A BUSINESS PROPOSAL ON MEDICAL E-BOOK BY EASY LEARNING SDN BHD

SUBJECT: TECHNOPRENUERSHIP PRGRAMME: MBBS YEAR 1 LECTERURS NAME: CIK NURULIZA BINTI RASLAN

BOARD OF DIRECTORS OF EASY LEARNING SDN BHD MUHAMAD ALEIFF BIN TAJUDDIN MUHAMMAD HIDAYAT BIN AZIZAN AMIR HUSSEIN ABBAS BIN SHAMENAN MUHAMMAD ADAM BIN MD ZAIN MUHAMMAD ALIF SYAKIR BIN ROSLI AHMAD ABDUL HADI BIN KAMAL

STUDENTS NUMBER 57260212151 57260212150 57260212153 57260212142 57260212154 57260212124

TABLE OF CONTENTS NUMBER 1 2 3 4 5 6

DEPARTMENT

CONTENT
EXECUTIVE SUMMARY INTRODUCTION PURPOSE COMPANY BACKGROUND INTRODUCTION ADMINISTRATION

NUMBER OF PAGE
4-5 6 7 8 9 10-20

MARKETING DEPARTMENT

21-26

OPERATION DEPARTMENT

27-35

FINANCIAL DEPARTMENT

36-50

EXECUTIVE SUMMARY Our company is Medical E-book, and we are also providing Scholar articles, journals and reviews (Rental fees for a year), and question bank collection according to each particular subject. Furthermore, we are also providing service such as E-assignment system. This product very useful for medical student and doctor and easy to carry at any place. All material in this disc-base on the best reference books for all medical student, from our professional and specialist recommended, and it is modern and state-of-art technology, where it can be use with laptop or computer. This products are highly secured, so it only can be use with who has password and we are having our own consultant, for customer service in 24hours. All source in this product are original, and get permission from other books company to insert their work in disc, and the customers can be return back if disc have problems to access. Eventhough. it is beneficial to our customers, the company also has some weaknesses such as the price is a little bit expensive when compared to others competitors, which is RM800.00, and the product is still new, thus the customers need to be expose with this product. We are lack of capital to produce in large quantity. This products are targetting students,lecturers,and staffs of health sector around Lembah Klang. Base source from Bidang Keberhasilan Utama Negara (NKRA) on 12 December 2012, Bernama ,total numbers of people stay around Lembah Klang average is 600,000.Which means at least 200 people in 1km per square.We estimate 5,000 medical students study at Lembah Klang. After carrying out a detail survey on the companies who had come out with the same products concept as ours, we had identified one major competitor locally known as Natural Healing Centre. After carrying out a detail survey on the companies who had come out with the same products concept as ours, we had identified one major competitor locally known as Natural Healing Centre. This product is very useful for medical student and doctor. The main advantage of our product is easy to carry at any place,all material in this disc-base on the best reference books for all medical student, from our professional and specialist recommended. Modern and high technology, where it can be use with laptop or

computer.Highly secured, so it only can be use with who has password.We have our own consultant, for customer service in 24hours.All source in this product are original, and get permission from other books company to insert their work in disc.Our company is legal and we have permit.It can be return back if disc have problems to access. This product still new, thus it is easier to penetrate marketand furthermore every year they have new medical student.

INTRODUCTION This company is name as Medic Easy Learning, which the name itself reflect the business overview of our company. It is also reflect our specialities in the medical education and the products that are offered by our company. The main reason this business plan is made because it is use to convince venture capitalists, investors and bankers in order to raise capital and obtain support for the venture. Furthermore, the stakeholders are also require the business plan to have their own overview of this company. This company will be manage by a Chief Executive Officer, with the assist of four manager in their own respective department, which is Marketing, Administration, Finance and Operational Department.The company will be settle at Bandar Permaisuri, Cheras, Kuala Lumpur.

PURPOSE The main reason for preparing the business plan is the opportunity for entrepreneur to assess the business venture objectively, criically and practically. Furthermore, this business plan is use as a guideline for day-to-day management of the business and to be able to distribute business resources more effectively.It is also use to convince venture capitalists, investors and bankers in order to raise capital and obtain support for the venture. The capital that is needed for this company is RM 500,000.00, which the financing is going to be utilized in each of the four respective department, which is Marketing, Administration, Financing and Operational Department. The financing of this company will be handle by the Financing Department. The financing will give benefit to our company in the early stage, which it will be use as rolling capital, and we are forecasting that by 18 month from our beginning of the businesses, we will be able to cover up the capital. The company is also consider to make a loan from the Governments owned company such as 1Malaysia Dana Belia Berhad, which this company is establish to help Malaysians Small Medium Entreprenuer in starting their businesses.

COMPANY BACKGROUND The main product of our company is Medical E-book, and we are also providing Scholar articles, journals and reviews (Rental fees for a year), and question bank collection according to each particular subject. Furthermore, we are also providing service such as E-assignment system. This product very useful for medical student and doctor and easy to carry at any place. All material in this disc-base on the best reference books for all medical student, from our professional and specialist recommended, and it is modern and state-of-art technology,

where it can be use with laptop or computer. This products are highly secured, so it only can be use with who has password and we are having our own consultant, for customer service in 24hours. All source in this product are original, and get permission from other books company to insert their work in disc, and the customers can be return back if disc have problems to access. Eventhough. it is beneficial to our customers, the company also has some weaknesses such as the price is a little bit expensive when compared to others competitors, which is RM800.00, and the product is still new, thus the customers need to be expose with this product. We are lack of capital to produce in large quantity. This products are targetting students,lecturers,and staffs of health sector around Lembah Klang. Base source from Bidang Keberhasilan Utama Negara (NKRA) on 12 December 2012,Bernama ,total numbers of people stay around Lembah Klang average is 600,000.Which means at least 200 people in 1km per square.We estimate 5,000 medical students study at Lembah Klang.

THE INDUSTRY The 12 National Key Economic Areas (NKEAs) are at the core of the ETP. A NKEA is defined as a driver of economic activity that has the potential to directly and materially contribute a quantifiable amount of economic growth to the Malaysian economy. The education and health sector are two of the main NKEAs objectives, thus our company are targetting to gain profit and at the same time contributing towards our nation economic growth, thus we are expecting the support from the government and private sectors to help establish the company.

ADMINISTRATION Administration Chart

Managers Role a) General Manager General managers are involved in various activities that include managing all the aspects of various business operations of the firm. Be it the human resources, administrative services, operations, accounts and even the policies and procedures, general managers are directly or indirectly involved in all these aspects of the work. Thus, the duties and responsibilities of the general manager in this company are: A general manager is expected to look into the matters related to the human resources. All the matters related to organizational training, the general manager in consultation with the administration manager looks after recruitment and selection of candidates. While the administration/human resource manager carries out all the tasks related to recruitment, the general manager ensures that quality organizational training is given to the trainees. Precisely said, general managers look after the training needs of the employees. The responsibility of a general manager is to actively participate in the feedback session and performance evaluation of the employees. A general manager ensures that matters related to finance and transactions are within his supervision. General manager manages and utilizes the funds and expenditures of the various operations carried out by the firm. The general manager is expected to understand the financial tools and resource available to the firm and chalk out a plan that effectively meets the requirements of the projects. One of the key duties of a general manager is that he is expected to act as liaison between the management and the employees/staff.

General manager also monitors and tracks the performance and achievements of the employees as well of the entire company.

The general manager also directs people to various goals and targets.

b) Administration/Human Resource Manager An admin manager, who manages every activity pertaining to proper working of the organization, heads the administrative department. He also undertakes the responsibility of coordinating other departments, clients, and third parties. An admin manager must possess administrative qualities, which are utmost necessary for uplifting the standard of the company. Thus, the jobs and responsibilities of an admin manager are: An admin manager extends administrative support to departments dealing with the task of editing, typing, mailing, and filing. He keeps an account of the documentation details and every kind of information relating to products, sales, support, and cost of the company. He must possess good observation power. He monitors the work of back office personnel and supervises the performance of his assistants, clerks, coders, typists, and other members of the organization. He is responsible for scheduling meetings, checking product quality, and deadlines of his subordinates. He is answerable to inter-office queries and ensures that there is effective communication of operational data to the management section. He provides support to other departments of the organization and manages projects of the company. He has the responsibility of reviewing and managing office budget and expenditure. Admin manager is also responsible for training his subordinates and evaluating their

performance as they participate in growth of the organization Human resource management refers to the coherent and strategic approach to understand the needs of the people working in a firm. Undoubtedly, the growth of a firm is totally based on the individual and the collective efforts of its workers. This field evolved as a serious discipline in the business world when it was understood that employees are not mere business units, like machines and automobiles. Instead, they are a valuable human manpower and have personal, emotional, and financial needs. The dynamics of business have become more and more challenging in today's global economy. Employee retention is a crucial factor and firms hire such managers for this vital task. Also, the function of such managers is to work in tandem with all the departments of a firm in order to monitor and decipher the needs of the employees. The human resource department acts as a bridge between the CEO or the Managing Director of the company and the various branches, like executive, administrative, project management teams, and operations management. Following are the major functions and duties of a Human Resource Manager:

Resource hunting and recruitment. Coaching the employees. Motivation and performance appraisal. Salary and payroll negotiations. Employee satisfactions and feedback.

c) Finance Manager There are a large number of specific job titles for different types of finance managers. In fact, the term, 'financial manager' encompasses various job titles like 'controllers', 'financial bank managers', 'cash managers', 'chief financial officers', 'treasurers', and 'credit managers'. Depending on the type of designation, duties and tasks of finance managers vary significantly. In general, duties and tasks of financial managers are as follows. They prepare financial reports, balance sheets and store account related data carefully, for income tax purposes. They also look after investment areas that are profitable for the firm or an individual and advise on the same. Financial managers who work as financial risk managers work on risk management issues. They help to maximize profits, by finding out risk factors. Financial controllers ensure that the long-term objectives of financial growth of the firm are met adequately. By directing and implementing financial strategies, financial managers ensure that all financial goals of the firm are met adequately.

d) Operation Manager An operations manager is responsible for coordinating production activities of the company and providing the best service to clients to maximize company revenues and profits. Which is the reason why companies choose to recruit a well-qualified and experienced person for this post. He has to plan effective strategies to ensure the profit and financial well being of his company. He works closely with the other departments such as production, human resources, finance, accounts, marketing, and plans the long-term as well as the short-term goals of the organization. Additionally, he also discusses each and every aspect of the development plans with the top-level management of the company. Thus, the presence of leadership qualities and effective communication skills are a must in any person aspiring to work in this area. Here is the summary of work that the operation manager is involved in. Coordination happens to be one of the foremost duties. He is expected to liaison with different departments within the company and co-ordinate they are functioning. He is responsible for budgeting, which involves making appropriate monetary allocations that maximize outputs along with ensuring profits. An operations manager also needs to proficiently maintain a balance between the quantity of work and the quality of the output. Any discord in this area can lead to problems in the company. Employee safety is another vital responsibility of the operations manager. He needs to ensure communication within separate departments of the company so that the flow of work does not get interrupted. The operations manager primarily supervises inventory management and quality control. He may also have to evaluate employee performance and look into hiring new people.

e) Marketing Manager Marketing is a very important concept that has to be followed by manufacturing companies in order to let potential consumers know about their products and services. Marketing is a field that exploited by every company; be it from any industry such as manufacturing, software development, medical, educational, etc. Since marketing is a wide scenario to be considered and executed, there is a requirement for the process to be carried out by responsible and talented professionals. And these professionals are known as sales and marketing managers. They carry out a large number of tasks and projects, which depend on the company they are employed in and the brand or product they have to market. The job descriptions for the marketing manager are: Their primary responsibility is to formulate the contents of marketing mix and put forth an effective marketing plan. He has to be in touch with the management to develop marketing strategies for any products the company is going to launch. He also has to keep an eye on the current state of the market and the details of the competitors in the same class. Before the finalization of the marketing plan, he has to conduct an exhaustive market research that will really help in the advertising and promotional campaigns of the product. A marketing manager supervises the daily work of sales, marketing, advertising, and product promotion executives. He has evaluated the plans and strategies on the basis of Return On Investment (ROI). He also has to discuss with the company management regarding the pricing strategies and budget of the marketing campaigns. He has to oversee all components of the product life cycle management. Researching on methods to improve or meliorate the quality and efficiency of current products and services of the company is also one of his major job duties.

ADMINISTRATION DEPARTMENT MISSION STATEMENT Providing excellent service with a positive attitude. DEPARTMENT DESCRIPTION AND PURPOSE The Administration Department provides administrative support to the Board of Directors, Board Committees and all departments, and undertakes overall general management of the company. Core functions include: Accounting and budgeting. Human resources. Investments. Public information Risk management. Safety and training. General administration and representation at various regulatory agencies.

STAFFING Three authorized positions in this department headed by the administration manager. GOALS AND OBJECTIVES Support Chief Executive Officers activities and provide information on current issues to the Board. Manage department expenditures within budget. Ensure the company is compliance with all regulatory safety and training. Issue accurate financial reports on a timely basis. Update and maintain the companys policies and standard procedures. Provide excellent internal and external customer service.

DIRECT LABOUR PLANNING SCHEDULE

No.

Position

1. 2. 3.

Chief Executive Officer Administration Manager Administration Staff (Clerk) TOTAL

No. of Staff Required 1 1 1

Salary / Month (RM) 7,000.00 5,000.00 1,200.00

EPF (RM) 13% 910.00 650.00 156.00

SOCSO (RM) 2% 140.00 100.00 24.00

Total (RM) 8,050.00 5,750.00 1,380.00 15,180.00

Table of Rumenuration No. Position Salary / Month (RM) 7,000.00 EPF (RM) 13% 910.00 SOCSO (RM) 2% 140.00 Total (RM) 8,050.00

1.

2. 3. 4. 5. Total

Chief Executive Officer Administration Manager Marketing Manager Operating Manager Financial Manager

5,000.00 5,000.00 5,000.00 5,000.00

650.00 650.00 650.00 650.00

100.00 100.00 100.00 100.00

5,750.00 5,750.00 5,750.00 5,750.00 31,050.00

PROJECTED ADMINISTRATIVE EXPENDITURE ADMINISTRATIVE EXPENDITURE Fixed Assets Land and Building Electronic Devices RM 250000 7000

Working Capital Salary (EPF, SOCSO, etc.) Office Maintenance 15,180.00 3,000.00

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licenses Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL 25000.00 350.00 302,530.00 2000.00

Marketing

Definition of marketing

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that might satisfy individual and organizational objectives by Griffin/Pustay.Marketing is defined as the activities that are carried out systematically to encourage and increase sales of products/services as long as the activities are in line with religious and ethical practices Definition of market A market is a physical place where buyers and sellers exchange goods and services. Any entity that has the purchasing power to acquire goods and services to fulfill its needs and wants a)Market segmentation. Segmentation Demographic Variables/Bases Their age around 19 to 30,especially medical student including male and female. Their maximum pocket money RM 1000 and open to all race. Educational student, also know how to use technology internet and then like to use many source to make reference and their hobby is learning and reading and thus dont have any problems for the high price.

Psychographic

. b)Market Share Market size around Lembah Klang,Selangor. Market size,around Lembah Klang base source from Bidang Keberhasilan Utama Negara (NKRA) on 12December 2012,Bernama ,total numbers of people stay around Lembah Klang average is 600,000.Which means at least 200 people in 1km per square.We estimate 5,000 medical students study at Lembah Klang.

Market Share

Percentage before enter market sale:

Micron Medical Resources (M3) 20%

Percentage before enter market sale

0% 0%

Kamal bookstore 80%

Percentage during enter market sale:

Percentage During enter market sale

Easy learning company 10% 0%

Micron Medical Resources (M3) 15% Kamal bookstore 75%

Total target market:

Name of Company Kamal Bookstore Micron Medical Resource Easy Learning b) Sales Forecast Month January February March April May June July August September October November December Total c) Marketing Budget

% during competition x 5,000 medical student 75% x 5,000 15% x 5,000 10% x 5,000

Total target market 3,750 750 500

Units 0 300 300 300 300 300 300 300 300 300 300 300 3,600

Sales (RM) 0 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 2,880,000

Machine printer Pamphlets and brochures (Advertising) Commission Salary, EPF & SOCSO : 1)clerk 2)assistant marketing Manager Other Expenditure Media Advertisment Deposit(rent,utilities,etc) Business registration and license Insurance&road tax for motor vechile Total each marketing expenditure Total

Fixed Assets Expenses (RM) 11,000.00

Monthly Expenses (RM) 5,000.00

Other Expenses (RM)

Preoperation (RM)

22,770.00

2,000.00 8,000.00 -

11,000.00 35,770.00 2,000.00

48,770.00

Strength Weakness This product very useful for medical Price is expensive

student and doctor Easy to carry at any place

Product is still new, thus customer need to be exposed with this product. All material in this disc-base on the best Company still new, thus it is harder to reference books for all medical student, gain customers trust. from our professional and specialist recommended. Modern and high technology, where it Lack of agent to promote this product. can be use with laptop or computer. Highly secured, so it only can be use with Lack of money to produce, in high who has password. quantity. We have our own consultant, for customer service in 24hours. All source in this product are original, and get permission from other books company to insert their work in disc. Our company is legal and we have permit. Can be return back if disc have problems to access.

Opportunities Threats This product still new, thus it is easier to New products offering the similar service penetrate market or product will emerge. Every year they have new medical student

Promotion

We will concentrate on mass advertising in order to promote our product. Include our agency in local print advertising like Metro, Berita Harian, and New Straits Times as well as magazines like HealthToday, Readers Digest. This will further increase the customers knowledge about our products and the benefits. Set up a website and a FB page. As people nowadays are attached to technology, it will be an advantage to reach them by this way. Advertise our products in TV3 and RTM in order to create name recognition and attract potential buyers.

Besides mass advertising, there are other several steps that we will take in order to ensure an effective and adequate promotion for our product, such as: Place Our company specialized to manufacture disc with own secure system is located in Damansara Perdana,Selangor as the area is well populated and the transport system is good. The product will be distributed around the country especially through IPTA and IPTS around Malaysia. Potential customers For market segmentation, we are focusing on the medical students studying in Malaysia, primarily. If, we have the chances to broaden up our company, simultaneously our product and services, we would like to advertise and sell our products to the medical students around the world. Competitor After carrying out a detail survey on the companies who had come out with the same products concept as ours, we had identified one major competitor locally known as Natural Healing Centre. The address of this company is as follow: Syarikat Kamal Address: Jalan Pahang, 50300 Kuala Lumpur, Federal Territory of Kuala Lumpur Involve in a road show around the country, that organised from health and society government department and NGO in order to reach. Organised a special launch day to celebrate our agencys opening. Door gifts containing 1 disc with stethoscope. Distribution of pamphlets and brochure around medical university areas. Open small booth in every medical school around Malaysia, twice a year

Micron Medical Resource (Medical software and supplies) Address: Pulau Pinang, 11700 Timur Laut, Pulau Pinang.

Products Medical E-book E Educational system.

Price For each item of our product,we have made a conclusion about our price. Each product, price is RM800.00.

OPERATION MANAGEMENT Operations management can be defined as the process of marshalling business input to transform them into output in the form of product or services. Operations management is the business function that plans, coordinates and control the resources needed to produce a companys products and services. (Reid and Sanders) Operation is one of an important function in a business organization including our company. Managing operations is crucial to make sure that the business is able to produce product or deliver services according to the specification, quality and time specified by our customer. In our company, there are 12 major components in the operations plan which is Process Planning Operations Layout Production Planning Material Planning Machine and Equipment Planning Manpower Planning Overheads Requirement Location Plan Business and Operations Hours License, Permits and Regulations Required Operations Budget Implementation Schedule

Meeting with medical book company to get their permission and tie a deal

PROCESS PLANNING

Discuss about content to be delivered and customer approach method

Consultation from web designer,server engineer, and DVD supplier

Further discuss about sharing of resources to achieve desired service

Work on the server, DVD, and website design

Implementation of books content into digital web servers and DVD

Website is ready to provide service desired by the company

DVD is ready to be implemented when in demand

PRODUCTION PLANNING

Average sales forecast per month = RM 240,000.00 Price per unit = RM 800.00 Number of output per month = RM240000/RM800 = 300 CD set Number of working days per month = 24 days The amount of output to be produced per day is: = 300 units/ 20 days = 15 CD set per day

A for our web-based services, the number of output per day is not required as the website is readily available as the web programming is done. However, to remain relevant for our customer, the content need to be updated regularly

MATERIAL PLANNING

RAW MATERIALS REQUIRED AND ESTIMATED QUANTITY FOR A SET OF PRODUCT

PRODUCT NO. 01 02 03 04

MATERIAL Rewritable DVD Plastic DVD case DVD Label paper BOX

SPECIFICATION 4GB of space Can fit DVD Glossy Paper

QUANTITY 30 30 30 1

MATERIAL Rewritable DVD Plastic DVD case DVD Label paper BOX 2

PRICE PER UNIT (RM) 60 21 15 1

TOTAL PRICE (RM)

0.7 0.5 1

TOTAL PRICE PER UNIT = RM 97

TOTAL PRODUCT COST PER MONTH = RM 97 x 300 = RM 29100

TOTAL PRICE PER UNIT INCLUDING ROYALTY = RM 97 + RM 403 = RM 500

TOTAL PRODUCT COST PER MONTH INCLUDING ROYALTY = RM 500 x 300 = RM150000

MACHINE AND EQUIPMENT

NO 1 2 3 Computer Printer

MACHINE

QTY. 3 1 1

PRICE/UNIT(RM) 3000 400 200

TOTAL PRICE(RM) 9000 400 200 9800

DVD burner

MANPOWER PLANNING

WEB-BASED SERVICE

Estimated time needed to program desired websites = 50 hours Work Capacity per day = 6 hours 1 worker can work 5 hours 1 day Day of work needed = 50/6 = 8.333 hours Workers needed = 8.333/5 = 1.666666 =2

DVD PRODUCTION

For DVD production, since the working hour needed is too little to hire a worker, programmer is tasked to produce DVD according to demand. Salary allocation is based on number of dvd produced.

No 1 2 3

Position Operation M. Programmer As. Program. DVD writer

No required 1 1 1 1

Salary/month (RM) 5000 3000 2500 2x300=600

EPF(RM) 13% 650 390 325

Socso(RM) 2% 100 60 50

Total (RM) 5750 3459 2875 600 12684

LOCATION PLAN

BUSINESS AND OPERATION HOURS

Business Hours Weekdays 8.00AM to 12.30PM and 2.30PM to 5.00PM Friday 8.00AM to 12.00PM and 3.00PM to 5.00PM

Operation Hours Weekdays 8.00AM to 12.30PM and 2.30PM to 5.00PM Friday 8.00AM to 12.00PM and 3.00PM to 5.00PM

OPERATIONS BUDGET

Item Machine And Equipment Utilities Wages + EPF + SOCSO Software Other Expenses

Fixed Asset RM 9800

Monthly Expenses

Other Expenses

RM 150000 RM 12684 RM500 2000

RM 10300

RM 192684

RM 2000

TOTAL OPERATIONAL BUDGET = RM 174984

IMPLEMENTATION SCHEDULE

Activities Incorporation of business Dealing With Partners Application for permits and license Searching for business premise Renovation of premise Procurement of machines and raw material Recruitment of labours

Deadlines Jan Mac 2013 Feb April Jan April 2013 Feb Mac 2013 April 2009 April June 2013 June 2013

Durations 3 months 4 months 4 months 3 months 1 month 3 months 1 month

Financial Plan

ADMINISTRATIVE EXPENDITURE Fixed Assets RM Land & Building Electronic Devices 250,000 7,000

Working Capital Salary, EPF, SOCSO Office Maintenance 15,180 3,000

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL

2,000.00

25,000 350 302,530

MARKETING EXPENDITURE Fixed Assets Electronic Devices & Machineries RM 11,000

Working Capital Salaries, EPF & SOCSO Pamphlets & Brochures 22,770 5,000

Media Advetrisement

8,000

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL -

2,000.00

48,770

OPERATIONS EXPENDITURE Fixed Assets Electronic Devices Softwares RM 9,800 500

Working Capital Raw Materials & Packaging Carriage Inward & Duty Salaries, EPF & SOCSO 150,000 12,684

Other Expenditure Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL -

2,000.00

174,984

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Year 1 ToTal Year 2 Total Year 3

SALES PROJECTION 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 2,880,000 3,744,000 4,320,000

PURCHASE PROJECTION Month 1 150,000 Month 2 150,000 Month 3 150,000 Month 4 150,000 Month 5 150,000 Month 6 150,000 Month 7 150,000 Month 8 150,000 Month 9 150,000 Month 10 150,000 Month 11 150,000 Month 12 150,000 Total Year 1 1,800,000 ToTal Year 2 2,160,000 Total Year 3 2,340,000

CASH COLLECTIONS FOR SALES In the month of sale 100% 1 month after sale 2 months after sale Total 100%

CASH PAYMENTS FOR PURCHASES In the month of purchase 100% 1 month after purchase 2 months after purchase Total 100%

FIXED ASSETS Electronic Devices Electronic Devices & Machineries -

Econ. Life (yrs) 5 5 5 5 5 5

FIXED ASSETS

Econ. Life (yrs)

Electronic Devices Softwares

5 5 5 5 5 5

DEPRECIATION METHOD (1=straight line, 2=declining balance) INCREASE IN WORKING CAPITAL (%) Year 2 30% Year 3 35%

BUSINESS LEGAL ENTITY

1 = Private Limited Cpmpany (Sdn. Bhd.) 2 = Partnership 3 = Sole Proprietorship

NATURE OF BUSINESS
1 = Manufacturing 2 = Trading 3 = Service

LOAN (if required) Interest rate Loan duration Interest payment method*
* Method: 1 = flat rate 2 = annual rest

5% 5 1

HIRE-PURCHASE (if required) Interest rate Hire-purchase duration 5% 5

MARKETING BUDGET
Particulars F.Assets Monthly Exp. Others Total

Fixed Assets Electronic Devices & Machineries 11,000 Working Capital Salaries, EPF & SOCSO Pamphlets & Brochures Media Advetrisement 22,770 5,000 8,000 22,770 5,000 8,000 11,000 -

Pre-Operations & Other Expenditure Other Expenditure 2,000 11,000 35,770 2,000 46,770

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

OPERATIONS BUDGET
Particulars F.Assets Monthly Exp. Others Total

Fixed Assets Electronic Devices Softwares 9800 500 9,800 500 Working Capital Raw Materials & Packaging Carriage Inward & Duty Salaries, EPF & SOCSO 150,000 12,684 Pre-Operations & Other Expenditure Other Expenditure 2,000 10,300 162,684 2,000 172,984 150,000 12,684 -

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

ADMINISTRATIVE BUDGET

Particulars Fixed Assets Land & Building Electronic Devices

F.Assets

Monthly Exp.

Others

Total

250,000 7,000 -

250,000 7,000 -

Working Capital Salary, EPF, SOCSO Office Maintenance 15,180 3,000 Pre-Operations & Other Expenditure Other Expenditure 2,000 25,000 350 257,000 18,180 27,350 25,000 350 300,530 15,180 3,000 -

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

DEPRECIATION SCHEDULES

Fixed Asset Cost (RM) Method Economic Life (yrs)

Year Annual Depreciation

Electronic Devices 7,000 Straight Line 5

Accumulated Depreciation Book Value

1 1,400

1,400

7,000 5,600

2 3 4 5 6 7 8 9 10

1,400 1,400 1,400 1,400 0 0 0 0 0

2,800 4,200 5,600 7,000 0 0 0 0 0

4,200 2,800 1,400 -

Fixed Asset Cost (RM) Method Economic Life (yrs)

Year Annual Depreciation

Electronic Devices & Machineries 11,000 Straight Line 5

Accumulated Depreciation Book Value

1 2 3 4 5 6 7 8 9 10 2,200 2,200 2,200 2,200 2,200 0 0 0 0 0

2,200 4,400 6,600 8,800 11,000 0 0 0 0 0

11,000 8,800 6,600 4,400 2,200 -

Fixed Asset Cost (RM) Method Economic Life (yrs)

Year Annual Depreciation

Electronic Devices 9,800 Straight Line 5

Accumulated Depreciation Book Value

1 2 3 4 5 6 7 8 9 10 1,960 1,960 1,960 1,960 1,960 0 0 0 0 0

1,960 3,920 5,880 7,840 9,800 0 0 0 0 0

9,800 7,840 5,880 3,920 1,960 -

Fixed Asset Cost (RM) Method Economic Life (yrs)

Year Annual Depreciation

Softwares 500 Straight Line 5

Accumulated Depreciation Book Value

1 2 3 4 5 6 7 8 9 10 100 100 100 100 100 0 0 0 0 0

100 200 300 400 500 0 0 0 0 0

500 400 300 200 100 -

LOAN REPAYMENT SCHEDULE

Amount Interest Rate Duration (yrs) 550,612 5% 5 Kadar tetap

Method

Year

Principal

Interest

Total Payment

Principal Balance

1 2 3 4 5 6 7 8 9 10 110,122 110,122 110,122 110,122 110,122 0 0 0 0 0

27,531 27,531 27,531 27,531 27,531 0 0 0 0 0 137,653 137,653 137,653 137,653 137,653 -

550,612 440,490 330,367 220,245 110,122 -

Cash Flow Prow Forma Statement

PRODUCTION COST PRO-FORMA STATEMENT

Year 1 Raw Materials Opening Stock Current Year Purchases Ending Stock Raw Materials Used Carriage Inward Salaries, EPF & SOCSO Factory Overhead Depreciation of Fixed assets (Operations) Year 2 Year 3

0 1,800,000 1,800,000 1,800,000 152,208

2,160,000 2,160,000 2,160,000 197,870

2,340,000 2,340,000 2,340,000 267,125

2,060

2,060

2,060

Total Factory Overhead Production Cost

2,060 1,954,268

2,060 2,359,930

2,060 2,609,185

PRO-FORMA INCOME STATEMENT

Year 1 2,880,000 Year 2 3,744,000 Year 3 4,320,000

Sales Less: Cost of Sales Opening Stock of Finished Goods Production Cost less: Ending Stock of Finished Goods

1,954,268

2,359,930

2,609,185

0 1,954,268 Gross Profit Less: Enpenditure Administrative Expenditure Marketing Expenditure Other Expenditure Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Interest on Hire-Purchase Interest on Loan Depreciation of Fixed Assets Total Expenditure Net Profit Before Tax 27,531 3,600 684,881 240,851 218,160 429,240 6,000 350 925,732

0 2,359,930 1,384,070

0 2,609,185 1,710,815

283,608 558,012 7,800

382,871 753,316 10,530

27,531 3,600 880,551 503,519

27,531 3,600 1,177,848 532,967

Tax Net Profit After Tax Accumulated Net Profit

0 240,851 240,851

0 503,519 744,370

0 532,967 1,277,338

PRO-FORMA BALANCE SHEET

Year 1 ASSETS Fixed Assets (Book Value) Land & Building Electronic Devices Year 2 Year 3

250,000 5,600

250,000 4,200

250,000 2,800

Electronic Devices & Machineries

8,800

6,600

4,400

Electronic Devices Softwares

7,840 400

5,880 300

3,920 200

272,640 Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance

266,980

261,320

412,001 412,001

811,058 811,058 25,000 1,103,038

1,239,563 1,239,563 25,000 1,525,883

Other Assets Deposit TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES

25,000 709,641

28,300 240,851 269,151 440,490 440,490

28,300 744,370 772,670 330,367 330,367

28,300 1,277,338 1,305,638 220,245 220,245

709,641

1,103,038

1,525,883

FINANCIAL PERFORMANCE
Year 1 PROFITABILITY Sales Gross Profit Profit Before Tax Profit After Tax Accumulated Profit LIQUIDITY Total Cash Inflow Total Cash Outflow Surplus (Deficit) Accumulated Cash SAFETY Owners' Equity Fixed Assets Current Assets Long Term Liabilities Current Liabilities FINANCIAL RATIOS Profitability Return on Sales Return on Equity Return on Investment Liquidity Current Ratio Quick Ratio (Acid Test) Safety Debt to Equity Ratio BREAK-EVEN ANALYSIS Break-Even Point (Sales) Break-Even Point (%) 2,880,000 925,732 240,851 240,851 240,851 Year 2 3,744,000 1,384,070 503,519 503,519 744,370 Year 3 4,320,000 1,710,815 532,967 532,967 1,277,338

3,441,612 3,029,611 412,001 412,001

3,744,000 3,344,944 399,057 811,058

4,320,000 3,891,495 428,505 1,239,563

269,151 272,640 412,001 440,490 0

772,670 266,980 811,058 330,367 0

1,305,638 261,320 1,239,563 220,245 0

8% 89% 34% #DIV/0! #DIV/0!

13% 65% 46% #DIV/0! #DIV/0!

12% 41% 35% #DIV/0! #DIV/0!

1.6

0.4

0.2

2,113,738 73%

2,362,904 63%

2,949,259 68%