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Dear Shareholders,

I have enjoyed my management of Bayan Customs. As President and CEO of this company I have had to make hard decisions on the company’s feature. Ladies and Gentleman, during the establishment of the company I have stridden with my team of officers and workers to best serve the interests of this company. During the first board meetings we’ve put the basis for the development of the company and a basis to insure its smooth administration. We have selected picture frames as the main product of the company. We have sold a great deal of our inventory and are researching producing more frames. We are also going to continue on our other main product, which is to customize mobile phones, and are looking for a suitable place to sell those customized mobile phones. Furthermore we are looking into new projects to invest in such as a paintball tournament to name on such project, but my fellow shareholders you should keep in mind the short time we had to create the company, select the products, produce them and market them. These accomplishments alone should make you rest assured that our aim is not to only keep your money, but also stride to increase it and give you the greatest possible return on your investment. Our aim is to pursue excellence in the manufacturing of our products and to insure the satisfaction of our customers and the confidence you have put in the management of the company will only add to our ability to accomplish our goals.

Yours sincerely,

Our total capital so far is 580 KD. This is just from stock sales. The price of one share of stock was 10 KD. So from this amount we conclude that we have sold 58 shares of stock. Our income from the sale of frames is 8.5 KD. This amount came only from the sale of frames. The liabilities so far are only the cost of the raw materials and the salaries and wages of the officers and workers. At this present time not all profits from the sale of frames were collected and still there are more frames left to sell. Also, the receipts of the raw materials were not collected. Until now the profit for each stock is 0.1465 KD. This figure was calculated by subtracting the liabilities. So including the profit from the sale of the frames and the sale of stocks, our capital is 588.5 KD. Till this time no liabilities reports were written due to the lack of paper work submitted by the other officers. These figures will be rechecked and a more detailed report will be written in the near future.

Progress, productivity and the pursuit of perfection are the main characteristics of the manufacturing department of Bayan Customs. After prioritizing our manufacturing options, we decided to manufacture the customized frames in the beginning. Rigorous working sessions were held in order to fully utilize our time and achieve the highest standards of production. The frames were manufactured using ready, wood frames as raw materials and, in order to emphasize the "Customs" in our name, colorful paints to customize the frames with. In addition to that, an assortment of beads, shells and various design materials were used to further distinguish them from any other frame. Our goal is to make people recognize our products as unique and be able to distinguish them easily through their creative designs. The productivity of the workers in the company was impressive, as every worker seemed intent and focused on finishing the job at hand. The meetings proved to be successful and productivity was in constant development. As our second product, the customized mobile covers, has been only recently employed, we have not managed to produce many items yet, but we will soon market the product and establish full production.

The purchasing sub-department has also been employed well, having the required materials almost always ready for use in the weekly meetings, therefore increasing efficiency and promising all-around productivity.

Bayan Customs had faced certain problems with regard to selling the frames that were made. The frames have been divided so that each worker and officer takes at least one frame and tries to sell it. This decision was a wise one because the sales have increased. We still didn’t make a profit on anything, but at the rate we are going, we are soon to. Bayan Customs is launching a new product next week, which is paintball. Hopefully this will be a success and we should not face any difficulty in marketing this and assuring a good return on this project. This should make up for all the time and effort Bayan Customs’ workers and officers have put into the frame making.

My job as the vice president of human resources is very simple. At the beginning of every meeting, I take attendance. If a worker is late, I deduct from his pay, but the amount I deduct depends on how much that person was late. Based on our late policy, if a person is late from 1 to 15 minutes a quarter of his pay is deducted; if he is late from 15 to 30 minutes he will lose half of his pay and so on. On the other hand, if a person is absent, I should call him first and ask for the reason of his absence then write the reason for their absence in the sheet I was given. In that sheet I include the person’s name, the reason he gave, and if it was excused or not. Whether or not he has an excused absence, he will lose his pay for the day because he has not worked or helped increase the production of the company in any way. There are excused and unexcused absences because if a person is absent for 3 continuous unexcused times, that person will be fired from the company. I have found over this short period that our absence and late policy help us maintain a healthy prosperous working environment because we provide discipline throughout our meetings. I hope I have made clear what my job is in this company.

During our opportunity at K-Business, we have established many companies. Ours, Bayan Customs, is part of this indulging program. At the first meeting we began laying down certain rules to manage the behavior for our coming meetings, then we sold 23 stocks, each worth 10 KD, at our second meeting. In our third meeting we began collecting suggestions for company names and company products. With this Bayan Customs was born. In total I have recorded 58 sold stocks. There has not been any activity regarding the sale of stocks from one shareholder to another.

As CIO, my job was to publish the company web site and answer any technical questions. This has clearly been done well because of how you have read this (via the web site). The web site will be updated shortly. Things have been going smoothly as far as today. More images will be added to the website. Proof of success is the amount of visitors as the counter has stated. So far, 56 people have viewed the web site, which is not a bad number. The web site also shows the quality and how good our products are.

We have experienced a wonderful Year in K-business. In 6 months we were able to safeguard your rights and give you a 10 percent return on your investment. The company provided a large profit from the selling of our products, which are frames and customization of mobile phones. We have achieved what no other company in the K-business program has yet achieved: we provided profits to our investors. We also established a website to market our products on. The company has prospered due to the belief of our shareholders in us and the belief of our workers in the company. Bayan Customs proudly announces a profit of 57 KD. Thus giving every shareholder who owns a share in Bayan Customs a 1 KD return on his investment.

This could not be achieved without the cooperation of all the company’s departments. We were able to achieve strong sales due to our Sales department. Our manufacturing sessions ran smoothly thanks to our Manufacturing department. Our Manufacturing and Sales departments also worked efficiently because of their close cooperation with the Human Resources Department led by the Vice President of Human Resources who kept thorough records of our manufacturing and Sales sessions. We were able to safeguard our finances due to the efforts of our Chief Financial officer. We were also able to establish our website due to the persistent efforts of our Chief Information Officer. The company was able to stay in contact with its stockholders due to the meticulous records kept by the Corporate Secretary.

Please read the following reports from my officers.

Bayan Customs is a prosperous company thanks to God and the employees. The financial status of the company was good throughout the semester. We began at a 570 KD capital. At the end our revenues became 905.5 KD. After deducting material costs and payroll and the 100 KD sponsor's fee, we were left at a 10% profit to the investors. Stock sales at the initial public offering went for 10 KD each; at the end besides the 10 KD each stock gained an additional 1 KD. So, investors gained 10% in profit for what the amount they invested. Our profits were 57KD. Our company with that kind of profit is considered a successful company. In keeping with our beliefs, we donated 5% of our profits to charity. The reason we had that kind of profit was that our assets were more than our liabilities.

On behalf of the manufacturing division, I would like to comment, as the Vice President of Manufacturing, on the excellent manufacturing that Bayan Customs workers have achieved. The manufacturing sessions that have been held were extremely efficient, having yielded well over 100 units of frames and approximately 20 mobile customization orders. We have upheld a standard of strictness at our meetings that has been unprecedented in other companies. As our workers worked strictly and fervently, the total number of frames accumulated, and so did our profits.

The Purchasing department that lies under the manufacturing division has also been doing a good job, although we have encountered some difficulties in purchasing the correct materials and being ready for each manufacturing session. The materials were fitting to the manufactured goods and thus the manufacturing sessions were ultimately successful.

Over the past five months Bayan Customs experienced ups and downs in sales. However, towards the end of the year we had, we sold over 100 units of frames and approximately 20 mobile customization orders which amounted to over 300 KD in revenue. We sold many of our products in Sultan Center, which was a good idea, and it is what made all the difference in making Bayan Customs a successful company. We were also able to market our product through different advertisements posted in our site and at the Al-Bayan Bilingual School. Overall Bayan Customs was able to sell a great deal of its products which amounted to high revenue.

Over the last three months my job as Vice President of Human Resources for the company of Bayan Customs has not changed much. I still record the absence and lateness of the workers in the company and the excuses for each absence. Our payroll is 46 KD Divided between the workers based on their attendance and lateness. I have even noticed that in the last couple of meetings the workers in the company started attending the meetings regularly and on time. After we finished making our products we decided to sell them in Sultan Center. As we went to sell the frames and mobile strass, we found out how to communicate with the buyer and how to badger them into buying our products. We also enjoyed hearing their excuses if they did not want to buy our product. My time in K-business was rewarding in many ways. I learned how a business works and what the good ways to sell a product are. I also learned that every bit of information counts in a business, and all the workers have to work together and have to give some time and effort for the prosper of the company. My bit is very important, although simple, because the paycheck a worker gets depends on his or her attendance to meetings. I hope I will be able to be part of k-business again.

During My time in Bayan Customs we sold 57 shares of stocks, each with a fixed value of 10 KD. We were able to return the initial purchasing price of each stock with a 1 KD profit added to each stock. My last duty of being Bayan Custom’s Corporate Secretary is to collect all the stocks and to distribute the money given to me by the CFO to all stockholders, and I have completed this task without any complications.

As the CIO, my job has been done. So far, 66 people have viewed the site. This means that if everybody was interested in our product, I the company have made 66 KD at least. Since the last time, the site has improved dramatically. More pictures and graphics have been added. Not only has this site advertised our product, it has given the viewers a glimpse of the genius of our staff.

It was my job to make sure our company purchased the necessary materials so that we could continue our production of custom frames and mobile phones. There were some problems doing this. Nearly the end of the year, I could not find the frames were using any more. This did not help us in selling at Sultan Center, as were selling almost every one we made. We still found enough to produce many frames and phones. I keep records of what we purchased, and we had a successful year.

Finally, I would like to thank all of the company’s shareholders for their confidence in the management and workforce of Bayan Customs

Yours Sincerely,

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