AL HASEELA NEWS LETTER PROJECT REPORT

PDF created with pdfFactory Pro trial version www.pdffactory.com

TABLE OF CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. The Project...2 The Background.......2 The Project Objective......2 Promoters & Management...2 The Market & Competitors......3 SWOT Analysis.......4 Cost of Project......5 Sources of Finance...5 Appendix ...6

1. Projected Balance Sheet for 2. Projected Profitability Statement 3. Projected Cash Flow Statement

PDF created with pdfFactory Pro trial version www.pdffactory.com

1. The Project
The purpose of this document is to identify the financial viability in establishing a printing press in the Kingdom of Bahrain.

2. The Background
The promoter Mr. Dhafer Al Zayani is a man of proven track record and has been in the field of printing and related business for a considerably long time. His rich experience in this line of business made him realise that there is tremendous potential for establishing a printing business in the kingdom. It is in this context that the present project is envisaged.

3. The Project Objective

The key objectives of the project are as follow: Establish an printing press in the Kingdom of Bahrain. Market the product of this press in the island effectively and efficiently. Diversify the present operations in the printing related field. Making value additions to the present operations and thus to serve the present customer base effectively. Be a leading player in this line of business in the long run.

To start with, in the initial stage of operation the project will concentrate mainly on printing works including printing to meet the requirements of offices like letterhead printing, brochure printing, envelopes and other similar office stationeries. In the medium run the project will target the printing and publishing of books and other periodicals and may respond to tenders and other government printing job outsourcings depending upon the effective unutilised capacity, if any, at that time. In the long run, the project will target to be a leading player in the line of printing and publishing business in the island.

4. Promoters & Management

The promoter Dhafer Al Zayani is presently working as Managing Director in Al Haseela magazine , Kingdom of Bahrain since past the year 2004. Prior to joining the insurance company he was worked with Al Fardan Printing Press for 2 years. Dahfer Al Zayani has rich experience in printing industry as his parner had printing press in Qatar. The promoter presently owns Al Haseela News Letter W.L.L. It was established in the year 2004. It is engaged in printing of free classifieds magazines. Due to the increased competition in free classified magazines the management is planning to diversify the business and start a printing press.

PDF created with pdfFactory Pro trial version www.pdffactory.com

5. The Market & Competitors

The Market The market of printing industry in the island is already dominated by well established players with good infrastructure and sound financial backing. The promoter, as mentioned earlier has been in the printing and office supplies related business for a considerably long time. The business, Pearl Island, engaged in the business of advertisement and public relations, presently procures orders for advertisement in print media, and since it does not have printing press, outsource such orders to other printing presses and thereby executes such orders. Hence the concern is forced to share their margin with other printing press. It is in this context, the promoter envisaged the idea of establishing an offset printing press. If such a printing press is established, the orders procured by Pearl Island can be executed internally without outsourcing it to others. Apart from this, by using effective marketing tactics and utilising the present contacts in the market, orders can be procured and executed and thereby the resources can be utilised in an effective and efficient manner to reap profits. The Competitors The printing industry in Bahrain is mainly dominated by leading players like (1) Oriental Press (2) Union Press (3) Arabian Printing Press These concerns dominate the printing industry in the kingdom and accounts for around 60% of the market share. Apart from the leading players mentioned above, there are other competitors who are also well established in this field are (a) (b) (c) (d) (e) Salman Printers National Printing House Al Manar Printing Najah Printing Al Hashimi Printing

The third segment comprises of concerns low level players.

6. SWOT ANALYSIS
Strength: The promoter has rich experience in printing and office supplies related business and thereby have wide contacts in the market. The present marketing network can be utilised efficiently to procure more orders. Weakness: The printing industry in the kingdom is already dominated by well established players with considerable capital outlay and infrastructure and making inroads into such market will be difficult and make take time to get established.

PDF created with pdfFactory Pro trial version www.pdffactory.com

Opportunity: The printing industry, in the island is seen to be growing at a fast pace over the past decade. Moreover, with the investor friendly atmosphere provided by the government of Bahrain, more investors are likely to step in the years to come and consequently a boom is expected in the printing industry too. This opportunity can be utilized to get established in the market. Many of the European countries are outsourcing their printing jobs to GCC countries considering the quality of printing and cost effectiveness. Since this is a labour intensive industry and labour is cheap in this region as compared to European countries more printing jobs are likely to flow into this region over the coming years. This is expected to fuel the growth of the industry in this region. If a printing press is established, the orders procured by Pearl Island can be executed internally without outsourcing it to others. Apart from this, by using effective marketing tactics and utilising the present contacts in the market, orders can be procured and executed and thereby the resources can be utilised in an effective and efficient manner to reap profits. Threats: With the advancement in technology new cost effective printing techniques may replace the existing ones and in such case the technology of offset printing proposed to be used by the project may become obsolete.

7. COST OF PROJECT The project will be located on rented premises and the estimated cost of the project is as follows: Vehicles (2 Nos) Machinery Furniture & Fixtures Preliminary & Pre Incorporation Computers & Office Equipments Working Capital Amount (B.D.) 5,500 200,000 1,500 1,000 3,500 38,500 250,000

8. SOURCES OF FINANCE Partners 250,000 250,000

PDF created with pdfFactory Pro trial version www.pdffactory.com

APPENDIX 1 AL HASEELA

PROJECTED INCOME STATEMENT FOR SEVEN YEARS (Expresed in Bahrain Dinars) PARTICULARS Sales Direct Expenses YEAR - I 422,000 (253,200) YEAR - II 548,600 (329,160) YEAR - III 603,460 (362,076) YEAR - IV 663,806 (398,284) YEAR - V 730,187 (438,112) YEAR - VI 803,205 (481,923) YEAR - VII 883,526 (530,115)

Gross Profit Other Income

168,800 1,000

219,440 1,200

241,384 1,500

265,522 1,600

292,075 1,700

321,282 1,800

353,410 2,000

Total Income

169,800

220,640

242,884

267,122

293,775

323,082

355,410

Indirect Expenses Staff & Staff Related Communication Expenses Rent Vehicle Running Expenses Other Selling & Distribution Expenses Rates & Insurance Miscellaneous Expenses Profit / (loss) before Depreciation & Interest Depreciation Preliminary Expenses Written Off (18,000) (1,800) (3,600) (3,600) (1,800) (1,500) (1,500) (18,000) (1,890) (3,600) (3,780) (1,980) (1,500) (2,000) (18,900) (1,985) (3,600) (3,969) (2,178) (1,500) (2,200) (18,900) (2,084) (3,600) (4,167) (2,396) (1,500) (2,500) (19,845) (2,188) (3,600) (4,376) (2,635) (1,500) (2,700) (19,845) (2,297) (3,600) (4,595) (2,899) (1,500) (3,000) (20,837) (2,412) (3,600) (4,824) (3,189) (1,500) (3,200)

138,000 (15,433) (1,000)

187,890 (15,433)

208,553 (15,433)

231,975 (15,433)

256,931 (18,633)

285,346 (16,533) -

315,848 (16,533) -

Profit / (loss) before Interest

121,567

172,457

193,119

216,542

238,297

268,813

299,314

Interest on Loans

(2,767)

(1,098)

(967)

(651)

(337)

(51)

Net Profit / (loss) for the year

118,800

171,359

192,152

215,891

237,960

268,762

299,314

PDF created with pdfFactory Pro trial version www.pdffactory.com

APPENDIX 2 AL HASEELA

PROJECTED CASH FLOW STATEMENT FOR SEVEN YEARS (Expressed in Bahrain Dinars) Year - I Operating Activities Net Profit / (loss) after Depreciation Add: Depreciation Add: Preliminary Expenses written off (Increase)/ Decrease in Receivables / WIP (Increase)/ Decrease in Inventories (Decrease) / Increase in Creditors/ Payables 118,800 15,433 1,000 (39,563) (6,330) 31,650 120,990 Investing Activities Acquisition of Fixed Assets Preliminary / Startup Expenses (210,500) (1,000) (211,500) Financing Activities Capital Introduction Term loan Payment of term loan 60,000 20,000 (2,250) 77,750 Cash/ Cash Equivalents At the beginning of the year Net Increase/ (Decrease) during the year At the end of the year (12,760) (12,760) (12,760) 178,020 165,260 165,260 201,235 366,495 366,495 224,786 591,281 591,281 234,103 825,383 825,383 282,831 1,108,215 1,108,215 313,136 1,421,350 (4,500) (4,500) (4,500) (4,500) (4,500) (4,500) (4,251) (4,251) (16,000) (16,000) (11,868) (1,899) 9,495 182,520 (5,143) (823) 4,115 205,735 (5,658) (905) 4,525 229,286 (6,223) (996) 4,979 254,354 171,359 15,433 192,152 15,433 215,891 15,433 237,960 18,633 268,762 16,533 (6,845) (1,095) 5,476 282,831 299,314 16,533 (7,531) (1,205) 6,024 313,136 Year - II Year - III Year - IV Year - V Year - VI Year - VII

PDF created with pdfFactory Pro trial version www.pdffactory.com

APPENDIX 3 AL HASEELA PROJECTED BALANCE SHEET FOR SEVEN YEARS (Expressed in Bahrain Dinars) Year - I ASSETS Non Current Assets Tangible Fixed Assets Priliminary Expenses 195,067 Current Assets Inventories Receivables / Work in Progress Cash & Cash Equivalents 6,330 39,563 (12,760) 33,133 Total Assets 228,200 8,229 51,431 165,260 224,920 404,553 9,052 56,574 366,495 432,121 596,321 9,957 62,232 591,281 663,470 812,237 10,953 68,455 825,383 904,791 1,050,925 12,048 75,300 1,108,215 1,195,563 1,325,163 13,253 82,831 1,421,350 1,517,434 1,630,501 179,633 164,200 148,767 146,133 195,067 179,633 164,200 148,767 146,133 129,600 129,600 113,067 113,067 Year - II Year - III Year - IV Year - V Year - VI Year - VII

EQUITY & LAIBILITIES Capital & Reserves Proptietor Capital Account Retained Earnings 60,000 118,800 178,800 Non Current Liabilities Non Current Portion of Term Loans 13,250 13,250 Current Liabilities Trade Creditors & Other Payables Current Portion of Term Loans 31,650 4,500 36,150 Total of Equity & Liabilities 228,200 41,145 4,500 45,645 404,553 45,260 4,500 49,760 596,321 49,785 4,251 54,036 812,238 54,764 54,764 1,050,926 60,240 60,240 1,325,164 66,264 66,264 1,630,502 8,750 8,750 4,250 4,250 60,000 290,158 350,158 60,000 482,311 542,311 60,000 698,202 758,202 60,000 936,162 996,162 60,000 1,204,924 1,264,924 60,000 1,504,238 1,564,238

PDF created with pdfFactory Pro trial version www.pdffactory.com