Siam Rubber Company Limited

a

b

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

Activities

November December January February

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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.

http://www.reothai.co.th/Para1.htm

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

Country Area ( thousand rai )

Gross production

( thousand tons )

Average yield

(kg / rai )

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

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

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

Source: [http://www.thainr.com/en/detail-stat.php?statID=91]

13

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.


1

1.5

2

2.5

3

3.5

Mil

lion

Ton

s

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Thailand NR Production by Types

Total

14


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

0

2

4

6

8

10

12

Tho

usa

nd

To

ns

2000 2001 2002 2003 2004 2005 2006 2007 2008

Consumption of Natural Rubber in 2002 - 2008

Total

15

(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]

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

Statistical Profile of Rubber Industry in Thailand

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

No: 5 RSS


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

Source:[http://www.faculty.fairfield.edu/faculty/hodgson/Courses/so191/Projects2010/Steve_Costello

/Part4Thailand.html#Prod]

49%

27%

19%

3% 1% 1%

Manufactures

Services

Agriculture

IT

Energy

Materials

25

Table show the buying price of Ribbed Smoked Rubber no.3 at Rubber Market

(2000 – 2009)

Year Songkhla Suratthani Nakorn-Srithammarat

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 Songkhla Suratthani Nakorn-Srithammarat


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 Co. Ltd.

101 m 3.

Mae Chedi Mai.

Wiang Pa

Pao district, Chiang

Rai 57260.

Thai Yok Rubber

Co. Ltd.

378 / 3 Moo 1.

Mae Chedi.

Wiang Pa

Pao district, Chiang

Rai. 57260

Tel. 789004,704068

Machinery 58.80 HP.

Capital 5,500,000 Baht.

There were 24 workers.

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

Had Yai district.

Production of Ribbed

Smoked Sheets.

1988 Rubberland Products Co., Ltd. – Located in Had

Yai district.

Production of Latex

Concentrate.

1989 Siam Sempermed Corp., Ltd - Located in Had Yai

Sri Trang Agro-Industry PLC. invested jointly with

Semperit Technische Produkte Ges.m.b.H. & Co

KG of the Republic of Austria.

Production of Latex

Examination Gloves.

38

1992 Sri Trang Agro Industry Co. (PLC) – Located in

Trang Province.

Production of Latex

Concentrate and Ribbed

Smoked Sheets.

Thai Tank Installation Co., Ltd. – Located in the

Deep Water Port in Phuket Province.

Liquid Rubber Tank

Rentals for Export.

1993 Thaitech Rubber Co., Ltd.- Located in Had Yai

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

Province – Sri Trang has held a 50% share in this

company since 1994.

Production of Latex

Concentrate.

1995 Shanghai Semperit Rubber and Plastic Products

Co., Ltd. – Located in the People’s Republic of

China – Sri Trang Agro-Industry PLC. and

Semperit Technische Produkte Ges.m.b.H. & Co

KG of the Republic of Austria have invested in this

company, as well as private investors.

Production of handrails

for several of the leading

escalator manufacturers.

Sadao P.S. Rubber Co., Ltd – Located in Sadao

district of Songkhla Province. Sri Trang Agro-

Industry PLC. has held a 50% share in this

company since 1995.


Smoked Sheets.

Anvar Parawood Co., Ltd. – Located in Sadao

district of Songkhla Province – Sri Trang Agro-

Industry PLC. has held a 70% share in this

company since 1996.

Production of rubber

wood for the furniture

industry and for

packaging crates. Also

provides shipping

services for rubber wood

used for fuel.

Startex Rubber Co., Ltd. – Located in Trang

Province.

Production of rubber

parts, with factory for

production of special

parts from latex

39

concentrate.

1996 Semperflex Asia Co., Ltd. – Located in Had Yai

district – Sri Trang Agro-Industry PLC. has

invested in this company jointly with Semperit

Technische Produkte Ges.m.b.H. & Co KG of the

Republic of Austria.

Production of Hydraulics

systems for industrial

machinery and

construction equipment.

This is the first company

in Thailand to possess

the technology to

manufacture industrial

quality hydraulic

systems.

Semperform Pacific Co., Ltd. – Located in Had

Yai district – Sri Trang Agro-Industry PLC. has

invested in this company jointly with Semperit

Technische Produkte Ges.m.b.H. & Co KG of the

Republic of Austria.

Production of rubber and

plastic parts for industrial

use, especially in railway

and the automobile

industry.

Premier System Engineering Co., Ltd. – Located in

Had Yai district.

Provides design services

for industrial equipment

and provides

maintenance and repair

services.

Starlight Express Transport Co., Ltd – Located in

Trang Province.

Provides shipping

services with a fleet of

over 120 vehicles.

1997 Sri Trang Agro Industry (Plc.) – Located in Thung

Song district of Nakorn Srithammarat Province.

Ribbed STR Block

Rubber 20.

1998 Sempermed USA Inc. – Located in Florida, USA –

Sri Trang Agro-Industry PLC. has invested in this

company jointly with Semperit Technische

Produkte Ges.m.b.H. & Co KG of the Republic of

Austria.

Manages the sales and

marketing of rubber

products, with 5

warehouses in Los

Angeles, Dallas, Tampa,

Chicago, and New

Jersey.

40

2002 Shanghai Foremost Plastic Industrial Co., Ltd. –

Located in Peoples Republic of China - Sri Trang

Agro-Industry PLC. and Semperit Technische

Produkte Ges.m.b.H. & Co KG of the Republic of

Austria have invested in this company, as well as

private investors.

Production of Latex

Medical Gloves, from

PVC.

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

Sri Trang Agro-Industry Plc. owned 40 per cent of

shares,invested jointly with Lee Lee Feed Mill

Public Company Limited.

Trading representative in

Thailand Agro future

market (Broker No.

2012)

2005 PT. Sri Trang Lingga Indonesia

Sri Trang Agro-Industry Plc., owned 80 per cent of

shares, invested jointly with Lingga Djaya Group

(the Indonesian partner) Expecting the factory to

be operational in the early part of Year 2006

Production of SIR 20

Block Rubber in

Indonesia

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

Thai Hua Rubber Public

Company Limited

(Rayong Branch)

Producing RSS, STR, Blocking,

Compound Rubber

7/2 Moo 4 Kached, Muang Rayong

Rayong 21100, Thailand

Tel.(038) 634-490-7 Fax.(038) 634-07

E-mail : [email protected]

Goodyear (Thailand) PCL

Manufacture of automobile tires

50/9 Phaholyothin Road, Klongluang

District, Patumthani 12120

Sahakit Wisarn Co., Ltd. Floormat Automibile 63 Mu 7 Sudbantat Rd., T. Tandeaw,

A. Kaengkhoi; Saraburi 18110

Q One Co., Ltd.

Manufacture of concentrated

natural rubber latex

99/1-3 Mu 13 BangnaTrad, K.M.. 7, T.

Bangkaew, BangPlee, Samutprakarn

10540

KPN Ashimori Co., Ltd. Manufacture and supply of seat

belts for cars and trucks

385 Mu 17 Bangplee Industrial Estate,

Theparuk Rd., T. Bangsaothong,

Bangsaothong Sub-District,

Samutprakarn 10540

43

JSV Hardware Co., Ltd. Manufacture of flexible conduits

3088 mu 10, Sukhumvit 107 Rd,

Samrong, Samut Prakan 10270

Sungshin Bangkok Rubber

Co., Ltd.

Manufacture of middle, outsoles

and parts of shoes

17/21 Mu 7, Nongmuang, Nongmuang,

Lopburi 15170

Deestone Co., Ltd.

Manufacture of passenger car

tires, light truck tires, agriltural

tires, truck and bus tires and

industrial tires

84 Mu 7 Soi Sinprasong Petchkasem

Rd., Omnoi, Krathumban,

Samutsakhon 74130

Tigerpoly (Thailand) Ltd.

Manufacture of automotive air

intake hose, air cleaner hose,

resonator, reserve tank, washer

tank, air conditioner duct hose,

washing machine drain hose, air

conditioner drain hose

1/66 mu 5 Rojana Industrial Park, T.

Khonham, A. U-thai, Ayuthaya 13210

Thai Bridgestone Co., Ltd.

Manufacture of automotive tires,

tubes, flaps and retreads (exclude

design)

14/3 Phaholyothin Rd., T. Klongnueng,

A. Klong Luang, Pathumthani 12120

Pathumthani Rubber Co.,

Ltd.

Manufacture of rubber parts for

OEM (thai honda manufacturing

co., ltd.)

19/6 Moo 8, Klongkwai, Samkoke,

Pathumthani 12160

Otani Tire Co.,Ltd.

Design & manufacture of

passenger car tyres, light truck

tyres, truck and bus tyres, off the

road vehicle tyres, industrial tyr

55 Mu 7, Petchkasem KM.37 Rd., T.

Klongmai, A. Sampran, Nakornpathom

73110

Vee Rubber International

Co., Ltd.

Manufacture of bicycle tyres,

motorcycle tyre, truck tube and

bicycle tube

22/3 mu 2, Chaimongkhon, Muang,

Samut Prakan

N.D. Rubber Co., Ltd. Manufacture of motorcycle tires

and tube (excluding design)

129 Mu 3 Nongeiroon Banbueng,

Chonburi 20220

L.T. Rubber Co., Ltd. Manufacture of rubber smoked

sheet excluding design

541 Mu 3 Chan Rd., A.Chawang,

nakornsrithammaraj 80250

Source: [http://sql.diw.go.th/results1.asp]

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

Dr.Boo Co. Ltd. 33/48 Willstreet Tower, 11 th Fl.room1102, Surawong Rd., Suriyaeong,

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

Saeng Thai Rubber Co. Ltd. 252 Moo 1 Poochaosmingprai Rd., Sumrongtai, Phrapradaeng Samutprakarn

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]

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]

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

No: 4 RSS


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


No: 5 RSS


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 Songkhla Suratthani Nakorn-Srithammarat


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)



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

Songkhla Suratthani Nakorn-Srithammarat

Price

(Baht/Kg.) Unit (Kg.)

Price


Price


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)



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

YearPlanted area

(1,000 rai)

Harvested area

(1,000 rai)

Production

(1,000 Tons)

Yield per rai

(Kgs.)

Faem price

(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

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


http://www.rubberthai.com/statistic/stat_index.htm

http://www.thainr.com/en/detail-stat.php?statID=100

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

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.

Year Harvest Area

(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

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 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 3.8.1

Table 3.8.2

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

20% Unit= KilogramAverage market share From Chiang Rai market=

Quantity of Latex

63

Table 3.8.3

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

Quantity of real latex

64

Table 3.8.4

Table 3.8.4

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

Unit= Kilogram

Quantities of Product Per Month

65

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 & Inventory Plan



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.

Year

Average Price/Kilogram

Latex Ribbed Smoked Sheets

No.3

Ribbed Smoked Sheets No.3

Packed

Cutting

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.

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

Sales Forecast Siam Rubber Company Limited

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

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

Maketing Expense

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

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

Cost of Material

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

(Moreover 50,000,000 Baht) 25,000.-

- Cost of register the company limited

(Moreover 50,000,000 Baht) 250,000.-

- Request for Industrial License 100.-

- Cost of register Industrial License

(Capacity between 500 – 600 hp.) 15,000.-

- Factory fee per year

(Capacity between 500 – 600 hp.) 4,500.-

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

Computer PCWarrior

i5 32000

Core i5 650 3.2GHz / 4MB

Intel Smart Cache/ LGA1156/

Dual Core/Hyper Threading)

Intel H55 Chipset

RAM 2048 MB DDR3-

FSB1333

HDD 1000 GB,SATA II

rpm.DVD+RW Super Multi

CD VCD DVD

16 in 1 Card Reader

19000 20 380000

Epson Aculaser M1200

Print Speed 20 pages per

minute

Number of standard 150 sheet

paper tray.

Print paper size A4, A5, B5,

Letter, HLT, Legal, GLT,

GLG, EXE, F4, MON, C10,

DL, C5, C6, envelope,

Transparecies, Label

accommodate the thickness 60-

163 gsm.

Connect the USB 2.0, Parallel

port.

3,510 5 17550

Epson EB-S9 Projector

Brightness 2,500 ANSI

Lumens.

Contrast ratio 2000:1.

Lifetime 4000-5000 hours.

15,900 2 31800

89

Epson GT-S80 Scanner

Scan speed Black - White 40

ppm, color 80 ppm.

Scanning resolution 600x600

dpi.Scan Resolution 75, 100,

150, 200, 240, 300, 400 and

600 dpi.75 sheet automatic

paper feed source.

38,200 2

76400

Chuphotic

Mercury Smart MS 1050VA

Battery size 1050VA/630W. 4,200 20 84000

ToTal 589,750


Canon L380S Fax

Machine+Handset

Laser Fax Machine

Automatic Document Feeder:

50 pages

Out of paper reception: 510

pages

Up to 33.6 kbps (3 sec./page),

conforms to ITU

Compatible Supplies:

Cartridge W (3,500-sheet)

(812-2200)

27,900

2

55854

90

Panasonic KX-

TS500MXW Telephone

Redial at the Push of a Button

Flash button for receiving call

waiting or transferring

incoming call (In case of PBX)

3-step ringer control (off-lo-hi)

Eletronic Handset Volume

Control

Tone/pulse switchable

770

20

15400

Fuji OA Magnetic

Trolley Whiteboard 2 P.

90x150 cm.

Magnetic whiteboard, double-

sided

Writing surface size: 90x150

cm. Weight: 12.48 kg.

6,900

2

13800

Furradec ST120DA

Desk RightDrawers

Beach+DarkGray

Dimensions: 120x60x75 cm.

Color: Beach+Dark Gray

Made from particle board, 25

mm. thickness melamine top

coated

2 mm. thickness PVC edge

Bottom drawer hanging file

and able to assemble on both

sides

Knock down system easy to

assemble

6,420

30

192600

91

Furradec E-03A (Pilot

7506) Chair

Sponge upholstered, PVC and

cotton covered cushion seat

and backrest

Black plastic-forming armrest

Armrest chair with 2 patterns

of cushion seat and backrest:

quality sponge and fabric

upholstered and sponge

upholstered, PVC covered

Spray plastic-forming legs

Dimensions: 56x58x84 cm.

1,300

30

39000

Total 316,654

Office Tools

Tools Detail Price Unit Total

Air- Conditioner LG

I13-SBA6M Inverter

- Easy Cleaning system

- Silent Cooling

- Auto Cleaning

- Comfortable

- Powerful

- Skew Fan

33,000 5 165,000

Samsung LCD

TV UA32C4000

- Resolution 1,366 x 768

- Picture Engine DNIe+

- Wide Color Enhancer Plus

Yes

- Clear Motion Rate 100

19,990 4 79,860

92

Industrial Fan

Size 24 inches

1,950 4 7800

Sofa BOLONA

Size 315*210*145 cm

22,900 2 45800

Plug

Size 3 m

309 30 3,090

Table set

Size table 90*150*75 cm

9,900

1

9,900

Fire extinguisher

800 2 1600

Set AVTECH CCTV

DVR 16 ch MDR688 (USB /

Remote /

VGA/Mouse/2SATA HDD

1 machine with remote

control.

65,500 1 65,500

Total 378,490

93

Toilet Equipment


water closet

3 / 6 l ACTIVE white

7350

28

205800

wash basin

Brand NAHM.

Category hung basin, white. 6600 3 19800

Hose pay

Brand RASSLAND.

Category hose set pay

Color chrome.

250 28 7000

Urinal

Brand COTTO.

Category Urinal.

White.

6150 2 12300

Ventilators

Brand PANASONIC.

Category glaze 690 2 1380

94

Scott Interfold Hand

Towels Box

High-quality absorbent and

wiping

Strong, soft,

Economical and cpnvenient

use with continuous

dispensing

610 2 1220

Total 247,500


Kimberly-Clark AQUA

Soap Windows

Dispenser

Hand soap with gentle lotion

formula

Pure natural formula helps

heal and protect skin from

dryness

Concentrated liquid soap

without tallow

Dispenser dimension:

14.5x24x10 cm.

Net Wt. 1000 ml./bottle

630 2 1260

Philips wp3892 water

purifier

- Pure water or no water

with Power UV+

- remove's bacteria, virus,

cysts

- Pure Protect Lock locks

dispensing of water when

filter reaches lifetime

5,900

24

141,600

Total 142,860

95

Kitchen Equipment


Furradec Pantry120

Kitchen Furniture

Beach

24,000

2 48000

Zinc 2-hole plate left

half of the

accommodation.

Brand BLANCO.

Category 2 sink holes, half

buried.

Color stainless steel

7500 1 7500

28

liters microwave oven

model R-7G89 white

Stove Brand SHARP.

Category microwave

desktop.

White.

7450 1 7450

Singer SW-

01 Water Cooler

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

cm.

1-year warranty

4,790 2 9580

96

Sharp I-Pot KP-36S

Hotta Electric Jar Pot

3.6Lit.

Unicap, one-layer cover for

easy operation ( pressing and

opening)

Stainless steel, rust resistant

interior

360º swivel base

Magnet plug

Pattern is changed up to

production line

990 1 990

Total 73,520

Dormitory tools

o Facility Management

Equipment Application Unit

Price per

piece Total Price

Trendy bed

5 feet, size 160 x 200 x

92 cm.

24

4,300

103200

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


Sumo

SRH26S+26G Trolley and Bucket

4,590 10 45900

98

Panasonic F-BQ16A Wall Fan

1,700 20 34000

Furradec FLASH 150 All Purpose

Tables

3,700 20 74000

Giant

RS2006 StorageRack

4Shelves172.7x81.3x205cm

Durable and easy transportation

Each shelving level is adjustable

Accommodate 10 mm. of plywood sheet

panel

Connecting rivet between bays of pallet

racking.

80kg. each shelf loading capacity

8,290 10 82900

Panasonic FL20SSEX-D/18

Fluorescent Lamp 18W

Lamp light emitted is resemble to

natural sunlight

10 % Energy Saving

The brightness increases 25% (Pa-Lock)

54 100 5400

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

RS-232 (Option).

• The TARE function less

tare

For before the weight of the

rubber layer will be selected

rubber

25,000 3 75000

Place rubber smoked rubber

floor waiting to be selected. 950 10 9500

Total 326,700

http://www.konbaan.com/shoppingzone/Expic2.php?pid=59

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

C: Waste water treatment

X: Screening Smoked Sheet Station

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

G: Food center

R: Road

H: Office

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 litt le 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.

123

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.

127

Outsourcing/Others

Organization Chart

Supervisor (1)

President (1)

Vice-President (1)

Human Resource

Department

Financial

Department

Product and Operation

Department

Customer Relation

Department

Human Resource

Manager (1)

Human Resource

Assistant (1)

Customer Relation

Manager (1)

Customer Relation

Assistants (1)

Financial Manager (1)

Accountants (4)

Transporters

Security Guard (5) Receive Latex (4)

Store Latex (2)

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)

128

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


Thai nationality.

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


Thai nationality.

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


Thai nationality.

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


Thai nationality.

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


Thai nationality.

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


Thai nationality.

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.

132

Qualifications


Thai nationality.

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.

Thai nationality.

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.

133

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.

Be honest on work.

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.

Be honest on work.

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.

140

- 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 1st 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

145

Administrative Expense

Administrative Expense Year 1, 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

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 2011

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 - - - - - - - - - - - - -


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




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 Total

Year 2012

146




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




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 2013

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 - - - - - - - - - - - - -



5 Water Expense - - - - - - - - - - - - -


7 Car Insurance 6,800 6,800 - - - - - - - - - - - 6,800

8 Fire Insurance 12,891 12,891 - - - - - - - - - - - 12,891




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

Year 2014

Total

147




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




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 Total

Year 2016


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

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 2015

Total

148




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




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 2017

Total


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




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

Year 2018

Total

149




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




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 2019

Total


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




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 Total

Year 2020

150

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

Production and operation Expense

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

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

Depreciation Expense

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

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

Siam Rubber Company Limited

Cash Flow Statement

162

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)



Cash Flow Statement

163

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





Cash Flow Statement

164

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


Cash Flow Statement

165

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





Cash Flow Statement

166

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


Cash Flow Statement

167

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




Cash Flow Statement

168

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


Cash Flow Statement

169

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





Cash Flow Statement

170

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


Cash Flow Statement

171

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


Income Statement

172

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

Income Statement


173

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


Income Statement

174

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

Income Statement


175

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

Income Statement


176

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

Income Statement


177

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

Income Statement


178

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

Income Statement


179

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

Income Statement


180

Year 2020


Sales

Ribbed smoked sheets No.3 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 360,000,000 4,320,000,000

Ribbed smoked sheets No.3 Packed 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 407,000,000 4,884,000,000

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


Income Statement

181

Year 2011

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAssets

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

LiabilitiesLong-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

EquityCapital 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

Siam Rubber Company LimitedBalance Sheet

182

Year 2012


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



EquityCapital 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

Year 2013


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



EquityCapital 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

Year 2014


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



EquityCapital 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

Year 2015


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




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

Year 2016


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




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

Year 2017


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




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



188

Year 2018


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




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



189

Year 2019


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




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



190

Year 2020


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




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



191

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.

Payback Period =𝐶𝑜𝑠𝑡 𝑜𝑓 𝑃𝑟𝑜𝑗𝑒𝑐𝑡

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.

192

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.

193

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.

195

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

196

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

197

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.

198

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.

199

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

เสือไฟ. "ท าไม ยางพารา ถึงมาปลูกท่ีภาคเหนือ มีค าตอบ!!!" Chiangraifocus.com. 1 Dec. 2010.

Web. 1 Dec. 2010.

<http://www.chiangraifocus.com/forums/index.php?action=printpage;topic=22021.0>

องคก์ารสวนยาง. "องคก์ารสวนยาง : ประวติัยางพารา." Reothai.co.th. 18 Nov. 2010. Web. 18 Nov. 2010.

<http://www.reothai.co.th/Para1.htm>.

กิง่แกว้ อริยเดช. "นโยบายการพฒันาอุตสาหกรรมยางในประเทศ." 22 Nov. 2010. Web. 25 Nov. 2010.

<herb.tisi.go.th/central/e-learning/talk/no_7/policy.ppt>.

ฝ่ายพฒันาเวบสถาบนัวิจยัยาง 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>.

209

League Management Committee (LMC). "ยางพาราและผลิตภณัฑย์าง." 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

(fraction of 100,000 Baht shall be counted as 100,000 Baht) 50.-

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

(fraction of 100,000 Baht shall be counted as 100,000 Baht) 500.-

2.3 Registered capital of more than 50,000,000 Baht 250,000.-

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3. Registering the company’s merger 5,000.-

4. Registering the medication 250,000.-

4.1 Registering the extraordinary resolution

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

4.2 Registering the capital increase

(calculate according to every 100,000 Baht of the increase) 500.-

(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

of association

400.-

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

branches 400.-

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.-

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Documents

Siam Rubber Company Limited