FAR360

SALE BUDGET AN-NUR
Budgeted Sale (unit)

Selling Price
SALE VALUE (RM)
Q1
8,000
50
400,000
Q2
16,500
50
825,000
Q3
16,000
50
800,000
Q4
7,500
50
375,000
Q2
16,500
65
1,072,50
Q3
14,000
65
Q4
5,500
65
910,000
357,500
TOTAL
48,000
2,400,000
SALE BUDGET D' QASEH

Selling Price
Q1
6,000
65
SALE VALUE (RM)
390,000
TOTAL
42,000
2,730,0
00
BUDGETED PRODUCTION AN-NUR

(+) Closing Inventory
(-) opening Inventory
PRODUCTION
UNIT
Q1
8,000
4,000
Q2
16,500
6,000
(4,000)
Q3
16,000
9,000
(6,000)
Q4
7,500
6,750
(9,000)
TOTAL
48,000
12,000
18,500
19,000
5,250
54,750
Q3
14,000
6,750
Q4
5,500
5,063
TOTAL
42,000
BUDGETED PRODUCTION D'QASEH

Q1
6,000
3,000
Q2
16,500
4,500

PRODUCTION
UNIT
9,000
(3,000)
(4,500)
(6,750)
18,000
16,250
3,183
47,063
DIRECT MATERIAL USAGE AND PURCHASE BUDGET AN-NUR
Budgeted Production
Lycra (meter)
TOTAL USAGE
Total Purchase (meter)
Purchase Price/ Meter (RM)
PURCHASE VALUE (RM)
Q1
12,000
1
12,000
850
12,850
20
257,000
Q2
18,500
1
18,500
1,450
(850)
19,100
20
382,000
Q3
19,000
1
19,000
2,200
(1,450)
19,750
20
395,000
Q4
5,250
1
5,250
2,100
(2,200)
5,150
20
103,000
TOTAL
54,750
56,850
1,137,000
DIRECT MATERIAL USAGE AND PURCHASE BUDGET D'QASEH
Budgeted Production
Chiffon (meter)
TOTAL USAGE
Total Purchase (meter)
Purchase Price/ Meter (RM)
PURCHASE VALUE (RM)
Q1
9,000
2.5
22,500
2,000
24,500
10
245,000
Q2
18,000
2.5
45,000
2,500
(2,000)
45,500
10
455,000
Q3
16,250
2.5
40,625
2,800
(2,500)
40,925
10
409,250
Q4
3,813
2.5
9,532.5
1,500
(2,800)
8,232.5
10
82,325
TOTAL
119,248.5
1,191,575
2
DIRECT LABOUR COST CUTTING DEPARTMENT AN-NUR (LYCRA)
Budgeted Production
Hour Needed Per Unit
TOTAL HOUR NEEDED
Rate Per Hour
LABOUR COST
Q1
12,000
0.3
3,600
15
54,000
Q2
18,500
0.3
5,550
15
83,250
Q3
19,000
0.3
5,700
15
85,500
Q4
5,250
0.3
1,575
15
23,625
TOTAL
Q3
19,000
0.25
4,750
10
47,500
Q4
5,250
0.25
1,312.5
10
13,125
TOTAL
16,425
246,375
DIRECT LABOUR COST SEWING DEPARTMENT AN-NUR
Budgeted Production
TOTAL HOUR NEEDED
Rate Per Hour
LABOUR COST
Q1
12,000
0.25
3,000
10
30,000
Q2
18,500
0.25
4,625
10
46,250
13,687.5
136,875
DIRECT LABOUR COST CUTTING DEPARTMENT D'QASEH (CHIFFON)
Budgeted Production
Q1
9,000
0.5
Q2
18,000
0.5
Q3
16,250
0.5
Q4
3,183
0.5
TOTAL
23,53
TOTAL HOUR NEEDED

Rate Per Hour
4,500
15
9,000
15
8,125
15
1,906.5
15
1.5
352,97
LABOUR COST
67,500
135,000
121,875
28,597.5
2.5
Q4
3,183
0.75
TOTAL
DIRECT LABOUR COST SEWING DEPARTMENT D'QASEH
Budgeted Production
Q1
9,000
0.75
Q2
18,000
0.75
Q3
16,250
0.75
35,297.
TOTAL HOUR NEEDED
Rate Per Hour
6,750
10
13,500
10
12,187.5
10
2,859.75
10
25
LABOUR COST
67,500
135,000
121,875
28,597.5
352,972.5
MANUFACTURING OVERHEAD BUDGET
Indirect Material
Utilities
Electricity
Purchasing and Handling
Material
Quality Control
Supervisor Salaries
Insurance:
Sewing Machine
Cutting Machine
Building
Maintenance
Interest On Loan
Depreciation:
Sewing Machine
Cutting Machine
Building
TOTAL
BUDGET
ACTUAL
(RM)
12,150
4,800
21,600
(RM)
13,250
5,700
21,750
1,200
1,200
14,400
18,000
14,400
18,000
800
440
3,750
72,000
8,550
800
440
3,750
72,000
8,550
8,000
3,000
11,250
179,940
8,960
3,000
11,250
183,050
CASH BUDGET
RM
Opening Cash Balance
(+) Receipt
Cash Sales - An Nur
D' Qaseh
Credit Sales - An Nur
D' Qaseh
RM
487,350
1,920,000
2,184,000
436,800
495,700
5,036,500
5,523,850
(-) Payment
Direct Material
Cash Purchase:
lycra
Chiffon
Thai Silk
Corduroy
Credit Purchase:
lycra
Chiffon
568,500
595,788
219,000
282,378
529,800
569,625
(2,765,091)
Direct Labour
Cutting -An Nur
D' Qaseh
Sewing - An Nur
D' Qaseh
246,375
352,972.5
136,875
352,972.5
(1,089,195)
Manufacturing Overhead
Indirect Material
Utilities
Electricity
Purchasing and Handling
12,150
4,800
21,600
1,200
5
Material
Quality Control
Supervisor Salaries
Insurance:
Sewing Machine
Cutting Machine
Building
Maintenance
Interest On Loan
Purchasing of New Machine
14,400
18,000
800
440
3,750
72,000
8,550
9,600
(167,290)
Selling and Distribution

Overhead
Selling and Advertising
Carriage Outward
Travelling
Deposit Of Van
Van- Hire Purchase
20,400
4,800
12,000
10,000
3,869
(51,069)
Administration Overhead
Utilities
Electricity
Insurance Building
Maintenance
Interest On Loan
Administration Wages
Directors Remuneration
Staff Salaries
Entertainment for Staff
Donation to Approved
1,600
7,200
1,250
24,000
2,850
96,000
288,000
96,000
12,000
Institutions
Hire Purchase Interest
Miscallenous
Zakat
Tax
Audit Fee
20,000
1,083
18,000
50,000
120,000
6,000
Closing Balance
(743,983)
707,222
PRODUCTION COST BUDGET

D'QASE
AN NUR
RM
DIRECT MATERIAL:
Thai Silk
Corduroy
Lycra
Chiffon
DIRECT LABOUR:
Cutting
Sewing
PRIME COST
PRODUCTION OVERHEAD
H
RM
4
6
20
25
4.50
2.50
7.50
7.50
31
46
1.77
1.77
32.77
47.77
TOTAL PRODUCTION PER

UNIT
OAR = TOTAL OVERHEAD

MACHINE HOUR (PRODUCTION UNIT)
= RM 179,940
(54,750 + 47,063)
= RM 179,940
101813
= RM 1.77
PRODUCTION COST ACTUAL

D'QASE
AN NUR
RM
DIRECT MATERIAL:
Thai Silk
Corduroy
Lycra
Chiffon
DIRECT LABOUR:
Cutting
Sewing
PRIME COST
PRODUCTION OVERHEAD
H
RM
4
6
20
25
4.50
2.50
7.50
7.50
31
46
1.80
1.80
32.80
47.80
TOTAL PRODUCTION PER

UNIT
OAR = TOTAL OVERHEAD

MACHINE HOUR (PRODUCTION UNIT)
= RM 183,050
(54,750 + 47,063)
= RM 183,050
8
101813
= RM 1.80
BREAK EVEN POINT
VARIABLE
COST
FIXED COST
RM
RM
Factory overhead
Indirect material
Utilities
Electricity
Purchasing and material handling
Quality control
Supervisor salaries
insurance :
Sewing machine
Cutting machine
Building
Maintenance
Selling and distribution overhead
Selling and advertising
Carriage outwards
Traveling (business)
Administrative overhead:
Administrative wages
Directors remuneration
staff Salaries
Entertainment for staffs
Donation to approved institution
Interest on loan
Hire purchase interest
Miscellaneous
Zakat
Tax
Audit fee
12150
4800
21600
1200
1600
7200
14400
18000
800
440
5000
96000
20400
4800
12000
96000
288000
96000
12000
20000
11400
1083
18000
50000
120000
6000
9
Depreciation:
Building
Office Equipment
furniture and furniture
Machine
15000
11000
405
1800
TOTAL
246950
720128
contribution
weighted average
contribution margin
Sales per unit
Variable Cost
margin
RM
RM
RM
Sales mixed
per unit (RM)
An Nur
50
33.43
16.57
53.78%
8.91
D Qaseh
65
48.43
16.57
46.22%
7.66
Total
16.57
Variable cost =
246950
101813
= RM2.43
An Nur ( 2.43 +31)
= RM 33.43
D Qaseh (2.43 + 46)
= RM 48.43
Sales Mixed
10
=5475
An Nur
= 53.78%
101813
D Qaseh
= 47063 = 46.22%
101813
Bep
720128
16.57
= 43,459.75
In unit
An Nur (43459.75 x 53.78% )
D Qaseh (43459.75 x 46.22% )
=23,371 Units
=20,087 Units
In price
An Nur (23371 x RM 50)
D Qaseh (20084 x RM 65)
= RM 1,168,550
= RM 1,305,655
AFTER INCREASE 10% SELLING PRICE

Weighted average
An Nur
D Qaseh
contribution
contribution
margin per unit
Sales per unit
Variable Cost
margin
RM
RM
RM
Sales mixed
(RM)
55
33.43
21.57
53.78%
11.60
71.5
48.43
23.07
46.22%
10.67
Total
22.27
Bep
11
720128
22.27
= 32339.36
In unit
An Nur (32339.36 x 53.78% )
D Qaseh (32339.36 x 46.22% )
= 17,392 units
= 14,947 units
In price
An Nur (17392 x RM 55)
D Qaseh ( 14947 x RM 71.5)
= RM 956,560
= RM 1068,711
MARGIN ON SAFETY
Concept of margin on safety: indicates how much sales could drop from the current level before
business suffers lost.
An Nur
= 48,000 units 23,371 Units

= 24,629 units
= 24,629 unit x RM 50
= RM 1,231,450
D Qaseh
= 42,000 units 20,087 Units

= 21,913 units
= 21,913 units x RM65
= RM 1,424,345
12
NUR QASEH SDN BHD

MANUFACTURING ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2013
RM
Raw Material
(+) Opening Stock
Purchase - An Nur Lycra
Thai Silk
D'Qaseh Chiffon
Corduroy
(-) Closing Stock
Cost of Material Consumed
Direct Labour - Cutting -An Nur
D'Qaseh
Sewing - An Nur
D' Qaseh
PRIME COST
(+) Factory Overhead
Indirect Material
Utilities
Electricity
Purchasing and Material Handling
Quality Control
Supervisor Salaries
RM
1,137,000
219,000
1,191,575
282,378
RM
2,829,953
(57,000)
2,772,953
246,375
352,972.5
136,875
352,972.5
1,089,195
3,862,148
13,250
5,700
21,750
1,200
14,400
18,000
13
Insurance:
Sewing Machine
Cutting Machine
Building
Maintenance
Depreciation Building
Machinery
Interest On Loan
PRODUCTION COST OF GOOD
COMPLETE
800
440
3,750
72,000
11,250
11,960
8,550
183,050
4,045,198
14
NUR QASEH SDN BHD

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST DECEMBER
2013
RM
RM
Sales
(-) Cost of Goods Sold
(+) Opening
Purchase
RM
5,643,000
4,045,198
(3,939,987
(-) Closing
(105,211)
Gross Profit
(-) Expenses
Utilities
Electricity
Insurance: Building
Maintenance
Interest On Loan
Staff Salaries
Donation to Approved Institutions
Miscellaneous
Zakat
Selling And Advertising
Carriage Outward
Traveling Expenses
Depreciation - Building
Van
Office Equipment
Fixtures & Fitting
Audit Fee
NET PROFIT BEFORE TAX
Tax expenses
NET PROFIT
)
1,703,013
1,900
7,250
1,250
24,000
2,850
24,000
288,000
216,000
12,000
20,000
1,083
19,400
50,000
20,400
7,000
14,000
3,750
15,000
405
1,800
6,000
(736,088)
966,925
(120,000)
846,925
15
NUR QASEH SDN BHD

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31ST DECEMBER
2013
NON CURRENT ASSET

Land
Building
Machineries
Office Equipment
Fixtures & Fitting
Van
RM
RM
RM
300,000
119,600
5,000
18,000
75,000
45,000
22,960
1,355
5,400
15,000
100,000
255,000
96,640
3,645
12,600
60,000
527,885
CURRENT ASSET
16
Inventories :
Raw Material
Finished Good
Account Receivable
Bank
57,000
105,211
161,150
1,081,472
1,404,833
TOTAL ASSETS
1,932,718
EQUITY AND LIABILITIES

Share Capital
Retain Earning
300,000
1,204,925
NON CURRENT LIABILITIES

Loan - Bank Islam
AmBank
CURRENT LIABILITIES
Account Payable
Accrued Audit Fee
Tax payable
258,000
61,131
319,131
92,662
6,000
10,000
108,662
TOTAL EQUITY AND

LIABILITIES
1,932,718
17
BANK ACCOUNT
Balance b/d
Account Receivable
RM
487,350
5,534,850
Indirect material
Utilities
Electricity
Insurance: Building
cutting machine
sewing machine
Maintenance
Interest On Loan
Staff Salaries
Donation to Approved
Institutions
Miscellaneous
Zakat
Carriage Outward
Traveling Expenses
Purchasing and Material
Handling
Quality Control
Supervisor Salary
Labour
New Machine
Deposit Of Van
RM
13,250
7,600
29,000
5,000
440
800
96,000
11,400
24,000
288,000
216,000
12,000
20,000
1,083
19,400
50,000
20,400
7,000
14,000
1,200
14,400
18,000
1,089,195
9,600
10,000
18
Loan - AmBank
Bank Islam
Audit Fee
Account Payable
Tax expenses
Balance c/d
3,869
12,000
5,000
2,765,091
177,000
1,081,472
6,022,200
6,022,200
NUR QASEH SDN BHD

STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST DECEMBER 2013
RM
RM
19
Cash Flow From Operating Activities

Cash Receipt From Customer
Cash Paid To Supplier
Cash Paid To Employees
Director Remuneration
Staff Salaries
Entertainment For Staff
Administrative Wages
Labour
Other expenses :
Indirect material
Purchasing and Material Handling
Supervisor Salary
Carriage Outward
Traveling Expenses
CASH GENERATED FROM
5,534,850
(2,765,091)
OPERATION
Interest Paid
Building
Van
Utilities
Electricity
Quality Control
Insurance: Building
cutting machine
sewing machine
Maintenance
Miscellaneous
Zakat
Audit Fee
Tax expenses
NET CASH FLOW FROM
1,066,714
(288,000)
(216,000)
(12,000)
(24,000)
(1,089,195)
(13,250)
(1,200)
(18,000)
(20,400)
(7,000)
(14,000)
(11,400)
(1,083)
(7,600)
(29,000)
(14,400)
(5,000)
(440)
(800)
(96,000)
(20,000)
(19,400)
(50,000)
(5,000)
(177,000)
OPERATING ACTIVITIES
Cash Flow From Investing Activities
Purchase of PPE - Machine
Van
NET CASH FLOW FROM
INVESTING ACTIVITIES
629,591
(9,600)
(10,000)
(19,600)
20
Cash Flow From Financing Activities

Repayment Of Borrowing - Bank Islam
AmBank
NET CASH FLOW FROM
(12,000)
(3,869)
FINANCING ACTIVITIES
(15,869)
NET INCREASE IN CASH AND CASH

EQUIVALENT
CASH AND CASH EQUIVALENT AT
594,122
BEGINNING
CASH AND CASH EQUIVALENT AT
487,350
THE END
1,081,472
CURRENT RATIO
= Current Assets
Current Liabilities
= 1,404,833
= 12.93 TIMES
108,662
QUICK RATIO
= Current Assets Inventory-Prepayment
Current Liabilities
=1,404,833 - 105,211 = 1,299,622

108,662
= 11.96 TIMES
108,662
INVENTORY TURNOVER RATIO

= Cost of Goods sold
Average/ Closing Inventory
21
=3,939,987
= 37.45 TIMES
105,211
FIXED ASSET TURNOVER
= Sales
Fixed Assets
= 5,643,000
= 10.69 TIMES
527,885
TOTAL ASSET TURNOVER
= Sales
Total Assets
=5,643,000
= 2.92 TIMES
1,932,718
DEBT RATIO
= Total Liabilities
Total Assets
= 319,131 + 108,662
= 427,793 x 100
1,932,718
1,932,718
= 22.13%
INTEREST COVERAGE
= Earnings before Interest &Tax
Interest Expenses
= 846,925 + 11,400 + 1,083 + 120,000
11,400 + 1,083
= 979,408
= 78.46%
12,483
GROSS PROFIT MARGIN

22
= Gross Profit
Sales
= 1,703,013 x 100
= 30.18 %
5,643,000
NET PROFIT MARGIN
= Net Profit
Sales
= 966,925
= 17.13 %
5,643,000
RETURN ON EQUITY
= Net Income Available to Stockholders
Common Equity
=
846,925
= 846,925 x 100
1,204,925+ 300,000
1,504,925
= 56.28 %
RETURN ON ASSETS
= Net Income Available to Stockholders
Total Assets
= 846,925 x 100
= 43.82%
1,932,718
23
LIQUIDITY POSITION
From the above calculation, we can see that Nur Qaseh Sdn Bhds current ratio is higher than
industry average. Its mean that liquidity position is higher than average. So, the company able to
manage it short term liability. It shows that their quick ratio is higher than industry average and
the firm has enough current assets to cover its current liabilities without selling inventory. Its
liquidity indicates that the firm have effectively in their cash management.
PROFITABILITY
As compared, gross profit margin and net profit margin are lower than industry average. This
indicate the company is less efficient in controlling its cost of goods sold and controlling
operating expenses as compare to industry average. Higher cost of goods sold may be due to
expensive sources in supply of goods, higher labour cost and high production wastages. The
company should reduce cost of goods sold by changing supplier and reduce labour cost and
production wastages.
However, the firm recorded the higher return on equity compared with industry average
indicating a better return to the common stockholders from their investment in the firm.
Generally high growth firm will have higher return on equity. Their return on asset is lower than
industry average. Hence its indicates the managements ability to make profits from the firms
investments in assets.
24
LEVERAGE POSITION
The above of debt ratio calculation shows that Nur Qaseh Sdn Bhd has higher borrowing than
other companies in the industry. Creditor and financial institutions will prefer a company with a
lower debt ratio as it will reduce the potential losses that may occur in the event of liquidation.
Nur Qaseh Sdn Bhds debt ratio is higher than industry average, it would experience difficulty in
raising additional borrowings. Lenders will be reluctant to grant more loans, as the risk that the
company may not be able to pay them back on time is higher.
Their interest coverage shows the firms ability to cover its interest charge out of its operating
profits. The higher the ratio, the higher is the firms ability to fulfil interest obligation. Failure to
meet this obligation might expose the firm to the risk of bankruptcy, as the creditors can take
legal action against the firm. The company may be borrowing more than necessary. The firm
should have an optimum mixture of sources of financing. This will result in the lowest cost of
capital and hence maximize firm value. The company can also improve its leverage by financing
capital investment from an issue of shares or retained profit. Lastly, the firm should not take
additional debt financing if it is already too highly leveraged.
25
ENGAGEMENT LETTER
Eusoff & Co.,
82-08, Jalan 12/2,
Bandar Indera Mahkota,
Kuantan Pahang Darul Makmur.
March 1, 2014
Nur Qaseh Sdn Bhd,
Lot No 381, Bandar Chukai Utama,
24000, Chukai Kemaman
Terengganu Darul Iman.
Dear Puan Merani Ahmad,

Scope
26
You have requested that we audit the balance sheet of Nur Qaseh Sdn Bhd as of December 31,
2013, and the related statements of income and cash flows for the year then ended. We are
pleased to confirm our acceptance and our understanding of this engagement by means of this
letter. Our audit will be made with the objective of our expressing an opinion on the financial
statements.
Responsibility of auditor
We will conduct our audit in accordance with International Standards on Auditing. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatements.
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation.
Because of the test nature and other inherent limitations of an audit, together with the
inherent limitations of any accounting and internal control system, there is an unavoidable risk
that even some material misstatements may remain undiscovered even though the audit is
properly planned and performed in accordance with the auditing standard.
In making our risk assessment, we consider internal control relevant to the entitys
preparation of the financial statements in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on effectiveness of entitys
internal control. In addition to our report on the financial statements, we expect to provide you
with a separate letter concerning any material weaknesses in accounting and internal control
systems which come to our notice.
We remind you that the responsibility for the preparation of financial statements
including adequate disclosure is that of management of the company. This includes the
maintenance of adequate accounting records and internal controls, the selection and application
of accounting policies, and the safeguarding of the assets of the company.
Responsibility of management
27
Our audit will be conducted on basis that you acknowledge and understand that you have
responsibility:
a) For the preparation and fair presentation of these financial statement in accordance with
accounting standard of the Malaysia Financial Reporting Standard (MFRS)
b) For the design, implementation and maintenance of internal control relevant to the
preparation of fair presentation of financial statement that are free from material
misstatement, whether due to fraud or error
c) To provide us with:
1) Access to all information of which you are aware that is relevant to the preparation of
financial statements such as record, documentation and other matters.
2) Additional information that we may request from you for the purpose of the audit.
3) Unrestricted access to persons within the entity from whom we determine it necessary
to obtain audit evidence
As part of our audit process, we will request from you written confirmation concerning
representation made to us in connection with the audit.
Fees
We look forward to full cooperation with your staff and we trust that they will make available to
us whatever records, documentation and other information we request in connection with our
audit. Our fees, which will be billed as work progress, are based on the time required by the
individuals assigned to the engagement, plus out-of-pocket expenses. Individual hourly rates
vary according to the degree of responsibility involved and the experience and skill required.
Reporting
We will issues a written report upon completion of our audit of Nur Qaseh Sdn Bhds financial
statements. Our report will be addressed to the board of director of Nur Qaseh Sdn Bhd. We
cannot provide assurance that unqualified opinion will be expressed. Circumstances may arise in
which it is necessary for us to modify our opinion, add an emphasis of matter or other matter
paragraph, or withdraw from engagement.
Please sign and return the attached copy of this letter to indicate that it is in accordance
with your understanding of the arrangements for our audit of the financial statements.
28
Acknowledged on behalf of Nur Qaseh Sdn Bhds by
Ahmad Iqbal
Ahmad Iqbal
Auditor of Eusoff & Co
March 1, 2014
THE WEAKNESSES, POTENTIAL IRREGULARITIES AND IMPROVEMENTS OF
THE SYSTEM IN INTERNAL CONTROL.
Purchasing department
WEAKNESSES
POTENTIAL
IMPROVEMENTS
IRREGULARITIES
The buyer may use his power
The purchase order issued by
searching the various
for his own interest and
the buyer should be approved
suppliers catalogues
advantages.
and authorised by the higher
There will be unnecessary
officer.
There should be a higher
items order
officer to authorize the
1. The buyer solely
on file.
2. No proper
authorization for
acquisition
acquisition.
Receiving department
WEAKNESSES
POTENTIAL
IMPROVEMENTS
IRREGULARITIES
The amount received would
The receiving clerk should
compare the quantity
not be same as the amount
count the goods receive and
stated in both
recorded.
compare purchase order and
1. The receiving clerk
purchase order and
quantity received from
quantity received
supplier and check on goods
from supplier but he
received before forwards to
does not count the
requisitioning department.
29
goods received.
2. No recheck on
He will create error when
The company should appoint
receiving clerks
record the raw material
another supervisor to recheck
work.
received.
the receiving clerks work.
There would be
Notification of goods
orally notifies the
miscommunication about the
received should also be made
purchasing
detail of the information.
in written so that a record is
3. The receiving clerk
department.
kept by purchasing
department.
30
LETTER OF REPRESENTATION
Nur Qaseh Sdn Bhd,
Lot No 381, Bandar Chukai Utama,
24000, Chukai Kemaman
Terengganu Darul Iman.
March 14, 2014

Eusoff & Co.,
82-08, Jalan 12/2,
Bandar Indera Mahkota,
Kuantan Pahang Darul Makmur.
To Eusoff & Co,
This representation letter is provided in connection with your audits of Nur Qaseh Sdn Bhd for
the year ended December 31, 2014, for the purpose of expressing an opinion as to whether the
financial statements are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the Malaysia (GAAP).
We confirm that, [to the best of our knowledge and belief, having made such inquiries as we
considered necessary for the purpose of appropriately informing ourselves as of March 1, 2014]:
31
Financial statements
We have fulfilled our responsibilities, as set out in the terms of the audit engagement
dated March 1, 2014, for the preparation of the financial statements in accordance with
GAAP; in particular, the financial statements are fairly presented in accordance therein.
Significant assumptions used by us in making accounting estimates, including those
measured at fair value, are reasonable.

Related-party relationships and transactions have been appropriately accounted for and
disclosed in accordance with the requirements of GAAP

All events subsequent to the date of the financial statements and for which GAAP
requires adjustments or disclosure have been adjusted or disclosed.

The effects of uncorrected misstatements are immaterial, both individually and in the
aggregate, to the financial statements as a whole. A list of the uncorrected misstatements
is attached to the representation letter.
Information provided
We have provided you with:

- Access to all information of which we are aware that is relevant to the preparation and
fair presentation of the financial statements such as records, documentation, and other
-
matters;
Minutes of the meetings of stockholders, directors, and committees of directors, or
summaries of actions of recent meetings for which minutes have not yet been
prepared;
Additional information that you have been requested from us for the purpose of the
audit; and
Unrestricted access to person within the entity from whom you determined it
necessary to obtain audit evidence.

All transaction has been recorded in the accounting records and is reflected in the
financial statements.
We have disclosed to you the results of our assessment of the risk that the financial
statements could be materially misstated as a result of fraud.

We have disclosed to you all information in relation to fraud or suspected fraud that we
are aware of and that affects the entity and involves:
- Management ;
- Employees who have significant roles in internal control; or
- Other where the fraud could have a material effects on the financial statements.
32
We have disclosed to you all information in relation to allegations of fraud, or suspected

fraud, affecting the entitys financial statements communicated by employees, former
employees, analysts, regulators, or other.

We have disclosed to you all known instances of noncompliance or suspected
noncompliance with laws and regulations whose effects should be considered when
preparing financial statements.

There have been no communications from regulatory agencies concerning
noncompliance with or deficiencies in financial reporting practices.
Khalida Nawi
Chief Executive Officer
Merani Ahmad
Chief Financial Officer
NUR QASEH SDN BHD

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST DECEMBER
2013
RM
Sales
RM
RM
5,643,000
(-) Cost of Goods Sold

(+) Opening
33
Purchase
4,045,198
(3,939,987
(-) Closing
(105,211)
Gross Profit
(-) Expenses
Utilities
Electricity
Insurance: Building
Maintenance
Interest On Loan
Staff Salaries
Miscellaneous
Zakat
Carriage Outward
Traveling Expenses
Depreciation - Building
Van
Office Equipment
Fixtures & Fitting
Audit Fee
Bad Debt
Increase in PFDD
Tax expenses
NET PROFIT AFTER TAX
)
1,703,013
1,900
7,250
1,250
24,000
2,850
24,000
288,000
216,000
12,000
20,000
1,083
19,400
50,000
20,400
7,000
14,000
3,750
15,000
405
1,800
6,000
550
8030
(744,668)
958,345
(203,393)
754,952
34
NUR QASEH SDN BHD

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31ST DECEMBER
2013
RM
NON CURRENT ASSET
Land
Building
Machineries
Office Equipment
Fixtures & Fitting
Van
300,000
119,600
5,000
18,000
75,000
CURRENT ASSET
Inventories :
Raw Material
Finished Good
Account Receivable
Bank
57,000
105,211
152,570
1,084,122
RM
RM
45,000
22,960
1,355
5,400
15,000
100,000
255,000
96,640
3,645
12,600
60,000
527,885
1,398,903
TOTAL ASSETS
1,926,788
EQUITY AND LIABILITIES

Share Capital
Retain Earning
300,000
1,109,952
35
NON CURRENT LIABILITIES

Loan - Bank Islam
AmBank
CURRENT LIABILITIES
Account Payable
Accrued Audit Fee
Tax payable
Accrued Electricity
Accrued Salaries
Dividend Payable
258,000
61,131
319,131
92,662
6,000
93,393
450
2,200
3,000
197,705
TOTAL EQUITY AND

LIABILITIES
1,926,788
36
CAPITAL ALLOWANCE AND INDUSTRIAL BUILDING ALLOWANCE
BUILDING
RM 300,000 ( - operation, administrative departments)
x RM 300,000 = RM 75,000
QPE = RM75,000
= 25 %
RM 300,000
Since the administrative department is more than 10 % only 75 % is qualified as industrial
building.
Year assessment 2011
RM
QBE
225,000
(-) Initial allowance (10%)
(22,500)
(-) annual allowance (3%)
(6,750)
195, 750

(6,750)
189,000

(6,750)
Residual Expenditure
182,250
37
MACHINE
Old machine (Cutting)
QPE = (RM 6,000 x 5 Units)
= RM 30,000

RM
QPE
30,000
(6,000)
(4,200)
19,800

(4,200)
15,600
Old machine (Sewing)

QPE = (RM 4,000 x 20 Units)
= RM 80,000

RM
QPE
80,000
(16,000)
(11,200)
52,800

(11,200)
41,600
38
New machine (Sewing)

QPE = RM 4,800 x 2 units
= RM 9,600
RM
QPE
9,600
(1,920)
(1,344)
6,336
VAN
QPE = 10,000 + 3,869
= 13,869

RM
QBE
13, 869
(2,774)
(2,774)
8,321
39
OFFICE EQUIPMENT
QPE = RM 5,000
RM
QBE
5000
(1000)
(500)
3,500

(500)
3000

(500)
2,500
FIXTURE AND FITTING

QPE = RM 18,000
RM
QBE
18,000
(3,600)
(1,800)
12,600

(1,800)
10,800
40

(1,800)
9,000
ACTUAL TAX PAYABLE

NUR QASEH SDN BHD
COMPUTATION OF TAX PAYABLE FOR YEAR ASSESMENT 2013

Salary paid to the disable person
(RM 10,000 x 12)
Depreciation :
Machine
Building
Van
Office Equipment
Furniture & Fitting
Increase in PFDD
Zakat
Donation to approve institution
Entertainment allowance to officer
(50% x RM 6,000)
(+)
RM
958,345
(-)
RM
12,000
11,960
15,000
15,000
405
1,800
8,030
50,000
20,000
3000
1,083,540
12,000
ADJUSTED INCOME
1,071,540
(+) Balancing Charge

(-) Capital Allowance
(115,862)
STATUTORY INCOME
955,678
(+) Non Business Income

AGGREGATE INCOME
955,678
(-) Approved Donation

41
Manuscript to Terengganu State Government

Television
Cash Donation
(10% x AI ) = 96,426 or 15,000
Zakat
(2.5% x AI ) = 24,106 or 50,000
(3,000)
NA
(15,000)
(24,106)
CHARGEABLE INCOME
913,572
First 500,000 (20% x RM 500,000)

Next 413,572 (25% x RM 413,572 )
TAX PAYABLE
100,000
103,393
203,393
42
SALES BUDGET
Closing Inventory
AN-NUR
Q2 - 4000 X 150% = 6000 (increase by 50 %)
Q3 - 6000 X 150% = 9000 (increase by 50 %)
Q4 - 9000 X 75% = 6750 (reduced by 25%)
DQASEH
Q2 - 3000 X 150% = 4500 (increase by 50 %)
Q3 - 4500 X 150% = 6750 (increase by 50 %)
Q4 - 6750 X 75% = 5063 (reduced by 25%)
MANUFACTURING OVERHEAD BUDGET
-Sewing
BUDGET (RM)
X 6,400 = 4,800
X 28,800 = 21,600
X 5,000 = 3,750
X 96,000 = 72,000
X 11,400 = 8,550
300,000 x 5% = 15,000
X 15,000 = 11,250
20 units x 4,000 x 10% =
- Cutting
8,000
5 units x 6,000 x 10% =3,000
Utilities
Electricity
Insurance: Building
Maintenance
Interest On Loan
Depreciation: -Building
Machine
ACTUAL (RM)
X 7,600 = 5,700
X 29,000 = 21,750
X 5,000 = 3,750
X 96,000 = 72,000
X 11,400 = 8,550
300,000 x 5% = 15,000
X 15,000 = 11,250
[(20 units x 4,000) + (4,800 x 2
units)] x 10 % = 8,960
5 units x 6,000 x 10% =3,000
Machine
43
CASH BUDGET
(+) Receipt
Cash Sales - An Nur
D' Qaseh
Credit Sales - An Nur
D'Qaseh
Q1
Q2
Q3
Q4
RM
80 % x
400,000 =
320,000
80 % x
390,000 =
312,000
60 % x
265,000
= 159,000
20 % x
159,000
= 31,800
40 % x
265,000
= 106,000
20 % x106,000
= 21,200
RM
80 % x
825,000 =
660,000
80% x
1,072,500 =
858,000
20 % x
400,000
= 80,000
RM
80 % x
800,000 =
640,000
80 % x
910,000 =
728,000
20 % x
825,000
= 165,000
RM
80 % x
375,000 =
300,000
80 % x
357,500 =
286,000
20 % x
800,000
= 160,000
20 % x
390,000
= 78,000
20% x
1,072,500
= 214,500
20 % x
910,000
= 182,000
Total cash receipt

An Nur
Budgeted production
Thai silk ( pieces )
Total usage /
purchase
Purchase price (RM)
Purchase value
(RM)
D qaseh
Budgeted production
Corduroy ( pieces )
Total usage / purchase
Purchase price (RM)
TOTAL
(RM)
1,920,000
2,184,000
463,800
495,700
5,036,500
Q1
Q2
Q3
Q4
TOTAL
(RM)
1,200
1
1,200
18,500
1
18,500
19,000
1
19,000
5,250
1
5,250
48,000
74,000
76,000
21,000
219,000
Q1
Q2
Q3
Q4
TOTAL
(RM)
9,000
1
9,000
6
18,000
1
18,000
6
16,250
1
16,250
6
3,813
1
3,813
6
44
Purchase value
(RM)
54,000
108,000
97,500
22,878
282,378
Direct material
(- ) Payment
Thai Silk
Corduroy
Cash Purchases Lycra
Q1
Q2
Q3
Q4
TOTAL
48,000
54,000
50% x 257,000
= 128,500
50% x 245,000
=
122,500
74,000
108,000
50% x 382,000
= 191,000
50% x 455,000
=
227,500
76,000
97,500
50% x 395,000
= 197,500
50% x 409,250
=
20,4625
21,000
22,878
50% x 103,000
= 51,500
50% x 82,325
= 41,162.5
219,000
282,378
568,500
12,800
50% x 257,000
= 128,500
50% x 245,000
=
122,500
50% x 382,000
= 191,000
50% x 455,000
=
227,500
50% x 395,000
= 197,500
50% x 409,250
=
204,625
Chiffon
Credit Purchases Lycra
15,000
Chiffon
595,787.5
529,800
569,625
Hire Purchase Van

= RM 75,000 RM 10,000 = RM 65,000
RM 65000
( 7 years x 12 months )
X 5 months ( start 1/8/2013 31/12/2013 )
= RM 3,869
Installment Building
= RM 300,000 / 12 = RM 12,000
2010 = RM 12,000 X 6 / 12 = RM 6,000
2011
= RM 12,000
2012
= RM 12,000
RM 30,000
2013
= RM 12,000
RM 270,000 RM 12,000 = RM 258,000

45
( Loan Bank Islam in Balance sheet )
MANUFACTURING ACCOUNT
Closing Stock Raw Material
Lycra
Chiffon
: 2,100 units x RM20 = RM42,000

: 1,500 units x RM10 = RM 15,000
Overhead
TOTAL
RM7,600
RM 29,000
RM 5,000
RM 96,000
RM15,000
RM 11,400
Utilities
Electricity
Insurance building
Maintenance
Depreciation building
Interest on loan
ASSET
FACTORY
x 7,600 = 5700
x 29,000 = 21,750
x 5,000 = 3,750
x 96,000 = 72,000
x 15,000 = 11,250
x 11,400 = 8,550
DEPRECIATION
Building
RM 300,000 X 5% = RM 15,000
Van
Office equipment
Old Machine
RM 75,000 X 20% = RM15,000

(RM5000-RM950) X 10% =
RM405
RM110,000 X 10%= RM11,000
New machine
Fixture and fitting
RM9,600 X 10%= RM960

RM18,000 X 10% =RM1,800
ADMIN
x 7,600 = 1900
x 29,000 = 7,250
x 5,000 = 1,250
x 96,000 = 24, 000
x 15,000 = 3,750
x 11,400 = 2850
ACCUMULATED
DEPRECIATION
RM 30,000 + RM 15,000 = RM
45,000
RM 15,000
RM 950 + RM 405 = RM 1,355
RM 11,000 + RM 11,000 =RM
22,000
RM 960
RM 3,600 + RM1,800 = RM 5,400
STATEMENT OF PROFIT AND LOSS

Closing Finished Good (Sales Increase By 10%)
Annur
Sales
(+) closing stock
(-) opening
stock
Production unit
Q1
8,800
3,200
-
Q2
18,150
3,550
(3,200)
Q3
17,600
4,950
(3,550)
Q4
8,250
1,950
(4,950)
12,000
18,500
19,000
5,250
46
D Qaseh
Sales
(+) closing stock
(-) opening
stock
Production unit
Q1
6600
2400
-
Q2
18,150
2250
(2400)
Q3
15400
3100
(2250)
Q4
6050
863
(3100)
9000
18000
16250
3813
Closing Stock (Unit) X Production Cost Per Unit

An nur
D Qaseh
= 1,950 units x RM 32.80

= RM 63,960
=863 units x RM 47.80
=RM 41,251
= RM 105,211
Sales (Increase By 10%)

An nur
= 110% X (48,000 units X RM 50)
=RM 2,640,000
D Qaseh
=110% x (46,200 units x RM 65)
= RM 5,643,000
=RM 3,003,000
Tax Expenses
Estimated tax expenses
= RM 120,000 (installment from 10/2/2013 10/1/2014)
Per month
= RM120,000
12
= RM 10,000
Paid in 2013
= RM 10,000 x 11 months (10/2/2013 10/12/2013)

= RM 110,000
Accrued tax payable = RM 120,000 RM 110,000

= RM 10, 000 (Balance sheet)
STATEMENT OF FINANCIAL
Retained Earning
=RM 358,000 + RM 846,925
47
=RM 1,204,925
BANK ACCOUNT
Tax Expenses
= RM 67,000 + RM 110,000
Receipt (Cash)
Q4 2012 (Paid In the Year)
AN NUR
= RM 31,800
D QASEH
= RM 21,200
Q1 Q3 (Full Payment in the Year)

AN NUR
= (8,000 + 16,500 + 16,000) UNITS X 110% X RM 50

= RM 2,227,500
D QASEH
= (6,000 + 16,500 + 14,000) UNITS X 110% X RM 65

= RM 2,609,750
=RM 5,534,850
Q4 (Paid In the Year)

AN NUR
= (7,500 UNITS X 110% X RM 50) X 80%

= RM 330,000
D QASEH
= (5,500 UNITS X 110% X RM 65) X 80%

= RM 314,600
Receivable (Credit)
Q4 2013
AN NUR
= (7,500 UNITS X 110% X RM 50) X 20%

= RM 82,500
D QASEH
= (5,500 UNITS X 110% X RM 65) X 20%
= RM 161,150
48
= RM 78,650
Payment (Cash)
Q4 2012 (Paid In the Year)
Lycra
= RM 12,800
Chiffon
= RM 15,000
Full Payment in the Year

Thai Silk
= RM 219,000
Corduroy
= RM 282,378
Q1 Q3 2013
Lycra
= RM 257,000 + RM 382,000 + RM 395,000

= RM 1,034,000
Chiffon
= RM 2,765,091
= RM 245,000 + RM 455,000 + RM 409,250

= RM 1,109,250
Q4 2013
Lycra
= RM 103,000 X 50%
= RM 51,500
Chiffon
= RM 82,325 X 50%
= RM 41,163
Payable (Credit)
Q4 2013
Lycra
= RM 103,000 X 50%
= RM 51,500
Chiffon
= RM 82,325 X 50%
= RM 92,662
= RM 41,162
49
STATEMENT OF FINANCIAL POSITION (AUDITED)

PFDD
= (RM 160,600 RM 550) x 5%
= RM 8,030
Dividend
= 300,000 shares x RM 0.01
= RM 3,000
Account Receivable
= RM 161,150 RM 550 - RM 8,030
= RM 152,570
Bank
= RM 1,081,472 + RM 450 +RM 2,200
= RM 1,084,122
Retain Earning
=RM 358,000 + RM 754,952- RM 3000
= RM 1,109,952
CAPITAL ALLOWANCES AND INDUSTRIAL BUILDING ALLOWANCE
BUILDING
= RM 22,500 + RM 6,750 + RM 6,750 + RM 6,750

= RM 42,750
MACHINE
= RM 6,000+ RM 4,200 + RM 4,200 + RM 16,000

+ RM 11,200 + RM 11,200 + RM 1,920 + RM 1,344
= RM 56,064
VAN
= RM 2,774 + RM 2,774
=RM 115,864
= RM 5,548
OFFICE EQUIPMENT
= RM 1,000 + RM 500 + RM 500 + RM 500

= RM 2,500
50
FIXTURE AND FITTING
= RM 3,600 + RM 1,800 + RM 1,800 + RM 1,800

= RM 9,000
51

FAR360

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

FAR360

Enviado por

Direitos autorais:

Formatos disponíveis

SALE BUDGET AN-NUR

Budgeted Sale (unit)

SALE BUDGET D' QASEH

Budgeted Sale (unit)

SALE VALUE (RM)

BUDGETED PRODUCTION AN-NUR

Budgeted Sale (unit)

BUDGETED PRODUCTION D'QASEH

Budgeted Sale (unit)

(-) opening Inventory

DIRECT MATERIAL USAGE AND PURCHASE BUDGET AN-NUR

DIRECT MATERIAL USAGE AND PURCHASE BUDGET D'QASEH

DIRECT LABOUR COST CUTTING DEPARTMENT AN-NUR (LYCRA)

DIRECT LABOUR COST SEWING DEPARTMENT AN-NUR

DIRECT LABOUR COST CUTTING DEPARTMENT D'QASEH (CHIFFON)

TOTAL HOUR NEEDED

DIRECT LABOUR COST SEWING DEPARTMENT D'QASEH

MANUFACTURING OVERHEAD BUDGET

Selling and Distribution

PRODUCTION COST BUDGET

TOTAL PRODUCTION PER

OAR = TOTAL OVERHEAD

PRODUCTION COST ACTUAL

TOTAL PRODUCTION PER

OAR = TOTAL OVERHEAD

BREAK EVEN POINT

Sales per unit

per unit (RM)

An Nur ( 2.43 +31)

D Qaseh (2.43 + 46)

AFTER INCREASE 10% SELLING PRICE

Sales per unit

= 48,000 units 23,371 Units

= 42,000 units 20,087 Units

NUR QASEH SDN BHD

NUR QASEH SDN BHD

NUR QASEH SDN BHD

NON CURRENT ASSET

EQUITY AND LIABILITIES

NON CURRENT LIABILITIES

TOTAL EQUITY AND

NUR QASEH SDN BHD

Cash Flow From Operating Activities

Cash Flow From Financing Activities

NET INCREASE IN CASH AND CASH

=1,404,833 - 105,211 = 1,299,622

INVENTORY TURNOVER RATIO

GROSS PROFIT MARGIN

Dear Puan Merani Ahmad,

Acknowledged on behalf of Nur Qaseh Sdn Bhds by

The purchase order issued by

searching the various

for his own interest and

the buyer should be approved

and authorised by the higher

There will be unnecessary

officer to authorize the

1. The buyer solely

The receiving clerk should

compare the quantity

not be same as the amount

count the goods receive and

compare purchase order and

1. The receiving clerk