Siam Rubber Company Limited

a
Preface
This project is a part of 1203302 Project Feasibility Study and Evaluation course in
the second semester of 2010 year academic. In this project is study the feasibility of located
Para rubber factory in Chiangrai which are included generally of Para rubber business
management, competition analysis, market feasibility, the technical process in Para rubber
factory, financial feasibility, and also risk management.
This project makes everyone who interested to get knowledge and information about
Para rubber factory before make decision to investment, including pre-operation process and
operation process of Para rubber factory, for the benefit to investment and profit of doing this
Para rubber factory. We expect that our project will provide benefit more and more interested
person, moreover, if they are any error in this project or whatever, our group will made an
apologize at this opportunity.
Members
Miss Duangkamol Saktonthai
Miss Surasawadee Trakulou
Mr. Apichit Miengmern
Mr.Chainaring Umalee
Miss Sukanya Watcharasavee
Miss Arpawadee Deeprom
c
Content
Preface .................................................................................................................................. b
Chapter 1 .............................................................................................................................. 2
Introduction .......................................................................................................................... 2
1.1 Background and Significance of the Project ................................................................. 2
1.2 Project Objective ......................................................................................................... 3
1.3 Benefit of Project ......................................................................................................... 3
1.4 Activities / Time Frame ............................................................................................... 4
Chapter 2 .............................................................................................................................. 6
Industry Profile ..................................................................................................................... 6
2.1 Nature of Industry ........................................................................................................ 6
2.2 Situation of Industry .................................................................................................. 10
2.3 Product ...................................................................................................................... 16
2.4 Vision ........................................................................................................................ 19
2.5 Mission ...................................................................................................................... 19
2.6 Business strategy ....................................................................................................... 19
Chapter 3 ............................................................................................................................ 22
Market Analysis .................................................................................................................. 22
3.1 PEST Analysis ........................................................................................................... 22
3.2 Competition Analysis................................................................................................. 28
3.3 Competitive Analysis ................................................................................................. 40
3.4 Supplier Analysis ....................................................................................................... 41
3.5 Customer analysis ...................................................................................................... 42
3.6 STP Analysis ............................................................................................................. 45
3.7 Marketing Mix Strategy ............................................................................................. 47

d
3.8) Sales Forecast/Profit Estimation ............................................................................... 60
3.9 Price Forecasting ....................................................................................................... 69
3.10 Marketing Expense .................................................................................................. 74
Conclusion in Marketing Feasibility .................................................................................... 81
Chapter 4 ............................................................................................................................ 83
Technical Feasibility Study ................................................................................................. 83
4.1 Cost of register .......................................................................................................... 83
4.2 Location .................................................................................................................. 100
4.3 Operating analysis ................................................................................................... 111
4.4 Production Process................................................................................................... 114
4.5 Wastewater treatment process .................................................................................. 122
4.6 Logistic.................................................................................................................... 125
4.7 Management Analysis .............................................................................................. 126
4.8 Employee Salary ...................................................................................................... 138
4.9 Stationary Expense .................................................................................................. 138
4.10 Electricity Expense/month ..................................................................................... 139
4.11 TOT Internet and Telephone expense/Month ......................................................... 141
4.12 Car Insurance ......................................................................................................... 141
4.13 Fire Insurance ........................................................................................................ 142
4.14 Employee Motivation ............................................................................................. 142
4.15 Employee Training ................................................................................................ 143
4.16 Staff Shirt .............................................................................................................. 144
Administrative Expense .................................................................................................... 145
Product and Operation Cost ............................................................................................... 150
Conclusion in Technical Feasibility ................................................................................... 152
Chapter 5 .......................................................................................................................... 154
Financial Analysis ............................................................................................................. 154

e
5.1 Cost of investment ................................................................................................... 154
5.2 Depreciation ............................................................................................................ 155
5.3 Income statement ..................................................................................................... 159
5.4 Statement of cash flow ............................................................................................. 160
5.5 Balance Sheet .......................................................................................................... 160
5.6 Internal Rate of return .............................................................................................. 191
5.7 Net present Value .................................................................................................... 191
Chapter 6 .......................................................................................................................... 194
Risk Management ............................................................................................................. 194
6.1 External Risk ........................................................................................................... 194
6.2 Internal Risk ............................................................................................................ 196
6.3 General Risk ............................................................................................................ 196
6.4 Financial Risk .......................................................................................................... 198
Conclusion in Risk Management ....................................................................................... 202
Chapter 7 .......................................................................................................................... 204
Summary........................................................................................................................... 204
7.1 Summary Project of Feasibility Study ...................................................................... 204
Reference .......................................................................................................................... 208
Appendix ............................................................................................................................... i
1
CHAPTER 1
2
Chapter 1
Introduction
1.1 Background and Significance of the Project

Para rubber is the significant agriculture product in Thailand. It has rather high market
potential as local demand and demand for export quit high. From Thailand Exporting Para
rubber statistic 2009, the quantities which Thailand can export Para rubber was 2,740,089 ton
and took 146,263.6 million baht for the value [The Thai Rubber Association, 2010]1. That is
the reasons why Para rubber is the most important agriculture in Thailand. In addition, the
demand of Para rubber can be increasing because people are more interested the new
industrial drop which is Para rubber. Former Thailand has the Para rubber industry only in the
south of Thailand because it is the first area where growing its Para rubber, but nowadays
Para rubber can be grow in all area of Thailand especially in the north and northeast of
Thailand. Anyways, there are a few businesses to support high demand of Para rubber in the
new area where is north of Thailand.
Para rubber factory is one that can support the production from agriculturist because it
is the place where receives the products from Para rubber such as concentrate latex and air
dried sheet, can process the better qualities of Para rubber such as ribbed smoked sheet
(RSS), block rubber, and crepe rubber as well. In addition, the business about Para rubber in
Thailand can be certainly growing in the future because the demand for exporting Para rubber
of Thailand is quite high and also the people used Para rubber in daily life for example tires,
medical equipments, and etc. However, Thailand has expanded the area for growing Para
rubber which is the important industrial drop of Thailand to all areas. North of Thailand is the
new area where government supported agriculturists to expand growing Para rubber. From
the statistic, there are 600,578 rai in 2008 for growing Para rubber in the north of Thailand.
[Rubber Thai, 2010]2. Also, one province where is interested for run the business for
supporting the production from Para rubber is Chiangrai province because Chiangrai
province is ranked in the number two of growing Para rubber in the north of Thailand
(Rubber Thai, 2010)2, located in the triangle economy where border with the GMS countries,
also have a few Para rubber factory due to most of agriculturist in Chiangrai cannot be
harvest the production of Para rubber yet. If we have the company where receives the Para
rubber production from agriculturist and also can be processes the better qualities for sale, we
3
can meet to the successful and gain more profit from the business in the north of Thailand as
well.
Thus, Siam Rubber company limited have the new point of view that there are many
Para rubber companies in the north of Thailand and located the factory in Mae Jan district,
Chiangrai province, for receive Para rubber’s product from agriculturist who produce the
Para rubber. The reasons why Siam Rubber Company limited located in Chiangrai because
the agriculturists in Chiangrai are interested in Para rubber, many fields of Chiangrai is used
for growing Para rubber, there have a few business for receive the production form Para
rubber in Chiangrai, and also nearly to receive raw material from supplier. In the future, Siam
Rubber Company limited can make more customers because we are the first Para rubber
businesses where the customers can be rely in our qualities and services.
Source: [http://www.thainr.com/th/detail-stat.php?statID=47]1
[http://www.rubberthai.com/statistic/stat_index.htm]2
1.2 Project Objective

1. To analyze the situation of Para rubber industry in Thailand.
2. To analyze the market feasibility of Para rubber industry.
3. To analyze technical and management in Para rubber factory.
4. To analyze all of financial used in Para rubber factory.
5. To analyze risks that can effect to the Para rubber factory.
6. To study the feasibility of located Para rubber factory in Chiangrai.
1.3 Benefit of Project

1. Able to identify the opportunities to do a project.
2. Able to apply the knowledge from studying to the real situation.
3. Able to identify all of financial and risk management.
4. Able to understand the situation of Para rubber in Thailand.
5. Know how to manage and operate of choose business.
4
1.4 Activities / Time Frame

Gantt chart and Time Frame of the study
November December January February
Week 1
Week 2
Week 3
Week 4
Week 1
Week 2
Week 3
Week 4
Week 1
Week 2
Week 3
Week 4
Week 1
Week 2
Week 3
Week 4
Activities
1. Topic submission
2. Introduction submission
- Introduction to project
feasibility
study
3. Study the industry profile -
Product Characteristics
4. Analyze the market feasibility
- Market Analysis
5. Topic presentation
6. Study technical Feasibility
- Production and Operations
- Process of Management
7. Analyze the financial of our
business
- Financial Statements
Generating
- Financial Statement Analysis
8. Study and manage the risk of
our business
- Risk Analysis and Other
Analysis
9. Project Advertising
- VCD/DVD Ads.
10. Writing and analyze the report
11. Presentation
12. Conclusion the feasibility of
business
5
CHAPTER 2
6
Chapter 2
Industry Profile
2.1 Nature of Industry
Rubber tree is a kind of standing timber which planted in basin of Amazon’s river
within area of Brazil and Peru. Local people of Middle and South American call Caoutchouc
means cried tree. Until 1770s, Joseph Prisley found its rubber could erase the black print of
pencil and not be damage to paper so they call Rubber. It has been called in only England and
Holland. For the other countries, most of them call Caoutchouc. Then, amount of rubber tree
was increasing in South America and found that the best quality rubber is kind of Hevea
Brasiliensis. Then, it was planted widespread. The centre of Hevea Brasiliensis’s trading was
set in seaport names of Para in Amazon’s riverbank, Brazil. After that, development of rubber
in industrial was increased and rubber is demanded and high price in marketing. Therefore,
many countries pay attention in rubber tree.
Thailand is one of them who import the rubber as well. A beginner of rubber planting
importation is Chaophraya Ratsadanupradit who first plant 32 of Para rubber in Thailand
during of 1899 to 1901. Chaophraya Ratsadanupradit is the city ruler of Trung province, and
then rubber tree was breeding in more regions. Rubber tree has been planted in every part of
Thailand. Therefore, Rubber is the important industrial crop in Thailand. Moreover, Thailand
could plant the rubber first ranked in the world. More than twelve million rubber fields which
7
was planted in south, east and north east of Thailand. In 2001, more than 2.6 million tons was
produced and 2.35 million tons for exportations, so it was revenue about 75,000 million bath.
Thus, a lot of rubber industrials are set in Thailand. Rubber industrial in Thailand are
separated into two parts, first one is fresh latex and second one is liquid latex. It could be
produced to smoky rubber, piece rubber, and thicken latex. In addition, 70 percent of natural
rubber came from Thailand, Indonesia, and Malaysia. The products which are smoky rubber
and thicken rubber were mostly produced by Thailand.
Source: [http://www.reothai.co.th/Para1.htm]
2.1.1 The Rubber Situation in 2011

In the forthcoming of year 2011, it is forecasted to have a rather positive trend of the
world economic recovery. From the data of the International Monetary Fund (IMF), the
global GDP is estimated to be at the rate of 4.3% in 2011. As the further information, there is
an expectation on growth rate of GDP in the Asian zone: China 9.9%, India 8.4%, Indonesia
6.2% and Thailand 5.5% orderly. That would bring a good impact on automotive industries
and higher natural rubber demand. In addition, the severely variable weather (both an
inundation & drought) has been directly effecting to the production capacity of the main
rubber producing countries. This factor has also accelerated many buyers to replenish their
inventories because of the anticipation on the upper rubber prices. From IRSG’s data, it was
expected that the global NR productivity would reach to 10.99 million tons by having been
quoted as Thailand 3.44 million tons; Indonesia 2.86 million tons; Malaysia 1.11 million tons
and; India 916,000 tons. However, the most interesting rubber-producer that everyone should
keep an eye on is Vietnam. The country’s production capacity was set at the rate by 795,000
tons that could pledge its status to become the 6th rubber producing country of the world.
Anyway, the rubber demand in the world market was anticipated to be increased by the rate
of about 10.97 million tons. The higher demand would come from Asian Market (especially
China, India & South Korea) and the market in South America such as Brazil. For the rubber
consumption, China has been still forecasted to be the largest consumer (with the rate of 3.75
million tons) followed by India (1.06 million tons), USA (879,000 tons) and Japan (769,000
tons) respectively.
8
In Thailand, the rubber prices seem to have an in fluctuation as the same period of a
few years ago. It is owing to some risk factors as follows: (1) Risk factor in production: The
adverse climate extremely effects to the production quantities; (2) Risk factor in demand: The
positive side is the much higher demand of China. In 2010, China could produce autos over
17 million units and it was expected to become Auto Manufacturing center in a decade later
(in year 2021) that would have an immense capacity reaching to 30 million car units per year.
Additionally, China would be improved for becoming as a base of Green Auto Manufacturing
utilizing the alternative energy and entering to play much more roles in setting up the World
Automotive Standard in Futures. In contrary, the rather increasing rubber prices would cause
the Bridgestone Corporation Co., Ltd. to conduct the new concept of production technology
development in order to apply for a reduction on NR & SR consumption to be around 50% in
2021. The main objective is to decrease the risk in raw material costs (without any loss of
physical performance of the tires). That may cause the lower demand of natural rubber as
well; (3) Risk factor in requirement of environment-friendly tires: Many plants need to
reduce Co2 amount in the manufacturing process. So, the special performance (Low viscosity
& Low gel) is to be required. The Bridgestone Corporation Co., Ltd. introduces a modern
innovation called “Lov” which is under the ISO regulation. Thus, the entrepreneurs should
continually follow up the significant matter for their own competitiveness benefits and; (4)
Risk factor in finance: The most interesting point is Baht currency. This issue would cause a
disadvantage in export competitiveness of Thailand among the trade competing countries in
the world market.
Source: [http://www.thainr.com/en/index.php]
9
This table below show the area under plantation rubber in the world
Unit: 1,000 ha.
(Country) ( year) (Estate) (Smallholding) Total
Brazil 2009 - - 149.1
Guatemala 2009 81.5 4.5 86.0
Mexico 2002 - - 11.2
Cameroon 2005 36.0 4.4 40.4
Ivory Coast 2009 49.7 112.3 162.0
Gabon 1999 10.0 3.0 13.0
Ghana 1997 16.1 0.8 16.9
Liberia 1999 60.4 48.5 108.9
Nigeria 2009 61.0 112.0 173.0
Congo 1999 25.0 10.0 35.0
Bangladesh 2008 13.1 23.9 37.0
Cambodia 2008 55.1 53.4 108.5
china 2008 - - 932.0
India 2009 68.0 619.5 687.5
Indonesia 2009 - - 3,435.0
Malaysia 2009 61.1 960.4 1,221.5
Myanmar 2006 46.0 58.8 295.0
Papua New Guinea 2007 3.3 21.2 24.5
Philippines 2008 - - 123.3
Sri Lang Ka 2009 - - 124.0
Thai 2009 - - 2,756.0
Vietnam 2009 349.0 325.2 674.2
Source:[http://www.rubberthai.com/statistic/stat_index.htm]
10
However, Thailand is the rubber producer and exporter. Most of rubber would be
transmuted to be high value. It shows that transmuted product could be high price more than
simple rubber so we should develop industry to support the demand of marketing. By build
up the transmutation industry, it could increase the price value of rubber for get more profit.
Therefore, industrial transmutation is the business that makes money quite well for
entrepreneur.
2.2 Situation of Industry

Rubber plant is the most important economics’ plant of Thailand which is widely
grown up in the south of Thailand. Because of topography and climate are suitable for
growing up of rubber plant, this will affect to the yield and quality of latex. For this reason,
rubber and rubber product from Thailand is acceptable from other country and became to
no.1 exporter of rubber plant to the national. About 70% of natural rubbers product in the
world are from Thailand, Indonesia and Malaysia. Especially, Thailand focus on producing
smoked rubber sheet and latex which can produce maximum for third layer. And Indonesia is
the second producer of the world and for Malaysia is the third. However, both Indonesia and
Malaysia, they had smoked rubber sheet also but they can produce for one layer only. That is,
Thailand is the best one who has capacity to produce the rubber. Now, Malaysia’s natural
rubber production began decreasing due to the lack of labor and no area for the plant. So,
they changing to oil palm cultivation instead and turn to support the domestic rubber industry
which emphasizing for use in the country only. But currently it’s not enough for consume,
then they have to import some of raw rubber from Thailand. According to the world’s natural
rubber production during the past four year (2541-2544) of the League Management
Committee (LMC) found that amount of production is increasingly about 0.5% per year,
which is from 6.821 million tons in 2541 to 6.979 million tons in 2544. While the number of
rubber production from Indonesia and Malaysia are decrease. Thailand and Vietnam have
expanded the number of rubber production more.
Source: [www.thaifta.com/thaifta/Portals/0/File/ascn_rubber.doc]
11
The situation of rubber producing countries from year 2547 to 2549
Gross production Average yield

Area ( thousand rai )
( thousand tons ) (kg / rai )
Country
2547 2548 2549 2547 2548 2549 2547 2548 2549
Indonesia 20,388 20,388 20,681 2,066 2,270 2,637 101 111 128
Thailand 12,950 13,596 14,342 3,008 2,980 3,095 232 219 216
Malaysia 8,013 8,013 7,656 1,169 1,125 1,284 146 141 168
China 3,863 3,750 4,851 573 510 533 148 136 110
India 3,613 3,613 3,843 743 772 853 206 214 222
Latin America 2,924 2,924 2,924 29 29 29 10 10 10
Vietnam 2,818 2,818 3,188 419 469 540 149 166 169
Africa 1,081 1,081 1,018 3 9 10 2 8 9
Sri Lang Ka 806 806 747 95 104 109 118 129 145
Philippines 575 513 513 80 79 74 139 154 144
other 13,59 1,359 1,359 642 683 699 472 503 514
Total 58,390 58,861 61,185 8,826 9,031 9,863 151 153 161
12
According to the LMC shows the world consumption during year 2541-2544 has
increased at average about 2%. For the developed countries like the United States and Japan,
the consumption of natural rubber is stable, not to change too much. In contrast, the
developing countries are increasing in consumption of rubber such as China. Because of
China use a lot of the natural rubbers in the construction and transform into the wheels. In
each year the trade of rubber in the market world is more than 5 million tons, 78 percent of
the rubber production’s world with in 4 year (2540-2544). In tire commercial is increasing
average 1.5 per year that mean, the trend of trade volume will be increase every year.
Thailand NR Production by Types
Unit: tons
Year/Month RSS STR Conc. Latex Compund Others Total
2000 1,055,900 868,200 350,975 9,700 61,712 2,346,487
2001 951,015 869,830 440,714 5,790 52,200 2,319,549
2002 1,111,420 940,400 470,800 6,984 85,500 2,615,104
2003 1,225,170 1,029,600 494,675 37,100 89,460 2,876,005
2004 1,104,180 1,134,030 590,890 86,544 68,649 2,984,293
2005 1,005,700 1,240,265 585,300 36,715 69,178 2,937,158
2006 1,028,930 1,192,055 697,980 138,163 79,865 3,136,993
2007 957,337 1,218,326 663,926 151,437 64,979 3,056,005
2008 973,243 1,282,036 587,047 154,485 92,910 3,089,721
2009 837,294 1,058,892 703,817 487,160 77,216 3,164,379
Source: [http://www.thainr.com/en/detail-stat.php?statID=91]
13
Thailand NR Production by Types

3.5
Million Tons
2.5
Total
2
1.5
1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Natural rubber is use as a wide variety of rubber products. For more than70 percent of
smoked sheet rubber and block rubber is use in tire. In each tire rubber the quantity of use is
difference between 6-36 percentage weight products. From the table 3 the market tire rubber
is so influential to setting global prices. In the tire manufacturing company there are three
large companies which can be influenced by joining together and buying the rubber from the
central are Bridgestone, Michelin and Goodyear. For the latex is used in the manufacture of
latex gloves and condoms has highly grown. Because of the spread of AIDS, then the medical
staff and consumer product are widely used more than the past.
14
Consumption of Natural Rubber in 2002 - 2008
Country 2002 2003 2004 2005 2006 2007 2008

U.S.A. 1110.8 1078.5 1143.6 1159.2 1003.1 1018.4 1041.0
Japan 749.0 784.2 814.8 857.4 873.7 887.4 877.4
China 1395.0 1525.0 2000.0 2150.0 2400.0 2550.0 2560.0
Rep. of Korea 325.6 332.6 351.7 369.8 363.6 377.3 358.2
Germany 247.0 260.3 242.3 263.0 269.2 283.3 213.8
Malaysia 407.9 420.8 402.8 386.5 383.3 446.3 469.0
Thailand 278.4 298.7 318.6 334.6 320.8 373.3 397.6
Turkey 95.0 108.7 119.7 130.4 133.3 144.0 136.5
Others 2943.3 3135.2 3307.5 3418.1 3582.0 3803.6 3672.0
Total 7552 7944 8701 9069 9329 9884 9726
Consumption of Natural Rubber in 2002 - 2008

12
Thousand Tons
10
6
Total
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
15
Statistical Profile of Rubber Industry in Thailand

Area and Yield 2008 2009 2010
Area under cultivation of Rubber (Thousand hectare) 2675 2761 N/A
Area under tapping (Thousand hecture)(2) 1819 1856 1900
Average annual yeild per tapped area (kg/hecture) 1698 1704 N/A
Natural Rubber Falling under HS 4001 10,
4001 21, 4001 22 and 4001 29
Production of NR (Thousand tons) 3090 3164 3072
Gross Import of NR (Thousand tons) 4.5 3.2 N/A
Consumption of NR (Thousand tons) 398 399 420
Gross Export of NR (Thousand tons)(1) 2675 2726 2683
Compound Rubber Falling under
HS 4005 10, 4005 20, 4005 91 and 4005 99
Consumption (Thousand tons) 1.5 62.5 N/A
Gross Export (Thousand tons) 165 417 N/A
(1)
Includes estimated quantity of natural rubber contained in export compound rubber under HS
4005 10, 4005 20, 4005 91 and 4005 99
(2)
Thailand’s tapped area for 2010 is ANRPC’s estimate prepared on the basis of reported planting
trends
*Annual date for 2010 is anticipated figures as reported by Thailand government on December 16,
2010
Source: [http://www.anrpc.org/html/member_country_info.aspx?ID=14&PID=23]
16
2.3 Product
2.3.1 Ribbed Smoked Sheet (RSS)
No: 1 RSS Each bale must be packed free of mould but very slight
traces of dry mould on wrappers or bale surfaces adjacent to
wrapper found at the time of delivery will not be objected to
provided there is no penetration of mould inside the bale.
Oxidized spots or streaks, weak, heated, undercured, and
oversmoked, opaque and burnt sheets are not permissible.
The rubber must be dry, clean, strong sound and from
blemishes, rust, blisters, sand, dirty packing and any other
foreign matter, except slight specks. Small pinhead bubbles,
if scattered, will not be objected to.
No:2 RSS Slight rust, and slight amount of dry mould on

wrappers, bale surfaces and interior sheets, found at time of
delivery will not be objected to, provided these conditions
either singly or in combination, do not exist to an
objectionable extent on and in more than 5% of the number
of bales included in the delivery, lot or tender as determined
by the number of bales inspected. Small bubbles and slight
specks of barks, if catteres, will not be objected to.
Oxidized spots or streaks, weak, heated, undercured,
oversmoked, opaque and burnt are not permissible. The
rubber must be dry, clean, strong, sound and free from
blemishes, blisters, sand, dirty packing and all other foreign
matter other than specified above as permissible.
17
No: 3 RSS Rust and dry mould on wrappers, bale surfaces and
interior sheets, found at time of delivery will not be
objected to, provided these conditions, either singly or in
combination, do not exist to an objectionable extent on and
in more than 10% of the number of bales included in the
delivery, lot or tender as determined by the number of bales
inspected. Slight blemishes in color, small bubbles and
small specks of bark permissible.
The rubber must be dry, strong and free of blemishes,
blisters, sand dirty packing and all other foreign matter
other than specified above as permissible.
No: 4 RSS Rust, dry mould on wrappers, bale surfaces and interior
sheets, found at time delivery will not be objected to
provided these conditions, either singly or in combination,
do not exist to an objectionable extent on or in more than
20% of the number of bales included in the delivery, lot or
tender as determined by the number of bales inspected.
Medium size bark particles, bubbles, translucent stains,
slightly sticky and slightly over smoked rubber as
permissible but should not be evident to a marked degree.
Oxidized spots, or streaks, weak, heated, undercured
opaque and burnt sheets are not permissible.
The rubber must be dry, firm and free of blemishes,
blisters, sand, dirty packing and all other foreign matter
18
sheets, found at time of delivery will not be objected to
2.3.2 Packing Rubber
2.3.3 Cutting Rubber

19
2.4 Vision
To be the leader of rubber integrated production, processing and distribution in the
north of Thailand. Maintain standards of quality products. Committed to using natural
resources are limited benefits and most effective under the Ethics and Social Responsibility.
Go together with farmers.
2.5 Mission
 To develop products to a variety of formats according to customers' needs.
 To improve the quality of the products are better. Because the high quality product
make demand is increasing.
 To Increase the efficiency of production and competition in terms of price and
quality. Both domestic and international markets are an integral part in driving the
economy of Thailand Economic growth has increased.
 Making the cooperation with the government to meet domestic demand. And compete
with other countries.
 Using a new technology in manufacturing and product development.
 Developing of organizational and operational staff to be most effective.
 Developing further relationship between farmers and the company, due on the success
of the wonderful work come from the farmers.
2.6 Business strategy

2.6.1 Cooperate level
Diversification Growth Strategy is to expand into new businesses related to the
original product. Starting with dry rubber sheets and began to develop into other types of
rubber processing. By used Concentric Diversification methods to do business with a new
product or technology-based on knowledge of the original product. In this case focused on
developing a new product, which are the fundamental groups are the same customers who
buy our products in term of material. By using equipment and methods of production and
existing knowledge, but can produce the product that have a different pattern and different
benefit.
20
2.6.2 Business level

This business is big business where has large capacity and cover all forms of
products. It is also the first operator to open the market in the north of Thailand, also highly
advantage more than the other companies that have similar products. Therefore, we have
focus on price by using Cost leadership strategy to be the leading of price because the most of
customers are industrial company and purchase a lot of product per time to process
further. Therefore, we have advantage more than the competitors which may have higher
costs. We can sell the product in low price in order to attract customers and suppliers
relationship.
2.6.3 Functional level
 Marketing
Because the business to produce the products with high market demand already, In
terms of the market does not have hard work. Company will focus on marketing by using
price setting method. The main customers are a group of industrial companies.
 Financing
Finance will provide a percentage to simplify decision-making of investors. Financial
plan will focus on the cost effective. And the importance of forecasting sales by the reality,
based on data from government agencies and which can be trusted.
 Human Resources
All of staff in the business needs to train in each skill. Especially, those who work
with machinery needed to have been trained well because the machine is a special machine
that is ordered. To get the high product quality, staff must have their fit time in each position
for employee working in full capacity. And the importance thing, employees will be
evaluated every 6 months for standard working and easy to control quality of employee and
production.
21
CHAPTER 3
22
Chapter 3
Market Analysis
3.1 PEST Analysis
 P-Politic
Rubber is the industrial drop of the country since the year 2534 Thailand a
manufacturer of rubber to number one in the world for exporter of natural rubber has
increased continuously. But, bringing rubber to make products in the process to increase the
value of the goods very few and not many, so the country is a producer of natural rubber as
much should not only focus on the export of natural rubber alone but should be both an
exporter and manufacturer will increase revenue to the country even more because of this
reason the government is focused on rubber and saw the need to target the development of
rubber has appointed Natural Rubber Policy Committee, acting up the price of rubber
solution and promote the use of natural rubber in the country by the draft strategic plan was
developed with the aim Rubber year 2552-2556. Improve the efficiency of rubber production
to increase competitiveness and support the value-added natural rubber latex processing and
the production of rubber products increased. The strategic plan there are six strategies are:
(1)To increase productivity (2)Market Development of rubber in the country and abroad
(3)The Development of processing industries, rubber products, rubber and wood Para
(4)Update Management System state (5) The Development of personnel in the rubber (6)The
Government support of the research. So you can see that the government is to promote and
provide important information about rubber because rubber is a industrial drop that generate
revenue for the country was beginning to tire industry has expanded to every region of the
country.
Source: [herb.tisi.go.th/central/e-learning/talk/no_7/policy.ppt]
23
 E-Economic
The strength and resilience of Thailand’s economy continues to be reflected in the

data, beginning with its 12% growth in gross domestic product during the first quarter of
2010. That was the best rate of growth in about 15 years, nearly three times better than Q1
2009, and about double the preceding quarter. It is estimated that GDP growth for the first
half of 2010 will be approximately 10%. The global economy is improving, exports of both
agricultural goods and industrial goods are rising, and benefits of free trade agreements are
spurring trade. All of this has combined to lift Thailand to significant levels of economic
growth coming out of the global recession. That momentum for higher growth continues
unabated, as the Bank of Thailand recently raised its full-year 2010 growth forecast to
between 6.5% and 7.5%, from its previous forecast of between 4.3% and 5.8%. In its July
2010 Inflation Report, the Bank observes that the “Main driving forces were exports and
private investment, which expanded robustly in line with the global recovery.”
Thailand did in fact respond quickly to the global economic recession, adopting two
economic stimulus packages. Under the second, referred to commonly as TKK2, the
government has approved an investment framework worth 1,296 billion baht, covering 2010-
2012, not only designed to inject spending into the domestic economy, TKK2 also targets
spending to improving the nation’s infrastructure and making Thailand even more
competitive.
24
The stimulus package, in addition to directing funds to enhance water management,

transportation and energy, among others, also contains funds to support Thailand’s transition
from being a low labor cost manufacturing based economy to one that is firmly founded on
the skills, innovation and creativity of the Thai work force. For the 2010 to 2012 period, 8.24
billion baht has been approved.
Despite the political unrest and concerns about Thailand’s investment environment,
the Ministry of Commerce has announced that exports from January to June 2010 totaled
US$93.07 billion, which is a 36.6% increase year on year. “At US$18 billion, June’s export
receipts were unprecedentedly high. Such strong showing is an affirmation of the resilience
of the Thai economy overall and its exports sector in particular, despite the April-May
political conflict,” Hong Kong and Shanghai Banking Corp said in a report sent from its
Singapore office. During the same period, imports rose 51.7% to US$86.69 billion, resulting
in a surplus of US$6.38 billion.
The Commerce Ministry growth target for exports in 2010 has been increased from 14
per cent to 19 per cent, with a projected export value of US$183 billion. In this regard, it
should be noted that in July 2010 Thailand’s National Economic and Social Development
Board (NESDB) and the United Nations Development Programme (UNDP) began working in
partnership to build a Creative Economy.
Source: [http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=THB]
Thailand Project Production by Sector 2010
3% 1% 1%
19%
Manufactures
49%
Services
Agriculture
IT
27%
Energy
Materials
Source:[http://www.faculty.fairfield.edu/faculty/hodgson/Courses/so191/Projects2010/Steve_Costello
/Part4Thailand.html#Prod]
25
Table show the buying price of Ribbed Smoked Rubber no.3 at Rubber Market
(2000 – 2009)
Songkhla Suratthani Nakorn-Srithammarat
Year
Price (Baht/Kg.) Unit (Kg.) Price (Baht/Kg.) Unit (Kg.) Price (Baht/Kg.) Unit (Kg.)
2000 24.28 13,662,234 - - - -
2001 25.03 6,278,815 26.81 105,086 - -
2002 30.23 23,964,046 33.54 1,789,328 33.66 2,588,246
2003 41.71 32,394,711 41.54 4,967,649 41.65 6,080,180
2004 48.09 26,671,442 47.8 4,506,939 47.75 8,509,985
2005 57.05 20,166,181 57.65 8,241,780 58.1 2,671,540
2006 74.63 29,995,834 71.9 2,884,082 74.06 10,672,812
2007 74.36 26,886,921 72.75 861,445 74.32 9,13,159
2008 82.52 23,855,220 82.2 2,789,620 82.39 10,992,783
2009 62.01 22,086,442 62.43 3,816,350 61.87 13,742,152
Source:[http://www.rubberthai.com/rubberthai/index2.php?option=com_content&view=article&id=
73&Itemid=33]
Table show the buying price of Ribbed Smoked Rubber no.3 at Rubber Market (2010)
Month
January 96.31 2,889,046 96.23 492,067 95.99 1,758,917
February 99,59 2,547,385 99.4 426,070 99.61 1,356,169
March 105.78 1,436,818 104.38 95,819 105.83 418,686
April 117.93 499,679 - - 117.86 81,018
May 112.26 1,428,849 110.49 53,738 112.64 947,157
June 114.36 2,860,079 114.44 392,509 114.36 1,604,049
July 102.8 3,067,996 102.69 483,852 102.86 2,512,102
August 103.37 2,771,736 103.42 495,016 103.39 1,987,216
September 106.26 3,241,180 106.17 499,375 106.26 2,214,153
October 110.07 2,932,372 109.92 396,298 110.13 2,647,147
November 123.05 1,009,836 121.66 179,019 122.32 1,099,770
Source:[http://www.rubberthai.com/rubberthai/index2.php?option=com_content&view=article&id=
73&Itemid=33]
26
 S – Social
Former Thai society believed that the Para rubber can be growing in only south of
Thailand because south of Thailand have the good conditions to grow the Para rubber such as
this part is in the area of equator, the tropical atmosphere, and also first Para rubber was
growing in the south of Thailand. Nowadays, Para rubber can be growing in all area of
Thailand especially in the north, east, and north east of Thailand. The researcher found the
production and qualities of Para rubber is nearly with the south of Thailand that Thai society
open to growing more Para rubber because the price is high and easily to operation and
management. Also, the trend to growing Para rubber in the south of Thailand is decreasing
because of the new economic plant as palm which the people there tend to be growing more
instead as well.
In fact, the agriculturists in north of Thailand tend to interesting in growing the Para
rubber because the north of Thailand is in the cold area and suited to growing Para rubber
especially in Chiangrai and Payoaw provinces. From testing, Para rubber which grown in
those two provinces will give more concentrate latex, easy to growing, and give more long
time production. In addition, there are few local agriculturists who growing the Para rubber
when compare with the area because those agriculturists have a few knowledge for both
growing Para rubber and capital in production. Thus, the social about the Para rubber in the
north of Thailand have to more developing in the part of knowledge. Both government and
private sectors have to interfere to developing north people about the knowledge to growing
Para rubber and the problem about their budget. All of this can be effect to Siam Rubber in
growing the business in the future because the north of Thailand will be increasing of Para
rubber area.
Source: [http://www.chiangraifocus.com/forums/index.php?action=printpage;topic=22021.0]
27
 T-Technology
Technology brings the knowledge from scientific to apply for creating interesting
which there is associated with the living of people for a long time. In presently, technology
has developed and rapidly change for simplify to use, so technology has more role in human
social. Not only, it is the important things in part of productivity of Siam Rubber because we
have to use high new technology machine in the production to reduce the employee work and
make more comfortable. The new technology machine can make the production of our
company faster and easily to control with a few employees. But also, Siam Rubber company
used the communication technology such as high speed internet and telephone to make the
easily to communicate with outside.
Therefore, rapidly change and progress of technology can create competitive
advantage for us because we have to invest in the high cost of machine and the other
competitor will get barrier to intervene. Siam Rubber has applied this new technology to
achieve the highest quality in production. It can make us reduce the production costs and
increase capacity production as well.
Technology Machine & Equipment
28
3.2 Competition Analysis

Siam Rubber Company has only direct competitors who run the similar business
and also compete with us if we start to run the business. The reason that we have only direct
competitors is the unique characteristic of product. Siam Rubber has to produce some of Para
rubber product included with No. 1-5 RSS, Packing Rubber, and Cutting Rubber that have no
substitute product to competing. There are main 5 competitors for Siam Rubber including
with:
 Thai Yok Rubber Co. Ltd.
A plant / factory registration Location / phone Entrepreneur Operation
Thai Yok Rubber

101 m 3. Co. Ltd.
Mae Chedi Mai. 378 / 3 Moo 1. Machinery 58.80 HP.
Wiang Pa Mae Chedi. Capital 5,500,000 Baht.
Thai Yok Rubber Co. Ltd.
Pao district, Chiang Wiang Pa There were 24 workers.
Rai 57260. Pao district, Chiang
Rai. 57260
Tel. 789004,704068
Source: [http://www.diw.go.th/diw/query.asp]
29
 Thai Hua rubber Company
Corporate Profile
Planting para rubber was the first job that Mr. Luckchai's grandfather held when he
emigrated from China to Nakhon Si Thammarat 80 years ago. The family together with some
neighbours moved to Rayong in 1957 and brought some rubber seedlings. The company
started producing smoked rubber in 1978 with Bridgestone as its first customer.
Thai Hua Rubber Public Co.,Ltd head office is situated in Bangkok. The company has
11 production plants in different region of Thailand and 1 branch office in Shanghai, China.
In total the company employs about 1900-2000 workforce. The company has bussiness joint
venjtures with foreign investors to produce Medical Rubber Glove, rubber wood
Kitchenware, auto Tyre, raw and roasted Coffee Bean.
Originally formed in 1985 under the name of Thai Hua Rubber Company Limited by
the family Kittipol together with some close relatives. In 1996, the company changed its
name to Thai Hua Rubber Public Company Limited, since 1991, the company was rank as
one of the largest rubber producer and exporter in Thailand.
Source: [http://www.thaihua.com/v4/en/]
Branches
- Sakolnakorn Branch (SK)
First of our latex factory to be located in the E-sarn (northeastern) region of Thailand,
Sakonakorn factory has initiated production since the early 2008. Currently the factory
employs 60 staffs.
Production:
Latex: 1,800 tons/month, 21,600 tons/year
Skim: 150 tons/month, 1,800 tons/year
30
- Sadao Branch (HD)

Thai Hua Sadao branch located in the southern region approximately about 40
kilometers from Hatyai. The factories employs over 150 personnels in maitaining and
improving its quality system, thus have been consistently accredited with the ISO 9001
certification.
Production:
RSS: 4,700 tons/month, 56,400 tons/year
Compound RSS: 3,000 tons/month, 36,000 tons/year
- Krabi Branch (KB)

With its 140 employees working to enhance and maintain the quality system certified
since the year 2005, it is one of the most efficient factories in theThai Hua group. The site
comprises of two manufacturing line: Latex and RSS.
Production:
RSS compound: 1,050 tons/month, 12,600 tons/year
Latex: 4,000 tons/month, 48,000 tons/year
Skim: 480 tons/month, 5,760 ton/year
- Sangkalerk Branch (RZ)

A north eastern province of Thailand, located about 220 km from Bangkok –
approximately 2.5 hours drive, Rayong is bustling with its various arrays of industrial parks
and ports. It harbors the Laem Chabang port, the commonly name the Detroit of Thailand.
Thai Hua Rayong RSS is located in the Sangkalerk village near Thai Hua Rayong STR.
Employing 200 employees from various provinces; it is one of the fastest growing factories in
our group. The factory has achieved ISO 9002 accreditation during the early 2002 and has
continually been accredited with the ISO 9001 standards.
Production:
RSS: 3,000 tons/year, 36,000 tons/year
Compound: 1,050 tons/month, 12,600 tons/year
31
- Rayong Branch (RY)

Employing over 250 staffs and workers, with new machines, new production method
and new quality control system, the factory achieved its ISO9002 Certification in the year
2001. ISO 9001:2000 certification has been renewed during the year 2006. ISO 9001:2008
certification is achieved during 2009. Rayong is located on the Eastern region of Thailand,
harboring the eastern seaboard over the Gulf of Thailand. A smooth 2.5 hours drive to
Rayong will grant you the passage to the east coast of Thailand and Samed Island.
Rayong is located on the Eastern seabord over the gulf of Thailand, 220km away from
Bangkok, it is a touristic region with some interesting site: such as SAMED island.
Production:
STR: 6,000 tons/month, 72,000 tons/year
- Bangklam Branch (BK)

THR Bangklam branch initiated during the early 1992, currently employing over 170
employees total. It is the first branch of Thai Hua group that achieve ISO 9001 accreditation
on late 1999. The factory continually adheres to the high Thai Hua Standards and is
continually accredited with the ISO 9001 certification. The factory is located at Bangklum, a
subdivision of the famous Hadyai, located at 900km from Bangkok.
Production:
Latex : 4,500 tons/month, 54,400 tons/year
STRL&CV : 1,200 tons/month, 14,400 tons/year
- Udonthani Branch (UD)

Udon-Thani is a north-eastern province of Thailand, located at 580km from Bangkok.
Rich in its cultural mix between the Laos tradition and Thai friendliness, it is one of the
promising province in providing tourists with heartfelt and sincere hospitality.
Thai Hua Udon factory was built in 1998 to support the Govermental campaign of
rubber plantation promotion. .Currently the factory employs 212 staffs and workers. The
factory has chieved its ISO 9002 accreditation in the year 2000 and renewed to ISO 9001 at
2006.
Production
32

- Trang Branch (TGS)
Thai Hua Trang was constucted in 1979, employing 200 workers. Thai Hua Trang is
producing 1,800 tons of Ribbed Smoked Sheet (RSS). It is working to obtain its accreditation
of the ISO 9001 and is planning to get accredited in the early 2010. Trang is a southern
province of Thailand, located at 1000km from Bangkok
Production:
- Chalung Branch (CL)

The factory achieves its ISO 9001 acccreditation during the early 2002 and
continually certified with its strict management system. Thai Hua Chalung is approximately
60 kilometers from Hadyai.
Production:
- Chumporn (CP)
The factory was constructed in 1997 and currently employing 50 workers. We are
capable of modifying our latex grade to produce CV grades. Chumporn is a southern
province of Thailand, located at 400km from Bangkok. It is one of sea site tourism.
Production:
STRL&CV : 4,200 tons/year, 50,400 tons/year
- Nongkhai Branch (NK)

Thai Hua Nongkhai factory was constructed in 2006, employing a total of 150 staffs
and workers. The factory has recieved its ISO 9001 certification in 2009 and has strive to
continually improve it's quality to acheive customer satisfaction
Production:
Compound: 4,200 tons/month, 50,400 tons/year.
33
 Tavorn Rubber Group
Tavorn Rubber Group was established by Dr. Tavorn Roungwarunwatthana in 1982.

At the beginning, the company started off with only one company registered under the name
of Tavorn Rubber Industry (1982). As a result of the high growth in rubber business, there
were expansions of two new companies under the same network called TTR and TVR in
1989 and 1994 respectively.
Product:
Concentrated Latex
Capacity 7000 MT/Month
STR 5L
Skim Block
34
STR 20
RSS 1-5
Contact: 33 Kanjanavanich Rd, Sadao, Songkhla South Thailand 90120

Tel: (66) (74) 411353, 411453-4, 411573-4
Fax: (66) (74) 411352, 412152
Source: [http://www.tvrrubber.com/index.php]
 Von Bundit Company Limited
Von Bundit Co.,Ltd was founded in 1987 by Mr.Thaveesak Kerdvongbundit (Lee Eng
Hong). With his 50 years of experience in the rubber business, he has led the company to be
one of the world leading processors and exporters of natural rubber. Since then, the registered
capital has increased to 700M Baht with annual production capacity of about 700,000 Mt and
2,500 capable workforces.
The first factory was built on a 60 Acres land at Tambol Kuntalay, Suratthani
Province, a major rubber producing area. It has a total production capacity of 17,000 Mt per
month producing Concentrated Latex, Ribbed Smoked Sheet (RSS) and Standard Thai
Rubber (STR).
35
In 1994, Von Bundit acquired the second factory from Euro Siam Co.,Ltd.; a STR
factory located in Punpin District, Suratthani Province. Subsequent investment was by 18
times expand the factory site to 200 Acres and increase the production capacity from 2,000
Mt to 38,000 Mt per month including RSS. The factory is now recognised as the largest
natural rubber processing factory in the world.
Investment on the third factory has been carried out on a 720 Acres land in Krabi
Province since 2000. The first project on Latex plant has a capacity of 3,750 Mt per month.
Followed by the first continuos sterling the Palm-Oil minimill in Thailand in 2004.
With export volume of 450,000 Mt in 2008 and sales value of US Dollars 1.10 billion, Von
Bundit has established herself to be the largest natural rubber exporter in Thailand.
In 1998, Von Bundit achieved International Standard for Quality Management and
received the certificate of Quality System Conforming to TIS/ISO 9002 from the Ministry Of
Industry and International standard for environmental Management system conforming to
ISO 14001:2004. In the same year it is a great honour for Von bundit Co., Ltd. to be awarded
the Prime Minister Award for the Best Exporter of the year and Export Honorary Recognition
in 2004.
Production capacity
RSS 240,000 MT/yr
STR 408,000 MT/yr
Latex 57,000 MT/yr
Total 705,000 Metric tons/year
Branches
- Suratthani Branch Factory
Product:
Ribbed Smoked Sheet (RSS)
Standard Thai Rubber (STR)
Latex
- Punpin Branch Factory
Product:
Ribbed Smoked Sheet (RSS)
Standard Thai Rubber (STR)
36
- Krabi Branch Factory

Product:
Latex
Oil Palm Plantation
Capacity
NR Grade Present Capacity (MT/MTH)
SN SX KB Total
RSS 9,000 11,000 - 20,000
STR 7,000 27,000 - 34,000
Latex 1,000 - 3,750 4,750
Total 17,000 38,000 3,750 58,750
Source: [http://www.vonbundit.com/index.htm]
 Sri Trang Group
Corporate Profile
Sri Trang Agro-Industry Public Company Limited was founded in 1987 under the
management of Mr. Somwang Sincharoenkul, who had more than 40 years of experience in
the rubber industry, together with Dr. Viyavood Sincharoenkul, a man with vision. The initial
capital of the Company was 31 million baht.
The Company was initially set up as a producer and exporter of natural rubber which
is one of the major agricultural products in southern Thailand. The management has
continuously expanded the operation to support the growth of the domestic and international
rubber industry’s demands. The company started with Ribbed Smoked Sheets, a main raw
material of the automobile tyre industry. It began producing Concentrated Latex six years
later to support the demand for latex examination gloves and elastic rubber thread industries.
In 1997, the company started producing STR Block Rubber in response to a shift in demand
toward this type of material from the automobile tyre industry. The Sri Trang Group has the
37
total production capacity of 590,000 tonnes annually of which 198,000 tonnes is Ribbed
Smoked Sheets (RSS), 218,000 tonnes is STR Block Rubber and 174,000 is Concentrated
Latex. Sri Trang became one of the leading natural rubber companies in the industry by
expanding into finished products.
The company has created partnerships with both domestic and international investors
creating new companies which can support one another in their field with the availability of
raw materials, technology and services. These partnerships are one of the key driving
elements that will enable the company to become a fully integrated rubber producer and one
of the largest rubber producers and exporters in Thailand. In order to achieve competitiveness
in the international arena, Sri Trang has established Trading and Distribution Units in major
regions to support the marketing activities and improve their ability to identify new market
opportunities. This strengthens Sri Trang's position in the global market. The result of this
continuous growth and expansion in production, trading and distribution, is that the group has
achieved total sales of over 700,000 metric tonnes of natural rubber, resulting in a turnover in
excess of a billion dollars.
At present, Sri Trang Agro-Industry Public Company Limited consists of 18
companies and 20 factories with assets worth more than 11 billion baht. These companies are
both subsidiaries and affiliated companies originating from various joint venture projects. It
is one of the largest groups in the rubber industry which is widely known and well recognised
as a leader in this field.
Partnership
Founded Company Name , Location, Investors Type of Business
1987 Sri Trang Agro Industry Co. (PLC) - Located in Production of Ribbed
Had Yai district. Smoked Sheets.
1988 Rubberland Products Co., Ltd. – Located in Had Production of Latex

Yai district. Concentrate.
1989 Siam Sempermed Corp., Ltd - Located in Had Yai Production of Latex
Sri Trang Agro-Industry PLC. invested jointly with Examination Gloves.
Semperit Technische Produkte Ges.m.b.H. & Co
KG of the Republic of Austria.
38
1992 Sri Trang Agro Industry Co. (PLC) – Located in Production of Latex
Trang Province. Concentrate and Ribbed
Smoked Sheets.
Thai Tank Installation Co., Ltd. – Located in the Liquid Rubber Tank
Deep Water Port in Phuket Province. Rentals for Export.
1993 Thaitech Rubber Co., Ltd.- Located in Had Yai Production of Ribbed
district and in the Trang Province. STR Block Rubber.
Sri Trang Agro-Industry PLC. has invested with

Southland Rubber (Thailand) and Itochu Co., Ltd.
from Japan.
1994 Namhua Rubber Co., Ltd. Sadao district, Songkhla Production of Latex
Province – Sri Trang has held a 50% share in this Concentrate.
company since 1994.
1995 Shanghai Semperit Rubber and Plastic Products Production of handrails

Co., Ltd. – Located in the People’s Republic of for several of the leading
China – Sri Trang Agro-Industry PLC. and escalator manufacturers.
Semperit Technische Produkte Ges.m.b.H. & Co
KG of the Republic of Austria have invested in this
company, as well as private investors.
Sadao P.S. Rubber Co., Ltd – Located in Sadao Production of Ribbed

district of Songkhla Province. Sri Trang Agro- Smoked Sheets.
Industry PLC. has held a 50% share in this
company since 1995.
Anvar Parawood Co., Ltd. – Located in Sadao Production of rubber

district of Songkhla Province – Sri Trang Agro- wood for the furniture
Industry PLC. has held a 70% share in this industry and for
company since 1996. packaging crates. Also
provides shipping
services for rubber wood
used for fuel.
Startex Rubber Co., Ltd. – Located in Trang Production of rubber

Province. parts, with factory for
production of special
parts from latex
39
concentrate.
1996 Semperflex Asia Co., Ltd. – Located in Had Yai Production of Hydraulics
district – Sri Trang Agro-Industry PLC. has systems for industrial
invested in this company jointly with Semperit machinery and
Technische Produkte Ges.m.b.H. & Co KG of the construction equipment.
Republic of Austria. This is the first company
in Thailand to possess
the technology to
manufacture industrial
quality hydraulic
systems.
Semperform Pacific Co., Ltd. – Located in Had Production of rubber and

Yai district – Sri Trang Agro-Industry PLC. has plastic parts for industrial
invested in this company jointly with Semperit use, especially in railway
Technische Produkte Ges.m.b.H. & Co KG of the and the automobile
Republic of Austria. industry.
Premier System Engineering Co., Ltd. – Located in Provides design services

Had Yai district. for industrial equipment
and provides
maintenance and repair
services.
Starlight Express Transport Co., Ltd – Located in Provides shipping

Trang Province. services with a fleet of
over 120 vehicles.
1997 Sri Trang Agro Industry (Plc.) – Located in Thung Ribbed STR Block
Song district of Nakorn Srithammarat Province. Rubber 20.
1998 Sempermed USA Inc. – Located in Florida, USA – Manages the sales and
Sri Trang Agro-Industry PLC. has invested in this marketing of rubber
company jointly with Semperit Technische products, with 5
Produkte Ges.m.b.H. & Co KG of the Republic of warehouses in Los
Austria. Angeles, Dallas, Tampa,
Chicago, and New
Jersey.
40
2002 Shanghai Foremost Plastic Industrial Co., Ltd. – Production of Latex

Located in Peoples Republic of China - Sri Trang Medical Gloves, from
Agro-Industry PLC. and Semperit Technische PVC.
Produkte Ges.m.b.H. & Co KG of the Republic of
Austria have invested in this company, as well as
private investors.
2002 Sri Trang International Private Co., Ltd Manages Sales of rubber
in Singapore
2004 Sri Trang USA Inc. Trading / distributing

unit for natural rubber
products located in
Virginia, U.S.A .
Pattana Agro future Co., Ltd Trading representative in

Sri Trang Agro-Industry Plc. owned 40 per cent of Thailand Agro future
shares,invested jointly with Lee Lee Feed Mill market (Broker No.
Public Company Limited. 2012)
2005 PT. Sri Trang Lingga Indonesia Production of SIR 20

Sri Trang Agro-Industry Plc., owned 80 per cent of Block Rubber in
shares, invested jointly with Lingga Djaya Group Indonesia
(the Indonesian partner) Expecting the factory to
be operational in the early part of Year 2006
Source: [http://www.sritranggroup.com/en/page/index.php]
3.3 Competitive Analysis

Nowadays, Para rubber industries in Thailand have high competition because there is
high demand of Para rubber in tyre industry, medicine, and so on. It can make the increasing
of Para rubber industry not only in the south of Thailand, but also others part of Thailand
have increasing Para rubber factory as well. In addition, after the researcher testing grow Para
rubber in north of Thailand, they found that in some area of the north can grow Para rubber
and cause to increasing Para rubber until today. But, there have no business to support the
production of Para rubber in the north of Thailand.
41
Siam Rubber Company is a one business that can support the production of Para
rubber where have a few competitor in the north of Thailand. There are 5 main competitors
for Siam Rubber included with Thai Yok, Thai Hue, Tavorn Rubber Group, Von Bundit, and
Sritrang Group. All of this except Thai Yok Company has the higher production than us
because they have some partnership or branches that make them have the high capacity to
producing. But, the positioning of Siam Rubber is to be the leader of Para rubber industry in
the north of Thailand. Thus, we have to focus in Thai Yok because the capacity in production
of Thai Yok is lower than us. Also, after full capacity of harvest the product from Para
rubber, we estimate that there will be increasing of Para rubber factory in the north of
Thailand absolutely. We have to handle with them by make the trust and quality of product
and service to be the leader in the north of Thailand.
3.4 Supplier Analysis

Siam Rubber Company has only the intermediary who is the supplier of our company.
We cannot receive the concentrate latex from local agriculturist directly because we want the
certain quantities of concentrate latex, have not to face with high management costs, and the
qualities of concentrate latex may lower than standard. The way that we will receive the
concentrate latex in the certain quantities is creating the network of intermediary. They may
create in the form of agriculturist group, community enterprise, and cooperative. The process
that Siam Rubber has to form the group of intermediary is primary unwritten contact because
if we sign the contact with the group of intermediary, it can bring about to bind by a contract
itself. The key methods that make the Siam Rubber gain more intermediary in the north of
Thailand is called the telephone to tell the price of rubber in each day and also we may use
the promotion for attract the intermediary such as give higher price just one or two percents
from the base price of rubber.
Nowadays, Chiangrai is going to be creating the network of intermediary because
they can harvest some part of Para rubbers’ production. There are two groups of intermediary
in Chiangrai including with The Rubber Replanting Aid Fund Industrial Cooperative at Mae
Jang District and Baan Mea Pao community enterprise at Pra Ya Meng Rai district. We
forecast that Chiangrai will have already grown 350,000 rai of Para rubber in 2010 and tend
to increase growing the Para rubber in the future more than one million rai. Also, more than
5,000 rai can be harvest the production. We estimate that the networks of intermediary will
sale their concentrate latex to us for 25 percents form all production in Chiangrai.
42
3.5 Customer analysis

Para rubber is the important agricultural product in Thailand. It has more than high
market potential as local demand and demand for export is quite high. The agriculture
ministry had a policy to boost the Para rubber industry, especially the Para rubber processing
for export. Growing areas will be extended, particularly in the north region of Thailand.
In addition, natural rubber is processed more to add value to the Para rubber industry. It is a
good opportunity to open more Para rubber industry in this region. The Para rubber industry
will increase more value added to field latex. The grade of ribbed smoked sheet rubber, air
dried sheet rubber will increase and the price will be increase according to the increasing in
the grade. Nowadays the ribbed smoked sheet rubber is more utility, because it use to
material for industry such as tires, rubber elastics, rubber erasers, rubber tubes, shoes rubber,
and so on. Therefore, our company has process is ribbed smoked sheet rubber send to
company or industry to make a new product. We separate the customer in to 2 main groups.
 Domestic Company
The company that selling in domestic (who make a new product or whatever from
ribbed smoked sheet rubber and selling in Thailand)
This table below shows the domestic customers.

Company Name Scope of certification Address
7/2 Moo 4 Kached, Muang Rayong
Thai Hua Rubber Public
Producing RSS, STR, Blocking, Rayong 21100, Thailand
Company Limited
Compound Rubber Tel.(038) 634-490-7 Fax.(038) 634-07
(Rayong Branch)
E-mail : thr_ry@yahoo.com
Goodyear (Thailand) PCL 50/9 Phaholyothin Road, Klongluang
Manufacture of automobile tires
District, Patumthani 12120
63 Mu 7 Sudbantat Rd., T. Tandeaw,
Sahakit Wisarn Co., Ltd. Floormat Automibile
A. Kaengkhoi; Saraburi 18110
99/1-3 Mu 13 BangnaTrad, K.M.. 7, T.
Q One Co., Ltd. Manufacture of concentrated
Bangkaew, BangPlee, Samutprakarn
natural rubber latex
10540
385 Mu 17 Bangplee Industrial Estate,
Manufacture and supply of seat Theparuk Rd., T. Bangsaothong,
KPN Ashimori Co., Ltd.
belts for cars and trucks Bangsaothong Sub-District,
Samutprakarn 10540
43
3088 mu 10, Sukhumvit 107 Rd,

JSV Hardware Co., Ltd. Manufacture of flexible conduits
Samrong, Samut Prakan 10270
Sungshin Bangkok Rubber

Manufacture of middle, outsoles 17/21 Mu 7, Nongmuang, Nongmuang,
Co., Ltd.
and parts of shoes Lopburi 15170
Manufacture of passenger car

84 Mu 7 Soi Sinprasong Petchkasem
tires, light truck tires, agriltural
Deestone Co., Ltd. Rd., Omnoi, Krathumban,
tires, truck and bus tires and
Samutsakhon 74130
industrial tires
Manufacture of automotive air
intake hose, air cleaner hose,
resonator, reserve tank, washer 1/66 mu 5 Rojana Industrial Park, T.
Tigerpoly (Thailand) Ltd.
tank, air conditioner duct hose, Khonham, A. U-thai, Ayuthaya 13210
washing machine drain hose, air
conditioner drain hose
Manufacture of automotive tires,
14/3 Phaholyothin Rd., T. Klongnueng,
Thai Bridgestone Co., Ltd. tubes, flaps and retreads (exclude
A. Klong Luang, Pathumthani 12120
design)
Manufacture of rubber parts for
Pathumthani Rubber Co., 19/6 Moo 8, Klongkwai, Samkoke,
OEM (thai honda manufacturing
Ltd. Pathumthani 12160
co., ltd.)
Design & manufacture of
55 Mu 7, Petchkasem KM.37 Rd., T.
passenger car tyres, light truck
Otani Tire Co.,Ltd. Klongmai, A. Sampran, Nakornpathom
tyres, truck and bus tyres, off the
73110
road vehicle tyres, industrial tyr
Manufacture of bicycle tyres,
Vee Rubber International 22/3 mu 2, Chaimongkhon, Muang,
motorcycle tyre, truck tube and
Co., Ltd. Samut Prakan
bicycle tube
Manufacture of motorcycle tires 129 Mu 3 Nongeiroon Banbueng,
N.D. Rubber Co., Ltd.
and tube (excluding design) Chonburi 20220
Manufacture of rubber smoked 541 Mu 3 Chan Rd., A.Chawang,
L.T. Rubber Co., Ltd.
sheet excluding design nakornsrithammaraj 80250
Source: [http://sql.diw.go.th/results1.asp]
44
 International Company
The company that export the product (who make a new product or whatever from
ribbed smoked sheet rubber and export to Japan, Singapore and other country). The table
shows the customer.
Company Name Address
Chan Rubber Co. Ltd. 40/2 Moo7 Phetkasem Rd., Aomnoi, Kratumban Samutsakhon 74130
33/48 Willstreet Tower, 11 th Fl.room1102, Surawong Rd., Suriyaeong,

Dr.Boo Co. Ltd.
bangrak Bangkok 10500
Kangwan Industry Co. Ltd.
41/9 Soi Sririwong, Aekachai Rd., bangborn Bangkok 10150
Mala Intertrade Co. Ltd. 20/24 Moo4 Theparak rd., k.M.10.5, Bangplee Samutprakarn 10540
Nok Industry Co. Ltd. 108/150-151 Soi Sakmongkolchai, Bangkadee Rd., Samaedam,
Bangkhunthien Bangkok 10150
252 Moo 1 Poochaosmingprai Rd., Sumrongtai, Phrapradaeng Samutprakarn
Saeng Thai Rubber Co. Ltd.
10130
Seikenhei Mark Co. Ltd. 23/196 Moo8 Soi Pongsirichai 2, Petkasem Rd., Samphran
Nakornphathom 73160
TS Patex Co. Ltd. 653-653/1-7 Soi Ramkamhang 39, Ramkamhang
Rd., WangthonglangBangkok 10310
Mahakit Rubber Co., Ltd. 69 Mu 2 Bangna-Trad Rd., Mab-Kha, Nikompattana, Rayong 21180
Source: [http://sql.diw.go.th/results1.asp]
45
3.6 STP Analysis

 Segmentation
Siam Rubber divided the market segment into two main groups herewith namely the
group of supplier and the group of customer.
The main goal of business is to rubber plantation in the north. They are suppliers the
new group that can provide material that is more rubber on the quantity and adequate to the
needs of the market. Northern Region is the area of rubber cultivation to new and upcoming
products in the next 1-2 years and will yield to the market growing on old tires enough to be
harvested. If when sufficient material is available to enter the product to market, thus the
Siam Rubber has chosen to focus on the central rubber market and agricultural futures
markets. Sure with the standards and to reinforce the rubber plantation to ensure a fair price
to sell the product with Siam Rubber.
Another target is customers who are the one to buy our products. This will also
include two major categories are domestic and international markets.
International markets are trading rotate for 24 hours. They start from the Japanese
market, Shanghai, Singapore, London and New York respectively. The market will be able to
know the actual price and trade transparency. But the trade on the open market requires
commission high quality rubber and may not the requirements of the buyer. Consumers are
dealing directly with the manufacturer agreed not through the market. Trading this way is
called Direct. This trade, which currently account for 80% of the commercial and the
remaining 20% is a commercial open market.
The domestic market also divided into 3 types, Local markets, the central rubber
market, and trading agricultural futures marketplace (AFET). Local markets that trade with
no formal rules. The central rubber market rules and rubber with a clear reference price major
markets in the south namely Central Market, Surat Thani Central Market Sri Thammarat.
Marketplace and Songkhla. But now has expanded into the Northeast market, including
Central Market, Ram. And Nong Khai, and in the agricultural futures market is an
organization open to futures trading to reduce price volatility and risk reduction will occur.
Siam Rubber sell products to customers at prices based on the price of the
marketplace to provide customers with the confidence that a fair price and product standards.
Source: [http://www.afet.or.th/v081/thai/#]
46
 Target Market
Thailand is advanced agriculture country. Rubber plant is important and significant
effect on the country. In addition, rubber is mostly cultivated in the south area. But now with
the expansion of rubber plantation to the north and northeast, and these areas are also
products to market in time soon.
Target Market of Siam Rubber will emphasize on the group's suppliers who are the
group of intermediary. They will be received the concentrate latex from local agriculturist
who planted Para rubber in the north of Thailand and sale to our company.
The table show the rubber planted areas in the north of Thailand. (Unit: Rai)
Provinces 2006 2007 2008
Chiang Rai 49,288 81,936 92,851
Phetchabun 9,254 10,954 24,569
Nan 18,818 41,742 47,728
Phayao 32,740 53,687 81,473
Phisanulok 14,531 67,820 145,328
Uthai Thani 12,765 21,235 21,878
Lampang 3,032 7,361 25,866
Lamphun 3,531 8,529 8,865
Chiang Mai 8,716 20,516 32,927
Maehongson 782 1,435 2,286
Tak 8,976 6,965 18,578
Kamphaeng Phet 28,798 32,215 32,784
Sukhothai 13,558 18,685 19,906
Phrae 6,138 12,840 17,636
Uttaradit 2,606 6,260 18,025
Phijit 1,276 1,537 1,896
Nakhon Sawan 4,028 5,760 7,982
North Region Total 218,837 399,477 600,578
From the table, the rubber planted area in the north with increasing volume and
enough potential to compete with the rubber in other sectors. In the group of the customer to
purchase our products are available with two types are purchased for resale and purchase the
raw material. The type of purchase is sold mainly to be exported abroad and types of
purchases as raw material in the production of such goods as domestic customers.
Source: [http://www.rubberthai.com/statistic/stat_index.htm]
47
 Position
The Siam Rubber into a leader and is the first in the North is also a system of
management and capital enough to develop a high standard using modern machinery and
technology and can therefore produce more. Supplies would come out with such high quality,
but considering the price then. Price of the product is priced equally with caption because
prices are set based on the standard price.
3.7 Marketing Mix Strategy

3.7.1 Product Feature
Ribbed Smoked Sheet (RSS) is processed by smoked rubber in the high temperature
with technical supervision for increasing the quality. The sheets are selected and smoked at a
controlled timing (4-10 days) and temperature (50-60°C) window to ensure that they are
properly smoked without causing negative impact on the rubber properties. Ribbed Smoked
Sheet are widely used in different industries especially tyre business, medical, and etc. To
compare with the synthetic rubber, ribbed smoked sheet is better because of lower cost,
useful life, and also durable in different conditions. There are five major grades of ribbed
smoked sheet and the different grade is the result of the preparation of the coagulated field
latex during the production of the unsmoked sheets, also depend heavily on visual inspection.
 Grade Description (refer from green book standard for ribbed smoked sheets)
No: 1 RSS
Each bale must be packed free of mould but very slight
traces of dry mould on wrappers or bale surfaces adjacent to
wrapper found at the time of delivery will not be objected to
provided there is no penetration of mould inside the bale.
Oxidized spots or streaks, weak, heated, undercured, and
The rubber must be dry, clean, strong sound and from
blemishes, rust, blisters, sand, dirty packing and any other
foreign matter, except slight specks. Small pinhead bubbles,
if scattered, will not be objected to.
48
No:2 RSS Slight rust, and slight amount of dry mould on

wrappers, bale surfaces and interior sheets, found at time of
delivery will not be objected to, provided these conditions
either singly or in combination, do not exist to an
objectionable extent on and in more than 5% of the number
of bales included in the delivery, lot or tender as determined
by the number of bales inspected. Small bubbles and slight
specks of barks, if catteres, will not be objected to.
oversmoked, opaque and burnt are not permissible. The
rubber must be dry, clean, strong, sound and free from
blemishes, blisters, sand, dirty packing and all other foreign
matter other than specified above as permissible.
No: 3 RSS Rust and dry mould on wrappers, bale surfaces and
interior sheets, found at time of delivery will not be
objected to, provided these conditions, either singly or in
combination, do not exist to an objectionable extent on and
in more than 10% of the number of bales included in the
delivery, lot or tender as determined by the number of bales
inspected. Slight blemishes in color, small bubbles and
small specks of bark permissible.
The rubber must be dry, strong and free of blemishes,
blisters, sand dirty packing and all other foreign matter
49
sheets, found at time delivery will not be objected to
Medium size bark particles, bubbles, translucent stains,
slightly sticky and slightly over smoked rubber as
permissible but should not be evident to a marked degree.
Oxidized spots, or streaks, weak, heated, undercured
opaque and burnt sheets are not permissible.
The rubber must be dry, firm and free of blemishes,
blisters, sand, dirty packing and all other foreign matter
sheets, found at time of delivery will not be objected to
50
 Packing Rubber
 Cutting Rubber
3.7.2 Product Strategy

According to the Para rubber industry, ribbed smoked sheet (RSS) is one product that
some businesses are emphasized on especially tyre industry. To compare with Malaysia and
Indonesia, Thailand is the best exporting ribbed smoked sheet which is approximately 515
thousand ton (September, 2010), also can export high volume of ribbed smoked sheet no. 3
which is approximately 271,657 metric ton (June, 2010). The reason why majority of ribbed
smoked sheet in Thailand is no.3 because Thailand can be produce ribbed smoked sheet no.3
as a number one, easy to preserve, fast moving, and also standard stable. Thus, Siam Rubber
Company limited has realized for this point and provide ribbed smoked sheet into the market
especially high producing in ribbed smoked sheet no. 3. Also, the customers can be reliable
and confidence for the productivities and qualities of Siam Rubber.
51
Table show exporting ribbed smoked sheet by grades 2005 – 2009

Month/Year RSS 1 RSS 2 RSS 3 RSS 4 RSS 5 Total
2005 22,614 1,658 726,100 165,270 4,524 920,972
2006 13,756 1,630 769,487 149,965 3,149 938,984
2007 11,070 2,185 696,020 147,870 3,094 861,326
2008 12,882 3,821 639,863 137,185 2,030 796,549
2009 7,159 4,111 600,206 80,302 1,695 694,510
Average 13,496 2,681 686,335 136,118 2,898 842,468
Table show exporting ribbed smoked sheet by grades 2010

Month/Year RSS 1 RSS 2 RSS 3 RSS 4 RSS 5 Total
Jan 360 509 69,561 9,262 120 79,946
Feb 394 176 58,923 7,515 - 67,085
Mar 245 291 55,461 10,499 100 66,692
Apr 340 314 30,958 6,300 142 38,112
May 124 19 24,441 5,634 120 30,395
Jun 154 115 32,313 7,220 360 40,240
Average 270 237 45,276 7,738 168 53,745
Source: [http://www.rubberthai.com/price/eng/price_eng.htm]
From the table, the average of exporting ribbed smoked sheet by grades years 2005 –
2009 is 842,468 Metric tons per year and also the highest type of exporting ribbed smoked
sheet is no. 3.
52
3.7.3 Branding Strategy
Siam Rubber Co. Ltd. set the brand strategy for easy to remember. We use the word
“Siam Rubber” in trademark of the company for show the customer what is our business. The
customers can know that we doing Para rubber business, but they cannot know where is the
place that we located in because we have not put the place into the trademark. About the
detail of trademark, we use green and blue colour as a majority of trademark because it is
related with the characteristics of Para rubber. We used the specific image of “S” for capture
the eyes of customers. Thus, Siam Rubber Co. Ltd. can be memorized for both our suppliers
and customers especially in the north of Thailand because we are the first brand and chapter
the customers’ eye by our distinctive trademark.
53
3.7.4 Price strategy

Siam Rubber Co. Ltd. has considered about the main price of product which can
separate into two types including with buying price and selling price. At first, we have to
received the latex from local agriculturists and evaluate the price from the percentage of latex
that measure by expert or latex receiver station. When we consider about the buying price of
latex, we based the buying price of latex from Rubber Market. Also, we cannot specific the
buying price because the fluctuation price of latex, economics, and demand of rubber.
Table show the buying price of latex at the Rubber Market (2002 – 2009)

Year
2002 30.49 164,210 - - - -
2003 38.16 7,898,381 - - - -
2004 43.86 4,154,375 - - - -
2005 52.7 3,481,226 - - - -
2006 68.02 3,979,700 - - - -
2007 68.1 1,607,644.91 - - - -
2008 75.56 1,150,333.83 - - - -
2009 56.95 957,984.98 - - - -
* Concentrated Latex quote in Bulk
Table show the buying price of latex at the Rubber Market (2010)
Month
January 90.38 96,258.02 - - - -
February 96.68 123,854.12 - - - -
March 102.48 69,294.42 - - - -
April 108.59 9,053.44 - - - -
May 98.35 31,643.57 - - - -
June 102.35 52,422.18 - - 105.83 23,276.53
July 99.05 65,476.34 - - 98.31 18,192.70
August 98.16 53,738.78 - - 96.48 19,320.57
September 99.77 38,984.22 - - 98.11 13,927.12
October 103.19 42,287.23 - - - -
November 117.35 2,734.28 - - - -
* Concentrated Latex quote in Bulk
54
Source: [ http://www.rubberthai.com/price/price_index.htm]
Finally, we will sell the finished product which is ribbed smoked sheet especially
ribbed smoked sheet No.3 to the public and also private companies who give highest price.
This graph show the price of ribbed smoked sheet no.3 at Rubber Market
(2006 – November 2010)
Table show the buying price of Ribbed Smoked Rubber no.3 at Rubber Market
(2000 – 2009)

Year
Price Price Price
Unit (Kg.) Unit (Kg.) Unit (Kg.)
(Baht/Kg.) (Baht/Kg.) (Baht/Kg.)
2000 24.28 13,662,234 - - - -
2001 25.03 6,278,815 26.81 105,086 - -
2002 30.23 23,964,046 33.54 1,789,328 33.66 2,588,246
2003 41.71 32,394,711 41.54 4,967,649 41.65 6,080,180
2004 48.09 26,671,442 47.8 4,506,939 47.75 8,509,985
2005 57.05 20,166,181 57.65 8,241,780 58.1 2,671,540
2006 74.63 29,995,834 71.9 2,884,082 74.06 10,672,812
2007 74.36 26,886,921 72.75 861,445 74.32 9,13,159
2008 82.52 23,855,220 82.2 2,789,620 82.39 10,992,783
2009 62.01 22,086,442 62.43 3,816,350 61.87 13,742,152
55
Table show the buying price of Ribbed Smoked Rubber no.3 at Rubber Market (2010)
Month
January 96.31 2,889,046 96.23 492,067 95.99 1,758,917
February 99,59 2,547,385 99.4 426,070 99.61 1,356,169
March 105.78 1,436,818 104.38 95,819 105.83 418,686
April 117.93 499,679 - - 117.86 81,018
May 112.26 1,428,849 110.49 53,738 112.64 947,157
June 114.36 2,860,079 114.44 392,509 114.36 1,604,049
July 102.8 3,067,996 102.69 483,852 102.86 2,512,102
August 103.37 2,771,736 103.42 495,016 103.39 1,987,216
September 106.26 3,241,180 106.17 499,375 106.26 2,214,153
October 110.07 2,932,372 109.92 396,298 110.13 2,647,147
November 123.05 1,009,836 121.66 179,019 122.32 1,099,770
Source: [http://www.rubberthai.com/price/price_index.htm]
According to the base price at three rubber market 2010, Siam Rubber Company will
set the appropriate price which higher than rubber market 1 baht for attract the group of
intermediary to sale their product to us. Also, we will give the higher price amount 0.5 baht
than rubber market next year following for maintains the base customers.
3.7.5 Place strategy

Siam Rubber Co. Ltd. is the company where located in the north of Thailand, also is
the first company where produces ribbed smoked sheet for provide both public and private
companies in Thailand. Thus, we have considered Chiangrai to locate the factory and
distribute our product to other places in Thailand especially east part by outsourcing trucks
because of reducing the cost and received the guarantee from the outsourcing company.
We focus on the location in Mae Jan District, Chiangrai province because of located
in the area of Para rubber (see table), have the water resource, far from the urban area, and
also easy to export through the triangle economics countries.
56
The table show the rubber planted areas in the north of Thailand. (Unit: Rai)
Provinces 2006 2007 2008
Chiang Rai 49,288 81,936 92,851
Phetchabun 9,254 10,954 24,569
Nan 18,818 41,742 47,728
Phayao 32,740 53,687 81,473
Phisanulok 14,531 67,820 145,328
Uthai Thani 12,765 21,235 21,878
Lampang 3,032 7,361 25,866
Lamphun 3,531 8,529 8,865
Chiang Mai 8,716 20,516 32,927
Maehongson 782 1,435 2,286
Tak 8,976 6,965 18,578
Kamphaeng Phet 28,798 32,215 32,784
Sukhothai 13,558 18,685 19,906
Phrae 6,138 12,840 17,636
Uttaradit 2,606 6,260 18,025
Phijit 1,276 1,537 1,896
Nakhon Sawan 4,028 5,760 7,982
North Region Total 218,837 399,477 600,578
Source: [http://www.rubberthai.com/statistic/stat_index.htm[
Table show Thailand Natural Rubber area, production, yield and farm price
Planted area Harvested area Production Yield per rai Faem price
Year
(1,000 rai) (1,000 rai) (1,000 Tons) (Kgs.) (Baht/Kg.)
2000 12,421 9,524 2,378 250 21.53
2001 12,440 9,521 2,561 269 20.52
2002 12,525 9,708 2,632 271 27.68
2003 12,616 10,008 2,861 286 37.76
2004 12,950 10,354 3,008 290 44.12
2005 13,596 10,574 2,980 282 53.57
2006 14,342 10,901 3,095 284 66.24
2007 15,362 11,087 3,022 273 68.90
2008 16,717 11,371 3,167 278 71.38
57
3.7.6 Promotion Strategy

According to the promotion strategy, Siam Rubber Co. Ltd. will build up the network
of agriculturist who grows the Para rubber in Chiangrai for make sure that they will sell the
concentrated latex to our company. The way to make the network of agriculturist is reliable,
standard, and loyalty. If the agriculturists want to sell the concentrate latex for long term
period and the quantities stable with us, it can show the potential of Siam Rubber Co. Ltd.
and we will be the first choice of agriculturists who grow the Para rubber in Chiangrai and
nearly areas as well.
3.7.7 Advertising
o Radio
We will promote our companies by radio because most of agriculturists in the north of
Thailand prefer to receive information or news through radio. Siam Rubber Co. Ltd.
chooses two radio wave included MCOT 101.25 F.M. and also Agriculture radio 103.00
F.M. because of both radio related with agriculturist who grow the Para rubber in
Chiangrai and nearly areas.
o Billboard
We choose the billboard for advertising because it can get into the agriculturist and
make them memorize. For the billboard, we will take it in the early of advertising because
we just want the agriculturist know our company through voice and image.
58
o Internet
There are two reasons why we also used the internet to advertise because of it cheaper
than other alternative ways, fast to update, and the customers can be receive the
information both public and private companies.
o Agriculture Fair/ Exhibition
This advertise can help us advertise to the direct both suppliers and customers because
we can provide the information of Siam Rubber Co. Ltd. or show the certificated of our
company like an International Organization for Standardization (ISO) in the agriculture
fair or exhibition. Also, this is the way that our company can be face to face with the
suppliers and customers.
59
o Souvenir
We will have some souvenir such as bag, glass, and calendar provide to both suppliers
and customers who contact with us. This is the good way to advertising Siam Rubber because
those suppliers and customers will recognize the logo of our brand and make our brand get
inside their perception.
60
3.8) Sales Forecast/Profit Estimation

Para rubber is the important product which the market wants and also tends to
increasing price because of the market demand.
In 2010, Chiangrai have already grown 350,000 rai of Para rubber and tend to
increase growing the Para rubber in the future more than one million rai. Also, more than
5,000 rai can be harvest the production.
The production process of agriculturist, they can harvest the concentrate latex for 3
kilogram per rai and also will harvest 20 days in each month for gain high potential
concentrate latex. If we estimate the production of concentrate latex in Chiangrai, there will
be like the table following
Table show, Forecasting 10 years for harvest the Para rubber
Harvest Area
Year
(Rai)
2011 10,000
2012 50,000
2013 100,000
2014 350,000
2015 500,000
2016 600,000
2017 700,000
2018 800,000
2019 900,000
2020 1,500,000
However, agriculturists who grow the Para rubber can harvest the concentrate latex
across year except rainy season and when the Para rubber changes the new leaf normally in
the months of January – February and also July – October. (See table 3.8.1)
We forecast that the production of concentrate latex in Chiangrai province will be 25
percent that the suppliers will sale with us. (See table 3.8.2) Also, we consider the
concentrate latex in the process of smoked rubber because when we process 100% of the
concentrate latex, we will receive outcome which is ribbed smoked sheet not over 45% as
well. The productivity of our company will transform into blocking sheet for 50 percents,
ribbed smoked sheet no.3 for 45 percents, and also 5 percents of cutting rubber. When we
know the quantities of certain raw material which get inside the company, we also estimate
the production in each month. (See table 3.8.3) We observe that the production is not equal.
61
So, we have to create sale and inventory plan for keep the quantities of production and also
maintain our potential suppliers and customers. (See table 3.8.4)
62
Table 3.8.1
Table Show Forecast Quantity of Latex in Chiang Rai

Year Quantity of Product 100% Jan(0%) Feb(0%) Mar(100%) Apr(100%) May(100%) Jun(100%) Jul(60%) Aug(60%) Sep(60%) Oct(60%) Nov(100%) Dec(100%)
2011 30,000 - - 600,000 600,000 600,000 600,000 360,000 360,000 360,000 360,000 600,000 600,000
2012 150,000 - - 3,000,000 3,000,000 3,000,000 3,000,000 1,800,000 1,800,000 1,800,000 1,800,000 3,000,000 3,000,000
2013 300,000 - - 6,000,000 6,000,000 6,000,000 6,000,000 3,600,000 3,600,000 3,600,000 3,600,000 6,000,000 6,000,000
2014 1,050,000 - - 21,000,000 21,000,000 21,000,000 21,000,000 12,600,000 12,600,000 12,600,000 12,600,000 21,000,000 21,000,000
2015 1,500,000 - - 30,000,000 30,000,000 30,000,000 30,000,000 18,000,000 18,000,000 18,000,000 18,000,000 30,000,000 30,000,000
2016 1,800,000 - - 36,000,000 36,000,000 36,000,000 36,000,000 21,600,000 21,600,000 21,600,000 21,600,000 36,000,000 36,000,000
2017 2,100,000 - - 42,000,000 42,000,000 42,000,000 42,000,000 25,200,000 25,200,000 25,200,000 25,200,000 42,000,000 42,000,000
2018 2,400,000 - - 48,000,000 48,000,000 48,000,000 48,000,000 28,800,000 28,800,000 28,800,000 28,800,000 48,000,000 48,000,000
2019 2,700,000 - - 54,000,000 54,000,000 54,000,000 54,000,000 32,400,000 32,400,000 32,400,000 32,400,000 54,000,000 54,000,000
2020 4,500,000 - - 90,000,000 90,000,000 90,000,000 90,000,000 54,000,000 54,000,000 54,000,000 54,000,000 90,000,000 90,000,000
Average 3 Kg./Rai/Day 1 Month Harvest 20 Days
Table 3.8.2
Quantity of Latex
Year Market Share Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 20% - - 120,000 120,000 120,000 120,000 72,000 72,000 72,000 72,000 120,000 120,000
2012 20% - - 600,000 600,000 600,000 600,000 360,000 360,000 360,000 360,000 600,000 600,000
2013 20% - - 1,200,000 1,200,000 1,200,000 1,200,000 720,000 720,000 720,000 720,000 1,200,000 1,200,000
2014 20% - - 4,200,000 4,200,000 4,200,000 4,200,000 2,520,000 2,520,000 2,520,000 2,520,000 4,200,000 4,200,000
2015 20% - - 6,000,000 6,000,000 6,000,000 6,000,000 3,600,000 3,600,000 3,600,000 3,600,000 6,000,000 6,000,000
2016 20% - - 7,200,000 7,200,000 7,200,000 7,200,000 4,320,000 4,320,000 4,320,000 4,320,000 7,200,000 7,200,000
2017 20% - - 8,400,000 8,400,000 8,400,000 8,400,000 5,040,000 5,040,000 5,040,000 5,040,000 8,400,000 8,400,000
2018 20% - - 9,600,000 9,600,000 9,600,000 9,600,000 5,760,000 5,760,000 5,760,000 5,760,000 9,600,000 9,600,000
2019 20% - - 10,800,000 10,800,000 10,800,000 10,800,000 6,480,000 6,480,000 6,480,000 6,480,000 10,800,000 10,800,000
2020 20% - - 18,000,000 18,000,000 18,000,000 18,000,000 10,800,000 10,800,000 10,800,000 10,800,000 18,000,000 18,000,000
Average market share From Chiang Rai market= 20% Unit= Kilogram
63
Table 3.8.3
Quantity of real latex
Year % of real latex Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 40% - - 48,000 48,000 48,000 48,000 28,800 28,800 28,800 28,800 48,000 48,000
2012 40% - - 240,000 240,000 240,000 240,000 144,000 144,000 144,000 144,000 240,000 240,000
2013 40% - - 480,000 480,000 480,000 480,000 288,000 288,000 288,000 288,000 480,000 480,000
2014 40% - - 1,680,000 1,680,000 1,680,000 1,680,000 1,008,000 1,008,000 1,008,000 1,008,000 1,680,000 1,680,000
2015 40% - - 2,400,000 2,400,000 2,400,000 2,400,000 1,440,000 1,440,000 1,440,000 1,440,000 2,400,000 2,400,000
2016 40% - - 2,880,000 2,880,000 2,880,000 2,880,000 1,728,000 1,728,000 1,728,000 1,728,000 2,880,000 2,880,000
2017 40% - - 3,360,000 3,360,000 3,360,000 3,360,000 2,016,000 2,016,000 2,016,000 2,016,000 3,360,000 3,360,000
2018 40% - - 3,840,000 3,840,000 3,840,000 3,840,000 2,304,000 2,304,000 2,304,000 2,304,000 3,840,000 3,840,000
2019 40% - - 4,320,000 4,320,000 4,320,000 4,320,000 2,592,000 2,592,000 2,592,000 2,592,000 4,320,000 4,320,000
2020 40% - - 7,200,000 7,200,000 7,200,000 7,200,000 4,320,000 4,320,000 4,320,000 4,320,000 7,200,000 7,200,000
Unit = Kilogram
64
Table 3.8.4
Quantities of Product Per Month
Year Product Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 Ribbed smoked sheets No.3 - - 21,600 21,600 21,600 21,600 12,960 12,960 12,960 12,960 21,600 21,600
Ribbed smoked sheets No.3 Packed - - 24,000 24,000 24,000 24,000 14,400 14,400 14,400 14,400 24,000 24,000
Cutting Rubber - - 2,400 2,400 2,400 2,400 1,440 1,440 1,440 1,440 2,400 2,400
Cutting Rubber - - 12,000 12,000 12,000 12,000 7,200 7,200 7,200 7,200 12,000 12,000
Cutting Rubber - - 24,000 24,000 24,000 24,000 14,400 14,400 14,400 14,400 24,000 24,000
Cutting Rubber - - 84,000 84,000 84,000 84,000 50,400 50,400 50,400 50,400 84,000 84,000
2015 Ribbed smoked sheets No.3 - - 1,080,000 1,080,000 1,080,000 1,080,000 648,000 648,000 648,000 648,000 1,080,000 1,080,000
Ribbed smoked sheets No.3 Packed - - 1,200,000 1,200,000 1,200,000 1,200,000 720,000 720,000 720,000 720,000 1,200,000 1,200,000
Cutting Rubber - - 120,000 120,000 120,000 120,000 72,000 72,000 72,000 72,000 120,000 120,000
Ribbed smoked sheets No.3 Packed - - 1,440,000 1,440,000 1,440,000 1,440,000 864,000 864,000 864,000 864,000 1,440,000 1,440,000
Cutting Rubber - - 144,000 144,000 144,000 144,000 86,400 86,400 86,400 86,400 144,000 144,000
Ribbed smoked sheets No.3 Packed - - 1,680,000 1,680,000 1,680,000 1,680,000 1,008,000 1,008,000 1,008,000 1,008,000 1,680,000 1,680,000
Cutting Rubber - - 168,000 168,000 168,000 168,000 100,800 100,800 100,800 100,800 168,000 168,000
2018 Ribbed smoked sheets No.3 - - 1,728,000 1,728,000 1,728,000 1,728,000 1,036,800 1,036,800 1,036,800 1,036,800 1,728,000 1,728,000
Cutting Rubber - - 192,000 192,000 192,000 192,000 115,200 115,200 115,200 115,200 192,000 192,000
Cutting Rubber - - 216,000 216,000 216,000 216,000 129,600 129,600 129,600 129,600 216,000 216,000
Cutting Rubber - - 360,000 360,000 360,000 360,000 216,000 216,000 216,000 216,000 360,000 360,000
Table 3.8.4
Unit= Kilogram
65
Sale & Inventory Plan

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 Ribbed smoked sheet No.3 - - 21,600 21,600 21,600 21,600 12,960 12,960 12,960 12,960 21,600 21,600
Sale - - 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Product in stock - - 9,600 19,200 28,800 38,400 39,360 40,320 41,280 42,240 51,840 61,440
Ribbed smoked sheet No.3 Pack - - 24,000 24,000 24,000 24,000 14,400 14,400 14,400 14,400 24,000 24,000
Sale - - 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000
Product in stock - - 8,000 16,000 24,000 32,000 30,400 28,800 27,200 25,600 33,600 41,600
Cutting Rubber - - 2,400 2,400 2,400 2,400 1,440 1,440 1,440 1,440 2,400 2,400
Sale - - 2,400 2,400 2,400 2,400 1,440 1,440 1,440 1,440 2,400 2,400
Product in stock - - - - - - - - - - - -
Sale 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Product in stock 36,440 11,440 94,440 177,440 260,440 343,440 383,240 423,040 462,840 502,640 585,640 668,640
Sale 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Product in stock 16,600 - 8,400 86,600 181,600 276,600 371,600 418,600 465,600 512,600 559,600 654,600 749,600
Cutting Rubber - - 12,000 12,000 12,000 12,000 7,200 7,200 7,200 7,200 12,000 12,000
Sale - - 12,000 12,000 12,000 12,000 7,200 7,200 7,200 7,200 12,000 12,000
Product in stock - - - - - - - - - - - -
Sale 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Product in stock 518,640 368,640 434,640 500,640 566,640 632,640 612,240 591,840 571,440 551,040 617,040 683,040
Sale 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Product in stock 549,600 349,600 449,600 549,600 649,600 749,600 729,600 709,600 689,600 669,600 769,600 869,600
Cutting Rubber - - 24,000 24,000 24,000 24,000 14,400 14,400 14,400 14,400 24,000 24,000
Sale - - 24,000 24,000 24,000 24,000 14,400 14,400 14,400 14,400 24,000 24,000
Product in stock - - - - - - - - - - - -
66
Sale 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Product in stock 483,040 283,040 839,040 1,395,040 1,951,040 2,507,040 2,760,640 3,014,240 3,267,840 3,521,440 4,077,440 4,633,440
Sale 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000
Product in stock 569,600 269,600 809,600 1,349,600 1,889,600 2,429,600 2,633,600 2,837,600 3,041,600 3,245,600 3,785,600 4,325,600
Cutting Rubber - - 84,000 84,000 84,000 84,000 50,400 50,400 50,400 50,400 84,000 84,000
Sale - - 84,000 84,000 84,000 84,000 50,400 50,400 50,400 50,400 84,000 84,000
Product in stock - - - - - - - - - - - -
2015 Ribbed smoked sheet No.3 - - 1,080,000 1,080,000 1,080,000 1,080,000 648,000 648,000 648,000 648,000 1,080,000 1,080,000
Sale 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
Product in stock 3,833,440 3,033,440 3,313,440 3,593,440 3,873,440 4,153,440 4,001,440 3,849,440 3,697,440 3,545,440 3,825,440 4,105,440
Ribbed smoked sheet No.3 Pack - - 1,200,000 1,200,000 1,200,000 1,200,000 720,000 720,000 720,000 720,000 1,200,000 1,200,000
Sale 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Product in stock 3,325,600 2,325,600 2,525,600 2,725,600 2,925,600 3,125,600 2,845,600 2,565,600 2,285,600 2,005,600 2,205,600 2,405,600
Cutting Rubber - - 120,000 120,000 120,000 120,000 72,000 72,000 72,000 72,000 120,000 120,000
Sale - - 120,000 120,000 120,000 120,000 72,000 72,000 72,000 72,000 120,000 120,000
Product in stock - - - - - - - - - - - -
Sale 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Product in stock 3,105,440 2,105,440 6,016,800 6,436,800 6,856,800 7,276,800 7,048,800 6,820,800 6,592,800 6,364,800 6,784,800 7,204,800
Ribbed smoked sheet No.3 Pack - - 1,440,000 1,440,000 1,440,000 1,440,000 864,000 864,000 864,000 864,000 1,440,000 1,440,000
Sale 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Product in stock 1,405,600 405,600 845,600 1,285,600 1,725,600 2,165,600 2,029,600 1,893,600 1,757,600 1,621,600 2,061,600 2,501,600
Cutting Rubber - - 144,000 144,000 144,000 144,000 86,400 86,400 86,400 86,400 144,000 144,000
Sale - - 144,000 144,000 144,000 144,000 86,400 86,400 86,400 86,400 144,000 144,000
Product in stock - - - - - - - - - - - -
67
Sale 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Product in stock 6,004,800 4,804,800 5,116,800 5,428,800 5,740,800 6,052,800 5,760,000 5,467,200 5,174,400 4,881,600 5,193,600 5,505,600
Ribbed smoked sheet No.3 Pack - - 1,680,000 1,680,000 1,680,000 1,680,000 1,008,000 1,008,000 1,008,000 1,008,000 1,680,000 1,680,000
Sale 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Product in stock 1,501,600 501,600 1,181,600 1,861,600 2,541,600 3,221,600 3,229,600 3,237,600 3,245,600 3,253,600 3,933,600 4,613,600
Cutting Rubber - - 168,000 168,000 168,000 168,000 100,800 100,800 100,800 100,800 168,000 168,000
Sale - - 168,000 168,000 168,000 168,000 100,800 100,800 100,800 100,800 168,000 168,000
Product in stock - - - - - - - - - - - -
2018 Ribbed smoked sheet No.3 - - 1,728,000 1,728,000 1,728,000 1,728,000 1,036,800 1,036,800 1,036,800 1,036,800 1,728,000 1,728,000
Sale 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Product in stock 4,305,600 3,105,600 3,633,600 4,161,600 4,689,600 5,217,600 5,054,400 4,891,200 4,728,000 4,564,800 5,092,800 5,620,800
Sale 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Product in stock 3,413,600 2,213,600 2,933,600 3,653,600 4,373,600 5,093,600 5,045,600 4,997,600 4,949,600 4,901,600 5,621,600 6,341,600
Cutting Rubber - - 192,000 192,000 192,000 192,000 115,200 115,200 115,200 115,200 192,000 192,000
Sale - - 192,000 192,000 192,000 192,000 115,200 115,200 115,200 115,200 192,000 192,000
Product in stock - - - - - - - - - - - -
Sale 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Product in stock 4,320,800 3,020,800 3,664,800 4,308,800 4,952,800 5,596,800 5,463,200 5,329,600 5,196,000 5,062,400 5,706,400 6,350,400
Sale 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Product in stock 4,841,600 3,341,600 4,001,600 4,661,600 5,321,600 5,981,600 5,777,600 5,573,600 5,369,600 5,165,600 5,825,600 6,485,600
Cutting Rubber - - 216,000 216,000 216,000 216,000 129,600 129,600 129,600 129,600 216,000 216,000
Sale - - 216,000 216,000 216,000 216,000 129,600 129,600 129,600 129,600 216,000 216,000
Product in stock - - - - - - - - - - - -
68
Sale 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Product in stock 4,350,400 2,350,400 3,590,400 4,830,400 6,070,400 7,310,400 7,254,400 7,198,400 7,142,400 7,086,400 8,326,400 9,566,400
Sale 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000
Product in stock 4,285,600 2,085,600 3,485,600 4,885,600 6,285,600 7,685,600 7,645,600 7,605,600 7,565,600 7,525,600 8,925,600 10,325,600
Cutting Rubber - - 360,000 360,000 360,000 360,000 216,000 216,000 216,000 216,000 360,000 360,000
Sale - - 360,000 360,000 360,000 360,000 216,000 216,000 216,000 216,000 360,000 360,000
Product in stock - - - - - - - - - - - -
69
3.9 Price Forecasting

Due to Para rubber is one thing that required in the world industry and tends to
increase the price. We have estimated the price forecasting for Para rubber as the table below.
Average Price/Kilogram
Year Ribbed Smoked Sheets Ribbed Smoked Sheets No.3 Cutting
Latex
No.3 Packed Rubber
2011 130 150 155 145
2012 135 155 160 150
2013 140 160 165 155
2014 145 165 170 160
2015 150 170 175 165
2016 145 165 170 160
2017 145 165 170 160
2018 150 170 175 165
2019 155 175 180 170
2020 160 180 185 175
70
When we already estimate price forecasting, we will get the sale forecasting in each year following.
Sales Forecast
Siam Rubber Company Limited
2011 Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Totals
Ribbed Smoked sheet units sold - - 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 120,000
Sale price @ unit 150 150 150 150 150 150 150 150 150 150 150 150
Ribbed Smoked Sheet TOTAL - - 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 18,000,000
Packing Rubber units sold - - 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 160,000
Sale price @ unit 155 155 155 155 155 155 155 155 155 155 155 155
Packing Rubber TOTAL - - 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 24,800,000
Cutting Rubber units sold - - 2,400 2,400 2,400 2,400 1,440 1,440 1,440 1,440 2,400 2,400 20,160
Sale price @ unit 145 145 145 145 145 145 145 145 145 145 145 145
Cutting Rubber TOTAL - - 348,000 348,000 348,000 348,000 208,800 208,800 208,800 208,800 348,000 348,000 2,923,200
Total 0 0 4,628,000 4,628,000 4,628,000 4,628,000 4,488,800 4,488,800 4,488,800 4,488,800 4,628,000 4,628,000 45,723,200
2012 Sales Forecast
Ribbed Smoked sheet units sold 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Sale price @ unit 155 155 155 155 155 155 155 155 155 155 155 155
Ribbed Smoked Sheet TOTAL 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 3,875,000 46,500,000
Packing Rubber units sold 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
Sale price @ unit 160 160 160 160 160 160 160 160 160 160 160 160
Packing Rubber TOTAL 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 48,000,000
Sale price @ unit 150 150 150 150 150 150 150 150 150 150 150 150
Cutting Rubber TOTAL - - 1,800,000 1,800,000 1,800,000 1,800,000 1,080,000 1,080,000 1,080,000 1,080,000 1,800,000 1,800,000 15,120,000
Total 7,875,000 7,875,000 9,675,000 9,675,000 9,675,000 9,675,000 8,955,000 8,955,000 8,955,000 8,955,000 9,675,000 9,675,000 109,620,000
71
2013 Sales Forecast
Ribbed Smoked sheet units sold 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,800,000
Sale price @ unit 160 160 160 160 160 160 160 160 160 160 160 160
Packing Rubber units sold 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,400,000
Sale price @ unit 165 165 165 165 165 165 165 165 165 165 165 165
Sale price @ unit 155 155 155 155 155 155 155 155 155 155 155 155
Total 57,000,000 57,000,000 60,720,000 60,720,000 60,720,000 60,720,000 59,232,000 59,232,000 59,232,000 59,232,000 60,720,000 60,720,000 715,248,000
2014 Sales Forecast
Sale price @ unit 165 165 165 165 165 165 165 165 165 165 165 165
Packing Rubber units sold 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 3,600,000
Sale price @ unit 170 170 170 170 170 170 170 170 170 170 170 170
Sale price @ unit 160 160 160 160 160 160 160 160 160 160 160 160
Total 84,000,000 84,000,000 97,440,000 97,440,000 97,440,000 97,440,000 92,064,000 92,064,000 92,064,000 92,064,000 97,440,000 97,440,000 1,120,896,000
2015 Sales Forecast
Sale price @ unit 170 170 170 170 170 170 170 170 170 170 170 170
Ribbed Smoked Sheet TOTAL 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 1,632,000,000
Packing Rubber units sold 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Sale price @ unit 175 175 175 175 175 175 175 175 175 175 175 175
Packing Rubber TOTAL 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 175,000,000 2,100,000,000
Cutting Rubber units sold - - 120,000 120,000 120,000 120,000 72,000 72,000 72,000 72,000 120,000 120,000 1,008,000
Sale price @ unit 165 165 165 165 165 165 165 165 165 165 165 165
Total 311,000,000 311,000,000 330,800,000 330,800,000 330,800,000 330,800,000 322,880,000 322,880,000 322,880,000 322,880,000 330,800,000 330,800,000 3,898,320,000
72
2016 Sales Forecast
Ribbed Smoked sheet units sold 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Sale price @ unit 165 165 165 165 165 165 165 165 165 165 165 165
Sale price @ unit 170 170 170 170 170 170 170 170 170 170 170 170
Sale price @ unit 160 160 160 160 160 160 160 160 160 160 160 160
Total 335,000,000 335,000,000 358,040,000 358,040,000 358,040,000 358,040,000 348,824,000 348,824,000 348,824,000 348,824,000 358,040,000 358,040,000 4,213,536,000
2017 Sales Forecast
Sale price @ unit 165 165 165 165 165 165 165 165 165 165 165 165
Sale price @ unit 170 170 170 170 170 170 170 170 170 170 170 170
Sale price @ unit 160 160 160 160 160 160 160 160 160 160 160 160
Total 368,000,000 368,000,000 394,880,000 394,880,000 394,880,000 394,880,000 384,128,000 384,128,000 384,128,000 384,128,000 394,880,000 394,880,000 4,641,792,000
2018 Sales Forecast
Sale price @ unit 170 170 170 170 170 170 170 170 170 170 170 170
Sale price @ unit 175 175 175 175 175 175 175 175 175 175 175 175
Sale price @ unit 165 165 165 165 165 165 165 165 165 165 165 165
Total 414,000,000 414,000,000 445,680,000 445,680,000 445,680,000 445,680,000 433,008,000 433,008,000 433,008,000 433,008,000 445,680,000 445,680,000 5,234,112,000
73
2019 Sales Forecast
Sale price @ unit 175 175 175 175 175 175 175 175 175 175 175 175
Sale price @ unit 180 180 180 180 180 180 180 180 180 180 180 180
Sale price @ unit 170 170 170 170 170 170 170 170 170 170 170 170
Total 497,500,000 497,500,000 534,220,000 534,220,000 534,220,000 534,220,000 519,532,000 519,532,000 519,532,000 519,532,000 534,220,000 534,220,000 6,278,448,000
2020 Sales Forecast
Sale price @ unit 180 180 180 180 180 180 180 180 180 180 180 180
Sale price @ unit 185 185 185 185 185 185 185 185 185 185 185 185
Sale price @ unit 175 175 175 175 175 175 175 175 175 175 175 175
Total 767,000,000 767,000,000 830,000,000 830,000,000 830,000,000 830,000,000 804,800,000 804,800,000 804,800,000 804,800,000 830,000,000 830,000,000 9,733,200,000
74
3.10 Marketing Expense

Siam Rubber Company will more emphasize about suppliers in term of marketing
because the supplier will give the certain raw material to the company. So, the marketing
expense for suppliers will be including with
- We will receive the concentrate latex by give the higher price amount 1 baht per
kilogram in the first year for attract the intermediary and also buy it for 0.5 baht per
kilogram in the next following year by refer the quantities from sale forecasting.
- Siam Rubber will use radio to promote the company by spot advertise at 101.25 FM
MCOT Chiangrai, amount 13 time per day, have to spend 1,500 baht per day and
also103 FM the radio of Department of Fisheries, amount 10 times per day, and have
to spend 40,000 baht per month.
- We will join with Chiangrai Red Cross and winter festival by estimate expense
around 200,000 baht per year.
- Also, we will join with Chiangrai flower festival by spend 200,000 baht per times.
- About the souvenir, we have to spend money for make it 10,000 baht per month.
- Siam Rubber will advertise the company through the internet for 5,000 baht per
month and also billboard around Chiangrai province for 10 units, have expense
amount 50,000 baht in each month.
75
Maketing Expense
Year 2011
Marketing Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Adding purchasing price - - 150,000 150,000 150,000 150,000 90,000 90,000 90,000 90,000 150,000 150,000
Radio advertisement 86,500 82,000 86,500 40,000 86,500 85,000 86,500 86,500 85,000 86,500 85,000 86,500
Chiang Rai Red cross and winter festival 200,000 - - - - - - - - - - -
Chiang Rai flower festival - - - - - - - - - - - 200,000
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total Marketing Expense 351,500 147,000 301,500 255,000 301,500 300,000 241,500 241,500 240,000 241,500 300,000 501,500
Unit = THB
Year 2012
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total Marketing Expense 351,500 148,500 526,500 480,000 526,500 525,000 376,500 376,500 375,000 376,500 525,000 726,500
Unit = THB
76
Year 2013
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total Marketing Expense 351,500 147,000 901,500 855,000 901,500 900,000 601,500 601,500 600,000 601,500 900,000 1,101,500
Unit = THB
Year 2014
Adding purchasing price - - 2,625,000 2,625,000 2,625,000 2,625,000 1,575,000 1,575,000 1,575,000 1,575,000 2,625,000 2,625,000
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total Marketing Expense 351,500 147,000 2,776,500 2,730,000 2,776,500 2,775,000 1,726,500 1,726,500 1,725,000 1,726,500 2,775,000 2,976,500
Unit = THB
Year 2015
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Unit = THB
77
Year 2016
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Unit = THB
Yearn 2017
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Unit = THB
Year 2018
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Unit = THB
78
Year 2019
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Unit = THB
Year 2020
Internet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Billboard 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Souvenir 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Unit = THB
79
Cost of Material
2011
Raw Material - - 48,000 48,000 48,000 48,000 28,800 28,800 28,800 28,800 48,000 48,000
Real Rubber 30% - - 14,400 14,400 14,400 14,400 8,640 8,640 8,640 8,640 14,400 14,400
Price 130 130 130 130 130 130 130 130 130 130 130 130
Total cost - - 1,872,000 1,872,000 1,872,000 1,872,000 1,123,200 1,123,200 1,123,200 1,123,200 1,872,000 1,872,000
2012
Raw Material - - 240,000 240,000 240,000 240,000 144,000 144,000 144,000 144,000 240,000 240,000
Real Rubber 30% - - 72,000 72,000 72,000 72,000 43,200 43,200 43,200 43,200 72,000 72,000
Price 135 135 135 135 135 135 135 135 135 135 135 135
Total cost - - 9,720,000 9,720,000 9,720,000 9,720,000 5,832,000 5,832,000 5,832,000 5,832,000 9,720,000 9,720,000
2013
Raw Material - - 480,000 480,000 480,000 480,000 288,000 288,000 288,000 288,000 480,000 480,000
Real Rubber 30% - - 144,000 144,000 144,000 144,000 86,400 86,400 86,400 86,400 144,000 144,000
Price 140 140 140 140 140 140 140 140 140 140 140 140
Total cost - - 20,160,000 20,160,000 20,160,000 20,160,000 12,096,000 12,096,000 12,096,000 12,096,000 20,160,000 20,160,000
2014
Raw Material - - 1,680,000 1,680,000 1,680,000 1,680,000 1,008,000 1,008,000 1,008,000 1,008,000 1,680,000 1,680,000
Real Rubber 30% - - 504,000 504,000 504,000 504,000 302,400 302,400 302,400 302,400 504,000 504,000
Price 145 145 145 145 145 145 145 145 145 145 145 145
Total cost - - 73,080,000 73,080,000 73,080,000 73,080,000 43,848,000 43,848,000 43,848,000 43,848,000 73,080,000 73,080,000
2015
Raw Material - - 2,400,000 2,400,000 2,400,000 2,400,000 1,440,000 1,440,000 1,440,000 1,440,000 2,400,000 2,400,000
Real Rubber 30% - - 720,000 720,000 720,000 720,000 432,000 432,000 432,000 432,000 720,000 720,000
Price 150 150 150 150 150 150 150 150 150 150 150 150
Total cost - - 108,000,000 108,000,000 108,000,000 108,000,000 64,800,000 64,800,000 64,800,000 64,800,000 108,000,000 108,000,000
80
2016
Raw Material - - 2,880,000 2,880,000 2,880,000 2,880,000 1,728,000 1,728,000 1,728,000 1,728,000 2,880,000 2,880,000
Real Rubber 30% - - 864,000 864,000 864,000 864,000 518,400 518,400 518,400 518,400 864,000 864,000
Price 155 155 155 155 155 155 155 155 155 155 155 155
Total cost - - 133,920,000 133,920,000 133,920,000 133,920,000 80,352,000 80,352,000 80,352,000 80,352,000 133,920,000 133,920,000
2017
Raw Material - - 3,360,000 3,360,000 3,360,000 3,360,000 2,016,000 2,016,000 2,016,000 2,016,000 3,360,000 3,360,000
Real Rubber 30% - - 1,008,000 1,008,000 1,008,000 1,008,000 604,800 604,800 604,800 604,800 1,008,000 1,008,000
Price 160 160 160 160 160 160 160 160 160 160 160 160
Total cost - - 161,280,000 161,280,000 161,280,000 161,280,000 96,768,000 96,768,000 96,768,000 96,768,000 161,280,000 161,280,000
2018
Raw Material - - 3,840,000 3,840,000 3,840,000 3,840,000 2,304,000 2,304,000 2,304,000 2,304,000 3,840,000 3,840,000
Real Rubber 30% - - 1,152,000 1,152,000 1,152,000 1,152,000 691,200 691,200 691,200 691,200 1,152,000 1,152,000
Price 165 165 165 165 165 165 165 165 165 165 165 165
Total cost - - 190,080,000 190,080,000 190,080,000 190,080,000 114,048,000 114,048,000 114,048,000 114,048,000 190,080,000 190,080,000
2019
Raw Material - - 4,320,000 4,320,000 4,320,000 4,320,000 2,592,000 2,592,000 2,592,000 2,592,000 4,320,000 4,320,000
Real Rubber 30% - - 1,296,000 1,296,000 1,296,000 1,296,000 777,600 777,600 777,600 777,600 1,296,000 1,296,000
Price 170 170 170 170 170 170 170 170 170 170 170 170
Total cost - - 220,320,000 220,320,000 220,320,000 220,320,000 132,192,000 132,192,000 132,192,000 132,192,000 220,320,000 220,320,000
2020
Raw Material - - 7,200,000 7,200,000 7,200,000 7,200,000 4,320,000 4,320,000 4,320,000 4,320,000 7,200,000 7,200,000
Real Rubber 30% - - 2,160,000 2,160,000 2,160,000 2,160,000 1,296,000 1,296,000 1,296,000 1,296,000 2,160,000 2,160,000
Price 175 175 175 175 175 175 175 175 175 175 175 175
Total cost - - 378,000,000 378,000,000 378,000,000 378,000,000 226,800,000 226,800,000 226,800,000 226,800,000 378,000,000 378,000,000
81
Conclusion in Marketing Feasibility

In 2010, there are 350,000 rai where are the field of Para rubber, but also can be
harvest just more than 5,000 rai. Not only, there will be increasing of Para rubber in the north
of Thailand especially Chiangrai province, but also, the production which is an outcome of
our company can increase or decrease is depended on the quantities of concentrate latex
which the network of intermediary who sell to our company. They are the main key of our
company. We have to create the network of intermediary buy give them some promotion and
unwritten contact. Siam Rubber Co. Ltd. have possible to do the market because there will be
high production put into the market due to the high demand of Para rubber which produce in
the north of Thailand. Also, marketing expense of our company will be decrease for three
years and after that it would be stable because we have to spend more money to promote the
company in the first three years. The environment of marketing is also little effect to our
business because we have the plan to decrease some risk that can occur every time, but we
cannot control some environment of market such as the climate change as well. In addition
we use the new technology to increase the potential of business especially machine in
production. There are no competitors if compare within the area of north of Thailand, but
around Thailand we have to compete with high potential factory. To summary, Siam Rubber
have more potential in the Para rubber industry because the positioning itself of company that
start business in the north of Thailand. Also, we have the high demand of Para rubber both
domestic and international.
82
CHAPTER 4
83
Chapter 4
Technical Feasibility Study
4.1 Cost of register
- Memorandum fee
25,000.-
(Moreover 50,000,000 Baht)
- Cost of register the company limited
250,000.-
(Moreover 50,000,000 Baht)
- Request for Industrial License 100.-
- Cost of register Industrial License
15,000.-
(Capacity between 500 – 600 hp.)
- Factory fee per year
4,500.-
(Capacity between 500 – 600 hp.)
Total cost of register 294,600.-
* Fee rate refer from Department of Business Development & the Factory Act of 1992
84
4.1.1) Land
Siam Rubber company limited buy the land size 30 Rai at Moo 13, Baan Pha Tung, Mae
Jan district, Chiangrai province by the price 39,000 THB per Rai. So, the cost of land is
1,170,000 THB. And pay the land tax for 20,000 Baht
4.1.2) Building
Siam Rubber Company limited hire “Chanakarn Construction Company limited” to build
all of factory and office by this price.
Building Price
Received Concentrate Latex Station 200,000
Rubber Sheet Process Station 200,000
Air Dried Rubber Sheet Station 200,000
Ribbed Smoked Sheet Station 350,000
Screening Smoked Sheet and cutting Station 200,000
Packing and store Rubber Sheet Station 280,000
Dormitory 2,000,000
Food center 150,000
Office 1,000,000
Road 1,000,000
Waste water treatment 2,300,000
Total 7,880,000
85
4.1.3) Machine
The company purchase machines from Yong Fong machinery Co., Ltd
Rubber & Plastic Dispersion Open Kneader

1,000,000 THB
Roll Calendar Machine

1,500,000 THB x 2 Units
= 3,000,000 THB
86
Bom Ellipse Hang Type Conveyor

2,000,000 THB
Hydraulic Briquette Machine

1,500,000 THB
87
4.1.4) Vehicle
Toyota Hilux Vigo Smart cab 4x2 M/T

650,000 THB x 2
= 1,300,000
Mini Forklift
250,000 THB
88
4.1.5) Tools/Equipment
 Office Equipment
Equipment Detail Price Unit Total
Core i5 650 3.2GHz / 4MB

Intel Smart Cache/ LGA1156/
Dual Core/Hyper Threading)
Intel H55 Chipset
Computer PCWarrior RAM 2048 MB DDR3-

19000 20 380000
i5 32000 FSB1333
HDD 1000 GB,SATA II

rpm.DVD+RW Super Multi
CD VCD DVD
16 in 1 Card Reader
Print Speed 20 pages per

minute
Number of standard 150 sheet

paper tray.
Print paper size A4, A5, B5,

Epson Aculaser M1200 Letter, HLT, Legal, GLT,
3,510 5 17550
GLG, EXE, F4, MON, C10,
DL, C5, C6, envelope,
Transparecies, Label
accommodate the thickness 60-
163 gsm.
Connect the USB 2.0, Parallel

port.
Brightness 2,500 ANSI

Lumens.
15,900 2 31800
Contrast ratio 2000:1.
Lifetime 4000-5000 hours.
Epson EB-S9 Projector
89
Scan speed Black - White 40

ppm, color 80 ppm.
Scanning resolution 600x600 76400
dpi.Scan Resolution 75, 100, 38,200 2
150, 200, 240, 300, 400 and
600 dpi.75 sheet automatic
paper feed source.
Epson GT-S80 Scanner
Chuphotic Battery size 1050VA/630W. 4,200 20 84000

Mercury Smart MS 1050VA
ToTal 589,750
Laser Fax Machine 27,900 2 55854

Automatic Document Feeder:
50 pages
Out of paper reception: 510
pages
Canon L380S Fax
Up to 33.6 kbps (3 sec./page),
Machine+Handset
conforms to ITU
Compatible Supplies:
Cartridge W (3,500-sheet)
(812-2200)
90
770 20 15400
Redial at the Push of a Button

Flash button for receiving call
waiting or transferring
incoming call (In case of PBX)
Panasonic KX- 3-step ringer control (off-lo-hi)
TS500MXW Telephone Eletronic Handset Volume
Control
Tone/pulse switchable
Magnetic whiteboard, double- 6,900 2 13800

sided
Writing surface size: 90x150
Fuji OA Magnetic cm. Weight: 12.48 kg.
Trolley Whiteboard 2 P.
90x150 cm.
Dimensions: 120x60x75 cm.

Color: Beach+Dark Gray
Made from particle board, 25

6,420 30 192600
mm. thickness melamine top
coated
Furradec ST120DA 2 mm. thickness PVC edge
Desk RightDrawers Bottom drawer hanging file
Beach+DarkGray and able to assemble on both
sides
Knock down system easy to
assemble
91
Sponge upholstered, PVC and

cotton covered cushion seat
and backrest
Black plastic-forming armrest 1,300 30 39000
Armrest chair with 2 patterns
of cushion seat and backrest:
quality sponge and fabric
Furradec E-03A (Pilot upholstered and sponge
7506) Chair upholstered, PVC covered
Spray plastic-forming legs
Dimensions: 56x58x84 cm.
Total 316,654
 Office Tools
Tools Detail Price Unit Total
- Easy Cleaning system

- Silent Cooling
- Auto Cleaning 33,000 5 165,000
- Comfortable
Air- Conditioner LG
- Powerful
I13-SBA6M Inverter
- Skew Fan
- Resolution 1,366 x 768

- Picture Engine DNIe+
- Wide Color Enhancer Plus 19,990 4 79,860
Yes
Samsung LCD - Clear Motion Rate 100
TV UA32C4000
92
Size 24 inches
1,950 4 7800
Industrial Fan
Size 315*210*145 cm
22,900 2 45800
Sofa BOLONA
Size 3 m
309 30 3,090
Plug
Size table 90*150*75 cm 9,900 9,900

1
Table set
800 2 1600
Fire extinguisher
DVR 16 ch MDR688 (USB /

Remote /
VGA/Mouse/2SATA HDD 65,500 1 65,500
1 machine with remote
control.
Set AVTECH CCTV
Total 378,490
93
 Toilet Equipment
3 / 6 l ACTIVE white 7350 28 205800
water closet
Brand NAHM.
6600 3 19800
Category hung basin, white.
wash basin
Brand RASSLAND.
Category hose set pay 250 28 7000
Color chrome.
Hose pay
Brand COTTO.
Category Urinal. 6150 2 12300
White.
Urinal
Brand PANASONIC.
690 2 1380
Category glaze
Ventilators
94
High-quality absorbent and

wiping
Strong, soft,
Economical and cpnvenient
610 2 1220
use with continuous
Scott Interfold Hand dispensing
Towels Box
Total 247,500
Hand soap with gentle lotion

formula
Pure natural formula helps
heal and protect skin from
dryness 1260
Concentrated liquid soap 630 2
without tallow
Kimberly-Clark AQUA Dispenser dimension:
Soap Windows 14.5x24x10 cm.
Dispenser Net Wt. 1000 ml./bottle
Philips wp3892 water - Pure water or no water

purifier with Power UV+ 5,900 24 141,600
- remove's bacteria, virus,
cysts
- Pure Protect Lock locks
dispensing of water when
filter reaches lifetime
Total 142,860
95
 Kitchen Equipment
24,000 2 48000
Furradec Pantry120
Kitchen Furniture
Beach
Brand BLANCO.
Category 2 sink holes, half
7500 1 7500
buried.
Zinc 2-hole plate left Color stainless steel
half of the
accommodation.
Stove Brand SHARP.

Category microwave
7450 1 7450
28 desktop.
liters microwave oven White.
model R-7G89 white
304 stainless steel cooler

The cold rage colds up to 4-
10 deg
Auto-temperature control
Built-in stands
Lead free
Dimensions: 30.5x38x106.6
4,790 2 9580
cm.
Singer SW- 1-year warranty
01 Water Cooler
96
Unicap, one-layer cover for

easy operation ( pressing and
opening)
Stainless steel, rust resistant
interior
990 1 990
360º swivel base
Sharp I-Pot KP-36S
Magnet plug
Hotta Electric Jar Pot
Pattern is changed up to
3.6Lit.
production line
Total 73,520
 Dormitory tools
o Facility Management
Unit Price per
Equipment Application Total Price
piece
24 4,300 103200
Trendy bed 5 feet, size 160 x 200 x

92 cm.
97
Trendy dressing table Size 60x40x160 cm.
24 1,900 45600
Trendy wardrobe Size 120x52x190 cm.

24 4,500 10800
Total 256,800
 Factory Equipment
4,590 10 45900
Sumo
SRH26S+26G Trolley and Bucket
98
1,700 20 34000
Panasonic F-BQ16A Wall Fan
3,700 20 74000
Furradec FLASH 150 All Purpose

Tables
Durable and easy transportation

Each shelving level is adjustable
Accommodate 10 mm. of plywood sheet
panel
Connecting rivet between bays of pallet 8,290 10 82900
racking.
80kg. each shelf loading capacity
Giant
RS2006 StorageRack
4Shelves172.7x81.3x205cm
Lamp light emitted is resemble to

natural sunlight
10 % Energy Saving 54 100 5400
The brightness increases 25% (Pa-Lock)
Panasonic FL20SSEX-D/18
Fluorescent Lamp 18W
99
• Removable head out to the

separate readings in the
vicinity. (cable length ~ 2 m).
• Power supply:
Rechargeable battery 6V DC.
• can be connected to
external devices with the Port 25,000 3 75000
RS-232 (Option).
• The TARE function less
tare
For before the weight of the

rubber layer will be selected
rubber
Place rubber smoked rubber

950 10 9500
floor waiting to be selected.
Total 326,700
100
4.2 Location
Siam Rubber Company limited has the area around 30 rai where located at Moo 13, Baan
Pha Tung, Mae Jan district, Chiangrai province with three main states including office zone,
factory zone and residential zone.
101
4.2.1 Layout
Plant Layout
A: Ribbed Smoked Sheet Station G: Food center

C: Waste water treatment R: Road
X: Screening Smoked Sheet Station H: Office
Y: Briquette rubber station
J: Air Dried Rubber Sheet Station
E: Rubber Sheet Process Station
F: Received Concentrate Latex Station
T1: Store Concentrate Latex Station
T2: Store Concentrate Latex Station
D1: Dormitory 1
D2: Dormitory 2
D3: Dormitory 3
102
4.2.2 Office Layout
4.2.3 Dormitory Layout

103
4.2.4 Food center Layout
F1: Food shop No.1

F2: Food shop No.2
W: Drinking water point
104
4.2.5 Receive concentrate latex station Layout
P : Parking spot for farmers to sell their latex factory

W : The weight checking point of Rubber Engineering
C : Counter for take the bill to get money.
105
4.2.6 Rubber Sheet Process Layout
T: Rubber Blocking
W: Water for washing the chemicals put in the latex.
M1: Roll Calendar Machine
M2: Calendar Machine
106
4.2.7 Air Dried Rubber Sheet Process Layout
M: Batch-Off Machine
G: Area dries out rubber sheets.
107
4.2.8 Smoked Rubber Sheet Layout
W: Storage firewood for smoked rubber sheets.

S: Kiln for smoking rubber to smoked rubber sheets.
108
4.2.9 Cutting Rubber Layout
T: Table using selected grade of rubber smoked sheets

W: Drinking water point
109
4.2.10 Packing RSS Layout
W: Weight machine technician before lead to Press molding Machine

M: Press molding Machine can briquetting 2 packs/time
S: Storage for keep rubber Briquetting
110
4.2.11 Wastewater Treatment Layout

111
4.3 Operating analysis
4.3.1 Product
Ribbed Smoked Sheet No.3
This is the grade of Ribbed Smoked Sheet rubber where rust and dry mould on
wrappers, bale surfaces and interior sheets, found at the time of delivery, will not be objected
to, provided these conditions either singly or in combination do not exist to an objectionable
extent on or in more than 10% of the number of bales included in the delivery, lot or tender as
determined by the number of bales inspected. Slight blemishes in color, small bubbles and
small specks of bark are permissible. The other parameters are the same as for RSS 2
112
Ribbed Smoked Sheet No.3 Packed
This product is ready to export and this way is the way to adding value of Ribbed
Smoked Sheet No.3.
113
The cut Ribbed Smoked Sheet No.3
In the each smoke process some rubber are not ripe because the rubber are thick, the
rubber are shorten after we crush the smoke sheet or fold between crush the rubber. If the
rubber have a thick, it’s not easy to dry. Therefore the producer must be cutting and make it
to low grade. It’s called cutting rubber and selling in lower price. But the rubber sheets are
not ripe, we smoking room again. If the rubber sheets are smoking in the high temperature, it
makes bubble. But the fresh rubber mix with the rain. It makes the little bubble all of sheet.
So the quality is low and low price too.
114
4.4 Production Process
Almost the owns rubber filed in Thailand, they use the simple to manufacture that is
the rubber smoke sheet. The important of the rubber is cleaning. If the rubber make cleaning
is means the good grade of rubber and make more profit. Therefore in the process to produce
the rubber in each method must carefully about the cleaning. We beginning from buy the
rubber from farmer.
 Purchased the rubber from intermediary
Select the rubber from intermediary and cleaning the rubber by grating for out lumber
from rubber. Measure the quality of rubber by metro lad for calculates the money to them.
Pump the rubber through the grating size 40-60 (mesh) to remove and filtration the dirt from
rubber.
Metrolad
115
 Cleaning equipment
The equipment of process must be cleaning such as grating, machine roll the rubber
sheet and so on. Because it make the product’s cleaning and quality.
 Making Rubber sheets
In the produce the rubber smoke sheet must be attenuate the fresh rubber. For the dry
rubber about 15-18% attenuates the fresh rubber by the water. The water must calculated to
attenuate in rate about 3:2 but the rate depend on amount dry rubber. Then add the formic
acid is intensive 2% in the rate of 0.4-0.6 of dry rubber. When we add the formic has
conglomerate of rubber and mix it together. If the process has air bubble, you must keep out
the air bubble of rubber because it makes the low quality of the rubber. Then leave the rubber
about 2-3 hour for harden of rubber and take rubber to cleaning.
Formic acid
Putting the rubber

116
 Crush the rubber

After cleaning the rubber we lead the rubber to crush machine. In this process has
spray water between crush the rubber for lubricate of machine. Then cleaning the rubber
again and airing.
Crush the rubber

 Airing rubber
After crush the rubber we want to have a dry rubber. So, we want to airing the rubber
in the place that have less light and more air.
 Smoke rubber
After airing, lead the rubber to smoke room in the temperature about 50-60 ˚c by the
hot and smoke from the kiln. We can control the kiln for the hot whatever you want. The
times of smoke are about 4-12 day. It’s depending on quality and moisture of rubber. The
rubbers are ripe called smoke rubber sheet.
117
 Select the grade of smoke rubber sheet

In the divide the qualities of rubber use the experience and expertise. The quality is
separate into 6 types.
- RSS1X: This is special smoke rubber sheet because rubber must have
hyaline, good quality and regularly all of sheet. The rubbers don’t have stain,
dirty, fungi and so on.
- RSS1: The smoke rubber sheet should be dry and clean. Don’t have sand,
adulterant, fungi and so on. Allow the sheet have air bubble little in the smoke
rubber sheet.
- RSS2: The smoke rubber sheet should be dry and clean. Don’t have mark,
sand, adulterant, fungi and so on. There may be air bubbles and the color of
smoke rubber sheet may not be consistent.
- RSS3: The rubber sheet must be dry. Sometime the colors of sheets aren’t
clear and have the small air bubbles, debris, scrap, and bark in the sheet. The
rubber sheet may be fungi.
- RSS4: The rubber sheet must be dry and sometimes have dirty or skin of
rubber tree and fungi mix into the rubber sheet.
- RSS5: The rubber sheet must be dry. The rubber sheets have dirty, skin of
rubber tree, fungi and so on. Because the RSS5 is the lower quality than other.
118
 Processing of Briquetted rubber
Select the rubber smoke sheet.
Separate the rubber smoke sheet follow quality of product.

119
Cutting some lower qualities of rubber.
Measure the weight of smoke rubber sheet about 110.6 kilogram (±0.1 kilogram)
120
Separate the rubbers about 8-12 sheets to wrap.
Machine makes the lump.

121
Putting the rubber gum all of the wrap.
Put the grade or quality of rubber smoke sheet and finished.

122
4.5 Wastewater treatment process

 Raw Influent
Raw wastewater is collected throughout the City through a complex system of sewers
and pump stations and conveyed to the plant. A total of 6 sources discharge into the influent
structures at the plant: General Motors, Kingsbury, Maumee, Kettenring, Ayersville, and
Defiance County’s Christy Meadows Pump Stations. The combined sewage then flows by
gravity to the Grit and Screening Building.
 Preliminary Treatment
A bar screen and grit tank removes large debris and heavy grit in the raw influent
before preliminary treatment. Material removed in this process is disposed of in a sanitary
landfill.
 Primary Treatment
Additional settle able solids are removed in the four rectangular and one circular
primary settling tank. Settled solids are recycled in the plant or wasted to the digesters. The
primary settling tank effluent flows to the settled flow diversion chamber where it can be
directed to the roughing towers or the aeration tanks.
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 Secondary Treatment
Flow from the primary treatment process is pumped to the two roughing towers for
the removal of organics. Roughing tower effluent flows by gravity to the aeration tanks for
further biological treatment.
 Advanced Secondary Treatment and Final Settling
Ammonia nitrogen is biologically removed in the three aeration basins. Phosphorus is

removed by chemical precipitation in the final clarifiers. Activated sludge is returned to the
plant or wasted to the digesters.
 Disinfection
Final effluent is chemically monitored and disinfected to ensure compliance with the City
of Defiance NPDES permit.
124
 Final Effluent
After the effluent is chemically monitored and disinfected to ensure compliance with
the City of Defiance NPDES permit. The final effluent is then discharged to the natural
Creek.
 Solids Stabilization and Storage
Raw sludge or biosolids are removed from the primary clarifiers. It is then pumped to
the two anaerobic digesters for volatile solids reduction and stabilization. Digested biosolids
are then moved from the digesters to the plants four biosolids storage lagoons where it is
dewatered and thickened. On a seasonal basis, the thickened biosolids are then transported to
area farmland. These biosolids are then injected into the soil to act as a conditioner and
fertilizer. biosolids management, including biosolids storage and handling, is conducted in
accordance with both federal and state environmental regulations.
125
4.6 Logistic
We have contacted for transport with Pa Yak Transport Company Limited where
located at 93/1 Moo 9, Super Highway Road, San Sai, Mueng District, Chiangrai, Tel. 053-
701434-5 because this company can be trust and also transport our product in high volume
every day. The cost that we use in transportation is around 11,000 baht per times per truck
that can increase or decrease depending on the price of fuel, but we will record the cost of
transportation at 11,000 baht per time in transaction because it is the basic price.
126
4.7 Management Analysis
 Organization Management
Siam Rubber Company limited has the area around 30 rai where located at Moo 13,
Baan Pha Tung, Mae Jan district, Chiangrai province with three main states including office
zone, factory zone and residential zone. Also, we have the organization in the middle level
according to the size of area and capacities in the production per one day.
At the beginning, we have responded for registration with the Ministry of Commerce
(MOC) that has 7 partners signing the Memorandum together before establish the company
including with:
1. Mr.Apichit Miengmern
2. Mr.Chainarong Umalee
3. Mr. Nuphong Phongsak
4. Miss Duangkamol Saktonthai
5. Miss Surasawadee Trakulou
6. Miss Sukanya Watcharasavee
7. Miss Arpawadee Deeprom
All of partners have voted Mr.Chainarong Umalee to be a president for managing

partners and the organization. He has the duty to register the company with the office of
commercial affair in Chiangrai, manage and decision the whole activities in Siam Rubber
Company, and also have the highest authority. In addition, Siam Rubber Company limited
have followed the legal to locate the factory where use to process the Para Rubber by register
the Industrial Licensing following The Factory Act of 1992.
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Organization Chart
President (1)
Vice-President (1)
Human Resource Customer Relation Product and Operation Financial Outsourcing/Others

Department Department Department Department
Transporters
Human Resource Customer Relation Supervisor (1)
Financial Manager (1)
Manager (1) Manager (1) Receive Latex (4) Security Guard (5)
Human Resource Customer Relation Store Latex (2) Accountants (4)

Assistant (1) Assistants (1)
Sheet Process (20)
Air Dried Sheet (2)
Smoked Sheet (8)
Screening Sheet (5)
Cutting Sheet (5)
Packing Sheet (5)
Checked Weight (1)
Store Sheet (2)
Housekeeping (1)
Janitors (2)
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Siam Rubber Company limited has the organization structure which separate into 4
departments comprises with human resource, customer relation, production and operation,
and financial department. Also, we outsource some employees from other company to reduce
the cost including with transportation, security guard, and the technician for maintain the
equipment. We emphasize in the production and operation department because most of the
employees work in this department. Our company has the employees around 74 people
included outsourcing. In addition, each department has to collaborate together and have the
authority follow the hierarchy step that the highest authority is the president and the manager
of each department as following. Moreover, Siam Rubber Company will recruit the
employees by based on their skill because some process of production required the expert
person such a smoked sheet station for example. We have training and orientation the
employees before work and also pay the salary and other compensation to them by based on
the minimum wage paid of Chiangrai province. Also, the working time of Siam Rubber
Company will begin at 8.00 A.M. - 16.00 P.M. and all of employees except outsourcing have
to dress the same uniform.
4.7.1 Team Management

 President (1 position)
Job Description
 Planning and developing the structure of organization.
 Highest authority to staff the employee.
 Find and solve the problem which occurs in the organization.
 Decision Making.
Qualifications
 Male/female, age over 35 years old.
 Thai nationality.
 Have high responsibility and leadership skills.
 Good management skills.
 Can handle with the problem.
** Mr.Chainarong Umalee is the president of Siam Rubber Company because he is the

founder and have the highest voted from other shareholders. **
129
 Vice-President (1 position)
Job Description
 Collaborate with the president and also each department.
 Act for the president in some task.
 Find and solve the problem which occurs in the organization.
 Decision Making.
Qualifications
 Bachelor degree or higher in the field of Business Administration or other
related.
 Human Resource Manager (1 position)

Job Description
 Conducting people in the organization.
 Developing the employees in the organization.
 Collaborate with other department to recruiting the employees.
Qualifications
 Bachelor degree or higher in the field of Business Administration major
Human Resource Management.
 Good relationships and understand task in the organization.
 Good Computer skill such as Microsoft Office
 The experience work is considered.
130
 Human Resource Assistant (1 position)

Job Description
 Helping human resource manager to conduct the task.
Qualifications
 Bachelor degree or higher in the field of Business Administration major
Human Resource Management.
 Good relationships and understand task in the organization.
 Good Computer skill such as Microsoft Office
 Customer Relation Manager (1 position)

Job Description
 Contact with the supplier and customers.
 Promote the organization such as public relation and communication.
 Collaborate with other department in term of information.
 Willing to build a long term relationship with both supplier and customers.
Qualifications
 Bachelor degree or higher in the field of Business Administration.
 Good personality and relationship.
 Good Computer skill such as Microsoft Office.
 Good command in English is considered.
131
 Customer Relation Assistant (1 position)

Job Description
 Helping customer relation manager to contact the task.
Qualifications
 Bachelor degree or higher in the field of Business Administration.
 Good personality and relationship.
 Good command in English is considered.
 Financial Manager (1 position)

Job Description
 Control the Financial statement of the company.
 Managing risks which occur in the organization.
 Review all of financial.
 Plan the financial statement.
Qualifications
 Bachelor degree or higher in the field of Financial Management.
 Accountable person.
 Accountant (4 position)
Job Description
 Related with the field of accounting.
 Analyzing and planning the money that used in the organization.
 Manage and control budget of the firm.
 Prepared the accounting statement.
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Qualifications
 Bachelor degree or higher in the field of Financial Management.
 Accountable person and cautiousness.
 Product and Operation manager or Supervisor (1 position)

Job Description
 Concerned with all of production and operation process.
 Control the employees in each station.
 Collaborate with each department in term of production and operation.
 Understand all tasks in the production process.
Qualifications
 Male, age over 30 years old.
 Bachelor degree or higher in the field of Operation Management or other
related.
 Received Concentrate Latex Station (4 position)

Job Description
 Received the concentrate latex from the supplier.
 Check the percentage of the real rubber that we can get after processing.
 Appraisal the price of the concentrate latex.
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Qualifications
 Have high responsibility and cautiousness.
 Any field of education.
 Good communication with other person.
 Full time work.
 Store Concentrate Latex Station (2 position)

Job Description
 Carrying the concentrate latex that received from the supplier to store in the
tank.
 Keep the qualities of the concentrate latex.
Qualifications
 Male, age over 20 years old
 Graduated in any field of study.
 Accountable person and can adaptable with changing environment.
 Full time work.
 Easy to learn or understand new things and also good relationship with others.
 Work experience is considered.
 Rubber Sheet Process Station (20 position)

Job Description
 Control the qualities of rubber sheet process.
 Producing the rubber sheet before smoked.
Qualifications
 Full time work.
134
 Air Dried Rubber Sheet Station (2 position)

Job Description
 Control the process of air dried rubber sheet.
Qualifications
 Ribbed Smoked Sheet Station (8 position)

Job Description
 Having the task for smoked the rubber sheet.
 Control the qualities of rubber sheet during the process.
 Control the temperature that used to smoked rubber sheet.
Qualifications
 Flexible time work.
 Work experience and technical skills are considered.
 Screening Smoked Sheet Station (5 position)

Job Description
 Checking the qualities of ribbed smoked sheet.
 Categorized the type of ribbed smoked sheet.
Qualifications
 Full time work.
135
 Work experience and technical skills are considered.

 Cutting Rubber Sheet Station (5 position)
Job Description
 Trimming the low qualities of ribbed smoked sheet out.
Qualifications
 Full time work.
 Good relationship with others.
 Packing Rubber Sheet Station (5 position)

Job Description
 Having the duty to packing the sheet rubber after smoked.
Qualifications
 Full time work.
 Checked Weight Station (1 position)

Job Description
 Checking the weight of packing sheet rubber.
Qualifications
 Full time work.
136
 Store Packing Sheet Station (2 position)

Job Description
 Carrying the packing rubber sheet to store in warehouse.
 Checking the unit of packing rubber that come in-out the store.
Qualifications
 Full time work.
 Housekeeping (1 position)
Job Description
 Maintain cleaning in the office.
 Prepare room for meeting and arrange decoration.
Qualifications
 Female, age over 20 years old
 Accountable person and good relationship with others.
 Easy to learn or understand new things.
 Be honest on work.
 Janitors (2 position)
Job Description
 Taking care in the area of factory and garden.
 Keep cleaning in factory.
Qualifications
 Accountable person and good relationship with others.
 Easy to learn or understand new things.
137
 Security Guard (5 positions)

Job Description
 Monitor and authorize entrance and departure of employees, visitors, and other
persons.
 To guard against theft and maintain security of factory and office.
Qualifications
 Accountable person.
 Flexible time work.
138
4.8 Employee Salary

Position Unit Salary (THB) Total (THB)
President 1 30,000.00 30,000.00
Vice-President 1 25,000.00 25,000.00
Human Resource Manager 1 15,000.00 15,000.00
Human Resource Assistant 1 10,000.00 10,000.00
Customer Relation Manager 1 15,000.00 15,000.00
Customer Relation Assistant 1 10,000.00 10,000.00
Financial Manager 1 15,000.00 15,000.00
Accountant 4 12,000.00 48,000.00
Product and Operation manager or Supervisor 1 15,000.00 15,000.00
Housekeeping 1 6,900.00 6,900.00
Janitors 2 6,900.00 13,800.00
Security Guard 5 7,200.00 36,000.00
Total Salary Expense Per Month 20 168,000.00 239,700.00
4.9 Stationary Expense

In the first quarter every year, Siam rubber Company has to spend the stationary
expense for 21,957.50 Baht. Following the table below:
No. Product Description Unit Price Total
1 Paper A4 (Ream) 30 90.00 2,700.00
2 Calculator 10 530.00 5,300.00
3 Staple Max 15 78.00 1,170.00
4 Staple 12 65.00 780.00
5 Scissors 10 58.00 580.00
6 Punch machines 10 298.00 2,980.00
7 Bill spit 10 47.00 470.00
8 Stamp Pad 10 25.00 250.00
9 Stamp Pad Ink 10 9.50 95.00
10 Pen (Box) 5 120.00 600.00
11 Pencil (Box) 5 30.00 150.00
12 Eraser (Box) 5 73.00 365.00
13 Liquid paper (Box) 5 270.00 1,350.00
14 Scotch tape 10 30.00 300.00
15 Glue stick 10 46.00 460.00
16 Knife(Cutter) 10 34.00 340.00
17 Fold black clip (Box) 10 54.00 540.00
18 Document file 50 51.00 2,550.00
19 Highlighter (Box) 5 204.00 1,020.00
20 Ruler 10 70.00 700.00
139
Total Stationary Expense For 1st quarter 2,182.50 22,700.00
For 2nd, 3rd, and 4th quarter of every year, the office has to spend for some stationary
for 5,864.50 Baht. Thus, Siam rubber Company has to spend the total office supplies cost for
40,293.50 Baht in each year as the table below:
No. Product Description Unit Price Total

1 Paper A4 (Ream) 15 90.00 1,350.00
2 Staple 10 65.00 650.00
3 Stamp Pad Ink 5 9.50 47.50
4 Pen (Box) 5 120.00 600.00
5 Pencil (Box) 5 30.00 150.00
6 Eraser (Box) 5 73.00 365.00
7 Liquid paper (Box) 5 270.00 1,350.00
8 Scotch tape 8 30.00 240.00
9 Glue stick 8 46.00 368.00
10 Fold black clip (Box) 10 54.00 540.00
11 Highlighter (Box) 1 204.00 204.00
Total stationary expense for each 2nd, 3rd, 4th quarter 991.50 5,864.50
Total stationary expense for 3 quarter 2,974.50 17,593.50

Total office supplies cost in each year 5,157.00 40,293.50
4.10 Electricity Expense/month
Siam Rubber Company has separated the electricity expense into 2 sections including
with office and factory. Also, rate of electricity in each month is not equally because the
seasonal of Para rubber. We have to spend more electricity in March-June and November-
December because those months are the producing month of agriculturist in the north of
Thailand.
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- Office
22 meter pressure in the normal rate 2.4649 Baht
Estimate use of electricity 500 Units/month
Add (+) Service expense 228.17 Baht
Total electricity expense for office/month 1460.62 Baht
Source: http://www.pea.co.th/rates/Rate2006.pdf
- Factory
Estimate units in peak TOU (2.695 x 10,000) 26,950.00 Baht

Estimate units in off peak TOU (1.1914 x 1,500) 1,787.10 Baht
Estimate highest demand of use (132.93 x 600) 79,758.00 Baht
Add (+) Service expense 228.17 Baht
Total electricity expense for factory/month 108,723.27 Baht
Source: http://www.pea.co.th/rates/Rate2006.pdf
Thus, total estimate electricity expense of Siam Rubber Company per month is
110,183.89 Baht, but we will record the transaction at 111,000 Baht that increase or decrease
depending on seasonal of suppliers.
141
4.11 TOT Internet and Telephone expense/Month
Siam Rubber Company use the ADSL internet of TOT in the organization by choose
package download speed up to 12 Mbps & upload speed up to 1 Mbps. Also, we install the
telephone in office for use to contact with both suppliers and customers.
Internet Expense 1,594.30 Baht
Estimate Telephone Expense/month 1,500.00 Baht
(2 Baht/Minute)
Maintain Cost (2 Numbers) 600.00 Baht
Fax (2 Baht/time) 300.00 Baht
Total 3,994.30 Baht
4.12 Car Insurance
Siam Rubber Company purchased the car insurance with Asia Insurance 1950
company limited for 10 years. We have to pay 6,800 baht included taxes for Asia 3 Plus
package at the beginning of each year. The profits that we can get are following the table
below.
Indemnify against from accident 500,000 Baht/person
10,000,000 Baht/time
Protecting Assets 1,000,000 Baht/time
Guarantee Health Care 100,000 Baht/person
Bail Out the Driver 300,000 Baht
Fixed the Accident Car 100,000 Baht/time
142
4.13 Fire Insurance
Our company purchased the fire insurance from Muang Thai Insurance Company.
Also, we have to pay 12,891.36 baht included tax for the fire insurance class one at the
beginning of each year.
4.14 Employee Motivation

Siam Rubber Company has emphasized about the willingness and welfare of the
employees by give some special reward for make the employees’ satisfaction and have the
motivation to work. We have provided 2 motivations to the employees for create win-win
situation that employee have willingness to work and also the company can be run the
production and operation including with tangible reward and in tangible reward.
We provide tangible reward for the employee by special money such as social
security insurance because we want the employees’ satisfaction in their work during the year.
We have contact with social security insurance office in Chiangrai for register the employees’
social security insurance with calculate from 5% of the employee salary and also we have to
pay it in the beginning of each year. Moreover, we pay the intangible rewards which are the
motivation expenses to the employee such as the employee can take leave from work and
have the celebration in special event like New Year party for make the employees happy and
also have the motivation in their work. We set the motivation expense at 50,000 baht which
base in each year.
143
4.15 Employee Training

Siam Rubber Company has realized in abilities and skills of all employees in the
organization and farseeing the training and development of employees as an important thing.
At first, we have to training the employees in the office just a few skills because most of them
graduated from the specific education degree. We just assign the task to them and also
controlling their work.
On the other hand, we emphasize the training and development of the employee in
department of production and operation because most of employees in this department have
no skills to work. We have to beginning the skills of employee by training program before
work. Also, our company has employed the expert from the Thai rubber industrial who is
Mr.Winthaya Chumwanit (President of Chiangrai Office of the Rubber Replanting Aid Fund)
to training our employees in the department of production and operation because he is the one
who expert in Para rubber and Smoked Rubber Industry. In addition, Siam Rubber Company
has to retraining the employees 1 time every year for increasing their potential.
For the training expense, we have to spend 50,000 baht at the 1 st year including with
the expert expense 20,000 baht and 30,000 baht for the utilities which use in the training and
development program, but after 1st year the training expense of our company will decrease as
30,000 baht because our employees have only retraining their skill and have not much to
spend times for training and development.
Instructor (Expert)
Mr.Winthaya Chumwanit
President of Chiangrai Office of the Rubber Replanting Aid Fund
144
4.16 Staff Shirt
Siam Rubber Company makes the same the Polo staff shirt for the employee by order
the Polo staff shirt with Jipata shop where located at 727/7-8 Autarakit Rd. Muang, Chiangrai
province Tel 053-716796. The cost of Polo shirt per one is 250 bath and we have to spend
18,750 baht for the 75 Polo shirts at the first year.
Jipata Shop
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Administrative Expense
Administrative Expense Year 1, 2011
Year 2011
No. Description Base Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
1 Employee Salary 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 2,876,400
2 Rental Fee - - - - - - - - - - - - -
3 Stationary Expense 40,294 22,700 - - 5,865 - - 5,865 - - 5,865 - - 40,294
4 Electricity Expense 31,000 30,000 50,000 55,000 55,000 50,000 49,000 30,000 30,000 30,000 50,000 50,000 510,000
5 Water Expense - - - - - - - - - - - - -
6 Internet and Telephone Expense 2,800 2,800 3,200 3,300 3,300 3,200 3,200 2,900 2,800 2,800 3,200 3,200 36,700
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
9 Social Security Insurance Expense 251,685 251,685 - - - - - - - - - - - 251,685
10 Motivation Expense 50,000 - - - - - - - - - - - 50,000 50,000
11 Training Expense 50,000 - - - - - - - 50,000 - - - - 50,000
12 Staff Shirt Expense 18,750 18,750 - - - - - - - - - - - 18,750
Total 586,326 272,500 292,900 303,865 298,000 292,900 297,765 322,600 272,500 278,365 292,900 342,900 3,853,520

Year 2012
1 Employee Salary 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 2,876,400
2 Rental Fee - - - - - - - - - - - - -
4 Electricity Expense 41,000 40,000 90,000 99,000 99,000 90,000 87,000 40,000 40,000 40,000 90,000 90,000 846,000
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 577,476 282,400 332,800 347,865 342,000 332,900 335,565 312,600 282,400 288,265 332,900 382,900 4,150,070
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Year 2013
1 Employee Salary 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 2,876,400
2 Rental Fee - - - - - - - - - - - - -
4 Electricity Expense 51,000 50,000 111,000 122,100 122,100 111,000 90,000 50,000 50,000 50,000 111,000 111,000 1,029,200
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 588,776 293,700 354,700 371,765 365,900 354,700 339,565 323,700 293,700 299,565 354,800 404,800 4,345,670

Year 2014
1 Employee Salary 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 2,876,400
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 598,776 293,700 358,800 376,265 370,400 358,800 344,565 323,700 293,700 299,565 358,900 408,900 4,386,070
147

Year 2015
1 Employee Salary (Increase 3%) 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 2,962,692
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
12 Staff Shirt Expense 18,750 18,750 - - - - - - - - - - - 18,750
Total 632,268 310,891 371,191 389,156 383,291 371,191 356,756 340,891 310,891 316,756 371,191 421,191 4,575,662

Year 2016
1 Employee Salary 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 2,962,692
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 613,518 310,891 371,191 393,156 387,291 376,191 356,756 340,891 310,891 316,756 376,191 426,191 4,579,912
148

Year 2017
1 Employee Salary 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 2,962,692
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 613,618 310,991 371,191 394,656 388,791 376,191 366,856 340,991 310,991 316,856 376,191 426,191 4,593,512

Year 2018
1 Employee Salary 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 2,962,692
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 618,768 316,141 376,391 394,856 388,991 376,391 372,006 346,141 316,141 322,006 376,391 426,391 4,630,612
149

Year 2019
1 Employee Salary (Increase 3%) 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 3,051,573
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 633,952 323,548 383,798 402,262 396,398 383,798 379,412 353,548 323,548 329,412 383,798 433,798 4,727,270

Year 2020
1 Employee Salary 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 254,298 3,051,573
2 Rental Fee - - - - - - - - - - - - -
5 Water Expense - - - - - - - - - - - - -
7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800
8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891
Total 634,102 323,698 383,898 402,362 396,498 383,898 384,562 353,698 323,698 329,562 383,898 433,898 4,733,770
150
Production and operation Expense

Product and Operation Cost
Year 2011
Direct Material - - 7,800,000 7,800,000 7,800,000 7,800,000 4,680,000 4,680,000 4,680,000 4,680,000 7,800,000 7,800,000
Direct Labor 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Manufacturing Overhead 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000
Total 500,000 500,000 8,300,000 8,300,000 8,300,000 8,300,000 5,180,000 5,180,000 5,180,000 5,180,000 8,300,000 8,300,000
Year 2012
Direct Material - - 40,500,000 40,500,000 40,500,000 40,500,000 24,300,000 24,300,000 24,300,000 24,300,000 40,500,000 40,500,000
Direct Labor 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000
Total 700,000 700,000 41,200,000 41,200,000 41,200,000 41,200,000 25,000,000 25,000,000 25,000,000 25,000,000 41,200,000 41,200,000
Year 2013
Direct Material - - 84,000,000 84,000,000 84,000,000 84,000,000 50,400,000 50,400,000 50,400,000 50,400,000 84,000,000 84,000,000
Direct Labor 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
Total 900,000 900,000 84,900,000 84,900,000 84,900,000 84,900,000 51,300,000 51,300,000 51,300,000 51,300,000 84,900,000 84,900,000
Year 2014
Direct Material - - 304,500,000 304,500,000 304,500,000 304,500,000 182,700,000 182,700,000 182,700,000 182,700,000 304,500,000 304,500,000
Direct Labor 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000
Total 1,100,000 1,100,000 305,600,000 305,600,000 305,600,000 305,600,000 183,800,000 183,800,000 183,800,000 183,800,000 305,600,000 305,600,000
Year 2015
Direct Material - - 7,500,000 7,500,000 7,500,000 7,500,000 4,500,000 4,500,000 4,500,000 4,500,000 7,500,000 7,500,000
Direct Labor 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000
Total 1,300,000 1,300,000 8,800,000 8,800,000 8,800,000 8,800,000 5,800,000 5,800,000 5,800,000 5,800,000 8,800,000 8,800,000
151
Year 2016
Direct Material - - 9,000,000 9,000,000 9,000,000 9,000,000 5,400,000 5,400,000 5,400,000 5,400,000 9,000,000 9,000,000
Direct Labor 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000
Total 1,500,000 1,500,000 10,500,000 10,500,000 10,500,000 10,500,000 6,900,000 6,900,000 6,900,000 6,900,000 10,500,000 10,500,000
Year 2017
Direct Material - - 10,500,000 10,500,000 10,500,000 10,500,000 6,300,000 6,300,000 6,300,000 6,300,000 10,500,000 10,500,000
Direct Labor 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
Total 1,700,000 1,700,000 12,200,000 12,200,000 12,200,000 12,200,000 8,000,000 8,000,000 8,000,000 8,000,000 12,200,000 12,200,000
Year 2018
Direct Material - - 792,000,000 792,000,000 792,000,000 792,000,000 475,200,000 475,200,000 475,200,000 475,200,000 792,000,000 792,000,000
Direct Labor 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000
Manufacturing Overhead 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Total 1,900,000 1,900,000 793,900,000 793,900,000 793,900,000 793,900,000 477,100,000 477,100,000 477,100,000 477,100,000 793,900,000 793,900,000
Year 2019
Direct Material - - 918,000,000 918,000,000 918,000,000 918,000,000 550,800,000 550,800,000 550,800,000 550,800,000 918,000,000 918,000,000
Direct Labor 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Total 2,100,000 2,100,000 920,100,000 920,100,000 920,100,000 920,100,000 552,900,000 552,900,000 552,900,000 552,900,000 920,100,000 920,100,000
Year 2020
Direct Material - - 1,575,000,000 1,575,000,000 1,575,000,000 1,575,000,000 945,000,000 945,000,000 945,000,000 945,000,000 1,575,000,000 1,575,000,000
Direct Labor 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000
Total 2,300,000 2,300,000 1,577,300,000 1,577,300,000 1,577,300,000 1,577,300,000 947,300,000 947,300,000 947,300,000 947,300,000 1,577,300,000 1,577,300,000
152
Conclusion in Technical Feasibility

To summary, we start with cost of register amount 294,600 baht and pay the money
for start up the business included with equipment, machine, land, and so on, have to spend the
administrative cost such as electricity expense, salary, and stationary. It can possible the
located the factory in Chiangrai because easily to find water in production and widely area.
We have planed the layout of factory that can suit with area. Also, we manage the area where
divide in to each station for easy and comfortable to process until start to the end and
consider to the social responsibility by create waste water station to eliminate the waste water
before launch it to the water resource. In addition, w have contacted for transport with Pa Yak
Transport Company Limited because this company can be trust and also transport our product
in high volume every day. The cost that we use in transportation is around 11,000 baht per
times per truck that can increase or decrease depending on the price of fuel. Siam Rubber
Company limited has the organization structure which separate into 4 departments comprises
with human resource, customer relation, production and operation, and financial department.
Also, we outsource some employees from other company to reduce the cost including with
transportation, security guard, and the technician for maintain the equipment. We emphasize
in the production and operation department because most of the employees work in this
department. Our company has the employees around 74 people included outsourcing. In
addition, each department has to collaborate together and have the authority follow the
hierarchy step that the highest authority is the president and the manager of each department
as following. We have training and orientation the employees before work and also pay the
salary and other compensation to them by based on the minimum wage paid of Chiangrai
province. Also, the working time of Siam Rubber Company will begin at 8.00 A.M. - 16.00
P.M. and all of employees except outsourcing have to dress the same uniform.
153
CHAPTER 5
154
Chapter 5
Financial Analysis
This chapter describes the financial statement, starting from funding requirement, net
income, balance sheet, statement of cash flow and financial calculation
5.1 Cost of investment

That is initial capital to establish companies to pay for the purchase of property or
payment of expenses for the founder. In our company are as follows
Land is payments made for purchase of land to build factories and companies.
Building is payments made to create all types of construction companies, factories,
office buildings, staff housing, and all others by the contractor to pay the wages and
materials.
Cost of Register is costs of registration, as well as various other charges as required
by law.
Machine is costs in the purchase of equipment used within the factory.
Vehicle is the cost of buying the vehicle used for travel companies connect with
customers, including forklift trucks used in the factory.
Equipment is costs in the purchase of office equipment in offices and factories.
Supplies are renewable materials and the need to purchase replacement cost of this
buying is prepared to operation.
Determined by the reference each banks, then we propose a capital, internal rate of
return, and a return on investment as follow by step
Capital: 13,851,874 Baht
We will pay interest at the rate of 9 % per year by interest calculated at the rate of
principal each year.
Repayment of capital to the liquidity of the business in the first year, Thus, in the first
year it has not paid back the principal and then we can set the duration and rate of return as
follow table
155
Land 1,170,000
Building 7,880,000
Machine 625,000
Vehicle 1,550,000
Equipment 2,332,274
Register 294,600
Total cost of investment 13,851,874
5.2 Depreciation
 Buildings have the value amount 7,880,000 baht and have the time life for 20 years. It
has the depreciation at 394,000 baht per year or 32,833.33 baht per month.
 The value of machine is 7,500,000 baht and has the time life for 5 years. After that
will sale at 1,500,000 baht and have the depreciation for 200,000 baht per year or 16,
666. 67 baht per month.
 The vehicles have the value amount 1,550,000 baht and have 10 year life. It can sale
at 550,000 baht and have the depreciation for 100,000 baht per year.
 The equipment has the value amount 2,332,274 baht for 3 years life. It can be sale at
30,000 baht and have depreciation for 677,424.67 per year
156
Depreciation Expense
2011
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2012
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2013
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2014
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
157
2015
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2016
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2017
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2018
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
158
2019
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
2020
Building 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 32,833 394,000
Machine 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 91,667 1,100,000
Equipment 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 56,452 677,425
Vehicle 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000
Total 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 189,285 2,271,425
159
Financial statement
5.3 Income statement

Income statement that show detail the follow
Revenue
-Sale of Smoked ribbed sheets No.3 acquired the sale of smoked rubber sheet, all of
which come from the forecast.
- Sale of Smoked ribbed sheets No.3 Packed acquired forecast sales of rubbed smoked
sheet number 3 package each month
-Sale of cutting rubber acquired from sales of tires cutting from the forecast.
-Total sale acquired from the sum of all 3 of the above products.
Cost of goods sold is the cost of all production costs are as follows
1. Direct material acquired from the total cost of water used for the purchase of raw
rubber in a month.
2. Direct Labor acquired from labor cost to persons involved in the production line.
3. Manufacturing overhead - Other expenses that are not direct material and direct
labor in the production line.
Gross margin is gross margin from the value of sales minus the cost of production.
Expense
 Administration Expense - Costs in management and operations within the
company.
 Marketing Expense - The total cost of advertising and public relations
companies to attract customers to use the service.
 Depreciation - Belittle the property is large and very valuable.
Utilities Expense - Other costs that sometimes may not be able to have been
excluded.
 Maintenance Expense -The cost of maintaining the property, including the
Company's products.
 Supplies Expense -The value of supplies used out of each month.
 Interest - Interest to be paid to the owner of capital.
 Tax -Taxes must be paid to the government in the form of tax.
Net income is Income after deducting all expenses.
160
5.4 Statement of cash flow

The demonstrated by the use of cash actually paid in terms of the actual cash receipts,
cash expenses under the actual cost since its inception, as well as business operations.
5.5 Balance Sheet

Asset shows that the number of properties owned in the form of a cash and non-
monetary.
Liabilities This demonstrates the company's total liabilities of each year.
Equity is displayed in the equity that comes from accumulated net income each year.
161
Cash Flow Statement
Year 2011
Cash at Beginning of Month - 29,186,384 28,052,599 30,036,913 32,056,764 34,035,978 36,021,793 38,636,043 41,225,458 43,866,472 46,500,122 48,485,937
Production Activities
Cash paid for
Direct material - - (1,872,000) (1,872,000) (1,872,000) (1,872,000) (1,123,200) (1,123,200) (1,123,200) (1,123,200) (1,872,000) (1,872,000)
Direct labor (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000)
Manufacturing overhead (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000)
Net Cash Flow from Production (500,000) (500,000) (2,372,000) (2,372,000) (2,372,000) (2,372,000) (1,623,200) (1,623,200) (1,623,200) (1,623,200) (2,372,000) (2,372,000)
Operations
Sale - - 5,165,000 5,165,000 5,165,000 5,165,000 4,991,000 4,991,000 4,991,000 4,991,000 5,165,000 5,165,000
Cash paid for
Employee Salary (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700)
Rental Fee - - - - - - - - - - - -
Stationary Expense (22,700) - - (5,865) - - (5,865) - - (5,865) - -
Electricity Expense 31,000 (30,000) (50,000) (55,000) (55,000) (50,000) (49,000) (30,000) (30,000) (30,000) (50,000) (50,000)
Water Expense - - - - - - - - - - - -
Internet and Telephone Expense (2,800) (2,800) (3,200) (3,300) (3,300) (3,200) (3,200) (2,900) (2,800) (2,800) (3,200) (3,200)
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Social Security Insurance Expense 251,685 - - - - - - - - - - -
Motivation Expense - - - - - - - - - - - (50,000)
Training Expense - - - - - - - (50,000) - - - -
Staff Shirt Expense (18,750) - - - - - - - - - - -
Marketing Expense (351,500) (147,000) (301,500) (255,000) (301,500) (300,000) (241,500) (241,500) (240,000) (241,500) (300,000) (501,500)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Utilities Expense (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000)
Interest Expense - - - - - - - - - - - (4,500,000)
Net Cash Flow from Operations (586,742) (633,785) 4,356,315 4,391,850 4,351,215 4,357,815 4,237,450 4,212,615 4,264,215 4,256,850 4,357,815 (393,685)
Investing Activities
Cash receipts from
Sale of asset - - - - - - - - - - - -
Cash paid for
Building (7,880,000) - - - - - - - - - - -
Purchase of Vehicle (1,550,000) - - - - - - - - - - -
Purchase of machine (6,500,000) - - - - - - - - - - -
Purchase of property (1,170,000) - - - - - - - - - - -
Purchase of equipment (2,332,274) - - - - - - - - - - -
Register (294,600) - - - - - - - - - - -
Net Cash Flow from Investing Activities (19,726,874) - - - - - - - - - - -
Financing Activities
Cash receipts from
Borrowing 50,000,000 - - - - - - - - - - -
Cash paid for
Repayment of loans - - - - - - - - - - - -
Net Cash Flow from Financing Activities 50,000,000 - - - - - - - - - - -
Cash at the end of the month 29,186,384 28,052,599 30,036,913 32,056,764 34,035,978 36,021,793 38,636,043 41,225,458 43,866,472 46,500,122 48,485,937 45,720,251
162

Cash Flow Statement
Year 2012
Cash at Beginning of Month 45,720,251 51,792,990 58,324,304 56,730,719 55,168,569 53,565,784 51,973,598 53,605,248 55,259,863 56,946,178 58,625,128 57,032,942
Cash paid for
Direct material - - (9,720,000) (9,720,000) (9,720,000) (9,720,000) (5,832,000) (5,832,000) (5,832,000) (5,832,000) (9,720,000) (9,720,000)
Direct labor (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000)
Operations
Sale 7,875,000 7,875,000 9,675,000 9,675,000 9,675,000 9,675,000 8,955,000 8,955,000 8,955,000 8,955,000 9,675,000 9,675,000
Cash paid for
Employee Salary (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700)
Rental Fee - - - - - - - - - - - -
Electricity Expense - (40,000) (90,000) (99,000) (99,000) (90,000) (87,000) (40,000) (40,000) (40,000) (90,000) (90,000)
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Social Security Insurance Expense (251,685) - - - - - - - - - - -
Staff Shirt Expense - - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Net Cash Flow from Operations 6,772,738 7,231,315 8,826,415 8,857,850 8,817,215 8,827,815 8,163,650 8,186,615 8,218,315 8,210,950 8,827,815 4,076,315
Cash receipts from
Sale of asset - - - - - - - - - - - -
Cash paid for - - - - - - - - - - - -
Building - - - - - - - - - - - -
Purchase of Vehicle - - - - - - - - - - - -
Purchase of machine - - - - - - - - - - - -
Purchase of property - - - - - - - - - - - -
Purchase of equipment - - - - - - - - - - - -
Purchase of supplies - - - - - - - - - - - -
Register - - - - - - - - - - - -
Net Cash Flow from Investing Activities - - - - - - - - - - - -
Cash receipts from
Borrowing - - - - - - - - - - - -
Cash paid for
Repayment of loans - - - - - - - - - - - (2,500,000)
Net Cash Flow from Financing Activities - - - - - - - - - - - (2,500,000)
163
Cash Flow Statement
Year 2013
Cash at Beginning of Month 48,189,257 104,317,095 160,535,510 200,407,424 240,459,975 280,320,689 320,191,104 366,594,154 413,013,068 459,460,483 505,903,533 545,773,848
Cash paid for
Direct material - - (20,160,000) (20,160,000) (20,160,000) (20,160,000) (12,096,000) (12,096,000) (12,096,000) (12,096,000) (20,160,000) (20,160,000)
Direct labor (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000)
Operations
Sale 57,000,000 57,000,000 60,720,000 60,720,000 60,720,000 60,720,000 59,232,000 59,232,000 59,232,000 59,232,000 60,720,000 60,720,000
Cash paid for
Employee Salary 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700
Rental Fee - - - - - - - - - - - -
Electricity Expense (51,000) (50,000) (111,000) 122,100 (122,100) (111,000) (90,000) (50,000) (50,000) (50,000) (111,000) (111,000)
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Marketing Expense 351,500 147,000 301,500 255,000 301,500 300,000 241,500 241,500 240,000 241,500 300,000 501,500
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Cash receipts from
Sale of asset - - - - - - - - - - - 300,000
Cash paid for - - - - - - - - - - - -
Building - - - - - - - - - - - -
Register - - - - - - - - - - - -
Net Cash Flow from Investing Activities - - - - - - - - - - - 300,000
Cash receipts from
Borrowing - - - - - - - - - - - -
Cash paid for
164
Cash Flow Statement
Year 2014
Cash at Beginning of Month 579,320,662 658,723,827 740,968,841 763,354,256 785,768,706 808,142,521 830,529,435 876,845,085 923,181,600 969,549,615 1,015,910,265 1,038,297,079
Cash paid for
Direct material - - (73,080,000) (73,080,000) (73,080,000) (73,080,000) (43,848,000) (43,848,000) (43,848,000) (43,848,000) (73,080,000) (73,080,000)
Direct labor (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000)
Net Cash Flow from Production (1,100,000) (1,100,000) (74,180,000) (74,180,000) (74,180,000) (74,180,000) (44,948,000) (44,948,000) (44,948,000) (44,948,000) (74,180,000) (74,180,000)
Operations
Sale 84,000,000 84,000,000 97,440,000 97,440,000 97,440,000 97,440,000 92,064,000 92,064,000 92,064,000 92,064,000 97,440,000 97,440,000
Cash paid for
Employee Salary (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700)
Rental Fee - - - - - - - - - - - -
Electricity Expense (61,000) (50,000) (115,000) (126,500) (126,500) (115,000) (95,000) (50,000) (50,000) (50,000) (115,000) (115,000)
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Interest Expense (4,050,000)
Cash receipts from
Sale of asset -
Cash paid for
Building - - - - - - - - - - - -
Purchase of equipment (2,332,274)
Register - - - - - - - - - - - -
Cash receipts from
Borrowing - - - - - - - - - - - -
Cash paid for
Cash at the end of the month 658,723,827 740,968,841 763,354,256 785,768,706 808,142,521 830,529,435 876,845,085 923,181,600 969,549,615 1,015,910,265 1,038,297,079 1,053,882,394
165
Cash Flow Statement
Year 2015
Cash at Beginning of Month 1,053,882,394 308,501,947 309,147,824 220,613,024 220,641,559 220,600,924 220,614,524 255,967,459 255,983,324 256,508,606 256,019,188 220,614,524
Cash paid for
Direct material - - (108,000,000) (108,000,000) (108,000,000) (108,000,000) (64,800,000) (64,800,000) (64,800,000) (64,800,000) (108,000,000) (108,000,000)
Direct labor (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000)
Operations
Sale 311,000,000 311,000,000 330,800,000 330,800,000 330,800,000 330,800,000 322,880,000 322,880,000 322,880,000 322,880,000 330,800,000 330,800,000
Cash paid for
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) 246,891 (246,891) (246,891) (246,891)
Rental Fee - - - - - - - - - - - -
Stationary Expense (22,700) - - (5,865) - - (5,865) - - 5,865 - -
Electricity Expense (61,000) 60,000 (120,000) (132,000) (132,000) (120,000) (100,000) (60,000) (60,000) (60,000) (120,000) (120,000)
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Staff Shirt Expense (18,750) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Interest Expense 3,825,000
Cash receipts from
Sale of asset - - - - - - - - - - - 15,000,000
Cash paid for - - - - - - - - - - - -
Building - - - - - - - - - - - -
Register - - - - - - - - - - - -
Net Cash Flow from Investing Activities - - - - - - - - - - - 15,000,000
Cash receipts from
Borrowing - - - - - - - - - - - -
Cash paid for
166

Cash Flow Statement
Year 2016
Cash at Beginning of Month 234,188,024 560,008,720 892,836,544 1,114,569,568 1,336,327,127 1,558,044,050 1,779,773,574 2,045,933,033 2,312,108,357 2,578,315,180 2,844,526,368 3,066,255,892
Cash paid for
Direct material - - (133,920,000) (133,920,000) (133,920,000) (133,920,000) (80,352,000) (80,352,000) (80,352,000) (80,352,000) (133,920,000) (133,920,000)
Direct labor (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000)
Operations
Sale 335,000,000 335,000,000 358,040,000 358,040,000 358,040,000 358,040,000 348,824,000 348,824,000 348,824,000 348,824,000 358,040,000 358,040,000
Cash paid for
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891)
Rental Fee - - - - - - - - - - - -
Stationary Expense (22,700) - - (5,865) - - (5,865) - - 5,865 - -
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Interest Expense - - - - - - - - - - - 3,375,000
Cash receipts from
Sale of asset - - - - - - - - - - - 300,000
Cash paid for
Building
Purchase of machine (6,500,000) - - - - - - - - - - -
Register - - - - - - - - - - - -
Net Cash Flow from Investing Activities (6,500,000) - - - - - - - - - - 300,000
Cash receipts from
Borrowing
Cash paid for
Repayment of loans - (5,000,000)
Cash at the end of the month 560,008,720 892,836,544 1,114,569,568 1,336,327,127 1,558,044,050 1,779,773,574 2,045,933,033 2,312,108,357 2,578,315,180 2,844,526,368 3,066,255,892 3,286,408,916
167

Cash Flow Statement
Year 2017
Cash paid for
Direct material - - (161,280,000) (161,280,000) (161,280,000) (161,280,000) (96,768,000) (96,768,000) (96,768,000) (96,768,000) (161,280,000) (161,280,000)
Direct labor (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000)
Operations
Sale 368,000,000 368,000,000 394,880,000 394,880,000 394,880,000 394,880,000 384,128,000 384,128,000 384,128,000 384,128,000 394,880,000 394,880,000
Cash paid for
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891)
Rental Fee - - - - - - - - - - - -
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Cash receipts from
Sale of asset -
Cash paid for
Building
Purchase of Vehicle
Purchase of machine
Purchase of property
Purchase of supplies
Register
Cash receipts from
Borrowing
Cash paid for
168

Cash Flow Statement
Year 2018
Cash at Beginning of Month 222,833,024 633,748,470 1,045,171,044 1,297,978,868 1,550,814,727 1,803,609,950 2,056,419,274 2,372,651,483 2,688,909,557 3,005,199,130 3,321,481,339 3,574,290,663
Cash paid for
Direct material - - (190,080,000) (190,080,000) (190,080,000) (190,080,000) (114,048,000) (114,048,000) (114,048,000) (114,048,000) (190,080,000) (190,080,000)
Direct labor (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000)
Manufacturing overhead (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000)
Operations
Sale 414,000,000 414,000,000 445,680,000 445,680,000 445,680,000 445,680,000 433,008,000 433,008,000 433,008,000 433,008,000 445,680,000 445,680,000
Cash paid for
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891)
Rental Fee - - - - - - - - - - - -
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Interest Expense 2,475,000
Cash receipts from
Sale of asset -
Cash paid for
Building
Purchase of Vehicle
Purchase of machine
Purchase of equipment
Register
Net Cash Flow from Investing Activities - - - - - - - - - - - -
Cash receipts from
Borrowing
Cash paid for
Cash at the end of the month 633,748,470 1,045,171,044 1,297,978,868 1,550,814,727 1,803,609,950 2,056,419,274 2,372,651,483 2,688,909,557 3,005,199,130 3,321,481,339 3,574,290,663 3,821,823,487
169

Cash Flow Statement
Year 2019
Cash paid for
Direct material - - (220,320,000) (220,320,000) (220,320,000) (220,320,000) (132,192,000) (132,192,000) (132,192,000) (132,192,000) (220,320,000) (220,320,000)
Direct labor (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000)
Operations
Sale 497,500,000 497,500,000 534,220,000 534,220,000 534,220,000 534,220,000 519,532,000 519,532,000 519,532,000 519,532,000 534,220,000 534,220,000
Cash paid for
Employee Salary (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298)
Rental Fee - - - - - - - - - - - -
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Cash receipts from
Sale of asset - 300,000
Cash paid for
Building
Purchase of Vehicle
Purchase of machine
Purchase of equipment
Register
Net Cash Flow from Investing Activities - - - - - - - - - - - 300,000
Cash receipts from
Borrowing
Cash paid for
170
Cash Flow Statement
Year 2020
Cash at Beginning of Month 301,650,417 1,062,812,256 1,826,821,273 2,275,615,590 2,724,437,942 3,173,219,659 3,622,015,476 4,196,869,128 4,771,753,645 5,346,669,662 5,921,578,314 6,370,374,131
Cash paid for
Direct material - - (378,000,000) (378,000,000) (378,000,000) (378,000,000) (226,800,000) (226,800,000) (226,800,000) (226,800,000) (378,000,000) (378,000,000)
Direct labor (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000)
Operations
Sale 767,000,000 767,000,000 830,000,000 830,000,000 830,000,000 830,000,000 804,800,000 804,800,000 804,800,000 804,800,000 830,000,000 830,000,000
Cash paid for -
Employee Salary (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298)
Rental Fee - - - - - - - - - - - -
Water Expense - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - -
Fire Insurance (12,891) - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285)
Income Taxes (30%) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000) (6,000)
Cash receipts from
Sale of asset - 5,500,000
Cash paid for
Building
Purchase of Vehicle
Purchase of machine
Register
Net Cash Flow from Investing Activities (2,332,274) - - - - - - - - - - 5,500,000
Cash receipts from
Borrowing
Cash paid for
Cash at the end of the month 1,062,812,256 1,826,821,273 2,275,615,590 2,724,437,942 3,173,219,659 3,622,015,476 4,196,869,128 4,771,753,645 5,346,669,662 5,921,578,314 6,370,374,131 6,810,793,448
171

Income Statement
Year 2011
Period Starting: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales
Ribbed smoked sheets No.3 - - 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 22,500,000
Ribbed smoked sheets No.3 Packed - - 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 2,480,000 24,800,000
Cutting Rubber - - 435,000 435,000 435,000 435,000 261,000 261,000 261,000 261,000 435,000 435,000 3,654,000
Total Sales - - 5,165,000 5,165,000 5,165,000 5,165,000 4,991,000 4,991,000 4,991,000 4,991,000 5,165,000 5,165,000 50,954,000
Less Cost of Goods Sold
Materials - - (1,872,000) (1,872,000) (1,872,000) (1,872,000) (1,123,200) (1,123,200) (1,123,200) (1,123,200) (1,872,000) (1,872,000) (15,724,800)
Labor (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (2,400,000)
Overhead (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (3,600,000)
Total Cost of Goods Sold (500,000) (500,000) (2,372,000) (2,372,000) (2,372,000) (2,372,000) (1,623,200) (1,623,200) (1,623,200) (1,623,200) (2,372,000) (2,372,000) (21,724,800)
Gross Profit (500,000) (500,000) 2,793,000 2,793,000 2,793,000 2,793,000 3,367,800 3,367,800 3,367,800 3,367,800 2,793,000 2,793,000 29,229,200
Expenses
Administration Expense
Employee Salary (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (2,876,400)
Rental Fee - - - - - - - - - - - - -
Stationary Expense (22,700) - - (5,865) - - (5,865) - - (5,865) - - (40,294)
Electricity Expense (31,000) (30,000) (50,000) (55,000) (55,000) (50,000) (49,000) (30,000) (30,000) (30,000) (50,000) (50,000) (510,000)
Water Expense - - - - - - - - - - - - -
Internet and Telephone Expense (2,800) (2,800) (3,200) (3,300) (3,300) (3,200) (3,200) (2,900) (2,800) (2,800) (3,200) (3,200) (36,700)
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Social Security Insurance Expense (251,685) - - - - - - - - - - - (251,685)
Motivation Expense - - - - - - - - - - - (50,000) (50,000)
Training Expense - - - - - - - (50,000) - - - - (50,000)
Staff Shirt Expense (18,750) - - - - - - - - - - - (18,750)
Marketing Expense (351,500) (147,000) (301,500) (255,000) (301,500) (300,000) (241,500) (241,500) (240,000) (241,500) (300,000) (501,500) (3,422,500)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Utilities Expense (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (240,000)
Interest Expense - - - - - - - - - - - (4,500,000) (4,500,000)
Total Expenses (1,152,112) (633,785) (808,685) (773,150) (813,785) (807,185) (753,550) (778,385) (726,785) (734,150) (807,185) (5,558,685) (14,347,445)
Income (Loss) Before Taxes 652,112 133,785 3,601,685 3,566,150 3,606,785 3,600,185 4,121,350 4,146,185 4,094,585 4,101,950 3,600,185 8,351,685 43,576,645
Income Taxes (30%) 195,634 40,136 1,080,506 1,069,845 1,082,036 1,080,056 1,236,405 1,243,856 1,228,376 1,230,585 1,080,056 2,505,506 13,072,993
Net Income 456,478 93,650 2,521,180 2,496,305 2,524,750 2,520,130 2,884,945 2,902,330 2,866,210 2,871,365 2,520,130 5,846,180 30,503,651
172

Income Statement
Year 2012
Sales
Ribbed smoked sheets No.3 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 4,650,000 55,800,000
Ribbed smoked sheets No.3 Packed 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 57,600,000
Cutting Rubber - - 450,000 450,000 450,000 450,000 270,000 270,000 270,000 270,000 450,000 450,000 3,780,000
Total Sales 9,450,000 9,450,000 9,900,000 9,900,000 9,900,000 9,900,000 9,720,000 9,720,000 9,720,000 9,720,000 9,900,000 9,900,000 117,180,000
Materials - - (9,720,000) (9,720,000) (9,720,000) (9,720,000) (5,832,000) (5,832,000) (5,832,000) (5,832,000) (9,720,000) (9,720,000) (81,648,000)
Labor (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (300,000) (3,600,000)
Overhead (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (4,800,000)
Gross Profit 10,150,000 10,150,000 20,320,000 20,320,000 20,320,000 20,320,000 16,252,000 16,252,000 16,252,000 16,252,000 20,320,000 20,320,000 207,228,000
Expenses
Employee Salary (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (2,876,400)
Rental Fee - - - - - - - - - - - - -
Electricity Expense - (40,000) (90,000) (99,000) (99,000) (90,000) (87,000) (40,000) (40,000) (40,000) (90,000) (90,000) (805,000)
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Staff Shirt Expense - - - - - - - - - - - - -
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Total Expenses (1,102,262) (643,685) (848,585) (817,150) (857,785) (847,185) (791,350) (768,385) (736,685) (744,050) (847,185) (5,598,685) (14,602,995)
Income (Loss) Before Taxes 11,252,262 10,793,685 21,168,585 21,137,150 21,177,785 21,167,185 17,043,350 17,020,385 16,988,685 16,996,050 21,167,185 25,918,685 221,830,995
Income Taxes (30%) 3,375,679 3,238,106 6,350,576 6,341,145 6,353,336 6,350,156 5,113,005 5,106,116 5,096,606 5,098,815 6,350,156 7,775,606 66,549,298
Net Income 7,876,583 7,555,580 14,818,010 14,796,005 14,824,450 14,817,030 11,930,345 11,914,270 11,892,080 11,897,235 14,817,030 18,143,080 155,281,696
173

Income Statement
Year 2013
Sales
Cutting Rubber - - 4,650,000 4,650,000 4,650,000 4,650,000 2,790,000 2,790,000 2,790,000 2,790,000 4,650,000 4,650,000 39,060,000
Total Sales 65,000,000 65,000,000 69,650,000 69,650,000 69,650,000 69,650,000 67,790,000 67,790,000 67,790,000 67,790,000 69,650,000 69,650,000 819,060,000
Materials - - (20,160,000) (20,160,000) (20,160,000) (20,160,000) (12,096,000) (12,096,000) (12,096,000) (12,096,000) (20,160,000) (20,160,000) (169,344,000)
Labor (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (4,800,000)
Overhead (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (6,000,000)
Gross Profit 65,900,000 65,900,000 90,710,000 90,710,000 90,710,000 90,710,000 80,786,000 80,786,000 80,786,000 80,786,000 90,710,000 90,710,000 999,204,000
Expenses
Employee Salary 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 239,700 2,876,400
Rental Fee - - - - - - - - - - - - -
Electricity Expense (51,000) (50,000) (111,000) 122,100 (122,100) (111,000) (90,000) (50,000) (50,000) (50,000) (111,000) (111,000) (785,000)
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Marketing Expense 351,500 147,000 301,500 255,000 301,500 300,000 241,500 241,500 240,000 241,500 300,000 501,500 3,422,500
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Total Expenses 27,838 118,415 211,915 392,550 200,715 210,415 167,050 182,915 211,415 207,050 210,315 (3,913,185) (1,772,595)
Income (Loss) Before Taxes 65,872,162 65,781,585 90,498,085 90,317,450 90,509,285 90,499,585 80,618,950 80,603,085 80,574,585 80,578,950 90,499,685 94,623,185 1,000,976,595
Income Taxes (30%) 19,761,649 19,734,476 27,149,426 27,095,235 27,152,786 27,149,876 24,185,685 24,180,926 24,172,376 24,173,685 27,149,906 28,386,956 300,292,978
Net Income 46,110,513 46,047,110 63,348,660 63,222,215 63,356,500 63,349,710 56,433,265 56,422,160 56,402,210 56,405,265 63,349,780 66,236,230 700,683,616
174

Income Statement
Year 2014
Sales
Cutting Rubber - - 16,800,000 16,800,000 16,800,000 16,800,000 10,080,000 10,080,000 10,080,000 10,080,000 16,800,000 16,800,000 141,120,000
Total Sales 67,000,000 67,000,000 83,800,000 83,800,000 83,800,000 83,800,000 77,080,000 77,080,000 77,080,000 77,080,000 83,800,000 83,800,000 945,120,000
Materials - - (73,080,000) (73,080,000) (73,080,000) (73,080,000) (43,848,000) (43,848,000) (43,848,000) (43,848,000) (73,080,000) (73,080,000) (613,872,000)
Labor (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (6,000,000)
Overhead (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (7,200,000)
Total Cost of Goods Sold (1,100,000) (1,100,000) (74,180,000) (74,180,000) (74,180,000) (74,180,000) (44,948,000) (44,948,000) (44,948,000) (44,948,000) (74,180,000) (74,180,000) (627,072,000)
Gross Profit 68,100,000 68,100,000 157,980,000 157,980,000 157,980,000 157,980,000 122,028,000 122,028,000 122,028,000 122,028,000 157,980,000 157,980,000 1,572,192,000
Expenses
Employee Salary (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (239,700) (2,876,400)
Rental Fee - - - - - - - - - - - - -
Electricity Expense (61,000) (50,000) (115,000) (126,500) (126,500) (115,000) (95,000) (50,000) (50,000) (50,000) (115,000) (115,000) (1,069,000)
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Interest Expense (4,050,000) (4,050,000)
Total Expenses (1,164,562) (654,985) (874,585) (845,550) (886,185) (873,085) (800,350) (779,485) (747,985) (755,350) (873,185) (5,174,685) (14,429,995)
Income Taxes (30%) 20,779,369 20,626,496 47,656,376 47,647,665 47,659,856 47,655,926 36,848,505 36,842,246 36,832,796 36,835,005 47,655,956 48,946,406 475,986,598
Net Income 48,485,193 48,128,490 111,198,210 111,177,885 111,206,330 111,197,160 85,979,845 85,965,240 85,943,190 85,948,345 111,197,230 114,208,280 1,110,635,396
175

Income Statement
Year 2015
Sales
Ribbed smoked sheets No.3 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 136,000,000 1,632,000,000
Ribbed smoked sheets No.3 Packed 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 140,000,000 1,680,000,000
Cutting Rubber - - 24,750,000 24,750,000 24,750,000 24,750,000 14,850,000 14,850,000 14,850,000 14,850,000 24,750,000 24,750,000 207,900,000
Total Sales 276,000,000 276,000,000 300,750,000 300,750,000 300,750,000 300,750,000 290,850,000 290,850,000 290,850,000 290,850,000 300,750,000 300,750,000 3,519,900,000
Materials - - (108,000,000) (108,000,000) (108,000,000) (108,000,000) (64,800,000) (64,800,000) (64,800,000) (64,800,000) (108,000,000) (108,000,000) (907,200,000)
Labor (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (7,200,000)
Overhead (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (8,400,000)
Total Cost of Goods Sold (1,300,000) (1,300,000) (109,300,000) (109,300,000) (109,300,000) (109,300,000) (66,100,000) (66,100,000) (66,100,000) (66,100,000) (109,300,000) (109,300,000) (922,800,000)
Gross Profit 277,300,000 277,300,000 410,050,000 410,050,000 410,050,000 410,050,000 356,950,000 356,950,000 356,950,000 356,950,000 410,050,000 410,050,000 4,442,700,000
Expenses
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) 246,891 (246,891) (246,891) (246,891) (2,468,910)
Rental Fee - - - - - - - - - - - - -
Stationary Expense (22,700) - - (5,865) - - (5,865) - - 5,865 - - (28,565)
Electricity Expense (61,000) 60,000 (120,000) (132,000) (132,000) (120,000) (100,000) (60,000) (60,000) (60,000) (120,000) (120,000) (1,025,000)
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Staff Shirt Expense (18,750) - - - - - - - - - - - (18,750)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Interest Expense 3,825,000 3,825,000
Total Expenses (1,198,053) (552,176) (886,976) (858,441) (899,076) (885,476) (812,541) (796,676) (271,394) (760,812) (885,476) 2,688,024 (6,119,076)
Income Taxes (30%) 83,549,416 83,355,653 123,281,093 123,272,532 123,284,723 123,280,643 107,328,762 107,324,003 107,166,418 107,313,244 123,280,643 122,208,593 1,334,645,723
Net Income 194,948,637 194,496,523 287,655,883 287,635,909 287,664,353 287,654,833 250,433,779 250,422,673 250,054,976 250,397,568 287,654,833 285,153,383 3,114,173,353
176

Income Statement
Year 2016
Sales
Cutting Rubber - - 28,800,000 28,800,000 28,800,000 28,800,000 17,280,000 17,280,000 17,280,000 17,280,000 28,800,000 28,800,000 241,920,000
Total Sales 419,000,000 419,000,000 447,800,000 447,800,000 447,800,000 447,800,000 436,280,000 436,280,000 436,280,000 436,280,000 447,800,000 447,800,000 5,269,920,000
Materials - - (133,920,000) (133,920,000) (133,920,000) (133,920,000) (80,352,000) (80,352,000) (80,352,000) (80,352,000) (133,920,000) (133,920,000) (1,124,928,000)
Labor (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (700,000) (8,400,000)
Overhead (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (9,600,000)
Total Cost of Goods Sold (1,500,000) (1,500,000) (135,420,000) (135,420,000) (135,420,000) (135,420,000) (81,852,000) (81,852,000) (81,852,000) (81,852,000) (135,420,000) (135,420,000) (1,142,928,000)
Gross Profit 420,500,000 420,500,000 583,220,000 583,220,000 583,220,000 583,220,000 518,132,000 518,132,000 518,132,000 518,132,000 583,220,000 583,220,000 6,412,848,000
Expenses
Employee Salary 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 246,891 2,962,692
Rental Fee - - - - - - - - - - - - -
Stationary Expense 22,700 - - 5,865 - - 5,865 - - 5,865 - - 40,294
Electricity Expense 61,000 60,000 120,000 136,000 136,000 125,000 100,000 60,000 60,000 60,000 125,000 125,000 1,168,000
Water Expense - - - - - - - - - - - - -
Internet and Telephone Expense 4,000 4,000 4,300 4,400 4,400 4,300 4,000 4,000 4,000 4,000 4,300 4,300 50,000
Car Insurance 6,800 - - - - - - - - - - - 6,800
Fire Insurance 12,891 - - - - - - - - - - - 12,891
Social Security Insurance Expense 259,236 - - - - - - - - - - - 259,236
Motivation Expense - - - - - - - - - - - 50,000 50,000
Training Expense - - - - - - - 30,000 - - - - 30,000
Marketing Expense 351,500 147,000 301,500 255,000 301,500 300,000 241,500 241,500 240,000 241,500 300,000 501,500 3,422,500
Maintenance 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Utilities Expense 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000
Interest Expense - - - - - - - - - - - 3,375,000 3,375,000
Total Expenses 800,733 293,606 508,406 483,870 524,506 511,906 433,970 418,106 386,606 393,970 511,906 4,138,406 9,405,988
Income Taxes (30%) 125,909,780 126,061,918 174,813,478 174,820,839 174,808,648 174,812,428 155,309,409 155,314,168 155,323,618 155,321,409 174,812,428 173,724,478 1,921,032,604
Net Income 293,789,487 294,144,476 407,898,116 407,915,291 407,886,846 407,895,666 362,388,621 362,399,726 362,421,776 362,416,621 407,895,666 405,357,116 4,482,409,409
177

Income Statement
Year 2017
Sales
Cutting Rubber - - 33,600,000 33,600,000 33,600,000 33,600,000 20,160,000 20,160,000 20,160,000 20,160,000 33,600,000 33,600,000 282,240,000
Total Sales 502,500,000 502,500,000 536,100,000 536,100,000 536,100,000 536,100,000 522,660,000 522,660,000 522,660,000 522,660,000 536,100,000 536,100,000 6,312,240,000
Materials - - (161,280,000) (161,280,000) (161,280,000) (161,280,000) (96,768,000) (96,768,000) (96,768,000) (96,768,000) (161,280,000) (161,280,000) (1,354,752,000)
Labor (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (800,000) (9,600,000)
Overhead (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (10,800,000)
Gross Profit 504,200,000 504,200,000 699,080,000 699,080,000 699,080,000 699,080,000 621,128,000 621,128,000 621,128,000 621,128,000 699,080,000 699,080,000 7,687,392,000
Expenses
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (2,962,692)
Rental Fee - - - - - - - - - - - - -
Stationary Expense (22,700) - - (5,865) - - (5,865) - - 5,865 - - (28,565)
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Interest Expense - - - - - - - - - - - 3,375,000 3,375,000
Total Expenses (1,179,303) (672,176) (886,976) (862,441) (903,076) (890,476) (812,541) (796,676) (765,176) (760,812) (890,476) 2,233,024 (7,187,108)
Income Taxes (30%) 151,613,791 151,461,653 209,990,093 209,982,732 209,994,923 209,991,143 186,582,162 186,577,403 186,567,953 186,566,644 209,991,143 209,054,093 2,308,373,732
Net Income 353,765,512 353,410,523 489,976,883 489,959,709 489,988,153 489,979,333 435,358,379 435,347,273 435,325,223 435,322,168 489,979,333 487,792,883 5,386,205,376
178

Income Statement
Year 2018
Sales
Cutting Rubber - - 39,600,000 39,600,000 39,600,000 39,600,000 23,760,000 23,760,000 23,760,000 23,760,000 39,600,000 39,600,000 332,640,000
Total Sales 605,000,000 605,000,000 644,600,000 644,600,000 644,600,000 644,600,000 628,760,000 628,760,000 628,760,000 628,760,000 644,600,000 644,600,000 7,592,640,000
Materials - - (190,080,000) (190,080,000) (190,080,000) (190,080,000) (114,048,000) (114,048,000) (114,048,000) (114,048,000) (190,080,000) (190,080,000) (1,596,672,000)
Labor (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (900,000) (10,800,000)
Overhead (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (12,000,000)
Gross Profit 606,900,000 606,900,000 836,580,000 836,580,000 836,580,000 836,580,000 744,708,000 744,708,000 744,708,000 744,708,000 836,580,000 836,580,000 9,212,112,000
Expenses
Employee Salary (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (246,891) (2,962,692)
Rental Fee - - - - - - - - - - - - -
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Interest Expense 2,475,000 2,475,000
Total Expenses (1,184,553) (677,426) (892,176) (864,141) (904,776) (890,676) (827,791) (801,926) (770,426) (777,791) (890,676) 1,332,824 (8,149,537)
Income Taxes (30%) 182,425,366 182,273,228 251,241,653 251,233,242 251,245,433 251,241,203 223,660,737 223,652,978 223,643,528 223,645,737 251,241,203 250,574,153 2,766,078,461
Net Income 425,659,187 425,304,198 586,230,523 586,210,899 586,239,343 586,229,473 521,875,054 521,856,948 521,834,898 521,840,054 586,229,473 584,673,023 6,454,183,076
179

Income Statement
Year 2019
Sales
Cutting Rubber - - 45,900,000 45,900,000 45,900,000 45,900,000 27,540,000 27,540,000 27,540,000 27,540,000 45,900,000 45,900,000 385,560,000
Total Sales 586,500,000 586,500,000 632,400,000 632,400,000 632,400,000 632,400,000 614,040,000 614,040,000 614,040,000 614,040,000 632,400,000 632,400,000 7,423,560,000
Materials - - (220,320,000) (220,320,000) (220,320,000) (220,320,000) (132,192,000) (132,192,000) (132,192,000) (132,192,000) (220,320,000) (220,320,000) (1,850,688,000)
Labor (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) (12,000,000)
Overhead (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (13,200,000)
Gross Profit 588,600,000 588,600,000 854,820,000 854,820,000 854,820,000 854,820,000 748,332,000 748,332,000 748,332,000 748,332,000 854,820,000 854,820,000 9,299,448,000
Expenses
Employee Salary (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (3,051,573)
Rental Fee - - - - - - - - - - - - -
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Total Expenses (1,199,737) (684,833) (899,583) (871,548) (912,183) (898,083) (835,198) (809,333) (777,833) (785,198) (898,083) (2,949,583) (12,521,195)
Income Taxes (30%) 176,939,921 176,785,450 256,715,875 256,707,464 256,719,655 256,715,425 224,750,159 224,742,400 224,732,950 224,735,159 256,715,425 257,330,875 2,793,590,758
Net Income 412,859,816 412,499,383 599,003,708 598,984,083 599,012,528 599,002,658 524,417,038 524,398,933 524,376,883 524,382,038 599,002,658 600,438,708 6,518,378,436
180

Income Statement
Year 2020
Sales
Cutting Rubber - - 78,750,000 78,750,000 78,750,000 78,750,000 47,250,000 47,250,000 47,250,000 47,250,000 78,750,000 78,750,000 661,500,000
Total Sales 767,000,000 767,000,000 845,750,000 845,750,000 845,750,000 845,750,000 814,250,000 814,250,000 814,250,000 814,250,000 845,750,000 845,750,000 9,865,500,000
Materials - - (378,000,000) (378,000,000) (378,000,000) (378,000,000) (226,800,000) (226,800,000) (226,800,000) (226,800,000) (378,000,000) (378,000,000) (3,175,200,000)
Labor (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (1,100,000) (13,200,000)
Overhead (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (14,400,000)
Gross Profit 769,300,000 769,300,000 1,226,050,000 1,226,050,000 1,226,050,000 1,226,050,000 1,043,350,000 1,043,350,000 1,043,350,000 1,043,350,000 1,226,050,000 1,226,050,000 13,068,300,000
Expenses
Employee Salary (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (254,298) (3,051,573)
Rental Fee - - - - - - - - - - - - -
Water Expense - - - - - - - - - - - - -
Car Insurance (6,800) - - - - - - - - - - - (6,800)
Fire Insurance (12,891) - - - - - - - - - - - (12,891)
Maintenance (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (5,000) (60,000)
Depreciation (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (189,285) (2,271,425)
Total Expenses (1,199,887) (684,983) (899,683) (871,648) (912,283) (898,183) (840,348) (809,483) (777,983) (785,348) (898,183) (2,274,683) (11,852,695)
Income (Loss) Before Taxes 770,499,887 769,984,983 1,226,949,683 1,226,921,648 1,226,962,283 1,226,948,183 1,044,190,348 1,044,159,483 1,044,127,983 1,044,135,348 1,226,948,183 1,228,324,683 13,080,152,695
Income Taxes (30%) 231,149,966 230,995,495 368,084,905 368,076,494 368,088,685 368,084,455 313,257,104 313,247,845 313,238,395 313,240,604 368,084,455 368,497,405 3,924,045,808
Net Income 539,349,921 538,989,488 858,864,778 858,845,153 858,873,598 858,863,728 730,933,243 730,911,638 730,889,588 730,894,743 858,863,728 859,827,278 9,156,106,886
181

Balance Sheet
Year 2011
Assets
Current assets
Cash and cash equivalents 31,213,489 31,496,424 34,206,889 36,892,479 39,606,513 42,315,928 45,390,158 48,481,773 51,537,268 54,597,918 57,307,332 63,342,797
Inventories
Total current assets 31,213,489 31,496,424 34,206,889 36,892,479 39,606,513 42,315,928 45,390,158 48,481,773 51,537,268 54,597,918 57,307,332 63,342,797
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Less accumulated depreciation - Equipment - 189,285 - 378,570 - 567,855 - 757,140 - 946,425 - 1,135,710 - 1,324,995 - 1,514,280 - 1,703,565 - 1,892,850 - 2,082,135 - 2,271,420
Other assets
Total other assets 19,242,989 19,053,704 18,864,419 18,675,134 18,485,849 18,296,564 18,107,279 17,917,994 17,728,709 17,539,424 17,350,139 17,160,854
Total assets 50,456,478 50,550,128 53,071,308 55,567,613 58,092,362 60,612,492 63,497,437 66,399,767 69,265,977 72,137,342 74,657,471 80,503,651
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Total liabilities 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 456,478 550,128 3,071,308 5,567,613 8,092,362 10,612,492 13,497,437 16,399,767 19,265,977 22,137,342 24,657,471
Net income 456,478 93,650 2,521,180 2,496,305 2,524,750 2,520,130 2,884,945 2,902,330 2,866,210 2,871,365 2,520,130 5,846,180
Total Equity 456,478 550,128 3,071,308 5,567,613 8,092,362 10,612,492 13,497,437 16,399,767 19,265,977 22,137,342 24,657,471 30,503,651
Total Liabilities and Equity 50,456,478 50,550,128 53,071,308 55,567,613 58,092,362 60,612,492 63,497,437 66,399,767 69,265,977 72,137,342 74,657,471 80,503,651
182

Balance Sheet
Year 2012
Assets
Current assets
Cash and cash equivalents 109,642,595 155,878,990 219,416,935 282,828,435 346,374,220 409,913,214 466,535,764 523,147,209 579,738,704 636,333,254 699,872,319 766,297,833
Inventories
Total current assets 109,642,595 155,878,990 219,416,935 282,828,435 346,374,220 409,913,214 466,535,764 523,147,209 579,738,704 636,333,254 699,872,319 766,297,833
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Less accumulated depreciation - Equipment - 2,460,705 - 2,649,990 - 2,839,275 - 3,028,560 - 3,217,845 - 3,407,130 - 3,596,415 - 3,785,700 - 3,974,985 - 4,164,270 - 4,353,555 - 4,542,840
Other assets
Total assets 126,614,164 172,661,274 236,009,934 299,232,149 362,588,649 425,938,358 482,371,623 538,793,783 595,195,993 651,601,258 714,951,038 781,187,267
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 30,503,651 76,614,164 122,661,274 186,009,934 249,232,149 312,588,649 375,938,358 432,371,623 488,793,783 545,195,993 601,601,258 664,951,038
Net income 46,110,513 46,047,110 63,348,660 63,222,215 63,356,500 63,349,710 56,433,265 56,422,160 56,402,210 56,405,265 63,349,780 66,236,230
Total Equity 76,614,164 122,661,274 186,009,934 249,232,149 312,588,649 375,938,358 432,371,623 488,793,783 545,195,993 601,601,258 664,951,038 731,187,267
Total Liabilities and Equity 126,614,164 172,661,274 236,009,934 299,232,149 362,588,649 425,938,358 482,371,623 538,793,783 595,195,993 651,601,258 714,951,038 781,187,267
183

Balance Sheet
Year 2013
Assets
Current assets
Cash and cash equivalents 864,972,312 913,290,086 1,024,677,581 1,136,044,751 1,247,440,366 1,358,826,811 1,444,995,941 1,531,150,465 1,617,282,940 1,703,420,570 1,814,807,085 1,929,204,650
Inventories
Total current assets 864,972,312 913,290,086 1,024,677,581 1,136,044,751 1,247,440,366 1,358,826,811 1,444,995,941 1,531,150,465 1,617,282,940 1,703,420,570 1,814,807,085 1,929,204,650
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Other assets
Total assets 879,672,461 927,800,950 1,038,999,160 1,150,177,045 1,261,383,375 1,372,580,535 1,458,560,380 1,544,525,619 1,630,468,809 1,716,417,154 1,827,614,384 1,941,822,664
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 781,187,267 829,672,461 877,800,950 988,999,160 1,100,177,045 1,211,383,375 1,322,580,535 1,408,560,380 1,494,525,619 1,580,468,809 1,666,417,154 1,777,614,384
Net income 48,485,193 48,128,490 111,198,210 111,177,885 111,206,330 111,197,160 85,979,845 85,965,240 85,943,190 85,948,345 111,197,230 114,208,280
Total Equity 829,672,461 877,800,950 988,999,160 1,100,177,045 1,211,383,375 1,322,580,535 1,408,560,380 1,494,525,619 1,580,468,809 1,666,417,154 1,777,614,384 1,891,822,664
Total Liabilities and Equity 879,672,461 927,800,950 1,038,999,160 1,150,177,045 1,261,383,375 1,372,580,535 1,458,560,380 1,544,525,619 1,630,468,809 1,716,417,154 1,827,614,384 1,941,822,664
184

Balance Sheet
Year 2014
Assets
Current assets
Cash and cash equivalents 2,025,546,854 2,073,864,629 2,185,252,123 2,296,619,293 2,408,014,908 2,519,401,353 2,605,570,483 2,691,725,007 2,777,857,482 2,863,995,112 2,975,381,627 3,089,779,192
Inventories
Total current assets 2,025,546,854 2,073,864,629 2,185,252,123 2,296,619,293 2,408,014,908 2,519,401,353 2,605,570,483 2,691,725,007 2,777,857,482 2,863,995,112 2,975,381,627 3,089,779,192
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548 4,664,548
Other assets
Total assets 2,040,307,857 2,088,436,347 2,199,634,556 2,310,812,441 2,422,018,771 2,533,215,931 2,619,195,776 2,705,161,015 2,791,104,205 2,877,052,550 2,988,249,780 3,102,458,060
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 1,941,822,664 1,990,307,857 2,038,436,347 2,149,634,556 2,260,812,441 2,372,018,771 2,483,215,931 2,569,195,776 2,655,161,015 2,741,104,205 2,827,052,550 2,938,249,780
Net income 48,485,193 48,128,490 111,198,210 111,177,885 111,206,330 111,197,160 85,979,845 85,965,240 85,943,190 85,948,345 111,197,230 114,208,280
Total Equity 1,990,307,857 2,038,436,347 2,149,634,556 2,260,812,441 2,372,018,771 2,483,215,931 2,569,195,776 2,655,161,015 2,741,104,205 2,827,052,550 2,938,249,780 3,052,458,060
Total Liabilities and Equity 2,040,307,857 2,088,436,347 2,199,634,556 2,310,812,441 2,422,018,771 2,533,215,931 2,619,195,776 2,705,161,015 2,791,104,205 2,877,052,550 2,988,249,780 3,102,458,060
185

Balance Sheet
Year 2015
Assets
Current assets
Inventories
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Other assets
Total assets 3,347,406,697 3,541,903,220 3,829,559,104 4,117,195,013 4,404,859,366 4,692,514,200 4,942,947,978 5,193,370,652 5,443,425,628 5,693,823,196 5,981,478,030 6,266,631,413
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 3,102,458,060 3,297,406,697 3,491,903,220 3,779,559,104 4,067,195,013 4,354,859,366 4,642,514,200 4,892,947,978 5,143,370,652 5,393,425,628 5,643,823,196 5,931,478,030
Net income 194,948,637 194,496,523 287,655,883 287,635,909 287,664,353 287,654,833 250,433,779 250,422,673 250,054,976 250,397,568 287,654,833 285,153,383
Total Equity 3,297,406,697 3,491,903,220 3,779,559,104 4,067,195,013 4,354,859,366 4,642,514,200 4,892,947,978 5,143,370,652 5,393,425,628 5,643,823,196 5,931,478,030 6,216,631,413
186

Balance Sheet
Year 2016
Assets
Current assets
Inventories
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Other assets
Total assets 6,610,420,900 6,904,565,376 7,312,463,492 7,720,378,783 8,128,265,629 8,536,161,295 8,898,549,916 9,260,949,642 9,623,371,418 9,985,788,039 10,393,683,705 10,799,040,822
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 6,266,631,413 6,560,420,900 6,854,565,376 7,262,463,492 7,670,378,783 8,078,265,629 8,486,161,295 8,848,549,916 9,210,949,642 9,573,371,418 9,935,788,039 10,343,683,705
Net income 293,789,487 294,144,476 407,898,116 407,915,291 407,886,846 407,895,666 362,388,621 362,399,726 362,421,776 362,416,621 407,895,666 405,357,116
Total Equity 6,560,420,900 6,854,565,376 7,262,463,492 7,670,378,783 8,078,265,629 8,486,161,295 8,848,549,916 9,210,949,642 9,573,371,418 9,935,788,039 10,343,683,705 10,749,040,822
187

Balance Sheet
Year 2017
Assets
Current assets
Inventories
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Less accumulated depreciation - Equipment 1,404,738,197 - 14,007,090 - 14,196,375 - 14,385,660 - 14,574,945 - 14,764,230 - 14,953,515 - 15,142,800 - 15,332,085 - 15,521,370 - 15,710,655 - 15,899,940
Other assets
Total other assets 1,424,170,471 5,425,184 5,235,899 5,046,614 4,857,329 4,668,044 4,478,759 4,289,474 4,100,189 3,910,904 3,721,619 3,532,334
Total assets 11,202,806,334 11,556,216,857 12,046,193,741 12,536,153,449 13,026,141,603 13,516,120,936 13,951,479,315 14,386,826,588 14,822,151,812 15,257,473,980 15,747,453,314 16,235,246,197
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 10,799,040,822 11,152,806,334 11,506,216,857 11,996,193,741 12,486,153,449 12,976,141,603 13,466,120,936 13,901,479,315 14,336,826,588 14,772,151,812 15,207,473,980 15,697,453,314
Net income 353,765,512 353,410,523 489,976,883 489,959,709 489,988,153 489,979,333 435,358,379 435,347,273 435,325,223 435,322,168 489,979,333 487,792,883
Total Equity 11,152,806,334 11,506,216,857 11,996,193,741 12,486,153,449 12,976,141,603 13,466,120,936 13,901,479,315 14,336,826,588 14,772,151,812 15,207,473,980 15,697,453,314 16,185,246,197
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Balance Sheet
Year 2018
Assets
Current assets
Inventories
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Other assets
Total assets 16,710,905,385 17,136,209,583 17,722,440,106 18,308,651,005 18,894,890,349 19,481,119,822 20,002,994,876 20,524,851,824 21,046,686,723 21,568,526,776 22,154,756,250 22,739,429,273
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 16,235,246,197 16,660,905,385 17,086,209,583 17,672,440,106 18,258,651,005 18,844,890,349 19,431,119,822 19,952,994,876 20,474,851,824 20,996,686,723 21,518,526,776 22,104,756,250
Net income 425,659,187 425,304,198 586,230,523 586,210,899 586,239,343 586,229,473 521,875,054 521,856,948 521,834,898 521,840,054 586,229,473 584,673,023
Total Equity 16,660,905,385 17,086,209,583 17,672,440,106 18,258,651,005 18,844,890,349 19,431,119,822 19,952,994,876 20,474,851,824 20,996,686,723 21,518,526,776 22,104,756,250 22,689,429,273
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Balance Sheet
Year 2019
Assets
Current assets
Inventories
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Other assets
Total other assets 1,071,629 882,344 693,059 503,774 314,489 125,204 - 64,081 - 253,366 - 442,651 - 631,936 - 821,221 - 1,010,506
Total assets 23,202,289,089 23,614,788,472 24,213,792,181 24,812,776,264 25,411,788,792 26,010,791,450 26,535,208,489 27,059,607,422 27,583,984,305 28,108,366,343 28,707,369,001 29,307,807,710
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 22,739,429,273 23,152,289,089 23,564,788,472 24,163,792,181 24,762,776,264 25,361,788,792 25,960,791,450 26,485,208,489 27,009,607,422 27,533,984,305 28,058,366,343 28,657,369,001
Net income 412,859,816 412,499,383 599,003,708 598,984,083 599,012,528 599,002,658 524,417,038 524,398,933 524,376,883 524,382,038 599,002,658 600,438,708
Total Equity 23,152,289,089 23,564,788,472 24,163,792,181 24,762,776,264 25,361,788,792 25,960,791,450 26,485,208,489 27,009,607,422 27,533,984,305 28,058,366,343 28,657,369,001 29,257,807,710
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Balance Sheet
Year 2020
Assets
Current assets
Inventories
Other assets
Land 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000 1,170,000
Building 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000 7,880,000
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Machine 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
Equipment 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274 2,332,274
Other assets
Total other assets - 1,199,791 - 1,389,076 - 1,578,361 - 1,767,646 - 1,956,931 - 2,146,216 - 2,335,501 - 2,524,786 - 2,714,071 - 2,903,356 - 3,092,641 - 3,281,926
Total assets 29,897,157,631 30,436,147,119 31,295,011,897 32,153,857,050 33,012,730,648 33,871,594,377 34,602,527,620 35,333,439,258 36,064,328,846 36,795,223,590 37,654,087,318 38,513,914,596
Liabilities
Long-term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Equity
Capital 29,307,807,710 29,847,157,631 30,386,147,119 31,245,011,897 32,103,857,050 32,962,730,648 33,821,594,377 34,552,527,620 35,283,439,258 36,014,328,846 36,745,223,590 37,604,087,318
Net income 539,349,921 538,989,488 858,864,778 858,845,153 858,873,598 858,863,728 730,933,243 730,911,638 730,889,588 730,894,743 858,863,728 859,827,278
Total Equity 29,847,157,631 30,386,147,119 31,245,011,897 32,103,857,050 32,962,730,648 33,821,594,377 34,552,527,620 35,283,439,258 36,014,328,846 36,745,223,590 37,604,087,318 38,463,914,596
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Due to our business have to spend high cost of investment, but on the other hand,
there will be high return as well. Observe that we will pay back the money within 2 years.
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑃𝑟𝑜𝑗𝑒𝑐𝑡
Payback Period =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐴𝑛𝑛𝑢𝑎𝑙𝑜 𝑖𝑛𝑐𝑜𝑚𝑒
50,000,000
=
427,982,656.2
= 1.17 Years
Siam Rubber used 1.17 years to return the investment
5.6 Internal Rate of return

IRR = 25%
5.7 Net present Value

Initial cost = 50,000,000
Year 2011 = 45,720,251
Year 2012 = 48,189,257
Year 2013 = 576,320,662
Year 2014 = 1,053,882,394
Year 2015 = 234,188,024
Year 2016 = 3,286,408,916
Year 2017 = 222,833,024
Year 2018 = 3,281,423,287
Year 2019 = 301,450,287
Year 2020 = 6,810,793,448
NPV = 2,812,459,051.60
When we consider to the feasibility on the investment, the financial statement is one
thing that we used to considered. Siam Rubber has the proportion to increase the business and
return because we have the positive both NPV and IRR which should be accept the project.
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We have the net present value at nearly 3000,000,000 baths and also have the positive
internal rate of return at 25 percents which seem to be suited with the business.
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CHAPTER 6
194
Chapter 6
Risk Management
This chapter is relating to the risk, it may be happened in the company. If the
company has many risks, the profit will decrease. The company doesn’t control the risk but
we can manage the situation and risk.
6.1 External Risk

 Politic
The rubber is the special business. If you build the company, you must be accept from
the legal and validate the quality from government.
If the business don’t pass from the legal or don’t of the standard legal. The company
will close the business temporary for adjust and manage the company following the legal. So
the company without the income, decrease of amount of customer and effect to the amount of
selling decrease.
Reduce risk the company always adjust and check the quality of factory for protect
the problem if the company don’t have quality. Therefore we must expense the cost of
adjustment every year.
 Economic
The Para rubber is the product that important to develop the world’s economic. When
the economic is growth, the Para rubber is very important. Because of the variety of business
must be use the pare rubber to extend their own business.
If the economic will decrease, the core product is effect to the product that the
material in the industry. It’s the Para rubber. The market’s demand is decrease and the cost of
Para rubber is decrease too. In this situation, the company can’t control.
The solution that keep the product (make stock), waiting for the higher cost or has the
high demand and selling. When the company has new material, the companies don’t keep the
material for long term. The company must be continuing produce the product and keep the
product in the stock. This method, we must be expense the cost of maintain.
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 Social
In the business must be have the factory that the area is necessary to the build the
factory. However, the factory doesn’t avoid effecting the environment and community.
The risk of social is happening in the company that affects of the factory to the
lifestyle of community, even though sound, smell, water pollution and any problem.
How to manage the risk? The factory must be industry standard of Pollution Control
Department. Beginning building the factory, select the area that avoid near the society, the
structure and the public utility must be follow the industry standard. The factory must have
wastewater treatment before release the water to the river for protect the problem in the
future.
 Technology
Nowadays, growth of the technology is rapidly. In the factory must be have the
modern technology and have the standard for reduce the manufacturing cost, labor cost,
material and can produce the product by the high technology. So the products are high
standard.
About risk in the technology may be happen because we have the new technology.
Each company has demand of the variety of material. Our company produces the material to
industry only 3 types. So it’s not enough for the market’s demand.
Adjust the risk, the company ready to growth of the new technology by find the
capital buy the new machine. For the produce the new production, looking for new
technology that save the cost and get the more profit
 Competitor
Rubber plant business absolutely has many entrepreneurs. When we see the
opportunity to do business, other will see it also. Therefore, to be the one of rubber plant
business we have to force with any competitors for sure. From purchasing material to finding
the customers
We force with the risk since we start the business at first. Due to we are the first
mover so, to get the market share is the first risk.
For other risk is new competitor who are new comer in the business. They also have
better information than existing entrepreneur. Due to they can analyze any advantage or
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disadvantage from the exits industry to apply with their new company. So, it will gain our
market share also.
Our company force with these risks by making supplier network, to get the material to
process commonly. Then, we can produce and serve the customer need stability. At first this
method has expense but it will reduce later.
6.2 Internal Risk

 Operational
In production process, there is complex step to produce and every step need to be
sensitive. Then, the product will be good quality and match with demand in the market.
In each process there is the risk which is the product is not standard. If this risk is
happening, the business will lose the huge of money.
Due to our business concentrate on these risks so, every process are under control of
the expert, to make sure that the product will be on standard and good quality.
6.3 General Risk

 Risk from fire
Because of characteristic of rubber plant is easy to burn up so, to be on fire of industry
is the main risk.
The solution
o Install water tower. If the industry is in fire, this instrument will stop the fire to
burning any property.
o Fire insurance. When fire situation is happen, the insurance will pay back for
any losing property.
 Risk from logistic

In selling product the transportation is link to business directly.
o Damage from transportation
During transport the product from pace to place, it needs the vehicle to move on these
products. May be the damage will happen from vehicle or temperature.
o Late of transportation
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The accident is unexpected and it can happen every time. Then, if it happens we will
lose the customer.
From that risk, our business is finding the way to prevention. By employ the external
transporter who is the expert in the field. Moreover, they guarantee for any damage in
transportation to make sure the product will receive be on time. This method helps our
business to reduce the cost of maintaining and risk.
 Risk form robbery

Nowadays, unemployment rate is increasing and the number of fraud is increasing
too. To storing the product is most important thing to concern because the thieve can stole
our product.
The solution
o Install CCTV
o Employ the security guard.
 Risk from employee error

Employee is the most important part of business. For the risk of employee is about the
absent rate, illness.
We provide the welfare for every employee to support them. Especially the manager
is the main good example of other firm. Moreover, every year the employee has to training to
understand the objective of business and do their own duty best.
 Risk from supplier

Supplier is the component of business, if they cannot find the raw material to us.
Industry cannot run the business.
We make the connection of supplier with business by setting the middlemen to buy
the material from agriculturist. And then, collect and selling to our industry.
Other way, maintain some product in store. It will reduce the problem with lack of
product.
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6.4 Financial Risk

 Sale decrease
We forecast that the sale volume decrease. We divide 3 levels that sale volume
decrease 5%, 10% and 15%. We summarize each moths follow this.
 Interest increase
If it has many interest, we forecast at 3 levels. The interest increase at 5%, 10% and
15%. We summarize each month follows this.
 Cost/Expense increase
In the business, cost is very important. We can’t control the expense or cost.
Therefore, we estimate the cost increase at 3 levels that cost or expense increase at 5%, 10%,
and 15% and summary follow this.
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Sale
Sale Decrease 5%
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011 - - 4,906,750.00 4,906,750.00 4,906,750.00 4,906,750.00 4,741,450.00 4,741,450.00 4,741,450.00 4,741,450.00 4,906,750.00 4,906,750.00
2012 8,977,500.00 8,977,500.00 9,405,000.00 9,405,000.00 9,405,000.00 9,405,000.00 9,234,000.00 9,234,000.00 9,234,000.00 9,234,000.00 9,405,000.00 9,405,000.00
2013 61,750,000.00 61,750,000.00 66,167,500.00 66,167,500.00 66,167,500.00 66,167,500.00 64,400,500.00 64,400,500.00 64,400,500.00 64,400,500.00 66,167,500.00 66,167,500.00
2014 63,650,000.00 63,650,000.00 79,610,000.00 79,610,000.00 79,610,000.00 79,610,000.00 73,226,000.00 73,226,000.00 73,226,000.00 73,226,000.00 79,610,000.00 79,610,000.00
2015 262,200,000.00 262,200,000.00 285,712,500.00 285,712,500.00 285,712,500.00 285,712,500.00 276,307,500.00 276,307,500.00 276,307,500.00 276,307,500.00 285,712,500.00 285,712,500.00
2016 398,050,000.00 398,050,000.00 425,410,000.00 425,410,000.00 425,410,000.00 425,410,000.00 414,466,000.00 414,466,000.00 414,466,000.00 414,466,000.00 425,410,000.00 425,410,000.00
2017 477,375,000.00 477,375,000.00 509,295,000.00 509,295,000.00 509,295,000.00 509,295,000.00 496,527,000.00 496,527,000.00 496,527,000.00 496,527,000.00 509,295,000.00 509,295,000.00
2018 574,750,000.00 574,750,000.00 612,370,000.00 612,370,000.00 612,370,000.00 612,370,000.00 597,322,000.00 597,322,000.00 597,322,000.00 597,322,000.00 612,370,000.00 612,370,000.00
2019 557,175,000.00 557,175,000.00 600,780,000.00 600,780,000.00 600,780,000.00 600,780,000.00 583,338,000.00 583,338,000.00 583,338,000.00 583,338,000.00 600,780,000.00 600,780,000.00
2020 728,650,000.00 728,650,000.00 803,462,500.00 803,462,500.00 803,462,500.00 803,462,500.00 773,537,500.00 773,537,500.00 773,537,500.00 773,537,500.00 803,462,500.00 803,462,500.00
Decrease 10%
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2011 - - 4,906,750.00 4,906,750.00 4,906,750.00 4,906,750.00 4,741,450.00 4,741,450.00 4,741,450.00 4,741,450.00 4,906,750.00 4,906,750.00 48,408,311.00
2012 8,977,500.00 8,977,500.00 9,405,000.00 9,405,000.00 9,405,000.00 9,405,000.00 9,234,000.00 9,234,000.00 9,234,000.00 9,234,000.00 9,405,000.00 9,405,000.00 111,323,012.00
2013 61,750,000.00 61,750,000.00 66,167,500.00 66,167,500.00 66,167,500.00 66,167,500.00 64,400,500.00 64,400,500.00 64,400,500.00 64,400,500.00 66,167,500.00 66,167,500.00 778,109,013.00
2014 63,650,000.00 63,650,000.00 79,610,000.00 79,610,000.00 79,610,000.00 79,610,000.00 73,226,000.00 73,226,000.00 73,226,000.00 73,226,000.00 79,610,000.00 79,610,000.00 897,866,014.00
2015 262,200,000.00 262,200,000.00 285,712,500.00 285,712,500.00 285,712,500.00 285,712,500.00 276,307,500.00 276,307,500.00 276,307,500.00 276,307,500.00 285,712,500.00 285,712,500.00 3,343,907,015.00
2016 398,050,000.00 398,050,000.00 425,410,000.00 425,410,000.00 425,410,000.00 425,410,000.00 414,466,000.00 414,466,000.00 414,466,000.00 414,466,000.00 425,410,000.00 425,410,000.00 5,006,426,016.00
2017 477,375,000.00 477,375,000.00 509,295,000.00 509,295,000.00 509,295,000.00 509,295,000.00 496,527,000.00 496,527,000.00 496,527,000.00 496,527,000.00 509,295,000.00 509,295,000.00 5,996,630,017.00
2018 574,750,000.00 574,750,000.00 612,370,000.00 612,370,000.00 612,370,000.00 612,370,000.00 597,322,000.00 597,322,000.00 597,322,000.00 597,322,000.00 612,370,000.00 612,370,000.00 7,213,010,018.00
2019 557,175,000.00 557,175,000.00 600,780,000.00 600,780,000.00 600,780,000.00 600,780,000.00 583,338,000.00 583,338,000.00 583,338,000.00 583,338,000.00 600,780,000.00 600,780,000.00 7,052,384,019.00
2020 728,650,000.00 728,650,000.00 803,462,500.00 803,462,500.00 803,462,500.00 803,462,500.00 773,537,500.00 773,537,500.00 773,537,500.00 773,537,500.00 803,462,500.00 803,462,500.00 9,372,227,020.00
Decrease 15%
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2011 - - 4,390,250.00 4,390,250.00 4,390,250.00 4,390,250.00 4,242,350.00 4,242,350.00 4,242,350.00 4,242,350.00 4,390,250.00 4,390,250.00 43,312,911.00
2012 8,032,500.00 8,032,500.00 8,415,000.00 8,415,000.00 8,415,000.00 8,415,000.00 8,262,000.00 8,262,000.00 8,262,000.00 8,262,000.00 8,415,000.00 8,415,000.00 99,605,012.00
2013 55,250,000.00 55,250,000.00 59,202,500.00 59,202,500.00 59,202,500.00 59,202,500.00 57,621,500.00 57,621,500.00 57,621,500.00 57,621,500.00 59,202,500.00 59,202,500.00 696,203,013.00
2014 56,950,000.00 56,950,000.00 71,230,000.00 71,230,000.00 71,230,000.00 71,230,000.00 65,518,000.00 65,518,000.00 65,518,000.00 65,518,000.00 71,230,000.00 71,230,000.00 803,354,014.00
2015 234,600,000.00 234,600,000.00 255,637,500.00 255,637,500.00 255,637,500.00 255,637,500.00 247,222,500.00 247,222,500.00 247,222,500.00 247,222,500.00 255,637,500.00 255,637,500.00 2,991,917,015.00
2016 356,150,000.00 356,150,000.00 380,630,000.00 380,630,000.00 380,630,000.00 380,630,000.00 370,838,000.00 370,838,000.00 370,838,000.00 370,838,000.00 380,630,000.00 380,630,000.00 4,479,434,016.00
2017 427,125,000.00 427,125,000.00 455,685,000.00 455,685,000.00 455,685,000.00 455,685,000.00 444,261,000.00 444,261,000.00 444,261,000.00 444,261,000.00 455,685,000.00 455,685,000.00 5,365,406,017.00
2018 514,250,000.00 514,250,000.00 547,910,000.00 547,910,000.00 547,910,000.00 547,910,000.00 534,446,000.00 534,446,000.00 534,446,000.00 534,446,000.00 547,910,000.00 547,910,000.00 6,453,746,018.00
2019 498,525,000.00 498,525,000.00 537,540,000.00 537,540,000.00 537,540,000.00 537,540,000.00 521,934,000.00 521,934,000.00 521,934,000.00 521,934,000.00 537,540,000.00 537,540,000.00 6,310,028,019.00
2020 651,950,000.00 651,950,000.00 718,887,500.00 718,887,500.00 718,887,500.00 718,887,500.00 692,112,500.00 692,112,500.00 692,112,500.00 692,112,500.00 718,887,500.00 718,887,500.00 8,385,677,020.00
200
Interest
Year Interest expense Interest increase 5% Interest increase 10% Interest increase 15%
2011 4,500,000 4,500,000 4,500,000 4,500,000
2012 4,500,000 4,500,000 4,500,000 4,500,000
2013 4,275,000 4,275,000 4,275,000 4,275,000
2014 4,050,000 4,050,000 4,050,000 4,050,000
2015 3,825,000 3,825,000 3,825,000 3,825,000
2016 3,375,000 3,375,000 3,375,000 3,375,000
2017 3,375,000 3,375,000 3,375,000 3,375,000
2018 2,475,000 2,475,000 2,475,000 2,475,000
2019 1,800,000 1,800,000 1,800,000 1,800,000
2020 1,125,000 1,125,000 1,125,000 1,125,000
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Cost/Expense
Year Total cost Cost increase 5% Cost increase 10% Cost increase 15%
2011 36,072,245 36,072,245 36,072,245 36,072,245
2012 104,650,995 104,650,995 104,650,995 104,650,995
2013 181,916,595 181,916,595 181,916,595 181,916,595
2014 641,501,995 641,501,995 641,501,995 641,501,995
2015 928,919,076 928,919,076 928,919,076 928,919,076
2016 1,133,522,012 1,133,522,012 1,133,522,012 1,133,522,012
2017 1,382,339,108 1,382,339,108 1,382,339,108 1,382,339,108
2018 1,627,621,537 1,627,621,537 1,627,621,537 1,627,621,537
2019 1,888,409,195 1,888,409,195 1,888,409,195 1,888,409,195
2020 3,214,652,695 3,214,652,695 3,214,652,695 3,214,652,695
202
Conclusion in Risk Management

Risk is the opportunities that Siam Rubber Company may get loss income or the
business cannot operate successful to target planning. Our company’s risk can divided into 4
parts included with external, internal, general, and also financial risk. For the internal risk, we
have to face with legal and validate. If the business don’t pass from the legal or don’t of the
standard legal. The company will close the business temporary for adjust and manage the
company following the legal. If the economic will decrease, the core product is effect to the
product that the material in the industry. It’s the Para rubber. The market’s demand is
decrease and the cost of Para rubber is decrease too. In this situation, the company can’t
control. The risk of social is happening in the company that affects of the factory to the
lifestyle of community, even though sound, smell, water pollution and any problem. About
risk in the technology may be happen because we have the new technology. Each company
has demand of the variety of material. For other risk is new competitor who are new comer in
the business. They also have better information than existing entrepreneur. Due to they can
analyze any advantage or disadvantage from the exits industry to apply with their new
company. In addition, we will focus in operation for the internal risk because there is
complex step to produce and every step need to be sensitive. The general risk we have to
consider about fire, logistic, robbery, employee error, and also suppliers. Last but not least,
we also emphasize on the financial risk by created the scenario for handle with financial
statement error.
203
CHAPTER 7
204
Chapter 7
Summary
7.1 Summary Project of Feasibility Study

Para rubber is the significant agriculture product in Thailand. It has rather high market
potential as local demand and demand for export quit high. A beginner of rubber planting
importation is Chaophraya Ratsadanupradit who first plant 32 of Para rubber in Thailand
during of 1899 to 1901. Para rubber can be growing in all area of Thailand. Also, the industry
of Para rubber will increase in all area of Thailand as well especially in the south part, but
there are a few businesses to support high demand of Para rubber in the new area where is
north of Thailand. Para rubber factory is one that can support the production from
agriculturist because it is the place where receives the products from Para rubber such as
concentrate latex and air dried sheet, can process the better qualities of Para rubber such as
ribbed smoked sheet (RSS), block rubber, and crepe rubber as well. In addition, the business
about Para rubber in Thailand can be certainly growing in the future because the demand for
exporting Para rubber of Thailand is quite high and also the people used Para rubber in daily
life. In the forthcoming of year 2011, it is forecasted to have a rather positive trend of the
world economic recovery. 70% of natural rubbers product in the world are from Thailand,
Indonesia and Malaysia. Especially, Thailand will focus on producing smoked rubber sheet
and latex which can produce maximum for No.3. Thailand is the rubber producer and
exporter. Most of rubber would be transmuted to be high value. It shows that transmuted
product could be high price more than simple rubber so we should develop industry to
support the demand of marketing. By build up the transmutation industry, it could increase
the price value of rubber for get more profit. Thus, industrial transmutation is the business
that makes money quite well for entrepreneur.
Siam Rubber company limited is one company where located Mae Jan district,
Chiangrai province, support the local demand of Para rubber product, and receive Para
rubber’s product from agriculturist who produce the Para rubber in the north of Thailand.
The product of our company, we provided blocking rubber, ribbed smoked sheet no.1-5, and
also cutting rubber to the customer. We have the vision to be the leader of rubber integrated
production, processing and distribution in the north of Thailand. The business strategy of
company can divided into three levels included cooperation level, business level, and
205
functional level. In the cooperation level, we used diversification growth strategy is to expand
into new businesses related to the original product. Also business level, we are a big business
where has large capacity and cover all forms of products. It is also the first operator to open
the market in the north of Thailand, also highly advantage more than the other companies that
have similar products. Therefore, we have focus on price by using cost leadership strategy to
be the leading of price because the most of customers are industrial company and purchase a
lot of product per time to process further. We have advantage more than the competitors
which may have higher costs. We can sell the product in low price in order to attract
customers and suppliers relationship. About functional level, the company can divided into
four functional level comprise marketing, financing, human recourse, and operation
collaborate together.
About the marketing, the environment that can effect to Siam Rubber is government
because they have influenced on the base price of Para Rubber product, the economics about
gross domestic product can indicate the cost of living and richness of local people, Thai
society increasing to extend growing Para Rubber expecially in the north of Thailand, and
also we use the new technology in production for make the competitive advantage if compare
with others. In addition, Siam Rubber have the big 5 companies who are the main competitor
included with Thai Yok Rubber Thai Hue Rubber Group, Tavorn Rubber Group, Von Bundit
Company, and Sri Trang Group. All of this except Thai Yok Company has the higher
production than us because they have some partnership or branches that make them have the
high capacity to producing. But, the positioning of Siam Rubber is to be the leader of Para
rubber industry in the north of Thailand. Thus, we have to focus in Thai Yok because the
capacity in production of Thai Yok is lower than us. Also, after full capacity of harvest the
product from Para rubber, we estimate that there will be increasing of Para rubber factory in
the north of Thailand absolutely. We have to handle with them by make the trust and quality
of product and service to be the leader in the north of Thailand.
Siam Rubber Company has only the intermediary who is the supplier of our company.
The process that Siam Rubber has to form the group of intermediary is primary unwritten
contact because if we sign the contact with the group of intermediary, it can bring about to
bind by a contract itself. The key methods that make the Siam Rubber gain more intermediary
in the north of Thailand is called the telephone to tell the price of rubber in each day and also
we may use the promotion for attract the intermediary such as give higher price just one or
two percents from the base price of rubber. We will sale product to the customers in the east
206
part of Thailand expecially Rayong Branch of Thai Hue Company because they have high
demand in buying Para rubber product and willing to export their product through Laem
Chabang Port to China. Beside we will sale the Para rubber product to some company both
domastic and international as raw material. Moreover, Siam Rubber will emphasize on the
group's suppliers who are the group of intermediary as our target market by received the
concentrate latex which base on the price of rubber market. Also, we estimate sale forecase
for 10 year by increasing the sale 22.9 percent in the first year and will be increase more after
that.
For the technical feasibility study, we start with cost of register amount 294,600 baht
and pay the money for start up the business included with equipment, machine, land, and so
on, have to spend the administrative cost such as electricity expense, salary, and stationary. It
can possible the located the factory in Chiangrai because easily to find water in production
and widely area. We have planed the layout of factory that can suit with area. Also, we
manage the area where divide in to each station for easy and comfortable to process until start
to the end and consider to the social responsibility by create waste water station to eliminate
the waste water before launch it to the water resource. In addition, w have contacted for
transport with Pa Yak Transport Company Limited because this company can be trust and
also transport our product in high volume every day. The cost that we use in transportation is
around 11,000 baht per times per truck that can increase or decrease depending on the price
of fuel. Siam Rubber Company limited has the organization structure which separate into 4
departments comprises with human resource, customer relation, production and operation,
and financial department. Also, we outsource some employees from other company to reduce
the cost including with transportation, security guard, and the technician for maintain the
equipment. We emphasize in the production and operation department because most of the
employees work in this department. Our company has the employees around 74 people
included outsourcing. In addition, each department has to collaborate together and have the
authority follow the hierarchy step that the highest authority is the president and the manager
of each department as following. We have training and orientation the employees before
work and also pay the salary and other compensation to them by based on the minimum wage
paid of Chiangrai province. Also, the working time of Siam Rubber Company will begin at
8.00 A.M. - 16.00 P.M. and all of employees except outsourcing have to dress the same
uniform. When we consider to the feasibility on the investment, the financial statement is one
thing that we used to considered. Siam Rubber has the proportion to increase the business and
207
return because we have the positive both NPV and IRR which should be accept the project.
We have the net present value at nearly 3000,000,000 baths and also have the positive
internal rate of return at 25 percents which seem to be suited with the business.
Risk is the opportunities that Siam Rubber Company may get loss income or the
business cannot operate successful to target planning. Our company’s risk can divided into 4
parts included with external, internal, general, and also financial risk. For the internal risk, we
have to face with legal and validate. If the business don’t pass from the legal or don’t of the
standard legal. The company will close the business temporary for adjust and manage the
company following the legal. If the economic will decrease, the core product is effect to the
product that the material in the industry. It’s the Para rubber. The market’s demand is
decrease and the cost of Para rubber is decrease too. In this situation, the company can’t
control. The risk of social is happening in the company that affects of the factory to the
lifestyle of community, even though sound, smell, water pollution and any problem. About
risk in the technology may be happen because we have the new technology. Each company
has demand of the variety of material. For other risk is new competitor who are new comer in
the business. They also have better information than existing entrepreneur. Due to they can
analyze any advantage or disadvantage from the exits industry to apply with their new
company. In addition, we will focus in operation for the internal risk because there is
complex step to produce and every step need to be sensitive. The general risk we have to
consider about fire, logistic, robbery, employee error, and also suppliers. Last but not least,
we also emphasize on the financial risk by created the scenario for handle with financial
statement error. To summary, Siam Rubber Company has a feasibility to invest in Chiangrai
market, because in this market is interesting that can do the business which it can gain profit
and successful.
208
Reference
เสื อไฟ. "ทาไม ยางพารา ถึงมาปลูกที่ภาคเหนือ มีคาตอบ!!!" Chiangraifocus.com. 1 Dec. 2010.
Web. 1 Dec. 2010.

<http://www.chiangraifocus.com/forums/index.php?action=printpage;topic=22021.0>
องค์การสวนยาง. "องค์การสวนยาง : ประวัติยางพารา." Reothai.co.th. 18 Nov. 2010. Web. 18 Nov. 2010.
<http://www.reothai.co.th/Para1.htm>.
กิง่ แก้ว อริ ยเดช. "นโยบายการพัฒนาอุตสาหกรรมยางในประเทศ." 22 Nov. 2010. Web. 25 Nov. 2010.
<herb.tisi.go.th/central/e-learning/talk/no_7/policy.ppt>.
ฝ่ ายพัฒนาเวบสถาบันวิจยั ยาง กรมวิชาการเกษตร. "สถิติยางไทย." Rubberthai.com. 10 Nov. 2010. Web. 11
Nov. 2010. <http://www.rubberthai.com>.
"สถานการณ์รายเดือน." Rubberthai.com. 30 Nov. 2010. Web. 1 Dec. 2010.

<http://www.rubberthai.com/rubberthai/index2.php?option=com_content&view=artic
le&id=73&Itemid=33>.
AFET - Agricultural Futures Exchange of Thailand, The. 1 Dec. 2010. Web. 1 Dec.
2010. <http://www.afet.or.th/v081/thai/#>.
The Association of Natural Rubber Producing Countries (ANRPC). "Statistical Profile of

Rubber Industry in Thailand." Welcome :: The Association of Natural Rubber
Producing Countries (ANRPC). Anrpc.org, 20 Nov. 2010. Web. 20 Nov. 2010.
<http://www.anrpc.org/>.
FERNANDES SOUSA - ASSET MANAGEMENT. "Thailand GDP Growth Rate."

TradingEconomics.com - Free Indicators for 231 Countries. 28 Nov. 2010. Web. 28
Nov. 2010. <http://www.tradingeconomics.com/Economics/GDP-
Growth.aspx?Symbol=THB>.
"The Largest Natural Rubber Manufacturer in Thailand." Von Bundit Company Limited.
1 Dec. 2010. Web. 1 Dec. 2010. <http://www.vonbundit.com/index.htm>.
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League Management Committee (LMC). "ยางพาราและผลิตภัณฑ์ยาง." Thaifta.com. 19 Nov.

2010. Web. 19 Nov. 2010. <www.thaifta.com/thaifta/Portals/0/File/ascn_rubber.doc>.
"Rubber Natural Rubber Thai Rubber Latex Str Rss Trading Rubber in Thailand -
Thaihua.com "green Peak"" Thaihua.com. 1 Dec. 2010. Web. 1 Dec. 2010.
<http://www.thaihua.com/v4/en/index.php>.
"Sri Trang: Thailand's Rubber Company." Sri Trang Agro-Industry Plc. 1 Dec. 2010.
Web. 1 Dec. 2010. <http://www.sritranggroup.com/en/page/index.php>.
t avorn rubber group. 1 Dec. 2010. Web. 1 Dec. 2010.

<http://www.tvrrubber.com/index.php>.
The Thai Rubber Association. ": THE THAI RUBBER ASSOCIATION." Thainr.com.
18 Nov. 2010. Web. 18 Nov. 2010. <http://www.thainr.com/en/index.php>.
"ThailandPart4." Fairfield University | Faculty Web Server. 28 Nov. 2010. Web. 28 Nov.
2010.
<http://www.faculty.fairfield.edu/faculty/hodgson/Courses/so191/Projects2010/Steve
_Costello/Part4Thailand.html#Prod>.
i
Appendix
Company Limited
Is that kind of company which is formed with a capital divided into equal shares, the
liability of the shareholders being limited to the amount unpaid on the shares respectively
held by them.
Establishment of Company Limited

To establish the company limited, shall process according to the following:
1. Must have at least 3 persons signing together in order to prepare Memorandum and then
register. Upon receiving the amount of shares, the director must register as the company
within 3 months from the date of company’s meeting to establish the company.
The promoters must have the following qualifications:

(1) Be ordinary person, not juristic person
(2) Be 12 years old or more
(3) Must reserve to buy at least 1 share
Information used to register the Memorandum

(1) Company’s name (the same as the name reserved)
(2) Location of head office (located at which province)
(3) Objective of the company
(4) Registered capital must be divided into each share with the same value (share’s
value must be at least 5 Baht)
(5) Name, address, age, occupation and number of shares that person who start up the
company reserve to buy the shares)
(6) Name, address, age of 2 witnesses
2. When the Memorandum has been registered, shall perform the following:
(1). Every promoter manages to reserve and buy all the shares
(2). When all the shares are reserved, the promoters must with out delay hold a
general meeting of subscribers which shall be called the statutory meeting.
ii
3. Meeting agenda
(1) The adoption of the regulations of the company, if any
(2) The ratification of any contracts entered into and any expenses incurred by the
promoters in promoting the company
(3) The fixing of the amount, if any, to be paid to the promoters
(4) The fixing of the number of preference shares, if any, to be issued, and the nature
and extent of the preferential rights accruing to them
(5) The fixing of the number of ordinary shares or preference shares to be allotted as
fully or partly paid-up otherwise than in money, if any, and the amount up to while they shall
be considered as paid-up
The description of the services or property in return for which such ordinary shares or
preference shares shall be allotted as paid-up shall be expressly laid down before the meeting
(6) The appointment of the first directors and auditors and the fixing of their
respective powers
No resolutions of the statutory meeting are valid unless passed by a majority
including at least one half of the total number of subscribers entitled to vote, and representing
at least one half of the total number of shares to such subscribers.
4. The promoters shall over the business to the directors.
5. The directors shall the reopen cause the promoters and subscribers to pay forth with
upon each share payable in money such amount, not less than twenty-five percent of the
share's value .
6. When the collection of share’s price is complete, the authorized director shall prepare
the request for the registration of company’s establishment and submit to the registrar.
Regarding the submission for registration, the authorized director shall sign the name on
the request and must submit to register within 3 months from the date of company statutory
meeting. If not registered within the specified period, the company statutory meeting shall be
void and if would like to register to establish the company, shall arrange the meeting for
persons who reserve to buy the shares again.
iii
Regarding the company establishment, if can perform every step as follows within the
same day that the promoters prepare the Memorandum, and the director can request to
register the Memorandum and register the company within the same day.
(1) Shall have the persons reserve to buy all the shares that the company can be
registered
(2) Arrange the meeting to establish the company to consider various affairs according
to the Civil and Commercial Code, section 1108, and all the persons who start up the
company and all the persons who reserve to buy the shares shall attend the meeting, and all of
them shall agree in the affairs in the meeting.
(3) Persons who start up the company assign all the affairs to the director.
(4) The director call the person who reserves to buy the shares to pay the shares
according to the Civil and Commercial Code, section 1110, section 2 and such share’s price
has already been paid.
Registration
The company limited’s registration shall be divided into 2 steps as follows:
1. Registering the Memorandum
2. Registering the company limited’s establishment
The registration of the modification / change or liquidation of the company limited
In case that the company limited agrees to modify or change any registered transactions
or the shareholders would like to liquidate the business, shall request for the registration of
the modification / change of such transactions or registration of the company’s liquidation at
the company and partnership registration office that the head office of the company is located
on.
The registration to establish and modify any transactions shall be performed according to the
method and criteria specified by the law and the government’s rules.
Registered Transaction that the Company has to register to Modify or Change

1. The modification or change of memorandum before the company’s establishment
2. Extraordinary resolution to
(1) Increase capital
(2) Decrease capital
(3) Merge the company
iv
3. Company’s merger
4. The modification or change of memorandum of association after the company’s
establishment
5. Capital increase
6. Capital decrease
7. Regulations’ modification
8. Director
9. Number or name of authorized directors
10. Location of head office and / or branches
11. Company’s seal
12. Other transactions that should be publicized
Place for Registration (the same as partnership)

Registration Procedure
1.Submit in person can perform according to the following :
(1) In case of registering for the establishment or changing the company’s name, the
persons who start up the company or company’s director shall request for verifying and
reserving the company’s name to confide that such name is not duplicated or similar to other
names pervious registered. Upon reserving the name, shall request for the registration of
memorandum of association within 30 days by reserving the name in person or via internet at
www.dbd.go.th .
(2) Purchase the request and form from the Department of Business Development or
any of 7 business development office or provincial business development office or download
from internet from www.dbd.go.th .
(3) Prepare the request for registration and other attachments to the registrar for
consideration.
(4) Pay the fee according to the officer’s order
(5) If aiming to issue the certificate of registered transactions, shall submit the request
and pay the fee to the officers.
(6) Receive the certificate of registration.
2.Steps for registering partnership and company via internet (see the steps in partnership)
v
Criteria of Signing the Signature on the Request for Registration

(1) The signature in the request and the attachments, the person shall sign by him /
herself.
(2) The signature in the request, the person shall sign in front of the registrar and
demonstrate the ID card to the registrar for verification.
In case that the person cannot sign the name in front of the registrar, the person who
request shall sign the name in front of the following person :
2.1 In case of signing in the country
(1) Administration Officer or Senior Police in the area of the person who requests
(2) Member of Thai BAR or
(3) Other persons as notified by the central registrar are
-Certified Public Account
-Committee member or officer of the Thai chamber of commerce or
provincial chamber of commerce who can certify the signature of persons who request for the
registration of partnership / company with the head office located in the province that the
Chamber is located according to the notification of the Central Partnership Registration
Office.
2.2 In case of signing in foreign countries
(1) Authorized officer of the Thai embassy or consulate, or head of the office under
the Minister of Commerce responsible for the operations in any country or other officers
authorized to perform on behalf of such abovementioned person
(2) Person who can completely certify according to the law of that country and
(3) 2 Reliable persons who can certify in front of the registrar that the signature is
such person’s signature.
Duties of Company
(1) The company limited must prepare the financial statement once a month in every 12
months and at least one auditor shall audit to propose to the ordinary shareholder’s meeting to
approve the financial statement within 4 months from the closing date, and submit the
financial statement to the business information service office, department of business
development, or any provincial business development office within 1 month from the date of
financial statement’s approval although such businesses have not yet been started or have not
ceased temporarily; otherwise, they shall have the fine penalty of no more than 50,000 Baht.
vi
(2) The director shall prepare the copy of list of all shareholders’ names that are holding
the share at the time of the annual shareholders’ meeting and the list of persons who are not
the shareholders from the date of the last shareholders’ meeting and submit to the department
of business development or any provincial business development office within 14 days from
the date of the meeting; otherwise, they shall have the fine penalty of no more than 10,000
Baht.
(3) Must arrange the annual shareholders’ meeting within 6 months from the juristic
person’s registration date, and arrange the next meeting of at least one time for every 12
months; otherwise, they shall have the fine penalty of no more than 20,000 Baht.
The invitation for the shareholders’ meeting shall be advertised on the local newspaper for at
least one time of at least 7 days before the meeting date, and shall send via reply mail to
every shareholder named in the company’s registration for at least 7 days before the meeting
date, except the invitation for the shareholders’ meeting to vote for the extraordinary
resolution shall be sent for at least 14 days before the meeting date.
(4) Must prepare share certificate to the company’s shareholders; otherwise, they shall
have the fine penalty of no more than 10,000 Baht.
(5) Must prepare the book of shareholders’ registration of the company; otherwise, they
shall have the fine penalty of no more than 20,000 Baht.
(6) Any companies that relocate the location of head office must request for the
registration to the registrar; otherwise, they shall have the fine penalty of no more than
20,000 Baht.
In case that the juristic person does not submit the yearly financial statement as specified
by the law, such juristic person has offense, and the managing director or authorized director
on behalf of the juristic person shall also have the offense too.
Businesses that the Law specifies the period of time of submitting the registration
1) Request for registering the company’s establishment shall be submitted within 3
months from the date of company’s establishment.
2) Request for registering the appointment of new directors or the resignation of directors
shall be submitted within 14 days from the date of appointment or date of resignation
vii
3) Request for registering the extraordinary resolution of capital increase or capital

decrease of the company limited or the company’s merger shall be submitted within 14 days
from the extraordinary resolution date
4) Request for registering the new regulation or modification of the company limited’s
regulation must be submitted with 14 days from the extraordinary resolution date
5) Request for registering the company’s merger shall be submitted within 14 days from
the date of merger
6) Request for registering the company’s liquidation shall be submitted within 14 days
from the liquidation date
7) Request for registering the change of liquidator shall be submitted within 14 days from
the date of change
8) Request for registering the modification of liquidator’s authority shall be submitted
within 14 days from the date that the meeting has the resolution or the court has the decision
9) Request for registering the completeness of the company’s liquidation shall be
submitted within 14 days from the date that the meeting has the resolution
10) The submission of the report of partnership’s liquidation shall be submitted every 3
months and the liquidator shall submit the report within 14 days from the date that the 3-
month period expires.
Fee Rate for Registering Company Limited
Registration Company Limited Baht
1. Registering the memorandum of association 500.-
1.1 Registered capital of no more than 1,000,000 Baht 50.-
1.2 Every 100,000 Baht of the increase of registered capital

50.-
(fraction of 100,000 Baht shall be counted as 100,000 Baht)
1.3 Registered capital of more than 50,000,000 Baht 25,000.-
2. Register for company limited’s establishment 5,000.-
2.1 Registered capital of no more than 1,000,000 Baht 500.-
2.2 Every 100,000 Baht of the increase of registered capital

500.-
(fraction of 100,000 Baht shall be counted as 100,000 Baht)
2.3 Registered capital of more than 50,000,000 Baht 250,000.-

viii
3. Registering the company’s merger 5,000.-
4. Registering the medication 250,000.-
4.1 Registering the extraordinary resolution

400.-
(capital increase / capital decrease / company’s merger)
4.2 Registering the capital increase

500.-
(calculate according to every 100,000 Baht of the increase)
(Increase for more than 50,000,000 Baht) 250,000.-
4.3 Registering the capital decrease 400.-
4.4 Registering the modification of every clause of the

memorandum 400.-
of association
4.5 Registering the modification of every clause of the regulation 400.-
4.6 Registering for new directors per person 400.-
4.7 Registering for partners’ resignation (no limit) 400.-
4.8 Registering the modification of directors’ authority 400.-
4.9 Registering the change of location of head office and / or

400.-
branches
4.10 Registering the modification of seal 400.-
4.11 Register other transactions that should be publicized 400.-
5. Registering the company’s liquidation 400.-
6. Registering the change of liquidators 400.-
7. Registering the modification of liquidator’s power and authority 400.-
8. Registering the modification of liquidation office 400.-
9. Registering the completeness of liquidation 400.-

ix

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a

1.1 Background and Significance of the Project ................................................................. 2

1.2 Project Objective ......................................................................................................... 3

1.3 Benefit of Project ......................................................................................................... 3

1.4 Activities / Time Frame ............................................................................................... 4

Industry Profile ..................................................................................................................... 6

2.1 Nature of Industry ........................................................................................................ 6

2.2 Situation of Industry .................................................................................................. 10

2.3 Product ...................................................................................................................... 16

2.4 Vision ........................................................................................................................ 19

2.5 Mission ...................................................................................................................... 19

2.6 Business strategy ....................................................................................................... 19

Market Analysis .................................................................................................................. 22

3.1 PEST Analysis ........................................................................................................... 22

3.2 Competition Analysis................................................................................................. 28

3.3 Competitive Analysis ................................................................................................. 40

3.4 Supplier Analysis ....................................................................................................... 41

3.5 Customer analysis ...................................................................................................... 42

3.6 STP Analysis ............................................................................................................. 45

3.7 Marketing Mix Strategy ............................................................................................. 47

3.8) Sales Forecast/Profit Estimation ............................................................................... 60

3.9 Price Forecasting ....................................................................................................... 69

3.10 Marketing Expense .................................................................................................. 74

Conclusion in Marketing Feasibility .................................................................................... 81

Technical Feasibility Study ................................................................................................. 83

4.1 Cost of register .......................................................................................................... 83

4.2 Location .................................................................................................................. 100

4.3 Operating analysis ................................................................................................... 111

4.4 Production Process................................................................................................... 114

4.5 Wastewater treatment process .................................................................................. 122

4.6 Logistic.................................................................................................................... 125

4.7 Management Analysis .............................................................................................. 126

4.8 Employee Salary ...................................................................................................... 138

4.9 Stationary Expense .................................................................................................. 138

4.10 Electricity Expense/month ..................................................................................... 139

4.11 TOT Internet and Telephone expense/Month ......................................................... 141

4.12 Car Insurance ......................................................................................................... 141

4.13 Fire Insurance ........................................................................................................ 142

4.14 Employee Motivation ............................................................................................. 142

4.15 Employee Training ................................................................................................ 143

4.16 Staff Shirt .............................................................................................................. 144

Administrative Expense .................................................................................................... 145

Product and Operation Cost ............................................................................................... 150

Conclusion in Technical Feasibility ................................................................................... 152

Chapter 5 .......................................................................................................................... 154

Financial Analysis ............................................................................................................. 154

5.1 Cost of investment ................................................................................................... 154

5.2 Depreciation ............................................................................................................ 155

5.3 Income statement ..................................................................................................... 159

5.4 Statement of cash flow ............................................................................................. 160

5.5 Balance Sheet .......................................................................................................... 160

5.6 Internal Rate of return .............................................................................................. 191

5.7 Net present Value .................................................................................................... 191

Chapter 6 .......................................................................................................................... 194

Risk Management ............................................................................................................. 194

6.1 External Risk ........................................................................................................... 194

6.2 Internal Risk ............................................................................................................ 196

6.3 General Risk ............................................................................................................ 196

6.4 Financial Risk .......................................................................................................... 198

Conclusion in Risk Management ....................................................................................... 202

Chapter 7 .......................................................................................................................... 204

7.1 Summary Project of Feasibility Study ...................................................................... 204

Reference .......................................................................................................................... 208

1.1 Background and Significance of the Project