the annual report

8/8/2019 The Annual Report

http://slidepdf.com/reader/full/the-annual-report 1/42

qwertyuiopasdfghjklzxcvbnmqwerty

opasdfghjklzxcvbnmqwertyuiopasdfg

klzxcvbnmqwertyuiopasdfghjklzxcvb

nmqwertyuiopasdfghjklzxcvbnmqwe

yuiopasdfghjklzxcvbnmqwertyuiopa

dfghjklzxcvbnmqwertyuiopasdfghjklz

vbnmqwertyuiopasdfghjklzxcvbnmq

wertyuiopasdfghjklzxcvbnmqwertyu

pasdfghjklzxcvbnmqwertyuiopasdfgh

klzxcvbnmqwertyuiopasdfghjklzxcvbmqwertyuiopasdfghjklzxcvbnmqwer

uiopasdfghjklzxcvbnmqwertyuiopasd

ghjklzxcvbnmqwertyuiopasdfghjklzxvbnmqwertyuiopasdfghjklzxcvbnmrt

uiopasdfghjklzxcvbnmqwertyuiopasd

ghjklzxcvbnmqwertyuiopasdfghjklzx

Natural

Fragrances

ANNUAL REPORT

FIRM 61



2 | P a g e

CONTENTS

1. FINANCIAL SUMMARY 3

2. LETTER TO SHAREHOLDERS 9

3. COMPANY OPERATIONS AND

SIGNIFICANT DEVELOPMENTS 13

4. FINANCIAL STATEMENT

AND TABLES 15

5. ORGANIZATION CHART

AND LEADERSHIP 22



3 | P a g e

1. FINANCIAL SUMMARY

10 11 12

9,661,036.63

13,845,192.00 14,556,888.31

Sales revenue

Sales revenue

10 11 12

2244926.14

2947833.99

2268428.24

Net income

Net income



4 | P a g e

0.0583 0.0555

0.2779

10 11 12

Debt to equity ratio

Debt to equity ratio

2.49

4.995.34

10 11 12

EPS

EPS



5 | P a g e

A1: NAFTA (North American Free Trade Area)

A2: EU (European Union)

P1: Aftershave

P2: Perfume

27%

73%

Breakdown of 2012sales

revenue by area

A1

A2

14%

86%

Breakdown of 2012 sales

revenue by product

P1

P2

6%

21%

8%65%

Breakdown of 2012 sales revenue

by product/area

A1P1

A1P2

A2P1

A2P2



6 | P a g e

-2

-1

0

1

2

3

4

5

6

Q2 -

2010

Q3 -

2010

Q4 -

2010

Q1 -

2011

Q2 -

2011

Q3 -

2011

Q4 -

2011

Q1

- 2012

Q2

- 2012

Q3 -

2012

Q4 -

2012

Q1 -

2013

NPV

NPV

-

2.00

4.00

6.00

8.00

10.00

12.00

Q2 -

2010

Q3 -

2010

Q4 -

2010

Q1 -

2011

Q2 -

2011

Q3 -

2011

Q4 -

2011

Q1 -

2012

Q2 -

2012

Q3 -

2012

Q4 -

2012

Q1 -

2013

Stock Price

Stock Price



7 | P a g e

9%

23%

7%

61%

Breakdown of sales revenue by

product/area for 3 years

A1P1

A1P2A2P1

A2P2

32%

68%

Breakdown of sales revenue by areafor 3 years

A1

A2



8 | P a g e

17%

83%

Breakdown of sales revenue by

product for 3 years

P1

P2



9 | P a g e

2. LETTER TO SHAREHOLDERS

Dear Fellow Shareholders,

It’s not like as we expected. You can

see some problems across a number of

key operating metricx. In fiscal year

12, although sales revenue increased

5%, our net income decreased of

23.5%, compared with fiscal year 11.

But as you can see, we still keep

earning per share increase from 4.99

to 5.34.

It is unfair if blame all to our staffs. Fiscal year 12 was a challenging year for Nat*ances.

And in fact, the market changes iregularly. And have to admit that board of directors did

some serious mistakes.

On an annual basic, we still stand on in the market group. According to forecasts of our

market research results, the demand in both products and both areas is expected to return to

normal for all of 2013. It means market begins go to be stable.

2356982.75

1725699.25

2339411.75

12

11

10

Operating cashflow

Operating cashflow



10 | P a g e

To overcome a reduction in cash flows in fiscal year 10 -11, we closed the year with an

increase in cash flows from operations of $631283.5 to total $2356982.75. In addition, we

bought back 574847 shares of our own stock for a total purchase price of $3629271.29

during three fiscal years.

We were not able to grow our revenue or operating margin as we had planned. Our revenue

for the full year was only marginally up when compared to fiscal 2007 — with growth

around the world entirely offset by a decline in the U.S., which declined 8% for the year.

There is no question some storms had an impact on our customers and impeded our ability

to grow the top line, especially in the latter half of the fiscal year. Our concentration in somevery challenged industry segments – not our strong point, with such as lowend product and

financial services exacerbated the challenge we faced.

That said, we did see revenue growth and progress among the majority of U.S. geographies.

On an annual basis, NAFTA market grew 7%.

27%

73%

Breakdown of 2011 salesrevenue by area

A1

A2

34%

66%

Breakdown of 12 salesrevenue by area

A1

A2



11 | P a g e

I am not satisfied with the operating results for the year, and in the fourth quarter, we

initiated a restructuring to more closely align our research and development resources with

high growth customer and market segments. We are also currently shifting more sales

resources to the emerging economies across the world — where our user and developer

communities are healthiest and where our business opportunities are growing most

dramatically.

Our mistakes were making wrong for demand market in 2 quarter. It brings about some

troubles like lacking of capital. Then we had to issue more stocks in the market. It likes

famous quote’s Benjamin Franklin – one of the Founding Farthers of the United State of

America: ―For want of a nail the shoe was lost, For want of a shoe the horse was lost, For

want of a horse the rider was lost, Forwant of a rider the battle was lost, For want of a battlethe kingdom was lost, And all for the want of a horse.‖

There is no significant development in the recent year. All we do is trying to fixing our

mistakes like buying stocks, improve our Marketing Department… Throughout the year, we

almost found our way and come back to grow more and more.

http://www.quotesdaddy.com/quote/1202742/benjamin-franklin/for-want-of-a-nail-the-shoe-was-lost-for-want-of-a











12 | P a g e

Turning to fiscal 13, growing revenue and expanding profitability remain our top priorities

and we will be executing against and investing in four key areas to drive these goals

Innovation in all activities of company is so necessary now. We designed 5 keys to

innovate. Custumers are active participants in Nat*ances innovation process. By defining

innovation broadly – what it is, where it comes from, who’s responsible for it – we hope we

hope we will expand and unleash Nat*ances innovation potential. We believe it will help us

improve our position. You can follow our progress in the coming year via our web

(www.nat*ances.com), our quarterly results call updates and by visiting

www.nat*ances.com/investors.

I want to end on a note of thanks to all of our shareholders,

employees, customers and partners for your continued support in our journey. Nat*ances

and we will continue to position ourselves to be the biggest beneficiary by continually

innovating through R&D, aligning our resources with the highest growth market segments

and driving for more operational efficiency.

Sincerely,

Nguyen Thi Thanh Mai

President, CEO

Natural Fragances, Inc.

http://www.sun.com/aboutsun/investor/earnings_releases/index.jsp

http://www.nat%2Aances.com/investors


http://www.sun.com/customers/index.xml

http://www.sun.com/third-party/global/index.jsp

http://www.sun.com/third-party/global/index.jsp

http://www.sun.com/customers/index.xml


http://www.sun.com/aboutsun/investor/earnings_releases/index.jsp



13 | P a g e

THE ANNUAL REPORT 2012

3. COMPANY OPERATIONS AND

SIGNIFICANT DEVELOPMENTS

THE YEAR IN REVIEW

Sales increased by more than 14 million.

The unstable demand of Nafta and EU

market is difficulty for us to forecast. There

are more than 8 well-known brands that

compete the market share. But now we’ve

got a lot of experience to believe a brighter

future. The market share went down but we

ensured profit. Those financial data in ratio

below show the increase of our company.

This is a good sign for us in scent industry.

OUTLOOK FOR NEXT YEAR 2013

Natural Fragrances is going to enter newpotential markets that prefer luxury

products. We concentrate on R&D and will

spend more money on advertising

Increasing customer service is a impotant

thing that company want to do to care our

clients better.



14 | P a g e

MARKETING

Market research

Through last three years, Natural Fragrances was active in researching markets, about

product, services, quality. We so proud of providing a luxury goods for customers in Naftaand EU. The company also found out the competitors, economic enviroment,….we tried the

best to keep sales lost and backorders to a minimum.

The NAFTA and EU economy has

steady growth and the outlook is

for this to continue. General retail

sales continue to improve although

recent interest rate rises are set to

cool demand.

Research shows that there are

100,000 persons aged between 25-

55 earning over $1000 per year in

the catchment area we are

targeting.

Advertising

The company has spent more

money on advertising in 2012 and

increased commission to promote

sales. We also spent money to

advertise on The Boss.

HUMAN RESOURES – MANAGEMENT & TRAINING

In order to meet more demand for last year, we recruited and trained a lot of people,

especially for the large demand in quarter 4 every year.



15 | P a g e

THE ANNUAL REPORT 2012

4. FINANCIAL STATEMENT AND TABLES



16 | P a g e

BREAKDOWN OF BALANCE SHEET

At as 31 January 2013

At as 31 January

2013

Atas 31 January

2012

At as31 January

2011

ASSETS

Cash 2,356,844.75 1,726,019.50 2,339,895.50

Accounts Receivable 1,466,004.63 2,043,862.88 1,427,920.25

Marketable Securities - - -

Inventories

Finished Goods 556,914.00 269,712.00 105,690.00

Raw Materials - - -

Total Inventories 556,914.00 269,712.00 105,690.00

Manufacturing Plants

Plant and Equity - - -

- Accum. Depr. - - -

Net Plant - - -

TOTAL ASSETS 4,379,763.50 4,039,594.50 3,873,505.75

LIABILITIES

Accounts Payable 17,500.00 17,500.00 17,500.00

Special Loan - - -

Short Term Loan - - -

Term Loan - - -

Bonds 950,000.00 200,000.00 200,000.00

Total Liabilities 967,500.00 217,500.00 217,500.00

EQUITY

Common Stock 425,153.00 590,490.00 900,000.00

Other Paid In 518,650.88 726,487.88 1,110,805.00

Unmort. Disc.(19,235.65) (5,313.03) (4,403.22)

Retained Earnings 2,487,695.25 2,510,429.75 1,649,604.25

Total Equity 3,412,263.50 3,822,094.50 3,656,006.00

LIABILITIES +

EQUITY4,379,763.50 4,039,594.50 3,873,506.00



17 | P a g e

BREAKDOWN OF

INCOME STATEMENT


At as 31 January 2011 At as 31 January 2012 At as 31 January 2013

Sales Revenue 9,661,036.63 13,845,192.00 14,556,888.31

Less: Processing Costs 11,108.00 17,550.00 5,976.00

Net Sales 9,649,928.63 13,827,642.00 14,550,912.31

Costs Of Goods Sold 3,461,001.00 4,515,003.25 4,746,266.00

Advertising 822,000.00 1,912,000.00 3,072,000.00

Sales Expense 324,693.00 889,865.00 1,227,461.00AdministrativeExpense

200,000.00 200,000.00 200,000.00

Quality Control 237,169.00 388,103.00 705,919.00

Bad Dedts 21,143.18 30,444.11 28,984.52

Invt./Shipping Charges 11,130.00 15,178.10 11,418.90

Miscellaneous Expense 144,000.00 176,000.00 117,000.00

EBIT 1,128,792.45 5,701,048.54 4,441,862.89

Interest Expense 121,259.53 44,638.69 85,751.06

EBT 4,307,542.92 5,656,409.85 4,356,111.83

Taxes 2,062,616.78 2,708,575.86 2,087,683.59

Net Income 2,244,926.14 2,947,833.99 2,268,428.24

Bonds 200,000.00 200,000.00 950,000.00

Shares 900,000.00 590,490.00 425,153.00

Retained Earnings 1,649,604.25 2,510,429.75 2,487,695.25

EPS 1.227 1.1357 0.5869

DPS 0.575 0.4 0.10625



18 | P a g e

BREAKDOWN OF CASH FLOW


Beginning Cash Balance 1,725,699.14

Cash Inflows Cash Dispursements

Net Cash Sales 8,732,204.69 Raw Mtls at Market *.85 Investment Income - Mfg Labor Costs *.85

Income from Subsidiary - Bad Debts Expense 28,984.5

Collection of Receivables 6,396,566.30 Advertising Expense 3,072,000.0

Receivables Factored - Quality Control Expense 705,919.0

New Special Loan - Product Improvement

New Short Term Loan - Engineering Studies

Change in Term Loan - Sales Expense 1,227,461.0

New Bond Less Discount 878,826.31 Administrative Expense *.65 130,000.0

New Stock Issue - Inventory and Shipping Costs 11,418.9

Cash Available for

Operations17,733,296.44 Maintenance Expense

Interest Expense 78,500.0

Factoring Expense

Miscellaneous Expense 117,000.0

Income Tax 2,087,684.5

Beginning Accounts Payable 70,000.0

Beginning Short Term Loan

Beginning Special Loan

Prepay Bonds 150,000.0Repurchase Common Shares 1,582,747.2

Cash Dividends Paid 1,081,253.0

Raw Mtls Futures *.70

New Construction

Expenses of purchasing goods 5,033,346.2

Total Cash Dispursements 15,376,314.5

Ending Cash Balance 2,356,981.92



19 | P a g e


Beginning Cash Balance 2,339,411.68


Net Cash Sales 8,293,828.94 Raw Mtls at Market *.85 -

Investment Income - Mfg Labor Costs *.85 -


Collection of Receivables 4,917,869.82 Advertising Expense 1,912,000.00


New Special Loan - Product Improvement -

New Short Term Loan - Engineering Studies -

Change in Term Loan - Sales Expense 889,865.00


New Stock Issue - Inventory and Shipping Costs 15,179.40

Cash Available forOperations

15,841,311.69 Maintenance Expense -


Factoring Expense -


Income Tax 2,708,575.86


Beginning Short Term Loan -

Beginning Special Loan -

Prepay Bonds 300,000.00

Repurchase Common Shares 1,707,324.31

Cash Dividends Paid 1,074,222.02

Raw Mtls Futures *.70 -

New Construction -






20 | P a g e


Beginning Cash Balance = 10,000


Net Cash Sales 5,789,261.34 Raw Mtls at Market *.85 -

Investment Income - Mfg Labor Costs *.85 -


Collection of Receivables 2,432,746.81 Advertising Expense 822,000.00


New Special Loan 1,043,880.00 Product Improvement -

New Short Term Loan - Engineering Studies -

Change in Term Loan - Sales Expense 324,693.00


New Stock Issue 2,235,000.00 Inventory and Shipping Costs 11,130.30

Cash Available forOperations

10,749,304.59 Maintenance Expense -


Factoring Expense -


Income Tax 2,062,616.66


Beginning Short Term Loan -

Beginning Special Loan -

Prepay Bonds 100,000.00Repurchase Common Shares 355,000.00

Cash Dividends Paid 390,000.00

Raw Mtls Futures *.70

New Construction






21 | P a g e

THE FINANCIAL DATA IN RATIO

At as 31

January 2013 At as 31

January 2012 At as 31

January 2011

Current ratio-CR (times) 4.53 18.57 17.81

Quick ratio-QR (times) 3.95 17.33 17.32

Inventory Activity (times) 26.14 51.33 91.41

Total Assets Turnover ratio(times) 3.32 3.43 2.49

D/E (%) 0.28 0.06 0.06

Ability To Pay Interest (times) 51.8 127.72 9.31

Profit Margin On Sales (%) 0.16 0.21 0.23

Basic Earning Power Ratio (%) 0.26 1.41 1.15

Return on Total Assets – ROA(%) 0.59 0.73 0.51

Return on Common Equity – ROE(%) 0.59 0.89 0.82

Retained Earning Ratio (%) 0.17 0.18 0.17

Price/ Earning Ratio (times) 7.73 6.92 7.21

M/B (times) 1.18 1.21 1.04



22 | P a g e

5.ORGANIZATION CHART



23 | P a g e

LEADERSHIP

BOARD OF DIRECTORS

MRS. NGUYEN THI THANH MAI

CEO - Chief Excutive Officer

Date of birth: Jul 28, 1962

Education: MBA

Languages: English, Chinese

Mrs. Nguyen Thi Thanh Mai is founder of Nat*ances. Mrs. Mai had many

years of experience in scent industry before joining Nat*ances in 2000. Sheused to be CEO of Gucci company in England.

MRS. NGUYEN LE THUY GIANG

CHRO – Chief Human Resources Officer

Date of birh: Aug 5, 1968

Education: MIB

Languages: English, French

Mrs. Nguyen Le Thuy Giang used to be Deputy Chief Excutive Officer of FLV

company in French. Mrs. Giang has many years of experience in managing

people and setting up to organization.

MR. NGUYEN KHAC QUI

CFO - Chief Financial Officer

Date of birth: Jul 10, 1966

Education: Master of International Finance


Mr. Nguyen Khac Qui has many years of

experience in the fields of finance and

accounting. Before working at Nat*ances,



24 | P a g e

Mr. Qui held the position of Deputy Chief of HSBC Bank in Singapore.

MS. LE THANH TRUC

CMO – Chief Maketing Officer

Date of birth: Dec 22, 1978

Education: MBA


Ms. Le Thanh Truc has many years of experience in marketing and helding

event. Ms. Truc had been Director of Dm@rt – an event management company

in Finland for 5 years.

LEADERSHIP

BOARD OF MANAGEMENT

MRS. LE THI CHAU HA

Director of Nafta area

Date of birth: Jun 12, 1967

Education: MBA


Mrs. Le Thi Chau Ha used to be Manager for Channel Chain in New York,

America. Mrs. Ha has many years of experience in fashion and perfume.

MS. VUONG CHINH LOAN

Finance Manager of NAFTA area

Date of birth: Sep 21, 1973

Educaction: Master of International Accounting




25 | P a g e

LEADERSHIP

Ms. Vuong Chinh Loan has many years of experience in the fields of finance

and accounting. Before working at Nat*ances, Ms. Loan worked as Chief

Accountant for ACB Bank (from 1993 – 1999)

MS. HONG DU MAN

Marketing Manager of NAFTA area

Date of birth: Jun 4, 1978

Education: Master of Marketing Management

Languages: English, Korean

Ms. Hong Du Man was appointed as Maketing Manager for NAFTA area of

Nat*ances from the beginning of company, with 2 years experience work for

Boss Brands.

MRS. NGUYEN THI HOANG LINH

Director of EU area

Date of birth: Sep 24, 1969

Education: MBA

Languages: English, Chinese, French

Mrs. Nguyen Thi Hoang Linh joined with

company as position Director of EU area

from 2000. Mrs. Linh was born in French

and has a lot of knowledge about fashion

industry in EU.



26 | P a g e

MS. LE THI THANH TUYEN

Marketing manager of EU area

Date of birth: Dec 3, 1979

Education: Master of Marketing Management


Ms. Nguyen Thi Thanh Tuyen has many years of experience about EU market. Ms. Tuyen used to

work in R&D Department of Raphael Laurent – a

famous perfume brand, for 4 years.

MR. DO THANH LAM

Financial Manager of EU area

Date of birth: Aug 8, 1974

Education: Master of Finance and AccountingLanguages: English, Japanese

Mr. Do Thanh Lam has many years of experience in the fields of finance.

Before being appointed to his current position in Nat*ances, Mr. Lam held

important positions as Head of the Finance and Accounting Department.

MS. DINH THI THANH THAO

Information ManagerDate of birth: Aug 6, 1980

Education: MIT


Ms. Dinh Thi Thanh Thao has many years of experience work for Dutch Lady

as position of Information Management Department. Ms. Thao was appointed

to her current position in 2001.

LEADERSHIP



27 | P a g e

APPENDIX A

INCOME STATEMENT

FISCAL YEAR 10

Quarter 2,

2010

Quarter 3,

2010

Quarter 4,

2010

Quarter 1,

2011

Sales Revenue 823130.13 1185730 4076800 3575376.25

Processing Cost 872 1490 4697 4049

Net Sales 822258.1 1184240 4072103 3571327.25

Cost of good sold 408039 418498 1341032 1293432

Advertising 70000 141000 355000 256000

Sales Expenses 43957 40445 130926 109995

Adm. Expenses 50000 50000 50000 50000

QC 53650 42926 71399 69194

Bad debt - 2158 11126.18 7859

Invt./Shipping Charges 6170 4147 - 813

Miscellaneous Expenses 96000 24000 24000 -

EBIT 944421.1 461066 2089249.82 1784034.25

Interest Expenses 93949.2 7885 7865.92 11549.23

EBT 492.9 453181 2081383.9 1772485.02

Taxes 108.4 215901 997439 849167.44

Net Income 384.5 237280 1083944 923317.58



28 | P a g e

FISCAL YEAR 11

Quarter 2,

2011

Quarter 3,

2011

Quarter 4,

2011

Quarter 1,

2012

Sales Revenue 2215622.5 1687623 4837840 5104106.5

Processing Cost 505 2330 6820 7895

Net Sales 2215117.5 1685293 4831020 5096211.5

Cost of good sold 820942 555661 1555184.25 1583216

Advertising 260000 450000 567000 635000

Sales Expenses 119666 136317 327883 305999

Adm. Expenses 50000 50000 50000 50000

QC 57400 105324 111690 113770

Bad debt 3973.51 4059 10431.63 11979.97

Invt./Shipping Charges 1328.4 9276 2483 2090.7

Miscellaneous Expenses - 54000 122000 -

EBIT 901807.59 320656 2084429.12 2394155.83

Interest Expenses 10607.46 9292.23 9265 15474

EBT 891200.13 311363.77 2075164.12 2378681.83

Taxes 426151.06 147829.11 994453.44 15474

Net Income 465049.07 163534.66 1080710.68 1238539.58



29 | P a g e

FISCAL YEAR 12

Quarter 2,

2012

Quarter 3,

2012

Quarter 4,

2012

Quarter 1,

2013

Sales Revenue 346385.56 3435602 7096447 3678453.75

Processing Cost 526 2331 - 3119

Net Sales 345859.56 3433271 7096447 3675334.75

Cost of good sold 118158 1101176 2322138 1204794

Advertising 635000 747000 1050000 640000

Sales Expenses 112622 211478 576876 335485

Adm. Expenses 50000 50000 50000 50000

QC 113770 158059 259536 174554

Bad debt 446.7 8350.34 12348.06 7893.42

Invt./Shipping Charges 1165.8 4134.6 1598.7 4519.8

Miscellaneous Expenses - 21000 96000 -

EBIT (685302.94) 1132073.06 2736950.24 1258142.53

Interest Expenses 11301.19 24871.78 24815.69 24762.4

EBT (696604.13) 1107201.28 2712134.55 1233380.13

Taxes (332744.97) 529831.56 1300199.5 590397.5

Net Income (363859.16) 577369.72 1411935.05 642982.63



30 | P a g e

APPENDIX B

CASHFLOW STATEMENT

FISCAL YEAR 10

Quarter 02,

2010

Quarter 3,

2010

Quarter 4,

2010

Quarter 1,

2011

Beginning cash bal. 10000 341780.59 817522 688092

Cash inflows

Net cash sales 493744.34 709949.25 2442160.75 2143407

Collection of

receivables

0 328513.81 474291 1629942

New Bond Less

Discount

0 2992296.44 0 0

New stock issue 1480000 755000 0 0

Cash available for

operations

1983744.38 2427540 3733973.75 4461441

Cash dispursements

Bad debt expense 0 2158.79 11126.18 7859.78

Adv. Expense 70000 141000 355000 256000

QC expense 53650 42926 71399 69194

Sales expense 43957 40445 130296 109995



31 | P a g e

Adm. Expense*65 32500 32500 32500 32500

Invt. And shipping

costs

6170 4147.2 0 813

Interest expense 93949.2 7500 7500 9000

Miscellaneous

expense

96000 24000 24000 0

Income tax 108.42 215901.42 997439.38 849167.44

Beginning acounts

payable

0 17500 17500 17500

Beginning special

loan

1043880 0 0 0

Prepay bonds 0 0 0 100000

Repurchase common

shares

0 0 0 355000

Cash dividens paid 0 75000 0 315000

Total cash

dispursements

1440214.75 603078.38 1646760.5 2122029.25

Ending cash bal. 543529 1824461.63 2087213.25 2339411.75

Ending actual bal. 0 75000.13 -0.25 -483.75



32 | P a g e

FISCAL YEAR 11

Quarter 02,

2011

Quarter 3,

2011

Quarter 4,

2011

Quarter 1,

2012

Beginning cash bal. 1449747 805831 892465 121446

Cash inflows

Net cash sales 1329531.25 1012690.44 2899258.75 3052349

Collection of

receivables

1427920 885586.19 672602.63 1931761

New Bond Less

Discount

0 290201.25 0 0

Cash available for

operations

4207198 2994309 4464326.5 5105556

Cash dispursements

Bad debt expense 3973.51 4059.05 10431.63 11980

Adv. Expense 260000 450000 567000 635000

QC expense 57400 105324 111609 113770

Sales expense 119666 136317 327833 305999

Adm. Expense*65 32500 32500 32500 32500

Invt. And shipping

costs

1328.4 9276.9 2483.4 2090.7

Interest expense 7250 8750 8750 11000

Miscellaneous

expense

0 54000 122000 0



33 | P a g e

Income tax 426151.06 147829.11 994453.44 1140142

Beginning acounts

payable

17500 17500 17500 17500

Prepay bonds 150000 0 0 150000

Repurchase common

shares

370800 427680 421362 487482

Cash dividens paid 405000 0 196830.02 472392

Total cash

dispursements

1851569 1383236 2812802.5 3379856

Ending cash bal. 2355629 1601073 1651524 1725699

Ending actual bal. -16.25 -368.25 -7.75 -320.25



34 | P a g e

FISCAL YEAR 12

Quarter 02,

2012

Quarter 3,

2012

Quarter 4,

2012

Quarter 1,

2013

Beginning cash bal. 1726020 727606 50943 62438

Cash inflowsNet cash sales 207288.31 2062927.38 4252659 2209330

Collection of receivables 2043863 138571.3 1370344 2843788

New stock issue 0 878826.31 0 0

Cash available for

operations

3977171.25 3807931 5673946 51155

Cash dispursements

Bad debt expense 446.7 8350.34 12348.06 7839.42

Adv. Expense 635000 747000 1050000 640000

QC expense 113770 158059 259536 174554

Sales expense 112622 211478 567876 335485

Adm. Expense*65 32500 32500 32500 32500

Invt. And shipping costs 1165.8 4134.6 1598.7 4159.8

Interest expense 7250 23750 23750 23750

Miscellaneous expense 0 21000 96000 0

Income tax -332744.97 529831.56 1300199.5 590397.5

Beginning acounts payable 17500 17500 17500 17500

Prepay bonds 150000 0 0 0

Repurchase common shares 623951.13 0 451921.69 506874.47

Cash dividens paid 419904 0 236196 425153

Total cash dispursements 1781364.63 1753603.5 4049426 2758573.25

Ending cash bal. 2195806.5 2054327.5 1624520 2356982.7

Ending actual bal. 93 0.63 105.75



35 | P a g e

APPENDIX C

TOTAL UNITS SOLD EACH QUARTER& MARKET SHARE

A1P1 A2P1 A2P1 A2P2

TotalMarket

SoldTotal

MarketSold

TotalMarket

SoldTotal

MarketSold

Q2/2010 8,056 1,913 4,284 649 2,692 1,150 9,667 1,740

Q3/2010 6,174 1,409 5,349 963 2,558 453 10,425 2,211

Q4/2010 53,508 5,200 22,563 2,500 12,263 1,400 30,161 6,100

Q1/2011 7,539 953 17,578 2,699 3,449 771 27,086 7,837

Q2/2011 17,582 2,099 12,767 1,292 12,575 1,139 27,384 3,582

Q3/2011 6,587 782 8,382 847 3,545 547 19,194 3,216

Q4/2011 42,135 664 48,649 2,908 29,736 2,828 97,100 8,686

Q1/2012 12,036 517 67,964 3,333 14,379 745 86,901 10,162

Q2/2012 19,204 1,043 23,885 - 15,071 53 41,077 297

Q3/2012 10,177 526 28,827 2,512 10,758 1,541 46,847 6,033

Q4/2012 46,053 2,738 75,531 5,761 41,431 3,053 159,197 11,243

Q1/2013 11,153 549 55,602 3,018 11,787 779 100,466 6,993



36 | P a g e

0

5

10

15

20

25

30

MARKET SHARE OF A1P1

APPENDIX D

LINE CHART OF MARKET SHARE

0

2

4

6

8

10

12

14

16

18

20

MARKET SHARE OF A1P2 (%)



37 | P a g e

0

5

10

15

20

25

30

35

40

45

50


0

5

10

15

20

25

30

35




38 | P a g e

APPENDIX E

STOCK PRICE & NPV

STOCK PRICE

AMOUNT (SHARES) STOCK PRICE

Quarter 2, 2010 500000 3.13

Quarter 3, 2010 1000000 2.14

Quarter 4, 2010 1000000 3.28

Quarter 1, 2011 900000 4.23

Quarter 2, 2011 810000 4.74

Quarter 3, 2011 729000 5.03

Quarter 4, 2011 656100 6.26

Quarter 1, 2012 590490 7.86

Quarter 2, 2012 524880 7.83

Quarter 3, 2012 524880 10

Quarter 4, 2012 472392 10

Quarter 1, 2013 425153 9.48



39 | P a g e

NPV

NPV

Quarter 2, 2010 0.02

Quarter 3, 2010 -0.88

Quarter 4, 2010 0.01

Quarter 1, 2011 0.94

Quarter 2, 2011 0.85

Quarter 3, 2011 1.3

Quarter 4, 2011 1.92

Quarter 1, 2012 2.92

Quarter 2, 2012 3.77

Quarter 3, 2012 4.07

Quarter 4, 2012 4.72

Quarter 1, 2013 5.26



40 | P a g e

APPENDIX F

INCOME STATEMENT EACH QUARTER

QUARTER 2-2010 QUARTER 3-2010 QUARTER 4-2010 QUARTER 1-201

TOTAL TOTAL TOTAL TOTAL

Sales Revenue823,130.1

100%1,185,730

100%4,076,800.00

100%3,575,376.25

100%

Processing Cost872.0

0.11%1,490

0.13%4,697.00

0.12%4,049.00

0.11%

Net Sales822,258.1

99.89%1,184,240

99.87%4,072,103.00

99.88%3,571,327.25

99.89%

Cost Of good

Sold 408,039.049.57%

418,49835.29%

1,341,032.0032.89%

1,293,432.0036.18%

Advertising70,000.0

8.50%141,000

11.89%355,000.00

8.71%256,000.00

7.16%

Sales Expenses43,957.0

5.34%40,445

3.41%130,296.00

3.20%109,995.00

3.08%

Adm. Expenses50,000.0

6.07%50,000

4.22%50,000.00

1.23%50,000.00

1.40%

QC53,650.0

6.52%42,926

3.62%71,399.00

1.75%69,194.00

1.94%

Bad Debt- 2,158

0.18%11,126.18

0.27%7,859.00

0.22%

Invt./ShippingCharges 6,170.0 0.75% 4,147 0.35% - 0.00% 813.00 0.02%

MiscellaneousExpense 96,000.0

11.66%24,000

2.02%24,000.00

0.59%-

0.00%

EBIT94,442.1

11.47%461,066

38.88%2,089,249.82

51.25%1,784,034.25

49.90%

Interest Expenses93,949.2

11.41%7,885

0.67%7,865.92

0.19%11,549.23

0.32%

EBT492.9

0.06%453,181

38.22%2,081,383.90

51.05%1,772,485.02

49.57%

Taxes108.4

0.01%215,901

18.21%997,439.50

24.47%849,167.44

23.75%

Net Income384.5

0.05%237,280

20.01%1,083,944.40

26.59%923,317.58

25.82%



41 | P a g e



SalesRevenue 2,215,622.50 100% 1,687,623.00 100% 4,837,840.00 100% 5,104,106.50 100%

ProcessingCost 505.00 0.02% 2,330.00 0.14% 6,820.00 0.14% 7,895.00 0.15%

Net Sales2,215,117.50 99.98% 1,685,293.00 99.86% 4,831,020.00 99.86% 5,096,211.50 99.85%

Cost Of goodSold 820,942.00 37.05% 555,661.00 32.93% 1,555,184.25 32.15% 1,583,216.00 31.02%

Advertising260,000.00 11.73% 450,000.00 26.66% 567,000.00 11.72% 635,000.00 12.44%

SalesExpenses 119,666.00 5.40% 136,317.00 8.08% 327,883.00 6.78% 305,999.00 6.00%

Adm.Expenses 50,000.00 2.26% 50,000.00 2.96% 50,000.00 1.03% 50,000.00 0.98%

QC57,400.00 2.59% 105,324.00 6.24% 111,609.00 2.31% 113,770.00 2.23%

Bad Debt3,973.51 0.18% 4,059.00 0.24% 10,431.63 0.22% 11,979.97 0.23%

Invt./Shipping Charges 1,328.40 0.06% 9,276.00 0.55% 2,483.00 0.05% 2,090.70 0.04%

Miscellaneous Expense - 0.00% 54,000.00 3.20% 122,000.00 2.52% - 0.00%

EBIT901,807.59 40.70% 320,656.00 19.00% 2,084,429.12

43.09

% 2,394,155.83 46.91%

InterestExpenses 10,607.46 0.48% 9,292.23 0.55% 9,265.00 0.19% 15,474.00 0.30%

EBT891,200.13 40.22% 311,363.77 18.45% 2,075,164.12

42.89

% 2,378,681.83 46.60%

Taxes426,151.06 19.23% 147,829.11 8.76% 994,453.44 20.56% 1,140,142.25 22.34%

Net Income465,049.07 20.99% 163,534.66 9.69% 1,080,710.68

22.34

% 1,238,539.58 24.27%





Sales Revenue346,385.56

100%3,435,602.00

100%7,096,447.00

100.00%3,678,453.75

100.00

%

Processing Cost526.00

0.15%2,331.00

0.07% - 0.00%3,119.00

0.08%

Net Sales345,859.56

99.85%3,433,271.00

99.93%7,096,447.00

100.00%3,675,334.75

99.92%

Cost Of goodSold 118,158.00

34.11%1,101,176.00

32.05%2,322,138.00

32.72%1,204,794.00

32.75%

Advertising635,000.00

183.32%747,000.00

21.74%1,050,000.00

14.80%640,000.00

17.40%

Sales Expenses 112,622.00 32.51% 211,478.00 6.16% 567,876.00 8.00% 335,485.00 9.12%

Adm. Expenses50,000.00

14.43%50,000.00

1.46%50,000.00

0.70%50,000.00

1.36%

QC113,770.00

32.84%158,059.00

4.60%259,536.00

3.66%174,554.00

4.75%

Bad Debt446.70

0.13%8,350.34

0.24%12,348.06

0.17%7,839.42

0.21%

Invt./ShippingCharges 1,165.80

0.34%4,134.60

0.12%1,598.70

0.02%4,519.80

0.12%

MiscellaneousExpense

- 0.00%21,000.00

0.61%96,000.00

1.35% - 0.00%

EBIT(685,302.94)

-197.84% 1,132,073.06

32.95%2,736,950.24

38.57%1,258,142.53

34.20%

InterestExpenses 11,301.19

3.26%24,871.78

0.72%24,815.69

0.35%24,762.40

0.67%

EBT(696,604.13)

-

201.11% 1,107,201.2832.23%

2,712,134.5538.22%

1,233,380.1333.53%

Taxes(332,744.97)

-96.06%529,831.56

15.42%1,300,199.50

18.32%590,397.50

16.05%

Net Income(363,859.16)

-

105.04% 577,369.7216.81%

1,411,935.0519.90%

642,982.6317.48%

the annual report

Documents