5. Operating Assets

5.1 Core Operating Assets of the company and its subsidiaries

As of 31 October 2011, the company and its subsidiaries have core
operating assets, as followings:

+---------------------------+-------+-------+--------+---------------+
| Items                     | Area  | Owne  | Net    | Encumbrance   |
|                           |       | rship | Book   |               |
|                           | (esti |       | Value  |               |
|                           | mated |       |        |               |
|                           |       |       | (THB   |               |
|                           | nu    |       | Mi     |               |
|                           | mber) |       | llion) |               |
+---------------------------+-------+-------+--------+---------------+
| 1. Land & Land            | 1,343 | owner | 118.11 | Some in Loan  |
| Development               | Rai   |       |        | Collateral    |
|                           |       | owner | 171.56 |               |
| Land for factory          | 239   |       |        |               |
| location.                 | Rai   | owner | 309.24 |               |
|                           |       |       |        |               |
| - Khon Kaen Sugar         | 1,696 | owner | 67.28  |               |
| Industry                  | Rai   |       |        |               |
|                           |       | owner | 122.27 |               |
| - Tamaka Sugar Industry   | 334   |       |        |               |
|                           | Rai   | owner | 16.45  |               |
| - New Krung Thai Sugar    |       |       |        |               |
| Factory                   | 674   | owner | 20.24  |               |
|                           | Rai   |       |        |               |
| - New Kwang Soon Lee      |       | owner | -      |               |
| Sugar                     | 211   |       |        |               |
|                           | Rai   | owner | 2,     |               |
| - Khon Kaen Alcohol       |       |       | 111.96 |               |
|                           | 1     |       |        |               |
| - Khon Kaen Sugar Power   | 0,098 |       | 2,     |               |
| Plant Co., Ltd.           | Rai   |       | 937.11 |               |
|                           |       |       |        |               |
| Cane Plantation Area      |       |       |        |               |
|                           |       |       |        |               |
| Head Office               |       |       |        |               |
|                           |       |       |        |               |
| Other Lands               |       |       |        |               |
|                           |       |       |        |               |
| Total                     |       |       |        |               |
+---------------------------+-------+-------+--------+---------------+
| 2. Factory Building and   |       | Owner | 4,     | Some in Loan  |
| Construction              |       |       | 485.75 | Collateral    |
+---------------------------+-------+-------+--------+---------------+
| 3. Machinery and          |       | Owner | 8,     | Some in Loan  |
| Equipment                 |       |       | 665.94 | Collateral    |
+---------------------------+-------+-------+--------+---------------+
| 4. Motor Vehicle and      |       | Owner | 304.99 |               |
| Labors saving             |       |       |        |               |
|                           |       |       |        |               |
| device                    |       |       |        |               |
+---------------------------+-------+-------+--------+---------------+
| 5. Furniture and Office   |       | Owner | 60.62  |               |
| Equipment                 |       |       |        |               |
+---------------------------+-------+-------+--------+---------------+
| 6. Assets in Construction |       | Owner | 2,     |               |
|                           |       |       | 056.77 |               |
+---------------------------+-------+-------+--------+---------------+
| Total                     |       |       | 18,    |               |
|                           |       |       | 511.18 |               |
+---------------------------+-------+-------+--------+---------------+

5.2 Intangible Assets

Trademarks

Key trademarks of Khon Kaen Sugar Industry Public Company and
subsidiaries are registered at The Department of Intellectual Property,
as followings:

  ----------------------------------- -----------------------------------
  []                                  []

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

BOI Certificates

On 31 October 2011, Three domestic subsidiary companies received 6
investment promotion certificates from the Board of Investment of
Thailand (BOI) under the Investment Promotion Act B.E. 2520. The
benefits includes the exception of income tax for profit for the year
derived form operation of promoted businesses for the period of 8 years
commencing from the first date of income received from the promoted
business. The details are as follows :-

+--------+-----------+--------+--------------------+-------+---+---------+
| Certi  | Sections  | Date   | Promoted activity  | Comm  | E |         |
| ficate |           |        | types              | enced | x |         |
| No.    |           |        |                    | date  | p |         |
|        |           |        |                    |       | i |         |
|        |           |        |                    |       | r |         |
|        |           |        |                    |       | e |         |
|        |           |        |                    |       | d |         |
|        |           |        |                    |       | a |         |
|        |           |        |                    |       | t |         |
|        |           |        |                    |       | e |         |
+--------+-----------+--------+--------------------+-------+---+---------+
|        |           |        |                    | of    |   |         |
|        |           |        |                    | rev   |   |         |
|        |           |        |                    | enues |   |         |
|        |           |        |                    | gene  |   |         |
|        |           |        |                    | rated |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
| 1929(2 | 25, 26,   | No     | - Production of    | Ja    | J |         |
| )/2547 | 28, 31,   | vember | pure alcohol or    | nuary | a |         |
|        | 34,       | 2,     | fuel from          | 8,    | n |         |
|        | 35(3),    | 2004   | agricultural       | 2006  | u |         |
|        | 36(1) and |        | products,          |       | a |         |
|        | 36(2)     |        | including scraps,  |       | r |         |
|        |           |        | garbage or waste   |       | y |         |
|        |           |        |                    |       | 7 |         |
|        |           |        |                    |       | , |         |
|        |           |        |                    |       | 2 |         |
|        |           |        |                    |       | 0 |         |
|        |           |        |                    |       | 1 |         |
|        |           |        |                    |       | 4 |         |
+--------+-----------+--------+--------------------+-------+---+---------+
|        |           |        |   - Production of  | March | J |         |
|        |           |        |   biological       | 30,   | a |         |
|        |           |        |   fertilizers or   | 2006  | n |         |
|        |           |        |   organic          |       | u |         |
|        |           |        |   fertilizers      |       | a |         |
|        |           |        |                    |       | r |         |
|        |           |        |                    |       | y |         |
|        |           |        |                    |       | 7 |         |
|        |           |        |                    |       | , |         |
|        |           |        |                    |       | 2 |         |
|        |           |        |                    |       | 0 |         |
|        |           |        |                    |       | 1 |         |
|        |           |        |                    |       | 4 |         |
+--------+-----------+--------+--------------------+-------+---+---------+
| 1062(2 | 25, 26,   | J      | - Production of    | I     |   |         |
| )/2552 | 28, 31,   | anuary | pure alcohol or    | ncome |   |         |
|        | 34,       | 30,    | fuel from          | not   |   |         |
|        | 35(3),    | 2009   | agricultural       | yet   |   |         |
|        | 36(1) and |        | products,          | de    |   |         |
|        | 36(2)     |        | including scraps,  | rived |   |         |
|        |           |        | garbage or waste   |       |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
|        |           |        | - Production of    | I     |   |         |
|        |           |        | biological         | ncome |   |         |
|        |           |        | fertilizers or     | not   |   |         |
|        |           |        | organic            | yet   |   |         |
|        |           |        | fertilizers        | de    |   |         |
|        |           |        |                    | rived |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
| 1063(2 | 25, 26,   | J      | - Production of    | I     |   |         |
| )/2552 | 28, 31,   | anuary | pure alcohol or    | ncome |   |         |
|        | 34,       | 30,    | fuel from          | not   |   |         |
|        | 35(3),    | 2009   | agricultural       | yet   |   |         |
|        | 36(1) and |        | products,          | de    |   |         |
|        | 36(2)     |        | including scraps,  | rived |   |         |
|        |           |        | garbage or waste   |       |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
|        |           |        | - Production of    | I     |   |         |
|        |           |        | biological         | ncome |   |         |
|        |           |        | fertilizers or     | not   |   |         |
|        |           |        | organic            | yet   |   |         |
|        |           |        | fertilizers        | de    |   |         |
|        |           |        |                    | rived |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
| 1258(2 | 25, 26,   | March  | - Production of    | Dec   |   | D       |
| )/2548 | 28,       | 29,    | electricity power  | ember |   | ecember |
|        | 31(3),    | 2005   | and steams         | 22,   |   | 21,     |
|        | 31(4), 34 |        |                    | 2006  |   | 2014    |
|        | and 35(3) |        |                    |       |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
| 1432(2 | 25, 26,   | June   | - Production of    | Nov   |   | N       |
| )/2552 | 28,       | 24,    | electricity power  | ember |   | ovember |
|        | 31(1),    | 2009   | and steams         | 30,   |   | 29,     |
|        | 31(2),    |        |                    | 2010  |   | 2018    |
|        | 31(3),    |        |                    |       |   |         |
|        | 31(4),    |        |                    |       |   |         |
|        | 34,       |        |                    |       |   |         |
|        | 35(1),    |        |                    |       |   |         |
|        | 35(2) and |        |                    |       |   |         |
|        | 35(3)     |        |                    |       |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+
| 1657(2 | 25, 26,   | August |   - Production of  | June  |   | June 4, |
| )/2552 | 28,       | 25,    |   pure vegetable   | 5,    |   | 2018    |
|        | 31(1),    | 2009   |   oil and /or      | 2010  |   |         |
|        | 31(3),    |        |   semi-pure        |       |   |         |
|        | 31(4) and |        |   vegetable oil    |       |   |         |
|        | 34        |        |                    |       |   |         |
+--------+-----------+--------+--------------------+-------+---+---------+

  Furthermore, in accordance with the promotion certificate no.
  1432(2)/2552, the subsidiary company receives the privilege in
  reduction of the income tax rate at 50% of the regular rate for the
  period of 5 years commencing from the expired date and the promotion
  certificate no. 1657(2)/2552 receives the tax privilege by exempting
  the import duties for approved machines and exempting the income tax
  for the dividend received from promoted businesses for the entire
  period the income tax is exempted.

  Three foreign subsidiary companies received the foreign investment
  certificate and tax privilege benefit with 1 investment certificate
  from Lao People's Democratic Republic and 5 investment certificates
  from Kingdom of Cambodia, with the details as follows: -

  1) Foreign investment certificate no. 017-06/ Khor Lor Tor receives
  tax privilege by exempting the income tax for 5 years from the date
  the income is first derived from the selling of sugar, thereafter, the
  subsidiary company has to pay the income tax at the rate of 20%. The
  income is first derived on July 21, 2010 and the expiry date is July
  20, 2015.

  2) Foreign investment certificate no. 4420/06 Ghor. Wor. Ghor. dated
  December 15, 2006 and no. 4342/07 Ghor. Wor. Ghor. dated November 20,
  2007 issued by Council for the Development of Cambodia, the subsidiary
  company receives tax privilege by exempting the duties in importing
  machines for manufacturing and construction materials.

  3) Foreign investment certificate no. 1641/09 Ghor. Wor. Ghor. and no.
  1642/09 Ghor. Wor. Ghor. dated July 28, 2009 issued by Council for the
  Development of Cambodia, the subsidiary company receives tax privilege
  by exemption of income tax for the period of 8 years, including
  priority period commencing from the date that the subsidiary company
  commenced the operation (year 2006).

  4) Tax exemption certificate for agriculture-industrial (sugar cane)
  no. 4511 dated July 29, 2009 issued by the Ministry of Economy and
  Finance, Cambodia receives the privilege to charge the value-added tax
  at 0% for the sale of sugar cane that produce especially for export.
  This certificate is valid for the period of 1 year commencing from
  July 29, 2009 to July 28, 2010.

5.3 Investment and Management Policy for subsidiaries and affiliates

As of October 31, 2010, the company invests in 19 subsidiaries and 1
affiliates, as followings:

Subsidiaries (The company holds the shares directly)

  1) Tamaka Sugar Industry Co.,Ltd

2) New Krung Thai Sugar Factory Co.,Ltd

3) New Kwang Soon Lee Sugar Factory co.,Ltd

4) KSL Real Estate Co.,Ltd

5) KSL Export Trading Co.,Ltd

6) Khon Kaen Sugar Power Plant Co.,Ltd

7) Khon Kaen Alcohol Co.,Ltd

8) KSL Chemical Co.,Ltd

9) Thai Sugar Terminal Public Company Limited

10) KSL Agro and Trading Co., Ltd.

11) Savannakhet Sugar Co.,Ltd

  12) Koh Kong Sugar Industry Co.,Ltd

  13) Wynn In Trading Co.,Ltd

Subsidiaries (The company holds shares directly and indirectly through
Thai Sugar Terminal Public Company Limited.)

  14) T S G ASSET CO., LTD.

  15) T S OIL INDUSTRY CO., LTD.

16) T S FLOUR MILL PUBLIC CO., LTD

17) TS WAREHOUSE CO., LTD.

18) T S TRANSPORT AND LOGISTIC CO., LTD.

Subsidiaries (The company holds the shares indirectly through Wynn In
Trading Co., Ltd.

  19) Koh Kong Plantation Co., Ltd.

Affiliates 1) Champion Fermentation Co.,Ltd

For the subsidiaries that the company holds its shares directly, the
company has controlling power through holding more than 50% of share
except Thai Sugar Terminal Public Company Limited and 5 subsidiaries
which the company holds directly and indirectly 23.82% of the share but
has controlling power in according with the definition of subsidiaries
specified in account standard.

The company has the policy to invest in the business related to sugar
business, sweetener business or other business that gives the benefit
and reasonable return to core business. The criteria for the investment
will be based on competitive advantage, reasonable return, the amount of
money to invest. In addition, considering the proportionate of
investment will be depended on many factors, such as, how significant
the expertise of business is. If the business needs special experiences
significantly and the company has no or less experience, the company
will let other strategic partners holding the share in higher
proportion. However; if the company has the investment in high
proportion, the company will assign its own representatives to
participate in a position of company directors or a position of top
management. In addition All of company investment must be approved by
the board of director and there should not be the conflict of interest
with the parent company in the future.