SECTION 6 FINANCIAL

1.1 Financial Plan

Financial plan play the important part in our company. Financial Plan is a data gathering of the
administration budget, marketing budget and also operation budget. Based on the data given,
financial plan will give us the result of Statement of Comprehensive Income, Statement of
Financial Position and Statement of Cash Flows. We need source of financing to generate our
business run smoothly. Source of financing that we applied in our business are partnership equity
contribution, term loan from bank and hire purchase. We believe in our fundamentals regarding
financial plan which are to give accuracy of our measurement to proposed budget and capital
contribution among us to sustain our business in the current economic situation and also for the
future. Objectives of our Financial Plan are:
 Determining capital demanding to be injected in our company
 Frame financial policies which applied in our company
 To make sure we fully utilize from the budget that we proposed for.
1.2 Financial Forecast
A financial forecast is an estimate of future financial outcomes for a company. Financial
forecasts estimate future income and expenses for a business over a period of time, generally the
next year. We used historical forecasting which is looking at last few annual Income Statements
to see how fast our business grown in the past. From there, we can make a guess about how fast
will it grow this year.

HAUSI SKY ENTERPRISE

FINANCIAL FORECAST
  Actual Forecast
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
2,073,60
1,728,000 2,488,320 2,737,152 3,010,867 3,311,954
Sales 0
     
Less: Cost of sales - - -
71 78 8
 
Opening stock 500 650 5 7 65
898,18 988,00 1,086,80
Purchases 740,621 777,652 816,534 7 6 7
Less: Ending Stock 88 96 1,06
 500 650 800 0 8 5
Carriage inward and Duty    
899,78 989,76 1,088,73
741,121 778,802 817,984
  2 1 7
1,294,79
986,879 1,670,336 1,837,370 2,021,107 2,223,217
Gross Profit 8
     
Less: Expenditure - - -
1,163,07 1,279,38 1,407,32
1,006,99 6 4 2
Administrative Expenditure 959,040 2 1,057,342
8,7 9,6 10,56
Marketing Expenditure 7,200 7,560 7,938 32 05 5
43 47 5
Other Expenditure 355 373 391 0 3 20
1,1 1,2 1,33
Business Registration & Licenses 350   1,000 00 10 1

Insurance & Road Tax 1,000 1,000   - - -

Other Pre-Operation Expenditure       - - -

Invest on Hire Purchase       - - -

2,7 3,0 3,32
Interest on Loan 2,498 2,498 2,498 48 23 5
21,00 23,11 25,42
Depreciation of Fixed Assets 19,099 19,099 19,099 9 0 1
92,94 102,24 112,46
Operation Expenditure 76,640 80,472 84,496 6 0 4
1,290,04 1,419,04 1,560,94
1,117,99 0 4 9
Total Expenditures 1,066,182 4 1,172,764
547,32 602,06 662,26
Net Profit Before Tax (79,303) 176,804 497,572 9 2 8

Tax - - - - - -
547,32 602,06 662,26
Net Profit (79,303) 176,804 497,572 9 2 8
Hausi Sky Balance Sheet

A Pro-forma balance sheet summarizes the projected future status of a company after a planned
transaction, based on the current financial statements. A Pro-forma Balance Sheet successfully
outlines the entire critical information of the company. Pro Forma is a particular term that is
utilized to depict monetary report in a better route through set number of suppositions.

HAUSI SKY ENTERPRISE

BALANCE SHEET
  Actual Forecast
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
ASSETS        
Current Assets        
1,055,23 1,160,75 1,276,83
Cash 178,208 407,297 959,305 6 9 5

Accounts Receivable     - - -

Stock of Raw Material 0 0 0 - - -

8 9 1,0
Stock of Finished Good 500 650 800 80 68 65
1,056,11 1,161,72 1,277,90
Total Current Assets 178,708 407,947 960,105 6 7 0
     
NON-CURRENT ASSETS    
Land & Building - - - - - -
6 7 79
Computer 1,200 900 600 60 26 9
4,40 4,84 5,3
Renovation 8,000 6,000 4,000 0 0 24
3 4 45
Printer, Fax & WIFI 680 510 340 74 11 3
2,59 2,85 3,1
Office Equipment, Furniture & Fitting 4,716 3,573 2,358 4 3 38
6 7 79
Signboard 1,200 900 600 60 26 9
2,53 2,78 3,0
Machine, Equipment & Furniture 4,600 3,450 2,300 0 3 61
 30,80 33,88 37,26
Van 56,000 42,000 28,000 0 0 8
42,01 46,22 50,84
Total Non-Current Assets 76,396 57,333 38,198 8 0 2
     
Other Assets    
15,54 17,09 18,80
Deposit 14,130 14,130 14,130 3 7 7
     
1,012,43 1,113,67 1,225,04 1,347,54
Total Assets 269,234 479,410 3 6 4 8
     
LIABILITIES & EQUITY    
Current Liabilities    
185,34 203,87 224,26
Accounts Payable 92,578 129,609 168,491 0 4 2
185,34 203,87 224,26
Total Current Liabilities 92,578 129,609 168,491 0 4 2
     
Non-current Liabilities    
38,46 42,31 46,54
Loan 44,960 39,964 34,969 6 2 4
Hire Purchase Balance - - - - - -
38,46 42,31 46,54
Total Non-current Liabilities 44,960 39,964 34,969 6 2 4
     
EQUITY    
231,00 254,10 279,51
Owner’s Capital 210,000 210,000 210,000 0 0 0
(79,30 176,8 497,57 547,32 602,06 662,26
Accumulated Profit 3) 04 2 9 2 8
778,32 856,16 941,77
Total Equity 130,697 386,804 707,572 9 2 8
1,002,13 1,102,34 1,212,58
Total Liabilities & Equity 268,235 556,377 911,032 5 9 4
1.3 Income Statement

The profit and loss of the company is distributed among the shareholders according to the
percentage of their capital equity. An income statement is a financial statement that shows you
how profitable your business was over a given reporting period. It shows your revenue, minus
your expenses and losses. Small businesses typically start producing income statements when a
bank or investor wants to see how profitable their business is.

HAUSI SKY ENTERPRISE

INCOME STATEMENT
  Year 1 Year 2 Year 3
Sales 1,728,000 2,073,600 2,488,320
Less: Cost of sales
Opening stock 500 650
Purchases 740,621 777,652 816,534
Less: Ending Stock 500 650 800
Carriage inward and Duty
  741,121 778,802 817,984
Gross Profit 986,879 1,294,798 1,670,336
Less: Expenditure
Administrative Expenditure 959,040 1,006,992 1,057,342
Marketing Expenditure 7,200 7,560 7,938
Other Expenditure 355 373 391
Business Registration & Licenses 350 1,000
Insurance & Road Tax for motor vehicle 1,000 1,000
Other Pre-Operation Expenditure
Invest on Hire Purchase
Interest on Loan 2,498 2,498 2,498
Depreciation of Fixed Assets 19,099 19,099 19,099
Operation Expenditure 76,640 80,472 84,496
Total Expenditures 1,066,182 1,117,994 1,172,764
Net Profit Before Tax (79,303) 176,804 497,572
Tax - - -
 Net Profit (79,303) 176,804 497,572

1.4 Cash Flow Statement

Cash flow is the estimated amount of cash inflows and outflows expected in one or more future
periods. This information may be developed as part of the annual budgeting or forecasting
process, or it may be created as part of a specific request for cash flow information, as may be
required by a prospective lender or investor.

HAUSI SKY ENTERPRISE

PRO-FORMA CASH FLOW STATEMENT
  Year 1 Year 2 Year 3
CASH INFLOW      
Capital (Cash) 210,000    
Loan 49,955    
Cash Sales 1,728,000 2,073,000 2,488,320
       
TOTAL CASH INFLOW 1,987,955 2,073,000 2,488,320
       
CASH OUTFLOW      
Administrative Expenditure      
Workers’ salaries 190,800 200,340 210,357
Stationary item 6,240 6,552 6,880
Utilities 12,000 12,600 13,230
Shop Rental 30,000 31,500 33,075
Capital 720,000 756,000 793,800
       
Marketing Expenditure      
Business Card 600 630 662
Brochure 1,200 1,260 1,323
Flyer 1,800 1,890 1,985
Transportation 3,600 3,780 3,959
       
Operations Expenditure      
Cash Purchase      
Payment of Account Payable 648,043 740,621 777.652
Carriage inward and Duty      
Salaries, EPF, & SOCSO 26,390 27,710 29,095
Wages      
Petrol 4,800 5,040 5,292
Depreciation Van 42,000 44,100 46,305
Depreciation Machine/Equipment/Furniture 3,450 3,623 3,804
Other Expenditure 355 373 391
Pre-Operation      
Deposit (rent,utilities,etc) 14,130    
Business Registration & Licenses 350    
Insurance & Road Tax 1,000 1,000 1,000
Other Pre-Operation Expenditure      
       
Fixed Assets      
Purchase Of Fixed Assets- Land & Building      
Purchase of Fixed Assets - Others 95,495    
Hire Purchase Down Payment      
Hire Purchase Repayment      
Principal      
Interest      
Loan Repayment      
Principal 4,996 4,996 4,996
interest 2,496 2,496 2,496
Tax payable 0 0 0
TOTAL CASH OUTFLOW 1,809,745 1,844,511 1,159,428
CASH SURPLUS/ DEFICIT 178,210 228,489 1,328,892
BEGINNING CASH BALANCE  - 178,210 406,699
ENDING CASH BALANCE 178,210 406,699 1,735,591
1.5 Cost Control
Cost control is the practice of identifying and reducing business expenses to increase profits, and
it starts with the budgeting process. A business owner compares the company's actual financial
results with the budgeted expectations, and if actual costs are higher than planned, management
has the information it needs to take action.
Project Implementation Cost
Project implementation (or project execution) is the phase where visions and plans become
reality. This is the logical conclusion, after evaluating, deciding, visioning, planning, applying
for funds and finding the financial resources of a project. Technical implementation is one part of
executing a project.
Capital Expenditure

Capital expenditure or capital expense (capex) is an expense where the benefit continues over a
long period, rather than being exhausted in a short period. Such expenditure is of a non-recurring
nature and results in acquisition of permanent assets. It is thus distinct from a recurring expense.
1.6 Breakeven Analysis
A break-even analysis is a financial tool which helps you to determine at what stage your
company, or a new service or a product, will be profitable. In other words, it’s a financial
calculation for determining the number of products or services a company should sell to cover its
costs (particularly fixed costs). Break-even is a situation where you are neither making money
nor losing money, but all your costs have been covered. Break-even analysis is useful in studying
the relation between the variable cost, fixed cost and revenue. Generally, a company with low
fixed costs will have a low break-even point of sale. For an example, a company has a fixed cost
of Rs.0 (zero) will automatically have broken even upon the first sale of its product.

Units Revenue Cost Profit

34560 1,728,000 1,820,904 -79,303
41472 2,073,600 1,820,904 176,804
49766 2,488,320 1,820,904 497,572
54743 2,737,152 1,820,904 547,329
60217 3,010,867 1,820,904 602,062
66239 3,311,957 1,820,904 662,268

Breakeven Analysis
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
34560 41472 49766 54743 60217 66239
-500,000

Revenue Cost Profit

1.7 Budgeting Plans

Budgeting is the process of creating a plan to spend your money. This spending plan is called a
budget. Creating this spending plan allows you to determine in advance whether you will have
enough money to do the things you need to do or would like to do.

HAUSI SKY ENTERPRISE

BUDGETING PLAN
Year 1 BALANCE   -79,303
Year 1 INCOME   986,879
  Income Gross Profit 986,879
Year 1 EXPENSES   1,066,182
  Expense Administrative Expenditure 959,040
  Expense Marketing Expenditure 7,200
  Expense Other Expenditure 355
  Expense Business Registration & Licenses 350
  Expense Insurance & Road Tax 1,000
  Expense Other Pre-Operation Expenditure  
  Expense Invest on Hire Purchase  
  Expense Interest on Loan 2,498
  Expense Depreciation of Fixed Assets 19,099
  Expense Operation Expenditure 76,640
Year 2 BALANCE   176,804
Year 2 INCOME   1,294,798
  Income Gross Profit 1,294,798
Year 2 EXPENSES   1,117,994
  Expense Administrative Expenditure 1,006,992
  Expense Marketing Expenditure 7,560
  Expense Other Expenditure 373
  Expense Business Registration & Licenses  
  Expense Insurance & Road Tax 1,000
  Expense Other Pre-Operation Expenditure  
  Expense Invest on Hire Purchase  
  Expense Interest on Loan 2,498
  Expense Depreciation of Fixed Assets 19,099
  Expense Operation Expenditure 80,472
Year 3 BALANCE   497,572
Year 3 INCOME   1,670,336
  Income Gross Profit 1,670,336
 Year 3 EXPENSES   1,172,764
  Expense Administrative Expenditure 1,057,342
  Expense Marketing Expenditure 7,938
  Expense Other Expenditure 391
  Expense Business Registration & licenses 1,000
  Expense Insurance & Road Tax  
  Expense Other Pre-Operation Expenditure  
  Expense Invest on Hire Purchase  
  Expense Interest on Loan 2,498
  Expense Depreciation of Fixed Assets 19,099
  Expense Operation Expenditure 84,496

HAUSI SKY ENTERPRISE

BUDGETING PLAN
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

     
Less: Expenditure - - -
1,057,34 1,163,0 1,279,3 1,407,32
Administrative Expenditure 959,040 1,006,992 2 76 84 2
8,7 9,6 10,5
Marketing Expenditure 7,200 7,560 7,938 32 05 65
4 4 5
Other Expenditure 355 373 391 30 73 20
Business Registration & 1,1 1,2 1,3
licenses 350   1,000 00 10 31

Insurance & Road Tax 1,000 1,000   - - -

Other Pre-Operation
Expenditure       - - -

Invest on Hire Purchase       - - -

2,7 3,0 3,3
Interest on Loan 2,498 2,498 2,498 48 23 25
21,0 23,1 25,4
Depreciation of Fixed Assets 19,099 19,099 19,099 09 10 21
92,9 102,24 112,4
Operation Expenditure 76,640 80,472 84,496 46 0 64
1,066,18 1,117,9 1,172,7 1,290,0 1,419,0 1,560,94
Total Expenditures 2 94 64 40 44 9
986,87 1,294,7 1,670,3 1,837,3 2,021,1 2,223,21
Gross Profit 9 98 36 70 07 7
(79,30 97,5 595,0 1,142,4 1,744,4 2,406,73
Net 3) 01 73 02 64 3
Financial Performance
Financial performance is a subjective measure of how well a firm can use assets from its primary
mode of business and generate revenues. This term is also used as a general measure of a firm's
overall financial health over a given period of time, and can be used to compare similar firms
across the same industry or to compare industries or sectors in aggregation.