Financial Plan

Financial plan is a plan that shows a short-term and a long-term financial requirement in order to start a new project or business. It also shown he requirement that are going to be financed by using internal and external resources. Financial plan should include the projection of the financial statement such as cash flow (fund flow statement, profit and loss account and balanced sheet). It also includes some financial analysis in order to determine the viability of the proposed business. Financial plan is important to: Determine the amount of money invested Identify and proposed the relevant sources of finance Ensure that initial capital is sufficient Appraise liability before actual investment committed Determine the cash flow in the business.

Financial information is gathered through the business budgets. It also referred to the operational budget that is administrative budget, marketing budget and production budget. As mentioned above this financial plan is important in order to know overall financial operation of the company in the year.

Project Implementation Cost

Prestige Tawaf Clock PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE Project Implementation Cost
Requirements Fixed Assets Land & Building Cost Loan

Sources of Finance
Hire-Purchase Own Contribution Cash Existing F. Assets

months 1 Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 10%
Working Capital TOTAL

10,000 4,050 22,600 6,000 4,265 46,915

10,000 4,050 22,600 6,000 4,265 46,915

Administrative Budget

ADMINISTRATIVE BUDGET
Particulars Fixed Assets Land & Building F.Assets Monthly Exp. Others Total

10,000 5,500 500 10,000 6,000

10,000 -

Working Capital Business Fixtures and Equipment

Pre-Operations & Other Expenditure Other Expenditure

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

5,500 500 16,000

Marketing Budget

MARKETING BUDGET
Particulars F.Assets Monthly Exp. Others Total

Fixed Assets Working Capital Advertising 4,050 4,050 4,050 -

Pre-Operations & Other Expenditure Other Expenditure

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

4,050

Operations Budget

OPERATIONS BUDGET
Particulars F.Assets Monthly Exp. Others Total

Fixed Assets Working Capital Raw Materials & Packaging Carriage Inward & Duty Salaries, EPF & SOCSO Machinaries 600 1,000 19,000 2,000 22,600 600 1,000 19,000 2,000 -

Pre-Operations & Other Expenditure Other Expenditure

Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure
Total

22,600

Pro-Forma Cashflow

Pro-Forma Production Cost

Prestige Tawaf Clock PRODUCTION COST PRO-FORMA STATEMENT

Year 1 Raw Materials Opening Stock Current Year Purchases Ending Stock Raw Materials Used Carriage Inward Salaries, EPF & SOCSO Factory Overhead Depreciation of Fixed assets (Operations) Machineries Year 2 Year 3

0 7,200 7,200 12,000 12,000 228,000

7,200 7,200 13,200 13,200 250,800

7,200 18,000 (10,800) 15,840 5,040 300,960

24,000

26,400

31,680

Total Factory Overhead Production Cost

24,000 264,000

26,400 290,400

31,680 337,680

Pro-Forma Income

Prestige Tawaf Clock PRO-FORMA INCOME STATEMENT

Year 1 Sales Less: Cost of Sales Opening Stock of Finished Goods Production Cost less: Ending Stock of Finished Goods 264,000 8,200 0 255,800 Gross Profit Less: Expenditure Administrative Expenditure Marketing Expenditure Other Expenditure Business Registration & Licenses Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Interest on Hire-Purchase Interest on Loan Depreciation of Fixed Assets Total Expenditure Net Profit Before Tax Tax Net Profit After Tax Accumulated Net Profit 169,100 (424,900) 0 (424,900) (424,900) 185,460 (483,460) 0 (483,460) (908,360) 222,552 (560,532) 0 (560,532) (1,468,892) 500 120,000 48,600 132,000 53,460 158,400 64,152 (255,800) 8,200 290,400 600 0 298,000 (298,000) 600 337,680 300 0 337,980 (337,980) Year 2 Year 3

Pro-Forma Balance Sheet

Prestige Tawaf Clock PRO-FORMA BALANCE SHEET

Year 1 ASSETS Fixed Assets (Book Value) Land & Building Year 2 Year 3

Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance

7,200 8,200 #DIV/0! #DIV/0!

7,200 600 #DIV/0! #DIV/0! 5,500 #DIV/0!

18,000 300 #DIV/0! #DIV/0! 5,500 #DIV/0!

Other Assets Deposit TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES

5,500 #DIV/0!

(424,900) (424,900) #DIV/0! #DIV/0! #DIV/0! 450 #DIV/0!

(908,360) (908,360) #DIV/0! #DIV/0! #DIV/0! (3,150) #DIV/0!

(1,468,892) (1,468,892) #DIV/0! #DIV/0! #DIV/0! (3,150) #DIV/0!

Financial Performance

Prestige Tawaf Clock

FINANCIAL PERFORMANCE
Year 1 PROFITABILITY Sales Gross Profit Profit Before Tax Profit After Tax Accumulated Profit LIQUIDITY Total Cash Inflow Total Cash Outflow Surplus (Deficit) Accumulated Cash SAFETY Owners' Equity Fixed Assets Current Assets Long Term Liabilities Current Liabilities FINANCIAL RATIOS Profitability Return on Sales Return on Equity Return on Investment Liquidity Current Ratio Quick Ratio (Acid Test) Safety Debt to Equity Ratio BREAK-EVEN ANALYSIS Break-Even Point (Sales) Break-Even Point (%) 0 (255,800) (424,900) (424,900) (424,900) Year 2 0 (298,000) (483,460) (483,460) (908,360) Year 3 0 (337,980) (560,532) (560,532) (1,468,892)

46,915 #DIV/0! #DIV/0! #DIV/0!

0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

(424,900) 0 #DIV/0! #DIV/0! 450

(908,360) 0 #DIV/0! #DIV/0! (3,150)

(1,468,892) 0 #DIV/0! #DIV/0! (3,150)

#DIV/0! 100% #DIV/0! #DIV/0! #DIV/0!

#DIV/0! 53% #DIV/0! #DIV/0! #DIV/0!

#DIV/0! 38% #DIV/0! #DIV/0! #DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!