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BUSINESS PLAN

FINANCIAL

PLAN

For Small & Medium Businesse

2008 ISMAIL AB.WAHAB, MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT CENTRE (MEDEC), UNIVERSITI TEKNOLOGI MA

PLAN

all & Medium Businesses

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FINANCIAL PLAN

Complimentary
Edition

FOR SMALL AND MEDIUM BUSINESSES

2009 Ismail Ab.Wahab, Malaysian Entrepreneurship Development Centre (MEDEC), Universiti Teknologi MARA

Select Language/Pilih Bahasa

Name of Business/Company

USER'S GUIDE

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2012

FORECASTING

Form of Business

Capital Expenditure Projections


Pre-Operating and Working Capital Projections

English

Private Limited Company

Sales and Purchase Projections

Malay

Sole-Proprietorship/Others

Forecasted Project Cost and Financing

SUMMARY AND SCHEDULES


Planning Period

Nature of Business

3 Years

Manufacturing

5 Years

Trading/Distribution
Service

Start Year of Projection

Total Project Cost


Sources of Financing
Monthly Loan Payment

Start Month of Projection


January
February
March
April
May
June
BRIEF REPORTS
July
August
Cash Balance
September
October
Income
November
Total
Assets
& Liabilities
December

Project Cost and Sources of Finance Summary


Fixed Assets and Depreciation Schedules
Loan Amortization Schedule

FINANCIAL REPORTS
Pro-forma Cash Flow Statement
Pro-forma Income Statement
Pro-forma Balance Sheet
Financial Performance

Time to Break-Even
Paybak Period for Start-Up Fund
Internal Rate of Return

Monthly Hire-Purchase Payment

Total Owners' Equity

ANCIAL PLAN

aysian Entrepreneurship Development Centre (MEDEC), Universiti Teknologi MARA

USER'S GUIDE
FORECASTING
Capital Expenditure Projections
Pre-Operating and Working Capital Projections
Sales and Purchase Projections
Forecasted Project Cost and Financing

SUMMARY AND SCHEDULES


Project Cost and Sources of Finance Summary
Fixed Assets and Depreciation Schedules
Loan Amortization Schedule

FINANCIAL REPORTS
Pro-forma Cash Flow Statement
Pro-forma Income Statement
Pro-forma Balance Sheet
Financial Performance

BRIEF REPORTS
Time to Break-Even
Paybak Period for Start-Up Fund
Internal Rate of Return

Complimentary
Edition

CAPITAL EXPENDITURE PROJECTI


Anggaran Perbelanjaan Aset Tetap

faiz arif resources


Capital Expenditure
Types of Fixed Assets

Estimated Cost (RM)

Administrative/Organisation
Land & Building
computer

3,000

Sales/Marketing
signboard

5,000

Operations/Technical
washing machine

12,000

Total

20,000
Depreciation method
Straight line

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2009 Ismail Ab.Wa

URE PROJECTION

aan Aset Tetap

Estimated Economic Life


(years)

6
5
5
5
8
5
5
5
5
5
5
5

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2009 Ismail Ab.Wahab MEDEC UiTM

PRE-OPERATING & WORKING CAPIT

Complimentary
Edition

Pra-Operasi & Modal Ker

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Pre-Operating & Working Capital Projections
Pre-Operating & Incorporation Costs (one-off)
Development cost
Business incorporation
Deposit (rent, utilities, etc.)
Other pre-operating & incorporation costs
Sales & Marketing Costs (monthly)
Salaries, Wages, EPF & SOCSO
adversiting

General & Administrative Costs (monthly)


rental shop
Salaries, Wages, EPF & SOCSO

Operations & Technical Costs (monthly)


Purchase of Raw Materials/Goods
Carriage Inwards
Salaries, Wages, EPF & SOCSO

Other Expenditure (annually)


others

Total Pre-Operations & Working Capital Expenditure

Annual Increase in Working Capital (if any)


Year 2
Year 3

Tax Rates
Year 1
Year 2
Year 3

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2009 Ismail Ab.Wahab MEDEC

RKING CAPITAL

asi & Modal Kerja

RM
1,000
70
5,000
1,000
3,000
200

3,000
2,000

6,000
5,000

1,000

27,270

10%
10%
0%
0%

25%
25%
25%
25%
25%
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2009 Ismail Ab.Wahab MEDEC UiTM

SALES & PURCHASES

Complimentary
Edition

Jualan & Bellian

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Sales & Purchase Projections
Sales Projections

RM

January
2013
February
2013
March
2013
April
2013
May
2013
June
2013
July
2013
August
2013
September
2013
October
2013
November
2013
December
2013
Total 2013
Total 2014
Total 2015

Purchase Projections
20,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
350,000
380,000
400,000

Sales Collections
In the month of sales
One month after sales
Two months after sales
Ending Inventory of Raw Materials

End of 2013
End of 2014

January
2013
February
2013
March
2013
April
2013
May
2013
June
2013
July
2013
August
2013
September 2013
October
2013
November
2013
December
2013
Total 2013
Total 2014
Total 2015

Purchase Payments
100%

0%
0%

In the month of purchase


One month after purchase
Two months after purchase

RM

Ending Inventory of Finished Goods

5,000
5,000

End of 2013
End of 2014

End of 2015

Fi
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Pl
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6,000

End of 2015

2009 Ismail Ab.Wahab ME

RM
6,000
6,000
5,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
71,000
150,000
170,000

ts
100%

0%
0%
RM
3,000
5,000

6,000

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2009 Ismail Ab.Wahab MEDEC UiTM

Complimentary
Edition

PROJECT IMPLEMENTATION
COST
Kos Pelaksanaan Projek

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Project Implementation Cost
Capital Expenditure

Cost

Land & Building

Sources of Financing
0 Cash

computer

3,000 Cash

0 Cash

0 Cash

0 Cash

signboard

5,000 Cash

0 Cash

0 Cash

0 Cash

washing machine

12,000 Hire-purchase

0 Cash

0 Cash

0 Cash

Working Capital

months

Sales & Marketing Costs (monthly)


General & Administrative Costs (monthly)
Operations & Technical Costs (monthly)
Pre-Operating & Incorporation Costs (one-off)

9,600 Cash
15,000 Cash
33,000 Cash
7,070 Cash

Other Expenditure (annually)


Provision for Contingencies
TOTAL

1,000 Cash
10%

8,467 Cash
94,137
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2009 Ismail Ab.Wahab MEDEC UiTM

Complimentary
Edition

faiz arif resources

SOURCES
OF PROJECT FINANCING
Sumber Pembiayaan Projek

Sources of Project Financing


Capital Expenditure
Land & Building
computer

Own Contributions
Existing F. Assets
Cash

Cost
0
3,000

3,000

signboard

5,000

5,000

0
washing machine

Loan

12,000

Working Capital
Sales & Marketing Costs (monthly)

9,600

9,600

General & Administrative Costs (monthly)

15,000

15,000

Operations & Technical Costs (monthly)

33,000

33,000

Pre-Operating & Incorporation Costs (one-off)

7,070

7,070

Other Expenditure (annually)

1,000

1,000

Provision for Contingencies

8,467

8,467

94,137

82,137

TOTAL

Proposed Terms of Loan (if required)

Interest rate
Loan tenure (years)

5%
8

Proposed Terms of Hire-Purchase (if required)

Interest rate
Tenure (years)

5%
9
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er

2009 Ismail Ab.Wahab

Hire-Purchase

12,000

12,000

2009 Ismail Ab.Wahab MEDEC UiTM

LOAN AMORTIZATION & H

Complimentary
Edition

Jadual Bayaran Balik

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LOAN AMORTIZATION SCHEDULE
Amount (RM)
Interest Rate
Duration (yrs)
Method
Year

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

0
5%
8
Annual Rest
Instalment Payments
Interest
Annual Payments

Principal

FinePlann
er

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

ZATION & HIRE-PURCHASE SCHEDULES

ual Bayaran Balik Pinjaman & Sewa-Beli


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CHEDULE

HIRE-PURCHASE REPAYMENT SCHEDULE


Amount (RM)
Interest Rate
Duration (yrs)
Principal Balance

Tahun

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

12,000
5%
9
Bayaran Ansuran
Faedah

Pokok

600
600

1,333
1,333
1,333
1,333
1,333
1,333
1,333
1,333
1,333
0
0
0
0
0
0
0
0
0
0
0

600
600
600
600
600
600
600
0
0
0
0
0
0
0
0
0
0
0

BayaranTahunan

1,933
1,933
1,933
1,933
1,933
1,933
1,933
1,933
1,933
-

HEDULES

EDULE

Baki Pokok

12,000
10,667
9,333
8,000
6,667
5,333
4,000
2,667
1,333
-

Main Menu

Complimentary
Edition

DEPRECIATION OF FIX

Susutnilai Aset Teta

faiz arif resources


Type of Fixed Asset
Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

0
1
2
3
4
5
6
7
8
9
10

computer
3,000

Straight Line
6

Annual
Depreciation

Accumulated
Depreciation

500
500
500
500
500
500
0
0
0
0

Accumulated
Depreciation

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

0
1
2
3

3,000
2,500
2,000
1,500
1,000
500
-

0
0
Straight Line
5

Annual
Depreciation

0
1
2
3
4
5
6
7
8
9
10

500
1,000
1,500
2,000
2,500
3,000
0
0
0
0

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

Book Value

Book Value

signboard
5,000
Straight Line
8

Annual
Depreciation

Accumulated
Depreciation

625
625
625

625
1,250
1,875

Book Value

5,000
4,375
3,750
3,125

4
5
6
7
8
9
10

625
625
625
625
625
0
0

0
0

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

Annual
Depreciation

Accumulated
Depreciation

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)

0
1
2
3
4
5
6
7
8
9
10

0
1
2

Book Value

washing machine
12,000
Straight Line
5

Annual

Accumulated

Depreciation

Depreciation

2,400
2,400
2,400
2,400
2,400
0
0
0
0
0

Book Value

2,400
4,800
7,200
9,600
12,000
0
0
0
0
0

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

2,500
1,875
1,250
625
-

0
0
Straight Line
5

0
1
2
3
4
5
6
7
8
9
10

Year

2,500
3,125
3,750
4,375
5,000

12,000
9,600
7,200
4,800
2,400
-

0
0
Straight Line
5

Annual

Accumulated

Depreciation

Depreciation

Book Value

3
4
5
6
7
8
9
10

FinePlan

N OF FIXED ASSETS

nilai Aset Tetap


Type of Fixed Asset
Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

0
0
Straight Line
5

Annual
Depreciation

0
1
2
3
4
5
6
7
8
9
10

Accumulated
Depreciation

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

Accumulated
Depreciation

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

0
1
2
3

0
0
Straight Line
5

Annual
Depreciation

0
1
2
3
4
5
6
7
8
9
10

Book Value

Book Value

0
0
Straight Line
5

Annual
Depreciation

Accumulated
Depreciation

Book Value

4
5
6
7
8
9
10

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

Accumulated
Depreciation

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

0
1
2

0
0
Straight Line
5

Annual

Accumulated
Depreciation

Type of Fixed Asset


Cost (RM)
Depreciation Method
Economic Life (yrs)
Year

Book Value

Depreciation

0
1
2
3
4
5
6
7
8
9
10

0
0
Straight Line
5

Annual
Depreciation

0
1
2
3
4
5
6
7
8
9
10

Book Value

0
0
Straight Line
5

Annual
Depreciation

Accumulated
Depreciation

Book Value

3
4
5
6
7
8
9
10

Main Menu
2009 Ismail Ab.Wahab MEDEC UiTM

PVIFA=

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Loan amt Principal


0

0.6768
6.4632127594
Int
-

annual paym
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Balance
-

Complimentary
Edition

faiz arif resources


Pro-forma Cash Flow Statement

MONTH Pre-Operations

January

February

CASH INFLOW
Capital (Cash)
Loan
Cash Sales
Collection of Accounts Receivable

82,137
0
20,000
0

30,000
0

20,000

30,000

Sales & Marketing Expenditure

3,200

3,200

General & Administrative Expenditure

5,000

5,000

11,000

11,000

TOTAL CASH RECEIPT

82,137

CASH OUTFLOW
Pre-operating & Incorporation Expenditure

7,070

Operations & Technical Expenditure


Other Expenditure
Purchase of Fixed Assets

1,000
8,000

Hire-Purchase Repayment:
Principal

111

111

Interest

50

50

Principal

Interest

Tax Payable

Loan Repayment:

TOTAL CASH OUTFLOW

15,070

20,361

19,361

CASH SURPLUS (DEFICIT)

67,067

(361)

10,639

67,067

66,706

66,706

77,345

BEGINNING CASH BALANCE


ENDING CASH BALANCE

FinePl
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67,067

PRO-FORM

2013 MONTHLY CASH FLOW


March

April

May

June

July

30,000
0

30,000
0

30,000
0

30,000
0

30,000
0

30,000

30,000

30,000

30,000

30,000

3,200

3,200

3,200

3,200

3,200

5,000

5,000

5,000

5,000

5,000

10,000

11,000

11,000

11,000

11,000

111

111

111

111

111

50

50

50

50

50

18,361

19,361

19,361

19,361

19,361

11,639

10,639

10,639

10,639

10,639

77,345

88,984

99,623

110,261

120,900

88,984

99,623

110,261

120,900

131,539

PRO-FORMA CASH FLOW STATEMENT


Aliran Tunai Pro-forma

W
August

September

October

November

December

30,000
0

30,000
0

30,000
0

30,000
0

30,000
0

30,000

30,000

30,000

30,000

30,000

3,200

3,200

3,200

3,200

3,200

5,000

5,000

5,000

5,000

5,000

11,000

11,000

11,000

11,000

11,000

111

111

111

111

111

50

50

50

50

50

19,361

19,361

19,361

19,361

19,361

10,639

10,639

10,639

10,639

10,639

131,539

142,178

152,817

163,456

174,095

142,178

152,817

163,456

174,095

184,734

ATEMENT

2013

2014

2015

82,137

350,000
0

380,000
0

400,000
0

432,137

380,000

400,000

38,400

42,240

46,464

60,000

66,000

72,600

131,000

216,000

242,600

1,000

1,100

1,210

1,333

1,333

1,333

600

600

600

7,070

8,000

247,403

327,273

364,807

184,734

52,727

35,193

184,734

237,460

184,734

237,460

272,653

Complimentary
Edition

PRO-FORMA INCOME STATEMENT


Penyata Pendapatan Pro-forma

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Pro-forma Income Statement
Years
Sales

Less: Cost of Sales (Notes 1 & 2)


Gross Profit

2013

2014

2015

350,000
125,400

380,000
216,400

400,000
243,000

#VALUE!

#VALUE!

224,600

163,600

157,000

#VALUE!

#VALUE!

Less: Expenditure
Pre-Operating & Incorporation Expenditure

2,070

General & Administrative Expenditure

60,000

66,000

72,600

Sales & Marketing Expenditure

38,400

42,240

46,464

1,000

1,100

1,210

600

600

600

1,125

1,125

1,125

Total Expenditure

103,195

111,065

121,999

Net Income Before Tax

121,405

52,535

35,001

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Net Income After Tax

121,405

52,535

35,001

#VALUE!

#VALUE!

Accumulated Net Income

121,405

173,940

208,941

#VALUE!

#VALUE!

3,000

5,000

128,400

218,400

244,000

5,000

6,000

Other Expenditure
Interest on Hire-Purchase
Interest on Loan
Depreciation of Fixed Assets

Tax

Note 1
Cost of Sales
Opening Inventory of Finished Goods
Add: Total Production Cost (Note 2)

0
Less: Ending Inventory

3,000

125,400

216,400

243,000

#VALUE!

#VALUE!

Note 2
Raw Materials

Opening Inventory

5,000

5,000

71,000

150,000

170,000

Add: Carriage Inwards

Less: Ending Inventory

5,000

5,000

6,000

Add: Current Year Purchases

Complimentary
Edition

PRO-FORMA BALANCE SHEET


Kunci Kira-Kira Pro-forma

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Pro-forma Balance Sheet
2013

2014

2015

Main Men

Pro-forma Cash Flow

ASSETS

Pro-forma Income

Non-Current Assets (Book Value)


Land & Building
Other Fixed Assets

Pro-forma Balanc

16,475

12,950

9,425

Financial Perfor

5,000

5,000

5,000

21,475

17,950

14,425

Other Assets
Deposit

Current Assets

SUMMARY
2013

Inventory of Raw Materials

5,000

5,000

6,000

2014

Inventory of Finished Goods


Accounts Receivable

3,000
0

5,000
0

6,000
0

2015

184,734

237,460

272,653

192,734

247,460

284,653

214,209

265,410

299,078

82,137

82,137

82,137

121,405

173,940

208,941

#VALUE!

#VALUE!

203,542

256,077

291,078

#VALUE!

#VALUE!

Cash Balance

TOTAL ASSETS
Owners' Equity
Capital
Accumulated Income
Long-Term Liabilities
Loan Balance

2013

2012

2011

2010

2013

2012

2011

Hire-Purchase Balance

10,667

9,333

8,000

#VALUE!

#VALUE!

10,667

9,333

8,000

#VALUE!

#VALUE!

214,209

265,410

299,078

2010

Current Liabilities
Accounts Payable
TOTAL EQUITY & LIABILITIES

FinePlanner

2009

#VALUE!

#VALUE!

100000 200000 3000

FINANCIAL P

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Edition

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Financial Ratio Analysis

2013

LIQUIDITY
Current Ratio

NA

Quick Ratio (Acid Test)

NA

EFFICIENCY
Receivable Turnover

NA

Inventory Turnover

31

PROFITABILITY
Gross Profit Margin

64.17%

Net Profit Margin

34.69%

Return on Assets

56.68%

Return on Equity

59.65%

SOLVENCY
Debt to Equity

5.24%

Debt to Assets

4.98%

Time Interest Earned

#DIV/0!

Break-even Analysis

2013

Total projected sales(RM)


Total variable costs (cost of sales)
Contribution margin
Contribution margin ratio
Fixed costs
Total costs
Net Profit

125,400
224,600
64%
103,195
228,595
121,405

Break-even sales

160,811

Percentage of break-even to sales

350,000

46%

Current Ratio
10
9
8
7

Current Ratio
10
9
8
7
6
5
4
3
2
1
0
2013

2014

2015

2016

2017

Receivable Turnover
10
9
8
7
6
5
4
3
2
1
0
2013

2014

2015

2016

2017

Gross Profit Margin


70%
60%
50%
40%
30%
20%
10%
0%
2013

2014

2015

2016

Return on Assets
60%
50%
40%

2017

Return on Assets
60%
50%
40%
30%
20%
10%
0%
2013

2014

2015

2016

2017

Debt to Equity
6%
5%
4%
3%
2%
1%
0%
2013

2014

2015

2016

2017

Time In
10
9
8
7
6
5
4
3
2
1
0
2013

FinePlan
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2014

NANCIAL PERFORMANCE
Prestasi Kewangan

2014

2015

2016

2017

Main Menu
Pro-forma Cash Flow Statement

NA

NA

#VALUE!

#VALUE!

Pro-forma Income Statement

NA

NA

#VALUE!

#VALUE!

Pro-forma Balance Sheet


Financial Performance

NA

NA

#VALUE!

#VALUE!

43

41

#VALUE!

#VALUE!

43.05%

39.25%

#VALUE!

#VALUE!

13.83%

8.75%

#VALUE!

#VALUE!

19.79%

11.70%

#VALUE!

#VALUE!

20.52%

12.02%

#VALUE!

#VALUE!

3.64%

2.75%

#VALUE!

#VALUE!

3.52%

2.67%

#VALUE!

#VALUE!

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

PAYBACK PERIOD FOR


START-UP FUND

Less than 1 year

INTERNAL RATE OF
RETURN (IRR)

2014

2015

380,000

400,000

216,400
163,600
43%
111,065
327,465
52,535

243,000
157,000
39%
121,999
364,999
35,001

257,975

310,825

68%

79%
#VALUE!

#VALUE!
#VALUE!
#VALUE!

78%

#VALUE!

#VALUE!
#VALUE!
#VALUE!

TIME TO BREAK-EVEN

Less than 1 year

Quick Ratio (Acid Test)

Ratio
10
9
8
7
6

Quick Ratio (Acid Test)

Ratio
10
9
8
7
6
5
4
3
2
1
0
2016

2013

2017

2014

2015

2016

2017

Inventory Turnover

Turnover
45
40
35
30
25
20
15
10
5
0
2016

2013

2017

2014

2015

2016

2017

Net Profit Margin

t Margin
35%
30%
25%
20%
15%
10%
5%
0%
2016

2013

2017

2014

2015

2016

Return on Equity

Assets
60%
50%
40%

2017

Return on Equity

Assets
60%
50%
40%
30%
20%
10%
0%
2016

2013

2017

2014

2015

2016

2017

Debt to Assets

quity
5%
5%
4%
4%
3%
3%
2%
2%
1%
1%
0%
2016

2013

2017

2014

2015

2016

2017

Time Interest Earned


10
9
8
7
6
5
4
3
2
1
0
2013

2014

2015

2016

2017

2009 Ismail Ab.Wahab MEDEC UiTM

st)

2013
Current Ratio

NA

2014
NA

2013
Quick Ratio (Acid Test)

NA

2014
NA

2013
Receivable Turnover

NA

2014
NA

2013

2014

31

43

2013

2014

64%

43%

2013

2014

Net Profit Margin

35%

14%

Return on Assets

2013
57%

2014
20%

Return on Equity

2013
60%

2014
21%

Inventory Turnover

Gross Profit Margin

st)
Debt to Equity

2013
5%

2014
4%

Debt to Assets

2013
5%

2014
4%

2013
#DIV/0!

2014
#DIV/0!

Time Interest Earned

2017

2017

2017

2017

mail Ab.Wahab MEDEC UiTM

2015
NA

2016

2017

#VALUE! #VALUE!
2015

NA
2015
NA

2016
2017
#VALUE! #VALUE!
2016

2017

#VALUE! #VALUE!
2015

2016

2017

41 #VALUE! #VALUE!
2015

2016

2017

39% #VALUE! #VALUE!


2015

2016

2017

9% #VALUE! #VALUE!
2015
2016
2017
12% #VALUE! #VALUE!

2015
2016
2017
12% #VALUE! #VALUE!

2015
2016
2017
3% #VALUE! #VALUE!
2015
2016
2017
3% #VALUE! #VALUE!
2015
2016
2017
#DIV/0! #VALUE! #VALUE!

BRIEF REPORT

TIME TO BREAK-EVEN

Less than 1 year


Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

PAYBACK PERIOD FOR START-UP FUND

Less than 1 year


Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

INTERNAL RATE OF RETURN (IRR)

79%
Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL PROJECT COST

RM
Back to Main Menu

2009 Ismail Ab.Wahab MEDEC U

BRIEF REPORT

TOTAL PROJECT COST

94,137
Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

SOURCES OF FINANCING

Cash
Existing F. Assets
Loan
Hire-Purchase
Total
Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

SOURCES OF FINANCING

RM82,137
RM0
RM0
RM12,000
RM94,137
Back to Main Menu

09 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

CASH BALANCE

2013
2014
2015

RM
RM
RM

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiT

BRIEF REPORT

CASH BALANCE

184,734
52,727
35,193

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

NET INCOME BEFORE TAX

2013
2014
2015

RM
RM
RM

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC U

BRIEF REPORT

T INCOME BEFORE TAX

121,405
52,535
35,001

Back to Main Menu

Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

OWNERS' EQUITY (ACCUMULA

2013
2014
2015

RM
RM
RM

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC U

BRIEF REPORT

NERS' EQUITY (ACCUMULATED)

203,542
256,077
291,078

Back to Main Menu

009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL ASSETS & LIABILITIES (ACCUMU


ASSETS

2013
2014
2015

RM
RM
RM

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL ASSETS & LIABILITIES (ACCUMULATED)


ASSETS

214,209
265,410
299,078

LIABILITIES

RM 10,667
RM 9,333
RM 8,000

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

ESTIMATED MONTHLY LOAN PAY

RM 0
Back to Main Menu

2009 Ismail Ab.Wahab MEDEC Ui

BRIEF REPORT

MONTHLY LOAN PAYMENT

per month

Back to Main Menu

mail Ab.Wahab MEDEC UiTM

BRIEF REPORT

ESTIMATED MONTHLY HIRE-PURCHAS

RM
Back to Main Menu

2009 Ismail Ab.Wahab MEDEC U

BRIEF REPORT

ESTIMATED MONTHLY HIRE-PURCHASE PAYMENT

161

per month

Back to Main Menu

2009 Ismail Ab.Wahab MEDEC UiTM

USER 'S GUIDE

FinePlan
FINANCIAL PLANNING PACKAGE FOR SMALL AND MEDIUM BUSINESSES
PROF. MADYA DR. ISMAIL AB.WAHAB, MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT CENTRE (MEDEC),
FACULTY OF BUSINESS MANAGEMENT, UNIVERSITI TEKNOLOGI MARA, SHAH ALAM, SELANGO R

FinePlanner is an MS Excel-based financial planning package for generating


comprehensive, highly professional and presentable financial projections for start-up
entrepreneurs and small business operators. Based on market survey and
assumptions, FinePlanner generates cash flow, income statement and balance sheet
forecasts for up to five years ahead. It makes it suitable for managers and
entrepreneurs with minimal knowledge in finance and accounting and who have no
previous experience in financial or business planning.

Objective
FinePlanner is a tool that can assist small and medium-sized entrepreneurs in the
preparation of professional, comprehensive and presentable financial projections for
business start-up and expansion.
Novelty
Dual language: English and Malay Generate comprehensive and presentable financial
projection up to five years
Suitable for businesses engaged in manufacturing, trading or services
Suitable for incorporated or unincorporated businesses
Suitable for all levels of existing and potential entrepreneurs: students & graduates
entrepreneurs, corporate entrepreneurs, rural entrepreneurs, agro entrepreneurs, etc.

Getting Started

Before you start the planning process, select the language by clicking English or Malay buttons planning peri
vSelect the planning period (3 or 5 years).
vChoose first year of planning period and first month of planning period.
vSelect the legal form of business (private limited company or sole-proprietorship and others)
vSelect nature of business (manufacturing, trading/distribution or service)
Financial Forecasting

vClick Capital expenditure projections menu for entering the projected cost of each fixed assets required
business. Please key in the cost of new fixed assets and/or the market value for existing fixed assets (i
Determine the number of years of economic or productive life for each asset (except land & building). The eco
life of an asset refers to the period (normally expressed in number of years) whereby the asset can be econo
used i.e. without much maintenance or breakdowns.

v Next, select the depreciation method for all assets. The recommended method for calculating deprecia
either straight-line or declining balance. The simplest and most commonly used is straight line method. It is calc
by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total pro
years the asset can be reasonably expected to benefit the company [called useful life in accounting jargo
planning purposes, the salvage value can be zero. The declining method of depreciation accelerates depre
faster than the straight-line method because it bases each year's depreciation on the assets previous-year ne
value.
vGo back to the main menu.

Projection of Pre-operating and Working Capital Expenditure

v First, determine the pre-operating and incorporation costs. The pre-operating cost can includes bu
registration and licences, legal fees , stamp duties etc.

v Next, estimate the sales and marketing costs, general and administrative costs, and operation
technical costs. These costs are incurred every month and are generally known as working capital. Other costs
are not paid monthly but are incurred every year can be included under other expenditure (annually) categor
as payment of road tax and insurance for motor vehicles, licences etc.

vEstimate the increment rate for working capital expenditure (if any). Next, choose the current and estimated r
corporate taxation from the list. The system will only calculate the amount of tax for private limited company.
vGo back to the main menu.

Projections for Sales and Purchases

vFill in the sales projections table. Sales (or revenues) refers to the sales forecast derived from
marketing plan. It is the total of forecasted cash and credit sales for each year throughout the planne
period. Sales are to be forested monthly (first planning year) and annually (after first year).

vThe amount of monthly purchases in the purchase Projections table should be equal to the amo
purchases that have been projected in the working capital section under operations and technical
category.
vIf there some credit sales or purchases, choose the percentage of credit sales collections and c
purchase payments in the columns provided.
vNext, estimate the ending inventory of raw materials and finished goods (for manufacturing
businesses only). For trading and distribution businesses, the ending inventory figures are to be ente
the ending inventory of finished goods column only. It is assumed that there is no ending inventor
businesses involved in service industry. If your businesses are involved in both trading and service
activities, please select trading/distribution category under nature of business in the main menu.
vGo back to the main menu.

Project Costs and Financing

vThe project cost is the total cost of implementation of the proposed project. The project cost sch
incorporates both long and short terms expenditure needed to start the business. The components o
schedule include capital expenditure, working capital, pre-operating and incorporation costs, other
expenditure and provision for contingency.

vThe sources of financing schedule shows various sources of finance available to fund the busin
These could be internal and external sources of finance. The internal sources of finance include equ
contributions in cash and/or existing assets. External sources may include term loan and hire purcha
For planning purposes, other sources such as grants and money borrowed from individuals should b
considered as own cash contributions. For each asset and working capital required, p lease choose
type of financing from the list provided in the sources of financing column.

vThe amount of working capital is dependent upon the period until the business can generate en
sales to cover its short-term expenditure. Therefore, the amount of working capital needed could be
range of one to six months. Please select the number of months from the list provided in relevant co

vThe final component of the project cost is provision for contingency. This cost is added to the total cost
other four components based on a certain percentage (usually between 5 to 10 percent). The reason for in
contingency cost in the project implementation cost schedule is to take care of any variance of the actual fro
budgeted expenditure. For example, if the cost of materials increases during the planned period, the firm can
this fund to cover the extra cost without having to search for new funding.
SUMMARY AND SCHEDULES

This section presents the supporting schedules relating to the information that have been provid
the forecasting section. The schedules are project cost and sources of funds summary,
assets and depreciation schedules, and loan amortization schedule.
REPORTS AND ANALYSIS

This section presents the pro-forma financial statements and analysis of the financial performanc
position of the proposed project.
Pro-forma cash flow statement

v Pro forma cash flow statement refers to the projected statement of cash inflows and ou
throughout the planned period. Under normal circumstances, the pro forma cash flow statem
prepared between three to five consecutive years, with monthly details for the first year. The pro
cash flow statement shows the following information:
Cash inflows the projected amount of cash flowing into the company.
Cash outflows the projected amount of cash flowing out of the company.
Cash deficit or surplus the difference between cash inflows and cash outflow
Cash position the beginning and ending cash balances for a particular perio
Pro-forma Income Statement

vThe pro forma income statement shows the expected profit for the planned period
statement shows the following information:
Gross profit

Net profit

vGross profit is the gross margin realised after deducting the cost of goods sold from
sales. It represents the amount of profit before deducting other operating expenditure su
as administration expenditure, marketing expenditure, operations expenditure (for a tra
entity), interest charges, depreciation charges on fixed assets (except for a manufacturi
concern) and other miscellaneous expenditure incurred throughout the year in order to o
the net profit before tax.
Pro-forma Balance Sheet

vWhile the pro forma income statement shows the financial performance of the
company for the planned period, the pro forma balance sheet shows the financial positio
the company at a specific point in time in terms of assets owned and how those assets a
financed. The pro forma balance sheet is prepared for a period of three years.
vThe general elements of the pro forma balance sheet include:
assets
owners equity
liabilities

vAssets are the economic resources of a business that are expected to be of benefit i
future. Assets reported in the balance sheet are generally categorised into two categorie
non-current and current assets.
vNon-current assets include fixed assets and other assets that are owned and u
held to produce products or services. These assets are not intended for sale in the short
Examples: property, plant, machinery, equipment, vehicles, major renovations and long
investments. For fixed assets, the values shown in the balance sheet are the book value
the original cost less the accumulated depreciation.
vCurrent assets are short-term assets that can be converted into cash within a year.
Examples: cash, inventories (raw materials, work-in-process and/or finished goods),
receivables and other short-term investments.

vOwners equity refers to capital contributions from the owners or shareholders in te


of cash or assets plus the accumulated amount of net income. However, if the business
suffers a loss, the amount of loss will be deducted from the capital contributions.
vLiabilities are the amounts owed by the business to outsiders. They are categorised
non-current
(long-term)
and current
liabilities.
vNon-current
or long-term
liabilities
refer to the long-term obligations of the busin

that mature in a period of more than one year. They usually include long-term loans as w
as hire purchase.

vCurrent liabilities refer to the short-term obligations of the business that mature wi
period of less than a year. The most common forms of current liabilities are accounts pa
and accrued payments

Financial Analysis
vFinancial analysis is a technique of examining financial statements to help the
entrepreneur analyse the financial position and performance of the business.
vFinancial analysis involves two basic steps: generating the information from the finan
statements and interpreting the results.
vThe most common form of financial analysis is ratio analysis.

vFinancial ratios are normally used to compare figures from the financial statement wit
other figures, so that the true meaning of financial pictures can be obtained.

vThere are various financial ratios that the entrepreneur can look at. However, the mo
commonly considered ratios in small business decision-making fall into four categories:
liquidity, efficiency, profitability and solvency.

v Liquidity Ratio: The term liquidity refers to the availability of liquid assets to meet shor
obligations. Thus, liquidity ratios measure the ability of the business to pay its monthly bills.The
widely used liquidity ratios are current ratio and quick ratio. Current ratio can be determin
dividing total current assets by total current liabilities. Generally, this ratio shows the business abi
generate cash to meet its short-term obligations. Quick ratio, also known as the acid test
measures the extent to which current liabilities are covered by liquid assets. To determine quick
the calculation of liquid assets does not take into account inventrories since it is sometimes diffic
convert them into cash quickly.
v The efficiency ratios measure how efficient the business uses its assets to generate sales
most widely used efficiency ratio for planning purposes is inventory turnover ratio. Inventory turn
(or stock turnover) measures the number of times inventories have been converted into sale
indicates how liquid the inventory is. All other things being equal, the higher the turnover figur
more liquid the business is. This ratio divides the cost of sales (or cost of goods sold) by the av
value of inventory. The average value of inventory is derived by adding the opening and closing ba
of and dividing the total by two.

v Profitability ratios are important indicators of the business financial performance. Investo
particularly be interested in these ratios since they measure the performance and growth poten
the business. Some of the commonly used profitability ratios are gross profit margin, net profit m
return on assets and return on equity. Gross profit margin give a good indication of financial hea
the business. Without an adequate gross margin, the business will be unable to pay its operatin
other expenses. Gross profit margin is calculated by dividing the business gross income by sales
profit margin is an indication of how effective the business is at cost control. The higher the net
margin, the more effective the business is at converting sales into actual profit. Net profit mar
calculated by dividing the business net income by sales. Return of assets measures the overall
that the business is able to make on its assets. This ratio is derived by dividing the business net
by total assets. Return of equity shows what the business has earned on its owners investment
business. This ratio is derived by dividing the business net profit by total equity.

This final category of ratios i.e. Solvency Ratios, is designed to help the entrepreneur measure th
degree of financial risk that his business faces. By referring to this ratio, the entrepreneur can asse
level of debt and decide whether it is appropriate for the business. The most commonly used solve
ratios are total debt (liabilities) to equity (also known as leverage or gearing), total debt to total as
and times interest earned (also known as interest coverage). The total debt to equity ratio mea
the percentage of the business assets financed by creditors relative to the percentage financed by
owners. This ratio is calculated by dividing the the total debt by total equity. The debt to asset
measures the percentage of the business assets financed by creditors relative to the percentage
financed by the entrepreneur. This ratio is calculated by dividing the total debts by total assets. Ti
interest earned ratio measures the number of times interest expense can be covered by profit b
interest and tax. This ratio is calculated by dividing total inte

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