BUSINESS PLAN

EN.SHAAMRY BIN MOHD YUSOF

KUMPULAN 3

GROUPS MEMBERS :

MUHAMMAD FAIZ BIN AHMAD

02DKA16F2001

MUHAMMAD ARIF BIN ZULKIFLEE

02DKA16F2040

IZZUL HAZIQ BIN KAMARULZAMAN

02DKA16F2048

1
Table of Contents

No. Item Page

Executive Summary i
1.0 INTRODUCTION
1.1 Name of the company
1.2 Nature of business
1.3 Industry profile
1.4 Location of business
1.5 Date of Commencement
1.6 Factors in selecting the proposed venture
1.7 Future prospects of the business
2.0 BUSINESS BACKGROUND
3.0 OWNER BACKGROUND
4.0 LOCATION OF BUSINESS
4.1 Physical location
4.2 Basic Amenities
5.0 ADMINISTRATION PLAN
5.1 Organization’s mission, vision and objective
5.2 Organizational Chart
5.3 Man power planning
5.4 Schedule of tasks and responsibities
5.5 Remuneration Plan
5.6 List office equipment and supplies
5.7 Administrative budget
7.0 MARKETING PLAN/MARKETING ANALYSIS
7.1 Description of products or services
7.2 Target market
7.3 Market Size
7.4 Competitors
7.5 Market Share
7.6 Sales Forecast
7.7 Marketing Strategy
7.8 Marketing Budget
8.0 OPERATIONAL PLAN/PRODUCTION STRATEGY
8.1 Process flow chart
8.2 Material requirement
8.3 Man power planning
8.4 Machine and equipment
8.5 Operational layout plan
8.6 Operational Budget

2
9.0 FINANCIAL PLANNING/ FINANCIAL ANALYSIS
9.1 Project implementation cost schedule
9.2 Schedule of financial resource
9.3 Loan amortization schedule
9.4 Pro forma cash flow statement
9.5 Pro forma profit and loss / Income statement
9.6 Pro forma balance sheet
10.0 CONCLUSION
11.0 APPENDICES

3
1.0 INTRODUCTION

1.1 Name of the company

Sports Center Sdn. Bhd.

1.2 Nature of business

Sports Center Sdn. Bhd. is a private company that focuses on supplying sports
equipment for the sports industry. We specialize in providing quality sports
equipment.

1.3 Industry profile

The main idea for developing this business is due to the government’s
announcement in the 10th Malaysian Plan with regards to providing the largest
infranstructure development and facilities in Malaysia. This would give an
opportunity for our company to take a part in government projects as tiles are
a subcomponent of the construction industry.Our competitors are chinese
based companies. Further more, it would be easy for us to contribute to this
business as we are the one of the three Bumiputera companies in Kuantan that
provide tiles for consumers at a reasonable price.

1.4 Location of business

Sports center sdn. bhd. is located at SEMAMBU industrial area. We chose this
location because it is a strategic location that provides all facilities such as
telecomunication systems and roadways. Other than that, this location has
sufficient parking lots.

1.5 Date of commencement

Our company commenced operations on 05th April 2014

1.6 Factors in selecting the proposed venture

We chose this business because there is a high demand in the Sports industry.
We believe that we can compete with other competitors around Kuantan dan
Terengganu. We also believe that our company will become a source of
reference for Bumiputera entrepreneurs in the same field.

1.7 Future prospects of the business

Our future plans for this business is to open more branches in Malaysia.
Besides that, we also hope that we can get full support from government and
non-government associations.

4
2.0 BUSINESS BACKGROUND

Name of the business : Sports center Sdn. Bhd

Business Address : Lot 43 lorong 13 Semambu Baru 25300

Kuantan

Telephone number : 09- 5105000/0189125 295

Fax number : 09- 5105001

E-mail address : SportsC@gmail.com

Web address : axzconstruction.com.my

Form of business : Private company

Main activity : Supplier of Sports equipment

Date of commencement : 05th october 2018.

Date of registration : 13th November 2014

Registration number : C-4479345-A

Initial (own) capital : RM200,000.00

Name of Bank (1) : Maybank Berhad

Bank account number : 156141417245

Name of Bank (2) : CIMB Bank Berhad

Bank account number : 452630765412

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3.0 OWNER BACKGROUND

Name : MUHAMMAD FAIZ BIN AHMAD

Position:

GENERAL MANAGER

Address:

Kampung tok junoh

16400 melor Kota Bharu
Kelantan

Date of birth:

5TH APRIL 1998

Age: 20

Telephone number: 018 9125 295

Marital Status:
SINGLE

Academic qualification: Diploma in Civil Engineering

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 Course attended:
Marketing strategy for
online business 2014

Secretary

MUHAMMAD ARIF BIN ZULKIFLEE

0143407566

Academic qualification: Diploma in Civil Engineering

MARKETING MANAGER

IZZUL HAZIQ BIN KAMARULZAMAN

0115130801

Academic qualification: Diploma in Civil Engineering

7
4.0 LOCATION OF BUSINESS

4.1 Physical location

Our premises is located along the main road which is undergoing

development. Many buildings are being constructed along this road. Our

8
 business opportunity to supply ties for these constructions is enhanced. Our
building is a new building. As such, it is in good condititon and well maintained.
The size is 2700sq ft and consists of two areas which are the office and store.
So, its suitable for the ties business. We are renting the premises with a rental
of RM2500 per month.

4.2 Basic Amenities

Our premises is located in an industrial area. All facilities and amenities such
as water, electricity, telephone line and transportation are available here.
With all these facilities, we believe we can operate our business properly.

5.0 ADMINISTRATION PLAN

5.1 Organization’s mission, vision and objectives

Example : Our mission is to give the best quality of Euipment and services to

customers and ensure that the demands and expectations of customers are

met.

5.2 Organizational chart and structure

Sports Center Sdn Bhd uses an functional organization structure in the

organization. The firm is divided into marketing, human resource, finance and

operational departments. It is also suitable for this firm as the organization

emphasizes functional speciaties to perform task.

9
 General Manager
(Muhammad Faiz Ahmad)

Secretacy

Finance Cum Human Resource Operational Manager

Marketing Manager
Manager

5.3 Manpower planning

Sports center Sdn Bhd has four share partners and they manage , contract

and execute the operations of the business. This firm has one general

manager, one finance cum human resource manager, one operational

manager and marketing manager as shown in table 1.

Table 1: Position and number of administrative employees in AXZ

Construction Sdn Bhd
Position Number of employees

General Manager 1

Finance cum Human Resource 1

Manager

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 Operational Manager 1

Marketing Manager 1

5.4 Schedule of task and responsibilities

Every manaager has his responsibilities to execute the operations of the

business. It is very important to every manager knows his tasks and

responsibilities as it will guide him in accomplishing his job. Table 2 describes

the tasks and responsibilities of every position.

Table 2 : Schedule of task and responsibilities of employees

Position Main tasks and responsibilities

General Manager  To plan, implement, leading and control the

overall management and performance of the
business.
 To plan and monitor the strategic progress of
the business
Financial cum  To plan and oversee the accounting and human
Human Resource resource functions and financial and human
Manager resources.
 To make forecast for human resource planning
and accounts for the company.
Operational  To plan productions of the organization.
Manager  To be responsible for production, inventory and
quality control.
Marketing  To plan marketing activity for the organization
Manager  To be responsible to increase sales volume of
organization

5.5 Remuneration Plan

For Sports center Sdn Bhd, we have chosen the EPF scheme to be given to all

employees. As a general guideline, we are required to contribute at least 12%

of an employee’s basic salary. This firm also provide SOCSO (Social Security

11
 Organization) to ensure that the employees receive compensation in situation

of workrelated accidents or illness. Table 3 illustrates the remuniration plan

for each employee in Sports Center Sdn Bhd.

Table 3 : Remuniration Plan (Excel Calculation)

Position Num Monthly EPF (12%) SOCSO Net Salary

salary (2%)

General Manager 1 2,000 240 40 1720

Finance cum Human Resource Manager 1 2,000 240 40 1720

Operational Manager 1 2,000 240 40 1720

Marketing Manager 1 2,000 240 40 1720

Total 8,000 960 160 6880

4

5.6 List of office equipment and supplies

Sports CenterSdn Bhd bought office furniture, fittings and equipment from

Teguh Bermutu Sdn Bhd , No116,115, Jalan Semambu, Kuantan such as tables,

computers chairs and others. The list of equipment is listed in Table 4. We

bought five sets of furniture. A personal computer was bought for each

manager and for the customer reception area. A whiteboard was placed at the

meeting room.

Table 4: List of equipment and supplies ( Excel Calculation)

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 EQUIPMENT AND SUPPLIES PRICE/UNIT
QUANTITY TOTAL (RM)
(RM)
office furniture 4 880 3520
personal computer 4 1,830 7320
fotostat machine 1 5,000 5000
whiteboard 1 200 200
customer receptionist table and chair 1 550 550

TOTAL 16590

5.7 Administrative budget

Sports Center Sdn Bhd purchased furniture and fitting such as office furniture,

personal computers,whiteboard, cabinet and others for the company. Rental

deposits is three month. Utilities deposit is for water, telephone and electricity.

The administrative budget of Sports Center Sdn. Bhd. is shown in Table 5.

Table 5 : Administrative Budget (Excel calculation)

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 ITEM
Cost of fixed asset monthly expenses others expenses

Fixed assets
furniture and fitting 16,590
rental deposit 7,500
monthly expenses
office supplies 3,000
salary 8,000
rental 2,500
utilities 1,000
other Expenses
utilities deposit 1850

Total 24,090 14,500 1850

6.0 MARKETING PLAN/MARKET ANALYSIS

6.1 Description of products or services

Sports Center is a supplier of sports equipment for sport industry. We supply

various kinds of sports equipment that are manufactured by a domestic firm.

14
 We also supply sports equipment that are imported from foreign countries.
We supply quality sports equipment and are concerned with customer
satisfaction. We guarantee that our sports equipment are of good quality. If
our product have failed to satisfy and fulfill our customer needs, they can
replace it with a new set. We would also return our customer’s money if our
equipment has defects.

6.2 Target market

Target market can best be defined as the group of customers that comes with
needs and wants that can be satisfied by the business through the supply of
product and services. The target market of our company is focuses on
delevopers and those who need sports equipment for sporting and sports
event.Sports Center Sdn. Bhd.is situated in an industrial area which are near to
several housing developments. We had done several survey in our target
group.

6.3 Market size

The business has identified its market size as the residence of the housing
area located near our business office. It also has a strong potential regarding
its long-term invesment. There are two major market segments within this
target area. First, housing are developers around Kuantan and Kemaman and
second are owners of house and buildings.
The first segment consists of 3000 to 5000 school that use sports equipment
in their sporting event. The second segment is about 2000 to 4000 sports hall
owner which include Badminton court, Futsal court and others. A survey
showed that the first segment makes purchases of about RM100,000 a month
and the second group spends about RM7000 a month. We estimated the
potential sales for the year as RM1,284,000 which is, RM107,000 X 12 months.
All the data was obtained using three methods. Firstly, we made an
observation of the market size of the business. Secondly, we interviewed a
person in charge and a receptionist at the Registration Department and the

15
 Statistic Department to get further information. Lastly, we used questionnaires
to get some information in order to build our marketing plan.

7.4 Competitors
Being the fifth company to involve in supplying Sports equipment,Sports
Center Sdn. Bhd.has to compete with sevaral competitors. GG spotz is fully
managed by experts. This company can give good challenges to other
competitors. Located at the industrial area at SETALI, Kuantan, they have
good facilities and their warehouse is huge.
SMG Marketing is the second competitor of Sports Center. They have
experienced workers who perform an excellent job. The third competitor is
Kim Lee & Son Marketing. This company appears to have the same strengths
as our company. However, Teguh Marketing it is a small company with limited
warehouse space. Although this company new to the industry, they have built
a good relationship in the industry and has a large sales volume every year.

7.5 Market share

AXZ Construction Sdn Bhd provide tiles, specializing in the seramic industry.
Located in the an industrial area at Indera Mahkota, the target market for this
business are developers and contractors. The business has estimated
RM200,000 for one month of services.
We have identified four major competitors who are within the same scope in
the industry which are TG Seramik, GH Marketing, Hong Lee & Son Marketing
and Teguh Marketing. Table 6 shows that each competitor controls a
percentage of the market share. The adjusted market share after the entry
ofSports Center Sdn. Bhd.is depicted in Table 7.

Table 6 : Market share before the entry of Sports Center Sdn Bhd
(Excel Calculation)

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 Competitor Before entrance (%) Amount (RM)

TG Seramik 15% 45,000

GH Marketing 25% 75,000

Hong Lee & Son Marketing 23% 69,000

Teguh Marketing 37% 111,000

Total 100% 300,000.000

Table 7 : Adjusted market share after the entry of Sports Center Sdn. Bhd.(Excel

Calculation)

17
 Company
After entrance Amount (RM) % of loss

TG Seramik 12% 36,000 3.00%

GH Marketing 23% 69,000 2.00%
Hong Lee & Son 20% 60,000 3.00%
Teguh Marketing 35% 105,000 2.00%
Sports Center 10% 30,000
Total 100 300,000

6.6 Sales forecast

Table 8: Sales forecast of Sports Center Sdn. Bhd.for three years.

(Excel Calculation)

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 Month 2014 (RM) 2015(RM) 2016(RM)
January 30000.00 33000.00 35000.00
February 32000.00 35000.00 36000.00
March 31000.00 30000.00 32000.00
April 27000.00 30000.00 32000.00
Mei 33000.00 38000.00 39000.00
June 29000.00 36000.00 35000.00
July 25000.00 26000.00 28000.00
August 29000.00 22000.00 21000.00
September 24000.00 19000.00 30000.00
October 20000.00 25000.00 29000.00
December 25000.00 27000.00 30000.00
Total 325000.00 347000.00 376000.00

6.7 Marketing strategy

6.7.1 Product or service strategy

As a trading company, we supply Sports equipment that are produced
by several local manufacturers. The brands that we are going to sell are
Adidas, Nike, Puma,Yonex and other sports brand. All these brands
are from the best manufacturer in our company.

6.7.2 Quality
Sports Center Sdn Bhd provides of good quality Sports equipment to
provide satisfaction to the customers. The quality is in terms of:
i) Design
ii) Packaging

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 iii) Protection
iv) Ease to use
v) Product differentiation
vi) Attractive to customers
vii) Product safety

6.7.3 Labeling
All Equipment are labelled and provide information on the
manufacturer, size and usage instructions.

6.7.4 After sales services

In order to maintain the maintain the smooth running of Sports Center
Sdn Bhd, the management offers after sales services whereby the
customer will be given a short questionnaires in order to know the
weaknesses that need to be improved in the future. We also provide
delivery services to customers.

6.7.5 Pricing strategy

Sports Cemter Sdn Bhd is using a competition-based pricing as the
pricing strategy. We have many competitors in Kuantan. They sell the
same product but they mark-up the price to get a better profit.
However for us, customer satisfaction is more important. We reduce
profit per unit and we are still able to get the reasonable profit. When
the price of our products is lower compared to our competitors, our
company will be able to attract customers from the competitors’
customers.
6.7.6 Place or distribution strategy
Sports Center Sdn Bhd is using the fourth channel as the distribution
strategy. As a trading company, we will get the goods from the
wholesellers and sell to our customers. The wholeseller buys in large
quantities from several manufacturers.

20
 Manufacturer Wholeseller Retailer Customer

6.7.7 Promotion strategy

As for promotion strategy,Sports Center Sdn. Bhd.will be using the
advertising method as the first step in promoting our business. There
will be printed advertisements in brochures, magazines and
newspapers. Other than that, we also sent our marketing manager to
the delevopers’ offices to attract them to our company. A special
discount will be given for purchases of large quantities.

6.7.8 Marketing budget

Table 9: Marketing budget of AXZ Construction Sdn Bhd

Items Cost of Fixed Monthly Other Expenses Total
assets (RM) Expenses (RM) (RM) (RM)

Fixed Assets
signboards 2000.00
Monthly Expenses
travelling 150.00
Other Expenses
promotion 2000.00
Grand opening 4000.00
Total 2000.00 150.00 6000.00 8150.00

7.0 OPERATION PLAN/PRODUCTION STRATEGY

7.1 Process flow chart

Order equipment from manufacturers

21
 Merchandise inspector (MI) to check quantity and quality of
delivered products

Receive delivered equipment and stored them in the warehouse

Take a sample of equipment and display them in the showroom

Conduct marketing activities such as promotion and discount

for large amounts of purchases

Sell the ties based on customer demand

Issue invoices and receive payments

Deliver the ties based on the cusrtomers’ orders

Figure 1 : Process flow chart for Sports Center Sdn Bhd

7.2 Material requirement

Table 10: Material requirement table

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 Item Quantity Safety stock Price/unit Total Supplies
(RM) purchase
(RM)
Sports 700 boxes
equipment (1 box = 30 70 49,000.00
(SHOES) pieces)

Good per month = 49,000 pieces

equipment (1 box=30 pieces) = 49,000 / 30

= 700 boxes

We calculated our materials requirement based on our sales per month. Our sales

per month is 21,000 pieces and every box has a capacity of 30 pieces of Sports equipment.
By

dividing the sales per month (21,000 pieces) to the capacity per box (30 pieces), we

can get the total number of boxes that has to be used in a month, which is 700

boxes. Therefore, we have to buy 700 boxes per month.

7.3 Manpower planning

Our company has two warehouse assistant workers. Both of them will be paid
RM900.00 each as a basic salary and will contribute RM108.00 to the Employee
Provident Fund (EPF) and RM18.00 for SOCSO. Other than that, we have one
lorry driver who will be paid RM1100.00. He will contribute RM132.00 for EPF
and RM22.00 for SOCSO. So, we will be spending about RM2052 for warehouse
assistant worker and RM1254.00 for the lorry driver. The total salary is
RM3306.00 for all the three workers.

Table 11 : Manpower planning table

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 Position Number Job status Remuneration(RM) EPF SOCSO Total
of (12%) (2%) (RM)
worker
Store 2 Permanent 900.00 108.00 18.00 2052.00
assistant
Lorry 1 permanent 1100.00 132.00 22.00 1254.00
driver
Total 3306.00

7.4 Machine and equipment

7.4.1 Forklift

We will use this machine to transfer the stock from the lorry to the

store efficiently. The cost of this machine is RM20,000.

7.4.2 Hand Jack

This equipment will be used to arrange equipment in the warehouse. It is for

simple transfers as only human force is used for this equipment.

Table 12: Machine and equipment table

Item Quantity Price per unit Total cost (RM) Supplier

(RM)
Forklift 1 20,000.00 20,000.00 Sakura Holding
Sdn Bhd
Hand jack 1 450.00 450.00 Sakura Holding
Sdn Bhd
Total 20,450.00 20,450.00
7.5 Operation layout plan

Display office
toilet
area
Counter 24
payments
 Space for badminton
Space for ball Space for shoes
racket

Space for other Space for sock Space for shoes

eqquipments
Space for other Space for shoes
equipment

Loarding area

Figure 2: Operational layout plan of Sport Center Sdn. Bhd

7.6 operational budget

Table 13: operational budget table

Items Cost of fixed Monthly Other Total (RM)

assets (RM) expenses (RM) expenses
(RM)
Fixed assets
expenses:
Forklift 20,000.00
handjack 450.00
Monthly expenses:
Direct material costs 21,000.00
Direct labor costs 3306.00
Overhead cost:
utilities 1800.00
total 20,450.00 26106.00 46556.00
8.0 FINANCIAL PLAN/FINANCIAL STRATEGY

8.1 Project Implementation cost schedule

Table 14: Project implementation cost schedule

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 Project implementation cost schedule
Item Fixed asset Monthly Other Total
expenses Expenses Expenses (RM)
(RM) (RM) (RM)
A Fixed Asset
(Capital xpenditure)
Land and building 7500.00
Forklift and hand jack 20450.00
Furniture and fixtures 16,590.00
B Monthly Expenses
(working capital)
Administrative budget 14500.00
Marketing budget 8150.00
Operation budget 24306.00
C Other Expenses Pre-
Operating
1. Business 75.00
registration
2. Insurance 1000.00
D Deposits
Utilities 1800.00
rental 7500.00

Total Project 44,540.00 46,956.00 10,375.00 101871.00

Implementation Cost

8.2 Schedule of financial sources

Table 15: Schedule of financial sources

AXZ Construction Sdn Bhd

26
 Schedule of Financial sources as at year 2014
Sources Amount (RM)
A Equity Contributions
Cash 94,450.00
Assets ( Land aand building)
B External Sources
Hire Purchase
Bank Loan 105,550.00
C Others 0.00
Total 200,000.00

8.3 Pro forma cash flows statement

Table 16: Proforma cash flows statement

Cash inflow Month Month Month Total per

1 2 3-12 year
A
(RM) (RM) (RM) (RM)

sales

total

B Operational Expenses

B1. Fixed Expenses

1.

2.

3.

4.

5.

Total

27
 B2. Operational Expenses / Reoperational
expenses

1.

2.

3.

4.

5.

Total

B3. Total expenses (B1+B2)

C Cash Surplus/ Cash Deficit (Total A – Total

B3)

8.4 Pro Forma Income Statement

Table 17 : Pro Forma Income Statement

A Income Year Year Year

1 2 3

(RM) (RM) (RM)

Sales

Total

B Expenses

B1. Fixed expenses

1.

2.

3.

28
 4.

5.

Total

B2. Operational Expenses /reoperational

expenses

1.

2.

3.

4.

5.

Total

B3. Total expenses (B1+B2)

C Net profit before interest

D Expenses of loan interest

E Net profit before tax

F Tax

H Net Profit

I Return on Investment (ROI)

8.5 Pro forma balance sheet

Table 18: Pro Forma balance sheet

AXZ Construction Sdn Bhd

29
 Balance Sheet as at year 2015
ASSETS RM EQUITY RM
NON CURRENT ASSETS
Renovation XXX Capital XXX
Forklift and hand jack XXX Profit XXX
Furnitures XXX
Lorry XXX

CURRENT ASSETS REVENUE XXX

Cash XXX
Closing stock XXX
OTHER ASSETS LIABILITIES
Deposits XXX Term loan XXX
TOTAL XXXX XXXX

8.6 Financial fund needs

Financial amount required is RM 100,000.

8.7 Schedule of Project Funding

Num Item Total Cost Bank Loan Owner

(RM) contribution (RM)
(RM)

1. Fixed assets

Forklift 20,000 20,000

Hand jack 450 450

lorry 85,550 85,550

2. Monthly expenses

Direct materials 21,000 21,000

30
 Added direct materials – 50,000 50,000
Types A & B

Added direct materials – 23000 23,000

Types C

JUMLAH 200,000 105550 94450

8.8 Schedule Financing Repayments

Figure 3 : Loan Calculator

9.0 CONCLUSION

31
 As a summary,Sports Center Sdn. Bhd.is a company that want to make it in the
building industry. This company can work side by side with other companies in the
building industry as well.

Furthermore,Sports Center Sdn. Bhd.has increased its effort in varying innovative

activities in terms of technological research and design. This approach is important
to reach the local market. In connection with that, we aim to supply Sports
equipment according to our customers’ desire.Sports Center Sdn. Bhd.continuously
strive and cooperate closely with various government agencies and private sectors to
be a successful company.

10.0 APPENDICES

 reference materials
 Picture of products
 Any relevant chart
 Business Registration Certificate
 Business-related licenses
 Operational sites
 Any relevant documets

SILICA CREATIVE
PROJECT IMPLEMENTATION COST SCHEDULE

32
 INITIAL
NO SUBJECT INVESTMENT LOAN TOTAL
(RM) (RM) (RM)
1 Capital Exp
Registration Fees (ROB) 100.00 - 100.00
Utiliti Deposit 3,000.00 - 3,000.00
Premis Deposit 3,600.00 - 3,600.00
Stationery 200.00 - 200.00
Advertising & Promotion 2,000.00 - 2,000.00
2 Capital Assets
Printing Machine - 90,000.00 90,000.00
Computer - 9,000.00 9,000.00
Office Equipment - 6,000.00 6,000.00
Furniture & Fittings - 3,000.00 3,000.00
3 Working Capital
Administrative Expenses 10,000.00 10,000.00
Opening Stock 10,000.00 10,000.00
Total 8,900.00 128,000.00 136,900.00

SILICA CREATIVE
INVENTORIES

33
 MATERIALS COST per unit unit TOTAL COST
RM RM

OPENING INVENTORIES
Art Cart Paper 50.000 2 100.00
Sticker 400.000 2 800.00
Double A & Indah Kiat 12.000 24 288.00
Tarpouline 960.000 10 9,600.00
Arcrylic 120.000 10 1,200.00
Syntatic Paper 600.000 1 600.00
High Impact 30.000 10 300.00
Aluminium Composite Panel 250.000 5 1,250.00
Iron 2000.000 30 60,000.00
Tarpouline Ink 720.000 3 2,160.00
Paint 120.000 2 240.00
Polycarbonate 400.000 1 400.00
Colourbond 500.000 1 500.00

TOTAL 6162.000 77,438.00

PURCHASES
Art Cart Paper 50.000 2 100.00
Sticker 400.000 2 800.00
Double A & Indah Kiat 12.000 25 300.00
Tarpouline 960.000 15 14,400.00
Arcrylic 120.000 15 1,800.00
Syntatic Paper 600.000 2 1,200.00
High Impact 30.000 15 450.00
Aluminium Composite Panel 250.000 8 2,000.00
Iron 2000.000 30 60,000.00
Tarpouline Ink 720.000 3 2,160.00
Paint 120.000 2 240.00
Polycarbonate 400.000 1 400.00
Colourbond 500.000 1 500.00

TOTAL 6192.000 84,350.00

CLOSING INVENTORIES
Art Cart Paper 50.00 2 100.00
Sticker 400.00 2 800.00

34
Double A & Indah Kiat 12.00 24 288.00
Tarpouline 960.00 10 9,600.00
Arcrylic 120.00 10 1,200.00
Syntatic Paper 600.00 1 600.00
High Impact 30.00 10 300.00
Aluminium Composite Panel 250.00 5 1,250.00
Iron 2000.00 30 60,000.00
Tarpouline Ink 720.00 3 2,160.00
Paint 120.00 2 240.00
Polycarbonate 400.00 1 400.00
Colourbond 500.00 1 500.00

TOTAL 6162.00 77,438.00

Remarks:
1.The Opening Inventories at the beginning of the year
2. The Purchases are done on every two months in a year ( 6 times per year)
3. The Closing Inventories at the end of the year will be the opening inventories
on the next year.

SILICA CREATIVE
BUDGET

35
POSITION NO OF BASIC GROSS EPF SOCSO
STAFF SALARY SALARY

GENERAL MANAGER 1 3,000.00 3,000.00 330.00 51.65

SENIOR WORKER 1 1,000.00 1,000.00 110.00 16.65
JUNIOR WORKER 1 1 600.00 600.00 66.00 11.35
JUNIOR WORKER 2 1 600.00 600.00 66.00 11.35

4 5,200.00 5,200.00 572.00 91.00

Remarks:

EPF = 11%
SOCSO = Refer to SOCSO Table

36
 SILICA CREATIVE
BUDGETED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DISEMBER 2014

JAN FEB MAC APRIL MEI JUNE JULY AUGUST SEPT OCT NOV DIS 2014 2014 2015

SALES 35,000.00 35,000.00 38,000.00 40,000.00 40,000.00 45,000.00 50,000.00 50,000.00 55,000.00 60,000.00 60,000.00 75,000.00 583,000.00 617,980.00 655,060.00

TOTAL SALES 35,000.00 35,000.00 38,000.00 40,000.00 40,000.00 45,000.00 50,000.00 50,000.00 55,000.00 60,000.00 60,000.00 75,000.00 583,000.00 617,980.00 655,060.00

COST OF SALES
Opening
Inventories 77,438.00 60,000.00 130,000.00 110,000.00 185,000.00 165,000.00 238,000.00 210,000.00 280,000.00 250,000.00 315,000.00 280,000.00
Add : Purchases - 84,350.00 0 84,350.00 - 84,350.00 - 84,350.00 - 84,350.00 - 84,350.00

Less : Closing
Inventories 60,000.00 130,000.00 110,000.00 185,000.00 165,000.00 238,000.00 210,000.00 280,000.00 250,000.00 315,000.00 280,000.00 330,000.00

17,438.00 14,350.00 20,000.00 9,350.00 20,000.00 11,350.00 28,000.00 14,350.00 30,000.00 19,350.00 35,000.00 34,350.00 253,538.00 320,000.00 328,000.00
17,562.00 20,650.00 18,000.00 30,650.00 20,000.00 33,650.00 22,000.00 35,650.00 25,000.00 40,650.00 25,000.00 40,650.00 329,462.00 297,980.00 327,060.00
GROSS PROFIT
Electricity 200.00 200.00 230.00 250.00 250.00 300.00 400.00 400.00 430.00 550.00 550.00 600.00
Water 150.00 150.00 200.00 220.00 220.00 230.00 250.00 250.00 280.00 300.00 300.00 320.00
Telephone, Fax &
Internet Charges 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00
Office Rental 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00
Stationery 100.00 100.00 - - - 200.00 200.00 220.00 250.00 250.00 280.00
Machine
Maintainance - - - - - 60.00 - - - - - 60.00
Petrol, Parking &
Tol Charges 500.00 500.00 550.00 600.00 600.00 650.00 700.00 700.00 720.00 750.00 750.00 800.00
Salary 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
EPF 572.00 572.00 572.00 572.00 572.00 572.00 572.00 572.00 572.00 572.00 572.00 572.00
SOCSO 91.00 91.00 91.00 91.00 91.00 91.00 91.00 91.00 91.00 91.00 91.00 91.00

MARKETING
EXPENSES
Promotion &
Advertising 100.00 - 100.00 - 100.00 - 100.00 100.00 - 100.00 100.00 -

TOTAL EXPENSES 8,913.00 8,813.00 8,943.00 8,933.00 9,033.00 9,303.00 9,513.00 9,313.00 9,513.00 9,813.00 9,813.00 9,923.00 111,826.00 115,000.00 117,000.00

NET PROFIT/NET
LOSS BEFORE TAX 8,649.00 11,837.00 9,057.00 21,717.00 10,967.00 24,347.00 12,487.00 26,337.00 15,487.00 30,837.00 15,187.00 30,727.00 217,636.00 182,980.00 210,060.00

37
 SILICA CREATIVE
PROJECTED CASHFLOWS FOR THE YEAR OF 2014

PROJECTED MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH MONTH
CASHFLOWS Pre 1 2 3 4 5 6 7 8 9 MONTH 10 MONTH 11 MONTH 12 TOTAL

Inflows
Balance B/Forward - 86,100 73,000 65,000 68,000 64,000 66,000 70,000 76,030 82,060 78,190 84,220 92,250 904,850
Sales - Cash - 24,500 24,500 26,600 28,000 28,000 31,500 35,000 35,000 38,500 42,000 42,000 52,500 408,100
Sales - Credit - 10,500 10,500 11,400 12,000 12,000 13,500 15,000 15,000 16,500 18,000 18,000 22,500 174,900
Initial Investment -
Capital 10,000 - - - - - - - - - - - - 10,000
Loan 90,000 - - - - 90,000

Total Inflow 100,000 121,100 108,000 103,000 108,000 104,000 111,000 120,000 126,030 137,060 138,190 144,220 167,250 1,497,850

Less : Outflows
Payment to Suppliers - 45,000 40,000 32,000 41,000 35,000 38,000 40,000 40,000 55,000 50,000 48,000 70,000 534,000
Administrative
Expenses 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 39,000
Marketing Expenses 2,000 100 - 100 - 100 - 100 100 - 100 100 - 2,700
Capital expenses 8,900 - - - - - - - - - - - - 8,900
Financial expenses 870 870 870 870 870 870 870 870 870 870 870 870 870 3,000
Total Outflow 13,900 48,100 43,000 35,000 44,000 38,000 41,000 43,970 43,970 58,870 53,970 51,970 73,870 587,600

Balance C / Forward 86,100 73,000 65,000 68,000 64,000 66,000 70,000 76,030 82,060 78,190 84,220 92,250 93,380 910,250

38
 SILICA CREATIVE
BUDGETED STATEMENT OF COMPREHENSIVE INCOME AT 31 DISEMBER 2014

NON-CURRENT ASSETS
Printing Machine 90,000
Less : Accumulated Depreciation 9,000 81,000
Computers 9,000.00
Less : Accumulated Depreciation 900.00 8,100.00

Office Equipment 6,000.00

Less : Accumulated Depreciation 600.00 5,400.00

Furniture & Fittings 3,000.00

Less : Accumulated Depreciation 300.00 2,700.00
97,200.00

CURRENT ASSETS
Bank 18,640.00
Inventories 77,438.00
Premis Deposit 3,600.00
Utiliti Deposit 3,000.00
Trade Debtors 154,800.00
257,478.00 257,478.00
354,678.00

39
CURRENT LIABILITIES
Trade Creditors 47,042.00

NON-CURRENT LIABILITIES
Bank Loan 90,000.00

REPRESENTED BY : -

Net Profit / (Net Loss) 217,636.00 217,636.00

40
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 354,678.00

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