PROPOSE CAPITAL INVESTMENT FOR PRODUCTION EXPANSION PLAN

A joint venture between Klang Maju (M) Sdn Bhd & Karur Malvi Impex (Pte) Ltd

Factory : 56, Bharathidasan Salai Alangudi, Pudukhotai District Tamilnadu, INDIA Email : karurmalviimpex@yahoo.com

TABLES OF CONTENTS
NO. 1 PARTICULARS SUMMARY OF PROPOSE CAPITAL INVESTMENT 1 Summary costing 1.2. Commercial Aspect of Production Costing APPENDIX (2) FORECAST PRODUCTION VOLUME 500,000 UNITS BOTTLES PER MONTH 2.1. Production costing (raw materials and packaging) 2.2. Gross Return Revenue 2.3. Recommendations/Options APPENDIX (3) BUDGET FOR PUREE STOCK APPENDIX (4) PROCESS FLOWCHARTFOR PROPOSE NEW PRODUCTION PLAN 4.1. List of machineries and new/additional machineries 4.2. Schedule of machines estimate prices APPENDIX APPENDIX (1)

3 4

APPENDIX (5)

EXISTING PRODUCTION CAPACITY OF 150,150 UNITS BOTTLES PER MONTH 5.1. Schedule of costing 100% sugar in formulation. 5.2. Schedule of costing 70% and 30% sucrose under propose new formulation.

APPENDIX 1

SUMMARY OF PROPOSE CAPITAL INVESTMENT

1.) Summary of Financial Projection for Capital Investment 2.) Financial Projection for Production Cash Flow

SUMMARY COSTING FOR NEW CAPITALISATION UNDER EXISTING PRODUCTION CAPACITY AND PROPOSE NEW EXPANSION PLANNING The acquire of capitalization divided to 2 phase :1st Phase Capitalization for existing production 2nd Phase Capitalization for new expansion plan 1ST PHASE : CAPITALIZATION FOR EXISTING PRODUCTION
We have launched our juice products in November 2011. The variety of juices are cashew, tamarind, guava green, guava green and mix fruit. Under this phase, our production capacity able to produce 150,000 unit bottles per month. (Refer to Appendix 5 for detailed production costing). Although our projection planning to expand our production (under 2nd Phase planning), we in opinion that we shall continue our existing production due to the following factors :-

1) At present, our products already in market. Therefore, we must upkeep the demand. 2) The production revenue will cover the monthly overhead costs. 3) Our puree stock should be utilized before expiry. The puree stock in hand as follows :1) 2) 3) 4) 5) Cashew Guava Mango Jackfruit Tamarind 20.30 5.30 1.60 0.30 0.20 mt mt mt mt mt

The capital require for 150,000 units productions (under new formulation 70% sugar : 30% sucrose, [as refer to Appendix (5)] :Particulars RM IRP 1) Production cost 88,299.90 1,147,898.70 2) Sales proceed 115,500.12 1,501,501.56 Gross Profit 27,200.22 353,602.86 Gross Profit margin 23.55 % 23.55% After deduction the others manufacturing cost (including the production cost) the estimate net profit is :No.

Particulars 1) Sales proceed 2) Total costs Est. net profit

No.

RM 115,500.12 111,958.36 3,541.76

IRP 1,501,501.56 1,455,458.68 46,042.88

However, the existing production line need a minor upgrading :Particulars 1) Label shirking machine 2) To repair and modify the porch filling machine Total
No.

RM
5,000.00 5,000.00 10,000.00

IRP
65,000.00 65,000.00 130,000.00

We conclude that under the 1st phase of recapitalization, the investment require : Particulars 1) 1) Projected 3 months production costs 2) 2) Upgrade production line TOTAL
No.

Monthly
88,299.90 10,000.00 98,299.90

Total (RM)
264,899.70 10,000.00 274,899.70

Total (IRP)
3,443,696.10 130,000.00 3,573,696.10