5. Operating Assets

5.1 Core Operating Assets of the Company and its subsidiaries

As of 31 October 2007, 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  | 48.37   | Loan           |
| Development            | Rai   |        |         | Collateral     |
|                        |       | owner  | 171.77  |                |
| Land for factory       | 239   |        |         | Loan           |
| location.              | Rai   | owner  | 105.88  | Collateral     |
|                        |       |        |         |                |
| - Khon Kaen Sugar      | 195   | owner  | 66.17   | Some in Loan   |
| Industry               | Rai   |        |         | Collateral     |
|                        |       | owner  | 53.18   |                |
| - Tamaka Sugar         | 334   |        |         | Some in Loan   |
| Industry               | Rai   | owner  | 442.57  | Collateral     |
|                        |       |        |         |                |
| - New Krung Thai Sugar | 264   | owner  | 21.83   |                |
| Factory                | Rai   |        |         |                |
|                        |       | owner  | 1       |                |
| - New Kwang Soon Lee   | 1     |        | ,306.74 |                |
| Sugar                  | 5,428 | owner  |         |                |
|                        | Rai   |        | 2       |                |
| - Khon Kaen Alcohol    |       |        | ,216.51 |                |
|                        |       |        |         |                |
| Cane Plantation Area   |       |        |         |                |
|                        |       |        |         |                |
| Head Office            |       |        |         |                |
|                        |       |        |         |                |
| Other Lands            |       |        |         |                |
|                        |       |        |         |                |
| Total                  |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| 2. Factory Building    |       | Owner  | 1       | Some in Loan   |
| and Construction       |       |        | ,571.13 | Collateral     |
+------------------------+-------+--------+---------+----------------+
| 3. Machinery and       |       | Owner  | 5       | Some in Loan   |
| Equipment              |       |        | ,060.60 | Collateral     |
+------------------------+-------+--------+---------+----------------+
| 4. Motor Vehicle and   |       | Owner  | 245.16  |                |
| Labors saving          |       |        |         |                |
|                        |       |        |         |                |
| device                 |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| 5. Furniture and       |       | Owner  | 62.46   |                |
| Office Equipment       |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| 6. Assets in           |       | Owner  | 323.51  |                |
| Construction           |       |        |         |                |
+------------------------+-------+--------+---------+----------------+
| Total                  |       |        | 9       |                |
|                        |       |        | ,479.37 |                |
+------------------------+-------+--------+---------+----------------+

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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  []                                  []

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BOI Certificates

On 31 October 2007, two domestic subsidiary companies received 2
investment promotion certificates from Broad of Investment of Thailand
(BOI) and a foreign subsidiary company received the foreign investment
certificate from the board of planning and investment , Lao People's
Democratic Republic with the following details:-

(1) The promotional investment certificate No. 1929(2)2547: benefits
under Investment Promotion Act. B.E. 2520 in sections 25, 26, 28, 31, 34
and 35(3) which cover exception of corporate income tax for 8 years for
net profit derived form operation of promoted businesses i.e. production
of pure alcohol and production of bio-fertilizers (in case of
bio-fertilizers, the total shall not be more than 100% of invested
capital not including land and working capital) commencing from the date
the income first received from the promoted business. For alcohol or
fuel from agricultural produce, the income was first received in January
2006 and for bio-fertilizer in March 2006.

(2) The promotional investment certificate No. 1258(2)2548: benefits
under Investment Promotion Act. B.E. 2520 in sections 25, 26, 28, 31, 34
and 35(3) which cover exception of corporate income tax for 8 years for
net profit received from operation of promoted businesses i.e.
production of electricity power and streams. The income was first
received in December 2006.

(3) Foreign investment certificate no. 017-06/ Khor Lor Tor. A tax
privilege by exempting the corporate income tax for 5 years from the
date the income are first derived from the selling of sugar, thereafter
the subsidiary company has to pay the corporate income tax at the rate
of 20%. As at October 31, 2007, there was no income derived from the
said promoted business yet.

5.3 Investment and Management Policy for subsidiaries and affiliates

As of October 31, 2007, the Company invests in 11 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) KSL Chemical Co.,Ltd

9) Thai Sugar Terminal Public Company Limited

10) KSL Agro Co.,Ltd

11) Savannakhet Sugar Co.,Ltd

12) Koh Kong Plantation Co.,Ltd

Affiliates 1) Champion Fermentation Co.,Ltd

Regarding company No. 1) - 12) (except No. 9), 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.