1.

0
History:

Executive Summary

Friends Enterprises was established in 1994 by Mr. Amjad Bhatti as a printed shopping bag manufacturing company. Its production is dependent upon the orders taken from customers. he company has a current market share of 1!" and the market is e#panding $" annually. he company has been generating profits since its start but has not been able to maintain the high standards of %uality& as the old machinery was not changed by the time. he market share shrunk as a result the profit came down. he new machinery has now been purchased and the %uality of the printing has started impro'ing. But still company has no proper accounting system only customers and suppliers accounts are maintained.

MIS Software:
MI( software will be de'eloped by a software house which will co'er in'entory& accounts and daily business. hrough the MI( software the management will be able to see the proper financial picture of the company and can make good decisions. It will also help in setting targets and checking the position of the company at any time.

Opportunity Rationale:
Many in%uiries regarding paper printing has been coming to the company but due to non)a'ailability of resources *riends +nterprises could not start paper printing. But now it is the time to start paper printing. here is no fully integrated unit in ,ujranwala. By setting)up a fully integrated unit *riends +nterprises can earn a lot of profits and increase its product line. he e#isting building can accommodate the press machinery and there will be no need for security person or separate designer. Abo'e all this *riends +nterprises ha'e sound customer base using printed paper in their businesses. he credibility of *riends +nterprises is another plus point. 1

Market Researc ! "nalysis:

By carrying out research on the current customers& competitors and studying the industry dynamics it is clear that paper printing is a profitable business for *riends +nterprises and the company should setup a printing press.

Raw#materials ! Mac inery:

he machinery and raw)materials are easily a'ailable in the local market. But *riends +nterprises will not take paper in its in'entory as there are lot of 'ariations in si-es& %uality& weight and brands. An in'entory that is e%ual to $. days of production will be kept. /ne 0ota and one (olna printing press will be purchased in the first year followed by the purchase of one 0ota and one (olna printing machines in the ne#t 1 years respecti'ely.

$ro%uction ! $rocesses:
After market research we ha'e assumed that order si-e will be 1!.. impressions per order and we will be able to get !. orders in the first month of operations and during the first year we will complete 1.21 orders. printing. he proposed unit will be a fully integrated unit co'ering all the printed paper needs of the industry e#cept news)papers he process of printing will include designing& positi'e making& plate making& cutting& printing& lamination& die)cutting and deli'ery.

&inancial "nalysis:
he initial in'estment re%uired is 0s. 1&!..&... and its payback period is 1.9 years. In the first year the di'idend will be 0s. 13.&... and net retained earning 0s. 434&42$. he return on assets will be $9" for the first year where as return on in'estment will be 24" as compared to 1." cost of capital. All these figures show a 'ery healthy sign towards the startup of the paper printing press.

'

1.1Mission Statement:
he mission statement for *riends +nterprises is 5 o become a leading printing ser'ices pro'ider in the industrial belt of ,ujranwala& ,ujarat and (ialkot by earning customers satisfaction6.

1.'

O()ective:

he objecti'e of *riends +nterprises is 5 o earn profit by pro'iding %uality printing ser'ices and to increase the sales and product)line to achie'e the targeted profit6.

1.*

Opportunity Rationale:

*riends +nterprises has been in operations of printing from 1994 and fre%uently recei'ing in%uires about paper printing. But due to non)a'ailability of resources Mr. Amjad has to refuse the customers. 7ow after 11 years the factory is in a position to go for di'ersification in product)line. he infrastructure of *riends +nterprises has here will be no problem regarding enough space in it to start paper)printing operations. (o there will be no e#penditure in the shape of purchase of land and building. finance as the factory has recently sold a house worth 0s. $$& ..&.... he electricity connection is already a'ailable. And abo'e all the goodwill of the *riends +nterprises which is due to its presence in the market for the past 11 years. aking all these points as positi'e sign to go for paper)printing we decided to make a business plan for paper printing. And to get clear financial picture of the company we needed a management information system. o make a business plan firstly we studied the current business situation at *riends +nterprises.

'.0

History of t e +ompany:
*

Mr. Amjad Bhatti who was already running a non)printed plastic bag)manufacturing factory with his elder brother since 1944 established friends +nterprises in 1994. 8e had lot of e#perience in the plastic bag industry. In 1944 he started a new factory seeing an opportunity that people were mo'ing towards the use of plastic bags instead of paper bags which were made up of paper)waste. In 1994 he again saw an opportunity that people had started using printed shopping bags for packing. (o he built a new factory named *riends +nterprises. Initially it started off as a *le#ography printed bags manufacturing company and the profit for the first 4 months was half a million. In 1993 ,ra'ure 9rinting machine was purchased to increase the product)line. At the startup of the factory no attention was gi'en to %uality of printing neither by the customer nor by the company as the demand was high and a few competitors were manufacturing printed bags. 7ow the customers are %uality conscious and demand high %uality at competiti'e price.

'.1

Mana,ement -eam:

*or the last 1. years *riends +nterprises has been working without any formal management setup. In the start there was less competition but now the competition has grown up rapidly and is becoming a threat to the company. *or the last ten years Mr. Amjad Bhatti has been looking after all the operations of the company and for the last 4 years his son Mr. Ajmal Amjad has been doing all the marketing sort of things.

'.'

"ccountin, system:

Mr. Amjad Bhatti has handled only the accounts of customers and suppliers and has made balance sheets e'ery year but there is no income statement& cash flow statement or cost of goods sold statement. :ue to no proper accounting system in place it is not possible for *riends +nterprises to offer lower rates as the management do not know their own margins a'ailable to them.

'.*

+urrent Marketin, Strate,y:

.

+urrent $ro%ucts: ;urrently *riends +nterprises is manufacturing a 'ast 'ariety of products in 'arious si-es& designs& colors& in 'arious materials. In *le#ography 9rinting the products are like rappers for salt& spices& tube)light fittings& tyre < tube& fans& washing machines& retailer=s printed)shopping bags& bakers& sweets and any thing like that. It depends on the situation. Many times we get a completely new type to make like special order for plastic bags for bundle of clothes and garments& suitors and jackets. In ,ra'ure 9rinting the products *riends +nterprises is currently making are dishwashing soaps& nimko& slanty& mahndi& lolly pops& milk toffee& supary& rice bags& tyre < tube and others. +urrent $ricin,: ;urrently the shopping bags manufactured by *riends +nterprises are of medium %uality but are priced at higher than its competitors.

' / 2

* 0 3

.
1 8igh %uality Medium %uality >ow %uality

8igh Medium >ow 9rice 9rice 9rice he products of *riends +nterprises fall into the Bo# ? 4 because the %uality of *riends +nterprises is better than competitors and so they are able to charge higher prices.

+urrent $romotions: In this industry there is no acti'ity going on regarding promotion. @ust the shopkeepers are gi'en some margins. *or ad'ertisement a small monogram of the company is placed just beneath the handle of some shopping bags. In some designs company=s name and address is also written at the bottom of the rapper. 4esi,nin,: Mr. Ajmal Amjad has been doing designing for *riends +nterprises and the designs which are 'ery comple# are de'eloped from professional designers. :ue to o'er)load of work many times there is delay in designing and it then affects the whole process of printing till the dispatch of finished goods. 7ow a designer has been hired on daily wages bases to do designing for *riends +nterprises. Or,ani5ational Structure: At this moment the company has no formal organi-ational structure. All the employees directly report to Mr. Amjad Bhatti and his son Mr. Ajmal Amjad. Employees: here is an 6sta% S a,ir% culture in place at *riends +nterprises. here are 4 ustads and 3 shagirds. Also there are 1 gatekeepers and one mechanist in the factory=s workshop. Suppliers: here are different types of suppliers for *riends +nterprises. (ome are suppliers of 9olypropylene used in the manufacturing of plastic films and some are suppliers of plastic films and some are suppliers of inks and chemicals.

'..

+urrent $ro%uction $rocess:

&lexo,rap y $rintin,: *or most of the plastic products *le#ography printing machine is used. Its process in'ol'es de'elopment of design on a paper& making of firstly negati'es and then rubber blocks and then pasturing of blocks on rolls for printing. he plastic films for printing are made on film e#tractor machines& which are different for each type of plastic. he inks and chemicals used are easily a'ailable in the market. 7ravure $rintin,: *or pearl and metali-ed plastic paper products ,ra'ure printing machine is used. Its process in'ol'es designing& negati'e de'elopment& chromed rolls making& and printing. he plastic films for gra'ure printing are bought from out)side. he inks and chemicals used in gra'ure printing are a'ailable in the market. To know about the machines used in manufacturing of plastic bags see exhibit no. A1B. and to know about the current plant layout see exhibit no. (2)

*.0

Market Researc an% "nalysis:

1

he o'er)all printing industry can be di'ided into three main categories.

$RI8-I87 I846S-R9

$:"S-I+

$E"R:

$"$ER

$O:9$RO$9:E8E

$O:9-HE:E8E

O$$ $earl

:ow 4ensity

Hi, 4ensity

:inear :ow 4ensity

Metali5e%

;ox ;oar%

"rt paper

&lyin, paper

*or this project we are concerned with paper printing which can be further di'ided into three categories that are bo# board Aused in making packagesB& art paper Aused in art workB and flying paper Aused in making of books and stationeryB.

*.1

Importance of $rintin,:
2

he importance of the printing and graphic arts sector is often under)estimated. :ue to stability in economy in last few years& there has been a positi'e trend in all major business sectors of the country. 9rint media is one of the most effecti'e and economical mediums of communication and promotion and is used by all major businesses. (ince& the in'ention of printing press in 14$2 by ,utenberg of ,ermany& it has contributed a lot towards e'olution of humanity. Its significance in day to day business promotion and marketing cannot be ignored. In today=s competiti'e en'ironment& businesses re%uire appropriate marketing < promotional tools to build product recognition in the market. *rom brochures to packaging all are means of effecti'e sales promotion tools and re%uire ser'ices of printing press. Major share of customers for printing press are institutional buyers. Institutional buyers in 9akistan for printing press can be di'ided into following broad categoriesC ;usiness Sector: :ue to stability in economy in past few years& a handsome amount of in'estment has taken place in the country=s business sectors. In year 1..$).4& there was a growth of 3.$" in manufacturing industry& 1..1" in large)scale manufacturing and !.$" in ser'ice sector. he o'erall growth in ,79 in year 1..$).4 was !.1". here are 4.1 public limited companies listed in 9akistan with an immense re%uirement of printed material for their businesses. According to directorate of industries& more than 21&... industrial units are operating only in the 9unjab pro'ince. E%ucational Sector: Another sector& which re%uires e#tensi'e ser'ices of printing press& is the educational sector in the form of books and other printed material. ,o'ernment of 9akistan has reali-ed the importance of increasing the literacy rate to jump start economic growth and alle'iate po'erty in the country. In year 1..1).$& the ,o'ernment has allocated D !$ million for education& which is 3." higher than the pre'ious year.

*.'

In%ustry "nalysis:
3

>ahore and Earachi are the two major centers of printing and publishing business in the country. here are appro#imately 124 printing presses in organi-ed printing sector of Earachi. In 9unjab& total number of presses are appro#imately 934 Aout of which 29. are located in >ahore onlyB with employment absorption of around 4&3.. people. According to some estimates total in'estment in this printing and publishing in the 9unjab only stands at 0s. 14! million. ;urrently& printing industry in the country is segmented and unorgani-ed. here is an association in >ahore named All 9akistan (mall 9rinting 9ress Association but it is not fully operational and does not encompass the entire industry. 8owe'er& printing business in Earachi is comparati'ely more organi-ed and better documented. /ne major trade association in Earachi rele'ant to this business is 9A9,AI A9akistan Association of 9rinting and ,raphic Arts IndustryB& which is trying to organi-e the sector in association with ,o't. of (indh. 4istrict wise 4etails of $rintin, $resses in $un)a(:

4istrict Bhakkar :.,. Ehan *aisalabad ,ujranwala @hang @helum >ahore >udhran Mianwali Multan 0awalpindi (argodha (ialkot oba ek (ingh

8o. of 6nits $ ! 1.. 1! 1$ 11 29. 1 1. 14 $! 43 1! 1!

10

$ro%ucts of $aper $rintin,: 9rint industry is producing following productsC F 9ackaging material F In'itation < ceremonial card F 7ewspapers < maga-ines F *inancial reports < prospectus F /ffice stationery < 'isiting cards F Books of account F Books Ate#t books and othersB F ;alendars < diaries F ;atalogues < pamphlets F Brochures < handbills F 9osters F ags < stickers etc +ate,ories of $rinte% Material: he abo'e products can be di'ided into four categories described belowC $romotional material It includes items like financial reports& brochures& catalogues& posters calendars& diaries and 'isiting cards etc. 11

Office stationery It includes letterheads& printed files& 'ouchers& in'oices& inwardGoutward documents etc. and books of account. 4escription ;ultural < +ducational Items Industrial < 9romotional Items (tationery < /ther Items $u(lis in, material It includes literature books and te#t books etc. $acka,in, material It includes packing material of all kinds like bo#es& cartons etc Market Se,ments: he market for printing products can be di'ided into following segmentsC As far as demand for industrial and promotional items is concerned& it can safely be assumed that e'ery industrial unit whether it is large or small& re%uires ser'ices of printing press. ;urrent growth rate in manufacturing industries is 4.4" in large scale manufacturing 3.4"and in ser'ices sector !.$". Industrial units mostly re%uire ser'ices of printing press for their packaging material i.e. Alabels& wrappings& bo#esB. he table below shows some of the industries ac%uiring the ser'ices of printing press for packaging purposes. $ro%uction of some in%ustries re<uirin, printe% packa,in,: $ro%ucts Brochures& newspapers& books& and maga-ines (ales 9romotional 9rintings& printed wrappings& annual reports& (ecurities& blueprints and labels 9ictures& color and drawing books for children& calendars& art prints& engra'ing& school and office (upplies

1'

he annual turno'er in the printing industries is strongly influenced by the state of the economy in general. About 1! " of the total demand comes from the indi'idual consumer& while remaining 4! " from the institutional buyers.

*.*

+ustomers= "nalysis:

*or making this business plan for paper printing we conducted a sur'ey on the current customers of *riends +nterprises. He de'eloped a %uestionnaire to be filled by the current customers of *riends +nterprises. A sample %uestionnaire is shown in in exhibit no. (3). Sample Si5e: He selected a sample si-e of $. customers of *riends +nterprises. And it has been assumed that this si-e represent all the customers of *riends +nterprises which are 1!.I. Sample Selection: He went for con'enience sampling because each %uestionnaire was to be filled by the customer who 'isited *riends +nterprises and it was not possible for us to be in the 4escription>9ear 1333#'000 '000#01 '001#0' 7rowt ?@A ;igarettes AMil. 7os.B 42&942 !3&1!9 !!&$13 ) ea AtonsB !4&94. 42&$24 !4&31! 13.11 ;osmetics A... containersB 13$&49. $34&299 $2$&$99 ) oilet (oap AtonsB 3$&$$! 4.&239 4!&444 4.1. :etergents AtonsB $3&994 49&$21 !9&.41 19.21 :etergent Bars AtonsB 1$&$.! 14&2.3 13&194 1!.12 +lectric Bulbs A... 7os.B 2$&134 !!&1.1 !4&!34 ) factory to get the %uestionnaires filled in front of us so the %uestionnaires were gi'en to the management of *riends +nterprises and they returned it after they had been filled. Researc O()ectives: 1*

He had some objecti'es in our minds while de'eloping the %uestionnaire which are as followsC 1. o know how many customers of *riends +nterprises use paper regarding %uality& price& payment& ordering. "nalysis of t e <uestionnaires: After getting the filled %uestionnaires we analy-ed these %uestionnaires and their findings is shown in in the exhibit no. (4). If we summari-e what e#hibit no.A4B shows it is clear that most of the customers of *riends +nterprises are also the consumers of paper as 91 " of them use paper. 32 " of the sample use printed paper. !4 " customers are using paper and 4$ " are using board. 3. " of the customers purchase below 1!.. pieces in a month. 3. " of the customers who use printed paper ha'e a demand si-e for printing 13 J 1$ inches ma#imum. 21 " of the customers prefer to 'isit the factory to place an order and remaining $3 " gi'e order through telephone. !4 " of the sample want a'erage %uality printing at a'erage price where as 42 " is ready to pay high price for high %uality printing but not a single one demand low %uality printing at low price. ;ollecti'ely 44 " of the customers place the order for printing at the most 1 week before the stock ends. !4 " of the customers demand a credit limit of 1! days for payment& $. " of the customers pay in cash where as remaining 12 " re%uire more than 1! days for payment. And at the end 42 " of the sample belong to the industries manufacturing home)accessories like fans& tube) fi#tures& air)conditioners& gas)heaters and others. $2 " of the customers are the manufacturers of food products like nimko& chips& toffees& ice)cream and others.

'. In which %uantity they purchase printed paper and what are their preferences

*..

+ompetitors "nalysis:

he number of competitors for *riends +nterprises is 'ery big. Because *.+. will not only going to compete the printing presses but also the cutting& die)cutting& lamination and designers. 1.

he weaknesses in the competitors are as followsC 1. 7o full integration Ae'ery)one is working indi'iduallyB. '. All are working at small scale. *. 7o efficient use of labor. .. >imited financial resources. /. 7o credit sales. Hhere as the strengths of the competitors are as followsC 1. ,ood location regarding customers AIn an established market for printingB. '. +asy access to the raw)materials.

*./

Recommen%ations after Market "nalysis:

In the light of the abo'e analysis and the sur'ey we recommend that there is an opportunity a'ailable for *riends +nterprises to e#tend its product line by purchasing machines ha'ing printing si-e capacity 13 J 1$ inches ma#. he %uality may 'ary between a'erage and high and so is the case with the price. he company will ha'e to be in a position to sell on 1! days credit terms. Also the office should be in a good position as most of the customers prefer to 'isit the factory for ordering. Most of the customers will be the hea'y users of paper printing and so there will be some margin a'ailable with *riends +nterprises to offer discounts. :ocation: he location of the printing press plays a great role in its progress. As the major customers of printing press are industrial buyers& so the unit should be established where there is a large business cluster. here is a market of printing presses on 7umania 0oad where there are at least $. printing presses. But all of them are operating indi'idually on small scale. And there is no complete forward or backward integration. (o the customer has to go from one shop to another to get his order completed. (ome of the presses ha'e installed cutting machine but no lamination or 1/

die)cutting machine where as some presses ha'e installed lamination machine but no cutting or die)cutting machine. *riends +nterprises will be operating as a fully integrated unit. (o the customer will get his order fully completed under one roof. here is a little disad'antage regarding distance from local paper store. he small press owners do not take paper in their in'entory. *riends +nterprises has the resources to stock a reasonable amount of paper and so remo'ing the disad'antage. As told abo'e that 1! " demand comes from indi'iduals and 4!" from institutional buyers& *riends +nterprises will be focusing on institutional buys rather than focusing on indi'idual customers. (o it will be feasible to keep some in'entory of paper as the orders will be repeated again and again. $ro%uct Mix: he proposed printing press has the capability to produce all the products of offset printing industry e#cept newspapers. As *riends +nterprises is a printed packaging material manufacturing company the main purpose of new printing press will be manufacturing of packaging paper material like bo#es and cartons. Also it will do some other printing works like 'isiting cards& brochures and posters. he main focus will be to fulfill all the industrial needs of other companies. According to the market segmentation described abo'e *riends +nterprises will be printing Industrial < 9romotional Items.

*.0

S.B.O.-. "nalysis:

he strengths of *riends +nterprises includeC 1. >ow capital re%uired to setup the printing press as there will be no cost of land and building. he new press will be installed in the current building. '. ,ood)will due to presence in plastic printing industry for last 11 years. *. ,ood financial position of the factory. .. (trong customers base using printed plastic as well as printed paper. /. 11 hour shift and so more production per day than the local market. 10

he weaknesses of *riends +nterprises includeC 1. 9oor location regarding market for paper printing. '. 7o e#perience in paper printing. *. 7o contacts with raw)material suppliers for paper printing.

he opportunities a'ailable to *riends +nterprises are as followsC 1. :i'ersify its product line hence increase re'enues. '. Attract large companies to work with *riends +nterprises. *. *ill the gape a'ailable in the market in the shape of no fully integrated unit. .. +arn more profits than the other printing presses due to full integration. /. >esser setup and operations cost than the industry standards due to own land and building. he threats for *riends +nterprises areC 1. (ome)one else start a fully integrated unit. '. If the demand is less than e#pected. *. If there is a shortage of supplies. .. If there is o'er demand of printed paper. 0emedy for these threats are gi'en below according to the numberingC 1. o cope with the first threat we will ha'e to reach economies of scale as soon as possible so that we can compete with any other fully integrated unit. Also we will be offering discounts to our customers. '. If the demand is less than e#pected we will ha'e to go for aggressi'e marketing through sales)man. Also we will ha'e to go for smaller orders. He will also ha'e to cater other market segment i.e. cultural and educational items like Brochures& newspapers& books& and maga-ines. *. he company has to maintain a reasonable amount of in'entory of supplies so that at the time of any short)term shortage of supplies factory can run its 11

operations smoothly. But if the shortage is of long)term then *riends +nterprises can import most of the raw)materials. .. If there is o'er)demand of printed paper *riends +nterprises can out)source some of the orders but if there is a continuous o'er)demand of printed paper for many months *riends +nterprises will ha'e to purchase another printing machine.

..0

Implementation Re<uirements:

*or implementation of this business plan we need to study the different processes in'ol'ed in the printing of the paper. Also we ha'e to know from where we will get the raw)material& machines and labor.

..1

$rintin, $rocess Stu%y:

*ollowing different technologyGprocess options are a'ailable for printingC

Offset :it o,rap y: he basic principle of offset printing Kthe dominant printing processK is simpleC ink and water donLt mi#. +arly lithographers etched images onto flat stone. hese images would accept ink& while the porous stone accepted water. Hhen ink was applied& it stayed on the greasy image area and a'oided the rest of the stone. Modern lithography uses the same concept but adds one important element. In modern presses& the image is transferred from the printing plate to a rubber blanket and then to the paper. his process is called offset printing. Although there are many different kinds& si-es and %ualities of offset presses& the basic configuration remains the same. Hhen the printing plate is e#posed& an ink)recepti'e 12

coating is acti'ated at the image area. /n the press& water rollers dampen the plate& first& then by ink rollers. Ink adheres to the image area and water to the non)image area. As the cylinders rotate& the image is transferred to the blanket. 9aper passes between the blanket cylinder and the image is transferred to the paper. he major types of offset presses are sheet fed and web. In a sheet fed press& cut paper is deli'ered into the machine. In a web press& paper comes on a large roll and is cut after printing.

&lexo: *le#ography& often called fle#o& is a 'ersatile process that uses photo)etched plates. he non)image areas on these plates are etched away& lea'ing only the printing surface that carries the ink directly to the printing material Areferred to as the substrateB. *le#o is best suited for printing on a rolled substrate other than paper such as bo# boards& foils& plastics& newsprint and more. ;ommon applications for fle#o include labels& tabs& corrugated bo#es& cartons and newspapers. 7ravure: Basically& gra'ure turns e'erything in the image into halftone dots. he plate cylinder consists of tiny cells& 'arying in depth and width& which hold the ink. As the press runs& a blade scrapes e#cess ink off the surface of the plate& lea'ing ink only in cells. As the paper contacts the plate& the ink is transferred& reproducing type& rules& graphics& and photographs as composites of 'ery fine dots. ,ra'ure is used only in 'ery long runs& usually for publications and packaging printing. Be( $rintin,: Heb printing is offset lithography printing on large continuous rolls of paper known as webs. +#pensi'e at shorter runs& it is most commonly used for the production of newspapers& maga-ines and catalogues due to its speed and economy at runs o'er 1!.&... per hour. 13

:etter $ress: *ormerly the standard printing process& letterpress is now largely used for specialty work such as fine art prints& books and posters. In the process& the image area is actually raised abo'e the rest of the plate& so the image makes a physical impression on the paper. Modern letterpress uses a photo)etching techni%ue to remo'e the non) image area from the plate. 4i,ital $rintin,: Mnlike traditional AoffsetB printing presses& digital presses are made to produce short) run A1 to !... copiesB %uick)turnaround& full color jobs. In traditional printing& your job goes from your desktop to a digital proof& to an image setter Afor making filmB& to another proof& to a plate maker& to the printing press. But in digital printing your job goes from your desktop to a proof to plates to the press ) or e'en directly from desktop to press. Screen $rintin,: In screen)printing& ink is e#pressed through a stretched fabric mesh by a s%ueegee blade to reproduce the original image onto the substrate below. A 'ariety of materials such as paper& plastic& metal& fabric and glass can be screen)printed. Baterless :it o,rap y: 9rint buyers are hearing more and more about waterless offset as the process becomes more commonly used in the Mnited (tates. Almost any offset printing press can be con'erted to run waterless if it is retrofitted with a cooling system that& among other things& helps maintain the inkLs temperature. 7ewer presses are a'ailable with the con'entional dampening system and a cooling system so that they can run waterless. (pecial plates must be used so that the non)image area still repels the ink.

'0

$rocess &low + art &or Off#Set $rintin,:

;oncei'ing IdeaG:esigning

:e'elopment of 9ositi'e

9late Making

;utting

$rintin, Ink < Hater 9aper

'1

>amination

;uttingG :ie cutting

9ackingG :eli'ery

$ro%uction $rocess:
7rap ic 4esi,nin,: In the :esigning stage the designer prepares the design of the product taking into account the o'erall look and feel of the paper. e#t to be printed is typed and graphics to be shown are created. :esigning of graphics is of two types& halftone and line art. 8alftone is the reproduction of continuous)tone artwork Asuch as a photographB through the application of a screen that con'erts the image into dots of 'arious si-es. >ine art is the art that is made up of continuous lines such as pen < ink drawings or typefaces. wo type of color schemes are used in the making of a design. 0,B Ared& green& blueB color scheme is used for making bright and clear color effects where as ;MNE A;yan& magenta& yellow and blackB color is commonly used in graphic designing ha'ing fade shades. Mostly ;MNE color scheme is used for off)set printing.

''

$late Makin,: 1. he artwork is transformed to negati'e film either by imaging a digital file through an image setter& or by shooting reflecti'e artwork with a copy camera. A print)out on the butter)paper from the printer can be a substitute for negati'e film but the negati'e film is more clear and better than the print)out. 9rint)out is used in low %uality jobs. 1. he design which is to be printed is attached to the aluminum plate Aha'ing a special chemical coating on itB in the shape of paper or negati'e film. he design is pasted to the plate e#actly in the way we want it be printed on the press sheet. $. he aluminum plate with design pasted on it is e#posed to high light which weakens the chemical coating on the plate where there is no design. 4. After the design is burned onto the plate& the plate is washed in the de'eloping chemical. his de'eloped plate is wrapped around the press cylinder. It will be the duty of the graphic designer to de'elop the plates. +uttin,: Before the printing starts the paper to be printed is cut according to the re%uirement of the job. he edges of the paper are made smooth to make the paper pass through the printing press easily. It will be the duty of the printing machine man to cut the paper on the cutting machine before starting printing.

+uttin, mac ine

'*

$rintin,: 9rinting co'ers the transfer of an image to paper. /ffset lithography is based upon the principleC 5 he ink and water do not mi#.6

Mac ine#man an% a elper operatin, Rota printin, press he paper is fed through the press from a pile of paper already cut to the si-e of the machine. /ffset printing presses print at a high speed. Hhen a printing plate is made& the printing image is ink)recepti'e and water)repellent& while the non)printing areas are water)recepti'e and ink)repellent. he ink is distributed to the plates through a series of rollers. he reason why the whole plate not catches ink is that ink is oil)based substance and the places on the plate where there is no design ha'e porous surface so it absorbs water. *irstly the plate passes through the water rollers the porous surface on the plate catches water and the design due to the presence of chemical on it does not absorb water and when the plate mo'es towards the ink rollers the design catches ink and the other portion of the plate remains clear. he rollers distribute the ink from the ink tray onto the plates. he image area of the plates picks up ink from the ink rollers. he plate then transfers its image to a rubber blanket that in turn transfers the image to paper. he plate itself does not actually touch the paper. All of this occurs at a high speed. :uring the process the machine man checks the blending of inks to maintain the color control. 9rint %uality is checked fre%uently by the press operator. If the order is for more than 1 color then the speed of '.

printing for the second color is slow as the machine)man has to adjust the plate and machine again an again. Also after the competition of first color printing the ink rollers are unscrewed and washed with chemicals to wash away the first color to make it ready for the second color. his can take up to half an hour. :amination: After printing some jobs re%uire lamination of plastic sheet. his is done on a lamination machine in which glue is applied on the upper surface on the printed paper and then passed between two rolls along with the plastic sheet and so the paper and plastic are joined together. >amination sheet is applied to protect the printed paper and also for shine of the printed paper.

:amination Mac ine /ften a 'arnish named silicate is used as a substitute of lamination. It is a type of glue applied on the surface of the printed paper but it is not as shinny and protecti'e as is the plastic sheet laminated on the paper. Oarnish is used on the jobs re%uiring low cost

'/

or low %uality. he process of 'arnishing is same like printing but ink is replaced by 'arnish. 4ie#+uttin,: In this stage the printed paper is cut to the re%uired shape. (ome jobs re%uire die) cutting machine like it is used in making bo#es. :ifferent shapes of dies are used according to the re%uirement of the order to cut the printed paper in different shapes. A special cutting machine is used for die)cutting and it is a 'ery careful work as any carelessness can cause serious losses in the shape of loss of figure of the worker. After die)cutting the e#tra pieces remaining with the paper are remo'ed and the finished product is packed and deli'ered.

" elper operatin, 4ie#cuttin, mac ine

..'

Human Resource Re<uirements:

he project is machine oriented but skilled labor is important for success of the business. (killed machine man is re%uired to operate the machine efficiently and effecti'ely. (kill of machine man will result in lower wastage of paper and ink& lower maintenance cost of machines and also longer life of machines. his will enhance %uality of product and timely deli'ery of order and hence& help in creating a good image among customers.

'0

In >ahore& there is an institution named 9oly

echni%ue Institute for 9rinting and

,raphic Arts affiliated with 9unjab Board of echnical +ducation engaged solely in 4escription Ba,es per 4ay ?Rs.A ,raphic :esigner 1.. Machine Man 1.. 8elper 1!..)1... monthly pro'iding education and training in the field of printing& which is producing %ualified diploma holders with sound theoretical as well as practical knowledge. 7umber of workers re%uired is gi'en belowC he current salary structure in the market is based on daily wages which areC

But at *riends +nterprises all the employees will be recruited on permanent bases and pay structure will be based on monthly salary. he reason for paying the workers more than industry standards is that they will work in a single shift of 11 hours with a lunch break for 1 hour starting from 11C.. 9.M. According to market standards a graphic designer and a machine)man gets about 0s. !1.. but at *riends +nterprises machine man will get more as he will be ha'ing more work load than the graphic designer. Responsi(ilities of 7rap ic 4esi,ner: 4escription ,raphic :esigner Machine Man 8elper (ales)man -otal :a(or +ost 8um(er 1 1 ! 1 Salary>Mont Rs. 4&... 3&... 1&!.. 3&... Salary> "nnual Rs. 34&... 191&... 1!.&... 92&... !&11 &...

he graphic designer which is working on daily wages bases will be made a permanent employee of *riends +nterprises and in this way the resources will be '1

shared. he responsibilities of graphic designer will be to design& make positi'es and make plates. 8e will also be responsible for block making for fle#o printing. In this way he will be used efficiently& reducing the cost of employment. By ha'ing a permanent graphic designer the customer will get all the printing solutions under one roof. (o it will help in earning strong customer trust and good)will. Responsi(ilities of Mac ine Men: he responsibilities of machine men will start with cutting the paper to the re%uired si-e& setting the printing machine& die)cutting if re%uired by the order and packing. he machine men will be working for 11 hours. he helpers will be helping and assisting their masters. In the industry due to no back ward or forward integration at e'ery machine there is a worker and a helper to operate it. *or e#ample a cutting machine man is always busy cutting paper to its si-e and a die)cutting machine man is always busy with his machine. 8ere at *riends +nterprises due to fully integration of printing operation we will be able to get more work done by lesser employees by shifting them with in the machines. *or e#ample while the machine)man is setting the plate on the printing machine one helper can cut the paper to the re%uired si-e. Also during printing one helper can set the lamination machine. And while the helpers are washing the rollers for the remo'al of ink the machine man can laminate the paper which is already printed. In this way we can sa'e the cost of e#tra employees and remain profitable because in the industry a machine)man is also the owner of the press and so he sa'es the cost of an employee as he him)self is working. But this gi'es him a disad'antage in the shape of loss of sales because while he is working on machine he cannot go to factories for getting orders. 8e e'en then gets ad'antage because he is sitting in the market and some customers definitely come to him too. employing less labor than pre'ailing industry standards. o cop this situation we will be hiring a sales)man to co'er the factories and also we are

'2

Responsi(ilities of Sales#man: *or paper printing a sales)man is compulsory. :ue to poor location this becomes of e'en more importance to ha'e a good sales)man who can get reasonable orders for *riends +nterprises for smooth production. he sales)man should ha'e some e#perience in printing industry as he will going to other factories for orders. Also the sales)man should ha'e good communication skills. 8is responsibility will be to 'isit factories to get order and reco'ery of payments from the customers. 8e will be pro'ided a motor)bike to go to the factories. A bike is already a'ailable for factory works. here is no need for separate security guard or peon as they are already an employee of *riends +nterprises and so this will sa'e us reasonable costs. Also due to in)house work)shop there will be no problem of maintenance for the printing press. here is no need for any super'isor to look after the employees as the press will be set)up under the management of *riends +nterprises. Mr. Amjad and Mr. Ajmal will be super'ising the press operations.

..*

Raw Material:

Imported as well as local paper and board is being used by the industry. Imported paper is normally used in annual reports& brochures& catalogues& prospectus and 'isiting cards etc. Imported paper is readily a'ailable in local markets. Mostly& the business is done on just in time A@I B concept due to readily a'ailability of the raw material& but as *riends +nterprises is located at distance from the paper stores it is recommended that some amount of raw material in'entory is maintained. As far as the local paper is concerned it can be purchased from the local paper stores. As it is a job order production we will re%uire customi-ed paper for each order& reducing the %uantity of paper ordered. (o we will not be able to buy directly from the paper and board mills as the mills sell only through their distributors which buy from them in bulk %uantities like 1... rims of a specific si-e and weight of paper. he local '3

paper stores purchase the rims from the distributors in %uantity like !. rims of a specific si-e and weight of paper. A person running a printing press needs at the most 1. rims of a specific si-e of paper so he can not by)pass local paper stores and distributor and buy directly from the paper mill. *riends +nterprises will not be charging any additional cost for pro'iding paper from its own. It depends upon the customers whether they want to bring the paper with them or purchase it from the one who is printing them. (o *riends +nterprises will be charging only the cost it will be bearing to bring the paper to the factory. A list of raw)materials is gi'en on the ne#t pageC

...

Mac ine Re<uirements:

*riends +nterprises is already using *le#ography and ,ra'ure printing machines and for this paper printing press there are few options a'ailableC

Mac ine 0ota /ff)set printing machine (olna /ff)set printing machine 0oland /ff)set printing machine Melli /ff)set printing machine 0otary printing machine

$rintin, area 11 # 13 ma#imum 13 # 1$ ma#imum 1. # $. ma#imum $. # 4. ma#imum $. # 4. and abo'e

$rice ?Rs.A $..&... 3..&... 1&2..&... $&!..&... 1..&...&...

"vaila(ility +ngland Made 0econditioned ,ermany Made 0econditioned +ngland Made 0econditioned +ngland Made 0econditioned +ngland Made (econd)8and

*or the type of customers *riends +nterprises has and the demand fa'ors the purchase of (olna /ff)set printing machine and 0ota printing machine. Another reason for not going for bigger machines is that it will increase the cost of production in the shape of *0

more usage of inks& electricity& costly labor and most important increase in capital re%uired to start the 'enture. According to the customer sur'ey results the order si-e will be mostly of 1!.. sheets per month so we can not purchase too high speed machine which cost a lot so that we sit idle and wait for the orders after printing a job. he trend in the printing industry is that people buy used machinery from the printing market. If some)one is going out of the business he will sell it to the other people in the industry. (o the machines mo'e with in the market after an a'erage of $ years. A good machine)man can increase the useful life of the machine from 3 to 11 years. If the machine is roughly operated it will wear)out rapidly. he price of the machine depends upon its condition and printing results. A good)condition 0ota and (olna printing machine can be purchased at a price of 0s.$..& ... and 0s. 3..&... respecti'ely.

Solna off#set printin, mac ine /ther machines re%uired are all locally made and can be bought first)hand from the manufacturers at the following ratesC 4escription ;utting Machine ;utting Machine :ie)cutting Machine >amination Machine >amination Machine +#pose Machine 6seful area $4 inches $2 inches 11 # 13 inches 1! inches $1 inches $2 # 43 $rice ?Rs.A 3.&... 92&... 1!.&... $.&... $3&4.. !.&... *1

He will purchase one cutting machine $2 inches& one die)cutting machine and one lamination machine $1 inches and our total cost of machinery will beC

Mac ine 0ota /ff)set printing machine (olna /ff)set printing machine ;utting Machine :ie)cutting Machine >amination Machine +#pose Machine -otal +ost of Mac inery

+ost of Mac ine ?Rs.A $..&... 3..&... 92&... 1!.&... $3&4.. !.&... 1C.*.C.00

../

&uture Marketin, $lan:

$ro%ucts:
he products *riends +nterprises will offer to its customers ha'e been discussed abo'e. hese products will be related to packaging and promotion and the products will co'er all the needs of a factory manufacturing home)appliances like washing) machine& fans& gas or electric o'en& consumer goods like sweets& nimko& imli& toffee& ser'ices like hotel& restaurant etc. *'

$rice:
he pricing structure will be good %uality product at reasonable price. At the start of the operations we will be de'eloping a market and attracting customers so we will not be able to charge high price for our products. He will be charging at less than the market rates.

$romotions:
At the start of the printing press a letter will be sent to all the customers of *riends +nterprises who has been dealing with *.+. In this letter we will tell the customers about the new facility a'ailable for them. A sample letter is shown in e#hibit no. A2B. *riends +nterprises will distribute free 7ew Near calendars at the start of e'ery year as well as 0ama-an calendars in the holy month of 0ama-an ha'ing a portion fi#ed for ad'ertisement of *riends +nterprises. A small mono of
0//#.'.*020

*riends +nterprises along with the phone number will be printed on the paper. his will be a constant source of ad'ertisement for *riends +nterprises. Also ! " discounts will be gi'en on sales.

**

/.0 &inancial "nalysis:

o start the proposed paper printing press we re%uire 0s. 1.! Million which will co'er all the cost of machinery and one month in'entory. done for three years starting from 1..2. o check whether *riends +nterprises is in a good financial position to go for this in'estment income statement and balance sheet of the current business of *riends +nterprises were made which can been seen in e#hibit no. A4B < A3B. here were no proper accounts so these statements were de'eloped from daily cash book. :ue to limitations regarding access to the re%uired documents these statements are factitious. he financial analysis has been

/.1

Important "ssumptions:

he important assumptions which ha'e been used to forecast the financial statements are as followsC 1. he con'enience sampling techni%ue has been used for customer=s sur'ey. 1. +ach order si-e will be of 1!.. pieces of paper. $. At the start of operations we will get !. orders in the first month. 4. /rders per month will grow by 4 each month for the first year. !. 9aper will not be taken into in'entory because of the 'ariations in si-es& weights& types and brands. 2. a# rate will be $! " for three years starting from 1..2. *.

4. Accounts payable and recei'ables will be accommodated for 1! days from sales. 3. 7o land or building will be purchased as the new plant will be setup in the e#isting building of *riends +nterprises. 0ent of 0s. 1!... per month will be paid. 9. he management of the *riends +nterprises will be managing this new 'enture. operations. 11. 9ositi'e and die)making operations will be out)sourced. 11. Horking hours will be 11 hours including 1 hour of lunch break. 1$. 1.. (ales will grow by 11" in the second year and by 13" in the third year of

/.'

Market $rice ! +ost "nalysis:

o make the future financial projections we first made market and cost analysis. *or this purpose market prices of all the products and processes used in the printing of paper were taken and sales were calculated by multiplying it with number of orders. 4istri(ution of Or%ers: he distribution of orders among 0ota and (olna printing machines is shown in e#hibit no. A9B. 0eason why (olna printing will get !2 " of the orders is that most of the packaging material is of bigger si-e and so re%uire (olna press for printing. 2! " of the orders will be of 4 color print. he reason is that most of the packaging material is printed in 4 colors to make the packaging more attracti'e as it is a major contributor in the sale of a product. he market prices for 0ota and (olna printing according to the distribution of orders are shown in e#hibit no. A1.B < A11B. he month)wise sales for the twel'e months of 1..2 ha'e been calculated by increasing 4 orders per month which is e#pected to come e'ery month. he total e#pected sales for 1..2 are shown in e#hibit no. A11B. */

+ost of 7oo%s: he cost of goods to be produced was calculated after market sur'ey about cost of goods sold. he cost of goods for the 11 months of 1..2 is shown in e#hibit no. A1$B and notes to cost of goods are shown in e#hibit no. A14B. $ro%uction +apacity: It is 'ery important to calculate the plant capacity and time re%uired to complete an order as it helps in scheduling the daily operations and making go or no go decision. he time re%uired to complete !. orders is 1.$ hours where as the proposed printing press will ha'e the capacity to accommodate 1$9 orders assuming that order si-e remains 1!.. pieces per order. he calculations are shown in e#hibit no. A1!B. $ro)ecte% $rofit ! :oss: After knowing the market prices& cost of goods and plant capacity we made forecasted profit < loss account for paper printing which can be seen in e#hibit no. A12B. Hhere as key figures are shown below in the shape of graphs.

*0

$ro )e c t e % +.7.S .
2 .0 .
R s . In Mi lli o n

0 .0 2 / .* 3

'000

'001

'002

$ro )e c t e % 7ro s s $ro fi t

R s . In Mi ll io n
* .* 0 ' .1 0 ' .' 3

'000

'001

'002

Rs. In Million

$ro)ecte% Retaine% Earnin,s

1.11

0.12

0.23

'000

'001

'002

$ ro)e c t e % 8e t $ rofit
Rs . In Mi llio n

0 .3 0

1 .1 0

1 .. 0
*1

'000

'001

'002

he comparati'e sales and costs are shown in the graph below.

+o m parit iv e S ale s ! +os t s
S al e s

/ C1 2 ' Rs . In - o u s a n %s * C/ . 0 ' C2 1 0 . C* 1 3 ' C1 3 . 10' 0 0 /0 ' 02 101 /0 * 111 '.' *'0 .0/ 8o. Of Or%e rs S al e s Da ri a(le +os t &ix e % +o s t .31 /3 0 10' 21/ 3*/ 1 C0 0 ' 1 C/0 ' 10' &.+.

D.+.

/..

$ro)ecte% ;alance S eet:

he projected balance sheet can be seen in e#hibit no. A14B. he accounts payable and accounts recei'able will be e%ual to sales of 1! days. here will no purchase of land and building as the e#isting building will be used. he paid)up capital for 1..2 will be 0s. 1.! million. 7ew machinery will be purchased in the second and third year of operations. he capital will not be increased due to these purchases. In fact these *2 machines will be purchased from the retained earnings.

/./

$ro)ecte% +as &low:

he projected cash flow statement is shown in the e#hibit no. A13B. he statement does not show cash flow for the first year as there is no historic data a'ailable to compare with. 7et cash flows for 1..4 is 0s. 2$2&$43 and for 1..3 the amount is 0s. $12&!42. :ecrease in net cash flow is because of purchase of new machinery in 1..3. he net worth and fi#ed asset reconciliation statements can be in e#hibit no. A19B. /.0

;reak#even "nalysis:

Break)e'en is a tool used by the managers to know at)least how much the factory must produce to reach a point where there is no profit no loss. *rom this point on each unit produce will add to the profit of the company. Break)e'en analysis for *riends +nterprises is defined below in the shape of chart.

;re ak #e v e n "n aly s is

Sal es

0C110 /C12'

-. +.

Rs . In - o u s a n %s

.C/' 0 *C/.0 *C0 ** ' C2 1 0 *C.30

+.M . 1 C* 0 .

1C111

1 /'
10 '

10'

&.+.

112
0 /0 / 1 1 ' 0

/. .
1 .0 /3

10'
0 / / 3*
Sal e s

'

21

10

11

'.

*'

.3

10

8o . Of Or%e rs
&i x e % +o s t +o n t ri (u t i o n Mar,i n -o t al +o s t

he calculations of break)e'en are shown in e#hibit no. AB *3

1C

00

'

/.1
AB.

;usiness Ratios:

he important business ratios ha'e been calculated and can be seen in the e#hibit no.

+o n t ri (u t i o n Mar,i n De rs u s &i x e % +o s t
+.M .

Rs . In - o u s a n %s

1 C* 0 .

1 C0 ' 1 1 /' 10' 112 12' ' 03 *21 /. . 10' &.+.

*'

10

/0

'

'

.0

21

10

.3

10

11

'.

*'

3*

/3

8o . Of Or%e rs
&i x e % +o s t +o n t ri (u t i o n Mar,i n

Ex i(it 8o. ?1A

.0

1C

00

'

M"+HI8ES +6RRE8-:9 ;EI87 6SE4 "- &RIE84S E8-ER$RISES

&ilm Extractor Mac ine

.#+olor &lexo $rintin, Mac ine

0#+olor 7ravure $rintin, Mac ine

;ottom#seal +uttin, Mac ine

Slittin, Mac ine

$unc er Mac ine

Han% sealin, Mac ine

Ex i(it 8o. ?'A

+6RRE8- $:"8- :"9#O6- O& &RIE84S E8-ER$RISES .1

Ex i(it 8o. ?*A

- is is a <uestionnaire %esi,ne% to know a(out t e %eman% of paper printin, amon, t e current customers of &rien%s Enterprises. It will
.'

take only * minutes of your precious time to fill t is <uestionnaire. Return after fillin, it to t e one w o ,ave it to you.

-ick t e one w ic you feel is t e (est answer.

1. :o you use paper in your related businessP
Nes 7o

'. In what amount do you use paper in a monthP

Below !.. pieces Below 1!.. pieces Below 1!.. pieces Abo'e 1!.. pieces

*. Hhich type of paper do you useP

9aper Board

.. :o you use printed paperP

Nes 7o (If No then do not answer the rest)

/. In what amount do you use printed paper in a monthP

Below !.. pieces Below 1!.. pieces Below 1!.. pieces Abo'e 1!.. pieces

0. In which si-e do you get your paper printedP

1$ J 14 inches ma#imum 13 J 1$ inches ma#imum .*

1$ J $2 inches ma#imum

1. 8ow do you place your orderP

Oisit elephone

2. Hhat do you preferP

>ow price with low %uality printing 8igh price with high %uality printing A'erage price with a'erage %uality printing

3. Hhen do you place an order for printingP

>ess than a week 1 week before stock ends 1 weeks before stock ends More than 1 weeks

10. 8ow do make paymentsP

/n ;ash /n 1! days credit More than 1! days credit

11. Hhat is your business typeP

*ood manufacturing (er'ices Industrial products 8ome accessories

Ex i(it 8o. ?.A

&I84I87S O& -HE S6RDE9 ..

1. :o you use paper in your related businessP 9es '2 8o '. In what amount do you use paper in a monthP
;elow /00 pieces ;elow '/00 pieces

'

0 '0

;elow 1/00 pieces "(ove '/00 pieces

' 0

*. Hhich type of paper do you useP

$aper 10 ;oar%

1'

.. :o you use printed paperP 9es '0

8o

/. In what amount do you use printed paper in a monthP

;elow /00 pieces ;elow '/00 pieces

0 '0

;elow 1/00 pieces "(ove '/00 pieces

1 /

0. In which si-e do you get your paper printedP

1* E 11 inc es maximum '* E *0 inc es maximum

12 E '* inc es maximum

'1

'

1. 8ow do you place your orderP

Disit 10 -elep one 10

./

2. Hhat do you preferP

:ow price > low <uality printin, "vera,e price > avera,e <uality 0 Hi, price > i, <uality 1. 1'

3. Hhen do you place an order for printingP

:ess t an a week ' weeks (efore stock en%s 2 . 1 week (efore stock en%s More t an ' weeks 1' '

10. 8ow do make paymentsP

On +as More t an 1/ %ays cre%it 2 On 1/ %ays cre%it . 1.

11. Hhat is your business typeP

&oo% manufacturin, In%ustrial pro%ucts 2 . Services Home accessories ' 1'

Ex i(it 8o. ?/A

:ist of Raw#materials:

.0

Ex i(it 8o. ?0A 4escription ,lue *lying 9aper 14 # 14 *lying 9aper 1. # $. *lying 9aper 1$ # $2 *lying 9aper 14 # 14 *lying 9aper 1. # $. *lying 9aper 1$ # $2 Bo# Board 14 # 14 Bo# Board 1. # $. Bo# Board 1$ # $2 Art ;ard 1$ # $2 ;olor 9aper 14 # 14 ;olor paper 1. # $. Art 9aper 9late 24!#!1. # .1. mm Ink Nellow Ink Magenta Ink ;yan Ink Black Sample :etter. .1 4.. gm 4.. gm 4.. gm 4.. gm (ingle ;ontainer 2.. Bei, t !. Eg 23 gm 23 gm 23 gm 3. gm 3. gm 3.gm $.. gm $.. gm $.. gm 1!. gm 2. gm 2. gm 3. gm Fuantity :rum Aper rimBQ!.. Aper rimBQ!.. Aper rimBQ!.. Aper rimBQ!.. Aper rimBQ!.. Aper rimBQ!.. Aper rimBQ1.. Aper rimBQ1.. Aper rimBQ1.. Aper rimBQ1.. Aper rimBQ1.. Aper rimBQ1.. Aper rimBQ1.. 1 unit $rice ?Rs.A 44.. 2.. 3.. 1$.. 9.. 11.. 12.. 4!. !.. 3.. 11.. !.. 2.. 3.. 1.. 1.. "vaila(ility >ocal >ocal >ocal >ocal >ocal >ocal >ocal >ocal >ocal >ocal ImportedG>oc al >ocal >ocal Imported Imported Imported from ;hina Imported from ,ermany

&RIE84S E8-ER$RISES
Manufacturers of Printed paper and plastic bags 1st Ganuary '000

+ ina ;akers
Main Market (atellite own 9hC .!!$)1!22!!)1!4449 Su()ect: Information a(out new paper printin, press at &.E. :ear Mr. Ashraf He are feeling proud to tell you that we ha'e mo'ed one step closer in ser'ing you. He are thankful to ,od almighty that has always helped us ser'e you better and now helped us in building an e'en stronger relation with your company. He ha'e just setup new paper printing press which is a fully integrated unit ha'ing all the things a customer can demand. Eeeping in 'iew the demand of our 'aluable customers like you we ha'e established this press to gi'e you rid of all the pains you had to take to get printed paper for your company. 7ow your printed paper is one call away from you. Nou need to just tell us your specifications of the printed paper you want for once. Nou can trust us as you ha'e trusted us for the last many years. And we ensure you of best %uality and reasonable rates according to your re%uirements. He are hopeful to hear from you soon. ruly (incere Mr. "m)a% ; atti Managing :irector *riends +nterprises Race#+ourse Roa% &ari% -own 7u)ranwala $ : 0//.#'.*020 Mo(ile: 0*00#20.0120 &ax: 03'#//.#'1//'2

Ex i(it 8o. ?1A

.2

&rien%s Enterprises
$rofit ! :oss "ccount &or t e 9ear En%e% *0#0#'00/ Rs. 19&!11&329 12&42!&$49 *C0/0C/'0 1$1&... 3$&293 11!&293 1&34.&311 1!.&21! 1&.$2&$9$ 1C3//C0/. 11&999 1C3.*C0// 9&1!4&142 11C131C'01 +ommon Si5e 34" 10@ 1" ..4" 1!" 1" !" 10@ ..1" 10@

(ales ;ost /f (ales 7ross $rofit Operatin, Expenses Administration +#penses (elling +#penses otal Admin < (elling +#pense 7et /perating 9rofit /ther Income /ther +#pense E;Ia# 8et $rofit Accumulated 9rofit BGf 7et 0etained +arnings

Ex i(it 8o. ?2A

.3

&rien%s Enterprises
;alance S eet &or - e 9ear En%e% *0t Gune '00/ "ssets Rs.
$&!..&.. . A1&43$&41 1B 11&194&1. 1 11&11$&4 39

:ia(ilities +apital ;apital :rawings 9rofits

Rs.

&ixe% "ssets >and Building *urniture And fi#ture Oehicles Machinery +urrent "ssets

Rs.
1&!..&... 1&$!9&194 4$&344 43!&9.2 1&$..&...

+urrent :ia(ilities rade ;reditors

$&1!.&2 !.

(tocks rade :ebtors Ad'ances o +mployees /ther Ad'ances (uspense 9ayments ;ash At Bank ;ash In 8and

1&149&431 4&1!.&.1. !!&2.. $1&141 1&449&314 4.4&1!1 141&113

1/C.0.C.* 3

1/C.0.C.*3

/0

Ex i(it 8o. ?3A

/1

-otal Or%ers &or &irst Mont

/0

Over "ll +olor#Bise 4istri(ution Of Or%ers 1 ;olor 1!" 3 ' ;olor 1." ! * ;olor 1." ! . ;olor 2!" $1

Mac ine#Bise 4istri(ution Of Or%ers Solna Or%ers 1!" 1!" 1!" 4!" Rota Or%ers 1 ;olor 4!" 1 ;olor 4!" $ ;olor 4!" 4 ;olor 1!"

1 ;olor 1 ;olor $ ;olor 4 ;olor

1 1 1 14 13 13I11Q/0

otal 7ran% -otal Rota Or%ers Solna Or%ers

2 4 4 3 1 1

..@ /0@

/'

Ex i(it 8o. ?10A

/*

Ex i(it 8o. ?11A Market $rice &or Rota $rintin,

1 +olor Rota Or%ers 0 Or%ers $er Or%er Rs. :esigning 1!. 9ositi'e A1 /rdersB 112 9late Making !. 9rinting $.. >amination A$ /rdersB 1!.. Oarnish A$ /rdersB 1!. :ie making 1!. :ie)cutting 1!. -otal '100 ' +olor Rota Or%ers . Or%ers $er Or%er Rs. :esigning 1!. 9ositi'e A1 /rdersB 4$1 9late Making 1.. 9rinting 2.. >amination A$ /rdersB 1!.. OarnishA1 /rderB :ie making :ie)cutting -otal 1!. 1!. 1!. ***'

-otal Rs. 9.. 4$1 $.. 13.. 4!.. 4!. 9.. 9.. 10.2 '

-otal Rs. 2.. 324 4.. 14.. 4!.. 1!. 2.. 2.. 10'1.

* +olor Rota Or%ers . Or%ers $er Or%er -otal Rs. Rs. :esigning 1!. 1... 9ositi'e A$ /rdersB 243 1944 9late Making 1!. 2.. 9rinting 9.. $2.. >amination A$ /rdersB 1!.. 4!.. OarnishA1 /rderB 1!. 1!. :ie making 1!. 2.. :ie)cutting 1!. 2.. 1*03 -otal *332 . -otal $rice I color 1 ;olor $ ;olor 4 ;olor -otal Rota Rs. 1.431 1.114 1$.94 $$134 0031.

. +olor Rota Or%ers 2 Or%ers $er Or%er Rs. :esigning $.. 9ositi'e A2 /rdersB 324 9late Making 1.. 9rinting 11.. >amination A3 /rdersB 1!.. OarnishA. /rderB 1!. :ie making 1!. :ie)cutting 1!. -otal .01.

-otal Rs. 14.. !134 12.. 92.. 11... . 11.. 11.. **12.

/.

Market $rice &or Solna $rintin,

1 +olor Solna Or%ers ' Or%ers $er Or%er Rs. :esigning 1!. 9ositi'e A1 /rdersB 414 9late Making 1!. 9rinting 2.. >aminationA1 /rderB 13!. OarnishA1 /rderB 1!. :ie making !.. :ie)cutting $.. -otal /*1. * +olor Solna Or%ers 1 Or%ers $er Or%er Rs. :esigning $!. 9ositi'e A1 /rdersB 1141 9late Making 4!. 9rinting 13.. >aminationA1 /rderB 13!. OarnishA. /rderB 1!. :ie making !.. :ie)cutting $.. -otal -otal Solna $rice I color 1 ;olor $ ;olor 4 ;olor -otal 11.' Rs. 4114 2113 4491 194$1 . '1/1/ . ' +olor Solna Or%ers 1 Or%er $er Or%er Rs. :esigning 1!. 9ositi'e A1 /rdersB 313 9late Making $.. 9rinting 11.. >aminationA1 /rderB 13!. OarnishA. /rderB 1!. :ie making !.. :ie)cutting $.. -otal 0.12 . +olor Solna Or%ers '. Or%ers $er Or%er Rs. :esigning !.. 9ositi'e A1. /rdersB 12!2 9late Making 2.. 9rinting 14.. >amination A1. /rderB 13!. Oarnish A4 /rderB 1!. :ie making !.. :ie)cutting $.. -otal 30/0

-otal Rs. !.. 414 $.. 11.. 13!. 1!. 1... 2.. 111.

-otal Rs. 1!. 313 $.. 11.. 13!. . !.. $.. 0''2

-otal Rs. $!. 1141 4!. 13.. 13!. . !.. $.. 1.3'

-otal Rs. 11... $$11. 144.. !42.. !4... 1... 11... 41.. 13.*' 0

//

Ex i(it 8o. ?1'A

-otal Rota an% Solna $rice Rs. Rs. Rota Solna 1.431 4114 1.114 2113 1$.94 4491 194$1 $$134 . '1/1/ 0031. .

I color 1 ;olor $ ;olor 4 ;olor -otal

Rs. -otal 14!92 12441 1.!32 114!.4 '2'1'2

Mont ly Sales &or '000 Mont s 8o. of Or%ers Sales in Rs. Gune 2/ Guly 3' Ganuary /0 131113 "u,. 33 4.!92 . &e(ruary /1 $11212 Sep. 100 3.449! Oct. 11* 91442 2 Marc 0. $222!4 8ov. 1'0 "pril 11 41493! 4ec. 1'1 May 12 442!.$ -otal 1C00 ' 1C03*C2. '

!4$11$ 21912$

1.4!91 1 1191$$3

/0

Ex i(it 8o. ?1*A

Guly 7o. /f /rders (alaries Ink 0epairs +lectricity 9late >amination *ilm Oarnish :ie Making 9ositi'e -otal

&orecaste% +ost of 7oo%s Sol%

"u,ust !4 $!&! .. 3!&4 4$ $&. .. 9&1 1. 19&4 49 44&3 43 1&3 !. 19&4 11 !.&1 91 $.$&4 !4 Septem(er 24 $!&! .. 9!&9 $2 $&. .. 1.&1 4. 11&1 .3 34&4 .3 $&1 .. 11&1 44 !2&$ !2 $$!&9 91 Octo(er 4 1 $!&!. . 1.2&41 9 $&.. . 11&$2 . 14&2$ 4 92&92 3 $&!! . 14&!2 2 21&!1 . $23&!$ . 8ovem(er 43 $!&! .. 112&9 11 $&. .. 11&4 3. 14&. 22 1.2&! 19 $&9 .. 12&9 33 23&2 34 4.1&. 23 4ecem(er 3! $!& !.. 114& 41! $& ... 1$& 2.. 19& 49! 112& .39 4& 1!. 19& 41. 44& 343 4$$& 2.2 ! . $!&!. . 44&9! . $&.. . 3&.. . 14&$! . 23&13 3 1&!. . 14&$. . 44&.1 3 14.&91 2

Ganuary 9 1 $!&!. . 1$4&9. 3 $&.. . 14&41 . $1&91 4 11!&24 9 4&2. . $1&3$ 1 31&.1 1

&e(ruary 9 9 $!&!. . 143&4. 1 $&.. . 1!&34 . $4&$! $ 1$!&1. 9 4&9! . $4&1! 4 34&14 !

Marc 1. 2 $!&!. . 1!3&39 4 $&.. . 12&92 . $2&43 1 144&44 . !&$. . $2&24 2 9$&$$ 9

"pril 11 $ $!&!. . 129&$3 4 $&.. . 13&.3 . $9&11 1 1!4&$$ . !&2! . $9&.9 3 99&!. $

May 11 . $!&!. . 149&33 . $&.. . 19&1. . 41&24 . 12$&39 . 2&.. . 41&!1 . 1.!&22 4

Gune 11 4 $!&!. . 19.&$4 $ $&.. . 1.&$1 . 44&.2 9 14$&4! . 2&$! . 4$&94 1 111&3$ 1

-otal 1C00 ' .'0C000 1C/31C3*2 *0C000 103C3'0 *02C/1. 1C./0C.'1 /*C100 *01C./' 3*/C1//

/1

422&14 !

493&23 $

!$1&11 1

!2$&4! 9

!92&19 4

213&3$ !

/C*32C/0/

Ex i(it 8o. ?1.A 8otes to t e +osts

?1ASalaries ,raphic :esigner A1B Machine Man A1B 8elper A!B -otal $er mont Salaries Rs. 4... 12... 11!.. *//00 ?'AElectricity 0ota (olna >amination :ie ;utting I ;utting 9late Making -otal ?.A$lates Rota 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal Solna 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal 7ran% -otal Of $lates Rs. 1... $... !.. 1!.. 1... 2000

?*AInk Rota Ink 1 ;olor 1 ;olor $ ;olor 4 ;olor Solna Ink 1 ;olor 1 ;olor $ ;olor 4 ;olor otal Ink ;artridges ;ost 9er Ink -otal Ink +ost

+artri%,es 14 $2 !4 144

Rs. $.. 4.. 2.. 2.. 1300 Rs. $.. $.. 4!. 144.. 1/./0 11*/0

9.! 9.! 14.1! 4!2 449.! 1.. 1.3/0

/2

?/A:amination &ilm Rota 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal Solna 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal 7ran% -otal ?1A 4ie Makin, Rota 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal Solna 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal 7ran% -otal $rice 4!.. 4!.. 4!.. 11... '//00 $rice 13!. 13!. 13!. !4... 0///0 310/0 +ost $$4! $$4! $$4! 9... 131'/ +ost 11$3 11$3 11$3 414!. .310* 02'22

?0ADarnis Rota 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal Solna 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal 7ran% -otal ?2A $ositive Rota 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal Solna 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal 7ran% -otal Rs. 4!. 1!. 1!. . 1'/0 Rs. 1!. . . 1... 1'/0 '/00

Rs. 9.. 2.. 2.. 11.. **00 Rs. 1... !.. !.. 11... 1.000 11*00

Rs. 4$1 324 1944 !134 2.'. Rs. 414 313 1141 $$11. */00. ..0'2

/3

?3A4ie +uttin, Rota 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal Solna 1 ;olor 1 ;olor $ ;olor 4 ;olor -otal 7ran% -otal Of 4ie +uttin, ?10A7lue ?1 4rumA Rs. 9.. 2.. 2.. 11.. **00 Rs. 2.. $.. $.. 41.. 2.00 11100 ..00

Ex i(it 8o. ?1/A

00

-ime -aken ;y /0 Or%ers

"ssume% Or%er Si5e '/00 pieces ' * +olor +olor Or%er Or%er 1... 1 1!.. 1.$ 1!.. 1 1!.. 1.4

Rota Machine speed AImpressionsG8r.B 7o. of orders 7o. of impressions 8ours consumed

1 +olor Or%er $... 1 !... 1.4

. +olor Or%er 11!. 14 2.... 43

-otal

13 4.... !1.2

Solna Machine speed AImpressionsG8r.B !... 7o. of orders 2 7o. of impressions 1!... 8ours consumed $ -otal ours consume% 8alf hour re%uired to start e'ery order 8et time consume% ?HoursA

1!.. 4 1.... 4

1... 4 1.... !

1!.. 3 1.... 1$.$ Q !. G 1

11 !!... 1!.$ 11.3 1! 10*

$ro%uction capacity
:aily working hours Horking days 8ours a'ailable for production ime consumed by one order A8oursB 8o. of or%ers w ic can (e complete% 11 12 132 Q1.$G!. Q1.1 H'20>'.1 H1*3

Ex i(it 8o. ?10A

01

&RIE84S E8-ER$RISES
&orecaste% $rofit ! :oss "ccount &or - e 9ear En%e% *1#4ec#00 8E- S":ES A! " :iscountB ;ost /f ,oods (old Administration& (elling < ,eneral +#pense :epreciation O$ER"-I87 $RO&Ia# ;urrent 9ayable 8E- I8+OME :i'idends Retaine% Earnin, &or - e 9ear 1C*03C1/0 !&$93&!.! 142&... *1#4ec#01 2C311C10* 2&231&142 142&... *1#4ec#02 11C.1*C303 3&249&132 142&...

142&14. 1C.22C.0/ !1.&941 301C.0* 13.&... 121C.0*

121&212 1C131C*11 219&.3. 1C102C'31 14!&... 23*C'31

119&194 'C'/3C.23 49.&311 1C.02C002 $!.&... 1C112C002

Ex i(it 8o. ?11A

0'

&RIE84S E8-ER$RISES
&orecaste% ;alance S eet &or - e 9ear En%e% *1#4ec#00 Rs. ;ash < Marketable (ecurities 0ecei'ables In'entory -O-": +6RRE8- "SSE-S 7et *i#ed Assets -O-": "SSE-S Accounts 9ayable -O-": :I";I:I-IES 9aid)up ;apital 0etained +arnings -O-": 8E- BOR-H -O-": :I";I:I-IES ! EF6I-9 4!.&139 199&24! 441&244 1C13'C0.' 1&$12&12. 'C/02C20' 111&$$9 ''1C**3 1&!..&... 434&42$ 'C'21C.0* 'C/02C20' *1#4ec#01 Rs. 1&.32&2$3 $2!&2.4 !44&9$3 'C000C120 1&4!4&!44 *C./.C1'. 14$&929 '1*C303 1&!..&... 1&23.&4!4 *C120C1/. *C./.C1'. *1#4ec#02 Rs. 1&41$&13$ 424&94$ 4.9&1$$ 'C/30C*23 1&.2$&2!. .C0/.C0*3 $!4&214 */.C011 1&!..&... 1&499&411 .C'33C.'' .C0/.C0*3

Ex i(it 8o. ?12A &RIE84S E8-ER$RISES

0*

&orecaste% +as 7eneration Statement &or - e 9ear En%e% *1#4ec#01 Rs. 1C131C*11 121&212 1C3/2C321 219&.3. 14!&... 1C0/.C301 *1#4ec#02 Rs. 'C'/3C.23 119&194 'C.22C12* 49.&311 $!.&... 1C*.1C30'

Operatin, $rofit "44: :epreciation Su(#-otal :ESS: a# 9ayment :i'idend 9ayment 7ROSS O$ER"-I87 &684S 7E8ER"-E4 :ESS: Increase ?4ecreaseA 0ecei'ables In'entory -O-": O$ER"-I87 8EE4S $:6S: Increase ?4ecreaseA Accounts 9ayable -O-": O$ER"-I87 SO6R+ES +H"87E I8 BORII87 +"$I-": 8et Operatin, +as 7enerate% :ESS: ;apital +#penditures -O-": 8O8#O$ER"-I87 8EE4S 8E- I8+RE"SE>?4E+RE"SEA I8 +"SH

2!&919 1.!&121 111C130

1.1&$29 121&19! '0*C00.

!1&2$. /'C0*0 112C//3 3*0C*.2 $..&... *00C000 0*0C*.2

3.&244 20C0.1 12*C010 1C10.C3.0 3$3&4.. 2*2C.00 *'0C/.0

Ex i(it 8o. ?13A 8et Bort Reconciliation

0.

O$E8I87 8E- BOR-H 9>M(C 7et income (ale /f +%uity -O-": "44I-IO8S >+((C :i'idends E84I87 8E- BOR-H

0 924&42$ 1&!..&... 'C.01C.0* 13.&... 'C'21C.0*

'C'21C.0* 1&123&191 . 1C102C'31 14!&... *C120C1/.

*C120C1/. 1&423&223 . 1C.02C002 $!.&... .C'33C.''

&ixe% "sset Reconciliation

*orecasted *1#4ec#00 Rs. . 1&421&4.. 142&14. 1&$12&12. 1&421&4.. 142&14. 1&$12&12. *orecasted *1#4ec#01 Rs. 1&$12&12. $..&... 121&212 1&4!4&!44 1&421&4.. $.4&3!2 1&4!4&!44 *orecasted *1#4ec#02 Rs. 1&4!4&!44 3$3&4.. 119&194 1&.2$&2!. 1&2..&3.. !$4&1!. 1&.2$&249

/9+7I7, 7+ *IJ+: A((+ ( 9>M(C *i#ed Assets Ac%uired >+((C :epreciation *or he 9eriod +7:I7, 7+ *IJ+: A((+ ( Machinery >+((C Accumulated :epreciation 7+ *IJ+: A((+ (

Ex i(it 8o. ?'1A IE9 R"-IOS

0/

&RIE84S E8-ER$RISES
$RO&I-";I:I-9 ?@A 7et IncomeG(ales 7et IncomeG7et Horth /perating 9rofitG(ales a#esG9rofit Before a# -6R8ODER E&&I+IE8+9 :ays 0ecei'able :ays In'entory A;,(B :ays 9ayable A;,(B :IF6I4I-9 ;urrent 0atio Ruick 0atio :EDER"7E otal >iabilitiesG7et HorthS >ong erm >iab.G7et HorthS otal >iabilitiesG otal Assets I8DES-ME8- I84I+"-ORS 7et IncomeG7et Horth :i'idendsG7et Income

1$.1 41.$ 1..4 $!..

1$.1 $2.4 1..1 $!..

11.9 $4.1 19.3 $!..

1! $. 1!

1! $. 1!

1! $. 1!

!.4 $.4

4.$ !.$

4.$ !.$

..1 ... 3.3"

..1 ... 4.9"

..1 ... 4.2"

41.$ 13.2

$2.4 1$.!

$4.1 1$.3

Ex i(it 8o. ?''A 8otes to t e "ccounts

8otes to t e mac inery account '000 '001 '002 00

Mac inery 0ota (olna ;utting :ie ;utting >amination 9late Making Machine Installation +#pense Maintenance /f 8all -otal Re%ucin, ;alance 4epreciation Met o% :epreciationAuseful >ife 1. NearsB "ccumulate% 4epreciation Mac inery "ccount after %epreciation

Rs $..&.. . 3..&.. . 92&.. . 1!.&.. . $3&4. . !.&.. . 1!&.. . $&.. . 1C.0'C.0 0

Rs $..&... ) ) ) ) ) ) ) 1C10'C.00

Rs ) 3..&... $3&4.. ) ) ) ) ) 'C000C200

'000 142&14 . 142&14 . 1C*10C10 0

'001 121&21 2 $.4&3! 2 1C./.C/. .

'002 119&19 4 !$4&1! . 'C00*C0/ 0

4ivi%en% Rate

13.&...

14!&...

$!.&...

Ex i(it 8o. ?'* A +ommon Si5e "nalysis

01

Ex i(it 8o. ?'. A -ime Series "nalysis

;ase#9ear ?$revious yearA

&rien%s Enterprises &rien%s Enterprises

$ro)ecte% $rofit ! :oss "ccount $ro)ecte% $rofit ! :oss "ccount &or - e 9ear En%e%J. &or - e 9ear En%e%J. '000 '000 Rs. Rs. 4&29$& '001 '001 Rs. Rs. 9&$32& '002 '002 Rs. Rs. 11&.14&4
.$ 100@ 11&.14&4 3&249&1 13" .$ 32 41" 3&249&1 *C*0/C/1 19" 32 2 13" *C*0/C/1 14" 2 92&. .. 1" 92&. 2..&4 ." .. $! !" 2..&4 13" $! 13.&. .. 13.&. 119&1 .. 94 119&1 94 1&1.2&. 1&1.2&. $. $. 1&1!9&4 1&1!9&4 33 49.&3 33 49.&3 11 11 1C.02C00 1C.02C00 1 $!.&. 1 $!.&. .. .. 1&113&2 1&113&2 24 24 1&499&4 1&499&4 11 11 1&221&. 1&221&. 11 11 1" ." 1" 41" 9" 11" 19" 12" 4" 12" 11" 12"

(ales

;ost /f good (old

;ost /f good (old 7ross $rofit

(ales

7ross $rofit Marketin, Expense

Marketin, Expense (elling +#pense (elling +#pense

341 100@ 434 100@ 4&29$&3 9&$32&42&231& 11" !&$93& 41 34 142 !.! 4." 41" !&$93&! 2&231&1 14" 'C'3/C* 'C10.C*1 .! 42 *1 $." 1 19" 'C'3/C** 'C10.C*1 13" 1 1 92& ... 92&. $34& .. 291 $34&2 91 13.& ... 13.&. 142& .. 14. 142&1 4. 3.2& 9$1 3.2&9 $1 1&433& 4.4 1&433&4 !1.& .4 941 !1.&9 41 301C. 0* 301C.0 13.&* ... 13.&. .. 434& 434&4 42$ 2$ 434& 434&4 42$ 2$ 1" !" 92& ... 1" 92&. 429& ." .. $14 !" 429&$ 11" 14 13.& ... 1" 13.&. 121& ." .. 212 1" 121&2 11" 12 9.2& 9.2&9 94.11" 1." 4. 1&494& 1&494&$ $4.11" 19" 4. 219& 219&. .3.11" 4" 3. 1C102C'3 111" 11" 1C102C'3 14!& 1 14!&. ... .. 39$& 39$&1 191 91 1&23.& 1&23.&4 4!4 !4 1&$3.& 1&$3.&4 4!4 !4

(ales :iscount (ales :iscount "%ministration Expenses

"%ministration Expenses 0ent 0ent

1" 1"

:epreciation
:epreciation

otal Admin < Marketing +#pense otal Admin < Marketing

+#pense

1." 19" 4"

E;IE;Ia# a# 8et 8et $rofit $rofit :i'idend :i'idend 0etained +arnings for the 0etained +arnings for the year year Accumulated 0etained Accumalated 0etained +arnings +arnings
7et 0etained +arnings 8et Retaine% Earnin,s

1$"

02

Return On "ssets

.H8et income>-otal "ssets '000 $9" '001 $4" '002 $1"

Return On E<uity

.H8et income>E<uity '000 24" '001 43" '002 93"

$ay#(ack perio% Initial Investment *;* 9ay)back period Return On Investment

Rs.1/00000 '000 . 1IA!332!1G242!4! B '001 911$4 9 Q '002 242!4! '.3

.H8et income>investment '000 '001 24" 43" 10@

'002 93"

+ost Of +apital

03

;i(lio,rap y: Information ,at erin, from net t rou, fallowin, we(#sites:

ttp:>>statpak.,ov.pk> www.pap,ai.com.pk> www.sme%a.or,.pk>

+ontacts:
Suppliers of papersC plates an% ink R"&&ISO8S ?$D-.A :IMI-E4
1st floor (ufi ;hamber& >ink Mc >eod 0oad& >ahore. 9h ? .41)41141.3& 41$1249

":#F"M"R $"$ERS
1)Akbari 0oad Anarkali& >ahore. 9h ? .41)4114921.

7R"$HO S+"8 S6$$:IES ?$D-.A :IMI-E4

Eashif ;entre& 1 nd *loor& !!)A& ;hamberlaine 0oad& >ahore. 9h ? .41)41$1!31& 4$!11...

M":II $"$ER M"R,anpat 0oad& >ahore. 9h ? .41)4$!$431& 4$11!!$.

":#";4 +OR$OR"-IO8
11)B& Hhab Arcade& M.A. @innah 0oad& Earachi. 9h ? .11)121191.& 111!$11.

10