FACULTY OF BUSINESS MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) HUMAH RESOURCES

SUBJECT: INTRODUCTION OF FINANCIAL MANAGEMENT (FIN420)

ASSIGNMENT 3: CONSTRUCT A CASH BUDGET (GROUP TASK)_DUTCH LADY

COMPANY

Prepared by:

STUDENT NAME ID STUDENT

NUR MUNIRAH AYUNI BINTI YAZLI 2021101749

NURIN NAQIBAH NAJLA BINTI MOHD GHAZALI 2021504913

NURJASMIN SHAHIDA BINTI AHMAD RUSLAN 2021196655

MASHITAH BINTI JOHAN 2021393791

LECTURER: DR HAMIZAH BINTI HASSAN

DUE DATE: 28 JULY 2021
TABLE OF CONTENT
NO CONTENT PAGES

1 ACKNOWLEDGEMENT 1
2 INTRODUCTION 2
3 COMPANY BACKGROUNDS 3
4 CASH BUDGET 4
5 COMPANY PLANNING 5-6
6 ADDITIONAL INFORMATION 7
7 CONCLUSION 8
8 REFERENCES 9
1.0 ACKNOWLEDGEMENT

Alhamdulillah, first of all I want to thanks God as finally we were able to finish our

assignment that have given by our financial’s lecturer to us. Thus this task had been done with all

effort by this group members because without the effort and cooperation from our group members,

this assignment cannot be done on the time give. Hence, thank you to this group members. Other

than that, we want to express our gratitude by saying thank you and give a really big appreciation

to our beloved lecture which is Dr Hamizah binti Hassan because give us opportunity to complete

this assignment and always guide and teach us patiently. Dr always give us support and always

answer our question on how to do our assignment in purpose to produce a good outcome. In

addition, Dr also inspired use greatly to work in this project. We also want to thanks Dr because

teach us FIN420 subject. After that, we want to thanks our family because always give full support

and understand us as a student, and give a chance for us complete this assignment peacefully. We

are very grateful to have a very understand family. Last but not least, is we want to thanks to the

University Technology Mara (UiTM) campus Kedah for giving us opportunity to conduct this

Cash Budget assignment, because of this we can gain our knowledges.

1
2.0 INTRODUCTION

Cash budget is a composed gauge of an association's future money position. It forecasts for

some future duration the money receipts from various sources, cash dispensing for various

purposes and the subsequent money position commonly consistently as the spending time frame

creates. It is a conventional show of-anticipated round progression of money through the business.

The standard conjecture time of money spending plan is one year separated by month to

month durations. This permits fuse of occasional varieties in income. At the point when incomes

are generally steady, the money chief might plan financial plan for full one year time span. At the

point when the standpoint is extremely dubious, he might need to be happy with a projection for

just quarterly.

Cash budget is not quite the same as pay explanation. It is portrays development of money

while the projected pay explanation presents represent all kinds of revenue to be tapped and for all

classes of costs to be brought about during an expressed period and show how much benefit is

relied upon to be procured in a future period.

Receipts from offer of stocks and bonds and receipts from offer of fixed resources are

likewise considered as money financial plan either from pay and non-pay. It don't show up in the

pay proclamation. Moreover, cash spending plan accommodates a wide range of money outgo

including installments of costs accumulated in the earlier periods, the estimate time frame, or the

prepayments. Payment in regard of acquisition of fixed resources or profit dispersion would not

discover place in the pay articulation. Essentially, there are sure things that would show up in the

pay explanation yet are excluded from the money financial plan.

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3.0 COMPANY’S BACKGROUND

Dutch Lady Milk Industries Berhad “Dutch Lady Malaysia” is a leader in the quality branded dairy

business in Malaysia. It was established in 1963, and was the first milk company in Malaysia to

be listed Bursa Malaysia the local Stock Exchange in 1968. Dutch Lady Milk Industries Berhad is

owned by Royal Friesland Campina, a Dutch multinational corporation and one of the largest milk

companies in the world.

Dutch Lady Milk is consumer products and service. Basically, customers demand and

requirements are met via products, which are physical connections, services, and symbolic

qualities. The Halal Hub Division of the Department of Islamic Development, Malaysia (JAKIM)

and the necessary recognized Foreign Halal Certification Bodies and Authorities have certified

Dutch Lady Malaysia’s products as Halal. Every local Dutch Lady product has the official JAKIM

Halal emblem embossed on it. Imported Dutch Lady’s products are certified Halal Certification

Bodies recognized by JAKIM in their respective countries of origin.

The vision for Dutch Lady Milk Industries Berhad is “To further strengthen our position

as the leading dairy company, driving growth”. In line with Dutch Lady Milk Industries Berhad

mission”, Dutch Lady Milk Industries Berhad aim to continue developing products that contribute

to healthy society. The year saw the Dutch Lady involved in the biggest and most in-depth

nutritional study in the region, organized by their parent company.

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 4.0 CASH BUDGET

DUTCH LADY COMPANY

Cash Budget for the year of 2021 and 2022 (RM)
JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY
SALES 120,100 130,200 133,350 131,666 134,311 136,340 150,100 131,099 122,501 124,387 145,446 130,652 151,320 200,644

Cash receipts:
Cash (20%) 26,670.00 26,333.20 26,862.20 27,268.00 30,020.00 26,219.80 24,500.20 24,877.40 29,089.20 26,130.40 30,264.00 401,288.00
Lagged 1 months (50%) 65,100.00 66,675.00 65,833.00 67,155.50 68,170.00 750,050.00 65,549.50 61,250.50 62,193.50 72,723.00 65,326.00 75,660.00
Lagged 2 months (30%) 36,030.00 39,060.00 40,005.00 39,499.80 40,299.30 40,902.00 45,030.00 39,329.70 36,750.30 37,316.10 43,633.80 39,195.60
Total Cash Receipt 127,800.00 132,068.20 132,700.20 133,923.30 138,489.30 817,171.80 135,079.70 125,457.60 128,033.00 136,169.50 139,223.80 516,143.60

Purchases( 50%) 60,050 65,100 66,675 65,833 67,155.50 68,170 75,050 65,549.50 61,250.50 62,193.50 727,223 65,326 75,660 100,322

Cash disbursements:
Cash (25%) 16,668.75 16,458.25 16,788.88 17,042.50 18,762.50 16,387.38 15,312.63 15,548.38 181,805.75 16,331.50 18,915 41,613.00
Lagged 1 months (55%) 35,805.00 36,671.25 36,208.15 36,935.53 37,493.50 41,277.50 36,052.23 33,687.78 34,206.43 399,972.65 35,929.30 55,177.10
Lagged 2 months (20%) 12,010.00 13,020.00 13,335.00 13,166.60 13,431.10 13,634.00 15,010.00 13,109.90 12,250.10 12,438.70 145,444.60 13,065.20
Operating Expenses 16,675 16,675 16,675 16,675 16,675 16,675 16,675 16,675 16,675 16,675 16,675 16,675
Tax Expenses 8,049 8,049.00 8,049.00 8049
Total Cash Disbursement 81,158.75 90,873.50 83,007.03 83,819.63 94,411.10 87,973.88 83,049.86 87,070.06 244,937.28 445,417.85 225,012.90 126,530.30
Net Cash Flow 46,641.25 41,194.70 49,693.17 50,103.67 44,078.20 729,197.92 52,029.84 38,387.54 - 116,904.28 - 309,248.35 - 85,789.10 389,613.30
Beginning Cash Balance 13,550 60,191.25 101,385.95 151,079.12 201,182.79 245,260.99 974,458.91 1,026,488.75 1,064,876.29 947,972.01 638,723.66 552,934.56
Ending Cash Balance 60,191.25 101,385.95 151,079.12 201,182.79 245,260.99 974,458.91 1,026,488.75 1,064,876.29 947,972.01 638,723.66 552,934.56 942,547.86
Minimum Cash Balance 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Surplus/Deficit 48,191.25 89,385.95 139,079.12 189,182.79 233,260.99 962,458.91 1,014,488.75 1,052,876.29 935,972.01 626,723.66 540,934.56 930,547.86

4
5.0 COMPANY PLANNING

Based on the cash budget attached in this report, the project condition are stabilize and slightly

increase from year 2021 to 2022. In this cases, the forecasting cash budget increasing about half

million.

For the sales of Dutch lady Milk Industries Bhd for the quarter 3 of 2021 are decrease

which is on August and September. It is affected due to strict Movement Control Order (MCO)

which is people are strictly cannot go out without any strong reason. There are a few factors that

contribute to sales decrease. First by economy, it is because of many people was affected in term

of financial due to the bad economic during this pandemic. Hence, most of people does not have

enough money to buy the wants item and they usually will buys the needs item. Other than that

during this pandemic most of the company cannot make an operation as usual which is their need

to close the company for a while, this also give the affects to the sale of Dutch Lady on august and

September in 2021.

Other than that, for the fourth quarter of the 2021 which is October, November and

December Dutch Lady make more profits which sales during fourth quarter was increase compared

to third quarter which is Dutch Lady suffered loss. This is because basically because of the loose

of MCO which is it was not really strict as at third quarter. Moreover, people can go out to work

and company also can operate with follow SOP prescribe by the government. Hence Dutch Lady

Company can manages their economy and recovering slowly over time.

After that, for the first quarter at 2022 the sales of Dutch Lady Company was drop compare

to quarter fourth in 2021. It was may be because of the lack marketing strategy which is Dutch

lady Company does not choose the appropriate target market, brand positioning, price, and

distribution channels. This can have a significant influence on a product's sales. To increase their

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sales Dutch lady need focus more on their strategy marketing make a SWOT analysis of their

company and fixed the problem or make an improvements. This is because the company's

marketing approach in relation to its product has a significant impact on sales.

Next is second quarter of 2022 was increasing compared to first quarter of 2022 it is may

because of Dutch Lady Company make an SWOT analysis and improve their marketing strategy

such as sold their product at online platform such as Shopee and Lazada. They also may be build

one website to customer buy their product online, it because people nowadays was love to shopping

online rather than physical shopping. This is due to the Covid-19 people feel more save when their

shopping online. Other than that, Dutch Lady Company may make an improvement into their

expenses to make their operation more fast such as add new machine, by indirectly it also can

decrease the cost of man power. Other than that Dutch Lady also make an improvement on their

packaging which make it more fancy to attract customers attention.

The last is on third quarter on 2022 which is it sales on Dutch Lady Company were stable

until end of the year. This might be due to the Dutch Lady Company's efforts to establish a safe

shopping environment for customers, since they offer home delivery services. Other than that they

may be have more better understanding about their competitors and always try to be one step

forward from their competitors and also more understand what customer wants.

6
6.0 ADDITIONAL INFORMATION

The total sales of Dutch Lady Milk Industries Bhd in August 2021 to July 2022 are as follows:

Month Total Sales (RM) Month Total Sales (RM)

August 133,350 February 122,501

September 131,666 March 124,387

October 134,311 April 145,446

November 136,340 May 130,652

December 150,100 June 151,320

January 131,099 July 200,644

a) In the past 20 percent of sales were on a cash basis, and it shows 50 percent of credit sales

are collected in the month after sales and the remainder are collected in the second month

after the sales occurred.

b) Purchases are 50 percent of each month sales, 25 percent of which are paid in cash, 55

percent are paid one month later and the remaining is paid two months after the purchases.

c) The company fixed monthly expenses are RM 16,675 for operating expenses, RM 8,049

for tax expenses at the end of each quarter.

d) The ending cash balance on July 2021 is RM 13, 550 and the company has a policy of

maintaining a minimum cash balance of RM 12,000.

7
7.0 CONCLUSION

In summary, this cash budget analysis covers the years 2021 and 2022. We may conclude that for

the years 2021 and 2022, this cash budget has indicated the occurrence of overall rises and losses.

The total cash receipts (TR) for 2021, which will begin in August and September, have been raised

marginally from RM127,800.00 to RM132,068.20. The amount of total cash receipts has increased

from October to December, reaching RM132,700.20, RM133,923.30 and RM138,498

correspondingly. Total cash receipts for 2022 are presented for the first quarter, which shows a

decline in value from January to March. It is worth climbing by RM128,033.00, 136,169.50 and

139,233.80 from April to June. It increased to RM516,143.60 in July.

The total disbursement (TD) for each month from August 2021 to July 2022 also differs,

rising from RM81,158.75 to RM90,873.50 from August to September. The amount shows a slight

increase from October to December in the fourth quarter of 2021. In the first quarter of 2022, the

TD increased in January, decreased in February and increased again in March. However, in the

second quarter, from April to June, the amount was RM244,937.28, increased to RM445,417.85

in May and decreased to RM225,012.90 in June. Lastly, for the fourth quarter of 2022, which

ended in July, it showed that it decreased back to RM96,433.70.

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8.0 REFERENCES

Manisha Tanwar. (n.d.). Cash Budget: Meaning, Objectives and Utility | Financial Management.

Retrieved from https://www.yourarticlelibrary.com/accounting/cash-budget/cash-budget-

meaning-objectives-and-utility-financial-management/71710

Hitesh Bhasin (2018, February 21). Factors affecting Sales of a Product. Retrieved from

https://www.marketing91.com/factors-affecting-sales-product/

7.5 Cash Budgets | Managerial Accounting. (2016, August 9). Lumen.

https://courses.lumenlearning.com/sac-managacct/chapter/cash-budgets/

Wikipedia contributors. (2021, June 21). Dutch Lady Milk Industries Berhad. Wikipedia.

https://en.wikipedia.org/wiki/Dutch_Lady_Milk_Industries_Berhad

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7/28/2021 Turnitin

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FIN420 By NURIN NAJLA

4% match (student papers from 12-Mar-2019)

Submitted to Stratford University on 2019-03-12

2% match (student papers from 28-Nov-2019)

Submitted to Swinburne University of Technology on 2019-11-28

2% match (student papers from 18-May-2017)

Submitted to Laureate Education Inc. on 2017-05-18

1% match (student papers from 07-May-2020)

Submitted to Universiti Teknologi MARA on 2020-05-07

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Submitted to Universiti Teknologi MARA on 2016-01-26

1% match (student papers from 30-Jun-2021)

Submitted to Taylor’s Education Group on 2021-06-30

1% match (student papers from 20-Jun-2010)

Submitted to SEGi College (KL) Sdn Bhd on 2010-06-20

1% match (Internet from 10-Jan-2021)

https://www.dutchlady.com.my/our-company/about-us/

1% match (Internet from 19-Nov-2020)

https://silo.pub/cost-management-accounting-and-control-6th-edition.html

1% match (Internet from 14-Feb-2017)

http://www.umac.mo/news-centre/news-and-events/event-calendar/20030307/

1% match (publications)
"Finance", Wiley, 2015

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2.0 INTRODUCTION Cash budget is a composed gauge of an association's

future money position. It forecasts for some future duration the money
receipts from various sources, cash dispensing for various purposes and
the subsequent money position commonly consistently as the spending
time frame creates. It is a conventional show of-anticipated round
progression of money through the business. The standard conjecture time
of money spending plan is one year separated by month to month
durations. This permits fuse of occasional varieties in income. At the point
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