5. ASSETS FOR BUSINESS OPERATION

5.1 Fixed assets

consisted of office building and logistics as follows:-

1.  Rental Area of 4,621.73 square metres (3 years lease contract
    expiring on June 2006), a Head Office at SVOA Tower, Rama 3 Road,
    BKK

2.  Logistics and Robot automation is located on area of 3 rai 1 ngan 23
    sq. wah, represented as sales office, services center and large
    logistics. The value was appraised on 30 October 2002 at 154,325,000
    Baht by independent evaluator. The land & building are pledged with
    a financial institute at the value of 260,000,000 Baht

3.  Sales Office and Service Center, Chiangmai branch, 3 years lease
    expiring on December 2006

4.  Sales Office and Service Center, Pitsanulok branch, 3 years lease
    expiring on December 2006

5.  Sales Office and Service Center, Khon Khaen branch, 3 years lease
    expiring on December 2006

6.  Sales Office and Service Center, Ubol Ratchathani branch, 3 years
    lease expiring on April 2007

7.  Sales Office and Service Center, Nokorn Ratchasima branch, 3 years
    lease expiring on March 2007

8.  Sales Office and Service Center, Had Yai branch, 3 years lease
    expiring on December 2006

9.  Sales Office and Service Center, Surat Thani branch, 3 years lease
    expiring on December 2006

10. Sales Office and Service Center, Cholburi branch, 3 years lease
    expiring on June 2004

11. Sales Office and Service Center, Phuket branch, 3 years lease
    expiring on March 2005

12. Sales Office and Service Center, Ratburi branch, 3 years lease
    expiring on June 2006

13. Sales Office and Service Center, Rayong branch, 3 years lease
    expiring on August, 2007

14. Sales Office and Service Center, Chiang Rai branch, 3 years lease
    expiring on June 2007

5.2 Investment in associates or affiliated companies

1.  Investment policy in associates and affiliates

  SVOA’s investment policy sustained the main current business with
  expected gain in short term (basically not over first 3 years).
  Portion of investment could be defined upon factors and cases such as
  size of investment, compensation rate from investment, extent of
  investment scheme to support the main business. At present, Company
  has two joint venture companies which are :-

-   IT CITY Public Company Limited operated IT Superstores business by
    which Company holds 32.6% stake of paid-up capital of 270.6 Million
    Baht. Furthermore, IT CITY was listed in The Stock Exchange of
    Thailand on 2^(nd) June, 2003 (now : 31^(st) January, 2005).

-   AET Technology Company Limited operated electronics and computer
    components wholesale business, imported from foreign leading
    companies mostly in Taiwan, China, and Korea. Company held 49.0%
    stake of paid-up capital of 20.0 Million Baht.

  5.2.2 Management Policy in associates and affiliates

  Every Strategic Business Unit of Company retained its independent
  decision in operation and investment either associates or affiliates
  which must be competitive and profitable at last. Profit center would
  be a key to measure the success of investment, while Company merely
  assigned delegate to be director of such associates or affiliates
  according to portion of Company’s benefit in term of policy.

  As at present (31^(st) January, 2005), Company assigned 2 delegates,
  who were executives and advisor of the Company, to be directors of IT
  CITY Public Company Limited. Likewise, Company assigned 2 delegates
  who were executives of Company to be director of AET Technology.