INTRODUCTION TO FINANCIAL PLAN

The main reason why people set up a business is to make profit. If they are not
successful, they may be suffering loss. When we are involved in the business, we should
prepare to face any problems that will occur in the business. Then, they will be feeling
satisfied if their business is success and make more profits. Therefore, most of businessman
will prepare a financial plan as one of the first step when they want to open a business.

Financial is the most important element in completing a business report. Its function is
to record all the financial performance of the business. It also uses to determine the cost that
involves starting the business, capital structure and depreciation for fixed assets, cash flow in
the business, business scope and prospects.
The main objective to make this financial plan is to determine the project
implementation cost; sources of project financing, profit and loss account also a balance
sheet.
The financial plan is a plan that shows the short and long-term financial requirements
in order to start a new business. It also shows how the requirements are going to be financed
by using internal and external resources.
The financial matter is under the preview of financial of manager. A financial manager
is required to prepare:

o Overall financial plans for the company activities and to be presented to the
management at required duration.
o Advised on good financial management and cost control program which in
turn could lead better production cost.

FINANCIAL SOURCES

For all new Bumiputera entrepreneurs, especially who were involve in small and
medium industries, there have a Financial Institution which give financial support and also
guidelines to run the business. They are:

BANK RAKYAT MALAYSIA BERHAD

There are some private banks also who can give financial support to all entrepreneurs in any
business. Besides financial support, they also give guidelines to those who want to apply the
financial support, which includes workshops and also on-going advice while the business is
running.

GOALS AND OBJECTIVES OF FINANCIAL PLAN

To determine the amount of money to be invested base to the project cost

To determine the cost incurred in starting the business.

To identify and propose the relevant sources of fund

To ensure that the initial capital is sufficient

To appraise the viability before actual investment is committed

As a guideline for implementation

To know the business potential

STRATEGIES OF FINANCIAL PLAN

To ensure the cash flow in hand always sufficient and available to finance the
business expenses required

To ensure the profit rate for the business will keep and increasing in order to
consolidated

To guide and make sure the business cash flow

Clever in finding space or potential opportunities to strength position.

JENTERA MAJU Sdn. Bhd. starts the business with capital RM

1000,000.00. This capital collecting from the contributed of 5 partnership
members, which is every partner, contributed about RM 200,000.00. For
additional capital, we had made loan from Bank Rakyat Malaysia Berhad
which given us RM 462,778with 7% interest rate.
1. The relationship between financial planning with others input or
department is:

Operation expenditure-cost of fixed asset and monthly

expenditure

Marketing expenditure-cost of promotion and

signboard, business card, banner, and also monthly
expenditure.

Administrative Expenditure-cost of office equipment

and monthly expenditure.

In this financial planning also included the financial statements with the table and the statements
which are related:

Project Implementation Cost Schedule

Resources Implementation Project
Loan Amortization Schedule
Hire Purchases Payment Schedule
Depreciation Schedule
Purchases And Payment Schedule For the Year 2011-2013
Cash Flow Pro-Forma Statement For the Year 2011-2013

Profit And Loss Account For the Year 2011-2013

Balance Sheet For the year 2011-2013

The Financial Planning activity involves the following tasks;

Assess the business environment

Confirm the business vision and objectives

Identify the types of resources needed to achieve these objectives

Quantify the amount of resource (labor, equipment, materials)

Calculate the total cost of each type of resource

Summarize the costs to create a budget

Identify any risks and issues with the budget se

ADMINISTRATION BUDGET

MARKETING BUDGET

SALES AND PURCHASES

OPERATIONS BUDGET

PROJECT IMPLEMENTATION
COST AND SOURCE OF FINANCE

FINANCIAL RATIO
JENTERA MAJU SDN. BHD.

The Current Ratio is the ability of our company asset to pay for any liability or debt. From
the graph it shows that our company have gain 3.10% I the first year. In the second year, the
ratio increase softly to 4.01% and it has increase unexpectedly to 5.23% in the third year. It
means that our company has more asset than debt and our company wills growth from year to
year. So, our company is reliable and viable for this business.

The Quick Ratio show that how fast our company can get the money to pay for debt in the
first year. The graph shows that our company have gain 3.09%.Then the graph have increase
softly to 4.00% in the second year and the third year the graph have increase unexpectedly to
5.22%. It means that our company can get the money faster to pay the debt. So, it will be
faster to our company to get more projects to another year

The Return on Sales graph shows that how much money or profit that our company gain from
the service. Our company has gain 2% in the beginning year. In the second year it has
increase to 8% and then it go up suddenly to 15% at the third year. The profit will increase
more from year to year and our company asset will be strong. So, our company will sustain in
the market for a long time.

The Return on Equity graph shows that how much our company can return the service from
the machine or equipment that we by to operate the business. The first year graph shows that
our company gain 2%. The graph id increase to 8% in second year and increase 16% in third
year. It means our company will get more sales from the equity. So, the return of equity will
be able to increase more in another year.

The Return of Investment graph show that how much our company spent the money to run
our business to sell the service and get the sell revenue. The graph shows that our company
has gain 1% in the early year and it increase softly to 5% in the second year. In the third year,
it goes up suddenly to 11%. It means the return on investment will increase more year to year.
So, our company is able to sustain the service.

The Debt Equity graph shows that how our company is able to pay the ay debt. In the first
year, the graph shows that our company has a debt to 28.89%. Then the graph goes down
suddenly in the second year to 5.17%. Third year our company be able to decrease the debt to
1.67%. The debt will decrease to the lowest stage in another year. So, our company is reliable
and viable for this business.