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Preface

This Project is a part of 1203302 Project Feasibility Study and Evaluation Course in the second semester of 2011. In this project is studying the feasibility of Japanese rice bran oil business in Chiang Rai which is include generally of rice bran oil business, management , competition analysis and marketing feasibility, investment cost, financial feasibility and risk analysis of Japanese rice bran oil business.

This project makes for students or everyone who interested to get knowledge and information about the Japanese rice bran oil business before decision making to investment, including preoperational process and operation process of Japanese rice bran oil business, for the benefit to investment and profit of doing in this business.

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 ground made an apology at this opportunity.

Group Members Mr. Kanen Miss. Qing Mr. Xu Mr. Kritsadaphong Mr. Kurk Mr. Phudit Mr. Wichanon Mr. Siwanart Yan Wei Meng Zhang Seangsawang Kongthong Petchthong Fongtrakul Suwanshoksakul

Table of Content Topic


Preface Content Chapter 1 Introduction
1.1 Background and Significance of the Project 1.2 Project objectives 1.3 Benefits of project 1.4 Time frame study

Page (s)
a b 1
2 4 5 5

Chapter 2 Industry Profile 2.1 Nature of industry 2.2 Situation of Industry 2.3 Product and Service 2.3.1 Product 2.3.2 Service 2.4 Vision 2.5 Mission 2.6 Strategy 2.6.1 Corporate level 2.6.2 Business Strategy 2.6.3 Functional Strategy Chapter 3 Marketing Feasibility Study 3.1 Marketing Analysis 3.1.1 General environment analysis 3.1.2 Competition analysis (3C Analysis) 3.2 S.T.P Analysis 3.2.1 Segmentation 3.2.2 Target analysis 3.2.3 Position analysis 3.3 Marketing Mix Strategy 3.3.1 Product Strategy 3.3.2 Price Strategy 3.3.3 Place Strategy 3.3.4 Promotion Strategy 3.4 Sale Estimate 3.5 Marketing Expenses 3.6 Conclusion in market feasibility Chapter 4 Investment Cost 4.1 Investment Cost 4.1.1 Location 4.1.2 Facility Layout 4.1.3 Tools/Equipment/Machine 4.2 Cost of investment 4.2.1 Pre-operating cost

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4.3 Investment cost 4.3.1 Office equipment & Tools 4.3.2 Vehicle expenses 4.3.3 Kitchen equipments 4.3.4 Bathroom 4.3.5 Machine 4.3.6 Core Building Cost 4.3.7 Depreciation Chapter 5 Operation Cost 5.1 Operation Expenses 5.2 Logistic Management Chapter 6 Administration Cost 6.1 Management Analysis 6.2 Organization Chart 6.3 Administration Cost 6.3.1 Employees Salary 6.3.2 Rental Fee 6.3.3 Stationary Expenses 6.3.4 Electronic Expense 6.3.5 Water Expense 6.3.6 Internet and Telephone Expense 6.3.7 Cost Explanation 6.3.8 Total Operation and Administration Cost Chapter 7 Financial 7.1 Income Statement 7.2 Balance Sheet 7.3 Statement of Cash Flow 7.4 Financial Ratio Chapter 8 Risk Analysis 8.1 External Risk 8.2 Inter Risk 8.3 Sale Decrease 8.4 Cost and Expenses Increase Chapter 9 Summary 9.1 Summary of Project Feasibility Study References

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Seat 2

Team name : Vantage Bran Oil

ID

Name

5131203501 Kanen Yan 5131203502 Qing Wei Meng 5131203506 Xu Zhang 5231203005 Kritsadaphong Seangsawang 5231203014 Kurk Kongthong 5231203094 Phudit Petchthong 5231203112 Wichanon Fongtrakul 5231203120 Siwanart Suwanshoksakul

Chapter 1 Introduction

1.1 Background and Significance of the Project


Rice bran oil is produced from rice bran which is extracted from rice bran with antioxidants such as vitamin E, tocopherol, in groups of about 19-40%, and tri-E Tocopherol 51-81% methanol and Gamma Oryzanol this can be a better antioxidant about 6 times beyond vitamin E, 18% Monounsaturated Fatty Acid: MUFA, 45% Polyunsaturated Fatty Acid: PUFA, 37% rice bran oil for those who want to lower the bad cholesterol (LDL-C). The oil is obtained from a special process to extract the active ingredients are many benefits which in Seed Membrane Layer and germ (Rice Germ) is enriched with natural ingredients and high-value for health such as; Phospholipids such as lecithin to save Far North (Cephalin) Light chain lecithin (Lysolecithin), which is important in its creation. And repair of brain neurons and protect neurons of toxic substances and free radicals. Help reduce stress. And strengthen the memory. Ceramide, which is a critical component of the layer under the skin. Make the skin flexible. Strengthening the industrial world are not enough. Either by eating the skin or in the form of a cream or a logo will help to keep skin radiant shine. Wrinkle-free, wrinkle prematurely. The site also features a white ceramic not only thinners (Whitener), which can inhibit the synthesis of melanin. There are causing freckles and black spots on the skin as well. It is also found on moisturize the skin as well. Tocols , vitamin E natural. In the form of a conference held in Tocopherol

(Tocopherol), and Tri E Tocopherol methanol. (Tocotrienol) is useful for the body to create. And repair cells. It also helps the body's immunity to the disease causes the body to help fight free radicals. This is a major cause of cancer. Linoleic Acid and Omega 6 Linoleic acid and (Linoleic Acid) or omega-3 essential fatty

acids. There are approximately 33%.

The Vitamin B - Complex functions of the nervous system, which allows for better The Gamma - Oryzanol oral activity in reducing cholesterol and triglyceride levels. The reduction of the coronary is arteries. Increase the flow of blood. It also has the effect of reducing stress and treatment of symptoms of postmenopausal women. It is also free radicals. It also has UV protection when ingested or applied. Skin is moisturizing and antiinflammatory. This substance has a very high security (Yuisale, 2011). Supplementary food market in Thailand is an attractive market although the economic is decline. It affects the health food market as a whole is not much. Because, it is driven and prevented of healths care. Although no clinically significant findings, but consumers believe that dietary supplements consumption is a factor in keeping the body healthy, not sick. The unit will not have to pay for medical treatment. As well as lifestyle changes pressure from economic and social environment changes. Consumers today are much more important for health care and are willing to invest to acquire good health.
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The Thai Farmers Research Center Co., predicted that the market for supplementary food by the year 2551 will be approximately 18,000 million baht, an increase of approximately 7.0 compared to the year 2550, which is a growth rate similar to last year. By 2550 the proportion of body care products market as a kind of drink or liquid food products, 42.0 percent of general (both tablets and powder. Excluding vitamins), 35.0 percent, 16.0 percent of the vitamin and nutritional products for children, 7.0 percent of the market and the vitamin supplements that are likely to grow in a high level and fierce competition. The entrepreneurs of both human healths are also an ongoing marketing activities as well as product development and diversity . (The Thai Farmers Research Center, 2009).
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http://health.kapook.com/view16198.html http://www.wiseknow.com/blog/2008/05/05/91/#axzz1fMCgzgVr

Overall, supplementary food is interesting business because there are still opportunities to grow steadily, the preventive health care. As well as expand our customer base by the operator of knowledge and correct information of health supplements which is derived from research and development institutions that are recognized internationally. Although it has not been any conclusive medical evidence, however, oil prices have increased steadily since that is the major risk factors of health food products. The rise of oil prices is affecting for the cost of living. Consumer spending habits need to be adjusted. It is the business of health food products to be fruitful or not depends on the ability of each operator to have better measures of marketing that can be sold in competition with rivals at an affordable price and product quality must be approved by the Food and Drug Administration. Ministry of Public Health Thus guarantees the quality and safety of consumers. Because of these factors is the first important factor in determining the health of the consumer purchasing in the future. Why we chose Chiang Rai for the location to start our business?? First of all, there are many business partnerships in state of raw material supplier. Second, the head quarter is located in Chiang Rai. Next, we can start up our business in small unit in case of small market and developing city and Chiang Rai is a good choice. Another factor is labor cost and other cost such as advertising in local area and technician expense quite low.

1.2 Project objectives


2. To study the situation of consumption the dietary supplements (Rice bran oil) 3. To concern market in this business and financial risk feasibility 4. To learn about the production and operation management process in Rice bran oil business 5. To analyze of the feasibility of rice bran oil business

1.3 Benefits of project


2. To know the situation of the dietary supplements 3. To know about the market and financial risk 4. To know the processing of this business 5. To know of the feasibility and the opportunity of this business

1.4 Time frame study

Chapter 2 Industry Profile

2.1 Nature of industry


Rice oil (rice bran oil) also known as the rice germ oil, Japan and Taiwan, and Southeast Asian country also known as rice oil. Rice oil originated in Japan. Japan was an advocate of rice people, Japan Islands the climate is mild, sunny, abundant rainfall, suitable for rice growing, by years of cultivation and improvement have become Japan main crops, rice has naturally become a staple of the Japanese. Precisely because focused on the Japanese rice and the spirit of innovation, creating rice oil was born. Japanese cream extraction from rice nutrition, refined into rice oil. As a cooking oil, which nutrient is much higher than ordinary cooking oil in modern Japan, the rice oil has replaced traditional edible oil, Japan's Ministry of earmarked for Japan domestic primary and secondary schools, special oil for cooking for lunch. Rice oil spread to the West and other developed countries, became United States Heart Association (AHA) and the World Health Organization (WHO) recommended healthy oil. Experts confirm that rice has a good improvement, oils on the cardiovascular, diabetes prevention, and can play the beauty skin care and delay cellular senescence effect than olive oil have a more balanced proportion of nutrition, it is known as "rice gold." Today, rice oil has become a family health in developed countries, such as cooking oil in the West. For several years in a row of rice oil is the World Health Organization (WHO) recommended as the best cooking oil, China public nutrition and Development Center, national development and Reform Commission also recognize rice oil as "national nutrition and health advocacy products." In the Medical, and the Grand dictionary of Chinese herbal cuisine has its own health records (Baidu, 2011).
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http://baike.baidu.com/view/3480390.htm

Rice oil spread to Thailand which Thailand has the advantage with the raw rice bran oil is rich in resources, but still in the early stages of production and consumption of rice bran oil, annual output of less. Rice in the world annual production of about 600 million tons, China and South-East Asia is the world's grain producing areas. As an important byproduct produced during the processing of rice, Thailand annual production reached millions of tons of rice bran, but so rich in resources have not put to good use. Currently Thailand's annual output of less than 100,000 tons of rice bran oil, most of the rice bran resource use as animal feed. Its mainly because of the rice bran resource difficult to concentrate, rice bran comprehensive utilization difficult to scale, followed by the enterprise to buy from farmers of rice bran and rice bran oil varies considerably, resulting in inconsistent quality of products, at the same time as production of smaller, low yields, high processing costs and the volatility of the markets at home and abroad, many forced out of the market competition. Thailand also has many relatively early-rice bran oil companies such as the KING of rice bran oil, Surin bran oil and formed a certain scale. Thailand half the domestic market of rice bran oil, half for export, but judging from the current trend, manufacturers, mainly in favor of the export market, after all, the export market because of a shortage of stage, and there is a better economic efficiency (Baidu, 2011)
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http://wenku.baidu.com/view/f3d297240722192e4536f6cc.html

2.2 Situation of Industry


Nowadays, there are many supplementary food businesses both in Thailand and Chiang Rai. Due to the rapidly expand of disease such as cancer, heart disease, diabetes, high Cholesterol in the blood and obesity people cannot cope easily. Almost 34.8% of people age more than 60 year olds was sickness or congenital disease. (Thaitgri, 2009). Our supplementary food compose of a lot of nutrition from Japanese rice bran. There are contained GABA in the Japanese Germ which is the source of many nutrients are the health benefits, especially for memorization and higher gramma orizanal. This caused us dare to compete with other main competitors such as Aim Star, Snatur and Onemorelife which normally use Jasmine rice as the main raw material. All nutrition in Japanese rice bran oil can support medical treatment to get better health. According to statistics and evidence that involves to elder income and household that can access to purchase our product are including: specifiable and professional job area = 12.6%, entrepreneur and business sector = 26.4%, government sector and other = 11% of all elder aging area (50% of segment population) and intend to positive increasingly because of increasing elderly. Thailands elderly increase continuously from 7.6 million people in 2010 to 11 million people in 2020 and in the next 20 years Thailands elderly will be higher approximately 15.8 million people that can calculate as 21.4% of Thai people thats why in the next 20 years will be more elderly . (Thaitgri, 2009).
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http://www.oppo.opp.go.th/older_data/webpages/workoppo2/satanakarn52.pdf

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2.3 Product and Service


2.3.1 Product Figure 2.3.1.1 Japanese Rice Bran Oil Capsule

Figure 2.3.1.2 Japanese Rice Bran Oil 2 liters baggage

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Figure 2.3.1.3 Multi-purpose Japanese Rice Bran Oil

Figure 2.3.1.4 Products

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2.3.2 Service Transportation We have transportation for our retailer in order to deliver our product to our retailer for sale to the customer.

Information Provide land line for customer contract directly. We provide product information and leaflet for retailer.

2.4 Vision
We become the leader of Japanese Rice Bran Oil as supplementary food market in Chiang Rai.

2.5 Mission
We provide Japanese Rice Bran Oil as standard and remaining the products value to put into market. At the same time, we emphasize on products quality mostly and using newly raw material.

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2.6 Strategy
2.6.1 Corporate Level We use intensive strategies for in extent of our original business to make full use of rice bran oil products and seek market potential for growth. Our marketing objectives set in Chiang Rai and use the specific purpose of rice bran oil products to setting market segment. We hope our business goals more focused for pursuit reducing cost and differentiation and make stronger competitive advantage. In our existing business areas which strengthen product and market development and penetration of our main products to seek business opportunities for future development. We focus on strengthening the development of existing markets and the development of original products. 2.6.2 Business Strategy

Our business had been set in the differentiation quadrants, we introduce Japan rice as raw materials and Japan raw materials advantage lies in its containing GABA rice Germ, and others same kind of products do not have, this product can bring more benefits to consumers. Through product differentiation, we could effectively avoid frontal impact of other similar products market and competition; Due to the uniqueness of the products we were able to weaken the powers in the hands of buyers, because lack of comparability of choice; we hope that this advantage could impede the later competitors, because in a differentiated strategy, will be satisfied customers see their brand loyalty.

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2.6.3 Functional Strategy 2.6.3.1 Marketing Strategy Product Strategy - Create logo and branding as noteworthy unique. - Keeping control quality all section among production process - We have certificate of Food and Drug Administration for our factory - We have certificate of GMP for our production process Price Strategy - We set price as premium class product but confirm that the high price come out with high quality product. Place Strategy Distribute product to retailer under integrate strategy.

Promotion Strategy We have radio advertising We have leaflet for retailer We put vinyl in front of retailer store

Financial Strategy Prepare financial statement to systematic, clear, and accurate in every month Improve the accounting system and finance in standard form Discipline with financial and saving Show monthly cash flow and income statement to investor, membership, and adjust at the ended December balance sheet for each year. Adjustment and develop financial plan from investors decision-making when organization purchasing

Human resource Strategy - We assign clear duty scope and position to employee - We train every new employee individual - We have performance appraisal in every 3 months

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Chapter 3 Marketing Feasibility Study

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3.1 Market analysis


3.1.1 General environment analysis The market of supplementary food in Thailand trend to growth above 10% throughout the year because many people concern more health care such as the beauty, the overall health, maintenance of the brain and anti-aging effects.

(http://eureka.bangkokbiznews.com/detail/409241) The organization has to understand market trend, opportunities and threats in order to evaluate and monitor external environment information before set up strategy to identify and analyze the information from the external environment for the management and staff has been informed. According to PEST Analysis, these four components described the external environment factor for decision making to compete efficiently in specific market. Political/legal factor National innovation agency, try to support Supplementary food industry because its growing every year. Although, Thailand faced the political problem but it not affect to Supplementary food industry. Now a day, health trend still growing because many people care about their health that make entrepreneur ensure to invest in Supplementary food industry. In supplementary food field, there are many Ministry of Public Healths policy to control product safety .So, entrepreneur need to concern about this more according to Legal (Act liability for any damages arising from unsafe products, 2551) that became effective in February 2552 on the protection safety of consumers. Regulations relating to supplementary food (Ministry of Public Health regulation number 293 B.E.2548) are very strict in order to protect consumers; it is difficult for operators to advertise the benefits of the product because there are many regulations on massage of advertising . The distribution channels are direct sales channel to advertise the benefits of the product or word of mouth and push our product into retailers. However, we plan to avoid some effect
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http://www.ocpb.go.th/main_previlege.asp http://www.ratchakitcha.soc.go.th/DATA/PDF/2548/00179117.PDF http://www.cosmeticprotection.org/index.php?lay=show&ac=article&Id=539169016&Ntype=15

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to our business from political risk or any regulatory risk from government activity such as suppression unsafe goods by make our product beyond or follow government regulation. By following political situation we can develop our business beneath any change of politics so we can avoid those risks.

Economic factor President of Health Foods Association (HFSA) and Food Science and

Technology Association of Thailand (FoSTAT) President Mr. Pisuit Ledvirai, said that "the total value of health products worldwide. The growth rate increased from 24.22 billion U.S. dollars in2554 to 29.75 billion U.S. dollars in 2558, representing around 23% of the market. There are three groups in the U.S., EU and Japan. Supplementary food market in Thailand, although not large lot is approximately 23,600million in 2553, but growth rates above

10% throughout the year, supplementary food that is popular in Thailand and in the region. (ASEAN) is still a weight control group, the beauty, the overall health, maintenance of the brain and anti-aging effects . (Bangkokbiznews, 2011).
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http://eureka.bangkokbiznews.com/detail/409241

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At the beginning of our company, we generate our product into 2 groups which are retailing instate of capsule and wholesaling as supplier. For retailing, we plan to promote our product in state of supplementary food capsule and beginning of sale started from first month. In following year we plan to stimulate selling by using presenter. At the same time, from the beginning year we also try to contact with our business partner to let them try sample product and talk about possibility to sale our product them in state of Multi-purpose Japanese Rice Bran Oil by we are going to be supplier for them. After selling contact is possible we will spend whole of second year to make sure that our capacity and quality are beyond the standard to get into EU market. In third year, we will start selling Multi-purpose Japanese Rice Bran oil 2 periods a year for the first period is May to July and second period is October to December. These 2 periods provide most productivity during a year because it is rice harvest seasons. Social factor Nowadays Thai society turn to take care their health more than the past and our world has entered an era of information technology. The social is the factor that affect to nutritious product that mention above. Currently, obesity is becoming a threat to public health issues public health seriously. All countries have the problem of obesity throughout the population. In Thailand, they are obese as well. Another factor is increasing of elderly population There are around 38.4% was sickness or congenital disease which are quite high. In contrast, supplementary foods can help those people to support them the power, reduce cholesterol, and avoid cancer. Especially, Japanese rice bran oil that provides more nutrition than other types of rice
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(Thaitgri, 2009).

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http://www.oppo.opp.go.th/older_data/webpages/workoppo2/satanakarn52.pdf

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Technology factor Technologies significantly affect human as well as other animal species' ability to control and adapt to their natural environments. The human species' use of technology began with the conversion of natural resources into simple tools. The prehistorically discovery of the ability to control fire increased the available sources of food and the invention of the wheel helped humans in travelling in and controlling their environment. (Wikipedia, 2011). Technology to production process is quite expensive that can lead to high cost. In other side, it can make production process quite fast and efficiently. Advertising part, social network technology is very useful such as Facebook, e-mail, online sale, e- commerce and etc. Social network can give customer information and receive customer suggestion easily. So, the firm can reduce cost of advertisement. Moreover, the technology that company use for the manufacturing is the advance and efficiency such as machine, because machine is the most important technology that need to concern for produce the good and quality of product. Therefore, we use high and advance technology; it can reduce the production costs and increase capacity of productivity. In addition, it also makes to response of customers need for more efficiently. Our company applies technology to achieve the highest quality of the product and distribute channel to communicate with customers in order to share and get the information.

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Technology Equipments

Filter press Filter press is one of solid-liquid separator machine application for various industries. Sludge dewatering plant starch industry pulp and paper industry, mining industry, sugar industry and rice bran oil industry.

Cold pressing machine The Cold pressing machine is fit for making cold pressed cutter blade, grinding wheel and resin bond wheel which can be finished if heating plates are used.

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3.1.2 Competition Analysis (3C Analysis)


Competitors Analysis

Our company establish in Chang Rai province because there are rice mills in order to be source suppliers that have to produce ours product which overall is low cost of raw material. Certainly, mostly ours competitors are big branding in supplementary food industry those business sales as a network. So, we can analyze the main competitor into the following these examples are: Direct competitors Aim Star - Vital Star Aim Star distributes rice bran and germ oil capsules. They employ and operate by business network and also establish oil bran factory in Thailand. They use Thai jasmine rice oil that use strategy to compete with other brand by license standard (E.g. OMIC, GMP) and experience quality guarantee. Vital star has been export to Japan and U.S.A that be acquainted in wide area . Snatur - ORise Snatur is also networking business and distributes rice bran oil and germ oil capsules. They stand prominent point which differ to Vital star is nature cooling distill (cold press extraction) and also high quality with multigrain added (nature 100%). They strategy is emphasize on social network and e-marketing by personal spread widely and connection.
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Onemorelife - Ricezanol 48u-plus/16 Ricezanol 48u-plue and Ricezanol 16 features are leading in gamma oryzanol up to 48 and 16 mg per capsule (other cap. 8 mg) and they sell at lower price around 590 bath. Indeed, there are meet standards guarantee also. Ricezanol use raw material (Japan rice) imported from Japan (TSUNO Co., Ltd) and guarantee their products are non-hexane (cancer contaminant) in LICAP solid capsules.
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http://www.aimstarnetwork.com/TH/product/vital.htm http://www.snatur.com/

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Timely - Oryza pure nature Timely is newly company. Oryza pure nature feature is non-rancid and contain on LICAP high quality capsules.
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P5 Network - Oryza Currently, Oryza are pure bran oil but future will develop by added ginseng and fish oil.
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Comparison table of our competitor


Company Kurk Product name Vantage Price 950/60cap Promotion Discount, seasonal promotion Family pack, Member discount Discount Period Member discount Member discount Low price package set Member discount Strength Use Japanese rice bran oil for better nutritional benefit Firstly establishment, strong brand Extract Gamma oryzanol up to 48 ExtractGamma oryzanol up to 16 Sales Strategy Direct sales ,Retailer MLM Web order ,MLM MLM MLM Web order, MLM MLM

Aim star Snatur Onemorelife Onemorelife Timely P5 Network

Vital Star Orise 500 Ricezanol 48uplus Ricezanol 16 Oryza pure nature Oryza

900/60cap 450/30cap 1,350/60cap 750/60cap 900/60cap 1,050/60cap

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www.onemorelifeinter.com/http://221.128.105.76/onemorelifeinter/newweb/product_n ew/poster/48u_plus.html http://www.timely-center.com/modules.php?name=easyShop&file=view&No=18 http://www.p5network.com/product-h.php

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Indirect competitors Amway - Nutrilite Today, Nutrilite is a one famous and proficient brand. However, there is not directly competitor because they didnt sell rice bran oil in capsule but they have many products that are substitute to ours product. As soon as possible they will plan for develop product that use rice bran oils also.

Giffarine Giffarine is a one gather in large market share in Thai supplement food industry. Nevertheless, there isnt rice bran oil product but they plan to develop in rice bran oil kind too. Certainly, their supplement food product can be substitute to ours product.

Customer Analysis
According to consumption flow of supplementary foods is being famous

affects many consumers believe that good health can be purchased and also consistent with the way of life in currently years which people doesnt have a lot of time to get better health by exercise, eating some fresh nutrition vegetable. So, we offer them the thing that can substitute that is Japanese Rice Bran Oil which provide Gamma Oryzanol and more vitamins E. The target group are people who have income around 20000-30000 Baht and care for themselves and caregiver who like to take care for other relatives. Moreover, there are patients who want to get better health they also concern to treat their body. Therefore, the patients and caregivers are our target customers that are increasing in Thailand. The causes of purchasing supplementary food can be separated into 2 types are purchase for self consumption for 58 percents and purchase for Souvenirs for 54.3 percents. The majority of purchasing purchase for health, to fulfill energy, and buy from the word of mouth. Lastly, the first factor that customers purchase is nutrition of the supplementary food.
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http://tdc.thailis.or.th/tdc/dccheck.php?Int_code=103&RecId=216&obj_id=2094&showmenu=no

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Table showed the percentage of purchasing supplementary food in Chaing Rai


Type of supplementary food percentage 15.2% 22.3% 33.6% 14.0% 13.0% 1.9% 100% number 98 144 217 84 90 12 645

Essence of Chicken Bird's Nest Beverage supplementary vitamin Garlic products such as tablets or capsules. Herbal extracts other total
-

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http://tdc.thailis.or.th/tdc/dccheck.php?Int_code=103&RecId=216&obj_id=2094&showmenu=no

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Competitive Analysis
Nowadays, Competitive in supplementary food are prominence furiously. Rice bran oil products in supplementary food industry obviously seen are popular in the whole healthy market and continually expand. The important thing in each brands are try to lead in this market by various approach strategy and try to distinguish their product against the other competitor rigorously. There are the same goal is overcome the customers reliance because there are a lot of information support in negative side. Since, some company is propagating and fake properties for their marketing. The food and drug administration announce to consumer that dont belief the rice bran oil advertisement so, this announce was threat to rice bran oil industry. Supplementary food emarketing is expanding rapidly in social network by which spread wide and be full of advertising information for customer support. Our distribution channel we distribute our product to drug stores and healthy foods stores in Chiang Rai which can compete with the competitor that does not distribute to any store.

For these situation can be ours opportunity and threat also because we sale ours product as supplier to provide into market. That means we can sales to several businesses as supplier because several companies didnt produce their product by themselves. In another option, we can achieve competitive advantage in cost leadership than other competitors because we are resource-based and producer in its industry. In the other hand, there are more company try to achieve cost leadership, this reason is usually disastrous and supplementary food selling in lower price can influence negative customer perceptual.

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3.2 STP Analysis 3.2.1 Segmentation


According to Thailand statistics, Thai is already aging society because Thai have elder age above 60 over 12% of all population (Around 7.8 million in 2554). There are various substitutes commoditization and high level at cost competition in senior age or elderly market. In order to filter out segmentation we analysis in 3 stage segmenting. 1. Demographic: As our segment are user who are senior worker or senior citizen that have age

up to 40 years old - above. This segmenting can measurable by Thai population statistics (Mahidols Statistics) that estimate around 30-35 %( age over 40) of all population and world elder evaluate
18 population are ranking aging categories (over 10% of 60 aging) as Thailand has been aging society.

2. Attitude: Ours product are concern as supplementary food that can make emotional healthy benefit to advertise ours customers. According to who was possibility illness and patient attitude in elder aging and senior working, mostly they will attend to care their health more than who are good healthy. So, ours product can make impress to this group of customer or his/her intimate relationship such as buy as a gift for their parent. There are around 38.4% was sickness or congenital 19 disease. There are not including who possible to be sickness. (2552)

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http://www.ipsr.mahidol.ac.th/ipsr-th/PublicationGazette.html http://www.ipsr.mahidol.ac.th/IPSR/AnnualConference/ConferenceII/Article/Article02.htm 19
http://www.oppo.opp.go.th/older_data/webpages/workoppo2/satanakarn52.pdf

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3.

Physical: Since ours product is premium and high involvement. We will emphasize on how

substantial that buyer can accessible to ours product or not (focus on purchasing power). According to statistics and evidence that involves to elder income and household that have a chance to access purchase our product are including: specifiable and professional job area = 12.6%, entrepreneur and business sector = 26.4%, government sector and other = 11% of all elder aging area (estimation is 50% of segment population) and the future tend to positive increasingly. There is not including 40-60
20 years profit and saving deposit yet because it difficult to classify for measurable information .

(2552)

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http://www.cco.moph.go.th/hp_group/healthpromot/old/6.htm

http://www.oppo.opp.go.th/older_data/webpages/workoppo2/satanakarn52.pdf

28 *Estimate on average of elders sickness and can accessible segmentation may equal to [(67,000,000x30%) x38.4%] x50% = 3,859,200 persons **Estimate on average of elders sickness and can accessible segmentation may equal to (Chiang Rai province) [(1,200,000x38%) x64.1%] x15.3% = 44,721 persons In concluding, ours customer segmenting can filter as following diagram:

1-20 y 60over

21-40 y 41-60 y

Age Illness Accessible Our segment

*Information on above are not include other purchaser group that out of estimation.

3.2.2 Targeting
Refer to segmentation based on elder and senior age populations, future tendency of aging society are increase continually. Fit for reason, that ours product buyer targets are senior worker and elder since40 -over years old are possible to be illness or patient, live in urban area, good at education level, mid-high purchasing power, who have accessibility to information, attend to maintain their healthy and desire to be good health for themselves or intimate. In addition, customer might take buying action is rely on customers User readiness and awareness which are the important Receive from factor to access supplementary food buyer product acknowledge for well-known what its Buyer Influence buyer benefit for healthy. Moreover, ours Is ours segment Buy for each other customer target group is who are select Consume by high quality or premium product and require highest benefit for themselves serve their Is ours target health or their important person. Beside, these customers are consent to spend at high price rate or they are careless to price in order to exchange with high quality product because they want premium product for their premium healthy.

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3.2.3 Positioning
Perceptual Mapping
HIGH Vantage

Vital Star

Aging target
Ricezanol 16 Oryza Ricezanol 48U ORice Oryza pure nature LOW

Customer Accessibility

The vantages positioning are emphasize on customer accessibility in order to easier of accessible to product compare with age targeted analysis to plot ours company and competitors position. According to perceptual mapping concern with direct competitors, all of these products are attempt to differentiate themselves. As well as, each companys product are try to meet the higher standard than competitor and develop quality control contend over competitor. Nowadays, MLM sales method was decline and prejudice from consumer in some part. Therefore, we will think differentiate about distribution channel by sale at pharmacy store and convenient store in any local area. There are many competitor have age target at the same level (30-50 year old) such as Ricezanol 48U,ORise,Oryza pure nature, Vital Star. In fact, there are 2 main competitors when we consider to quality/standard that we need to deliberate specially: Firstly, Ricezanol 48U is nearly quality with our product because they also use Japanese rice as raw material and develop gamma oryzanal up to 48mg at highest price in the market but their develop product for working age target and MLM system. Secondly, Vitral Star is also main competitors because their company have the first biggest rice oil factory in Thailand. Definitely, Aimstar Company is highest rate of productivity together with largest scale in market share.

30

Perceptual products status


Quality/Standard

Vantage Vital Star


Price Aging target

Ricezanol 48U Orice Oryza Oryza Pure Nature

Accessibility

31

32

3.3 Marketing Mix Strategy


3.3.1 Product Strategy The market can be carried out effectively. We use a competitive strategy. Create a distinctive differentiation from the competition. With products that have nutritional value of Japanese rice and combination manufacturing processes are environmentally friendly. To response the customer needs and target groups in health care. Since rice bran oil has many competitors and the properties of rice bran oil in other company is very similar. But we are different and stand out clearly in the products we use Japanese rice to make the rice bran oil extraction. The Japanese rice containing GABA in the Japanese Germ which is the source of many nutrients are the health benefits, especially the "brain" if you have a brain that works efficiently, good memories, care and rehabilitation of the brain simultaneously. It also helps to reduce fat. There are also reports that chemical GABA. Preventable diseases Al Palmer Robert Parkinson has been in the medical application of GABA to be used as a cure neurological disease such as anxiety, insomnia, seizures, and also the nutrients. Moreover, it has more health benefits such as vitamins and minerals. It also helps protect consumers from allergies. It is clearly that the Japanese rice has differentiation of Jasmine rice.

3.3.2 Price Strategy The price of Japanese rice bran oil of our company in order to create the appearance of new alternative premium healthy oil which is the rice bran oil for good health. We set a little higher price than its competitors in the market or equivalent. However, comparing the values obtained can be seen that the prices are not much higher than competitors. The pricing Bottle 60cap 950 Bottle 30cap 500 baht. baht.

This price strategy aims to be profitable for the company is satisfactory when compared to the quality of the product to market it is not higher price.

3.3.3 Place Strategy We focus on the advertising of products and the channels of the product thoroughly. The consumers have decided to choose a quality product and the best products for them.

33

1. We will sell our products in health food stores and hospitals. To be consistent with the image of the product 2. Pharmacies to indicate that our products and valuable health benefits and create a good image in the attitude of consumers This is will be the basis of these places to raise a trust and believable in our products because these place are a place where health issues.

3.3.4 Promotion Strategy The magic bran oil is new market entry. Brand, it is more important to emphasize. To the promotion of Japanese rice bran oil is focuses on the use of integrated marketing communications strategy. Because of we are a small industry, and to fight many competitors in the market in order to promote the market into efficiency from competitor. We use the distribution channel to promote our products by Advertising o On the Radio wave 95.00 MHz every hour. o Give the Leaflet in anywhere such as Central, Big C, Official place etc. o The product launch by Presenter is Mr. Sorayut Suthasanajinda on July in first year that we launch the product. Personal Selling The personal selling is the important to do the business because it helps to know the feedback of satisfy of customer, then when the one customer satisfy for our product, they can persuade another customer to consume the good product and also make the decision for consume the product that give the benefit for them. Social Network, Technology Website and Facebook because nowadays the e-commerce in business is very popularity, it easy to contact, get information about the detail of product, convenience and also save the cost and time. To promote the marketing of products, we will focus on is the natural and indicate the product of healthcare. By the way, in order to communicate to the consumer to know the properties of the product by using the slogan that is Let us to help take care of your heart.

3.6 Conclusion in market feasibility


According to sales estimation which we are a new company that recently entered the market. It is not well- known among of customers. So, we plan to launch the product of 500 bottles in the first 5 months then we will increase sales in the month 7 because we employ a presenter who is Mr. Sorayut Suthasanachinda to promote our product in order to persuade the customer to consume our product and to stimulate the sale growth. Moreover, we also have promotions to sales discount 20% in August and December because of these months is the high season for example; for gifts, etc.

34

In year 3we have been forecasting in order to expand the market to European countries which can increase revenue by 54% or almost two-times, and we will export the product at period when surplus demand in the country when is the May to July and October to December.

Therefore, when we do the new business to entry the market, there will be fluctuate follow the Product Life Cycle, then there are many competitors and substitute product to entry the market, So we estimate to the decline period and planning to develop out product in the future. In order to maintain the sale of the company and customer to believable in our product under the brand name this is Vantage Bran Oil.

35

Chapter 4 Investment Cost

36

Map

37

Office Layout

38

Factory Layout

39

Company Layout

40

4.1.3 Office Equipment & Tools


Desk L shape Size 180(W)*140(H)*75(L) cm Price: 4,990.00 Baht

Desk L shape Size 120(W)*60(H)*75(L) cm Price: 2,200.00 Baht

Locker Size 91*45*182 cm Price: 7,380.00 Baht

Sliding glass cabinet 3 feet (90 cm) Price: 3,700.00 Baht

Chair Price: 1,050.00 Baht

Meeting Table W 150 x L 390 x H 75 12 seats Price: 20,300.00 Baht

41

Sofa Price: 6,900.00 Baht

TV shelve Price: 1,500.00 Baht

Computer Acer Aspire M1900-672G5000MG/9008 Intel Pentium Dual-Core (3.2GHz) RAM 2 GB DDR3 HDD 500GB SATA ATI Radeon HD 5450 DVD SuperMulti Price: 15,879.00 Baht CANON MP287 Print speed black Print speed color (draft, A4): 15 s/m Resolution (dpi): 4800x1200 inches Price: 2,550.00 Baht

Copier/Printer/Color Scanner HP Speed copy 10 sheets/min Zoom 50%,70%,100%,141% Price: 9,900.00 Baht

Paper monster ATIV Price: 1,990.00 Baht

The clocking LCD Monitor and Digital display Price: 7,590.00 Baht

42

Panasonic Phone Price: 1,490.00 Baht

Panasonic Fax KX-FP701CX Price: 3,750.00 Baht

A4 Paper Idea 70 Grammy 500 sheets Price: 465.00 Baht / box

Fax Paper 210mm*30 yds 6 roll Price: 225.00 Baht

Clip Files Price: 76.00 Baht / piece

CASIO Calculator Display 12 primary Tax calculation Price: 515.00 Baht Scissors 9 inches Price: 75.00 Baht

Cutter Elephant Auto lock Price: 25.00 Baht

Cutter Board 20*30 cm Price: 120.00 Baht

43

Horse Stamp Pad Size 7 x 10 cm Blue and red color Price: 29.00 Baht Horse Stamp Pad Ink 28 CC Price: 15 Baht

Paper penetration 30 sheet to penetrate Price: 275.00 Baht

Stamp Card 100 pieces Price: 120.00 Baht Max Elephant 10/Y2 Price: 57.00 Baht Staple max 24 packs Price: 117.00 Baht

Bill spit 9 inches Price: 20.00 Baht

Paper Clip 500 pieces Price: 45.00 Baht

Horse ball pen Blue and red color 0.5 50 pieces Price: 159.00 Baht

44

Highlight pen Faber Castell 4 colors 129.00 Baht

Liquid paper 7 ml Price: 45.00 Baht Aluminum Ruler 30 cm Price: 24.00 Baht QUANTUM Pencil 0.5 Price: 59.00 Baht

Pencil lead ROTRING HB/0.5/P2 Price: 49.00 Baht

Eraser Standard P10 10 pieces Price: 45.00 Baht Rubber Stamp / PAID Price: 45.00 Baht

Rubber Stamp / DATE 63.00 Baht

Rubber Stamp / Price: 24.00 Baht

Glue UHU 8.2G/WH/P12 12 pieces Price: 325.00 Baht

45

Document shelves 4 shelves Price: 485.00 Baht

Plug Price: 275.00 baht

CCTV Dkun AVTECH // MDR757 Price: 25,500.00 Baht Electronic fan MITSUBISHI W16-RP Fan Size 16 inch Adjust 3 level Thermal and Current Fuse Price: 2,150.00 Air Conditioner LG IE24-SCA6P 21,138 BTU Energy-saving technology H1N1 Filter Auto Cleaning when closed Speed cool Auto remove allergens such as pollen,
animal fur

Price: 28,900.00 Baht

Samsung LCD TV C550 All Share (LED) Full HD 1080P Wide Color Enhancer Price: 17,900.00 Baht

Suzuki carry 1,600 CC Price: 356,000.00 Baht

Toyota Vios 1.5J A/T 549,000.00 Bah

46

Kitchen
Refrigerator TOSHIBA GR-B145Z 5.0 Queue Toshiba Curve Live innovation and design. Distinctive and Spread evenly with a cooling rack and grill body weight Hanger comfort and function within the wall. Idea's innovation, cold storage and easy to fit all applications. Clip reminder to enjoy the fresh warning about the date, 3 colors for you to easily store and share food. every time you open it. The Chiller is a very large capacity of the container can be placed vertically. The cold competition (Freezer) a large area, cooling and space usage. Price: 6,050.00 Baht Media MYL-703S-b Hot and Cold water Auto control temperature Price: 4,990.00 Baht

unique. significantly. latest expiration Peace of mind

Kettle SHARP KP-30ST 2.9 liter POLY-FLON Modern design Price: 895.00 Baht

Microwave TOSHIBA ER-G23SC(S) 23 liter Ability to adjust the heat level 5 Elegant design panel with easy to use You can set the time to cook for 30 min The water system is frozen Price: 2,790.00 Baht

Kitchen Sink cabinet Size 60 x 160 x 196 cm Price: 11,400.00 Baht

47

Sink Size 53 x 105 x 120 cm Price: 3,900 Baht

Table set Price:3,500.00 Baht

48

Bathroom
Set of Sanitary ware KARAT Flush Toilet Basin Soap place Hose Price: 3,250.00 Baht

Chamber pot Price: 1,999.00 Baht

Faucet
Price: 195.00 Baht

Mirror Price: 155.00 Baht

Door Door knob Price: 3,700.00 Baht

Door Bolt Price: 20.00 Baht

Exhaust fans PANASONIC FV-20SUT2 8 inch Price: 1,150.00 Baht

49

Machine
Filter press Price: 25,000.00 Baht

Cold Press Machine Price: 100,000.00 Baht

4.1 Pre-Operating Cost No. Details 1 Landscape & Drawing Landscape Blueprint Infrastructure Drawing Project Planing for cover GMP Total landscape & Drawing 2 Certificate&Inspection GMP & GMP codex(for export) GMP auditor Halal Halal auditor

Price

Note Freelance Architect&Landscape' Freelance Architect&Landscape' standardize for GMP Codex

50

800.00 600.00 2,000.00 3,400.00

800/page 600/A3 page

100,000.00 70,000.00 75,000.00 35,000.00

BUREAU VERITAS BUREAU VERITAS Halal Thailand Halal Thailand 65,000/day for inspection about 2 days 16,000/time only document

ISO: 9001 :2000

146,000.00

Moody International

HACCP system inspection Total Certificate&Inspection 3 Registration Fee Registration business partnership fee Registration book certificate Signature in the name of partnership Credential for file a complaint register Registor for partnership pay account Registration locate&area of HQ Memorandum registrar fee Manufactor register Total Registration Fee 4 Trademark Fee Requesting register trademark Register trademark Register product trademark use Total Trademark Fee Other Telephone installation&contract Internet installation&contract Total Other Total Pre-Operating Cost

146,000.00 572,000.00

Moody International

5,000.00 200.00 400.00 100.00 400.00 400.00 100.00 6,000.00 12,600.00

Maximun fee rate over 5 milion

Depand on each pages inspection Food and Drug adminisrtration

500.00 300.00 500.00 1,300.00 per product that use trademark

Free Free Free

589,300.00

51

Administration Cost
Employee salary Position Person Baht
General Manager Marketing Manger Accountant Sale Officer Operation Manager Warehouse Controller Transportation Labor head Packaging Maid Labor
Total salary expenses 1 1 1 3 1 1 6 1 4 3 7 20,000 17,000 15,000 8,000 15,000 12,000 9,000 12,500 8,500 7,500 8,100

Total
20,000 17,000 15,000 24,000 0 15,000 12,000 54,000 12,500 34,000 22,500 56,700

Note

Add Commission 5.25 % not include in salary

May be less depend on order but the rate is 270/day

282,700

52

Rental Fee
The factory will be built on the land that we rent, but rental fee in only the land for 20 years Each year will be 100,000 Baht per year Total cost: 100,000 x 20 years = 2,000,000 Baht

4.4.3 Stationary Expenses


A4 Paper Fax Paper Clip File Sicssor Cutter Cutter Board Stamp Pad Stamp Pad Ink Paper Penteration Stamp card Max Staple max Bill spit Paper clip Ball pen Highligh pen Liquid paper Ruler Pencil Pencil lead Eraser Paid Stamp Date Stamp Correct Document Stamp Gule Plug Total 10 5 24 12 12 6 12 12 4 5 6 1 6 6 10 5 12 12 12 12 12 3 3 3 5 8 465.00 225.00 76.00 75.00 25.00 120.00 29.00 15.00 275.00 120.00 57.00 117.00 20.00 45.00 159.00 129.00 45.00 24.00 59.00 49.00 45.00 45.00 63.00 24.00 325.00 275.00 4,650.00 1,125.00 1,824.00 900.00 300.00 720.00 348.00 180.00 1,100.00 600.00 342.00 117.00 120.00 270.00 1,590.00 645.00 540.00 288.00 708.00 588.00 540.00 135.00 189.00 72.00 1,625.00 2,200.00 21,716.00

53

Estimated Electricity Expense

54

Depreciation

55

56

57

58

59

Investment Cost Core Building


Detail
Land renting/year Office structure Factory structure Wareroom Exterior decoration Interior decoration Tile work Color work Outer Path&Packing cement Clear glass & aluminum Electric&water system Watt meter&Water meter Total

Number
20 1 1 1 1 1 200 80

Price/Unit
100,000.00 300,000.00 400,000.00 100,000.00 35,000.00 100,000.00 115.00 320.00

Total
2,000,000.00 300,000.00 400,000.00 100,000.00 35,000.00 100,000.00 23,000.00 25,600.00

Dep. period.
20 20 20 20 20 20 20

Annual Dep.
15,000.00 20,000.00 5,000.00 1,750.00 5,000.00 1,150.00 1,280.00

100 3 2 2

360.00 85,000.00 60,000.00 50,000.00

36,000.00 255,000.00 120,000.00 100,000.00 3,494,600.00

20 20 20 20

1,800.00 12,750.00 6,000.00 5,000.00

60

Vehicle Detail
Suzuki Carry Toyata Vios Total

Number
6 1

Price/Unit
356,000.00 549,000.00

Total
2,136,000.00 549,000.00 2,685,000.00

Dep. period.
10 10

Annual Dep.
213,600.00 54,900.00

61

Office Equipment Dep. period.


20 20 20 20 20 20 20 20 5 5 10 10 20 10 10 10 20 20 10 10 10 10 10

Detail
Desk L Desk Locker Cabinet Chair Meeting Table Sofa TV Shelve Computer Printer Fax Copy Calculator Paper monster Clocking Home Phone Document Shelves Plug Ventilators Wall Electrical Fans Air Condition Samsung LCD TV CCTV 1 set/8 cam Total

Number
2 4 2 1 12 1 2 2 6 3 1 1 6 2 1 2 3 2 3 8 4 2 1

Price/Unit
4,990.00 2,200.00 7,380.00 3,700.00 1,050.00 20,300.00 6,900.00 1,500.00 15,879.00 2,550.00 3,750.00 9,900.00 515.00 1,990.00 7,590.00 1,490.00 485.00 275.00 1,150.00 2,150.00 28,900.00 17,900.00 25,500.00

Total
9,980.00 8,800.00 14,760.00 3,700.00 12,600.00 20,300.00 13,800.00 3,000.00 95,274.00 7,650.00 3,750.00 9,900.00 3,090.00 3,980.00 7,590.00 2,980.00 1,455.00 550.00 3,450.00 17,200.00 115,600.00 35,800.00 25,500.00 420,709.00

Annual Dep.
499.00 440.00 738.00 185.00 630.00 1,015.00 690.00 150.00 19,054.80 1,530.00 375.00 990.00 154.50 398.00 759.00 298.00 72.75 27.50 345.00 1,720.00 11,560.00 3,580.00 2,550.00

62

Kitchen Equipment Dep. period.


10 5 5 5 20 20 20

Detail
Refrigerator Strainer Kettle Microwave Kitchen Sink Sink Table set Total

Number
1 1 1 1 1 1 1

Price/Unit
6,050.00 4,990.00 895.00 2,790.00 11,400.00 3,900.00 3,500.00

Total
6,050.00 4,990.00 895.00 2,790.00 11,400.00 3,900.00 3,500.00 33,525.00

Annual Dep.
605.00 998.00 179.00 558.00 570.00 195.00 175.00

Bathroom Dep. period.


10 10 10 10 10 5

Detail
Set of Sanitary ware KARAT Chamber pot Faucet Mirror Door Exhaust fans Total

Number
3 3 3 3 3 3

Price/Unit
3,250.00 1,999.00 195.00 155.00 3,700.00
1,150.00

Total
9,750.00 5,997.00 585.00 465.00 11,100.00 3,450.00 31,347.00

Annual Dep.
975.00 599.70 58.50 46.50 1,110.00 690.00

63

Machine Dep. period.


5 7

Detail
Filter Press Machine Cold Press Machine Total

Number
5 10

Price/Unit
25,000.00 100,000.00

Total
125,000.00 1,000,000.00 1,125,000.00

Annual Dep.
25,000.00 142,857.14

Total Investment Cost

7,790,181.00

64

Chapter 5 Operation Cost

65

5.1 Operation process state


Farmers to Rice Mill (Paddy)

Rice Bran from milling

Cold Press Machine> Get raw rice bran oil

Precipitation (48 hours)

10 Microns Paper (Filter by 10 microns for 48 hours)

Filter Press Machine (With 0.25 microns filter)

Seal rice bran oil in plastic bag (2 liter bag)

Capsuling at Bangkok factory (sent capsule back to company comcompany)

Load into package with label (Set lot number when we store)

Store in warehouse (Deal with retailer and be ready for transportation

Deliver to retailers and finish payment transection

66

Cost of goods sold per unit of product


INFO Raw Material Japanese Rice Bran oil Capsule packing Packaging Manufacturing Overhead Supplies, Carrying, ordering cost Transportation OH. Raw material OH. Total Cost/Baht 28 60 35 15 9 96 243

Operation
Belong to production process, there will be start with raw material providing by main business partner which is Kurk Rice Mill who is supporter in Raw Rice Bran for cold pressing. Kurk Rice Mill mention that there paddy origin which they get is from farmers who are in Kurk Rice Mill contract farming project. We already contract Kurk rice mill in order to get cost advantage of raw material. Under control of Kurk Rice Mill in case of using fertilizer by farmer so we can trust that the raw material is safe for consumer and also diversify the risk on raw material shortage by separate contract farming zones as many as they can to avoid natural disaster affect. In case of raw material shortage, Kurk Rice Mill also has business partners and specific team who is only handled for seeking raw material. Take rice bran into cold press machine within 6hours after milling to keep product fresh, nutrient and acid value which is the one that most hard to control in the processing. To maintain acid value in cold pressing process is using only fresh bran so that is why we need to press rice bran oil within 6 hours after milling. After we get raw rice bran oil is precipitation stage. We have to wait for precipitation of raw rice bran oil for 48 hours to get into next step. From 48 hours of precipitation, then rice bran oil we get will pass through 10 microns filter paper for 48 hours to be ready for 0.25 microns filter press machine. Next is after filter press machine stage were pass by is going to be pack into 2 liters seal bag. We will sent 2 liters bag of rice bran oil to capsuled factory in Bangkok then theyll sent us back those capsuled rice bran oil. When we get those capsuled, well load those capsuled into final packaging to be ready for transfer to retail stores. For final products which are waiting for delivering to retail stores, they should be store in our warehouse and collecting lot number before delivering. For order receiving, in our office directly contact with retail stores and transportation burden under our respond. We provide transportation for those retailers in every route.

67

Chapter 6 Administration Cost

68

6.1 Management Analyses


Organization Management Vantage Company is driven to be limited partnership company by register with Commercial Affairs in Chiang Rai with 5 partners for 1,600 baht fee. After we register to be limited company, we have to pay for corporate income tax. Vantage Company provides Japanese rice bran oil to distribute in domestic in the form of capsule. In packaging in capsule we have to ask for food and drug administration for certification. 5 partnerships of Vantage Company includes with 1. Kurk Kongthong 2. Krisadaphong Saengsawang 3. Phudit Petchthong 4. Wichanon Fongtrakul 5. Siwanart Suwanshoksakul President Vice President Vice President Vice President Vice President

From 5 partners we agreed to set Mr.Kurk kongthong to be the manager of Vantage Company, due to Mr.kurk kongthong is holding 40% of share in company and each others hold for 15% and he also coordinates for food and drug administrative in Bangkok and commercial affair in Chiangrai. We focus on being limited partnership and expand market in the worldwide.

69

6.2 Organization Chart

General Manager (1 Position)

Marketing Manager (1 Position)

Accountant (1 Position)

Operation Manager (1 Position)

Salesperson (3 Positions)

Labor Head (1 Position)

Warehouse (1 Position)

Transportation (6 Position)

Maid (3 Position)

Labor (7 Position)

Packaging (4 Position)

70

People in organization
Position: General Manager Task -Oversee and coordinate all departments. Characteristic - Male/Female, Age 25 up- Bachelor degree up and work experience must more than 2years - Can use with best Microsoft Office such as Word, Excel - Have good management skill and good relationship

Marketing Manager Task Manage and coordinate all marketing, advertising and promotional staff and activities conduct market research to determine market requirements for existing and future products analysis of customer research, current market conditions and competitor information develop and implement marketing plans and projects for new and existing products manage the productivity of the marketing plans and projects monitor, review and report on all marketing activity and results determine and manage the marketing budget deliver marketing activity within agreed budget develop pricing strategy liaison with media and advertising

Characteristic - Male/Female, Age 25 up- Bachelor degree of Marketing and related field - Work experience must more than 2years. - Can use with best Microsoft Office such as Word, Excel - Have good management skill and good relationship

71

Position: Accountant Tasks


compile and analyze financial information to prepare financial statements including monthly and annual accounts ensure financial records are maintained in compliance with accepted policies and procedures ensure all financial reporting deadlines are met prepare financial management reports ensure accurate and timely monthly, quarterly and year end close establish and monitor the implementation and maintenance of accounting control procedures resolve accounting discrepancies and irregularities continuous management and support of budget and forecast activities monitor and support taxation issues develop and maintain financial data bases financial audit preparation and coordinate the audit process ensure accurate and appropriate recording and analysis of revenues and expenses analyze and advise on business operations including revenue and expenditure trends, financial commitments and future revenues analyze financial information to recommend or develop efficient use of resources and procedures, provide strategic recommendations and maintain solutions to business and financial problems

Characteristics - Female, Age 24-30- Graduated high vocational certificate or bachelor degree in accountmajor - More than 1-2 year of work experience that relate to finance - Computer skill especially Excel and Express - Can analysis the liquidity and financial of company -Be carefully detailed person and good understanding the principles of financial and accounting. - Have patience, enthusiasm and integrity. - To be honest on work Position: Operation Manager Task: oversee the warehouse
Coordinate with other departments

72 Characteristic -Male, age more than 25 -Be a good planer -Good making decision Position: Salesperson Position: Task - Sell product - Contact with retailers and customers Characteristic - Male/Female, more than 25 years old. - Good looking. - Have communication skill -Talkative

Position: Warehouse Officer Task: oversee the warehouse


Check the product quality Characteristic -Male, age 20-25 -Have quality check skill -Honest Position: Truck driver

Task To drive truck for shipping goods on time


Characteristic

Be on time High responsibility Expert in driving car Easy to go anywhere Position: Filter Task -To control the oil pressing machine
Characteristic

-Male more than 25 years old -Can work hard

73

Position: Packaging staff Task -To control the packaging of raw oil -To coordinate with outsourcer
Characteristic

-Male more than 25 years old -Can work hard Position: Maid Task -To clean office
Characteristic

-Female more than 25 years old

74

6.3 Administration Cost 6.3.1 Employee salary Position


General Manager Marketing Manger Accountant Sale Officer Operation Manager Warehouse Controller Transportation Labor head Packaging Maid Labor
Total salary expenses

Person
1 1 1 3 1 1 6 1 4 3 7

Baht
20,000 17,000 15,000 8,000 15,000 12,000 9,000 12,500 8,500 7,500 8,100

Total
20,000 17,000 15,000 24,000 15,000 12,000 54,000 12,500 34,000 22,500 56,700 282,700

Note

Add Commission 5.25 % not include in salary

May be less depend on order but the rate is 270/day

6.3.2 Rental Fee


The factory will be built on the land that we rent, but rental fee in only the land for 20 years. Each year will be 100,000 Baht per month Total cost: 100,000 x 20 years = 2,000,000 Baht

75

6.3.3 Stationary Expenses


A4 Paper Fax Paper Clip File Sicssor Cutter Cutter Board Stamp Pad Stamp Pad Ink Paper Penteration Stamp card Max Staple max Bill spit Paper clip Ball pen Highligh pen Liquid paper Ruler Pencil Pencil lead Eraser Paid Stamp Date Stamp Correct Document Stamp Gule Plug Total 10 5 24 12 12 6 12 12 4 5 6 1 6 6 10 5 12 12 12 12 12 3 3 3 5 8 465.00 225.00 76.00 75.00 25.00 120.00 29.00 15.00 275.00 120.00 57.00 117.00 20.00 45.00 159.00 129.00 45.00 24.00 59.00 49.00 45.00 45.00 63.00 24.00 325.00 275.00 4,650.00 1,125.00 1,824.00 900.00 300.00 720.00 348.00 180.00 1,100.00 600.00 342.00 117.00 120.00 270.00 1,590.00 645.00 540.00 288.00 708.00 588.00 540.00 135.00 189.00 72.00 1,625.00 2,200.00 21,716.00

6.3.4 Electronic Expense Estimated


22 - 33 Kilowatt for small business Electronic use 1,500 unit x 3.4230 Add service charge Add VAT 7% Total electronic expense = 5,134.50 312.24 381.27 5,828.01 Baht Baht Baht Baht / month

76

6.3.5 Water Expense


Estimate to use 500 liters per month for small business 500 x 0.900 = 450.00 Baht + Service charge = 60.00 Baht + VAT 7% = 35.7 Baht Total water expense per month = 545.70 Baht / month

6.3.6 3BB Internet and telephone


6 Mbps + IPTV + VAT 7 % Telephone Average 500 min/month + VAT 7% Total internet and telephone expense = = = = = 1,090.00 76.30 549.00 38.43 1,753.73 Baht Baht Baht Baht Baht/month

77

6.3.7 Cost Explanation


1. Employee salary There are 29 employees in the organization. The total salary that we have to pay is 282,700 baht a month. For sale commission is 5.25 percents but not includes in salary. Then, the total salary per year is 3,392,400 baht, and 16,962,000 for 5years excluded any bonuses.

2. Rental Fee The rental fee for land is 100,000 baht a year. We rent the land for 20 years, so we have to pay 2,000,000 for 20 years rental fee of the land.

3. Stationary Expenses For the stationary expense the total cost about 21,716 baht most of them can be used in long term such as, cutter, cutter board, stamp pad, max, ruler and plug they are not broken down easily. Some of them are one time use such as paper, ink, stamp and glue, but paper can be reused.

4. Estimated Electronic Expense Our company is small business there are only 22-33 kilowatts. Monthly use is about 1,500 units, the price per unit is 3.4230 baht add service charge and tax the total amount of electronic expense is about 5,828-6,000 baht. For five year the estimated electricity cost is about 349,680.06 baht. Due to the season always changes our electricity expense also changes follow as the season. The first quarter of the year is the last winter and beginning of summer in January and February still cold we spend a few electricity, but in March is beginning of summer we need to turn on the air conditioner that cause higher units of electricity. The second quarter begins with April, May and June which are summer. We still ne air conditioner to adjust office environment. The third quarter, July, August and September are raining season there is no need to use air conditioner.

78

The fourth quarter October, November and December is becoming winter again we do not air conditioner because, the air is fresh. For the second year, there will be more productions of product because of expanding of the market and well known. For the third to fifth years, the production will stable at the similar units.

***Note that this calculation is only estimation***.

5. Water Expense Due to our activities does not need to use more water. The estimated units that we will consume is about 500 units a month the price per unit is 0.9 Add service charge 60 baht and VAT for 7% or 35.7 baht, the total water expense per month is 545.7, 6,548.40 per year and 32,742 baht in 5 years.

6. Internet and Telephone expense Internet we use 3BB internet for 6 Mbps+IPTV that cost 1,090 baht per month add VAT 7%, the total internet expense will be 1,166.3 baht per month, 69,978 baht for 5years. Telephone expense average spend is 500 minutes per month which cost about 549 baht plus 7 % of VAT is 587.43 per month and 35,245.8 baht in 5years. So, Total internet and telephone expenses will be 1,753.73 per month, 21,044.76 per year and 105,223.80 for five years.

79

6.3.8 Pre-Operating Cost Landscape and Drawing expense Landscape expense cost about 800 baht per page and the infrastructure drawing cost 600 baht per A3page, for the Project planning for cover GMP cost 2,000 baht this is standardize for GMP codex. Certification and Inspection GMP and GMP codex for exportation is 100,000 baht, GMP auditor cost 70,000 baht, Halal and Halal auditor cost 110,000 baht. Though GMP and Halal certification is expensive but they help our product to attract more customers. Registration fee The registration fee for partnership cost 12,600 baht all is paid for one time. Registration to be partnership causes our company to be legal in Thailand and also make confidence to stakeholders. Trademark fees Trademark fees expense is 1,300 baht .this expense will help our product to get in the market easily. In conclusion all cost is important for the company, especially operating cost to operate to company activities to get higher profits and lunch business run smoothly at the beginning. For other costs mostly is variable cost that varies following the times we spend it.

80

81

Chapter 7 Financial

82

Net Sales Cost of good sold Gross profit Expenses Admin&operation Exp. Depreciation Exp. Marketing Exp. Other Exp. EBIT Taxes (30%) Net income

Jan 855,000 218700 636,300

Feb 855,000 218700 636,300

Mar 855,000 218700 636,300

Vantage Income statement For the ended of the month at year 2011 Apr May Jun Jul 855,000 855,000 855,000 855,000 218700 218700 218700 218700 636,300 636,300 636,300 636,300

Aug 1,140,000 291600 848,400

Sep 855,000 218700 636,300

Oct 855,000 218700 636,300

Nov 855,000 218700 636,300

Dec 1,140,000 291600 848,400

Total Amont 10830000 2770200 8059800

328903.78 47,134.03 95,000 1666.67 163,595.53 54,258.66 109,336.87

328903.78 47,134.03 54,500 1666.67 204,095.53 54,258.66 149,836.87

328903.78 47,134.03 54,500 1666.67 204,095.53 54,258.66 149,836.87

328903.78 47,134.03 53,000 1666.67 205,595.53 54,258.66 151,336.87

328903.78 47,134.03 53,000 1666.67 205,595.53 54,258.66 151,336.87

328903.78 47,134.03 53,000 1666.67 205,595.53 54,258.66 151,336.87

328903.78 47,134.03 243,000 1666.67 15,595.53 54,258.66 38,663.13

328903.78 47,134.03 296,000 1666.67 174,695.53 54,258.66 120,436.87

328903.78 47,134.03 53,000 1666.67 205,595.53 54,258.66 151,336.87

328903.78 47,134.03 53,000 1666.67 205,595.53 54,258.66 151,336.87

328903.78 47,134.03 53,000 1666.67 205,595.53 54,258.66 151,336.87

328903.78 47,134.03 296,000 1666.67 174,695.53 54,258.66 120,436.87

3946845.30 565608.39 1357000 20,000 2170346.31 651,103.89 1519242.41

83

Net Sales Cost of good sold Gross profit Expenses Admin&operation Exp. Depreciation Exp. Marketing Exp. Other Exp. EBIT Taxes (30%) Net income

Jan 1,092,500 279450 813,050

Feb 1,092,500 279450 813,050

Mar 1,092,500 279450 813,050

Vantage Income statement For the ended of the month at year 2012 Apr May Jun Jul 1,092,500 1,092,500 1,092,500 1,092,500 279450 279450 279450 279450 813,050 813,050 813,050 813,050

Aug 1,282,500 328050 954,450

Sep 1,092,500 279450 813,050

Oct 1,092,500 279450 813,050

Nov 1,092,500 279450 813,050

Dec 1,282,500 328050 954,450

Total Amont 13490000 3450600 10039400

328903.78 47,134.03 71,000 1666.67 364,345.53 111,129.91 253,215.62

328903.78 47,134.03 51,000 1666.67 384,345.53 111,129.91 273,215.62

328903.78 47,134.03 51,000 1666.67 384,345.53 111,129.91 273,215.62

328903.78 47,134.03 51,000 1666.67 384,345.53 111,129.91 273,215.62

328903.78 47,134.03 51,000 1666.67 384,345.53 111,129.91 273,215.62

328903.78 47,134.03 51,000 1666.67 384,345.53 111,129.91 273,215.62

328903.78 47,134.03 71,000 1666.67 364,345.53 111,129.91 253,215.62

328903.78 47,134.03 251,375 1666.67 325,370.53 111,129.91 214,240.62

328903.78 47,134.03 51,000 1666.67 384,345.53 111,129.91 273,215.62

328903.78 47,134.03 54,000 1666.67 381,345.53 111,129.91 270,215.62

328903.78 47,134.03 54,000 1666.67 381,345.53 111,129.91 270,215.62

328903.78 47,134.03 254,375 1666.67 322,370.53 111,129.91 211,240.62

3946845.30 565608.39 1061750 20,000.00 4445196.31 1,333,558.89 3111637.41

84

Net Sales Cost of good sold Gross profit Expenses Admin&operation Exp. Depreciation Exp. Marketing Exp. Other Exp. EBIT Taxes (30%) Net income

Jan 1,140,000 291600 848,400

Feb 855,000 218700 636,300

Mar 760,000 194400 565,600

Vantage Income statement For the ended of the month at year 2013 Apr May Jun Jul 665,000 665,000 665,000 712,500 170100 170100 170100 182250 494,900 494,900 494,900 530,250

Aug 1,187,500 303750 883,750

Sep 712,500 182250 530,250

Oct 617,500 157950 459,550

Nov 617,500 157950 459,550

Dec 1,187,500 303750 883,750

Total Amont 9785000 2502900 7282100

328903.78 47,134.03 73,000 1666.67 397,695.53 46,809.91 350,885.62

328903.78 47,134.03 41,000 1666.67 217,595.53 46,809.91 170,785.62

328903.78 47,134.03 37,000 1666.67 150,895.53 46,809.91 104,085.62

328903.78 47,134.03 33,000 1666.67 84,195.53 46,809.91 37,385.62

328903.78 47,134.03 33,000 1666.67 84,195.53 46,809.91 37,385.62

328903.78 47,134.03 33,000 1666.67 84,195.53 46,809.91 37,385.62

328903.78 47,134.03 55,000 1666.67 97,545.53 46,809.91 50,735.62

328903.78 47,134.03 233,125 1666.67 272,920.53 46,809.91 226,110.62

328903.78 47,134.03 35,000 1666.67 117,545.53 46,809.91 70,735.62

328903.78 47,134.03 34,000 1666.67 47,845.53 46,809.91 1,035.62

328903.78 47,134.03 34,000 1666.67 47,845.53 46,809.91 1,035.62

328903.78 47,134.03 236,125 1666.67 269,920.53 46,809.91 223,110.62

3946845.30 565608.39 877250 20,000.00 1872396.31 561,718.89 1310677.41

85

Net Sales Cost of good sold Gross profit Expenses Admin&operation Exp. Depreciation Exp. Marketing Exp. Other Exp. EBIT Taxes (30%) Net income

Jan 760,000 194400 565,600

Feb 570,000 145800 424,200

Mar 570,000 145800 424,200

Vantage Income statement For the ended of the month at year 2014 Apr May Jun Jul 570,000 570,000 570,000 712,500 145800 145800 145800 182250 424,200 424,200 424,200 530,250

Aug 712,500 182250 530,250

Sep 665,000 170100 494,900

Oct 570,000 145800 424,200

Nov 570,000 145800 424,200

Dec 760,000 194400 565,600

Total Amont 7600000 1944000 5656000

328903.78 47,134.03 102,700 1666.67 85,195.53 6,178.66 79,016.87

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 97,825 1666.67 54,720.53 6,178.66 48,541.87

328903.78 47,134.03 77,825 1666.67 74,720.53 6,178.66 68,541.87

328903.78 47,134.03 72,950 1666.67 44,245.53 6,178.66 38,066.87

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 63,200 1666.67 -16,704.47 6,178.66 22,883.13

328903.78 47,134.03 82,700 1666.67 105,195.53 6,178.66 99,016.87

3946845.30 565608.39 876400 20,000.00 247146.31 74,143.89 173002.41

86

Net Sales Cost of good sold Gross profit Expenses Admin&operation Exp. Depreciation Exp. Marketing Exp. Other Exp. EBIT Taxes (30%) Net income Addition 2016 cost of good sold

Jan 1,021,250 261,225 760,025

Feb 1,021,250 261,225 760,025

Mar 1,021,250 261,225 760,025

Vantage Income statement For the ended of the month at year 2015 Apr May Jun Jul 1,021,250 1,021,250 1,021,250 1,021,250 261,225 261,225 261,225 261,225 760,025 760,025 760,025 760,025

Aug 1,306,250 334,125 972,125

Sep 1,021,250 261,225 760,025

Oct 1,021,250 261,225 760,025

Nov 1,021,250 261,225 760,025

Dec 1,306,250 334,125 972,125

Total Amont 12825000 3280500 9544500

328903.78 47,134.03 180,575 1666.67 201,745.53 73,953.66 127,791.87 Jan 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Feb 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Mar 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Apr 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 May 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Jun 285,525

328903.78 47,134.03 180,575 1666.67 201,745.53 73,953.66 127,791.87 Jul 285,525

328903.78 47,134.03 204,075 1666.67 390,345.53 73,953.66 316,391.87 Aug 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Sep 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Oct 285,525

328903.78 47,134.03 160,575 1666.67 221,745.53 73,953.66 147,791.87 Nov 285,525

328903.78 47,134.03 204,075 1666.67 390,345.53 73,953.66 316,391.87 Dec 285,525

3946845.30 565608.39 2053900 20,000.00 2958146.31 887,443.89 2070702.41

3426300.00

87

Vantage Balance Sheet For ended of the month at year 2011


JAN Assets Current Asset Cash Inventories Total Current Asset Fix Asset All Core Building,Plant All Equipment&Machinery All intangible assets Transportation equipment Less: all depreciation Total Fixed Assets Total Assets Liability & Equity Owner's Payback Owner's Capital Total Liability & Equity 138,259 8,609,337 8,471,078 187,122 8,620,915 8,433,792 187,122 8,583,629 8,396,507 188,547 8,547,844 8,359,296 188,547 8,510,633 8,322,086 188,547 8,473,423 8,284,875 4,585 8,246,212 8,241,628 162,655 8,362,064 8,199,409 188,547 8,350,746 8,162,199 188,547 8,313,536 8,124,988 185,085 8,276,325 8,091,241 159,769 8,211,678 8,051,908 3,494,600 1,610,581 589,300 2,685,000 47,134 8,332,347 8,471,078 3,494,600 1,610,581 589,300 2,685,000 94,268 8,285,213 8,433,792 3,494,600 1,610,581 589,300 2,685,000 141,402 8,238,079 8,396,507 3,494,600 1,610,581 589,300 2,685,000 188,536 8,190,945 8,359,296 3,494,600 1,610,581 589,300 2,685,000 235,670 8,143,811 8,322,086 3,494,600 1,610,581 589,300 2,685,000 282,804 8,096,677 8,284,875 3,494,600 1,610,581 589,300 2,685,000 329,938 8,049,543 8,241,628 3,494,600 1,610,581 589,300 2,685,000 377,072 8,002,409 8,199,409 3,494,600 1,610,581 589,300 2,685,000 424,206 7,955,275 8,162,199 3,494,600 1,610,581 589,300 2,685,000 471,340 7,908,141 8,124,988 3,494,600 1,610,581 589,300 2,685,000 518,474 7,861,007 8,091,241 3,494,600 1,610,581 589,300 2,685,000 565,608 7,813,873 8,051,908 127,795.8 0 10935 138,730.8 0 137,644.3 4 10935 148,579.3 4 147,492.8 9 10935 158,427.8 9 157,416.4 3 10935 168,351.4 3 167,339.9 8 10935 178,274.9 8 177,263.5 2 10935 188,198.5 2 177,504.8 2 14580 192,084.8 2 186,065.6 1 10935 197,000.6 1 195,989.1 6 10935 206,924.1 6 205,912.7 0 10935 216,847.7 0 215,654.0 0 14580 230,234.0 0 224,062.9 2 13972.5 238,035.4 2 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

88

Vantage Balance Sheet For ended of the month at year 2012


JAN Assets Current Asset Cash Inventories Total Current Asset Fix Asset All Core Building,Plant All Equipment&Machinery All intangible assets Transportation equipment Less: all depreciation Total Fixed Assets Total Assets Liability & Equity Owner's Payback Owner's Capital Total Liability & Equity 297,346 8,305,12 4 8,007,77 7 304,332 8,280,99 3 7,976,66 1 304,332 8,249,877 7,945,544 304,332 8,218,760 7,914,428 304,332 8,187,643 7,883,311 304,332 8,156,527 7,852,195 283,024 8,105,410 7,822,387 250,614 8,036,627 7,786,013 304,332 8,059,229 7,754,896 301,482 8,025,112 7,723,630 299,174 7,993,845 7,694,672 247,187 7,905,912 7,658,725 247,187 7,905,912 7,658,725 3,494,60 0 1,610,58 1 589,300 2,685,00 0 612,742 7,766,73 9 8,007,77 7 3,494,60 0 1,610,58 1 589,300 2,685,00 0 659,876 7,719,60 5 7,976,66 1 3,494,600 1,610,581 589,300 2,685,000 707,010 7,672,471 7,945,544 3,494,600 1,610,581 589,300 2,685,000 754,145 7,625,336 7,914,428 3,494,600 1,610,581 589,300 2,685,000 801,279 7,578,202 7,883,311 3,494,600 1,610,581 589,300 2,685,000 848,413 7,531,068 7,852,195 3,494,600 1,610,581 589,300 2,685,000 895,547 7,483,934 7,822,387 3,494,600 1,610,581 589,300 2,685,000 942,681 7,436,800 7,786,013 3,494,600 1,610,581 589,300 2,685,000 989,815 7,389,666 7,754,896 3,494,600 1,610,581 589,300 2,685,000 1,036,949 7,342,532 7,723,630 3,494,600 1,610,581 589,300 2,685,000 1,084,083 7,295,398 7,694,672 3,494,600 1,610,581 589,300 2,685,000 1,131,217 7,248,264 7,658,725 3,494,600 1,610,581 589,300 2,685,000 1,131,217 7,248,264 7,658,725 227,066. 41 13972.5 241038.9 1 243,083. 89 13972.5 257056.3 9 259,101.3 8 13972.5 273073.8 8 275,118.8 6 13972.5 289091.3 6 291,136.3 4 13972.5 305108.8 4 307,153.8 2 13972.5 321126.3 2 322,049.8 1 16402.5 338452.3 1 335,240.0 4 13972.5 349212.5 4 351,257.5 2 13972.5 365230.0 2 367,125.0 0 13972.5 381097.5 0 382,870.9 9 16402.5 399273.4 9 395,880.8 4 14580 410460.8 4 395,880.84 14,580.00 410,460.84 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Ended amont

89 ntage Balance Sheet For ended of the month at year 2013


JAN Assets Current Asset Cash Inventories Total Current Asset Fix Asset All Core Building,Plant All Equipment&Machinery All intangible assets Transportation equipment Less: all depreciation Total Fixed Assets Total Assets Liability & Equity Owner's Payback Owner's Capital Total Liability & Equity 381,581 8,009,61 1 7,628,02 9 208,178 7,798,81 5 7,590,63 7 144,813 7,694,723 7,549,910 80,294 7,587,295 7,507,002 80,294 7,544,387 7,464,094 79,717 7,501,479 7,421,763 87,205 7,472,498 7,385,293 265,354 7,611,404 7,346,050 113,130 7,416,786 7,303,655 45,761 7,304,691 7,258,930 38,836 7,259,966 7,221,130 261,927 7,444,240 7,182,314 261,927 7,444,240 7,182,314 3,494,60 0 1,610,58 1 589,300 2,685,00 0 1,178,35 1 7,201,13 0 7,628,02 9 3,494,60 0 1,610,58 1 589,300 2,685,00 0 1,225,48 5 7,153,99 6 7,590,63 7 3,494,600 1,610,581 589,300 2,685,000 1,272,619 7,106,862 7,549,910 3,494,600 1,610,581 589,300 2,685,000 1,319,753 7,059,728 7,507,002 3,494,600 1,610,581 589,300 2,685,000 1,366,887 7,012,594 7,464,094 3,494,600 1,610,581 589,300 2,685,000 1,414,021 6,965,460 7,421,763 3,494,600 1,610,581 589,300 2,685,000 1,461,155 6,918,326 7,385,293 3,494,600 1,610,581 589,300 2,685,000 1,508,289 6,871,192 7,346,050 3,494,600 1,610,581 589,300 2,685,000 1,555,423 6,824,058 7,303,655 3,494,600 1,610,581 589,300 2,685,000 1,602,557 6,776,924 7,258,930 3,494,600 1,610,581 589,300 2,685,000 1,649,691 6,729,790 7,221,130 3,494,600 1,610,581 589,300 2,685,000 1,696,825 6,682,656 7,182,314 3,494,600 1,610,581 589,300 2,685,000 1,696,825 6,682,656 7,182,314 415,964. 08 10935 426899.0 8 426,920. 81 9720 436640.8 1 434,542.5 4 8505 443047.5 4 438,768.5 2 8505 447273.5 2 442,994.5 1 8505 451499.5 1 447,190.1 1 9112.5 456302.6 1 451,779.8 5 15187.5 466967.3 5 465,745.8 3 9112.5 474858.3 3 471,700.0 6 7897.5 479597.5 6 474,108.5 4 7897.5 482006.0 4 476,152.5 3 15187.5 491340.0 3 489,938.1 3 9720 499658.1 3 489,938.13 9,720.00 499,658.13 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Ended amont

90 Vantage Balance Sheet For ended of the month at year 2014


JAN Assets Current Asset Cash Inventories Total Current Asset Fix Asset All Core Building,Plant All Equipment&Machin ery All intangible assets Transportation equipment Less: all depreciation Total Fixed Assets Total Assets Liability & Equity Owner's Payback Owner's Capital Total Liability & Equity 122,152 7,261,331 7,139,179 23,038 7,116,296 7,093,257 23,038 7,070,374 7,047,336 23,038 7,024,453 7,001,415 23,038 6,978,531 6,955,493 21,307 6,932,610 6,911,303 90,892 6,959,845 6,868,953 110,469 6,937,495 6,827,025 82,095 6,865,092 6,782,997 23,038 6,760,114 6,737,076 20,730 6,714,192 6,693,463 135,669 6,792,479 6,656,810 135,669 6,792,47 9 6,656,81 0 496,367.1 8 7,290.00 503657.1 8 497,579.7 3 7,290.00 504869.7 3 498,792.2 7 7,290.00 506082.2 7 500,004.8 2 7,290.00 507294.8 2 501,217.3 6 7,290.00 508507.3 6 502,338.7 8 9,112.50 511451.28 507,122.5 8 9,112.50 516235.0 8 512,936.7 5 8,505.00 521441.7 5 517,257.5 4 7,290.00 524547.5 4 518,470.0 9 7,290.00 525760.0 9 519,561.1 3 9,720.00 529281.13 526,701.61 13,061.25 539762.86 526,701. 61 13,061.2 5 539,762. 86 3,494,60 0 1,610,58 1 589,300 2,685,00 0 2,262,43 4 6,117,04 7 6,656,81 0 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Ended amont

3,494,600 1,610,581 589,300 2,685,000 1,743,959 6,635,522 7,139,179

3,494,600 1,610,581 589,300 2,685,000 1,791,093 6,588,388 7,093,257

3,494,600 1,610,581 589,300 2,685,000 1,838,227 6,541,254 7,047,336

3,494,600 1,610,581 589,300 2,685,000 1,885,361 6,494,120 7,001,415

3,494,600 1,610,581 589,300 2,685,000 1,932,495 6,446,986 6,955,493

3,494,600 1,610,581 589,300 2,685,000 1,979,629 6,399,852 6,911,303

3,494,600 1,610,581 589,300 2,685,000 2,026,763 6,352,718 6,868,953

3,494,600 1,610,581 589,300 2,685,000 2,073,897 6,305,584 6,827,025

3,494,600 1,610,581 589,300 2,685,000 2,121,031 6,258,450 6,782,997

3,494,600 1,610,581 589,300 2,685,000 2,168,166 6,211,315 6,737,076

3,494,600 1,610,581 589,300 2,685,000 2,215,300 6,164,181 6,693,463

3,494,600 1,610,581 589,300 2,685,000 2,262,434 6,117,047 6,656,810

91

Vantage Balance Sheet For ended of the month at year 2015


JAN Assets Current Asset Cash Inventories Total Current Asset Fix Asset All Core Building,Plant
All Equipment&Machinery

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Ended amont

535,447.9 1 13,061.25 548509.1 6

545,194.2 0 13,061.25 558255.4 5

554,940.5 0 13,061.25 568001.7 5

564,686.7 9 13,061.25 577748.0 4

574,433.0 9 13,061.25 587494.3 4

584,179.38 13,061.25 597240.63

592,743.4 3 16,706.25 609449.6 8

611,101.9 7 13,061.25 624163.2 2

620,848.2 7 13,061.25 633909.5 2

630,594.5 6 13,061.25 643655.8 1

640,158.61 16,706.25 656864.86

658,456.40 14,276.25 672732.65

658,456.4 0 14,276.25 672,732.6 5

3,494,600 1,610,581 589,300 2,685,000 2,309,568 6,069,913 6,618,423

3,494,600 1,610,581 589,300 2,685,000 2,356,702 6,022,779 6,581,035

3,494,600 1,610,581 589,300 2,685,000 2,403,836 5,975,645 6,543,647

3,494,600 1,610,581 589,300 2,685,000 2,450,970 5,928,511 6,506,259

3,494,600 1,610,581 589,300 2,685,000 2,498,104 5,881,377 6,468,872

3,494,600 1,610,581 589,300 2,685,000 2,545,238 5,834,243 6,431,484

3,494,600 1,610,581 589,300 2,685,000 2,592,372 5,787,109 6,396,559

3,494,600 1,610,581 589,300 2,685,000 2,639,506 5,739,975 6,364,138

3,494,600 1,610,581 589,300 2,685,000 2,686,640 5,692,841 6,326,751

3,494,600 1,610,581 589,300 2,685,000 2,733,774 5,645,707 6,289,363

3,494,600 1,610,581 589,300 2,685,000 2,780,908 5,598,573 6,255,438

3,494,600 1,610,581 589,300 2,685,000 2,828,042 5,551,439 6,224,172

3,494,60 0 1,610,58 1 589,300 2,685,00 0 2,828,04 2 5,551,43 9 6,224,17 2

All intangible assets Transportation equipment Less: all depreciation Total Fixed Assets Total Assets Liability & Equity Owner's Payback Owner's Capital Total Liability & Equity

166,180 6,784,602 6,618,423

185,180 6,766,214 6,581,035

185,180 6,728,827 6,543,647

185,180 6,691,439 6,506,259

185,180 6,654,051 6,468,872

185,180 6,616,663 6,431,484

162,717 6,559,276 6,396,559

348,812 6,712,951 6,364,138

185,180 6,511,930 6,326,751

185,180 6,474,543 6,289,363

181,717 6,437,155 6,255,438

347,658 6,571,830 6,224,172

347,658 6,571,83 0 6,224,17 2

92

Vantage Cash Flow Monthly cash flow activity in 2011


Cash Flow Activity Operating Activities Net Income Depreciation&Amoritization Decrease/Increase in inventories(uses) Net cash flow - Operating activities Investing Activities Investment in pre-operation(uses) Investment in fixed assets(uses) Net cash flow - Investing activities Financing Activities Investment by owner Investor payback(uses) Net cash flow - Financing Total monthly end cash flows Increase/Decrease in Cash Cash at end of month
127,795.80 8,500,000 138259.10 55 8,361,741 187122.3 56 -187,122 187122.3 56 -187,122 188547.3 56 -188,547 188547.3 56 -188,547 188547.3 56 -188,547 4584.605 53 -4,585 162655.1 06 -162,655 188547.3 56 -188,547 188547.3 56 -188,547 185084.6 06 -185,085 159769.4 81 -159,769 8500000 1967334.3 91 6532665.6 09 0 127,795.80 9,848.55 127,795.8 0 137,644.3 4 9,848.55 137,644.3 4 147,492.8 9 9,923.55 147,492.8 9 157,416.4 3 9,923.55 157,416.4 3 167,339.9 8 9,923.55 167,339.9 8 177,263.5 2 241.30 177,263.5 2 177,504.8 2 8,560.80 177,504.8 2 186,065.6 1 9,923.55 186,065.6 1 195,989.1 6 9,923.55 195,989.1 6 205,912.7 0 9,741.30 205,912.7 0 215,654.0 0 8,408.92 215,654.0 0 224,062.9 2 8,408.92 215,654.00 224,062.92 589,300.00 7,790,181. 00 8,379,481. 00 589300 7790181 8379481 109,337 47,134.03 10935 145,535.90 149,837 47,134.03 0 196,970.9 0 149,837 47,134.03 0 196,970.9 0 151,337 47,134.03 0 198,470.9 0 151,337 47,134.03 0 198,470.9 0 151,337 47,134.03 0 198,470.9 0 -38,663 47,134.03 3645 4,825.90 120,437 47,134.03 -3645 171,215.9 0 151,337 47,134.03 0 198,470.9 0 151,337 47,134.03 0 198,470.9 0 151,337 47,134.03 3645 194,825.9 0 120,437 47,134.03 -607.5 168,178.4 0 1519242.4 14 565608.39 29 13,972.50
2,070,878.31

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Year 2011

93

Vantage Cash Flow Monthly cash flow activity in 2012


Cash Flow Activity Operating Activities Net Income Depreciation&Amoritization Decrease/Increase in inventories(uses) Net cash flow - Operating activities Investing Activities Investment in pre-operation(uses) Investment in fixed assets(uses) Net cash flow - Investing activities Financing Activities Investment by owner Investor payback(uses) Net cash flow - Financing Total monthly end cash flows Increase/Decrease in Cash Cash at end of month
297346.15 41 304332.1 68 304332.1 68 304332.1 68 304332.1 68 304332.1 68 283023.6 68 250614.4 18 304332.1 68 301482.1 68 299173.6 68 247187.2 93 0 3504820.37 7 3504820.37 7 253,216 47,134.03 0 300,349.65 273,216 47,134.03 0 320,349.6 5 273,216 47,134.03 0 320,349.6 5 273,216 47,134.03 0 320,349.6 5 273,216 47,134.03 0 320,349.6 5 273,216 47,134.03 0 320,349.6 5 253,216 47,134.03 2430 297,919.6 5 214,241 47,134.03 -2430 263,804.6 5 273,216 47,134.03 0 320,349.6 5 270,216 47,134.03 0 317,349.6 5 270,216 47,134.03 2430 314,919.6 5 211,241 47,134.03 -1822.5 260,197.1 5 3111637.41 4 565608.392 9 607.50 3,676,638.3 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year 2012

-297,346

-304,332

-304,332

-304,332

-304,332

-304,332

-283,024

-250,614

-304,332

-301,482

-299,174

-247,187

3,003.50 224,062.92 227,066.41

16,017.48 227,066.4 1 243,083.8 9

16,017.48 243,083.8 9 259,101.3 8

16,017.48 259,101.3 8 275,118.8 6

16,017.48 275,118.8 6 291,136.3 4

16,017.48 291,136.3 4 307,153.8 2

14,895.98 307,153.8 2 322,049.8 1

13,190.23 322,049.8 1 335,240.0 4

16,017.48 335,240.0 4 351,257.5 2

15,867.48 351,257.5 2 367,125.0 0

15,745.98 367,125.0 0 382,870.9 9

13,009.86 382,870.9 9 395,880.8 4

13,009.86 382,870.99 395,880.84

94

Vantage Cash Flow Monthly cash flow activity in 2013


Cash Flow Activity Operating Activities Net Income Depreciation&Amoritization Decrease/Increase in inventories(uses) Net cash flow - Operating activities Investing Activities Investment in pre-operation(uses) Investment in fixed assets(uses) Net cash flow - Investing activities Financing Activities Investment by owner Investor payback(uses) Net cash flow - Financing Total monthly end cash flows Increase/Decrease in Cash Cash at end of month
381581.41 8 208177.91 8 144812.91 8 80293.66 8 80293.66 8 79716.54 3 87204.91 8 265353.66 8 113130.41 8 45761.16 8 38835.66 8 261926.54 3 0 1787088.51 6 1787088.51 6 0 0 0 350,886 47,134.03 -3645 401,664.6 5 170,786 47,134.03 -1215 219,134.6 5 104,086 47,134.03 -1215 152,434.6 5 37,386 47,134.03 0 84,519.65 37,386 47,134.03 0 84,519.65 37,386 47,134.03 607.5 83,912.15 50,736 47,134.03 6075 91,794.65 226,111 47,134.03 -6075 279,319.6 5 70,736 47,134.03 -1215 119,084.6 5 1,036 47,134.03 0 48,169.65 1,036 47,134.03 7290 40,879.65 223,111 47,134.03 -5467.5 275,712.1 5 1310677.41 4 565608.392 9 -4,860.00 1,881,145.8 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year 2013

-381,581

-208,178

-144,813

-80,294

-80,294

-79,717

-87,205

-265,354

-113,130

-45,761

-38,836

-261,927

20,083.23 395,880.8 4 415,964.0 8

10,956.73 415,964.0 8 426,920.8 1

7,621.73 426,920.8 1 434,542.5 4

4,225.98 434,542.5 4 438,768.5 2

4,225.98 438,768.5 2 442,994.5 1

4,195.61 442,994.5 1 447,190.1 1

4,589.73 447,190.1 1 451,779.8 5

13,965.98 451,779.8 5 465,745.8 3

5,954.23 465,745.8 3 471,700.0 6

2,408.48 471,700.0 6 474,108.5 4

2,043.98 474,108.5 4 476,152.5 3

13,785.61 476,152.5 3 489,938.1 3

13,785.61 476,152.53 489,938.13

95

Vantage Cash Flow Monthly cash flow activity in 2014


Cash Flow Activity Operating Activities Net Income Depreciation&Amoritization Decrease/Increase in inventories(uses) Net cash flow - Operating activities Investing Activities Investment in preoperation(uses) Investment in fixed assets(uses) Net cash flow - Investing activities Financing Activities Investment by owner Investor payback(uses) Net cash flow - Financing Total monthly end cash flows Increase/Decrease in Cash Cash at end of month
122151.85 55 23038.35 55 23038.35 55 23038.35 55 23038.35 55 21306.98 05 90892.10 55 110469.2 31 82095.10 55 23038.35 55 20729.85 55 135669.1 68 0 698506.078 9 698506.078 9 79,017 47,134.03 -2430 128,580.90 -22,883 47,134.03 0 24,250.90 -22,883 47,134.03 0 24,250.90 -22,883 47,134.03 0 24,250.90 -22,883 47,134.03 0 24,250.90 -22,883 47,134.03 1822.5 22,428.40 48,542 47,134.03 0 95,675.90 68,542 47,134.03 -607.5 116,283.4 0 38,067 47,134.03 -1215 86,415.90 -22,883 47,134.03 0 24,250.90 -22,883 47,134.03 2430 21,820.90 99,017 47,134.03 3341.25 142,809.6 5 173002.413 9 565608.392 9 3,341.25 735,269.56

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Year 2014

0 0 0

-122,152

-23,038

-23,038

-23,038

-23,038

-21,307

-90,892

-110,469

-82,095

-23,038

-20,730

-135,669

6,429.05 489,938.13 496,367.18

1,212.55 496,367.1 8 497,579.7 3

1,212.55 497,579.7 3 498,792.2 7

1,212.55 498,792.2 7 500,004.8 2

1,212.55 500,004.8 2 501,217.3 6

1,121.42 501,217.3 6 502,338.7 8

4,783.80 502,338.7 8 507,122.5 8

5,814.17 507,122.5 8 512,936.7 5

4,320.80 512,936.7 5 517,257.5 4

1,212.55 517,257.5 4 518,470.0 9

1,091.05 518,470.0 9 519,561.1 3

7,140.48 519,561.1 3 526,701.6 1

7,140.48 519,561.13 526,701.61

96

Vantage Cash Flow Monthly cash flow activity in 2015


Cash Flow Activity Operating Activities Net Income Depreciation&Amoritization Decrease/Increase in inventories(uses) Net cash flow - Operating activities Investing Activities Investment in preoperation(uses) Investment in fixed assets(uses) Net cash flow - Investing activities Financing Activities Investment by owner Investor payback(uses) Net cash flow - Financing Total monthly end cash flows Increase/Decrease in Cash Cash at end of month
166179.60 55 185179.6 06 185179.6 06 185179.6 06 185179.6 06 185179.6 06 162716.8 56 348812.3 56 185179.6 06 185179.6 06 181716.8 56 347658.1 06 0 2503341.01 6 2503341.01 6 127,792 47,134.03 0 174,925.90 147,792 47,134.03 0 194,925.9 0 147,792 47,134.03 0 194,925.9 0 147,792 47,134.03 0 194,925.9 0 147,792 47,134.03 0 194,925.9 0 147,792 47,134.03 0 194,925.9 0 127,792 47,134.03 3645 171,280.9 0 316,392 47,134.03 -3645 367,170.9 0 147,792 47,134.03 0 194,925.9 0 147,792 47,134.03 0 194,925.9 0 147,792 47,134.03 3645 191,280.9 0 316,392 47,134.03 -2430 365,955.9 0 2070702.41 4 565608.392 9 1,215.00 2,635,095.8 1

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Year 2015

0 0 0

-166,180

-185,180

-185,180

-185,180

-185,180

-185,180

-162,717

-348,812

-185,180

-185,180

-181,717

-347,658

8,746.30 526,701.61 535,447.91

9,746.30 535,447.9 1 545,194.2 0

9,746.30 545,194.2 0 554,940.5 0

9,746.30 554,940.5 0 564,686.7 9

9,746.30 564,686.7 9 574,433.0 9

9,746.30 574,433.0 9 584,179.3 8

8,564.05 584,179.3 8 592,743.4 3

18,358.55 592,743.4 3 611,101.9 7

9,746.30 611,101.9 7 620,848.2 7

9,746.30 620,848.2 7 630,594.5 6

9,564.05 630,594.5 6 640,158.6 1

18,297.80 640,158.6 1 658,456.4 0

18,297.80 640,158.61 658,456.40

97

Vantage Income Statement For five year Estimation 2011-2015


2011
Net Sales Cost of good sold Gross profit Expenses Admin&operation Exp. Depreciation Exp. Marketing Exp. Other Exp. EBIT Taxes (30%) Net income 3,946,845.30 565,608.39 1,357,000.00 20,000.00 2,170,346.31 651,103.89 1,519,242.41 3,946,845.30 565,608.39 1,061,750.00 20,000.00 4,445,196.31 1,333,558.89 3,111,637.41 3,946,845.30 565,608.39 877,250.00 20,000.00 1,872,396.31 561,718.89 1,310,677.41 3,946,845.30 565,608.39 876,400.00 20,000.00 247,146.31 74,143.89 173,002.41 3,946,845.30 565,608.39 2,053,900.00 20,000.00 2,958,146.31 887,443.89 2,070,702.41 10,830,000.00 2,770,200.00 8,059,800.00

2012
13,490,000.00 3,450,600.00 10,039,400.00

2013
9,785,000.00 2,502,900.00 7,282,100.00

2014
7,600,000.00 1,944,000.00 5,656,000.00

2015
12,825,000.00 3,280,500.00 9,544,500.00

98

Vantage Balance Sheet At the end of each years since 2011-2015


2011 Assets Current Asset Cash Inventories Total Current Asset Fix Asset All Core Building,Plant All Equipment&Machinery All intangible assets Transportation equipment Less: all depreciation Total Fixed Assets Total Assets Liability & Equity Owner's payback Owner's Capital Total Liability & Equity 8,051,908.02 13,972.50 2012 2013 2014 2015 Notes.

658,456 From Cash flow inventories ended = 5% sell f 14,580.00 9,720.00 13,061.25 14,276.25 next month 238,035 410,461 499,658 539,763 672,733 224,063 395,881 489,938 526,702 3,494,600.00 1,610,581.00 589,300.00 2,685,000.00 565,608.39 7,813,872.61 8,051,908.02 3,494,600.00 1,610,581.00 589,300.00 2,685,000.00 1,131,216.79 7,248,264.21 7,658,725.06 3,494,600.00 1,610,581.00 589,300.00 2,685,000.00 1,696,825.18 6,682,655.82 7,182,313.96 3,494,600.00 1,610,581.00 589,300.00 2,685,000.00 2,262,433.57 6,117,047.43 6,656,810.29

3,494,600.00 eg. Structure, build-in, infrans

1,610,581.00 eg. Computer, bathroom equi 589,300.00 eg. Certificate, initial cost 2,685,000.00 2,828,041.96 5,551,439.04 6,224,171.69

1,967,334 10,019,242

3,504,820 11,163,545 7,658,725.06

1,787,089 8,969,402 7,182,313.96

698,506 7,355,316 6,656,810.29

2,503,341 8,727,513 all Invested by owner 6,224,171.69

99

Cash Flow Activity Operating Activities Net Income Depreciation&Amoritization Decrease/Increase in inventories(uses) Net cash flow - Operating activities Investing Activities Investment in pre-operation(uses) Investment in fixed assets(uses) Net cash flow - Investing activities Financing Activities Investment by owner Investor payback(uses) Net cash flow - Financing Total year end cash flows Increase/Decrease in Cash Cash at end of each year

Vantage Cash Flow For annual cash flow activity in 2011-2015 2011 2012 2013

2014 173,002.41 565,608.39 3,341.25 735,269.56

2015 2,070,702.41 565,608.39 1,215.00 2,635,095.81

Notes

1,519,242.41

565,608.39 13,972.50 2,070,878.31

3,111,637.41 565,608.39 607.50 3,676,638.31

1,310,677.41 565,608.39 - 4,860.00 1,881,145.81

Inventories Policy = Remai for next month sales estim

589,300.00 7,790,181.00 8,379,481.00

0 0

0 0

0 0

0 0

8,500,000 1,967,334 6,532,666 224,063 224,063

0 3,504,820 -3,504,820 171,818 224,063 395,881

0 1,787,089 -1,787,089 94,057 395,881 489,938

0 698,506 -698,506 36,763 489,938 526,702

0 2,503,341 -2,503,341 131,755 526,702 658,456 Payback policy = 95% of operating cash activity

100
Financial Ratio Analysis Ratio volume Ratio Profitability Ratio Net profit margin ROA : Return on assets ROE : Return on equity NPV for 5% for five year NPV for 10% for five year IRR Break-Even point#unit sales Break-Even point#net sales Pay back period Liquidity Ratio Current Ratio Quick Ratio Activity Ratio Inventory Turnover Current asset/Current liability Quick asset/Current liability COGS/Inventory 198.26 Equation formula Net income/Sales Net income/Total assets Net income/Total equity 2011 14.028% 18.868% 18.868% 6,412,954.95 6,507,820.63 -74% 8,330.20 7,913,693.08 N/A 236.67 2012 23.066% 40.629% 40.629% 2,874,903.95 3,284,100.61 -18% 7,912.59 7,516,963.95 N/A 257.50 2013 13.395% 18.249% 18.249% 907,922.72 1,573,336.79 -1% 7,651.63 7,269,050.23 N/A 148.84 2014 2.276% 2.599% 2.599% 100,058.68 736,503.45 6% 7,650.43 7,267,908.08 3.11 229.79 2015 16.146% 33.269% 33.269% 2,577,409.69 1,226,723.99 16% 9,315.92 8,850,121.65 N/A

101

Chapter 8 Risk Analysis

102

8. Risk Analysis
8.1 External Risk
Competition ( Treat )

Description
Were new entry while there are a lot of competitions in the market.

Solution
Make different in product by using Japanese rice bran while the other use Thai jasmine rice bran in stage of raw material. Differentiate marketing strategy such as we have retailer drug store in stage of distribution channel while the other uses MLM. Use farming subcontract from other area. Diversify contract farming area. Expending market ( Fifth year) More advertising Enhancing selling Purchase insurance which cover as much as we can find. Purchase machinery insurance annually ( 6,000 x 10 = 60,000) ,

Raw material shortage ( Transfer ) Demand ( Terminate)

Some of these are big problem when natural disaster were happen or climate change which directly effect on harvesting. Change of customer behavior Uncertainty customer loyalty (4th year Recession period)

Unpredictable situations

Unpredictable situation such as natural disaster or fire which are unexpected event. High machinery maintenance cost

Maintenance Cost

(4,500 x 4 = 18,000)

103

8.2 Internal
Employees Injured or unable to work Same skill employee can handle this problem in state of substitute worker We have spare car for solve this problem immediately in order to deliver the product as soon as possible. Moreover, we do the insurance Develop marketing plan and estimate unit sale. Reduce the cost and delete unnecessary expense

Transportation

Accident or any problem

Financial

Sale decrease Cost, expense increase

104

8.3 Sale Decrease 5 % (including with Income Statement,


Cash Flow and Balance Sheet)

Vantage Income Statement For five year Estimation 2011-2015


Net Sales Cost of good sold Gross profit 2011 2012 2013 2014 2015 10,288,500.00 12,815,500.00 9,295,750.00 7,220,000.00 12,183,750.00 2,770,200.00 3,450,600.00 2,502,900.00 1,944,000.00 3,280,500.00 7,518,300.00 9,364,900.00 6,792,850.00 5,276,000.00 8,903,250.00 565,608.39 3,946,845.30 565,608.39 1,042,512.50 20,000.00 3,789,933.81 1,136,980.14 2,652,953.66 3,946,845.30 565,608.39 859,437.50 20,000.00 1,400,958.81 420,287.64 980,671.16 1,989,775.00 3,946,845.30 20,000.00 2,381,021.31 714,306.39 1,666,714.91 - 34,156.11 - 79,697.59

Expenses Admin&operation Exp. 3,946,845.30 Depreciation Exp. 565,608.39 Marketing Exp. 1,334,200.00 Other Exp. 20,000.00 EBIT 1,651,646.31 Taxes (30%) 495,493.89 Net income 1,156,152.41

105

106

107

108

109

8.4 Cost/Expenses increase 5%,10%and15%

110

111

112

113

Chapter 9 Summary

114

9.1 Summary of Project Feasibility Study


Firstly, we would like to give the reasons why should you invest with us. We would like to show you how our project is feasible. Lets start by know what is our product, our product is Japanese Rice Bran Oil which provide consumers Gamma Oryzanol at best. Next is about how can we gain profit and how sustainable our business provide. How can we gain profit? For this question we can say that our product has clearly different from competitors so it makes our products position stand out away from competitors. There are many supplementary foods in the market but vantage rice bran oil we offer the supplementary food compose of a lot of nutrition from Japanese rice bran that contain with antioxidants such as vitamin E, tocopherol, in groups of about 19-40%, and tri-E Tocopherol 5181% methanol and Oryzanol. The product is also different from others in term of material and benefit, so our company can get sale from the differentiation and benefit of the product. Now we answer for how sustainable our business provide? Our business provide the sustainable that current we only sell the product in Chiang Rai it is only a small market ,but we still get high profit in ChiangRai Market. In the future we plan to expand our target group to the larger city and also in the main province in Thailand. Currently, the supplementary food market has been expanding and going to be more famous in the future. We are confident that our business will provide sustainable, whenever there are people who older and older or get ill the health trend will still be in Thailand and all over the world. To show you profit origin, the cost of product is good sold per unit of product is around 243 bath per bottle and we can sale per bottle is 950 bath. The product can show the more profit that entrepreneur can earn a lot of profit because now healthy trend is very popular and many people concern more about their health. The product for healthy can earn the profit in supplementary foods market more than other type. For example, year 1 the sale estimate showed 11,400 units and earns 10,830,000 baths that only in Chaing Rai. There are many supplementary foods in the market but vantage rice bran oil we offer the supplementary food compose of a lot of nutrition from Japanese rice bran. The product is different from others in term of material and benefit, so our company can get sale from the differentiation and benefit of the product. Ours product are concern as supplementary food

115

that can make emotional healthy benefit to advertise our customers. According to who was possibility illness and patient attitude in elder aging and senior working, mostly they will attend to care their health more than who are good healthy. So, ours product can make impress to this group of customer or his/her intimate relationship such as buy as a gift for their parent. There are around 38.4% was sickness or congenital disease. There are not including who possible to be sickness. As our segment are user who are senior worker or senior citizen that have age up to 40 years old - above. This segmenting can measurable by Thai population statistics (Mahidol Statistics) that estimate around 30-35 %( age over 40) of all population and world elder evaluate population are ranking aging categories (over 10% of 60 aging) as Thailand has been aging society. Next is about pay back policy which provide for investor. According to financial policy, there are 2 mains policies including payback period policy and inventory policy. We would like to maintain the inventory for 5% of following month sale volume estimated. Secondly, payback policy that pays for investor every month around 95% of remaining of operation activity cash from each month. According to our sales estimated, we conduct the business hypothesis into 5 state as following the theory of business cycle include Initial stage(2011), Boom Stage(2012), Maturity stage(2013), Recession stage(2014), and expanding scope of marketing in the last stage at 5th year(2015). In addition, all of financial statement will be following as sale volatile or fluctuate which it influenced as of annually product life cycle. Initial stage mean the first year establish of business and make first investment. Boom stage means business was growing prosperity and reach higher sales volume. Maturity stage is the business is fully growth in market, and sales will increase slowly. Recession stage, our business willget loss of operating and decreasing in sales. Lastly for financial policy, after recession stage we think that we should expand our target market, market scope, and increase selling at well. Next factor is about our competitors, competitive in supplementary food are prominence furiously. Rice bran oil products in supplementary food industry obviously seen are popular in the whole healthy market and continually expand. The important thing in each brands are try to lead in this market by various approach strategy and try to distinguish their product against the other competitor rigorously. As we mention before, our product different from other is our product is Japanese Rice Bran Oil which provide best nutrient in nowadays market while there is only Ricezanol which is our directly competitor who sale Japanese Rice

116

Bran Oil. For the main factor that we can make sure is our products are quality product because we can control the production process all along. For our product origin is start by Rice Mill getting paddy from farmers underneath contract farming. After milling, rice bran were transfer to cold press state within 6 hours to keep fresh and control acid value for cold press method. After we get raw rice bran oil is precipitation stage. We have to wait for precipitation of raw rice bran oil for 48 hours to get into next step. From 48 hours of precipitation, then rice bran oil we get will pass through 10 microns filter paper for 48 hours to be ready for 0.25 microns filter press machine. Next is after filter press machine stage were pass by is going to be pack into 2 liters seal bag. We will sent 2 liters bag of rice bran oil to capsuled factory in Bangkok then theyll sent us back those capsule rice bran oil. When we get those capsuled, well load those capsuled into final packaging to be ready for transfer to retail stores. For final products which are waiting for delivering to retail stores, they should be store in our warehouse and collecting lot number before delivering. For order receiving, in our office directly contact with retail stores and transportation burden under our respond. We provide transportation for those retailers in every route. About nature of industry, Rice oil (rice bran oil) also known as the rice germ oil, Japan and Taiwan, and Southeast Asian country also known as rice oil. Rice oil originated in Japan. Japan was an advocate of rice people, Japan Islands the climate is mild, sunny, abundant rainfall, suitable for rice growing, by years of cultivation and improvement have become Japan main crops, rice has naturally become a staple of the Japanese.

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