5. Operating Assets

5.1 Core Operating Assets of the Company and its subsidiaries

As of 31 October 2005, the Company and its subsidiaries have core
operating assets, as followings:

+------------------------+-------+--------+---------+----------------+
| Items                  | Area  | Own    | Net     | Encumbrance    |
|                        |       | ership | Book    |                |
|                        | (esti |        | Value   |                |
|                        | mated |        |         |                |
|                        |       |        | (THB    |                |
|                        | nu    |        | M       |                |
|                        | mber) |        | illion) |                |
+------------------------+-------+--------+---------+----------------+
| 1. Land & Land         | 586   | owner  | 55.52   | Loan           |
| Development            | Rai   |        |         | Collateral     |
|                        |       | owner  | 171.32  |                |
| Land for factory       | 239   |        |         | Loan           |
| location.              | Rai   | owner  | 100.58  | Collateral     |
|                        |       |        |         |                |
| - Khon Kaen Sugar      | 199   | owner  | 48.30   | Loan           |
| Industry               | Rai   |        |         | Collateral     |
|                        |       | owner  | 8.72    |                |
| - Tamaka Sugar         | 303   |        |         | Loan           |
| Industry               | Rai   | owner  | 549.77  | Collateral     |
|                        |       |        |         |                |
| - New Krung Thai Sugar | N/A   | owner  | 656.89  | Some in Loan   |
| Factory                |       |        |         | Collateral     |
|                        | 124   | owner  | 9.56    |                |
| - New Kwang Soon Lee   | Rai   |        |         | Loan           |
| Sugar                  |       | owner  | 0.53    | Collateral     |
|                        | 50    |        |         |                |
| Head Office            | Rai   | owner  | 1.51    | Loan           |
|                        |       |        |         | Collateral     |
| Other Lands            | 18    |        | 1       |                |
|                        | Rai   |        | ,602.70 |                |
| Thai Sugar Terminal    |       |        |         |                |
|                        |       |        |         |                |
| KSL Real Estate        |       |        |         |                |
|                        |       |        |         |                |
| KSL Export Trading     |       |        |         |                |
|                        |       |        |         |                |
| Khon Kaen Alcohol      |       |        |         |                |
|                        |       |        |         |                |
| Total                  |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| 2. Factory Building    |       | Owner  | 842.92  | Some in Loan   |
| and Construction       |       |        |         | Collateral     |
+------------------------+-------+--------+---------+----------------+
| 3. Machinery and       |       | Owner  | 2       | Some in Loan   |
| Equipment              |       |        | ,665.71 | Collateral     |
+------------------------+-------+--------+---------+----------------+
| 4. Motor Vehicle and   |       | Owner  | 95.09   |                |
| Labors saving          |       |        |         |                |
|                        |       |        |         |                |
| device                 |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| 5. Furniture and       |       | Owner  | 53.48   |                |
| Office Equipment       |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| 6. Assets in           |       | Owner  | 544.36  | Some in Loan   |
| Construction           |       |        |         | Collateral     |
+------------------------+-------+--------+---------+----------------+
| Total                  |       |        | 5       |                |
|                        |       |        | ,804.26 |                |
+------------------------+-------+--------+---------+----------------+

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:

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

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BOI Certificates

As of October 31, 2005, the Company and subsidiaries get the BOI’s
privileges for ethanol project, fertilizer project and power plant
project. These projects acquired BOI tax incentives such as machinery
import duty exemption, corporate tax exemption for 8 years from the date
of first revenue received, and etc.

5.3 Investment and Management Policy for subsidiaries and affiliates

As of October 31, 2005, the Company invests in 9 subsidiaries and 1
affiliates, as followings:

Subsidiaries 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) KS Laxmi Co.,Ltd ( in the process of changing the company name to KSL
Chemical)

9) Thai Sugar Terminal Public Company Limited

Affiliates 1) Champion Fermentation Co.,Ltd

Regarding company No. 1) - 8), Khon Kaen Sugar Industry has controlling
power through holding more than 50% of share. Company No. 9) Khon Kaen
Sugar Industry hold 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.