Analytical template used in Budgeting Seminar 2010

1. 2008 Income Statement Walkforward
(in 000's)
2007 Actual/ Price/ Exchange New Transfers Cost Lost 2008 Inc / (Dec) New Program
Forecast Contract Inflation Rate Programs In Reductions Programs Other Budget $ % QD
Back-to-Back Sales - -
Outside Sales - - #DIV/0! 4,400
Intercompany Sales - - #DIV/0!
Sales - - - - - - - - - - - #DIV/0!
Direct Material - - - #DIV/0! 2,992
Material % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Material Adders - - - - - #DIV/0! 32
Material Adders % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Labor - - #DIV/0! 326
Labor % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Overhead - - - #DIV/0! 458
Overhead % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Intercompany Purchases - - #DIV/0!
Mat Interco Sales % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Scrap - - #DIV/0!
Restructure - - #DIV/0!
Cost of sales - - - - - - - - - - - #DIV/0! 3,807
Gross Margin - - - - - - - - - - - #DIV/0!
Gross Margin % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Selling - - - #DIV/0!
Research & Development - - #DIV/0!
General & Administrative - - - #DIV/0!
Total operating expenses - - - - - - - - - - - #DIV/0!
Op expenses % of sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
- -
EBITDA - - - - - - - - - - - #DIV/0!
EBITDA % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Depreciation - - #DIV/0!
Amortization - - #DIV/0!
Interest expense cash - - #DIV/0!
interco interest - - #DIV/0!
Non-cash interest expense - - #DIV/0!
Translation loss (gain) - - #DIV/0!
Management fee - - #DIV/0!
Other (expense) income - - #DIV/0!
-
Total Non-operating - - - - - - - - - - - #DIV/0!
Income before income taxes - - - - - - - - - - - #DIV/0!
Income taxes - - #DIV/0!
Tax rate #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net Income - - - - - - - - - - - #DIV/0!
3223

2. 07/31/2010
REQUESTED CAPITAL: 268,766
REQUESTED EXPENSE: 5,190
273,956
Capacity Expansion: 2008 2009 2010
Total Gross Sales 6,841,627 6,841,627 6,841,627
Payment Discount 2.0% (136,833) (136,833) (136,833)
Rebate 0.0% - - -
Total Net Sales 6,704,794 6,704,794 6,704,794
% Tot Cost % Sales
Direct Materials 66.6% 3,651,803 3,651,803 3,651,803 54.5%
Material Adders 3.9% 211,805 211,805 211,805 3.2%
Labor/Overhead 19.4% 1,062,503 1,062,503 1,062,503 15.8%
Logistics/Whse 2.0% 107,479 107,479 107,479 1.6%
Import Duties 8.2% 447,828 447,828 447,828 6.7%
Total Incremental Cost 100.0% 5,481,417 5,481,417 5,481,417 81.8%
MARGIN on Incremental Sales 1,223,377 1,223,377 1,223,377 1,360,210
MARGIN % Sales 18.2% 18.2% 18.2% 19.9%
Cost Reduction:
Total Cost Reduction - - -
Requested Expense 5,190 5,190 5,190
COMBINED MARGIN 1,218,187 1,218,187 1,218,187
Ul/CSA Expense -
SG&A % Sales N/A N/A N/A
EBITDA 1,218,187 1,218,187 1,218,187
Depreciation: (Enter Depreciable Life) -----> 7 38,407 38,407 38,407
Taxable Income 1,179,781 1,179,781 1,179,781
Tax Rate 0.00% 12.50% 12.50%
Tax Payments 0 147,473 147,473
Working Capital Items:
DSO (Enter DSO) -----> 60 (1,140,271) (1,140,271) (1,140,271)
Inv Turns-Normal (Enter Inv Turns) -----> 12 (304,317) (304,317) (304,317)
Freight (Enter Days in Transit) -----> 35 (532,916) (532,916) (532,916)
AP Days (Enter AP Days) -----> 75 760,792 760,792 760,792
Total Working Capital (1,216,712.0) (1,216,712.0) (1,216,712.0)
EBITDA 1,218,187.4 1,218,187.4 1,218,187.4
Tax Payments 0.0 (147,473.0) (147,473.0)
Working Capital Change (1,216,712.0) 0.0 0.0
NET CASH FLOW (268,766) 1,475 1,070,714 1,070,714
CASH FLOW ECONOMICS:
RRR 13%
NPV $ 1,313,125
IRR 138.1%
PAYBACK (Years) 1.2
templateforbudgeting2010-100731092309-phpapp02.xls

3. 2007 Gross 2007 2007 net Inc/(Dec) in New (Lost) X
Customers Forecast Rebate Forecast Contract Price Program Program Reason
A
B
C
D
E
F
G
H
Total:

4. Y Z Net 2008
Reason Reason Change Budget

5. ECI (Huizhou)
2008 Budget
Headcount & Capex
Name Position Sep-07 Jan Feb Mar Apr May Jun
Fin
Dick Lam Controller 1 1 1 1 1 1 1
Stephen Li Manager 1 1 1 1 1 1 1
Lily Li Accountant 1 1 1 1 1 1 1
Tina Jia A. Accountant 1 1 1 1 1 1 1
Linda Lin A. Accountant 1 1 1 1 1 1 1
Samantha A. Accountant 1 1 1 1 1 1 1
Debbie A. Accountant 1 1 1 1 1 1 1
------------ ------------ ------------ ------------ ------------ ------------ ------------
7 7 7 7 7 7 7
Salary
Jan Feb Mar Apr May Jun
65,000 65,000 65,000 68,250 68,250 68,250
35,000 35,000 35,000 38,500 38,500 38,500
6,000 6,000 6,000 6,000 6,000 6,000
9,500 9,500 9,500 10,450 10,450 10,450
7,500 7,500 7,500 8,250 8,250 8,250
8,250 8,250 8,250 8,250 8,250 8,250
7,500 7,500 7,500 8,250 8,250 8,250
------------ ------------ ------------ ------------ ------------ ------------
Salary 138,750 138,750 138,750 147,950 147,950 147,950
MPF 6,938 6,938 6,938 7,398 7,398 7,398
Medical 2,100 2,100 2,100 2,100 2,100 2,100
Double Pay 11,563 11,563 11,563 12,329 12,329 12,329
Bonus 13,875 13,875 13,875 14,795 14,795 14,795

6. 5%á
Jul Aug Sep Oct Nov Dec Existing 2008
1 1 1 1 1 1 65,000 68,250
1 1 1 1 1 1 35,000 38,500
1 1 1 1 1 1 14,800 6,000
1 1 1 1 1 1 9,500 10,450
1 1 1 1 1 1 7,500 8,250
1 1 1 1 1 1 7,500 8,250
1 1 1 1 1 1 7,500 8,250
------------ ------------ ------------ ------------ ------------ ------------
7 7 7 7 7 7
Jul Aug Sep Oct Nov Dec
68,250 68,250 68,250 68,250 68,250 68,250
38,500 38,500 38,500 38,500 38,500 38,500
6,000 6,000 6,000 6,000 6,000 6,000
10,450 10,450 10,450 10,450 10,450 10,450
8,250 8,250 8,250 8,250 8,250 8,250
8,250 8,250 8,250 8,250 8,250 8,250
8,250 8,250 8,250 8,250 8,250 8,250
------------ ------------ ------------ ------------ ------------ ------------
147,950 147,950 147,950 147,950 147,950 147,950
7,398 7,398 7,398 7,398 7,398 7,398
2,100 2,100 2,100 2,100 2,100 2,100
12,329 12,329 12,329 12,329 12,329 12,329
14,795 14,795 14,795 14,795 14,795 14,795

8. Salary for Social Security
Jan Feb Mar Apr May
3,250 3,250 3,250 3,413 3,413
#N/A 224 224 224 224
#N/A 188 188 188 188
#N/A 188 188 188 188
#N/A 188 188 188 188
#N/A 188 188 188 188
#N/A 173 173 173 173

9. Jun Jul Aug Sep Oct Nov Dec
3,413 3,413 3,413 3,413 3,413 3,413 3,413
224 224 224 224 224 224 224
188 188 188 188 188 188 188
188 188 188 188 188 188 188
188 188 188 188 188 188 188
188 188 188 188 188 188 188
173 173 173 173 173 173 173

10. HK'000
Sales 30,000
Cost 25,000
Gross Margin 5,000
% 16.7%
Selling Expenses 2,500
General Admin 1,030
EBITDA 1,470
4.9%
HK$'000
C/M Budget F/(U) %
Sales 30,000 32,000 (2,000) -6.3%
Cost of Sales 24,000 26,500 2,500 9.4%
Commission 1,000 1,100 100 9.1%
25,000 27,600 2,600 9.4%
Gross Margin 5,000 4,400 600 13.6%
16.7% 13.8% -30.0%
Selling Expenses
A&P 1,300 1,500 200 13.3%
Staff Salary 1,000 977 (23) -2.4%
Staff Welfare 100 98 (2) -2.0%
Entertainment 30 25 (5) -20.0%
Traveling 60 55 (5) -9.1%
Others 10 11 1 9.1%
2,500 2,666 166 6.2%
General Admin.
Staff salary 800 810 10 1.2%
Staff welfare 80 75 (5) -6.7%
Rent & Rates 100 100 - 0.0%
Communication 30 25 (5) -20.0%
Others 20 19 (1) -5.3%
1,030 1,029 (1) -0.1%
EBITDA 1,470 705 435 61.7%
4.9% 2.2% -21.8%

11. Nov-07 Dec-07 Total 2007
Department RMB USD RMB USD RMB USD
Customer Service 515.00 68.67
Engineering 1,520.00 202.67
Finance 4,412.10 588.28
HR 2,423.00 323.07
IT - -
KPO 900.00 120.00
Manufacturing 945.00 126.00
Operations 950.00 126.67
PMC - -
Production 2,020.00 269.33
Program 2,195.00 292.67
Project - -
QA 1,915.00 255.33
Security 2,350.00 313.33
Supply Chain Management 300.00 40.00
------------------- ------------ ------------ ------------ ------------ ------------
Total 20,445.10 2,726.01 0 0 0 0
=========== ======= ======= ======= ======= =======

12. Cashflow
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08
Net Income 157 (258) 45 22 166 72 57 454 618
Add:
Depreciation 117 117 117 117 117 125 125 125 125
Change of WC
A/R (545) 2,172 (1,816) (249) 694 (374) (890) (1,246) (854)
Inventory 1,274 (632) 10 474 (605) (1,160) (1,339) (622) 574
A/P (803) (1,233) 784 (702) 380 1,323 1,412 706 (580)
Others
--------- ---------- ---------- --------- ---------- ---------- ---------- ---------- ---------
(73) 307 (1,022) (478) 469 (211) (817) (1,162) (860)
Capex - - - - (200) - (1,200) - -
Cash (Surplus)/Loan Required
(50) (165) 861 339 (552) 15 1,836 583 118
--------- ---------- ---------- --------- ---------- ---------- ---------- ---------- ---------
150 - - - - - - - -
Bginning Cash Balance 150 300 300 300 300 300 300 300 300
Net Cashflow 150 - - - - - - - -
Ending Cash Balance 300 300 300 300 300 300 300 300 300
===== ====== ====== ===== ====== ====== ====== ====== =====

13. Cur: HKD'000
Oct-08 Nov-08 Dec-08
489 338 223
125 125 125
338 890 374
880 453 1,156
(1,063) (579) (1,062)
---------- ---------- ----------
155 764 468
- - -
(769) (1,227) (815)
---------- ---------- ----------
- - -
300 300 300
- - -
300 300 300
====== ====== ======

14. ABC Company
2009 Budget
Cost Reduction
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09
1. Material Saving
Connector - - - - - - -
Housing - - - - - - -
Wire - - - - - - -
Packing - - - - - - -
IC - - - - - - -
- - - - - - -
2. Utitlity - - - - - - -
3. Re-structure
Department
IT - - - - - - -
Finance - - - - - - -
Production - - - - - - -
Material - - - - - - -
- - - - - - -

15. Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Total How
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -