Table of Contents

1.0 Introduction................................................................................................................1
1.1 Executive Summary....................................................................................................2
1.2 Objectives...................................................................................................................3
1.3 Mission ......................................................................................................................3
1.4 Keys to Success..........................................................................................................3
2.0 Company Summary....................................................................................................4
2.1 Company Ownership..................................................................................................4
2.2 Start-up Summary.......................................................................................................5
2.3 Company Locations and Facilities ............................................................................6
3.0 Services......................................................................................................................7
3.1 Service Description....................................................................................................7
3.2 Competitive Comparison...........................................................................................7
4.0 Market Analysis Summary .......................................................................................8
4.1 Market Segmentation.................................................................................................8
4.2 Market trend ..............................................................................................................9
4.3 Service Business Analysis.........................................................................................9
4.31 Distribution Patterns.....................................................................................9
4.3.2 Main Competitors........................................................................................9
5.0 Strategy and Implementation Summary.....................................................................10
5.1 Marketing Strategy.....................................................................................................10
5.1.1 Pricing Strategy...........................................................................................10
5.1.2 Promotion Strategy .....................................................................................11
5.2 Sales Strategy.............................................................................................................11
5.2.1 Sales Forecast..............................................................................................11
6.0 Management Summary .............................................................................................12
6.1 Organizational Structure ...........................................................................................13
6.2 Management Team....................................................................................................14
6.3 Management Team Gaps ..........................................................................................15
6.4 Personnel Plan...........................................................................................................15
7.0 Financial Plan ...........................................................................................................16
7.1 Important Assumptions ............................................................................................16
7.2 Key Financial Indicators...........................................................................................16
7.3 Projected Profit and Loss..........................................................................................17
7.4 Projected Cash Flow ...............................................................................................19
7.5 Projected Balance Sheet............................................................................................21
7.6 Business Ratios .........................................................................................................23

1. 0 Introduction
In Malaysia, tuition means supplementary academic coaching. Pupils attend tuition
classes on their own volition and pay for the tutoring service. It is a service operated by
the private sector, and is therefore a type of profit-oriented education. Tuition can best be
described as the shadow education system of Malaysia. It has "shadowy" characteristics
1

because tuition has never been part of the government sanctioned public schooling
system; yet it is as widespread as the official one. Tuition is also shadowy in other ways
as well. Its existence is solely reliant on the continuation of the schooling system in its
current form. The emphasis on examination in Malaysian education both gives birth to
and sustains the tuition industry. The range of subjects offered in tuition mimics those in
schools. Teaching techniques are geared towards helping pupils do well in the national
exams. The slightest change in syllabus or exam formats will be met with the swiftest of
response by the tuition industry, often even capitalizing on the situation. No matter what,
tuition
shadows
the
schools
without
fail.
There are two types of tuition - institutional tuition and private tuition. Institutional
tuition refers to tutoring that takes place in a dedicated establishment. These institutions
are variously known as Tuition Centers (Pusat Tuisyen), Guidance Centers (Pusat
Bimbingan) & Learning Centres (Pusat Pembelajaran). In the 1980's tuition centres
began mushrooming in Malaysia. The tuition 'boom' was so sudden that many of these
early operators had to pioneer the assimilation of the word "tuition" into the Malay
Language. Hence several non-standard variants were adopted, such as "tiusyen" and
"tusyen". Since then, however, the proper term has come into usage. The second type,
known as private / personal tuition occurs on a smaller scale. A tutor tuition teacher will
guide a small group of students or even a single student only. In the latter case, it is
known as 1-to-1 tuition (one-to-one tuition). In the former case, it is called group tuition
Regardless of which, private tuition usually takes place at the tutor's home or the
student's. Therefore, private tuition is sometimes referred to as home tuition. Home tutors
and their students are usually matched by tuition agents or tuition agencies / agency. The
popularity of personal / private tuition is on the rise. Together with institutional tuition,
they are both evidence that tuition is here to stay in Malaysia.

1.1 Executive Summary

Bestari Tuition Centre will be established to fulfill Malaysia governments vision and
education policy, especially those of the Education Ministry, to elevate the standards of
education in Malaysia. Bestari Tuition Centre is a center that is proud to bring about
academic excellent throughout. The atmosphere at Bestari Tuition Centre will be a caring

environment to encourage independence, constructive problem solving, positive selfesteem and improved self-worth.
We are 100% compliant with the KBSR and KBSM syllabus set by the Ministry of
Education. We strive to lead in the invention, innovation and propagation of modern
educational products and services. Our inventions are designed with the principle of
lifelong learning. We streamline our discoveries and integrate it with our corporate
objective: To Change The Nation by providing our customers with professional
education and training solutions.
Sales are projected to increase each month with annual sales totaling close to RM
350,000. Gross margin, likewise, is expected to increase in correlation, ending at close to
91 % for 2006. With cash flow increasing significantly and expenses remaining
relatively static with only minimal increases, cash flow will experience a similar increase
for each period of financial evaluation. Cash flow is expected to more than double from
just over RM 107,100 in 2006 up to over RM 152,000 for 2007, with corresponding cash
balances of RM 117,100 and RM 185,000. The balance sheet indicates that at the end of
the first year of operation, net worth will be positive and constantly increasing to the
point of RM 512,500 by the end of 2007.

1.2

Objectives

1. To provide:
i.
quality teaching to encourage students learning desire
ii.
quality learning - to build students self confidence
iii.
quality growing to shape students future

2. Expand Bestari Tuition Centre to Lanang and Pedada area by the end of year
2008.
3. To increase shareholders wealth.

1.3

Mission

To be committed in creating an excellent teaching and learning environment for teachers

and students thus boosting teachers ability to inspire and students ability to achieve.
Bestari Tuition Centre offers bright students a place to interact with each other and share
ideas. Personal gains, such as improved self-esteem and self-motivation, combined with
measurable benefits will create tremendous advantages for students. It generates
valuation for investors and eventually commerce and profits.

1.4

Keys to Success

Bestari Tuition centers keys to success are:

Recruitment of qualified, experienced and authoritative tutors.
Dedication and hard work of the founders.
Efficient management
Lowering overall costs.
Bestari Tuition Centre is a registered tuition centre at the Sarawak State Education
Department

2.0 Company Summary

Bestari Tuition Center is a start-up company with six full time employees. The company
will be incorporated in 2006 by six founders, headed by a principal, finance manager,
administrative manager, sales and marketing manager and two academic advisors. We
are a high-powered team of creative individuals. Bestari Tuition Centre provides tutoring
service to both primary and secondary level students. We strive to lead in the invention,
innovation and propagation of modern educational products and services. Our inventions

are designed with the principle of lifelong learning. We streamline our discoveries and
integrate it with our corporate objective; To Change The Nation by providing our
customers with professional education and training solutions.

2.1 Company Ownership

Bestari Tuition Centre is a privately held corporation. The six founders comprise all of
the ownership.
Regina Teo - RM 10,000 (20 %)
Pauline Goh - RM 10,000 (20 %)
Isabella Tiong - RM 10,000 (20 %)
Hii Chai Choo - RM 10,000 (20 %)
John Ting RM 5,000 (10 %)
Jeffrey Ling RM 5,000(10 %)

2.2 Start-up Summary

Start-up will require approximately RM 50,000 of capital, which will be provided by the
founders own personal saving.

Table: Start-up summary

5

Start-up
Requirements
Start-up Expenses
Legal
Stationery
Brochures
Insurance
Rent
Equipment
Utilities
Leasehold Improvements
Others
Total Start-up Expenses

RM250
RM500
RM200
RM150
RM1300
RM8000
RM2800
RM12000
RM2000
RM27200

Start-up Assets Needed

Cash Balance on Starting Date
Start-up Inventory
Other Current Assets
Total Current Assets

RM10000
RM0
RM0
RM10000

Long-term Assets
Total Assets
Total Requirements

RM0
RM10000
RM50000

Investment
Founders
Other
Total Investment

RM50000
RM0
RM50000

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Current Liabilities

RM0
RM0
RM0
RM0

Long-term Liabilities
Total Liabilities
Loss at Start-up
Total Capital
Total Capital and Liabilities

RM0
RM0
(RM27200)
RM22800
RM22800

2.3 Company Locations and Facilities

Bestari Tuition Center is located at the Pusat Tanahwang (Refer to Appendix 1). Upon
expansion, tuition centres will be set up at two different location, Lanang and Pedada
areas.

3.0 Services
Bestari Tuition Centre is set up with the objective of providing quality tuition services to
students and enhances their inter-personal skills.

3.1 Service Description

Bestari Tuition Centre is a well equipped tuition centre. We provide a systematic and
comprehensive study program in various subjects. This study program has been carefully
designed by our teachers so that they are in line with the requirements of our national
education system. Since learning is most effective in a conducive environment, we have
also ensured that the necessary amenities are sufficient.
Besides, there are some programs that are specially designed to remove the pressure
factor associated with learning. These are mostly student-focused in nature rather than
teacher-focused. The tutoring emphasizes student participation, is flexible, and
encourages creativity. Students attending this form of tuition will find it not only
unthreatening but also an enjoyable experience.
With our extensive experience, Bestari Tuition Centre is confident that we will continue
to produce well-rounded students. Bestari Tuition Centre is the answer to students need
for successful academic achievement.

3.2 Competitive Comparison

Bestari Tuition Centre is not primarily a tuition centre, as are the majority of competitors.
Bestari Tuition Centre will distinguish itself from its competitors as a full learning centre,
rather than just a store front. There are no temporary teachers or undergraduates in
Bestari Tuition Centre. Bestari Tuition centre has the most modern infrastructure
classrooms in Sibu with comfortable seating facilities, TVs, videos and a fully equipped
language lab. Furthermore, timetables in Bestari are flexible so that students can choose
from several options to suit their convenience. Each teacher is a specialist in his/her
subject and even in the primary level each subject is taught by a different teacher.
Basically, Bestari classes are made up of 15 students per class and even smaller for the
lower primary level so that teachers will pay personal attention towards each students.
Most of our exam class teachers are experienced examiners. Experience with dedication,
commitment and care are key qualities of our teachers. Bestari strive for excellent at
every level.

4.0 Market Analysis Summary

According to a 1990 survey in Malaysia, about 83 per cent of pupils will have received
some form of tuition by the time they reach upper secondary school. More extensive
participation has been predicted in the coming years due to the growth of the industry.
8

Malaysian pupils spend a large portion of their day within the confines of their schools.
Nowadays, they seem to be spending an equal amount, if not more, of their time in tuition
classes. This development has led some students in the survey to lament that 'Tuition
dominates our lives'
There are approximately more than 2000 officially registered tuition centers in Malaysia
in 2003. The number of tuition centres operating without proper registration is not known
exactly, but is estimated to be at least matching the legally operating ones. As to the costs
involved, it is not uncommon to find urban households investing hundreds of Ringgit per
month on tuition alone. It is difficult to assess accurately the size of the industry in
monetary terms. This is partly due to the large number of tuition centers operating
without proper registration, hence eluding governmental monitoring. Also, many private
tutors loathe to divulge their earnings from tuition. Whatever the figure made available
officially, it is safe to say that it would be an underestimation of the actual tuition market.
Malaysia is not the only country with a booming demand for tuition. In fact, we are not
even the nation most obsessed with tuition. Parents in South Korea are reported to have
spent US$ 25,000 million (Asiaweek, 1997) on tuition during 1996, which is equivalent
to 150 per cent of the sum that its government invests in education. It is also reported that
typical households spent the equivalent of US$ 1,950 a year on tuition for each child in
secondary school and US$ 1,500 for each child in primary school. South Korea is not
unique in this respect. In Japan, there are tuition centers which are so huge that they are
listed in Japanese stock exchanges. Furthermore, the tuition industry there remains
healthy despite the falling birth rate that has been gradually eroding the pool of potential
clients.
The critical component to our entrance into the market will be approval and support from
the school communities-including teachers and education programs.

4.1 Market Segmentation

Our primary target market include these two areas
1. the students themselves which can be divided into two major groups. Group one is
students who are between 5-12 years old and second group is those who are
between 13-18 years old in our market statistics.
2. parents who are dedicated to giving their children every educational opportunity
possible.

4.2 Market trend

In Malaysia, tuition has become part of the educational environment to such an extent
that nobody doubts its significance anymore. Tuition centers exist in large numbers

especially in urban areas. So does tutoring services that are provided by personal tutors.
Whether its conducted on an individual basis or on an institutionalized form, tuition has
become a large enterprise, mobilizing extensive resources and employing many people.
The tuition industry stands testimony to a definite demand for extra-school coaching and
a healthy demand at that.

4.3 Service Business Analysis

The tuition service industry is expanding tremendously. The emphasis on examination in
Malaysias education both gives birth to and sustains the tuition industry. There are no
tuition centres operating in Pusat Tanahwang area currently.
4.3.1 Distribution Patterns
In Sibu, the majority of the tuition centres are found in town area.
4.3.2 Main Competitors
The two main competitors for Bestari Tuition Centre are:

Mdm Teos English Tuition Centre targeted at students and families

emphasizing English as first language.

Genius Arithmetic Tuition Centre targeted toward those motivated and

interested individuals on logical and mathematical solutions.

5.0 Strategy and Implementation Summary

Bestari Tuition Centres strategy is based on raising students comprehensive learning
skills in a creative education system and creating an era where everyone grows up with a
solid education background in a variety of discipline. By tailoring customized coaching

10

strategies, Bestari Tuition Centre will develop a reputation for quality and customer
services.

5.1 Marketing Strategy

Like all other service-oriented businesses, tuition is an industry where customer
satisfaction always comes first. If the tutor or the tuition centre is not performing as
expected, students will simply shift to another provider. Once a strong image is
established, Bestari Tuition Centre will use similar strategies to market its services in
Lanang and Pedada area.
5.1.1 Pricing Strategy
Prices for using Bestari Tuition Centres services are comparable to those of higher-end
tuition centers. The prices reflect the education quality provided by Bestari Tuition
Center. Our pricing structures have been revised and are as follows:
One Subject
Two Subjects
Three Subjects
Four Subjects
Five Subjects

Primary Level
RM40
RM75
RM105
RM130
RM150

Secondary Level
RM60
RM110
RM150
RM180
RM200

The more subjects students take with us, the more money they will save! The discounted
prices can be obtained through a number of different schemes.
Terms of payments are as follows:

A one time fee of RM 10 is payable upon registration.

The monthly fee and a one month advanced deposit (at discounted prices, if any)
are payable before commencement of the first session.
Subsequent monthly payments are to be made before the first session of each
month.
Payment for the final tuition month of the student will be deducted from the
deposit.

5.1.2 Promotion Strategy

Tuition centers engage in many promotional tactics to retain and increase enrolment.
Discounts on fees are given for early registration, leaflets are widely distributed, free

11

seminars and previews are held etc. Bestari Tuition Centre provides discounts to 'old'
students who re-enroll. Students from the surrounding neighborhoods are also
chauffeured to and from the tuition classes by the tutors. Besides that, an introductory fee
of 10% from actual fee will be given to those who bring new students.
Following initial promotional activity through advertisements in newspapers, and
distribution of flyers, Bestari Tuition Center will significantly reduce its promotional
efforts in the hope that word-of-mouth will attract potential clients.
In addition, articles will be written for the newspaper and local papers will have
advertising for the new center.

5.2 Sales Strategy

Sales strategy for Bestari Tuition Centre is simple and straightforward: customer
satisfaction! Happy customers will be repeat customers, and they will provide referrals to
new customers.
Academic tutoring has been in particular demand because of the increased expectations
placed on high school and even grade school students. Tutoring is a word-of-mouth
business but to get to this point, you'll need to take the initiative to develop a base of
students. This is best done by calling on teachers in the subject areas in which you
specialize. Satisfied students will spread the word among their neighbors and friends.
5.2.1 Sales Forecast
Sales Forecast
Sales
Other
Total Sales
Direct Cost of
Sales
Subtotal Direct
Cost of Sales

2006
350,000
0
350,000
31,000

2007
395,800
0
395,800
32,500

2008
455,000
0
455,000
36,500

2009
523,400
0
523,400
39,000

2010
585,000
0
585,000
41,500

31,000

32,500

36,500

39,000

41,500

6.0 Management Summary

12

Bestari Tuition Centre is currently a small organization headed by six individuals. The
Principal oversees the activities of the Sales and Marketing Manager, Finance Manager,
Administrative Manager and Academic Advisors (Art Stream and Science Stream). The
tuition centre is also staffed by dedicated core of friendly and efficient professional tutors
who have many years of teaching experience.

13

6.1 Organizational Structure

Pauline Goh Mei Siang

Principal

Regina Teo Yien Shieh

Hii Chai Choo
Finance Manager
Administrative Manager

Isabella Tiong
Sales and Marketing
Manager

14

John Ting Hieng Hock Jeffrey Ling Chia Siong

Academic Advisor
Academic Advisor

6.2 Management Team

Pauline Goh Mei Siang: Bestari Tuition Centre Principal

Mdm. Pauline is responsible for providing leadership, direction, and control for
all aspects of the tuition centre's activities in order to realize optimum profits
compatible with the best long- and short-term interests of the shareholder,
employees, parents and students. Mdm Pauline completed his undergraduate
degree at the Universiti Sains Malaysia, and then earned her CMBA from the
Unimas.

Regina Teo Yien Shieh: Finance Manager

Ms. Regina is responsible for guiding and directing financial and control activities
of the tuition centre in a manner designed to protect assets, meet reporting
requirements, and effectively plan for and audit the financial needs of the tuition
centre. Ms. Regina completed her undergraduate degree at the Universiti Putra
Malaysia, and received her CMBA from Unimas.

Hii Chai Choo: Administrative Manager

Ms. Hii is responsible for recruiting qualified and trained tutors to coach at our
centre. She is also responsible in determining number and types of positions
needed; assists in determining proper organizational structure and defining roles
of divisions and employees in the department. Besides that, she is also assisting
in developing and defending proposals for additional or new structures and
staffing levels. Ms. Hii received her undergraduate degree at the Universiti
Kebangsaan Malaysia, and received her CMBA from Unimas.

Isabella Tiong: Sales and Marketing Manager

Ms. Tiong is responsible for developing short and long term strategy plan for the
centre. She is also responsible in developing annual business plans and expense
budgets for the sales department; establishing monthly sales and profit objectives
and conducting affairs to achieve sales goals and maximizing owners investment.
Ms. Tiong received her undergraduate degree at the Multimedia Universiti, and
received her CMBA from Unimas.

John Ting Hieng Hock: Academic Advisor

Mr. Ting is responsible in updating the latest syllabus for the Art Stream
curriculum. Mr. Ting received his undergraduate degree at the Universiti Sains
Malaysia, and received his CMBA from Unimas.

15

Jeffrey Ling Chia Siong: Academic Advisor

Mr. Ling is responsible in updating the latest syllabus for the Science Stream
curriculum. Mr. Ling received his undergraduate degree at the Universiti Malaysia
Sabah, and received his CMBA from Unimas.

6.3 Management Team Gaps

The gaps of Bestari Tuition Centre management team include:
Lack of experience in the educational industry
Minimal expertise in areas of finance and accounting
Strong desire for financial prosperity immediately with little patience for minimal
profitability

6.4 Personnel Plan

Bestari Tuition Centre personnel staff requirements are shown in the table below.
Personnel Plan
Principal
Finance Manager
Sales &
Marketing
Manager
Administrative
Manager
Academic advisor
(Art Stream)
Academic advisor
(Science Stream)
Tutors
Others
Total Payroll

2006 (RM)
26,400
24,000
24,000

2007 (RM)
26,400
24,000
24,000

2008 (RM)
26,400
24,000
24,000

2009 (RM)
26,400
24,000
24,000

2010 (RM)
26,400
24,000
24,000

21,600

21,600

21,600

21,600

21,600

21,600

21,600

21,600

21,600

21,600

30,000
0
171,600

30,000
0
171,600

30,000
0
171,600

30,000
0
171,600

30,000
0
171,600

16

7.0 Financial Plan

Salaries, rent and electricity bill are the major expenses. Besides that, there are
minor expenses like stationery expenses and maintenance fees.
In order to maintain steady gross margins, salaries and advertising expenses are
not likely to increase within the first two years of operation, unless cash flows
significantly increase.

7.1 Important Assumptions

Three assumptions for Bestari Tuition Centre are:
1. A constantly growing economy without any major recession or boom.
2. no unpredictable changes in yearly insurance, stationery expenses or office
equipment
3. No major national or global events that threaten the standard of learning
throughout the nation and its citizens

7.2 Key Financial Indicators

The most important financial indicators are net increase in cash and net income. Net
increase from cash will exemplify the relationship between net income and net cash from
operating activities. The greater the increase is Bestari Tuition Centre has that level of
financial strength at that point in time.

17

7.3 Projected Profit and Loss

Sales are projected to increase each month with annual sales totaling close to RM
350,000. Gross margin, likewise, is expected to increase in correlation, ending at close to
91 % for 2006.
Compared to total sales, net profit will increase each month and is predicted to increase
for 2006 through 2008.
Pro Forma Profit and Loss
Year
2006 (RM) 2007 (RM) 2008 (RM) 2009 (RM) 2010 (RM)
Sales
350,000
395800
455,000
523,400
585,000
Direct Cost of Sales
31,000
32,500
36,500
39,000
41,500
Other
0
0
0
0
0
------------------------------------------------------Total Cost of Sales
31,000
32,500
36,500
39,000
41,500
Gross Margin
319,000
363,300
418,500
484,400
543,500
Gross Margin %
91.14
91.79
91.98
92.54
92.91
Expenses:
Payroll
171,600
171,600
171,600
171,600
171,600
Sales and Marketing
5,000
5,000
5,000
5,000
5,000
and Other Expenses
Depreciation
6,000
6,000
6,000
6,000
6,000
Insurance
2,000
2,000
2,000
2,000
2,000
Rent
15,000
15,000
15,000
15,000
15,000
Other
2,000
2,000
2,000
2,000
2,000
Utilities
10,000
10,000
10,000
10,000
10,000
Leased Equipment
0
0
0
0
0
Payroll Taxes
12,000
12,000
12,000
12,000
12,000
------------------------------------------------------Total
Operating
223,600
223,600
223,600
223,600
223,600
Expenses
Profit Before Interest
95,400
139,700
194,900
260,800
319,900
and Taxes
Interest Expense
1,000
1,800
3,000
4,500
5,300
Taxes Incurred
2,500
3,800
5,500
6,000
7,100
Net Profit
91,900
134,000
186,400
250,100
307,500
Net Profit/Sales
26.26%
33.86%
40.97%
47.78%
52.56%

18

19

7.4 Projected Cash Flow

With cash flow increasing significantly and expenses remaining relatively static with only
minimal increases, cash flow will experience a similar increase for each period of
financial evaluation.
Cash flow is expected to more than double from just over RM 107,100 in 2006 up to over
RM 152,000 for 2007, with corresponding cash balances of RM 117,100 and RM
185,000.

Pro Forma Cash Flow

Cash Received
Cash From Operations:
Cash Sales
Cash from Receivables
Subtotal Cash from
Operations
Additional Cash Received
Sales Tax Received
New Current Borrowing
New Other Liabilities
(interest-free)
New Long-term Liabilities
Sales of Other Current
Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

2006
(RM)

2007
(RM)

2008
(RM)

2009
(RM)

2010
(RM)

140,000
17,797

182,000
26,585

227,000
32,915

266,000
38,570

313,000
45,385

157,797

208,585

259,195

304,570

358,385

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0

0
0

0
0

0
0

0
0

0
30,000
187,797
2006

0
30,000
238,585
2007

0
30,000
289,195
2008

0
30,000
334,570
2009

0
30,000
388,385
2010

43,000
33,500

49,000
39,500

55,000
43,500

63,000
50,500

76,500

88,500

98,500

113,500

Expenditures
Expenditures from Operations:
Cash Spending
31,000
Payment of Account
18,000
Payable
Subtotal Spent on
49,000
Operations

20

Additional Cash Spent

Sales Tax Paid Out
Principal Repayment of
Current Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities
Principal Repayment
Purchase Other Current
Assets
Purchase Long-term
Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

21,700

10,000

10,000

10,000

10,000

0
70,700
107,097
117,097

0
86,500
152,085
184,710

0
98,500
190,695
257,024

0
108,500
226,070
334,130

0
123,500
264,885
419,800

21

7.5 Projected Balance Sheet

The balance sheet indicates that at the end of the first year of operation, net worth will be
positive and constantly increasing to the point of RM 512,500 by the end of 2007.
Pro Forma Balance Sheet
Asset
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long Term Assets
Long Term Assets
Accumulated
Depreciation
Total Long-Term
Assets

2006 (RM)
127,097
29,300
156,397

2007 (RM)
184,710
39,500
224,210

2008 (RM)
257,024
49,500
306,524

2009 (RM)
334,130
59,500
393,630

2010 (RM)
419,800
69,500
488,400

6,000

12,000

18,000

24,000

30,000

15,700

19,700

23,700

27,700

31,700

172,097

243,910

330,224

421,330

521,000

2007
20,910
0
0

2008
16,824
0
0

2009
9,230
0
0

2010
8,500
0
0

20,910

16,824

9,230

8,500

Total Assets
Liabilities and Capital
Current Liabilities
2006
Accounts Payable
27,397
Current Borrowing
0
Other Current
0
Liabilities
Subtotal Current
0
Liabilities
Long-term
0
Liabilities
27,397
Total Liabilities

22

Paid in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and
Capital

80,000
(27,200)
91,900
144,700
172,097

110,000
(21,000)
134,000
223,000
243,910

140,000
(13,000)
186,400
325,100
330,224

170,000
(8,000)
250,100
412,100
421,330

200,000
(5,000)
307,500
512,500
521,000

144,700

223,000

325,100

412,100

512,500

Net Worth

23

7.6 Business Ratios

The following table outlines some of Bestari Tuition Centre more important
business ratios. These ratios indicate strong financial growth and an impressive chance
for investment opportunities, making expansion and further development both very
possible.
Ratio Analysis
Sales Growth
Percent of Total Assets
Accounts
Receivable
Inventory
Other Current
Assets
Total Current
Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term
Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin

2006
0%

2007
13.09%

2008
14.96%

2009
15.03%

2010
11.77%

17.03

16.19

14.99

14.12

13.34

90.88

91.92

92.82

93.43

93.74

9.12
100

8.08
100

7.18
100

6.57
100

6.26
100

15.92
-

8.57
-

1.55
-

2.19
-

1.63
-

15.92
84.08

8.57
91.43

1.55
98.45

2.19
97.81

1.63
98.37

100
91.14

100
91.79

100
91.98

100
92.54

100
92.91

24

Profit Before
Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total
Assets
Pre-tax Return on
Net Worth
Pre-tax Return on
Assets
Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
Capital turnover
Average Collection
Period
Inventory
Turnover
Debt Ratios
Debt to Net Worth
Additional Ratios
Assets to Sales
Current Debt/Total
Assets
Acid test
Sales/Net Worth
Dividend Payout

27.26

35.30

42.84

49.83

54.68

5.7
5.7
15.92

10.72
10.72
8.57

18.22
18.22
5.09

42.65
42.65
2.19

57.46
57.46
1.63

65.23

61.84

59.03

62.19

61.39

54.85

56.54

58.11

60.83

60.38

2006
26.26
63.51

2007
33.86
60.09

2008
40.97
57.34

2009
47.78
60.69

2010
52.56
60.0

2.03
30

1.62
36

1.38
39

1.24
41

1.12
43

18.93%

9.38%

5.18%

2.24%

1.66%

0.49
15.92

0.62
8.57

0.73
5.09

0.80
2.19

0.89
1.63

5.70
2.42
0

10.72
1.77
0

18.22
1.40
0

42.65
1.27
0

57.46
1.14
0

25

26