Thank you for your example, I understand how you have done this, but what I need to know, is how I get the folds on the top also, with some circular or other shape areas, which are flat where a vase or bottle, jug etc would sit.

Here is a link to an example of what I am trying to achieve, although more extravagant than what I need to get started.

http://www.turbosquid.com/3d-models/life-spot-light-ma/313824