BUSINESS PLAN

DRAGON FRUIT DRINKS COMPANY

HEAD OFFICE :NO 24, Jalan TU 41, Taman Tasik Utama, 75450 Ayer Keroh, Melaka, Malaysia.E-mail: fruitdrinks_co@yahoo.comWebsite: www.dragonfruitdrinks.com.my

FACTORY: Dragon Fruit Industries LimitedKaw. Perindustrian Ayer Keroh,75450 Ayer Keroh, Melaka, Malaysia.

NAME AND ADDRESS OF THE PRINCIPALS

Wan Abdul Azim bin Wan Abdullah Sabary No25, Taman Ayer Keroh Height,74201 Ayer Keroh, Melaka.Contact no: 016-7503127Email: wanabdulazim@yahoo.com

Amirul Faiz bin Fadzil No14, Taman Bukit Katil Indah,85412 Bukit Katil, Melaka.Contact no: 019-1743124E-mail: amirulfaiz@yahoo.com

Muhammad Haikal bin Shamsuri 73/9, 8/A Kampung Tersusun Jasin,47195 Jasin, Melaka.Contact no: 017-1101420E-mail: Haikal@yahoo.com

Muhammad Zulfadhli bin Roslane Km14.5 Kampung Durian Tungal,954125 Durian Tungal, MelakaContact no: 017-1446294E-mail: Fdln@yahoo.com

Muhammad Aisamuddin bin IdrisJ8461, Kampung Bukit Beruang,75412 Bukit Beruang, Melaka.Contact no: 012-5421568 E-mail: aisamuddin@yahoo.com

NATURE OF BUSINESS:

We form our business as a partnership business.

The types of our business are Manufacturing Dragon Fruits Juices, Distributor/ Wholesaler

STATEMENT OF FINANCING NEEDED:

Initial financing requested of the company is RM100,000 loan to be paid off over five years from Bank Muamalat Berhad. This debt will cover office space, office equipment, and for supplies two leased vans, advertising and selling cost. The partners provided RM 50,000 jointly. So, the total cost of the project estimated at RM150,000.

Share of the Profit and Loss

NAME OF WORKING PARTNERSHARE OF PROFITSHARE OF LOSS

1.Wan Abdul Azim25%25%

2. Amirul Faiz15%15%

3.Haikal Sham25%25%

4. Muhammad Zulfadhli15%15%

5. Muhammad Aisamuddin10%10%

Confidential Agreement

The undersigned reader acknowledges that the information provided by Muhammad Aisamuddin in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Wan Abdul Azim, chairman Dragon Fruit Drinks Company .

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to membership.

Upon request, this document is to be immediately returned to chairman.

___________________Signature

Wan Abdul Azim

___________________Date

This is a business plan. It does not imply an offering of securities.

EXECUTIVE SUMMARY

We have prepared report is based on Business Plan on Dragon Fruit Drinks Company . To prepare this report we have followed marketing research methodology for whose are children and diabetic people. The information, on which the total business plan stands, was the collection of data from the questionnaire made by Dragon Fruit Drinks Company . To see the market need and wants. The survey took place inside and outside of Malacca.

After analyzing questionnaires we made some plan about location, building source of finance, price, product promotion, and Channel of distribution. We selected our plant location at Kaw. Perindustrian Ayer Keroh. So we will get the raw materials easily. We will preserve 500kg of dragon fruits per a month. We keep our price relatively low than other soft drinks and fruit juice. We will place our advertisement at television & banner. We will distribute our product nearby shop of Malacca city in the form of bottle packaging so that consumer can get it easily. The whole production process is in strict conformity with international standards, and constant research and development all products. We are confident that our products and services will satisfy the highest of standards

Our pricing policy will be reasonable and channel of distribution will be convenience. So our target customers will get it easily. We hope that we will carry a good and competitive market share in soft drinks industry. Dragon Fruit Drinks provided superior value to their customer who they promised throwing advertising. So the customer are loyal the Dragon Fruit Drinks bran and build long term relationships.

Though it is exist in our country, but there is a great potentiality in this sector. If we can able to flourish this sector by investing more, our national economy will be flourishing. As well as there are lot of people may earn from this sector and can increase their life style as well increase our KDNK.

Industry Analysis

INDUSTRY ANALYSIS

FUTURE OUTLOOK AND TRENDS:

Many juice companies are already established. We determine our competitor as TROPICANA, MINUTE PULPY, F&N etc. Our company will be based on beverage products. We mainly want to produce dragon fruit juice. We are going to make fresh juices 3 flavors in drinks available throughout the year Dragon fruit + Orange, Dragon fruit + mango and Dragon fruit Cocktail special. It is a partnership business. Initially we prepare our business plan for three years. Next three year we target that we capture 5% of total market share. When our company will start, only one products we produce at that time. We wish to achieve a so much customer and consumer response in 1 year. It wills our betterment of our company. We get best wishes to our target customer and also the mind of the customer will obviously great beliefs of our products. Because we mention that, our product will free from sugar, fat & harmful chemicals. We expect the sales will be in next year approximately RM300,000. The return on investment is 20% expected.

ANALYSIS OF COMPETITORS:In food & beverage market there are many renowned companies having their juice products.

Tropicana F&N Marigold Fruit Tree

MARKET SEGMENTATION:

We segment our market according to the demographic segmentation. In these segmentation criteria we segment our customer according to: Age, Sex, Income, and Occupation. Our main target customer is dragon fruits lover.

Business Description

BUSINESS DESCRIPTION

Our business name is Dragon Fruit Drinks Company and our Dragon Fruit Industries Limitedis located in Ayer Keruh, Melaka.

FRESH JUICES:For the first time we are producing dragon fruit drink for testing the consumer market.

We are going to make fresh juices 3 flavors in drinks available throughout the year Dragon fruit + Orange, Dragon fruit + mango and Dragon fruit Cocktail special.

OUR SPECIALTY

Our specialty, we produce juice for the children and health conscious people, because we reduce the fat level on 0.5% and add extra vitamins and add some sugar that are best for diabetic people.

100% pure juice

Pure Sugar free

Diet

Mixed flavor ( cocktail)

SIZE OF BUSINESS:

This business will produce & provide consumer product and organize medium size business. Initially we will cover the 2 division of the country but our prospect will be whole of the country.

OFFICE EQUIPMENT:

As a Medium business we start our business with some necessary equipment. Our main office established in 250 Square ft Space and industry is established in 3000 square ft space. We arrange our main office with; 10 computers, 6 printers, 10 tables, 50 chairs, 10 fans, and 6 air-conditioners. These are our main office equipments but there are also some other stationary and inventory. The inside view of our main office in below:

PERSONNEL:

For our new established business we will prefer skillful and capable employees who are also experience personnel in their own sector. We will try to maintain quality full employees, than quantity.

BACKGROUND OF ENTREPRENEURS

NoDescriptionDetails

1Name of the companyDRAGON FRUIT DRINKS COMPANY

2Business addressNO 24, Jalan TU 41, Taman Tasik Utama, 75450 Ayer Keroh, Melaka, Malaysia.

3Correspondence addressNO 24, Jalan TU 41, Taman Tasik Utama, 75450 Ayer Keroh, Melaka, Malaysia.

4Telephone numberOffice : 06 2325489H/P : 012-8549625

5Main activity/activitiesManufacturer and seller dragon fruits drink.

6Date of registration02 April 2014

7Registration number002045814-V

8Name of bankBank Muamalat Berhad

9Bank account number04010003514852

NoDescriptionDetails

1Name of the owner/partnersOwner: Wan Abdul Azim Partners: Amirul Faiz Haikal Sham Fadhli Muhammad Aisamuddin

2Identity card number820525-04-5208

3Permanent address24 Jalan Tu 18, Taman Tasik Utama, 75450 Ayer Keroh, Melaka

4Correspondence address24 Jalan Tu 18, Taman Tasik Utama, 75450 Ayer Keroh, Melaka

5Telephone number House : 06-2824512 H/P : 012-8549625

6Date of birth25 March 1982

7Age32 Years

8Marital statusMarried

9Academic qualifications Diploma of Accountancy at Polytechnic Merlimau Bachelor of Technology Management (InnovationTechnology) With Honours (CP54) at Universiti Teknikal Malysia Melaka

10Courses attended Accountancy Technology Management

11SkillsExpert in management and accountancy

12Experience

13Present occupation

Business Strategy

BUSINESS STRATEGYObjective:

Become as the Best New Dragon Fruits Drinks in the Malaysia. Improving the customer satisfaction through the good quality of products Turn in profits from the first year of operations. The creation of unique, innovative and healthy products that will differentiate Dragon Fruits Drinks from local juice shops. Four new Outlets in next five years in other city of Malacca. To exceed 6 million in annual sales by the third year of plan implementation.KEYS TO SUCCESS FACTORS:

Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best juices preparation techniques. Marketing strategies aimed to build a solid base of loyal customers The products we serve are of the highest quality. We combine this quality with great service and atmosphere Customer satisfaction with high quality juices and services Competent management staff whose makes the drink and shakes fresh and good quality Location is our key success factor means that on Ayer Keruh is very suit able for our business. Management that treats every employee equally. We create an atmosphere where employee's love coming to work and can earn good money. Our commitment to providing excellent quality drink at all times Excellent Customer Service. Quick delivery and each customer will be treated as would an honored guest in our homes Product quality. Not only great food but great service and atmosphere The creation of a unique, innovative, upscale atmosphere that will differentiate Fresh drink daily will give customers a unique experience as well as excellent product. Maintain good relationships with reliable supplier Repeat customers.

MISSION:

Establish Dragon Fruit Drinks Company as the Local leading source of healthy energy in the form of freshly juices with an uncompromising commitment to making a difference through our values.

VISION:

Making Dragon Fruit Drinks capable of providing all of the customers' needs with the assurance of outstanding qualities to all over Malaysia.

Production Plan

PRODUCTION PLANBACKGROUNDPitaya Fruit, Pitahaya Fruit or commonly known as the Dragon fruit is among the most nutritious and wonderful exotic fruits. It is a favorite to many, particularly people of Asian origin. It features a mouth watering light sweet taste, an intense shape and color, not forgetting its outstanding flowers. In addition to being tasty and refreshing, this beautiful fruit boasts of a lot of water and other vital minerals with varied nutritional ingredients.Due to its vital nutrients, the Dragon fruit is suitable for all diets as it supplements fiber which is best for laxative and the liver. Similarly, people who have high blood pressure, diabetes and obesity have attested to the fruits goodness. Recent findings show that if an obese person eats a Dragon fruit on a regular basis, it naturally reduces the weight considerably, creating a well balanced body without compromising on the individuals health.You can stay healthy by eating a dried or fresh Dragon fruit. For the people suffering from diabetes, a dry or fresh Dragon fruit guarantees one of blood glucose control. Basically, a dry Dragon fruit has about 10 times the punch of a fresh one, with an amazing chewy feel. To get a simple, healthy chewy texture, blend in a dried Dragon fruit into your salads. On the other hand, a fresh Dragon fruit features a soft creamy feel.That said, you can eat Dragon fruit as a desert, raw, of you can make its juice and use in cocktails. Cocktails of ice cream are an example, or you can even ferment the cocktail into a mouthwatering healthy alcoholic beverage. In Taiwan for instance, the Dragon fruit fruit is used by diabetics to substitute food for rice and to enhance the fiber content of the diet.

RAW MATERIALSThe primary ingredient for making a Dragon Fruit Drinks is off course, the Dragon fruit itself. Dragon fruit fruits are highly concentrated with Vitamin C, minerals and boasts of high fiber content. The following table shows a characteristic nutritional value of the dragon fruit. Equally available in affluent in a dragon fruit is phytoalbumins. Basically, these nutrients are vital and known world over for the antioxidants they possess which usually help in the prevention of the formation of free radicals that cause cancer.

OTHER ADDITIVESPreservatives such as sulfur dioxide or sodium benzoate are allowed by federal regulation in Dragon fruit juice although the amounts are strictly controlled. Similarly, ascorbic acid, alpha tocopherol, EDTA, BHA, or BHT are used as antioxidants. Sweeteners may be added in the form of corn syrup, dextrose, honey, or even artificial sweeteners. More often, though, citric acid is added to provide tartness.Manufacturers may also fortify juices with extra vitamins or supplemental nutrients such as vitamin C, and less commonly, vitamins A and E. There is some concern about the stability of these added vitamins because they do not survive the heating process very well.Calciumin the form of tricalcium phosphate, is also frequently added to Dragon fruit juices.

PRODUCTION PROCESSHARVESTING/COLLECTIONDragon fruit are harvested from large groves. Some Dragon fruit growers are members of cooperative packing and marketing associations, while others are independent growers. When the mature fruit is ready to pick, a crew of pickers is sent in to pull the fruit off the trees. The collected fruit is sent to packing centers where it is boxed for sale as whole fruit, or sent to plants for juice processing. The Dragon fruit are generally shipped via truck to juice extraction facilities, where they are unloaded by a gravity feed onto a conveyor belt that transports the fruit to a storage bin.

CLEANING/GRADINGThe fruit must be inspected and graded before it can be used. An inspector takes a 39.7 lb (18 kg) sample to analyze in order to make sure the fruit meets maturity requirements for processing. The certified fruit is then transported along a conveyor belt where it is washed with a detergent as it passes over roller brushes. This process removes debris and dirt and reduces the number of microbes. The fruit is rinsed and dried. Graders remove bad fruit as it passes over the rollers and the remaining quality pieces are automatically segregated by size prior to extraction. Proper size is critical for the extraction process.

EXTRACTIONProper juice extraction is important to optimize the efficiency of the juice production process as well as the quality of the finished drink. The latter is true because oranges have thick peels, which contain bitter resins that must be carefully separated to avoid tainting the sweeter juice. There are two automated extraction methods commonly used by the industry. The first places the fruit between two metal cups with sharpened metal tubes at their base. The upper cup descends and the fingers on each cup mesh to express the juice as the tubes cut holes in the top and bottom of the fruit. The fruit solids are compressed into the bottom tube between the two plugs of peel while the juice is forced out through perforations in the tube wall. At the same time, a water spray washes away the oil from the peel. This oil is reclaimed for later use.The second type of extraction has the oranges cut in half before the juice is removed. The fruits are sliced as they pass by a stationary knife and the halves are then picked up by rubber suction cups and moved against plastic serrated reamers. The rotating reamers express the juice as the Dragon fruit halves travel around the conveyor line. The extracted juice is filtered through a stainless steel screen before it is ready for the next stage. At this point, the juice can be chilled or concentrated if it is intended for a reconstituted beverage. If a NFC type, it may be pasteurized.

PACKAGING/FILLINGTo ensure sterility, the pasteurized juice should be filled while still hot. Where possible, metal or glass bottles and cans can be preheated. Packaging which cannot withstand high temperatures (e.g., aseptic, multilayer plastic juice boxes which don't requirerefrigeration) must be filled in a sterile environment. Instead of heat, hydrogen peroxide or another approved sterilizing agent may be used prior to filling. In any case, the empty packages are fed down a conveyor belt to liquid filling machinery, which is fed juice from bulk storage tanks. The filling head meters the precise amount of product into the container, and depending on the design of the package, it may immediately invert to sterilize the lid. After filling, the containers are cooled as fast as possible. Dragon Fruit Drinks packaged in this manner has a shelf life of 6-8 months at room temperature.

BYPRODUCTS/WASTEBy products from Dragon Fruit Drinks production come from the rind and pulp that is created as waste. Products made with these materials includedehydratedfeed for livestock, pectin for use in making jellies, citric acid, essential oils, molasses, and candied peel.

QUALITY CONTROLQuality is checked throughout the production process. Inspectors grade the fruit before the juice is extracted. After extraction and concentration, the product is checked to ensure it meets a number of USDA quality control standards. The most important measurement in Dragon Fruit Drinks production is the sugar level, which is measured in degrees Brix (percentages by weight of sugar in a solution). The types of Dragon fruit used and the climate in which they were grown effect the sugar level. Manufacturers blend juices with different sugar levels together to achieve a desired sugar balance. The final juice product is evaluated for a number of key parameters include acidity, pulp level, pulp cell integrity, color, viscosity, microbiological contamination, mouth feel, and taste. A sensory panel is used to evaluate subjective qualities like flavor and texture. Lastly during the filling process, units are inspected to make sure they are filled and sealed appropriately.

THE FUTUREFuture processing improvements are likely to come from the use of computer controlled sizing and grading of fruit. Dragon Fruit Drinks formulations will see changes as the trend toward adding more nutrition-oriented ingredients, such as antioxidants, continues. In addition, future formulas are likely to be blends of orange juice with other, more exotic, fruit flavors, like kiwi, or even vegetable juices, like carrot.

PHYSICAL PLANT:

Our production plant situated in Taman Tasik Ayer Keroh near MITC (Malacca International Trade Centre) in Malacca. The physical plant is as follows:

Marketing Plan

MARKETING OBJECTIVES

MAXIMUM PROFIT MARGIN

The big price objective dragon fruit drink company that they want to provide high quality product and giving satisfaction to clients. Dragon Fruit Drinks contain maximum profit margin other than their competitors.

QUALITY LEADERSHIP

Main objective Dragon Fruit Drinks Company is give quality to their customer, Dragon Fruit Drinks also promise will provide quality that is best and satisfy customer and make their requirement deliver the quality product.

LONG RELATIONSHIPS WITH CUSTOMER

Dragon Fruit Drinks is provided superior value to their customer who they promised throwing advertising. So the customer are loyal the dragon fruit drink brand and build long term relationships.

COMMUNICATION OBJECTIVE

The objective Dragon Fruit Drinks is attract any amount many customers to consider it self this product and also made awareness to new customer on Dragon Fruit Drinks. Apart from that, customers can feel Authentic Taste, the only company that gives you the authentic taste of the fruits, not a ton of sugar and flavor, no chemical taste, no overcooked taste, just the authentic taste of the fruit

STRATEGY MARKETING OBJECTIVE

To build unique distribution system that provides ubiquity at low cost. To build high speed, efficient and vertical integrated manufacturing capabilities to gain low cost advantage. To reduce energy consumption during production To increase advertisement activities. To redesign packaging to a more attractive and familiar. To make innovation in product so that it become more portable and in convenience oriented form. To improve product quality as ever provide

PRICING STRATEGY

Dragon fruit juice is very concerned about the quality of the product. Dragon fruit juice set it juices price on value pricing method. Dragon fruit juice selling its juices at price added cost and profit margin and also keep in mind the key competitors price. Dragon fruit Juice provide it customer quality fresh juices that provide customer good health and enjoyment. The main objective that its responsibility to provided best quality who they promised to their customers and they fulfill their promised. Dragon fruit juice is a big price objective that they provided high quality and taken premium price to its customer. Dragon fruit juice contain maximum profit margin is another objective of pricing strategy. Dragon fruit juice provided superior value to their customer.

DISTRIBUTION STRATEGY

A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired fruit juice sales. We select place for Dragon fruits and drink company near University Teknikal Melaka (UTEM industry campus).Our location very attractive because that place also very famous for student. There is no any fresh fruit juices shop. That place is also attractive for juices because there is no juices corner but there are many good food restaurants Mua Station and Jom Singgah restaurant. So that is advantage of place for dragon fruit juice.

We actually distribute our product in two ways:

1. B2B (Business to Business)

2. B2C (Business to Consumer)

We show our distribution channel in chart below:

Manufacturer

Dealer

WholesalersAgent

Retailer

Business to Business (B2B)

PROMOTIONAL STRATEGIES

Marketing strategies Dragon Fruit Drink, by using a newspaper, billboard, television and radio. Dragon Fruit Drink also used to put flyers to be provided to the public. Besides that, flyers also describes the location where Dragon Fruit Drink place and we make a promotion for students. Dragon fruit Juice uses the channel to attract the customer and give fully information about juices through these Electronic media. As our target consumers are worker, student and Children and all health conscious people, for this reason we promotion our product to give advertise in television, radio. We also use vehicle writing method and posturing for our product advertisement. We also promotion our product with the help of our packaging system. In packaging we mainly follow that the product will packaged in an attractive form, that make consumers interest on our product. It packaged in different levels in variation of quantity. So people can afford it easily.

Product forecasts:

This types of product continuing in the market on the basis of their features, reasonable price, standard maintain and also quality. We are also prepared and determine that our product will be quality full and reasonable price that why we are optimist about our product that will be continue a certain time.

Controls:

We believe in best quality. In producing our product we maintain quality as well as quantity. For control the products quality we will import best quality equipment from abroad. We also standardization our product from our expert researcher. Our whole production process mainly base on computer for this reason is done by a very systematic process. We produce our product which has no harmful chemical. That why these products have no side effect and every one in every age can use our entire

Organizational Plan

ORGANIZATIONAL PLANFORM OF OWNERSHIP

This business is form base on business partnership that considers all partners are responsible for the business. All partners are responsible for all investments and debt of the company. This Dragon Fruit Drink ltd established with 4 partners initially. Each partner has their own particular liability in the company.

MANAGEMENT TEAM BACKGROUNDOur company management philosophy is based on responsibility and mutual respect. Our management style according to owner participation. We encourage everyone to learn as much as possible about all aspects of the business. We also apply a very strong organizational culture and mutual trust and teamwork.Our main goal is to develop our management team that organizes efficiently and effectively to our businesses. The management teams are including those people who have the real ability in making the impossible possible. All members can be said to be experienced in the practical field.ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATIONIn our company, we appointed four managers below the CEO to conduct management activities that vary in different sectors. We appointed by the two parties which have been set. They are production and operation manager jobs, marketing jobs, planning and development work, and the work of finance. We only appoint highly qualified workers especially for our company. Under the manager of our department, there will be have several officers working under the manager to reduce pressure of all managers.

ENTREPRENURE/ CHAIRMANWan Abdul Azim bin Wan Abdullah Sabary is the Chairman of Dragon Fruit Drink Company. He was selected by the all partners of the company who actually give the command over the invention and control all the departments.All the business partners and personnel are responsible to perform the duties as the chairmen stated. His main responsibility is to maintain the suppliers to ensure the continuity of good relations to them. The Head of the company is who actually control and implements all partner idea about the business. It means an individual developing something unique. It is behaves as:1.Initiative taking 2.The acceptance of risk or failure HEAD OF PRODUCTION & OPERATIONAmirul Faiz bin Fadzil is our Head of Production, and he has a complete and strong command over operational management and production analysis. Production manager main responsibility is to describe the physical plant layout, the machinery and equipment needed to perform manufacturing operation, raw materials and suppliers names, address and terms, and cost of manufacturing. A production manager allocates the raw materials from different suppliers to produce the final products. The responsibilities are: Purchasing the dragon fruits with better quality from food market Responsible for all the operations within the cleanness, quality of food, and timely delivery to the customer Recode all expenses of fruits Able to works with all other managers Manage labor and control the production system Motivate the labors and make the reward opportunities

HEAD OF MARKETINGMuhammad Haikal bin Shamsuri is our head of marketing. He has completed his graduation on marketing major and he has good command over marketing. The marketing involve implementing decisions related to the marketing mix variables products, price and promotion activities. It also helps effective decision strategy as well as forecasting sales, products or services is indicated in order to project profitability of the venture. The main responsibilities are: Focus on the customer Monitor the competition Branding Find direct or outside vendors Create new ideas Set the strategyHEAD OF PLANNING & DEVELOPMENTMuhammad Zulfadhli bin Roslane is our head of planning and performance management. He has the strength to take decision and maintain the company performance. These department officers involve setting the goals and how to be achieving that. It also helps to develop the existing product. The responsibilities are: Recruit staff Give reward Management development / career development Planning for success Competency Compensation Support the development of the team members To facilitate development of staff with special focus on line management

HEAD OF FINANCEMuhammad Aisamuddin bin Idris is our Head of financial manager and planner. He has a great command over finance because he has an educational and financial management background. Financial manager responsibilities are to projection of financial data which determine economic flexibility and necessary financial investment and commitment. Financial officer control the all finance related task in an organization. The Responsibilities are: Accounts Payable Accounts Receivable Audit Budgeting Cash Receipts Fixed Assets Current Assets Benefits Utility Billing

Financial Plan

FINANCIAL PLAN

Dragon Fruit Drinks CompanyCash Flow ProjectionsFor the year ended 31st July 2011

ParticularsDetails(RM)

Cash flow from operating activities:

Net income6,424.60

Adjustment to reconcile act income to net cash:

Add: Depreciation/ Amortion13,546.00

Loss on sale of equipment4,584.80

Decrease in prepaid expenses8,336.00

Increase in accured expenses payable2,250.70

Less: Increase in account receivables(11,670.40)

Increase in inventories

(3,959.60)

Decrease in account payable(2,709.20)

Net cash provided by operating activities16,802.90

Cash flow from investing activities:

Add: Sales of plant assets3,959.60

Investments20,840.00

Less: Purchases of equipment(9,586.40)

Purchases of land(108,368.00)

Purchases of building

(44,305.85)

Net cash used by investing activities(137,460.65)

Cash flow from financing activities:

Add: Common stock0.00

Less: Paid of cash dividend(3,542.80)

Redemption of bond(0.00)

Net cash used by financing activities(3,542.80)

Net cash Decrease in during year(124,200.55)

Add: Opening cash balance4,584,800.00

Cash of the end of the year4,460,599.45

Dragon Fruit Drinks CompanyProforma Balance Sheet

For the year ended 31st July 2011

Liabilities(RM)Assets(RM)

Currents LiabilitiesCurrents Assets

Account payable20,006.40Cash and cash equivalents1,829,800.00

Supplier33,569.10Inventories71,043.55

Tax payable4,415.60Bank273,129.05

Notes payable38,970.80Account receivables541,875.45

Accrued payable19,714.65Prepaid expenses270,952.00

Marketable securities354,280.00

Long-term Liabilities

Bank loan1,445,037.25

Reserve fund57,726.80

Total current assets3,341,080.05

Owners EquityFixed Assets

Wan 1,237,896.00Land &Building712,550.15

Aisamuddin779,416.00Machinery & Equipment1,675,424.05

Fadhli 1,237,896.00Freezer105,304.50

Haikal 779,416.00Furniture and fixture77,288.25

Faiz 550,176.00Computer46,890.00

Cover Van145,880.00

Staff vehicles99,823.60

Total Owners Equity4,584,800.00

Total Liabilities6,204,240.60Total Assets6,204,240.60

BREAK EVEN ANALYSIS

Dragon Fruit Drinks Company

Break Even Analysis for the Year Ended 31st July 2011

Fixed CostVariable Cost

Computer46,890.00Raw Materials422,864.45

Cover Van145,880.00Factory Overhead Cost3,334.40

Air Conditioner30,009.60Miscellaneous expenses3,751.20

Photocopy Machine22,924.00Salaries & wages45,431.20

Gas Generator60,436.00Marketing Van6,668.80

Staff Vehicles99,823.60Utility Bill4,126.30

Furniture & Fixture77,288.25Advertisement120,872.00

Freezer105,304.50Packaging Cost95,864.00

Land & Building212,358.15Telephone Bill3,751.20

Total Fixed Cost800,914.10Total Variable Cost706,663.55

Total Cost = Total Fixed Cost + Total Variable Cost

RM (800,914.10 + 706,663.55)

RM 1,507,577.65

Selling price per unit: RM 2.00

Variable cost per Unit: RM 1.70

47

BREAK EVEN QUANTITY

Fixed Cost / (Selling Price Per Unit Variable Cost Per Unit)

RM 800,914.10/RM(2.00-1.70)

RM 800,914.10/RM 0.30

2669714 (Approximately)

BREAK EVEN SALES

Total produced unit * Revenue

2669714 * 0.30

RM 800,914.10 (Approximately)

SOURCE OF APPLICATION OF FUND

Our total equipment and capital is RM 4.5M and we have taken a loan amount of RM 1.5M to improve our product quality. Now our total capital is RM 6M. The amount of RM 6M that we have in which areas we use this money is given below:

Plant and MachineryRM 1,813,080.00

Transportation CostRM 104,200.00

Staff Vehicles for the corporate OfficeRM 99,823.60

ComputerRM 46,890.00

Land &BuildingRM 812,550.15

Cover VanRM 145,880.00

Furniture and fixtureRM 77,288.30

FreezerRM 105,304.50

Total UsedRM 3,205,016.55

Cash in HandRM 2,794,983.45

Assessment of Risk

ASSESSMENT OF RISK

EVALUATE WEAKNESS OF BUSINESS:

Our main weakness is our business is small size business, that why we have a very small capital. So we will able compete with the lower price competitor. And our resources are also limited in compare to competitors.

The company can improve or eliminate the risk by:

Analyze the economic situation

Doing a promotion campaign for example do to attract students

Evaluate the setup cost in right manner

Put the suitable selling price Dragon fruit juice

To compete with the competitors in an innovative technical way.

NEW TECHNOLOGIES:

We dont implement any kind of new technologies in primary stage of our business.

CONTINGENCY PLAN:

In the same time we saw that there big possibility to do a business nata de coco, dragon fruit jelly and products are manufactured using dragon fruit, it because this business has not yet produced in this country

APPENDIX

MARKETING RESEARCH DATA

As an initial stage of our business we actually follow some existing group of juice companies in our country .The main command of our business plan based on Boost Juice Bars. We followed them to prepare our new business invention. We research their marketing strategies in different formulas like we have collect data from website and observing the consumer market.

ABOUT BOOST JUICE BARS

In 2009 Boost Juice Bars came to Malaysia under the leadership of Dr Soraya Ismail and Nick Tiernan. They are the Malaysian and Singaporean Master Franchise Owners. Together, they bring to the business over 25 years of international business experience in retail and customer relationship management consultancy where they have successfully managed and delivered new business change on a multi-million dollar scale, across a range of industries in the US, UK, Europe, Australia, Japan, Indonesia and Singapore.

Boost offers a healthy alternative to fast food, which is encompassed in a brand perceived to be cool by young consumers. The menu offers Seriously Healthy and delicious smoothies, juices and crushes, all developed with the assistance of a nutritionist, all at least 98% fat free, with no added sugar and completely free from any artificial flavors or colorings.

Soraya explains that Boost is about more than a great-tasting product. Boost is not just another juice bar the brand is based is on the entire Boost Experience, which takes place every time a customer enters a store. This is a combination of a fantastic product, served by positive and energetic people, in a bright and colorful store environment.

Soraya is determined to change the eating habits of ordinary Malaysians and persuade them of the need for healthy eating and exercise. As a keen athlete herself, (she runs, cycles, swims and kick boxes regularly) she is always encouraging her staff and customers to love life. The first Boost store started juicing in June 2009 and has grown to 27 stores in Malaysia and 5 in Singapore.

OUR PROCESS OF COLLECTING INFORMATION FROM PRIMARY SOURCES:

Primary Sources of Information:

As primary information sources we use following media:

1. Investment Bankers

2. Sales Force

3. Suppliers

4. Customers

5. Employees

6. Consultants/Specialized Firms

As Secondary information we use following media:

WEBSITE

1. www.google.com 2. http://www.slideshare.net/christianhoeller/smoothie-and-juice-bar-business-plan3. http://www.boostjuicebars.com.my/products-3-2/