Financial Position of Company

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Financial Position of Company

  1. 1. New-Skin’s Annual FinancialReport of 2011 1
  2. 2. 1. ABOUT NEW SKIN • A world class latex glove producer • Produces two types of gloves:- - Natural Rubber latex gloves (80%) & Nitrile gloves (20%) • Leading international manufacturer, distributor and marketer. • Exporting to over 100 countries NEW SKIN SDN.BHD worldwide in the regions of: - United States of America (USA) - Europe MAIN FACTORY - Asia Pacific No. 7, Kawasan Perusahaan Suria, • Total production : 45600 Pulau Indah, Klang Selangor Darul - 16 bil pcs/year, 10% of the Ehsan, Malaysia • Tel: +603 - 3280 1007 world’s demand. • Fax: +603 - 3271 1007 2 • Email:
  3. 3. Our Vision1. ABOUT NEW SKIN We Strive To Be The World’s Leading Manufacturer With Excellent Quality Gloves Products And Services That Enrich And Protect Human Lives 3
  4. 4. 1. ABOUT NEW SKIN Historical Background INCEPTION OF • Has its own brand, THE FIRST PLANT New Skin • Diversified to Nitrile • Manufacture Glove Production • 50 employees only Latex Gloves • Now owns 3 plants • Starting capital 1 • Public Listed • Gained substantial million Company foothold and • Producing NR Latex command significant glove. FOUNDED BY market share in the MR.GO & world glove market. FRIENDS IN 2007 NEW SKIN SDN.BHD- NOW IN 2011 4
  5. 5. 1. ABOUT NEW SKIN Board Of Directors Managing Director Mr. Go Ren Quan, Malaysian. Executive Manager Executive Manager Executive Manager Executive Manager Mr. M. Mahdi Ms. Aisyah Ms. Afsana Ms. Kalaichelvi Mesbahi, Iranian. Ibrahim, Malaysian. Husain, Rajagopal, Malaysia Bangladeshi n 5
  6. 6. 1. ABOUT NEW SKIN Research & Development • To stay ahead in the industry, Research and Development (R&D) is a primary consideration of New Skin Sdn. Bhd. • OUR holistic views of R &D has given us a far superior head start in terms of our product efficacy, technological prowess in our engineering capabilities and above all, speed to market. • Echoing this sentiment, Plant 3 is now fully operational and able to surpass our targeted productivity from 12,000 pieces of gloves per hour per line. 6
  7. 7. 1. ABOUT NEW SKIN Human Capital • Employees are indeed the most valuable assets and play an integral role in the continued success of our business. • New Skin Sdn. Bhd are committed in recruiting, developing, rewarding and retaining a quality workforce. • New Skin started its operation with: 50 – 2007 (manufacturing only NR latex gloves + 1st Plant) 80 – 2008 (extension of production lines & establishment) 250 – 2009 (started manufacturing nitrile gloves+ 2nd Plant) 250 – 2010 (extension of production lines 7 &
  8. 8. 1. ABOUT NEW SKIN New Skin’s Customers Pharmaceutical - To protect against chemical splashes in the manufacturing, extraction, processing, purification and packaging of chemical materials etc. Laboratory - As an excellent biological barrier and as safet measures when handling chemicals. Dental – For the use of dental healthcare practitioners. Medical - For the use of surgeons, nurses etc to prevent possible transmission of diseases. 8
  9. 9. 1. ABOUT NEW SKIN New Skin’s Suppliers 1. Chemical Company of Malaysia Berhad (CCM) • Recognized leader and steward in corporate safety and environment management. • Provide chemical products and applications 2. Medical Rubber Product Sdn Bhd • Leading manufacturer and exporter of natural and Synthetic rubber supply. 9
  10. 10. 1. ABOUT NEW SKIN New Skin’s Technology 1. High Efficiency Production Lines with Glove Removal System • Capable to produce 12,000 pieces of gloves per hour per line. • Ensured with stable operating process parameters. 2. Automatic Product Handling System • Product movement processes from production to warehouse and to customers via conveyors and lifting systems and • Electronically via Information Systems – ERP, RFID and barcode traceability systems. 10
  11. 11. 1. ABOUT NEW SKIN New Skin Environmental Performance • To protect our valuable water source and air quality • Committed to maintaining the quality of our effluent water discharge and air emission to levels that are far below allowable limits set by JAS. • Fully aware of the laws, Environmental Quality Act 1974 11
  12. 12. 2. NEW SKIN’S PRODUCTS Latex Gloves • provide strong barrier against pathogen, contaminations • the best alternative for powdered gloves • reducing the risk of allergy • designed to fit hand structure perfectly • equipped with grip properties • designed with the surgeon in mind • gloves fit like a second skin 12
  13. 13. 2. NEW SKIN’S PRODUCTS Nitrile Gloves • soft and stretchy • exceptional protection against chemicals and blood borne pathogens • highly elastic, strong, comfortable and durable • provides high levels of tactile sensitivity, comfort and security even over long hours of usage. 13
  14. 14. 3. FINANCIAL PERFORMANCE T-accounts Owners Equity 2007 Balance c/f 1,000,000 2007 1 Cash 1,000,000 and POSITION 1,000,000 1,000,000 Cash/Bank 2007 2007 1 Owners Equity 1,000,000 2007 2 Factory 600,000 2007 4 Sales 900,000 2007 2 Equipments 210,000 2007 9 Receivable 80,000 2007 2 Vehicle 50,000 2007 3 Raw material 150,000 2007 5 Advertising 20,000 2007 6 Salary 789,000 2007 7 Account payable 29,000 2007 8 Utility 12,000 2007 10 Stationeries 10,000 2007 13 Taxation 13,875 2007 Balance c/f 96,125 1,980,000 1,980,000 Cash/Bank 2008 2008 Balance b/f 96,125 2008 14 Equipment 210,000 2008 14 Loan 250,000 2008 17 Raw Material 300,000 2008 16 Sales 1,300,000 2008 18 Salaries 978,000 14
  15. 15. 3. FINANCIAL PERFORMANCE T-accounts Start up business with capital 1,000,000 cash at 1/1/2007 1,000,000 and POSITION Bank (Cash) Owner’s Equity Dt Cr Depreciation expenses of equipment 10,500 (5%) for year 2007. Depreciation expenses of Accumulated Depreciation Equipment of Equipment Dt Cr 15
  16. 16. 3. FINANCIAL PERFORMANCE Income Statements of 5 Years 2007 2008 2009 2010 2011 and POSITION Revenue from Sales of Good 1,000,000 1,500,000 4,200,000 5,000,000 6,500,000 Cost of Sales (901,000) (1,146,000) (3,586,000) (4,304,000) (4,750,000) Gross Profit 99,000 354,000 614,000 696,000 1,750,000 Research and development Expenses (50,000) (50,000) (60,000) Administration expenses (10,000) (15,000) (45,000) (70,000) (100,000) Other operating expenses/CSR (20,000) (35,000) (55,000) (75,000) (110,000) Operating Income/Profit 69,000 304,000 464,000 501,000 1,480,000 Other income(expenses) Depreciation expenses (14,500) (25,000) (35,500) (39,000) (39,000) Interest Expenses (10,000) (10,000) (12,000) (13,000) Interest and discount received 1,000 Profit before Taxation 55,500 269,000 418,500 450,000 1,428,000 Taxation (25%) (13,875) (67,250) (104,625) (112,500) (357,000) Net Profit for the Year 41,625 201,750 313,875 337,500 1,071,000 16
  17. 17. 3. FINANCIAL PERFORMANCE Financial Positions of 5 Years Assets 2007 2008 2009 2010 2011 and POSITION ASSETS Non-current Assets Property and Plant facilities 600,000 600,000 2,100,000 2,100,000 2,100,000 Equipments and Machinery 210,000 420,000 420,000 420,000 700,000 Accumulated Depreciation (10,500) (31,500) (63,000) (98,000) (133,000) Net Equipment and Machinery 799,500 988,500 2,457,000 2,422,000 2,667,000 Vehicles 50,000 50,000 50,000 50,000 50,000 Accumulated Depreciation (4,000) (8,000) (12,000) (16,000) (20,000) Net Vehicles 46,000 42,000 38,000 34,000 30,000 Total 845,500 1,030,500 2,495,000 2,456,000 2,697,000 Current Assets Inventory 100,000 250,000 30,000 80,000 30,000 Trade Receivables 20,000 130,000 80,000 210,000 230,000 Prepaid Expenses 2,400 2,400 Investment 10,000 30,000 Cash and Bank balances 96,125 102,875 792,250 291,350 631,350 Total 216,125 482,875 902,250 593,750 923,750 TOTAL ASSETS 1,061,625 1,513,375 3,397,250 3,049,750 3,620,750 17
  18. 18. 3. FINANCIAL PERFORMANCE Financial Positions of 5 Years Equities and Liabilities 2007 2008 2009 2010 2011 and POSITION ASSETS TOTAL ASSETS 1,061,625 1,513,375 3,397,250 3,049,750 3,620,750 EQUITY AND LIABILITY Equity Owners Capital 1,000,000 1,041,625 1,243,375 1,557,250 1,894,750 Retained Profits 41,625 201,750 313,875 337,500 1,071,000 Total Equity 1,041,625 1,243,375 1,557,250 1,894,750 2,965,750 Liabilities Non-current Liabilities Bank Loan 250,000 1,800,000 1,050,000 550,000 Total - 250,000 1,800,000 1,050,000 550,000 Current Liabilities Payables 20,000 20,000 20,000 5,000 5,000 Deferred Revenue 20,000 50,000 50,000 Government Short Term Loan 50,000 50,000 Total 20,000 20,000 40,000 105,000 105,000 Total Liabilities 20,000 270,000 1,840,000 1,155,000 655,000 TOTAL EQUITY AND LIABILITY 1,061,625 1,513,375 3,397,250 3,049,750 3,620,750 18
  19. 19. 4. FINANCIAL STATEMENTS Net Profit in 5 Years Net Profit for the Year 1,200,000 1,071,000 1,000,000 800,000 600,000 313,875 337,500 400,000 201,750 200,000 41,625 - 2007 2008 2009 2010 2011  New Skin has shown a strong and positive growth in Net Profit where we only RM41, 625 in first year operation, but increase 24 times to 1 million profit in 2011 (5 years operation)  In year 2007, H1N1 pandemic induced company invest in production capacity and in two years time, the net profit shown that the strategic move is wise enough. 19
  20. 20. 4. FINANCIAL STATEMENTS Total Expenses in 5 Years Total Expences for the Year 6,000,000 5,429,000 4,662,500 5,000,000 3,886,125 4,000,000 3,000,000 2,000,000 958,375 1,298,250 1,000,000 - 2007 2008 2009 2010 2011 As the company grow bigger with expansion, the expenses of the company will increase as well, as the cost of goods sold increase due to increase of number of employees, the increase price of raw material, the increase of operating cost, maintenance of machineries. 20
  21. 21. 4. FINANCIAL STATEMENTS Total Revenue with COGS in 5 Years 7,000,000 6,500,000 6,000,000 5,000,000 5,000,000 4,200,000 4,750,000 4,000,000 4,304,000 3,000,000 3,586,000 2,000,000 1,500,000 1,000,000 1,000,000 1,146,000 901,000 - 2007 2008 2009 2010 2011 Revenue from Sales of Good Cost of Sales  The bigger jump of sales is during year 2009 where H1N1 pandemic occurred globally which push glove demand to another high level.  From 1 million sales in first year, New Skin has achieved incensement of 6 times to 6.5 million sales in year 2011. 21
  22. 22. 4. FINANCIAL STATEMENTS Total Assets in 5 Years TOTAL ASSETS 4,000,000 3,620,750 3,397,250 3,500,000 3,049,750 3,000,000 2,500,000 2,000,000 1,513,375 1,500,000 1,061,625 1,000,000 500,000 - 2007 2008 2009 2010 2011  The asset of company consistently increase which is consistently with the expansion and growing of the company.  Purchased of factory and equipment in 2009 as H1N1 pandemic to increase production capacity 22
  23. 23. 4. FINANCIAL STATEMENTS Total Liabilities in 5 Years Total Liabilities 2,000,000 1,840,000 1,800,000 1,600,000 1,400,000 1,155,000 1,200,000 1,000,000 800,000 655,000 600,000 270,000 400,000 200,000 20,000 - 2007 2008 2009 2010 2011  Highest liability during 2009 due to bank loan for new plant and production capacity expansion  But the liability reduced consistently about 30% after that as the return of investment started to generate income 23
  24. 24. 4. FINANCIAL STATEMENTS Total Eqiuty in 5 Years Total Equity 2,965,750 3,000,000 2,500,000 1,894,750 2,000,000 1,557,250 1,500,000 1,243,375 1,041,625 1,000,000 500,000 - 2007 2008 2009 2010 2011  Consistent increase trend can be seen majoring contributed by the consistent increase of retained profit from each years net profit after taxation.  Consistent increase of 20% to 40% 24
  25. 25. 4. FINANCIAL STATEMENTS Balanced Equilibrium 4,000,000 3,620,750 3,397,250 3,500,000 3,049,750 3,000,000 2,500,000 2,000,000 1,513,375 1,500,000 1,061,625 1,000,000 500,000 - 2007 2008 2009 2010 2011 Total Equity Total Liabilities TOTAL ASSETS Equities + Liabilities = Assets 25
  26. 26. 5. PROJECTION OD BUSINESS Projection of Business Prospect In terms of Equity and Asset, we have started with RM1,000,000 and by 2011 it reached RM1,894,750. The retained profit expected will continue to RISE as PROSPECT company will continue generate income. As company continue to expand with new plant, more cash, more facilities, asset will continue to build up. In terms of liability, HIGHEST figure achieved was RM1.8 million and the amount continue to reduce about 30% per annum. Thus, as company direction increase cash flow on hand and reduce debt, the figure will continue to decrease until clear off the loan and left minima liability. In terms of Sales and Cost of Good Sold, it is expected to increase in both elements. However, the total revenue will sales will be made sure always higher than COGS as that is our profit. As more cost reduction step in place, higher profit margin able to be generated. 26
  27. 27. 5. PROJECTION OD BUSINESS Projection of Business Prospect In terms of Profit, New Skin’s profit has grown from RM41, 625 until RM 1 million in 2011, an increase of 24 times of increase over 5 years. PROSPECT The company is working on completing 4th plant, with an investment of RM 5 million. It is decided to the production of Nitrile gloves, could potentially add another RM 1 million in revenue to the group annually, based on the current average selling price. New Skin future profit will able to achieve a consistent increase of 25% to 50% depending on the market fluctuation. Target to achieve 10 million profit in future 5 years 27

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