Financial Templates 1 2 3 Table F1 Financial Projections Table F2 Breakdown of Revenue - The table is to show the source of revenue generation for the company. The revenue stream/s should be the same as the company's proposed activities described in the business plan. Table F3 R&D expenses - Please note that the underlying assumption used on the treatment of these expenses is such that the Hardware and Software acquisition for the purpose of Research and Development works will be capitalised in the Balance Sheet and subsequently amortised every year. The other R&D expenses as stipulated in Table F3 will be written-off completely in the Profit and Loss during the year they incurred. Table F4 Past Financial Performance - For the company that has been in operation for more than 1 year, please provide the audited Sales and the Profit before Tax figures.
4
Glossary of financial terms 1. Sales are defined as proceeds which is derived from the provision of goods and/or services falling within the company's qualified activities. Sales are further classified as Local ( all forms of revenue in Malaysia) and/or Export (all forms of revenue from overseas ) 2. Net profit (loss) before tax is defined as profit or loss on qualified MSC activities before taxation. 3. Net Operating cash flow is defined as the net amounts of cash flowing in and out of business during the prescribed period to support the qualified activities. { Formula : Net operating cash flow = Total cash inflow - Total cash outflow } 4. Liquid Assets is defined as cash or bank balance and is a component of Current Assets. 5. Stocks is defined as the goods and materials a company purchases to re-sell at a profit for the company's qualified activities. It is a component of Current Assets. 6. Trade Debtors is defined as receivables that arise as a result of the process of selling inventory or services on terms that allow delivery prior to the collection of cash. It is a component of Current Assets. 7. Current Assets are those which matures in less than one year and are intended for use on a continuing basis for the company's qualified activities. They are the sums of the following categories; Liquid Assets, Trade Debtors, Stocks, Prepayments and Other Current Assets. 8. Fixed Assets represent the use of cash to purchase physical assets whose life exceeds one year for the qualified activities. They include assets such as ; Land, Building, Machinery & Equipment, Funiture & Fixtures, Leasehold Improvements and other related assets. 9. Current Liabilities is defined as short term financial resources acquired for the use and support of operations, expansions or development of the qualified activities. 10. Long-term Liabilities is defined as long term financial resources acquired for the use and support of operations, expansions or development of the qualified activities. 11. Paid-up-capital is defined as cash injection by shareholders into the company to support the qualified activities. 12. Research & Development refers to contribution towards the development of the activities. * R&D staff salaries relates to foreign and local employees or contract staff actually performing the R&D activity on either a full time or part time basis. * Technology Acquisition - Hardware relates to costs of capital expenditure which are directly associated with the project. * Technology Acquisition - Software relates to direct costs of items or materials which are directly attributable to research and development. * Prototypes includes directs costs of constructing, assembling, or re-working prototype units. * Consumables / Incidental Costs . These costs includes:(a) Utilities, publications, office stationery, equipment maintenance directly attributable to the project's research and development activities. (b) Local travel essential to the project e.g. costs for travel to related research projects, for consultation with other experts in the field being studied. (c ) Training, Seminar & Workshop (Local/Overseas) costs incurred that are directly related to the R&D activity.
13. Networth comprises of shareholder's investments into the company which refers to the sum of
Share Capital, Share Premium Account, Capital Reserves, Reserves and Retained Earnings.
Company Name: F1 : FINANCIAL PROJECTIONS (RM) Year Sales (Local) Sales (Exports) Total Sales Net profit (loss) before tax Net operating cash flow Liquid Assets Stocks ( Inventory) Trade Debtors Current Assets Fixed Assets (net) Current Liablities Long-Term Liabilities Paid-up-Capital R&D Investment ( at cost) Networth ( cumulative ) 2005 10 90 100 3,265 45 9,442 0 20 9,462 417 1 6,687 50 70 9,999 2006 40 160 200 5,789 152 14,480 0 33 14,513 317 2 5,853 50 140 14,952 2007 90 210 300 25,815 236 34,452 0 50 34,502 217 3 20 50 210 34,932
F2 : Breakdown of Sales (RM) Item * Content Edition/Enhancement Interractive Services E-Commerce Software Integration Website Development Income Hosting Fees i-directory listing Sale of Portals Fulfillment charges Licensing Subscription Transaction Fee Advertisement Data Centre Management Call Centre Management System Intergration and Testing Others :Others :Total 2005 2006 2007
100
200
300
100
200
300
F3 : Breakdown of Research & Development (RM) Item * 2005 2006 2007
R&D staff salaries ** --R&D Electronic Engineers --R&D Embedded Software Engineers --R&D Software Engineer --R&D Quality & Security Engineer --Chief Designer --Web Designer --Web Engineer --Linguists --Language Translators --Content Developers --Others:-(please specify) Sub-total Technology acquisitions - Hardware --Computer Servers --Personal Computers --ISDN Lines Connection --Workstations Hardware & Accessories --Furniture & Fittings --Others:-(please specify) Sub-total Technology acquisitions - Software --Software Licencing for Windows NT --Software for Hardware Development --Design Tools --Others:-(please specify) Sub-total Prototypes --Content & Design Fee --Mould Making --Prototyping Costs --Others:-(please specify) Sub-total Consumables / Incidental Costs Patenting & Copyrights Others:-(please specify) Grand Total * Please adjust the items according to the nature of your business ** For R&D staff salaries, please indicate (PT) for part-time or (FT) full-time .
10
20
30
10
20
30
10
20
30
10
20
30
10
20
30
10
20
30
10 10 10 10 10 70
20 20 20 20 20 140
30 30 30 30 30 210
F4 : PAST FINANCIAL PERFORMANCE No. of Audited Financial Statement (max. of 3 years) Past Perfomance Sales Profit/Loss before tax
0 2001
2002
2003
Please fill in the above with the past years audited financial figures wherever applicable. Total Sales Total R&D Percentage of R&D over Sales Tax Loss OpEx CapEx Total Export RATIO ANALYSIS Profitibility: Gross profit Net profit Return on capital employed Asset turnover (times) Liquidity: Current ratio ( xx : 1) Quick ratio/Acid test ratio ( xx : 1) Financing: Gearing ratio ( xx : 1) Interest cover ( times) Investment: Earnings per share (RM) Return on shareholders’ funds Dividend cover ( times ) ROI 2004 2005 600 420 1 124,530 120 207 460 2006
100% 3265% 34% 0.0
100% 2894% 40% 0.0
100% 8605% 74% 0.0
9,462 9,462
7,257 7,257
11,501 11,501
2.0 2,799.1
0.6 3,618.8
0.0 14,342.9
65.29 99% 1,632.3 34%
115.77 64% 2,894.3 40%
516.31 74% 12,907.7 74%
PROFIT AND LOSS ACCOUNT
2005 RM SALES less: COST OF SALES GROSS PROFIT less: General & Administrative Expenses Professional fees Directors' remuneration Insurance Medical fee Rental of premises Salaries,allowances & bonus Utilities Upkeep of office R & D expenses Others:Others:Others:Total G&A Sales & Marketing Expenses Advertisement Entertainment Printing and stationery Salaries and commissions Tender fee Travelling expenses Upkeep of motor vehicle Others:Others:Others:Total S&M Other Income PBDIT less: Amortisation of R&D Depreciation PBIT less: Financial Charges PROFIT / (LOSS) BEFORE TAXATION LESS : TAXATION PROFIT / (LOSS) AFTER TAXATION Minority Interest Distributable Profit less: Dividend Retained Profit / (Loss) For The Year Retained Profit / (Loss) B/fwd Retained Profit / (Loss) C/fwd
PROJECTIONS 2006 2007 RM RM 200 300
100
100
200
300
12
24
36
12
12
12
40
80
120
64
116
168
12
12 3,333 3,357 8 83 3,266 1 3,265 3,265 0 3,265 2 3,263 0 3,263
0 5,833 5,917 27 100 5,790 2 5,789 5,789 0 5,789 2 5,787 3,263 9,049
0 25,833 25,965 48 100 25,817 2 25,815 25,815 0 25,815 2 25,813 9,049 34,862
BALANCE SHEET 0 0 PROJECTIONS 2006 2007 RM RM 54 70 96 120
2005 RM Research & Development (net) Investment FIXED ASSETS (net) Land & Buildings Fixtures & Fittings Office Equipment Motor Vehicles Others
22 100
83 83 83 0 0 417
63 63 63 0 0 317
43 43 43 0 0 217
CURRENT ASSETS Trade debtors Cash and bank balances Prepayments & Deposits Stocks (non-tradeable)
20 9,442 0 0 9,462
33 14,480 0 0 14,513
50 34,452 0 0 34,502
Less : Current Liabilities Other creditors Trade Creditors Accruals Short Term Loans
1 0 0 0 1 9,461 9,999
2 0 0 0 2 14,511 14,952
3 0 0 0 3 34,499 34,932
NET CURRENT ASSETS NET ASSETS
Financed By : Share Capital ( Paid-up capital) Share Premium Reserves Retained Profit C/fwd Long term liabilities Grants Debenture Long-term loans SHAREHOLDERS' NETWORTH
50 0 3,263 3,313 6,667 20 9,999 0
50 0 9,049 9,099 5,833 20 14,952 0
50 0 34,862 34,912 0 20 34,932 0
CASH FLOW STATEMENT PROJECTIONS 2005 2006 2007 RM RM RM Cash flows from operating activities Cash receipts from customers Cash paid to suppliers Cash paid to operating expenses & employees Net cash from/(used in) operating activities Cash flows from investing activities Investment Purchase of fixed assets Research & development Net cash from/( used in) investing activities Cash flows from financing activities Issuance of share capital Share Premium Dividend Paid (-) Long term loan/borrowings (+) Repayment of loan (-) Grant Interest income/(expense) Net cash from/( used in) financing activities Net increase( decrease) in cash and cash equivalents Cash and cash equivalents brought forward Cash and cash equivalents carried forward 80 0 (35) 45 187 0 (35) 152 283 0 (47) 236
(100) (500) (70) (670) 50 (2) 20 10,000 (1) 10,067 9,442 0 9,442
30 0 (140) (110)
(50) 0 (210) (260)
(2)
(2)
5,000 (2) 4,996 5,038 9,442 14,480
20,000 (2) 19,996 19,973 14,480 34,452
Assumptions:1. 2. Name of the Company Projection Start (year) Sales (must total to 100%) -expexted Local Sales (%) -expected Export Sales (%) Trade Debtors Credit Period (month) Trade Creditors Credit Period (month) Other Creditors Credit Period (month) Interest Rate (%) Depreciation Rate (%) Amortisation Rate (%) Period covered in 1st. Year (months)
3. 4. 5. 6. 7. 8.
2005 100% 10% 90% 2 0 1 7% refer to FA section below 33% 10
2006 100% 20% 80%
2007 100% 30% 70%
8%
9%
9.
Fixed Assets Calculation Annual Acquisition: Land & Buildings Fixtures & Fittings Office Equipment Motor Vehicles Others
2005
2006
2007
100 100 100 0 0 500
0 0 0 0 0 0
0 0 0 0 0 0
Depreciation: Land & Buildings Fixtures & Fittings Office Equipment Motor Vehicles Others
% 20% 20% 20% 20% 20%
17 17 17 0 0 83
20 20 20 0 0 100
20 20 20 0 0 100
Net Book Value: Land & Buildings Fixtures & Fittings Office Equipment Motor Vehicles Others
83 83 83 0 0 417
63 63 63 0 0 317
43 43 43 0 0 217
Assumptions:Rental of Premises Cost of Sales
Back to :-
Grant
First Drawdown No.of years to amortised Brought fwd Addition P&L (Other Income) carried fwd Second Drawdown No.of years to amortised Brought fwd Addition P&L (Other Income) carried fwd Third Drawdown No.of years to amortised Brought fwd Addition P&L (Other Income) carried fwd
2005 3 0 10,000 10,000 3,333 6,667
2006 6,667 6,667 3,333 3,333
2007 3,333 3,333 3,333 0
2 0 0 0 0 0 5,000 5,000 2,500 2,500 2,500 2,500 2,500 0
1 0 0 0 0 0 0 0 0 0 20,000 20,000 20,000 0
0
0 2005 2005 2006
Profitability Ratios Gross profit percentage Gross profit Sales Net profit Sales Operating profit Capital employed x 100% 100% 100% 100%
Net profit percentage
x 100%
3265%
2894%
8605%
Return on capital employed
x 100%
34%
40%
74%
Asset turnover
sales Total assets less current liabilities
0.0
0.0
0.0
Liquidity Ratios Current ratio Current assets Current liabilities :1 9,461.8 7,256.6 11,500.8
Quick ratio/Acid test ratio
Current assets – Stock :1 Current liabilities
9,461.8
7,256.6
11,500.8
Financing Ratios Gearing ratio Prior charge capital Total capital PBIT Interest payable :1 2.0 0.6 0.0
Interest cover
2,799.1
3,618.8
14,342.9
Investment Ratios Earnings per share PAT, pref dividends & extraordinary items Ordinary shares equity earnings BV of shareholders’ funds at the year end equity earnings equity dividend PBDIT Networth Total Sales Total R&D Percentage of R&D over Sales Tax Loss OpEx CapEx Total Export Return on capital employed Return on capital employed Net profit margin Asset turnover Current ratio Gearing Interest cover Return on shareholders’ funds Dividend cover 600 420 1 124,530 120 207 460 65.29 115.77 516.31
Return on shareholders’ funds
99%
64%
74%
Dividend cover
1,632.25
2,894.26
12,907.69
ROI
34%
40%
74%
100 70
200 140
300 210
76 520 90
116 40 160
168 60 210
EBIT / total assets less current liabilities at the end of the year. = EBIT / total assets less current liabilities at the end of the year. = EBIT/sales. = sales /total assets less current liabilities. = current assets/current liabilities including overdraft. = total debt including overdraft/shareholders’ funds. = EBIT/interest. = equity earnings / book value of shareholders’ funds at the end of the year. = equity earnings/equity dividend.