BUSINESS PLAN

105, Mutiara Inn, Politeknik Seberang Perai,
Jalan Permatang Pauh,
13500 Permatang Pauh,
Pulau Pinang
Telephone number : 04-55649860
Fax number : 04-55649870
Email : serimutiaraspa@gmail.com

EXECUTIVE SUMMARY 1.0 INTRODUCTION
Professional women today must juggle a great deal of responsibilities in the home and in the workplace. Women with schedules that are stretched very thin lack the personal relaxation and balance that their bodies and minds require to be healthy. Currently, busy women often use day spas in an attempt to fulfill their physical needs for relaxation and stress relief. However, day spas, and the services they provide, are becoming more and more uniform only offering the basic massages, facials, and body wraps. Most women feel that if they have been to one day spa for physical relaxation, they have been to them all.
Isn’t there a better relaxation solution out there that caters to both the physical and emotional relaxation needs of today’s modern woman? The answer is yes, and the solution is Seri Mutiara Spa. isn’t a day spa for professional women it is a wellness facility centered on its signature Asian Wellness Springs. Seri Mutiara Spa goes beyond the services provided by a day spa by offering its female guests access to the Wellness Springs and specialty saunas, in addition to unique spa services and a retail center.

1.1 NAME OF THE COMPANY :
Seri Mutiara Spa, Mutiara Inn.

1.2 NATURE OF BUSINESS :
Seri Mutiara Spa is a company that focuses on services. We specialize in producing quality services.

1.3 INDUSTRY PROFILE:
The principal activities of the Company consist of general trading and related services.There has been no significant change in the nature of this activity during the financial year.

1.4 BUSINESS ADDRESS :
Seri Mutiara Spa located at 105, Mutiara Inn, Politeknik Seberang Perai, Jalan Permatang Pauh,13500 Permatang Pauh, Pulau Pinang The location is strategic because it is a centre of housing area and provides all facilities such as telecommunication systems and roadways.

1.5 DATE OF COMMENCEMENT OF BUSINESS :

Our company has been commenced operations on year 2014.

1.6 FACTORS IN SELECTING THE PROPOSED VENTURE :

We choose this business because there is a high demand in the spa industry. We believe we can compete with other competitors around Seberang Prai, Pulau Pinang. Owning a retail dessert shop requires dedication, talent and a substantial investment, but it can turn into a profitable business. Consider adding wholesale services to local restaurants and delivery services to local event to enhance the profit margin.

1.7 FUTURE PROSPECTS OF THE BUSINESS:

When business is financially stable, we plan to grow this business and improve treatment equipment items. In addition, we also hope that we can get full support from the government and non-governmental associations. In conclusion, this business has good prospects to meet guest needs.

2.0 PROPOSE OF PREPARING THE BUSINESS PLAN: This business plan is prepared by Seri Mutiara Spa for the purpose of obtaining capital from our profit business. Since this is still a new business, a guide is very important to assist us in understanding the business nature. In preparing this business plan, we have listed down the plans and strategies of the company in order to achieve the company’s goal.

Seri Mutiara Spa

Seri Mutiara Spa

3.0 BUSINESS BACKGROUND: Name of the business | Seri Mutiara Spa | Business address | 105, Mutiara Inn, Politeknik Seberang Perai, Jalan Permatang Pauh,13500 Permatang Pauh, Pulau Pinang. | Correspondence address | 105, Mutiara Inn, Politeknik Seberang Perai, Jalan Permatang Pauh,13500 Permatang Pauh, Pulau Pinang. | Telephone number | | Fax number | | E-mail address | serimutiaraspa@gmail.com | Form of business | | Main activity(s) | Services. | Date of commencement | | Date of registration | | Equity contribution | | Name of bank | | Bank account number | | Registration number | |

4.0 BACKGROUND OF PARTNERS :

Name of 1st partner | Puan Adiebah Binti Ahmad | Identity card number | | Permanent address | | Correspondence address | | Telephone number | 016-3825056 | E-mail address | adiebah@psp.com | Date of birth | | Age | 32 years | Sex | Female | Marital status | Married | Academic qualifications | Lecturer | Courses attended | UBS course and English course | Skills | -Able to use Microsoft Word, Microsoft Excel and UBS System. | Experience | Lecturer. | Present occupation | Financial Manager |

Name of 2nd partner | Nur Wafa bt Muhamad Lutfi | Identity card number | 931218-85-5016 | Permanent address | 1514 Mk 20 Kubang Semang, 14400 Bukit Mertajam, Pulau Pinang. | Correspondenceaddress | 1514 Mk 20 Kubang Semang, 14400 Bukit Mertajam, Pulau Pinang. | Telephone number | 011 - 19084918 | E-mail address | nurwafabt@gmail.com | Date of birth | 18-12-1993 | Age | 22 Years | Sex | Female | Marital status | Single | Academic qualifications | Diploma In Accountancy | Courses attended | Enterpreneurship, Operation Management and Procurement | Skills | Business in event | Experience | 6 Month Assisstant Accountant in Intership | Present occupation | Financial Manager |

Name of 3rd partner | Nurul Izzati Bt Mohd Nazir | Identity card number | 930303-07-5028 | Permanent address | No 5214, Permatang Rawa, 14000 Bukit Mertajam, Penang | Correspondence address | No 5214, Permatang Rawa, 14000 Bukit Mertajam, Penang | Telephone number | 017-9931067 | E-mail address | izaty.nazir@yahoo.com | Date of birth | 3 March 1993 | Age | 22 years | Sex | Female | Marital status | Single | Academic qualifications | -Diploma in Accountancy | Courses attended | IT skills learning and Entrpreneur courses | Skills | Computer skills | Experience | 6 Month experience in Admin Department | Present occupation | Operating Manager |

Seri Mutiara Spa

Seri Mutiara Spa

4.2 PUBLIC LIMITED COMPANY AGREEMENT :
The attached agreement is made and signed by all partners stated below. Below are details of the agreement.
4.2.1 Name of the business Seri Mutiara Spa
4.2.2 Form of business Public Limited Company
4.2.3 Location of business
Polytechnic Seberang Perai 4.2.4 Equity contribution
The capital of our business is RM 600 and the equity contributions are as follows: Puan Adiebah binti Ahmad | RM 200 | Nur Wafa Binti Muhamad Lutfi | RM 200 | Nurul Izzati bt Mohd Nazir | RM 200 |

4.2.5 Financial matters
The profit and loss of company is distributed among the shareholders according to the percentage of their capital equity. If one of the shareholders is declared bankrupt or has many liabilities or has been proven cheating, all the other shareholders have the right to remove the guilty shareholder. If a shareholder doesn’t want to continue her or his involvement in the company, her or his capital will be given back, but the profit and loss of the company will be taken into consideration. The financial manager keeps all the accounts and all shareholders are allowed to view the accounts.

4.2.6 Management and position Puan Adiebah Bt Ahmad | General Manager | Nur Wafa Binti Muhamad Lutfi | Financial Manager | Nurul Izzati Bt Mohd Nazir | Operating Manager |

4.2.7 Death and dissolvement
Dissolvement depends on the agreement of all the shareholders in matters concerning death or loss of sanity. However, the shareholder should get the profit and capital until the shareholder should get the profit and capital until shareholder quits.

4.2.8 Labour rights All shareholders should know the knowledge rights of staff according to the law.

4.2.9 Other matters
Dismissed notice should be given by shareholder who wants to quit from the business within 30 days from dismissed date and agreed by other shareholder can be claimed whether the company gains profit or loss depending on the ratio of contribution. This dismissal will be enforced within 24 hours of notice.

4.2.10 Signatures of shareholders: Puan Adibah Bt Ahmad : 851218-85-5016

Nur Wafa Binti Muhamad Lutfi :
931207-07-5026

Nurul Izzati Bt Mohd Nazir :
930303-07-5028

5.0 BACKGROUND OF THE PROSPOSED PROJECT:
Seri Mutiara Spa has chosen Seberang Perai, Pulau Pinang as the location for treatment and services. The following section will explain the details of the chosen location.

5.1 PHYSICAL LOCATION
Our premise is in Polytechnic Seberang Perai and located in Dewan Seri Mutiara and easy to find. Polytechnic is along the main road which is undergoing development. Besides, our place is behind Sirim. As such, it is in good condition and is well maintained. So it’s suitable for the customer to visit our spa.

5.2 DISTANCE FROM RAW MATERIAL
We get the raw material from Teratak Spa.

5.4 AVAILABILITY OF MAN POWER
Since the business is small, we manage to take care of the shop by ourselves. We rotate to take care of the business by the scheduled time table to each partner.

5.5 TRANSPORTATION FACILITIES
The location is convenient for our supplier to deliver the raw materials. Customers can reach our shop by public transportation such as taxis and busses.

5.6 DISTANCE FROM CUSTOMER
Our business is located near to McDonald Perda, with the closest being only 50m away from our location. Customers can reach our premises public transportation.

5.7 BASIC AMENITIES
Our premise is located near an industrial area. All facilities and amenities such as water, electricity, telephone lines and transportation are available here. With all these facilities, we believe we can operate our business properly. Seberang Perai is a location that fully equipped with basic amenities. All places in Seberang Perai are connected by roads. The basic amenities are provided in order to perform and accomplish the work more efficiently and productively

6.0 ORGANIZATION/MANAGEMENT/ADMINISTRATION PLAN:
6.1 ORGANIZATION’S VISSION, MISSION AND OBJECTIVES
Table below shows the logo used by Seri Mutiara Spa and describes the company’s vision, mission and objectives. LOGO OF BUSINESS | | COMPANY’S VISION | To be a successful a spa servicing in consumer preferences. | COMPANY’S MISSION | -TO MAXIMIZE PROFIT~Our company’s long term goals are to maximize profits. This is important to ensure that we are successful.-TO GET MORE GUESTS~it is important to expand our business at other location to enable others to know about our business~Provide a beauty product that can satisfy the needs and preferences of customers. ~Creating a skilled workforce. ~Ensure the ability of businesses to compete with our competitors in the market. | COMPANY’S OBJECTIVES | The main goal of every organization to make a profit and continue remains a competitive organization. The goal of this organization is to: ~ To ensure that the business continues to excel in providing the best service products. ~Maintain a good relationship between management, employees, and customers. ~ Ensuring the welfare of workers.~To achieve consistency in our company’s cash flow~To give the tasty and quality treatment to customers and ensure that the demand and expectations of customers are met. |

6.2 ORGANIZATIONAL CHART
Seri Mutiara Spa uses an organizational structure based on functions in the organization. Our company organizational chart is quite simple but as the business grows, the levels of management and number of employees might be increased. The organizational structure will cover all aspects of the management as a business entity. Below are the organizational chart of our company :

6.3 MANPOWER PLANNING
Seri Mutiara Spa has three partners and they manage, contract and execute the operations of the business. Seri Mutiara Spa has one general manager, one financial manager, and one operations manager. Below are the position and number of personnel in Seri Mutiara Spa: POSITION | NUMBER OF PERSONNEL | General Manager | 1 | Financial Manager | 1 | Operating Manager | 1 |

6.4 SCHEDULE OF TASKS AND RESPONSIBILITIES
Each manager has his responsibilities to execute the execute the operations of the business. It is very important for every manager to know his tasks and responsibilities in the company as it will guide him in accomplishing his job. The following functions and responsibilities have been identified and will be delegated to the respective individual to ensure the smooth operation of the business. TASK/POSITION | RESPONSIBILITIES/JOB DESCRIPTION | General Manager | -To plan, implement and control the overall management of the business.-To plan and monitor the strategic progress of the business. | Financial Manager | -To plan and oversee the accounting functions and financial resources-To calculate the budget of the company | Operations Manager | -To be responsible for production, inventory and quality control. |

6.5 REMUNERATION PLAN
For our company, we have chosen the EPF scheme to be given to all employees. EPF is a compulsory savings for employees so that they will have money to support themselves once they retire. As a general guideline, employers are required to contribute at least 2% of an employee’s basic salary. Seri Mutiara Spa also provides Social Security Organization (SOCSO) contributions to ensure that employees receive compensation in situations of work-related accidents or illnesses. The table below shows the remuneration plan for each employee in Seri Mutiara Spa :

POSITION | NUMBER OF EMPLOYEES | REMUNERATION PER MONTH /MONTHLY SALARY (RM) | EPF CONTRIBUTION (2%)(RM) | SOCSO (2%) (RM) | TOTAL (RM) | General Manager | 1 | 300.00 | 6.00 | 6.00 | 312.00 | Financial Manager | 1 | 300.00 | 6.00 | 6.00 | 312.00 | Operation Manager | 1 | 300.00 | 6.00 | 6.00 | 312.00 | TOTAL | 3 | 900.00 | 18.00 | 18.00 | 936.00 |

6.6 LIST OF OFFICE EQUIPMENT AND SHOP SUPPLIES
Our firm, Seri Mutiara Spa has bought some office equipment, fittings and equipment from nearby shop. Below was the list of equipment that we bought:

OFFICE EQUIPMENTS AND FURNITURES | NO | TYPE OF EQUIPMENT | QUANTITY | PRICE/UNIT (RM) | TOTAL COST (RM) | 1 | Reception area furniture | 1 set | 200.00 | 200.00 | 2 | Tables and Chairs set | 1 sets | 150.00 | 150.00 | 4 | Bed Massage | 2 sets | 900.00 | 1,800.00 | 5 | Water Dispenser | 1 units | 300.00 | 300.00 | 6 | Cabinet | 1 units | 70.00 | 70.00 | 7 | Air-conditioner | 1 units | 700.00 | 700.00 | TOTAL | 3,220.00 |

6.7 ADMINISTRATIVE BUDGET ADMINISTRATIVE EXPENDITURE | | RM | RM | Fixed Assets/ Capital Expenditure | | | Furniture and Fittings | 3,220.00 | | | | 3,220.00 | Working Capital/Monthly Expenditure | | | Salaries | 1,872.00 | | Shop Supplies | 250.00 | | Utilities | 45.00 | | Other Expenditures | 30.00 | | Utilities Deposit | 100.00 | | | | 1,361.00 | TOTAL | | 4,581.00 |

7.0 MARKETING PLAN/ANALYSIS
7.1 DESCRIPTION OF PRODUCTS AND SERVICES
Seri Mutiara Spa is a place to provide services We provide services and treatment to guest. We believe that our country’s economy which is expanding positively plays its part in the development of Seri Mutiara Spa. We sell quality and good services and are concerned with guest satisfaction. Our business was developing to fulfill the demands of guest. The table below shows some of the sample products that offered by our shop Seri Mutiara Spa and the price or rate of each product.

TYPE OF SERVICES | Spa Packages Experience

Mutiara Soothing
Floral Footbath, Body Scrub, Body Mask & Back Massage

Mutiara calmingFloral Footbath, Body Scrub & Back Massage

Mutiara Refreshing
Floral Footbath, Hair Bath & Body Scrub
Ala Carte Experience

Holistic Swedish Massage Head, Shoulder & Back MassageFloral Footbath & MassageBody ScrubBody MaskHair BathInsant Face LiftManicurePedicureNail Henna |

7.2 TARGET MARKET
Seri Mutiara Spa is a new company that is situated in an industrial area which is also main area. The main nature of this company is to sell and services to our customers. From a survey that was conducted at Bayan Baru, Pulau Pinang, Teratak Spa has identified its target market. Based on the survey results, we believe that Seri Mutiara Spa will be able to stabilize itself by focusing on this target market.

7.3 MARKET SIZE
The major market segment at the target area consists of the centre of city and several areas that listed below. The market size is calculated to be 15,000 customers from several areas around Pulau Pinang with a rough estimation of RM 50.00 per month/per person to try our services. This will give a rough monthly net income around RM 23,000.00 to RM 25,000.

7.4 COMPETITORS (STRENGTHS AND WEAKNESSES)
It is very important for Seri Mutiara Spa to identify the competitors. Competitor refers to other businesses that offer similar product or service. Based on the market survey done earlier, we found that there are three competitors for our businesses, which are Spa. Bunga, Cma Spa and Cozy Beauty Spa. Table below shows the strengths and weaknesses among the competitors. COMPETITORS | STRENGTH | WEAKNESS | Spa Bunga | -Large sales volume every year | -No member card-Not renewing menu | Cma Spa | -Experienced workers perform an excellent services-Competitive pricing | -New to the industry, still in the stabilizing phase | Cozy Beauty Spa | -Great feedback from guest | -Services are expensive. |

7.5 MARKET SHARE
Seri Mutiara Spa specializes in services. Located at 105, Mutiara Inn, Politeknik Seberang Perai, Pulau Pinang, the target market for this business is students, Polytechnic Staff mainly by the residents around the area. We are not able to identify the actual market share for our business as the data ambiguous. However, we have taken our market share as 10% of the population in Seberang Perai and the surrounding areas. The table below shows about the market share :

NO | NAME | PERCENTAGE (%) | VALUE | 1 | Spa Bunga | 45 | RM 45,000.00 | 2 | Cma Spa | 25 | RM 25,000.00 | 3 | Cozy Beauty Spa | 30 | RM 30,000.00 | TOTAL | 100 | RM 100,000.00 |
MARKET SHARE BEFORE THE ENTRY OF TERATAK SPA MUTIARA INN

NO | NAME | PERCENTAGE (%) | VALUE | 1 | Spa Bunga | 40 | RM 40,000.00 | 2 | Cma Spa | 20 | RM 20,000.00 | 3 | Cozy Beauty Spa | 25 | RM 25,000.00 | TOTAL | 100 | RM 100,000.00 | MARKET SHARE AFTER THE ENTRY OF TERATAK SPA MUTIARA INN

7.6 SALES FORECAST
The sales forecast for three consecutive years of the competitors of Seri Mutiara Spais shown in the table below :

MONTH | SALES FORECASTT FOR 3 CONSECUTIVE YEARS | | RM | | SPA BUNGA | CMA BEAUTY CENTRE | COZY BEAUTY SPA | JANUARY | RM 40,000.00 | RM 30,000.00 | RM 35,000.00 | FEBRUARY | RM 38,000.00 | RM 37,000.00 | RM 40,000.00 | MARCH | RM 45,000.00 | RM 48,000.00 | RM 42,000.00 | APRIL | RM 35,000.00 | RM 35,000.00 | RM 45,000.00 | MAY | RM 29,000.00 | RM 37,000.00 | RM 20,000.00 | JUNE | RM 32,000.00 | RM 28,000.00 | RM 27,000.00 | JULY | RM 45,000.00 | RM 25,000.00 | RM 42,000.00 | AUGUST | RM 30,000.00 | RM 32,000.00 | RM 30,000.00 | SEPTEMBER | RM 25,000.00 | RM 38,000.00 | RM 41,000.00 | OCTOBER | RM 38,000.00 | RM 39,000.00 | RM 40,000.00 | NOVEMBER | RM 48,000.00 | RM 28,000.00 | RM 36,000.00 | DECEMBER | RM 27,000.00 | RM 40,000.00 | RM 30,000.00 | TOTAL YEAR 1 | RM 432,000.00 | RM 417,000.00 | RM 428,000.00 | TOTAL YEAR 2 | RM 488,000.00 | RM 432,000.00 | RM 417,000.00 | TOTAL YEAR 3 | RM 417,000.00 | RM 428,000.00 | RM 490,000.00 |

SALES FORECACT FOR THREE CONSECUTIVE YEARS OF THE MAIN COMPETITORS

7.7 MARKETING STRATEGY
The marketing strategy of Seri Mutiara Spa is summarized in the table below : CRITERIA | DESCRIPTION | Product Strategy | Quality | Seri Mutiara Spa provides great treatment and services to our customers. The quality is observed in terms of :- 1. Services 2. Product 3. Feedback 4. Product Differentiation 5. Attractiveness 6. Product Safety | | Labelling | All services are safe and provide information on the manufacturer, size and expired date. | | After sales services | In order to maintain the smooth running of Seri Mutiara Spa, the management offers after sales services whereby the customer will be given a short questionnaire in order to know the weaknesses that need to be improved in the future. | | Delivery services | We also provide delivery services for customers for any occasions (specific locations only) | Pricing Strategy | Competition based pricing | Seri Mutiara Spa uses competition based pricing as its pricing strategy. We have competitors in Seberang Perai that sell the same products for a higher price to get more profit per unit. However we at Seri Mutiara Spa place greater importance on customer satisfaction for repeat business. We have reduced the price per unit of our products and are still able to get reasonable profit from our sales. Our competitive price will ensure customers continue buying from us in the future and also attract new customers. | Promotion Strategy | Advertising | As for our promotion strategy, Seri Mutiara Spa uses the advertising method as the first step in promotion our business. There will be printed advertisements in brochures, magazines and newspapers soon. A special discount will be given for purchases of large quantities |

7.8 MARKETING BUDGET
The marketing budget is mentioned as part of our administrative expenditure as shown in the table below :

MARKETING EXPENDITURE | | RM | RM | Fixed Assets | | | Signboard | 100.00 | | Motor vehicles | | | | | 100.00 | Working Capital | | | Salaries | | | EPF & Socso | | | Fuel and man | 50.00 | | Travelling expenses | 100.00 | | Utilities | | | | | 150.00 | Other Expenditure | | | Promotion | 250.00 | | Grand opening | 3,000.00 | | | | 3,250.00 | | | | TOTAL | | 3,500.00 |

8.0 OPERATION PLAN / PRODUCTION STRATEGY
The operational plan is one of the most important factors to consider in a business. Like other business, our target is to ensure that our service are the best in quality and able to satisfy our customer needs and wants. Hence, a systematic operational plan is formed so that our business run smoothly and achieves its objectives.
8.1 OPERATIONAL / INNOVATION PROCESSS
To date, we have completed our market research and a lease has been secured and at the selected location in Seberang Perai, Pulau Pinang. Equipment and furniture purchases have been pre-negotiated. Marketing materials have also been drafted. The next steps in operational plan are as follows: * Sign office / building lease within 30 days. * Sign equipment and office furniture purchases order. * Accept delivery of equipment and office furniture. * Received equipment training and set up. * Print marketing material. * Open business. * Launch advertising and promotional plan.

8.2 PRODUCTION SCHEDULE / CAPACITY PLANNING
Table below shows the production schedule or capacity planning for Seri Mutiara SPa based on monthly production.
PRODUCTION SCHEDULE No | Time of Treament | Quantity | Treatments per Month | 1 | Monthly | 25 person | All Treatment |

8.3 MATERIAL REQUIREMENTS
We calculated our material requirement based on our sales per month. Our monthly sale is approximately RM 2,000.

8.4 LOCATION OF OPERATION

LOCATION OF Seri Mutiara Spa, Mutiara Inn

8.5 OPERATION LAYOUT PLAN The operation layout plan of Seri Mutiara Spa is shown below : OPERATIONAL LAYOUT PLAN OF SERI MUTIARA SPA

Seri Mutiara Spa

Seri Mutiara Spa

9.0 OPERATIONAL BUDGET * Determine the size of investment that is the project implementation cost. * Identify and propose the relevant sours of finance * Ensure that initial capital is sufficient. * Appraise the viability of the project before actual investment is committed. * Guide the implementation of plans.

CAPITAL EXPENDITURE PROJECTION Seri Mutiara Spa | | | Capital Expenditure | | | Types of Fixed Assets | Estimated Cost (RM) | Estimated Economic Life (years) | Administrative/Organisation | | | Furniture & fittings | 3,220 | 5 | | | | Sales/Marketing | | | Signboard | 100 | 3 | | | | Total | 3,320 | |

PRE-OPERATING & WORKING CAPITAL SERI MUTIARA SPA | | Pre-Operating & Working Capital Projections | | Pre-Operating & Incorporation Costs (one-off) | RM | Development cost | 1,500 | Business incorporation | 4,000 | Deposit (rent, utilities, etc.) | 0 | Other pre-operating & incorporation costs | 550 | Sales & Marketing Costs (monthly) | | Promotion | 250 | Opening | | Travelling Expenses | 200 | Fuel and man | 50 | General & Administrative Costs (monthly) | Salaries, Wages, EPF & SOCSO | 1,872 | Rental | 1,800 | Utilities | 50 | Shop supplies | 250 | Purchase of Raw Materials/Goods | | Carriage Inwards | 0 | Other Expenditure (annually) | Other Expenditure & Pre-operation | 300 | Total Pre-Operations & Working Capital Expenditure | |

SALES & PURCHASES
TERATAK SPA MUTIARA INN
Sales & Purchases Projection Sales Projections | RM | January | 2014 | 150 | February | 2014 | 200 | March | 2014 | 320 | April | 2014 | 300 | May | 2014 | 250 | June | 2014 | 50 | July | 2014 | 500 | August | 2014 | 400 | September | 2014 | 200 | October | 2014 | 100 | November | 2014 | 230 | December | 2014 | 350 | Total | 2014 | 3,050 | Total | 2015 | 6,000 | Total | 2016 | 10,000 |

Purchase Projections | RM | January | 2014 | 500 | February | 2014 | 250 | March | 2014 | 200 | April | 2014 | 300 | May | 2014 | 500 | June | 2014 | 100 | July | 2014 | 60 | August | 2014 | 220 | September | 2014 | 90 | October | 2014 | 150 | November | 2014 | 165 | December | 2014 | 140 | Total | 2014 | 2,675 | Total | 2015 | 4,000 | Total | 2016 | 7,000 |

PROJECT IMPELEMENTATION COST SERI MUTIARA SPA | | | | Project Implementation Cost | | | | | | | | Capital Expenditure | Cost | Sources of Financing | Furniture & fittings | 3,220 | Cash | | | | Signboard | 100 | Cash | | | | Working Capital | 1 | months | | | Sales & Marketing Costs (monthly) | 3,050 | Cash | General & Administrative Costs (monthly) | | Cash | Operations & Technical Costs (monthly) | | Cash | Pre-Operating & Incorporation Costs (one-off) | | Cash | Other Expenditure (annually) | 500 | Cash | TOTAL | 150,000 | |

SOURCES OF PROJECT FINANCING SERI MUTIARA SPA | | | | Sources of Project Financing | | | Capital Expenditure | Cost | Own Contributions | | | Cash | Existing F. Assets | Furniture & fittings | 3,220 | 3,220 | | | | | | Signboard | 100 | 100 | | | | | | Working Capital | | | | Sales & Marketing Costs (monthly) | | | | General & Administrative Costs (monthly) | | | | Operations & Technical Costs (monthly) | | | | Pre-Operating & Incorporation Costs (one-off) | | | | Other Expenditure (annually) | 250 | 250 | | TOTAL | | | |

DEPRECIATION OF FIXED ASSESTS Type of Fixed Asset | Furniture & fittings | Cost (RM) | 3,220 | | Depreciation Method | Straight Line | | Economic Life (yrs) | 5 | | Year | Annual | Accumulated | Book Value | | Depreciation | Depreciation | | | - | - | 3,220 | 1 | | | | 2 | | | | 3 | | | | 4 | | | | 5 | | | |

Type of Fixed Asset | Signboard | Cost (RM) | 100 | | Depreciation Method | Straight Line | | Economic Life (yrs) | 3 | | Year | Annual | Accumulated | Book Value | | Depreciation | Depreciation | | | - | - | 100 | 1 | | | | 2 | | | | 3 | | | |

PRO FORMA CASH FLOW STATEMENT SERI MUTIARA SPA | Pro-forma Cash Flow Statement | MONTH | Pre-Operations | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 2014 | 2015 | 2016 | | | | | | | | | | | | | | | | | | CASH INFLOW | | | | | | | | | | | | | | | | | Capital (Cash) | | | | | | | | | | | | | | | | | Cash Sales | | | | | | | | | | | | | | | | | TOTAL CASH RECEIPT | | | | | | | | | | | | | | | | | CASH OUTFLOW | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pre-operating & Incorporation Expenditure | | | | | | | | | | | | | | | | | Sales & Marketing Expenditure | | | | | | | | | | | | | | | | | General & Administrative Expenditure | | | | | | | | | | | | | | | | | Operations & Technical Expenditure | | | | | | | | | | | | | | | | | Other Expenditure | | | | | | | | | | | | | | | | | Purchase of Fixed Assets | | | | | | | | | | | | | | | | | TOTAL CASH OUTFLOW | | | | | | | | | | | | | | | | | CASH SURPLUS (DEFICIT) | | | | | | | | | | | | | | | | | BEGINNING CASH BALANCE | | | | | | | | | | | | | | | | | ENDING CASH BALANCE | | | | | | | | | | | | | | | | |

PROFORMA INCOME STATEMENT SERI MUTIARA SPA | | | Pro-forma Income Statement | | | | | | | | | | | Years | 2014 | 2015 | 2016 | Sales | | | | Less: Cost of Sales | | | | Gross Profit | | | | | | | | Less: Expenditure | | | | Pre-Operating & Incorporation Expenditure | | | | General & Administrative Expenditure | | | | Sales & Marketing Expenditure | | | | Operations & Technical Expenditure | | | | Other Expenditure | | | | Interest on Hire-Purchase | | | | Interest on Loan | | | | Depreciation of Fixed Assets | | | | Total Expenditure | | | | Net Income Before Tax | | | | Tax | | | | | Net Income After Tax | | | | Accumulated Net Income | | | |

PROFORMA BALANCE SHEET SERI MUTIARA SPA | Pro-forma Balance Sheet |

ASSETS | 2012 | 2013 | 2014 | Non-Current Assets (Book Value) | | | | Land & Building | | | | | Other Fixed Assets | | | | Other Assets | | | | | Deposit | | | | | | | | | | Current Assets | | | | | | | | | | | Inventory | | | | | | Accounts Receivable | | | | Cash Balance | | | | | | | | | | | | | | | | TOTAL ASSETS | | | | | | | | | | | Owners' Equity | | | | | Capital | | | | | Accumulated Income | | | | | | | | | | | TOTAL EQUITY & LIABILITIES | | | | |

10.0 CONCLUSION/SUMMARY AND RECOMMENDATION
Based on the planning and projection of income and expenses, the company is very confident that this business venture creates a satisfactory return on investment on the second year of operation. For the first year, we incur a very minimal profit as we have just started the operation. The business will continuously perform the business strategies, especially on the marketing aspects to ensure the business is well known to the customer and we build a loyal customer base in the second year of operation.