1.

COMPANY BACKGROUND

ABC Services was founded by two individuals named John Clixford and H. Mahalingam with vast experience in both cleaning industry and management skills in 2010 and it was incorporated to ABC Sdn. Bhd in 2011. Although it was started with a modest amount of capital but today ABC Sdn. Bhd. is growing fast in every aspect in order to meet the demand of the fast growing Industry. We are supported by a strong management team comprising people with relevant technical experiences. Below is ABC Sdn. Bhd. facts:

Authorized capital Paid Up Capital NO. of Employye Corporate Office Branch(es)

: RM250,000 : RM180,000 : 55 (28 male & 27 female) : 3.2-17, Menara Ismail, Jalan Tun Ismail, 50150 Kuala Lumpur : Penang & Johor

We specialized in hygiene cleaning for healthcare industry, special services such as tile furnishing, carpet care, blind & window cleaning as well as customized cleaning as per our clients request. Our clients range are healthcare, retail, manufacturing, government and small and medium offices. Some of our clients are Tropic Medical Centre, Sensational group of companies, Kayu Hitam Sdn. Bhd., Plastics Pro Manufacturing Sdn, Bhd., etc.

We believe that a good health is conducive to the productivity and the quality of our surrounding. W strived to provide excellent cleaning services to satisfy the challenging need of our customers.

Our customers are an evidence for our achievement. Based on our experience in cleaning industry, we have a competitive edge in the following areas such as our professional cleaning system is designed to cater our clients customized need in order to achieve their requirement based on their budget, our experience technical staff and trained workers aspire to deliver high quality cleaning services and our modern equipment together with the right choice and quality of chemical used in executing our task enable us to ensure a better finishing. Entrusted with the task of your housekeeping services, being a professional people in the cleaning industry will henceforth take full responsibility of your premises and ensure that we will employ our best effort in meeting your requirement.

With the fast development in the house keeping department toward achieving certification of ISO 14000 and the implementation of 5s in the organization with experienced technical staff will be able to support and assist in making efforts a reality. As the realization toward the important of house keeping increase among the industrial society, it is our duty to upgrade our house keeping requirement in order to the industrial standard. In doing all this we believe that your business will be a success.

2.0 COMPANY OBJECTIVES The commercial cleaning industry sector has traditionally been flooded with small, privately held and operated businesses. But then again, there is a lack of professional and standardized service in the commercial cleaning industry and so there is definitely plenty of room for new players like us. In fact, the rate of turn-over in the industry is very high because of the number of commercial cleaning suppliers who fail to deliver a consistently high level of service to their customers. In order for any commercial cleaning supplier to be successful, it must be run as efficiently as any other businesses. The employees are well trained and constantly trained by qualified industry trainers. Our employees deliver consistent results when it comes to cleaning and there are evaluated by our qualified supervisor. We have grading system for our cleaning staff as well all our new staff required to undergo two(2) weeks hands on training before they were given the responsibilities. For healthcare industries, we use innovative cleaning equipment and methods to remove illness-causing germs and reduce cross-contamination and the spread of infection. One of the biggest reasons that commercial cleaning companies lose their contracts is due to a lack of service and non-performance. So, as a commercial cleaning provider, we guarantee 100% customer satisfaction. This is achieved not only with high level of cleanliness but also with a follow up on after service. After the cleaning services, if customer is not satisfied, we guarantee free services again till it is rectified. In the coming years, many analysts project that the greatest demand for commercial cleaning suppliers will come from health care, education, nursing homes and other private facilities. As most economists agree that the commercial cleaning industry is one to watch. As such ABC will like to expand and diversify in the healthcare industry such as medical and surgical cleaning, Aircraft cleaning as well as opening franchising opportunities for entrepreneurs.
3

As part of this objective in mind, ABC Sdn. Bhd. primary objectives are to fulfill stakeholders' expectation as well by meeting companys objectives by achieving at least a minimum of 10% market share by the year 2012. Not only that, maximize share holders profit by ensuring that we constantly improve our service level to achieve the target sales. We aim is to placing ABC as one of the primary service provider in Malaysia.

Our guarantee to our customers is 100% commitment in providing quality products and services at competitive prices. We deliver our service in timely manner and with high service level of customer services satisfaction.

3.0 THE MARKET ANALYSIS The commercial cleaning industry is one of the fastest growing areas in this country. The reason is simply the fact that cleaning has been, and continues to be, a recession-proof sector. In fact, despite the global down-turn in the economy, the commercial cleaning industry is expected to outperform past years in 2010. We are planning to expand our services into three(3) key player which are healthcare industry, aerospace and franchising industries. This is based on the findings by our market analyst. According to Department of Statistic, Malaysia a total of 9,152 establishments operated in health and social work services in 2010, of which health services recorded the highest number of establishments, 6,739 establishments (73.6 per cent). Between 2007 and 2010, health services registered a compounding annual growth rate of 4.7 per cent (http://www.statistics.gov.my/portal /images/stories/files/LatestReleases/BE/BI/BE2011_KesihatanBI.pdf). Hence, with this growth we believe we can expand in various form of hygiene services to penetrate this market. Not many commercial cleaning companies involve in this matter which is consider high costing. Malaysian Aerospace Industry Outlook stated on their 2009 conference that the industry recorded RM24.7 billion turnover in 2009. It contributed 3.63% of national 2009 growth of 4 to 6% in 2010. Turnover in 2009 RM600 million was projected to reach RM1 billion by 2011 http://www.bciaerospace.com/malaysia/images/stories/2011%20might%20presentation.pdf). This clearly gives room for new opportunities for us to penetrate this less concentrated market by other key players in our industry.

ABC Sdn.Bhd. have been planning to expand by creating a franchise opportunities for new players. According to statistic report self employed for the year 2010 is 1,917.4 higher by 54.7 in

2009. This shows there is a growth interest in doing own business. Thus, creating opportunity will increase the market share. This directly will increase the total number of ABCs franchise companies, annual turnover, sales on product supply, etc.

With new investment capital and forecast business strategic 2012 implementation we believe we can achieve our stake holder expectation for the year 2012. Thus, achieving at least a minimum 10% of market share is possible.

4.0 FINANCIAL BUDGETING

Following is our financial budgeting which provide an important gauge of performance that investors can use to review our companys success. The main purpose of creating the financial budget is to provides the knowledge gap between the company and the outside world, which in turn reduces our small businesss cost of capital..

We have attached our financial budget for the 2012. This includes income statement 2012, balance sheet (as at 2012) and cash budget (January 2012 till December 2012). We hope that the information provided is sufficient to guide investors to invest in our company.

4.1 STATEMENT OF FINANCIAL PERFORMANCE ABC SDN BHD BUDGETED STATEMENT OF FINANCIAL PERFORMANCE FOR YEAR ENDING DECEMBER 31, 2012 YEAR TO DATE RM REVENUE COST OF GOODS SOLD GROSS PROFIT OTHER INCOMES FD INTEREST RECEIVABLES 25,000.00 125,000.00 LESS : EXPENSES ADVERTISEMENT DIRECTOR ALLOWANCE AUDIT FEE CASUAL WAGES CONSULTANCY FEE DIRECTOR FEE ELECTRICITY AND WATER EPF AND SOCSO INSURANCE PRINTING AND STATIONERY UPKEEP OF OFFICE EQUIPMENT (3,500.00) (27,000.00) (2,000.00) (19,000.00) (1,200.00) (48,000.00) (6,000.00) (8,040.00) (2,250.00) (660.00) (1,500.00) (119,150.00) NET PROFIT 5.850.00 350,000.00 (250,000.00) 100,000.00

4.2 STATEMENT OF FINANCIAL POSITION

A balance sheet, also known as a "statement of financial position", reveals a company's assets, liabilities and owners' equity (net worth). The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of our company's financial statements. Investors can review ABC's balance sheet to gauge its financial strength. Reviewing a firm's solvency is key, because the practice tells investors about the firm's short term financial survivor probability.

Financial-market participants call "going concern ability" a company's probability of staying in business over a period of 2012 year. A statement of financial condition provides insight into a company's assets, debts and equity capital. The following will be our balance sheet budgeting for the year ended 2012.

ABC SDN.BHD.S STATEMENT OF FINANCIAL POSITION AS AT 31/12/2012

31/12/2012 RM FIXED ASSETS FIXED ASSETS CURRENT ASSETS TRADE DEBTORS PREPAYMENT AND DEPOSITS CASH AT BANK - CURRENT ACCOUNTS CASH AT BANK - FIXED DEPOSIT (CIMB) CASH IN HAND INVENTORY 45,545.00 2,500.00 75,000.00 50,000.00 1,000.00 3,000.00 177,045.00 CURRENT LIABILITIES TRADE CREDITORS ACCRUALS AMOUNT DUE TO DIRECTOR OTHER CREDITORS 60,000.00 633.00 20,000.00 4,000.00 84,633.00 NET CURRENT ASSETS 92,412.00 185,850.00 FINANCED BY CAPITAL SHARE CAPITAL RETAINED PROFIT 180,000.00 5,850.00 185,850.00 93,438.00

10

4.3. FORECASTED CASH BUDGET FOR ABC SDN. BHD. AS YEAR 2012
January (actual) EXPECTED REVENUES Total Revenue $ 4,500 $ 9,500 $ 6,000 $ 7,500 $ 9,000 $ 11,000 February (projected) March (projected) April (projected) May (projected) June (projected)

EXPECTED EXPENSES

Staff Salaries & Fringe Benefits Executive Directors Remuneration Rent Supplies Telephone Postage Copying

$ 2,000

2,000

4,000

5,000

$ 5,000

$ 5,000

$ 3,167 $ 1,000 $ 5,000 $ $ $ 300 150 100

$ $

3,167 1,000

$ $

3,167 1,000

$ $

3,167 1,000

$ $

3,167 1,000

$ $ $

3,167 1,000 1,000 250 150 100

$ $ $

250 150 100

$ $ $

300 150 100

$ $ $

500 150 100

$ $ $

350 150 100

$ $ $

Total Expenses

$11,717

6,667

8,717

$ 9,917

$ 9,767

$ 10,667

NET INCOME

$ <7,217>

$ 2,833

$ <2,717>

$ <2,417>

$ <767>

$ 333

Cash on Hand Beginning Ending Cash Available(Before Loan Activity)

$ 2,648

$ <4,569>

$ <1,736>

$ <4,453>

$ <6,870>

$ <7,637>

$ <4,569>

$ <1,736>

$ <4,453>

$ <6,870>

$ <7,637>

$ <7,304>

11

Total Budget EXPECTED REVENUES

July (projected)

August (projected)

September (projected)

October (projected)

November (projected)

December (projected)

Total Revenue EXPECTED EXPENSES Salaries & Fringe Benefits Executive Director

$ 350,000

$ 22,000

38,000

40,000

$ 45,000

60,500

$ 97,000

$ 71,000

8,000

8,000

8,000

8,000

$ 8,000

$ 8,000

$ 38,000

$ 3,167

3,167

3,167

3,167

3,167

3,167

Rent

$ 12,000

$ 1,000

1,000

1,000

1,000

1,000

1,000

Supplies

$ 18,000

$ 4,000

$ 8,000

Telephone

4,000

300

250

300

500

350

350

Postage

1,800

150

150

150

150

150

150

Copying Total Expenses

1,200

100

100 $12,667

100

1,00

100 $ 12,767

100

$ 146,800

$ 12,717

$ 16,717

$ 13,717

$ 20,767

NET INCOME Cash on Hand Beginning Ending Cash Available(Before Loan Activity)

$ 203,200

$ 9,283

$ 25,333

$ 23,283

$ 30,183

$ 47,733

$ 76,233

$ 259,250

$ <7,304>

$ 1,979

$ 27,312

$ 50,595

$ 80,778

$ 128,511

$ 468,654

$ 1,979

$ 27,312

$ 50,595

$ 80,778

$ 128,511

$ 204,744

12

5.0 RATIO ANALYSIS

5.1 Quick Ratio As you can see the below the quick ratio (or quick assets ratio or the acid-test ratio), is a liquidity indicator that further refines the current ratio of our company by measuring the amount of the most liquid current assets there are to cover current liabilities. Therefore, a higher ratio means a more liquid current position.

Formula:

Components: Quick Ratio = RM126,000/RM84,633 = 1.489%

As of December 31, 20012, with amounts expressed in thousands, ABC Sdn.Bhd. quick assets amounted to RM126,000 (balance sheet), while current liabilities amounted to RM84,633.00 (balance sheet). By dividing, the equation gives us a quick ratio of 1.489%. The ratio shown in above calculation is higher. Thus it clearly indicates ABC company has more liquid position.

13

Variations: The quick ratio calculate quick assets (the formula's numerator) by simply subtracting the inventory figure from the total current assets figure. The assumption is that by excluding relatively less-liquid (harder to turn into cash) inventory, the remaining current assets are all of the more-liquid variety. The investors should understand that the liquidity remaining is healthier to the company as with the quick ratio of 1.489%

14

5.2 Current ratio As per financial statement the current ratio is used to test a company's liquidity (also referred to as its current or working capital position) by deriving the proportion of current assets available to cover current liabilities. Below is our current ratio calculation for references:

Formula:

Components: Current Ratio =RM177,045/RM84,633 =2.09%

As of December 31, 2012, with amounts expressed in thousands, ABCs current assets amounted to RM177,045.00 (balance sheet), which is the numerator, while current liabilities amounted to RM84,633.00 (balance sheet), which is the denominator. By dividing, the equation gives us a current ratio of 2.09%. Thus, the current ratio calculation shows ABCs short-term assets, able to pay off its short term liabilities. This is can be prove with the higher current ratio as stated below.

15

5.3 Profitability Indicator Ratio The objective of margin analysis is to detect consistency or positive/negative trends in a ABC earnings. Positive profit margin analysis translates into positive investment quality. As such, the amount of profit generate by ABCS as a percentage of the sales generated.

Formulas:

Components:

Gross Profit Margin = RM100,000/RM350,000 = 0.286 =28.6% Net Profit Margin = RM5,850/RM100,000 = 0.059 =5.9%

16

All the dollar amounts in these ratios are found in the income statement. As of December 31, 2012, with amounts expressed in thousands, ABC Sdn. Bhd. had net sales, or revenue, of RM350,000, which is the denominator in all of the profit margin ratios. The numerators for ABC Sdn. Bhd. ratios are captioned as "gross profit", "operating profit", "earnings before income taxes, minority interest and cumulative effect of change in accounting principle", and "net earnings", respectively give the percentage profit margins. Positive profit margin analysis shows the company consistent trend of earnings. This margin indicates a promising, it is the quality, and growth, of a company's earnings that drive our stock price of ABC Sdn. Bhd.

17

6.0 CONCLUSION Summarizing the 3 ratios ensure the investor we are strong team to expand into new market and is in well financial position. With the current ratio of 2:1, it is consider a ideal ratio in the industry, it indicates ABCs assets are able to cover its liabilities. Whereas, the gross profit margin and the net profit margin with a positive percentage of 28.6% and 5.9% respectively is still consider a good profit for a newly formed organization like ABC Sdn. Bhd. ABC Sdn Bhd. has done the a market analysis and its objective is measurable and reliable, thus we are confident on our endeavors to reap more market share in the coming years. In addition, ABCs forecasted cash flow has a negative cash flow for the first half of 2012, but it can be recover in the second half of 2012. In fact, ABCs will build a strong positive cash flow of $468,000 in the end of 2012. Therefore, ABCs is a potential organization for growth with a robust plan of investment 2012. We will ensure our shareholders wealth to grow as ABC Sdn. Bhd. grows.

18

7.0 REFERENCES

BE2011_KesihatanBI.pdf http://www.statistics.gov.my/portal/images/stories/files/LatestReleases/BE/BI/BE2011_K esihatanBI.pdf

Malaysian Aerospace Industry Outlook http://www.bciaerospace.com/malaysia/images/stories/2011%20might%20presentation.p df

Financial Ratio Analysis http://educ.jmu.edu/~drakepp/principles/module2/fin_rat.pdf Company & Industry Financial Ratios Analysis http://www.ventureline.com/ Cash Budget http://www.cliffsnotes.com/study_guide/Cash-Budget.topicArticleId-21248,articleId21236.html How to Prepare A Cash Budget https://www.zionsbank.com/pdfs/biz_resources_book-5.pdf Investopedia http://www.investopedia.com/terms/r/ratioanalysis.asp Accounting for Management http://www.accounting4management.com/accounting_ratios.htm CPAClass.com http://cpaclass.com/fsa/ratio-01a.htm About.com http://bizfinance.about.com/od/yourfinancialposition/a/incomestatement.htm

19