Submitted to:

Sir Faisal Dhedhi

Submitted by:

Saeed Ahmed
Kamran Ali
Raja Hasan Khan
Mishal Kazmi

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Executive Summary

This project report is developed to exploit potential investment opportunity in setting

up and operating a medium sized Book Depot offering a variety of publications,
copies and editions to the general public. This pre-feasibility gives an insight into
various aspects of planning, setting up and operating a Book Depot for the general
populace. The report is designed to provide relevant details (including technical,
financial and marketing) to facilitate in making the decision by providing various
technological as well as business alternatives. The report also allows flexibility to
change various project parameters to suit the needs of the entrepreneur.

Discount Book Depot is the name proposed for our Book Depot. It will be located into
the mainstream of Pakistani Chowk, Bander Road Larkana. Discount Book Depot
would provide to its customers a whole new experience of reading. The Ownership of
Discount Book Depot would be equally distributed among the four partners. All the
four owners are the students of PAF KIET, studying business administration. The
entrepreneurial skills and an idea of setting up a venture firm is a driving force for all
the three people.

Discount Book Depot will be offer something different. We will charge premium for
this. We will use Market oriented pricing strategy.

Objectives

To establish a presence as a successful local Book Depot and gain a market share
in local industry. To make Discount Book Depot a destination spot for bookworms.

Mission

We want our customers to have the total experience when visiting our Depot and
website as they will learn about this fascinating new "reading culture."

Products

In promoting the Discount Book Depot, we will offer various publications and copies
such as pirated books, international and Indian copies which are new in Larkana. Our
second product is Advertising Journal where we advertise private schools, colleges a
universities and coaching Centres.

SWOT ANALYSIS

Strengths

All types of publication i.e. Pirated, International copy (with old), Indian copy with
latest editions.
Innovative range
Website Forum
Advertisement campaigns and sales programs
Close relationships with university/college/schools teachers
One focal person in each level of education sector

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Weaknesses

Limited Popularity
Less Connections with supplier

Opportunities

Increasing enrolment of registration

Opening of new private schools, colleges and university campuses
Growing market with a significant percentage of the target market
Customer focus.
Delivery service.

Threats

New Entrants
Increasing wage rates
Instability of economic condition

Competitive Comparison

Discount Book Depot has several advantages over its leading competitors:

We expect a high degree of enthusiasm and offer a fun store with friendly staff
that reflects the company's youthful and energetic culture.
Our policy of return one copy with any other copy within week reflects our concern towards
customers.

Store/Shop Stock Value Merchandising Delivery Ad Culture

Kathiyawar Yes Yes No No No Yes
Adabi Manzil No Yes No No No Yes
Sagir No Yes yes No No No

Sales Literature

Discount Book Depot will use advertising and sales programs to get the word out to
customers. 2,000 color brochures to be distributed throughout destination private
education sectors.

Sourcing

Books will be delivered daily by our distributor directly from the main distributer in
Karachi. We have also agreement with Adverting Journal to advertise the Larkana
Markets.

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Market Analysis Summary

Books and Journal expenditures rose day by day with education awareness.

Increasing enrollment percentage in Schools colleges, universities and coaching

Centres.
Increase in new opening of private education institutions.

Market Segmentation

We are targeting students as our primary market. Our secondary market segment is
the "Teachers."

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Students

Teachers

Others

Market Trends

In the previous and current year, many new private schools, colleges, universities,
and coaching Centres are opened. Unfortunately, there are few book shops who have
very little stock and very expensive prices. They charges on own wish.

Industry Analysis

Larkana is the major city of Sindh Province and considered among the largest cities of
the Sindh, there are numerous scholastic institutions that are doing their finest
job to increase the literacy rate in this area by providing excellent educational
services for the community of Larkana.

Colleges/Universities in Larkana such as Chandka Medical College, Institute of Science &

Technology, Cadet College Larkana, Shaheed Mohtarma Benazir Bhutto Medical
University, Quaid-e-Awam University College of Engineering Science and
Technology, Larkana are providing different courses for the students. The

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 students who are located in Larkana and want to get the admission for their
career education then they can select their desired institution from the list.

Among the list of colleges/Universities in Larkana the educational institutions like

Govt.Degree College, SZABIST Intermediate College, Zubaida Fazal Decent
College, Cadet College Larkana and others are offering leading educational
services for the students.

Colleges/Universities in Larkana are offering their unique educational services for

the students to build the healthy sound mind nation. You can see the list of
educational institutes from here just in one place

Marketing Strategy

A combination of local media and local store marketing programs will be utilized at
each location.

Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that as expected by

customer.

The pirated books will be sold at 20 to 30 percent profit margin

International edition will be sold at 30 to 40 percent profit margin
Indian edition will be sold at reasonable profit margin
Other merchandise will be sold at market prices
History, literature, fictional and story books will be sold at Discount Sale
Offers.

Web Plan Summary

Personnel Plan

Our initial employee will include two persons. One maintain clean and hygiene
environment of Depot and other for maintenance of website and forum.

Part- II Investment in Stock

1. PROJECT PROFILE
1.1 Project Brief

The total project cost will be Rs. 1,000,000/= only. It includes Four Stocks Lucky Cement,
Hubco Power Plant, Glaxosmith and Thal Limited. While Thal and Hubco have low
risk and Lucky and Glaxo have medium risk.

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 Total
Low(60%) Med(40%)
Amount
Hubco Glaxo(40%
Thal (65%) (35%) Lucky(60%) ) Total Share

Amount 260,000 140,000 360,000 240,000 1,000,000

Price/Share 272 71 476 231

Total Share 956 1,972 756 1,039 4,723

Cash DIV Pay out %

Stocks
2010 2011 2012 2013 Expected

Glaxo 40.0 40.0 40.0 35.0 38.8

Lucky 40.0 40.0 60.0 80.0 55.0

Thal 80.0 50.0 140.0 200.0 117.5

Hubco 50.0 55.0 60.0 80.0 61.3

Stock DIV Pay out %

Stocks
2010 2011 2012 2013 Expected

Glaxo 15.0 10.0 10.0 10.0 11.3

- -
Lucky - - -

Thal 20.0 20.0 10.0 - 12.5

- - -
Hubco - -

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 No Of Shares Div Per Share Total DIV Return Return(If Sold)

Glaxo 1,039 3.875 4,026.0 1.68% 1.68%

Lucky 756 5.5 4,159.7 1.16% 1.16%

Thal 956 11.8 11,231.6 4.32% 4.32%

Hubco 1,972 6.1 12,077.5 8.63% 8.63%

TOTAL RETURN 15.8% 15.8%

Glaxo Lucky Cement Thal Hubco

Return 2% 1.16% 4.32% 8.63%

Po 231.0 476.0 272.0 71.0

D1 3.9 5.5 11.8 6.1

P1 231.0 476.0 272.0 71.0

Captial Gain 0.0% 0.0% 0.0% 0.0%

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TOTAL Portfolio
FUNDS 2,000,000 Weightage Return Return Return Portfolio Return(If stock is Sold
Investment
in Stocks 1,000,000 50% 15% 15%
Investment
17% 17%
in Business 1,000,000 50% 18% 18%

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 Forecasted Salaries:

No. of employees Per Month Salary of each ANNUAL SALARY

Level of Staf

Assistants/Helpers 1 10,000 120,000

Website Maintainer 1 10,000 120,000
TOTAL: 240,000

Discount Book Depot

Forecasted Profit and Loss Account for the year ending 31 December 2014

Rs. Rs.
Sales 3,000,000
Less: Cost of goods sold:
Opening stock
Add Cost of Goods Sold 2,500,000
2,500,000
Less Closing stock 500,000 2,000,000
Gross profit 1,000,000

Less: Expenses
Wages and salaries 240,000
Rent 120,000
Electricity & Utilities 24,000
Depreciation: Fixtures 50,000
General expenses 30,000 464,000
Net profit 536,000

Less: Profits shared (100,000 x 4) 400,000

Retained Profits carried to next year 136,000

Discount Book Depot

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 Balance Sheet as at 31 December 2014

Rs. Rs.
Fixed assets:
Fixtures & Fittings 500,000
Less Depreciation 50,000 450,000

Security Deposit Advance 200,000

Current assets
Stock 500,000
Bank 100,000 600,000
Total Assets 1,250,000

Current liabilities
114,000

Capital
Partner- Mr.Saeed: 250,000
Partner- Kamran Ali 250,000
Partner- Mishal Kazmi 250,000
Partner- Raja Hasan: 250,000
Retained Earning 136,000
1,250,000

Discount Book Depot

Forecasted Cash Flow Statement for the year ended 31 December 2014
Operating activities
Cash received from Sales 3,000,000
Cash paid for Purchases 2,500,000
Cash paid for Operating expenses 464,000
Tax paid 0
Net cash from operating activities 36,000

Investing activities
Purchase of Fixtures & fittings 400,000
Net cash from investing activities 400,000

Financing activities
Cash brought by partners as capital 1,000,000
Distribution of profits 400,000
Net cash used in financing activities 600,000
Net increase in cash and cash equivalents 236,000
Cash and cash equivalents at beginning of year 0

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Cash and cash equivalents at end of year 236,000

Discount Book Depot

Forecasted Income Statement for the year ending 31 December 2014

Rs. Rs.
Sales 3,000,000 100.0%
Less: Cost of goods sold:
Opening stock -
Add Cost of Production 2,500,000 83.3%
Gross Profit 2,500,000

Less Closing stock 500,000 2,000,000

Gross profit 1,000,000 33.3%

Less: Expenses
Wages and salaries 240,000 8.0%
Rent 120,000 4.0%
Electricity & Utilities 24,000 0.8%
Depreciation: Fixtures 50,000 1.7%
General expenses 30,000 464,000 15.5%
Net profit 536,000 17.9%

Less: Profits shared (100,000 x 4) 400,000 13.3%

Retained Profits carried to next year 136,000 4.5%

Discount Book Depot

Balance Sheet as at 31 December 2014
Rs. Rs.

Fixed assets:
Fixtures & Fittings 500,000
Less Depreciation 50,000 450,000 36.0%

Security Deposit Advance 200,000 16.0%

Current assets
Stock 500,000
Bank 100,000 600,000 48.0%
Total Assets 1,250,000 100.0%

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Current liabilities 114,000 9.1%
Creditors

Capital
Partner- Saeed: 250,000 20.0%
Partner- Kamrani: 250,000 20.0%
Partner- Raja: 250,000 20.0%
Partner- Mishal Kazmi 250,000
Retained Earning 136,000 10.9%
1,250,000 100.0%

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 Discount Book Depot

RATIOS

Profit Margin 536,000 18%

3,000,000

ROI 536,000 54%

1,000,000

Current Ratio 600,000 5.26316

114,000

Working Capital: Current assets - Current liabilities

600000 -114000 = 150000

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