Prepared By:

Student name : Norhawani Binti Sayuti

Student ID : 2019345979
Class : NBH4A

Prepared for:
Madam Shahira Binti Ariffin
Finance, most simply put, is the
study of money, banking, credit,
investments, assets and liabilities
through financial statements. These
statements include balance sheets,
cash flow statements, etc. and are
produced as a result of accounting
activities.

Finance plays an integral role in the

machinery of any organizations, be it
a start-up or a multinational
corporation.

Finance assignments help students

understand asset management,
auditing, tax and leverage
management and thus, the making of
cost-based decisions. Students often
need finance assignment samples
for case studies and reports, which
are the most common among finance
assignments.

2
Encik Azahari Bin Azizan is currently working in a government sector as a
Assistant Architect for 8 years at Dewan Bandaraya Kuala Lumpur. He is 38
years old. He is a husband and father of two childrens.
He married with Puan Sarah Binti Ahmad who is a fulltime housewife. Therefore
he is a sole breadwinner and earns RM7,500 salary per month. He is also pay
income tax from his gross salary.

For information, his first child is M. Ashyraf, 14 years old is currently studies at
secondary school and the second child is M. Amsyar 9 years old who is currently
studies at primary school. They ‘re happily lives at Sungai Buloh and has been
living in a double storey house almost 12 years after Encik Azahari bought it for
his family.
Besides that, Encik Azahari owns Honda HRV as a family car and Perodua Myvi
used for daily used. Puan sarah use the Produa Myvi to go buy groceries at
market.

3
Financial Information

44
Monthly Expenses

5
Balance Sheet

6
 Information

Based on the balance sheet

as at 31 December 2020, Encik
Shaful have the amount of total
assets is RM712,500 which is
quite high. The liquid assets are
on saving accounts and cash on
hand at RM 1,000 in total.

Encik Shaful also have a lifestyle assets which is he has own Honda HRV as
a family car , still on loan outstanding and also Perodua Myvi which fully paid since
5 years ago and used as a daily car in the family.

Encik Shaful also bought a house located at Sungai Buloh for his family that
they are living with market value RM 550,000 of the purchase price since 10 years
ago.
It is a good investment that the area where Encik Shaful living is a strategic
development area and value for future.
The laptop is very useful for Encik Shaful and family because sometimes he have to
work from home and also for their children’s studies. Encik Shaful has a wife which
is a housewife and 2 children 14years old and the younger is 9 years old. School
expenses for 2 children per month are RM400.

The current liabilities are only on credit card and TNB bill outstanding at the
amaunt of RM10,500 in total. The non liabilities of Encik Shaful is Honda HRV at
total balance RM 98,000 and mortgage house loan balances at total RM 350,000.
Meanwhile, Encik Shaful have a saving at Tabung Haji and ASB as a backup money
for the future used in case an emergency incurred.

7
Cash Flow Statement

8
 Total Income Encik Shaful and family

Basically, the main income of Encik Shaful and family is totally on the salary
of 71% in which RM 90,000 annually. Therefore Encik Shaful is the sole
breadwinner and earns RM 7,500 per month and a bonus of 1 month salary
which is 29%. Here, to state further the below shows the details of the annual
expenses of Encik Shaful and family :

9
Annual Expenses Encik Shaful and Family
 Ratios

Liquid assets Current Debt Debt service

to take home ratio ratio ratio
pay ratio 2.19 times 64.40% 0.68%
1.08%

Liquid assets to take home pay ratio for Encik Shaful must have liquid
assets equal to 3-6 months worth of the take home pay in order to be on
the safe side.

= 2.19 times

The current ratio should be more than 1 in order to maintain liquidity.

Encik Shaful has slightly high liquidity position.

10
Level of Debt

Encik Shaful debt ratio is high. For a person working in a government

sector, this ratio should be no more than 30%, meaning that Encik Shaful
may face difficulties in getting new loans since Encik Shaful ability to pay
debts has decreased.

This means Encik Shaful earns RM0.68 in take home pay for each RM
1.00 of required debt repayment and interest. The higher the ratio, the
better because it means that Encik Shaful has the ability to make
payments.

11
Income Tax Year Assessment 2020

12
 Comment and Advice
Base on the balance sheet , it is good for Encik Shaful family because
the family has a contribution to savings where the assets are large enough to
cover the liabilities in which the total assets are RM 712,000 and total
liabilities RM 448,000.
It is not a major problem for him to pay its current debts based on the
percentages of ratio.

In current liabilities, Encik Shaful has a credit card outstanding

amount RM 10,000 and generally he knows that credit cards can be major
debts traps but it is unrealistic not to own any in the contemporary world and
they have application other than as a tools to buy things. The main points is
Encik Shaful needs to manage wisely in which can contribute more to saving
and investment.

Referring to the cash flow statement, Encik Shaful and family

experience a contribution to savings because the total income is bigger than
total expenses which is the amount to saving is RM 7,300. Currently, it
shows that positives in cash flow even though the expenses are quite high.

Insurance planning is one of the part and parcel of todays life. Encik
Shaful build his wealth because it is important to protect his assets against
any unforeseen events while not as direct a way of saving as investment.
Insurance planning can save significant amounts of money over the long
term.

Investment planning is a crucial part of gain more income. En Shaful

should invest his money to get returns for future used. The increase in cash
flow can lead to an increase in capital. It is can allow En Shaful to consider
investment to improve his overall financial well being. Refering to the balance
sheet, Encik Shaful investing assets saving at Tabung Haji.

Retirement savings needs to become a priority instead of an

afterthought. This is involved in the process of estimating and other needs
and determining how these needs can be met if Encik Shaful no longer
working. As a government servant, it is beneficial to him who working that
rely on pensions, gratuity and any other employer sponsored retirement
plans during retirement.

Encik Shaful assets are protected if the beneficiary is involved in any legal
difficulties such as bankruptcy. Lastly, Encik Shaful should update his will in
which assets, liabilities and goals all change from time to time and he will
should reflect these changes. It is good reviewing En Shaful and family will
on a regular basis with expert who can point out any problem that will lead to
much risk, inefficient taxation and other issues that may interfere with his
goals.

13
 Reference

Personal Financial Planning _ Masitah Hashim ( Penerbit Press UiTM)

Private Pension Administration

https://www.ppa.my/

http://www.segikl.edu.my/personal-financial-planning/