Mohammad Ali Jinnah University

Corporate Finance

Subject: Wieghted Average cost of capital

Sumbitted to : Salman Sarwat Submitted By: Samie Mazher Abdul Mateen Mohammad Saleem Wajahat Ali

Submission Date: 24/04/2012

ACKNOLEDGEMENT

Start with the name of ALLAH, who is most Gracious & most Compassionate. I would like to thank ALMIGHTY ALLAH and all of those people who helped me in preparing my Advance Accounting report Mr. ALTAF ABNI the first owner and present partner of AL-SHIRKAT INDUSTRIES Mr. DANISH ABNI (Garments Manager) and Mr. KASHIF ABNI (Printing Manager) specially Mr. KHALIQ (Finance Manager). I would also like to thank all of my office colleagues and seniors who give me their precious information about my firm and make me understand about the history of AL-SHIRKAT INDUSTRIES. All give me highest support and courage with their kindness to develop my skills and show my talent of Study through this report. Special thanks to My Management teacher Mr. Salman Salwat who support us in his best & help me to continue my report and remove barriers by giving me full of his guidance, persistence and belief to do the best, also give me chance to made a practice of my study in practical.

INTRODUCTION & HISTORY

AL-SHIRKAT INDUSTRIES INDUSTRIES is one of the biggest factory in Garments field and has a great nominal in fabrics field. As we know that the best cotton is fertilize in pakistan which may have a lowest cost according to country raw material. AL-SHIRKAT INDUSTRIES built a great reputation and also registereg to ALL PAKISTAN TEXTILE MILLS ASSOCIATION. ALSHIRKAT INDUSTRIES was built in 1986. MR.ALTAF ABNI and MR. SIDDIQUE are the founder of this Industry. They introduce this industry together Mr.SIDDIQUE took retirement then Mr. Altaf Admitted his 2 brothers as a partner. In this industries we deal all kind of printings to raw or gray fabric in large quantity mand also we Export different garments product according to buyers requirements such as Knited jackets, hoody jackets, ladies trousers, pents, T-Shirts and many more. We have a very good international market in export. We export our product to America, Korea, Russia etc. Al-Shirkat Industries also has sales tax registeration which make us connected to FBR for various works which may cause benefit such as Incone tax, sales tax return and many others. 400 workers are working in this factory in various departments. We also have website www.al-shirkat.com. Al-Shirkat Industries has a wide scale in Garments Field according to good quality, fast services and orderly manufacturing which make our customer more satisfied.

Account Category Account Code Account Title Current Assets 1000 Cash 1020 Accounts Receivable 1040 Inventory Work in Progress 1060 Prepayments Property, Plant & Equipment 1100 Equipment Lab 1101 Accumulated Depreciation Lab Equipment 1110 Equipment Office 1111 Accumulated Depreciation Office Equipment 1200 Leasehold Improvements 1201 Accumulated Amortization Leasehold Improvements Other Assets 1800 Deposits Current Liabilities 2000 Current Notes Payable 2010 Accounts Payable 2030 Accrued Wages and Payroll Taxes Withheld Long Term Liabilities 2100 Notes Payable Equity 3000 Common Stock 3001 Retained Earnings Revenue 4000 Commercial Sales 4010 Grant Revenue 4020 Interest Income Direct Program Costs 5000 Direct Labor 5100 Consultants 5200 Equipment 5300 Materials and Supplies 5400 Travel 5500 Other/Miscellaneous 5600 Consortium/Contractual Fringe Benefit Costs 6010 Vacation 6015 Holidays 6020 Sick Leave 6025 Payroll Taxes 6030 401(k) Plan

6035 Group Insurance Overhead Costs 7000 Overhead Labor 7110 Amortization - Leasehold Improvements 7120 Depreciation - Lab Equipment 7130 Depreciation - Office Equipment 7140 Rent 7150 Utilities 7160 Telephone 7170 Equipment Rental 7180 Expendable Equipment 7190 Repairs & Maintenance 7200 General Lab Supplies 7210 Travel 7220 Consultants 7230 Waste Disposal 7240 Training General & Administrative (G&A) Costs 8000 G&A Labor 8010 Amortization - Leasehold Improvements 8015 Depreciation - Office Equipment 8020 Rent 8030 Utilities 8040 Telephone 8050 Equipment Rental 8060 Expendable Equipment 8070 Repairs & Maintenance 8080 Office Supplies 8090 Travel 8100 Consultants 8110 Legal & Accounting 8120 Liability Insurance 8130 Licenses 8140 Dues & Subscriptions 8150 Postage 8160 Recruitment/Relocation 8800 IR&D Labor Unallowable Costs 9000 Interest Expense 9010 Contributions 9015 Exhibits

Business Functions