I S Company

Inflatable and Comfort

A casual attitude towards comfort and
safety

German Jordanian University

Supervision by: Dr. Larissa Von Alberti

2nd Semester 2009/2010

Prepared by:
Omar Abbas Ahmad Abu-Obeid Thaer Tafesh
Subhi Khader Hazem Ajarma

ISC Company
 FOR THE MONTH ENDED MARCH 31,2010

INDEX

Page

Item 1 CEO Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Item 2 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Item 3 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Item 4 marketing plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Item 5 investor information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Item 6 contingent liability (*note8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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Letter from your CEO

With the introduction of Another example on how we are going to

our new inflatable seats in achieve that is through our safety and
the New York auto environmental factors. Safety features comply
show in the new 2010 Cadillac estate, (ISC) with the highest level needed by the safety
insured a strong start in the market of compliance tests in both the USA and Europe;
luxurious seating's. These past three months, even with the inflatable child seats. As for the
selling to our main businesses Lexus and environmental factor, we use top of the line
Cadillac, we generated an polyurethane in our foam production, for
income before tax of {5,914,403 million}. example, in order to insure an
Sales during this period generated cash of over environmentally friendly
8 million and over 4 million on account. During (recyclable)materials in our production. All of
this year the economy is regaining shape and this was confirmed by magazines like
recovering from the downturn, which means TreeHugger and E-magazine.
that we are going to extend our work in the
United States and Europe over the few years Another good thing, is that Cadillac's and
to come. That said, we intend not only to Lexus's 2010 cars were reviewed by the
introduce the inflatable child seats, but also popular car show "top gear" and several
our voice command control seats which is in other shows (e.g. Edmunds inside line,
the process of research and development. As Evo- magazine) and described the seats as
the name implies, this system is "very comfortable, cozy and accommodating at
devised to control the seat via sound orders. rough roads". Some said that the inflatable
Both these systems allowed us to start child seats and the upcoming voice command
discussion with the main European car control is something ahead of its time,
manufacturers like Mercedes for future futuristic and innovative. These reviews give us
business. These next years is were we intend the confidence and drive to be the market
to increase our market share and catch up leader. In order to keep that level we will
with the market leader "Johnson control" and expand our R&D department for even more
we believe that we can achieve that through features so we are looking forward to the
our innovations and dedication. upcoming years.

Omar J.Abbas, president and chief

executive officer

3
 Balance Sheet for 3 months at the end
of 31-March-2010

Assets:
current assets: Notes JD
Cash A/R Note 5 8,134,125
Inventories 4,646,400
Note 6 300,000
total current 13,080,525

Non-current
assets: Land-at cost
Buildings-at cost 150,000
Acc.dep. 300,000
Equipment of R and
5,000
D-at cost
Acc.dep. 300,000
Equipment of Factory-
5,000
at cost
Acc.dep. 28,800,000
Patent 466,667
NOTE 7 235,000
total non-
current 29,308,333

Total assets 42,388,858

Liabilities and Stockholders'

Equity:

current
liabilities:
interest
payable 537,413

Non-current
liabilities

bonds payable NOTE 9 30,000,000

Total liabilities 30,537,413

Stockholders'
Equity

Investments 11,851,445

total Liabilities and

Stockholders' Equity: 42,388,858

2
 Income statement
for the 3 months ended March 31/2010
JD JD Notes
27,878,400 Revenue
19,031,040 NOTE 1 Co.G.S
8,847,360 Gross Profit

Operating Exp.
2,160,000 NOTE 2 salaries exp.
8,376 Rent warehousing exp.
24,999 Acc. Dep.
2,343,375 150,000 NOTE 3 Other exp.
6,503,985 Income before dep.

51,669 NOTE 4 Dep. Exp of equipment

Earnings before interest and

6,451,816 tax
537413 interest expense
5914403 Earnings before tax
946304 Tax 16%
4,968,099 Net Income

3
 NOTE(1)
MATERIAL COSTS
COST PER
RATIO UNIT(JOD) MATERIAL NAME
20% 80JD metal structure
9% 36JD foam
3% 12JD stickings
18% 72JD climate system
15% 60JD Safetey system (inflatable child seats)
15% 60JD electronic components
20% 80JD TV's 13

100% 400JD Materials cost per seat

100% 13JD Labor cost per seat
52JD Manufacturing overhead per seat
465JD Total Manufacturing cost per seat

4
NOTE (2)

DEPARTMENT NUMBERS AND EMPLOYEES

NUMBER OF DEPARTMENT
EMPLOYEES NAME

150 purchasing & warehousing

25 HR

200 selling

500 production

50 finance & accounting

150 R &D

SALARIES EXPENSES

$ $
DATE CREDIT DEBIT
SALARIES EXPENSE(purchasing &
31/1 50000 warehousning )DEPARTMENT
50000 CASH

CREDIT DEBIT
31/1 30000 SALARIES EXPENSES (HR DEPARTMENT )
30000 CASH

CREDIT DEBIT
31/1 300000 SALARIES EXPENSES (SELLING DEPARTMENT)
300000 CASH

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 CREDIT DEBIT
31/1 200000 SALARIES EXPENSES (PRODUCTION DEPARTMENT )
200000 CASH

CREDIT DEBIT
31/1 40000 SALARIES EXPENSES (FINANCE AND ACCOUNTING DEPARTMENT )
40000 CASH

CREDIT DEBIT
31/1 300000 SALARIES EXPENSES (R $ B )
300000 CASH

TOTAL 920000 920000

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NOTE (3)
Other Expenses

R & D: 90,000

Advertisement: 36,000

Transportation: 20,000

Food and drinks for R&D + production department: 4,000

NOTE (4)

15,556JD Dep. Of equipment Dep. Base 15 years

1,667JD Dep. Of R&D equipment

Cost of equipment = 28,800,000

Cost of R & D equipment = 300,000

NOTE (5)
Cash inflow :

Bonds payable were received 35,827,500

Cash received from sales + 23,232,000

Total cash 59,059,500 JD

Cash outflow

(18,732,000+2,760,000+8,376+24,999+150,000+450,000+28,800,000) = 50925375 JD

NET CASHFLOWS(CASH FLOW IN HAND ) = 59,059,500 -50,925,375 = 8,134,125 JD

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NOTE (6)
INVENTORIES

trans 1 Raw materials 18,732,000

cash 18,732,000
trans 2 WIP 18,432,000
Raw materials 18,432,000

INVENTORY = RAW MATERIALS WORK IN PROGRESS(WIP)

18,732,00 - 18,432,000 = 300,000,000

NOTE (7)

Intangible asset

PANTENT 235,000 :

-registration fees 200,000

-safety compliance test 35,000

Contingent liability

Note (8):

(After that xyz filled a law suit and after consulting our attorney it turned
out that the 1.5 million law suit liability is only likely to occur .the Xyz
Company is accusing us of copying these inflatable seats that are not
designed for cars but has similar materials)

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 NOTE (9)

BOND

Date Cash paid 8% Interest expence 6% Premium amortized Carrying ammount of bonds
35,827,500 1/1/2010
35,577,150 250,350 2,149,650 2,400,000 12/31/2010
35,311,779 265,371 2,134,629 2,400,000 12/31/2011
35,030,486 281,293 2,118,707 2,400,000 12/31/2012

1/1/2010 Dr. Cash 35,827,500

Cr. Premium on B/P 5,827,500
Cr. Bonds payable 30,000,000

2,149,650 Dr. Interest expence 12/31/2010

250,350 Dr. Premium on B/P
Cr.Cash 2,400,000

2,134,629 Dr. Interest expence 12/31/2011

265,371 Dr. Premium on B/P
Cr. Cash 2,400,000

2,118,707 Dr. Interest expence 12/13/2012

281,293 Dr. Premium on B/P
Cr. Cash 2,400,000

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 Marketing plan

Current Marketing Situation:

Market description:

The COMPANY targets international important companies such as "BMW,

Bently, Mercedes, and Maybach". and to convince them to use our product,
and companies that care about the environment, since we in our company
use recyclable materials.
We already sell our product to other international companies such as
"Cadillac, Lexus ".

Product Review:

We offer in our COMPANY:

Safety seats "inflatable child seats"

Comfortable
Climate control
Massage seats
Fitted TV's
Top of the line seats Stitching
Environmental recyclable material "polyurethane"

Competitive Review:
Competitive analysis:

The main competitor in our market is Jonson control, this company already sells to
our targeted customers "BMW, Bently, Mercedes, and Maybach".

Jonson control contains the majority of the market share and is a huge international
multi sale.

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 Strengths, Weaknesses, Opportunities, and Threats Analysis
Weaknesses Strengths
Lake Brand awareness & Image. High technological features.
Low experience New working methods
'environmental'.
Highly qualified work force.
competitive price.

Threats Opportunities
Jonson future planed innovations,
control may compete our innovative allow us to gain our
ideas by introducing better features competitor main customers.
to the market.

Marketing Strategy
Positioning:

We as a car production seats company are trying to build a green image

about our product; this Image should describe our position in the market that
how our seats is healthier, associated with high technological styles,
furthermore, we are introducing a high value options such as inflatable car
seats... etc, and a sustainable lifestyle.

Competitor:

Car Seats
Jonson control "@"

Perceptualmap:

Provides comforts

Our company

Inflatable child seats "safety" safety equipment

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 @

Experience

Marketing Mix "4P's":

Product:

The product itself that provide, comfortable car seats, with high quality,
uniqueness and value.

Place:

Jordan.

Promotion:

Through our website, sales persons "B2B", demonstrations customers to

show our targeted customers all of our innovations "Inflatable car seats, and
future innovations voice command control".
Introducing our seats and innovative features in various Auto shows,
especially The Frankfurt Auto Show to attract the most important German
auto makers.

Price:

We are planning to provide competitive prices.

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 Investor Information

Intermediate Accounting 2 and international standards Project

Chief executive officer "Omar Abbas"

Chief Financial officer "Ahmad Abu-Obeid"
Financial Accountant "Thaer Tafesh"
Bookkeepers "Subhi Khader and Hazem Ajarma"

Main investor: Dr. Larissa Von Alberti

Formoreinformation:

We will be more than happy to hear from you!

Feel free to contact us for any other information!

Via e-mail
o Mercedes_mp4@hotmail.com
Via phone:
o 00962-0795496178

It was a pleasure to do this project :)

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