Newco Singapore Pte Ltd29 July 2016

Organisational Operations

Business Process Analysis 29/7/2016

139 10 11 12

Organization Process Analysis1

Newco Singapore Pte Ltd2 3 4 5 6 7 8

Gen Mgt

budget

AnnualBudget

Finance

budget

HR

budget

Mkt&Sales

budget

Purchasing

budget

Manufacturing

budget

Warehouse

budget

Logistics

budget

QC Dept

budget

Admin

budget

Plg & Contr

budget

IT

budget

Annual OpsPlan

Plan Plan Plan Plan Plan

Engineering

budget

Plan Plan Plan Plan Plan Plan Plan

Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual

variance variance variance variancet variance variance variance variance variance variance variance variance

Raw Matstocks data

Production

Delivery call-offs

Packaging

Micro ProdPlan

QC

Productsstocksdata

Store Holdingbatch coding

QCpalletization

SalesInvoice/DO

sales orders

Order Entry

checkavailability

InwardLogistics

OutwardLogistics

ProdPlanning

Customers

AccountsReceivable

payment

AccountsPayable

HR AdmRec & Resign

TrainingSalary Adm

Cash-flowAsset Mgt

Mgt ReportsExch Rate

Bus DevCRM

Mgt Reports

SourcingVendor MgtContracting

Plan MaintCap DevelQual AssCAPEX

Hdlng MCsInvent Mgt

CustomsContractorsForwarders

QC Protocol Office MainSecurity

Insurance

ForecastingMacro PlanMicro PlanMgt Report

MIS serviceEmail

Asset MgtIT Support

Mc MaintWorkshop

Corp GovernComms

vendors

supplycontracts

ManagementMeeting

waste disposal

Utility (boilers,power, air, etc)

PlannedMaint

GeneralUpkeep

IT ServerRoom

WH Mgt

Laboratory

ERPSystem

Reception

Mails

DeliveryVehicles

Security

WSH

Website

BankFaciltiies

HR

Jacob Business Armour Pte Ltd Confidential JaICPR

failed low < average normal > average excellentclass ratio year

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Line6ALine6B

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Highlights

Activity or Efficiency ratios:

Liquidity ratios:

Solvency ratios:

Profitability ratios:

Valuation ratios:

Cla

ss R

atio

s

18

5

9

10

Inventory Turnover

Working Capital Turnover

Asset Turnover

Inventory:Total Asset

Working Capital Ratio

Quick Liquidity Ratio

Average Collection Period

Debt ratio

Financial Leverage Ratio

Interest Coverage Ratio

Net Profit Margin

Return on Equity

Return on Asset

Earnings Per Share

Price Earnings Ratio

Book Value-Price Ratio

Net Book value:Share capital

Net Book value - Market Capital

1

2

3

4

6

7

8

11

12

13

14

15

16

17

2015

20152014

2015

2015

2014

2014

2015

2015

Overall profitability performance is negative. , Return on Equity is/are negative.

Net Book (tangible) value has been increased by 333.4% from shareholder equity.

2015

2015

2015

2015

Solvency is dangerously low. Debt ratio, Financial Leverage Ratio is negative and situation is critical.

2015

2015

2015

2014

2014

2014

2014

2015

2014

Business efficiency is average, now try to improve further.

Overall liquidity is too low. Inventory:Total AssetQuick Liquidity Ratio is negative, situation is critical.

2014

2014

20142015

2015

2015

2015

Newco Singapore Pte LtdAssignment Date: 1 Jul 2016

2014

2014

2014

2014

2014

2014

2014

A

B

C

D

E

A

A

A

B

B

B

B

C

C

C

D

D

D

E

E

E

E

E

JaCCM Review 8/8/2016

Newco Singapore Pte Ltd

SN Department Mission VCN M1 M2 M3

1 Gen Mgt Provide organization the business targets, direction, resources and control to achieve theorganization's mission as set by shareholders. 4 3 3 2

2 Finance Manage financial and accounting needs to support the operation of the organisation. 8 5 5 4

3 HR Dept Arrange an on-going provision of suitable employees and staff to support and operate theorganization's functions. 5 4 7 1

4 Mkt & Sales Establish and build customer base that will purchase the goods and services created by theorganization. 6 11 6 3

5 PurchasingAcquire according to specifications and at optimal purchase terms and conditions the rawmaterials, services and required plant and equipment that the organization require to carryout business activities.

4 3 6 5

6 Manufacturing Produce the products and/or services at the set quality standards and sufficient quantity thatthe organization sells to customers. 3 0 18 13

7 Warehouse Store, maintain and administer the stocks of raw materials and auxiliary materials to makesuch stocks available to production as required. 3 0 5 7

8 Logistics Arrange for the physical movement, storage and distribution of raw materials and finishedgoods. 6 5 9 2

9 QC Dept Conduct quality control actions on production of goods so as to establish if they meet withthe set quality, safety and operational requirements. 3 2 4 1

10 Admin Provide administrative services to support and facilitate the organization's operations. 4 5 0 0

11 Planing & Control Plan and control the scheduling of various manufacturing processes so as to accomplish theoptimal time of delivery of fiinish products to meet with sales obligations or targets. 3 3 2 3

12 IT Dept Provide the services to manage the business information of the organization so that dataand records can be made available, confidential and secured. 4 1 9 2

13 Engineering Provide maintenance to plant and equipment and manage the engineering projects that theorganization require. 3 9 13 5

Mission Statement

Newco Singapore Pte Ltd

No Departments Supervision Peo Mat Eqpt Proc Data Doc Fin Cus Supplier Law & Reg

1 Gen Mgt 2 . 1 . 1 1 . 1 . 1 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 1 . 0 0 . 0 . 0 0 . 1 . 0

2 Finance 0 . 1 . 3 0 . 2 . 1 0 . 0 . 0 0 . 1 . 1 0 . 2 . 0 1 . 1 . 0 1 . 1 . 1 1 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 0

3 HR Dept 1 . 2 . 1 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 1 . 0 2 . 1 . 0 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 1 . 0

4 Mkt & Sales 1 . 1 . 0 1 . 2 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 0 0 . 0 . 0 3 . 0 . 0 0 . 0 . 0 4. 2 . 3 0 . 0 . 0 1 . 0 . 0

5 Purchasing 0 . 2 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 2 . 1 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 4 0 . 0 . 0

6 Manufacturing 0 . 2 . 2 0 . 1 . 3 0 . 4 . 0 0 . 2 . 3 0 . 2 . 1 0 . 2 . 0 0 . 2 . 0 0 . 0 . 0 0 . 0 . 0 0 . 2 . 3 0 . 1 . 0

7 Warehouse 0 . 1 . 2 0 . 2 . 0 0 . 0 . 1 0 . 2 . 0 0 . 0 . 1 0 . 0 . 0 0 . 0 . 3 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0

8 Logistics 0 . 3 . 1 0 . 3 . 0 0 . 0 . 0 2 . 2 . 0 0 . 0 . 1 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 2 . 1 . 0 1 . 0 . 0 0 . 1 . 2

9 QC Dept 1 . 0 . 0 0 . 3 . 0 0 . 0 . 0 1 . 1 . 0 0 . 0 . 1 0 . 0 . 1 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0

10 Admin 1 . 0 . 0 1 . 0 . 0 0 . 0 . 1 0 . 0 . 0 1 . 0 . 0 0 . 0 . 0 1 . 0 . 0 0 . 0 . 1 0 . 0 . 0 0 . 0 . 0 1 . 0 . 0

11 Planing & Control 0 . 1 . 0 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 1 . 0 . 0 1 . 0 . 3 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0

12 IT Dept 0 . 1 . 1 0 . 1 . 0 0 . 0 . 0 0 . 1 . 2 0 . 4 . 0 0 . 1 . 0 1 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0

13 Engineering 0 . 2 . 0 0 . 1 . 2 4 . 2 . 1 4 . 2 . 2 0 . 4 . 0 0 . 0 . 0 0 . 1 . 0 0 . 0 . 0 0 . 0 . 0 0 . 0 . 0 1 . 1 . 0

14

Rating Report

Newco Singapore Pte Ltd Department Report for: Finance

No Rating VCN Risk Solution Remarks Action

1 M3 SupervisionManaged by CFO and CEO, who both can seek bankfacilities. Chairman should sign bank documents exceeding $1million.

Discuss at Board, and formalise this as SOP This will avoid APB-type case Yes

2 M3 Supervision CFO is qualified but is too busy Train a successor or back-up Maybe Stephanie Teo can besuccessor Yes

3 M3 Equipment ERP constantly gives problems, and sometimes seriouserrors. Review conditions for change to SAP system. Call current vendor to correct

before deciding to explore SAP. Yes

4 M3 DocumentationSometimes, payments to suppliers are not supported bysigned Goods Receipt Vouchers. This can result in falsepayments

To ensure that the 3-document check system for payment isstrictly upheld.

Problem is putting the 3-documents together into sets. Tommy

5 M2 Supervision The AR Finance Supervisor is often away on sick leave. Thisresults in slower collection of ARs.

Speak to the supervisor and/or appoint another person to takeover. This is more a personal issue. Yes

6 M2 People There is insufficient finance staff, who have often to work toomuch overtime. Vigilance and accuracy may be uncertain. Recruit additional person. This happens only during month

end closing. No

7 M2 People Sales persons often do not offer assistance to chase forpayment. CFO to speak to Sales Manager on getting required support. Need to formalise coordination via

a regular meeting. yes

8 M2 Process Sometimes there are duplicate POs raised for samepurchase. This can result in repeat payments. Purchasing Department should correct this problem. PO raised are not properly

recorded. Yes

9 M2 Documentation Issuance of Aging Accounts is often not done on time. Due tothis, it is hard to see the AR position.

Check if the ERP system can be used to generate the ARAging Accounts by 1st week every month.

Important to alleviate payment ofsalaries and AP. Yes

10 M1 Data Due to exchange rates, actual costs of imported materials arehigher than budget. CFO to discuss with CEO to consider hedging.

Consider keeping an US$ accountto receive and payment overseassuppliers.

Yes

11 M1 Documentation Currently, Invoice and DO documents are printed at Financeand sent to Logistics Department. Consider allowing Logistics Dept to print documents. Talk with IT Department. Linda Teo

12 M1 Finance Occasionally, there can be shortage of cashflow to makepayments to suppliers.

Improve the system of cashflow forecasting, and to make ARcollection more effective.

Tony (IT Dept) to discuss issuewith CFO. Yes

13 M1 Law&Reg ACRA Reporting sometimes gets delayed. Inputs not alwaystimely. Review and set proper time planning This is the best possible, nothing

better can be done. No

JaBA.Internal Controls Process Analysis Confidential Page 1 of1

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