
sheet steel, is also transformed into body parts by this process. The assembly of all
aluminum pieces and metal sheets is done during the second step, which is known
as the manufacturing process. Painting the automobile comes in third. The body's
ultimate appearance and mechanical strength are both goals of this process. Each
car is also sealed by putty application. Assembly is the final step in the manufacture
of cars. The car's interior decoration, mirrors, driving positions, and mechanical
components are all produced and fitted at this point.

OPERATION SCHEDULE /BUSINESS HOUR

 SKY WAGON MOTORS
BUSINESS HOUR TIME
MONDAY – FRIDAY 09.00 AM – 07.00 PM
(WEEKDAYS)
SATURDAY – SUNDAY (WEEKEND) 09.30 AM – 05.00 PM

MATERIAL REQUIREMENTS

ITEM QUANTITY REQUIRED SAFETY STOCK

(KG)

Steel 900
Plastics 151
Fiberglass 20-30
Glass
Special fibres

Aluminium 255
Lead
Cooper
Magnesium
Titanium
Rubber 68
Instrument panels

Seats
HVAC systems

Notes: Material requirements to produce 1 unit of the car.

LIST OF UTILITIES
This company utilizes a wide range of utilities, including water, electricity, telephone, and wi-fi.
Up to RM 400 is spent by our business on water bills, up to RM 600 is spent on electricity, up to
RM 150 is spent on telephones, and up to RM 120 is spent on wi-fi.

LIST OF MACHINE & EQUIPMENT

MACHINE/EQUIPMENT QUANTITY
Lathe machine
Radial drill
Cord drills
Pedestal drills
Windshield wiper system

Hydraulic steering
Power windows
Electric hand brakes
Wing mirror adjustments
Presses
Robots
Torque wrenches
Injection molding machines

Extruders
Conveyor belts
CNC machine tools
Casting machines
Self-piercing rivet guns
Punches
Upsetting machines

OPERATION BUDGET

ITEMS FIXED MONTHLY OTHER

EXPENSES (RM) EXPENSES (RM) EXPENSES (RM)
Machine &
Equipment
Rental
Utilities 1,270
TOTAL (RM)
TOTAL COST (RM)
 CHAPTER 3:

FINANCIAL PLANNING
 3.1 FINANCIAL ANALYSIS AUDITED

RATIO 2018 2019 2020 2021 2022 INDUSTR ANALYSIS

Y
AVERAGE
Current ratio 1.14 1.15 0.7 0.92 1.43 <2 Green The current ratio for SKYWAGON
for years 2018, 2019 & 2022 is good
Formula: >1.2
Current asset/ Yellow which is compared to years 2020 &
current liabilities
2021. It shows in the years
<1 Red
LIQUIDITY RATIOS

2018,2019 & 2022 the company has

sufficient current assets to meet our
short-term obligations. In the year
2020 and 2021, we had deficient
performance due to inability to
control our overhead expenses such
as rent and utilities during Movement
Control Order.

Quick ratio 1.0 1.01 0.7 0.76 1.08 >1 The quick ratio for SKYWAGON for
years 2018, 2019 & 2022 is good
Formula :
(Current assets – which is 1, 1.01, and 1.08 compared
inventory) / current
to years 2020 & 2021. It shows in the
liabilities
 years 2018,2019 & 2022 the
company has sufficient current
assets to meet short-term obligations.

Debt ratio 1.06 1.12 2.7 1.9 0.89 1 – 1.5 The debt ratio for SKYWAGON in
2018 and 2019 is good at 1.06 and
Formula : 1.2, indicating that the firm has more
SOLVENCY RATIOS

Total debts/ total debt than assets. In comparison to

assets 2020, which is poor, and moderate
in 2021 and 2022. This is because
the company is at substantial risk of
insolvency, as excessive debt can
result in a huge debt repayment
burden.

Time interest earned 3.8
Formula :
Earnings Before Interest
Taxes/ Interest expenses
4.7 2.0 3.17 3.5 > 2.5 Time Interest Earned for the years
2018, 2019, 2021, and 2022 is quite
strong which is 3.8, 4.7, 3.17 & 3.5
because our company is able to pay
our debts in the period given. For the
year 2020, it is considered bad as it
 is lower than 2.5. This is because our
company is losing money rather than
making money due to covid-19
pandemic.

Inventory Turnover 2.2 2.04 2.04 2.42 5.07 5 – 10 Inventory turnover is quite bad in the
year 2018 as our team just started
Formula :
Cost of goods sold the business and was still unstable in
TURNOVER RATIOS

(COGS)/ Average
achieving sales targets Besides, low
total inventory
inventory turnover in the year 2019 –
2021 is because SKYWAGON
experienced weak sales due to the
COVID-19 epidemic whereas, in the
year 2022, our company’s sales
performance is good.
 Gross profit 67% 71.86% 45% 49% 48% >50 Gross profit margin is quite good in
margin
the first two years compared to the
Formula : next 3 years. Good gross profit
PROFITABILITY RATIOS

Net sales – COGS =

margin in the first two years shows
Gross margin / Net
sales that our team managed to generate
strong costs corresponding to our
cost of goods sold for our production.
This is because, in 2020, 2021, and
2022, SKYWAGON’s sales
performance is unstable causing the
revenue to be declined.
Return on assets 17.65% 20% 3% 12% 12% > 5 - 20 Return on assets is quite good in the
(ROA)
year 2018, 2019, 2021 & 2022
Formula : compared to the year 2020. It shows
Net Income +
that the company managed to use
Interest expense *
(1-tax rate) / the firm’s total resources in
Average total assets
generating profit efficiently. While in
2020, it is bad because our company
is not accruing the expected benefits
or is losing money due to the
COVID-19 pandemic.

BAD
LEGEND
MODERATE
GOOD
 3.2 FINANCIAL ANALYSIS FORECAST

RATIO 2023 2024 2025 INDUSTRY ANALYSIS

AVERAGE
Current ratio 1.14 1.15 1.2 >1.2 <2 The current ratio for SKYWAGON for
years 2023,2024 and 2025 is expected to
Formula:
Current asset/ current increase to 1.14 in the year 2023, 1.15 the
LIQUIDITY RATIOS

liabilities
in year 2024, and 1.2the in the year 2025

Quick ratio 1.0 1.1 1.02 >1 The quick ratio for SKYWAGON for years
2023,2024 and 2025 is expected to
Formula :
(Current assets – inventory) increase which is 1.0, 1.1 and 1.02.
/ current liabilities
 Debt ratio 1.07 1.1 1.12 1 – 1.5 The debt ratio for SKYWAGON for years
2023,2024 and 2025 is expected to
Formula : increase.
SOLVENCY RATIOS

Total debts/ total assets

Time interest earned 4.0 2.5 3.6 > 2.5 The time interest earned for SKYWAGON
for years 2023,2024 and 2025 is expected
Formula : to increase.
Earnings Before Interest
Taxes/ Interest expense

Inventory Turnover 2.2 2.5 2.6 5 – 10 The inventory turnover for SKYWAGON
TURNOVER

for years 2023,2024 and 2025 is expected

RATIOS

Formula :
Cost of goods sold to increase.
(COGS)/ Average total
inventory

Gross profit margin 67% 63% 63% >50 The gross profit margin for SKYWAGON
PROFITABI

for years 2023,2024 and 2025 is expected

Formula :
LITY

Net sales – COGS = Gross to increase.

margin / Net sales
 Return on assets (ROA) 17.67% 17% 15% >5 < 20 The return on assets for SKYWAGON for
years 2023,2024 and 2025 is expected to
RATIOS

Formula:
Net Income + Interest increase.
expense * (1-tax rate) /
Average total assets
 CHAPTER 4:

FACTORS AFFECTING OF
BUSINESS (SWOT)
4.1 SKYWAGON SWOT ANALYSIS
4.1 STRENGTHS

Competent manpower
One of the important strengths of SKYWAGON is competent manpower. Flying car is considered
as the most evolving creation within this generation yet very risky. Thus, automobile dealerships
in SKYWAGON employed the high skilled manpower at our dealerships in both commercial and
technical level in the automotive industry. The acquisition of knowledge, skills, and a few other
qualities are all necessary in hiring competent manpower. Lack of training results in disorganized
work outcomes. Without education, training produces a lack of preparedness in workers and
employees to handle potentially unexpected circumstances, which increases uncontrolled risk. A
properly trained employee can produce safely every day with the theoretical basis from
education. The quality of each manpower is ensured with appropriate proficiency in this field.

Staff Engagement
A productive discussion includes the opinions of more than just one or two team members. To
generate fresh concepts and provide a range of viewpoints on business issues, open team
discussions are crucial. As they consider more varied points of view to arrive at a suitable
conclusion, the team may subsequently develop thorough decision-making skills in which will
help with problem-solving, idea development, and inspiration. Encouraging employee
participation and collaboration through supportive and fair open discussions may increase
employee satisfaction. As each team member contributes their own special skills, perspectives,
and opinions to the project, diversity within a team can be extremely beneficial for any business.
The backgrounds, skill sets, genders, and personalities of team members can vary widely. A
flexible team that solves issues quickly, produces high-quality work, and engages with projects
thoroughly from various perspectives can be formed by incorporating diversity.
4.2 WEAKNESSES

Lack of expertise among employees

SKYWAGON’s company may have a strong competent manpower, however many of them are
lack of expertise. They may be good theoroticallytheoretically, nevertheless, they do not own a
few other qualities to fit in this field specifically. In other words, they may possess the basic
knowledge and skills in automotive industry, but they are not expert in this industry particularly.
For instance, lack of training. Inadequate training results in disorganized work outcomes.
Nonetheless, it appears in accordance with education or in simple words, it comes in pair with
education. This is because, without education, training produces a lack of preparedness in
workers and employees to handle potentially unexpected circumstances, which increases
uncontrolled risk. A properly trained employee can produce safely every day with the theoretical
basis from education. The quality of each worker is ensured with appropriate proficiency in this
field.

Low salaries offered to the workers

Salary is determined in accordance with numerous indicators which include the worker’s level
of education, expertise, talent and far more. As stated before, SKYWAGON’s company has an
average staffs with lack of expertise causing the to perform very poorly and create inattitude
issues. This will immediately make their salary to be low despite having basic skills and
knowledge. Besides, the salary offered to the workers are low is because of our company
provide a better deal for the staffs. To elaborate this further, the workers gain more of the perks
package given by SKYWAGON specifically life insurance, medical insurance, retirement benefits,
and any other privilege.
4.3 OPPORTUNITIES

Collaborate with existing partners

We discover several ways to make our automotive company profitable and collaborating with
existing partners. Opportunities, service requests, quotes, orders, campaigns, accounts,
contacts, projects, and other information can be shared by the jointly partner companies. For
instance, when SKYWAGON company in the collaboration works on an opportunity, it can share
the opportunity and related information with the other partner company, assigning the opportunity
to any employee or group in the other partner company that is a resource in the collaboration. A
contracting party can perceive a summary of all its collaborative projects at any time. The brand
owner can get an overview of every collaboration that partners have made at any moment to
keep track of partner collaborations. By using the appropriate view, such as the All Opportunities
Across Organizations view, the brand owner can also access the possibilities, maintenance
requests, and other data provided in the collaboration.

Demand environmentally friendly products from customer

As an automotive dealership that manufacture luxury cars, we also require different energy from
the usual automobile for our flying cars. Not to mention that we are also contemplating an eco-
friendly energy for our flying cars to lessen the environmental pollution. Hence, all of our aero
mobiles are solar powered in which the solar panels are spread across the ceiling. The use of
solar energy is to reduce the production of carbon emissions. According to the International
Energy Agency (IEA), solar energy is the most cost-effective energy source on the planet.
Therefore, integrating solar cells into automobiles is a very logical next step, but not just to make
electric cars even more accessible and environmentally friendly. The SKYWAGON's solar team
is extremely flexible and is working incredibly hard to get the different components ready for the
market.
4.4 THREATS

Competition from other car companies

Today, people aren't just buying cars. They are seeking answers that take into account various
driving practices and lifestyles. Although self-driving cars are years away, environmentally aware
consumers are considering alternatives like electric cars, and they are starting to expect
assisted-driving features like help with parallel parking or backup alerts. Automakers must focus
on more than just building better cars if they want to remain competitive in the rapidly evolving
automotive industry. SKYWAGON is threatened by the present of existing car companies and
new or future car companies in which will constantly producing high quality and unique features
for their own aero mobiles trademark. SKYWAGON’s team finds it as a major factor that will
cause their sales production decreases at some points.

Sluggish economy
Macroeconomic uncertainty, recession, unemployment, etc. are the economic factors which has
daunted the automobile industry for an extended period. The COVID19 pandemic has caused
severe damage to the automotive industry and SKYWAGON’s company are not excluded. This
sector was severely harmed by border closures and supply disruptions with some nations. Even
though the threats posed by COVID are gradually fading, they are still present, and this
continues to have an impact on the global automotive market. Similarly, despite concerns about
the global economy, an unsettling, uncertain environment could pose a threat to the world's
automotive industry. The cost of aero mobiles financed through mortgages tends to increase with
a rise in the interest rate as we have seen in recent months. As a matter of fact, purchasing
behavior using this form of financing may be severely restricted.
 CHAPTER 5:
BUSINESS AND
CREDITWORTHINESS
ASSESSMENT
5.1 CHARACTER

Borrower character is one of the risk assessment elements that lenders must consider
before approving the loan. In this process, the borrower’s individual character will be analyzed by
a credit manager to lower the risk of late payment or non-payment. Education, family
background, business background, and past credit history are all will be reviewed in this process.
It is a significant step for lenders to learn their borrower’s behavior in making repayment to
ensure the borrowers are capable to meet the loan obligation. Borrower’s past credit history will
play a benchmark for whether the borrower qualifies for the loan. A lender will access their credit
history to determine borrower creditworthiness. To learn about borrower paying patterns, all
credit interactions with past lenders will be examined.

In the Skywagon company case, the company is still new and just operating for the past five
years, thus the credit history cannot be assessed precisely. There will be little to no record of
Skywagon company in the CCRIS and CTOS systems. Thus, the lender cannot examine or
analyze their repayment pattern and it will be riskier for them to take Skywagon as a client. It is
because they can't predict the type of borrower Skywagon will be. However, there is one way for
the lender to access the borrower’s character for a newly established company by looking at its
initial balance asset. From the balance sheet, we can analyze the company’s debt ratio. The
company must keep the ratio between 1-1.5 as it was the average of industry ratio. In 2018 the
debt ratio of the company are still in the average of industry ratio which is 1.06. Later in the year
2019, our debt ratio increase to 1.12 still maintaining in the average range. However, due to the
COVID-19, the debt ratio increased to 2.7 which is alarming for the company. After that, in 2021,
it declined to 1.9 near the average industry ratio. Then, it keeps declining to 0.89 in 2022. In
2023, we predicted the debt ratio will be 1.07 and 1.1 in the following year, 2024. In 2025 the
debt ratio continues in the range of the average industry ratio which is 1.12.

Aside from 2020, the year all industries suffer from Covid 19 effect, the company has shown
they are able to manage its debt properly. The predicted years are also showing good
management of the debt. Thus, it indicates that the Skywagon capable to make repayment on
time.
5.2 CAPACITY

Lenders measure borrower capacity to pay their loans by examining borrowers’ income
against their debts. It is to determine whether the company able to meet current obligations with
its current income. Thus, the borrowers’ current income stability will play an important role in
deciding the company’s repayment ability.

The Skywagon company’s gross profit has performed well considering its first year of
operating in 2018 with RM205,082,950 with an average profit every month is RM17,090,245. In
the next year, the company slightly increased in gross profit with RM229,416,719. Indicate that
the company is able to maintain and expand its business in the first two years at a slow pace.
The difference between the two years is only RM24,333,769. In 2020, Skywagon face a huge
challenge from the Covid 19 impact the company’s profit declined rapidly from RM229,416,719 in
2019 to RM70,291,968 in the current year. However, in 2021, they manage to recover after the
downfall in 2020 with a slight increase in their gross profit, which is RM100,850. After that, in the
year 2022, they can keep the gross profit increased to RM193,700,594. In conclusion, the
company can maintain and increase its profit except for the year which after that they are able to
recover. Showing that they are competent to meet the obligations
5.3 CAPITAL

Lenders also considered funds that can support any possible risk. It is an initiative from the
lender to lessen any risk of late payment or nonpayment from the lender. They will review the
business cash flow as one of the elements of qualification that has to be fulfilled by the borrower
to apply for a loan. The business must have an adequate amount of cash to operate the venture
to be able please the lender.

The capital of Skywagon in the year 2018, we have an amount of cash which is
RM45,030,330. In the next year, 2019, we possessed RM46,501,382 of cash. Later, in 2020 the
amount of cash decreased to RM20,998,868. However, in the year 2021, the cash increased
back to RM30,998,868. For the year 2022, we have RM60,900,000 of cash after being able to
recover of post-Covid 19. Then, in 2023, we own RM45,017,830 and in the following year, we
have RM46,501,382. In 2025, we have RM47,598,868. Meanwhile, the amount of money we
keep in the bank for the year 2018 is RM45,009,810. In the next year, in 2019, we hold
RM45,958,204. After that, in 2020, we have RM30,422,113 amount of money in the bank. Later,
in the year 2021, we own RM40,422,113 following in the year 2022, we possessed
RM55,890,000. Then, in 2023, we have RM44,997,310 and RM45,958,204 in the year 2024. In
the last year, we hold RM46,422,113.

The range of cash amount is between RM30,000,000 to RM61,000,000 which adequate

amount for the business for the bank to back up in case any risk occurs. Same with the amount
in the bank hold, which is in the safe range between RM30,000,000 to 56,000,000. Even in the
event of Covid 19, the cash is not dried up proving that the cash flow of the business is able to
support any unprecedented case.
5.4 CONDITION

The lender must take into their account all the factors that will influence customers in
making a repayment. It is significant to look at into borrower’s financial condition which will
be mirroring the borrower’s ability to pay. Moreover, it is also important to overview the
external factor such as industry trends, the economic condition, and other circumstances. All
these factors will be pestering the loan’s interest rate, loan’s principal amount, and loan’s
intended use. Skywagon’s financial condition has been good from 2018 to 2019. The sales
went up from RM303,842,532 to RM319,664,789. However, it faces obstacles in 2020, when
the Covid 19 pandemic spreading, purchasing a car has become its last choice. People
prioritize needs over wants. Therefore, the sale declines a lot to RM156,310,851. In 2021,
sales slowly recover after being affected by Covid-19 influence with RM205,310,851. After
that in 2022, we managed to record the best sales with RM401,069,076. In the forecasting
year, 2023 to 2025 we predicted the company is in stable financial condition. In 2023, we
predicted the sales will be RM303,796,695 and in the following year, RM307,765,654. Then,
in 2025, we will get RM303,842,532. The sales are maintained between RM300,000,000 to
RM402,000,000 except in the year of Covid 19. From 2018 until 2022 including the
forecasting year 2023 to 2025, the company never experience a loss in their net profit even
in the year of Covid 19 they can gain profit by proper management of the expenses.

In addition, we can examine their ratios, such as their solvency ratio, liquidity ratio,
turnover ratio, and profitability ratio, to evaluate Skywagon's position in the industry in terms
of its financial health. It will provide an illustration of the company's industry performance.
The company can maintain a liquidity ratio within the average industry range from 2018 to
2022, with the exception of 2020 and 2021, when it will be in the recovery phase, and the
ratios will be performing well from 2023 to 2025. After that, the debt ratio and time interest
earned perform differently for the solvency ratio. In 2018 and 2019, debt ratios are in the
best condition compared to the average industry ratio, but after Covid 19 hit, the ratios are
no longer average. In the forecasted years 2023 to 2025, however, the ratio returns to the
range of the average industry ratio, indicating that the company will have excellent debt
management control in the future. In the meantime, time interest earned ratios perform well
in every year except 2020. Moreover, turnover ratios perform poorly during the first four
years but recover in the fifth year. In terms of the profitability ratio, the gross profit margin
performance declines gradually after 2019 but remains close to the industry average. With
the exception of 2020, the return on asset ratios throughout the five years fall within the
average industry range. Both ratios are performing admirably in the upcoming year. For the
first five years, most ratios are performing well, and for the forecasting years, all ratios are
performing exceptionally.

5.5 COLLATERAL

Lenders use collateral as protection or security against any late payment or

nonpayment exposure from the borrower. So, they will not bear any losses from the loan
agreement. Those who pledge their asset as collateral have a better chance to get the loan
approved. The asset pledge usually must be the same worth or higher as the loan amount
agreed. It can be either a tangible asset or an intangible asset. The asset at the time of
repayment will be under the lender’s possession as the right and ownership belong to the
owner. The lender will sell the asset in case nonpayment occurs to pay back the amount
default.

Skywagon is a renowned car company despite being new in the market they manage
to get RM303,842,532 in the first year thanks to a collaboration with other car companies. It
will be reflected in the company trademark value. A trademark is a graphic, symbol, or word
that the respective company registered to protect from any plagiarism. Those who use other
trademarks without permission will be punished according to the law. Skywagon has
registered theirs in 2015 and the value keeps accumulating as the company performs better.
In addition, the company was predicted in the forecast to perform better. Hence, it will
increase the value of the trademark. Moreover, Skywagon also registered its patent for the
flying car invention when it won the award to protect its invention from being copied without
permission. As the flying car has become a hot issue in this century, the value of patents will
increase when people keep curious about it. Furthermore, the only company that succeeds
to produce is Skywagon, thus it will have the entire market.

Skywagon can pledge the intellectual property it possessed as collateral to secure a secured
loan. As the intangible assets have the same worth as the loan. It will give higher chance for
them to pass the loan approval. They must try their best in making repayment to ensure the
ownership of the intellectual property is given back to them.
5.6 DECISION ON THE LOAN AND JUSTIFICATION

DECISION: LOAN APPROVED

JUSTIFICATION:
6.0 CONCLUSION