qwertyuiopasdfghjklzxcvbnmqwertyui

opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyuiopas
Natural
dfghjklzxcvbnmqwertyuiopasdfghjklzx
Fragrances
cvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj
ANNUAL REPORT
klzxcvbnmqwertyuiopasdfghjklzxcvbn
FIRM 61
mqwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmrty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
 

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

2|Page
1. FINANCIAL SUMMARY

Sales revenue
Sales revenue

13,845,192.00 14,556,888.31

9,661,036.63

10 11 12

Net income
Net income

2947833.99
2244926.14 2268428.24

10 11 12

3|Page

Debt to equity ratio
0.2779

0.0583 0.0555

10 11 12

Debt to equity ratio

EPS
EPS

5.34
4.99

2.49

10 11 12

4|Page
Breakdown of 2012sales Breakdown of 2012 sales
revenue by area revenue by product

27% 14%
A1 P1
73%
A2 P2
86%

Breakdown of 2012 sales revenue

by product/area

6%

21% A1P1
A1P2
A2P1
8%
65% A2P2

 A1: NAFTA (North American Free Trade Area)

 A2: EU (European Union)
 P1: Aftershave
 P2: Perfume

5|Page
 NPV
6

5
 
4

2 NPV

0
Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - Q4 - Q1 Q2 Q3 - Q4 - Q1 -
-1
2010 2010 2010 2011 2011 2011 2011 - 2012 - 2012 2012 2012 2013
-2

Stock Price
12.00

10.00

8.00

6.00
Stock Price
4.00

2.00

-
Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Q3 - Q4 - Q1 -
2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013

6|Page


Breakdown of sales revenue by

product/area for 3 years

9%
A1P1
23% A1P2
A2P1
61%
7% A2P2

Breakdown of sales revenue by area

for 3 years

32%
A1
A2
68%

7|Page
Breakdown of sales revenue by
product for 3 years

17%

P1
P2

83%

8|Page
 

2. LETTER TO SHAREHOLDERS

Dear Fellow Shareholders,

Operating cashflow
Operating cashflow
It’s not like as we expected. You can
see some problems across a number of
10 2339411.75
key operating metricx. In fiscal year
12, although sales revenue increased
11 1725699.25
5%, our net income decreased of
23.5%, compared with fiscal year 11.
12 2356982.75
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.

9|Page
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 some
very 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%.

Breakdown of 2011 sales Breakdown of 12 sales

revenue by area revenue by area

27% 34%
A1 A1
73% 66%
A2 A2

10 | 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 battle
the 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.

11 | 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.

12 | 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 new

potential 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.
13 | 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 Nafta
and 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.

14 | P a g e
 
THE ANNUAL REPORT 2012

4. FINANCIAL STATEMENT AND TABLES

15 | P a g e
 
BREAKDOWN OF BALANCE SHEET

At as 31 January 2013
At as 31 January Atas 31 January At as31 January

2013 2012 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 726,487.88
518,650.88 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 +
4,379,763.50 4,039,594.50 3,873,506.00
EQUITY

16 | P a g e
BREAKDOWN OF

INCOME STATEMENT

At as 31 January 2013

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 1,227,461.00
Administrative
200,000.00 200,000.00 200,000.00
Expense
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

17 | P a g e
BREAKDOWN OF CASH FLOW

At as 31 January 2013

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 28,984.52
Collection of Receivables 6,396,566.30 Advertising Expense 3,072,000.00
Receivables Factored - Quality Control Expense 705,919.00
New Special Loan - Product Improvement -
New Short Term Loan - Engineering Studies -
Change in Term Loan - Sales Expense 1,227,461.00
New Bond Less Discount 878,826.31 Administrative Expense *.65 130,000.00
New Stock Issue - Inventory and Shipping Costs 11,418.90
Cash Available for
17,733,296.44 Maintenance Expense -
Operations
Interest Expense 78,500.00
Factoring Expense -
Miscellaneous Expense 117,000.00
Income Tax 2,087,684.56
Beginning Accounts Payable 70,000.00
Beginning Short Term Loan -
Beginning Special Loan -
Prepay Bonds 150,000.00
Repurchase Common Shares 1,582,747.29
Cash Dividends Paid 1,081,253.00
Raw Mtls Futures *.70 -
New Construction -
Expenses of purchasing goods 5,033,346.25
Total Cash Dispursements 15,376,314.52

Ending Cash Balance 2,356,981.92

18 | P a g e
At as 31 January 2012

Beginning Cash Balance 2,339,411.68

Cash Inflows Cash Dispursements
Net Cash Sales 8,293,828.94 Raw Mtls at Market *.85 -
Investment Income - Mfg Labor Costs *.85 -
Income from Subsidiary - Bad Debts Expense 30,444.16
Collection of Receivables 4,917,869.82 Advertising Expense 1,912,000.00
Receivables Factored - Quality Control Expense 388,103.00
New Special Loan - Product Improvement -
New Short Term Loan - Engineering Studies -
Change in Term Loan - Sales Expense 889,865.00
New Bond Less Discount 290,201.25 Administrative Expense *.65 130,000.00
New Stock Issue - Inventory and Shipping Costs 15,179.40
Cash Available for
15,841,311.69 Maintenance Expense -
Operations
Interest Expense 35,750.00
Factoring Expense -
Miscellaneous Expense 176,000.00
Income Tax 2,708,575.86
Beginning Accounts Payable 70,000.00
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 -
Expenses of purchasing goods 4,678,148.80
Total Cash Dispursements 14,115,612.55

Ending Cash Balance 1,725,699.14

19 | P a g e
At as 31 January 2011

Beginning Cash Balance = 10,000

Cash Inflows Cash Dispursements
Net Cash Sales 5,789,261.34 Raw Mtls at Market *.85 -
Investment Income - Mfg Labor Costs *.85 -
Income from Subsidiary - Bad Debts Expense 21,144.75
Collection of Receivables 2,432,746.81 Advertising Expense 822,000.00
Receivables Factored - Quality Control Expense 237,169.00
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 Bond Less Discount 292,296.44 Administrative Expense *.65 130,000.00
New Stock Issue 2,235,000.00 Inventory and Shipping Costs 11,130.30
Cash Available for
10,749,304.59 Maintenance Expense -
Operations
Interest Expense 117,949.20
Factoring Expense -
Miscellaneous Expense 144,000.00
Income Tax 2,062,616.66
Beginning Accounts Payable 52,500.00
Beginning Short Term Loan -
Beginning Special Loan -
Prepay Bonds 100,000.00
Repurchase Common Shares 355,000.00
Cash Dividends Paid 390,000.00
Raw Mtls Futures *.70
New Construction
Expenses of purchasing goods 3,641,690.00
Total Cash Dispursements 8,409,892.91

Ending Cash Balance 2,339,411.68

20 | P a g e
 

THE FINANCIAL DATA IN RATIO

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

21 | P a g e
5.ORGANIZATION CHART

22 | 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. She
used 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
Languages: English, Chinese

Mr. Nguyen Khac Qui has many years of 

experience in the fields of finance and
accounting. Before working at Nat*ances,

23 | 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
Languages: English, French

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
Languages: English, French

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
Languages: English, Chinese

24 | 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.

25 | 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
Languages: English, French

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 Accounting
Languages: 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 Manager
Date of birth: Aug 6, 1980
Education: MIT
Languages: English, Chinese

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

26 | P a g e
 APPENDIX A
INCOME STATEMENT

FISCAL YEAR 10

Quarter 2, Quarter 3, Quarter 4, Quarter 1,

2010 2010 2010 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

27 | P a g e
 FISCAL YEAR 11

Quarter 2, Quarter 3, Quarter 4, Quarter 1,

2011 2011 2011 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

28 | P a g e
 FISCAL YEAR 12

Quarter 2, Quarter 3, Quarter 4, Quarter 1,

2012 2012 2012 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

29 | P a g e
 APPENDIX B
CASHFLOW STATEMENT

FISCAL YEAR 10

Quarter 02, Quarter 3, Quarter 4, Quarter 1,

2010 2010 2010 2011
Beginning cash bal. 10000 341780.59 817522 688092
Cash inflows

Net cash sales 493744.34 709949.25 2442160.75 2143407

Collection of 0 328513.81 474291 1629942

receivables
New Bond Less 0 2992296.44 0 0
Discount
New stock issue 1480000 755000 0 0

Cash available for 1983744.38 2427540 3733973.75 4461441

operations

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

30 | P a g e
Adm. Expense*65 32500 32500 32500 32500

Invt. And shipping 6170 4147.2 0 813

costs
Interest expense 93949.2 7500 7500 9000

Miscellaneous 96000 24000 24000 0

expense
Income tax 108.42 215901.42 997439.38 849167.44

Beginning acounts 0 17500 17500 17500

payable
Beginning special 1043880 0 0 0
loan
Prepay bonds 0 0 0 100000

Repurchase common 0 0 0 355000

shares
Cash dividens paid 0 75000 0 315000

Total cash 1440214.75 603078.38 1646760.5 2122029.25

dispursements

Ending cash bal. 543529 1824461.63 2087213.25 2339411.75

Ending actual bal. 0 75000.13 -0.25 -483.75

31 | P a g e
 FISCAL YEAR 11

Quarter 02, Quarter 3, Quarter 4, Quarter 1,

2011 2011 2011 2012
Beginning cash bal. 1449747 805831 892465 121446

Cash inflows

Net cash sales 1329531.25 1012690.44 2899258.75 3052349

Collection of 1427920 885586.19 672602.63 1931761

receivables
New Bond Less 0 290201.25 0 0
Discount
Cash available for 4207198 2994309 4464326.5 5105556
operations

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 1328.4 9276.9 2483.4 2090.7

costs
Interest expense 7250 8750 8750 11000

Miscellaneous 0 54000 122000 0

expense
32 | P a g e
Income tax 426151.06 147829.11 994453.44 1140142

Beginning acounts 17500 17500 17500 17500

payable
Prepay bonds 150000 0 0 150000

Repurchase common 370800 427680 421362 487482

shares
Cash dividens paid 405000 0 196830.02 472392

Total cash 1851569 1383236 2812802.5 3379856

dispursements

Ending cash bal. 2355629 1601073 1651524 1725699

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

33 | P a g e
 FISCAL YEAR 12

Quarter 02, Quarter 3, Quarter 4, Quarter 1,

2012 2012 2012 2013
Beginning cash bal. 1726020 727606 50943 62438
Cash inflows
Net 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 3977171.25 3807931 5673946 5115556
operations
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 2356982.75
Ending actual bal. 93 0.63 105.75 138

34 | P a g e
 APPENDIX C
TOTAL UNITS SOLD EACH QUARTER
& MARKET SHARE

A1P1 A2P1 A2P1 A2P2

Total Total Total Total
Sold Sold Sold Sold
Market Market Market Market
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

35 | P a g e


APPENDIX D
LINE CHART OF MARKET SHARE

MARKET SHARE OF A1P1

30
25
20
15
10
5
0

MARKET SHARE OF A1P2 (%)

20
18
16
14
12
10
8
6
4
2
0

36 | P a g e
 MARKET SHARE OF A2P1 (%)
50
45
40
35
30
25
20
15
10
5
0

35

30

25

20

15

10

5
MARKET SHARE OF A2P2 (%)
0

37 | 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

38 | 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

39 | P a g e
 APPENDIX F
INCOME STATEMENT EACH QUARTER

QUARTER 2-2010 QUARTER 3-2010 QUARTER 4-2010 QUARTER 1-2011

TOTAL TOTAL TOTAL TOTAL

Sales Revenue 100% 100% 100% 100%

823,130.1 1,185,730 4,076,800.00 3,575,376.25
Processing Cost 0.11% 0.13% 0.12% 0.11%
872.0 1,490 4,697.00 4,049.00
Net Sales 99.89% 99.87% 99.88% 99.89%
822,258.1 1,184,240 4,072,103.00 3,571,327.25
Cost Of good
49.57% 35.29% 32.89% 36.18%
Sold 408,039.0 418,498 1,341,032.00 1,293,432.00
Advertising 8.50% 11.89% 8.71% 7.16%
70,000.0 141,000 355,000.00 256,000.00
Sales Expenses 5.34% 3.41% 3.20% 3.08%
43,957.0 40,445 130,296.00 109,995.00
Adm. Expenses 6.07% 4.22% 1.23% 1.40%
50,000.0 50,000 50,000.00 50,000.00
QC 6.52% 3.62% 1.75% 1.94%
53,650.0 42,926 71,399.00 69,194.00
Bad Debt 0.18% 0.27% 0.22%
- 2,158 11,126.18 7,859.00
Invt./Shipping
0.75% 0.35% 0.00% 0.02%
Charges 6,170.0 4,147 - 813.00
Miscellaneous
11.66% 2.02% 0.59% 0.00%
Expense 96,000.0 24,000 24,000.00 -
EBIT 11.47% 38.88% 51.25% 49.90%
94,442.1 461,066 2,089,249.82 1,784,034.25
Interest Expenses 11.41% 0.67% 0.19% 0.32%
93,949.2 7,885 7,865.92 11,549.23
EBT 0.06% 38.22% 51.05% 49.57%
492.9 453,181 2,081,383.90 1,772,485.02
Taxes 0.01% 18.21% 24.47% 23.75%
108.4 215,901 997,439.50 849,167.44
Net Income 0.05% 20.01% 26.59% 25.82%
384.5 237,280 1,083,944.40 923,317.58

40 | P a g e
 QUARTER 2-2011 QUARTER 3-2011 QUARTER 4-2011 QUARTER 1-2011

TOTAL TOTAL TOTAL TOTAL

Sales
Revenue 2,215,622.50 100% 1,687,623.00 100% 4,837,840.00 100% 5,104,106.50 100%
Processing
Cost 505.00 0.02% 2,330.00 0.14% 6,820.00 0.14% 7,895.00 0.15%
Net Sales
2,215,117.50 99.98% 1,685,293.00 99.86% 4,831,020.00 99.86% 5,096,211.50 99.85%
Cost Of good
Sold 820,942.00 37.05% 555,661.00 32.93% 1,555,184.25 32.15% 1,583,216.00 31.02%
Advertising
260,000.00 11.73% 450,000.00 26.66% 567,000.00 11.72% 635,000.00 12.44%
Sales
Expenses 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%

QC
57,400.00 2.59% 105,324.00 6.24% 111,609.00 2.31% 113,770.00 2.23%
Bad Debt
3,973.51 0.18% 4,059.00 0.24% 10,431.63 0.22% 11,979.97 0.23%
Invt./Shippin
g Charges 1,328.40 0.06% 9,276.00 0.55% 2,483.00 0.05% 2,090.70 0.04%
Miscellaneou
s Expense - 0.00% 54,000.00 3.20% 122,000.00 2.52% - 0.00%

EBIT 43.09
901,807.59 40.70% 320,656.00 19.00% 2,084,429.12 % 2,394,155.83 46.91%
Interest
Expenses 10,607.46 0.48% 9,292.23 0.55% 9,265.00 0.19% 15,474.00 0.30%

EBT 42.89
891,200.13 40.22% 311,363.77 18.45% 2,075,164.12 % 2,378,681.83 46.60%
Taxes
426,151.06 19.23% 147,829.11 8.76% 994,453.44 20.56% 1,140,142.25 22.34%
Net Income 22.34
465,049.07 20.99% 163,534.66 9.69% 1,080,710.68 % 1,238,539.58 24.27%

41 | P a g e
 QUARTER 2-2012 QUARTER 3-2012 QUARTER 4-2012 QUARTER 1-2011

TOTAL TOTAL TOTAL TOTAL

100.00
Sales Revenue 100% 100% 100.00%
346,385.56 3,435,602.00 7,096,447.00 3,678,453.75 %

Processing Cost 0.15% 0.07% - 0.00% 0.08%

526.00 2,331.00 3,119.00

Net Sales 99.85% 99.93% 100.00% 99.92%

345,859.56 3,433,271.00 7,096,447.00 3,675,334.75
Cost Of good
34.11% 32.05% 32.72% 32.75%
Sold 118,158.00 1,101,176.00 2,322,138.00 1,204,794.00
Advertising 183.32% 21.74% 14.80% 17.40%
635,000.00 747,000.00 1,050,000.00 640,000.00

Sales Expenses 32.51% 6.16% 8.00% 9.12%

112,622.00 211,478.00 567,876.00 335,485.00
Adm. Expenses 14.43% 1.46% 0.70% 1.36%
50,000.00 50,000.00 50,000.00 50,000.00

QC 32.84% 4.60% 3.66% 4.75%

113,770.00 158,059.00 259,536.00 174,554.00

Bad Debt 0.13% 0.24% 0.17% 0.21%

446.70 8,350.34 12,348.06 7,839.42
Invt./Shipping
0.34% 0.12% 0.02% 0.12%
Charges 1,165.80 4,134.60 1,598.70 4,519.80
Miscellaneous
- 0.00% 0.61% 1.35% - 0.00%
Expense 21,000.00 96,000.00
-
EBIT 32.95% 38.57% 34.20%
(685,302.94) 197.84% 1,132,073.06 2,736,950.24 1,258,142.53
Interest
3.26% 0.72% 0.35% 0.67%
Expenses 11,301.19 24,871.78 24,815.69 24,762.40
-
EBT 32.23% 38.22% 33.53%
(696,604.13) 201.11% 1,107,201.28 2,712,134.55 1,233,380.13

Taxes -96.06% 15.42% 18.32% 16.05%

(332,744.97) 529,831.56 1,300,199.50 590,397.50
-
Net Income 16.81% 19.90% 17.48%
(363,859.16) 105.04% 577,369.72 1,411,935.05 642,982.63

42 | P a g e