5. ASSETS USED IN BUSINESS OPERATIONS

Assets of the Company or the subsidiary as at 31 December 2000 are as
follows:

5.1 Land, Buildings, and Machinery

  (1) Land, Buildings

CONSOLIDATED THE COMPANY ONLY

Cost Net Book Value Cost Net Book Value

(Baht) (Baht) (Baht) (Baht)

Land 31,193,426 31,193,426 26,473,900 26,473,900

Land Improvement 1,099,259 577,619 1,099,259 577,619

Building, Temporary

Building and Dry Dock 30,312,516 2,153,596 5,312,516 2,153,595

Motor Vehicles 8,021,709 3,843,118 3,544,789 2,120,940 

Furniture and Office

 Equipment 6,194,918 2,052,038 4,814,144 1,760,311 

Machinery and Equipment 43,571,695 32,156,136 6,224,116 3,834,023

Others 1,390,815 794,746 1,331,875 758,972

121,784,338 72,770,679 48,800,599 37,679,360

Details of Assets: As at 31 December 2000, total land of the Company is
35 rai - ngan 73.50 sq wah, cost at Baht 26,473,900/=. The Company and
its subsidiary companies’ land is 76 rai, 3 ngan, 13.40 sq wah, cost
Baht 439,763,426/=. The details are described as follows:

Land in Phuket Province

  The Company Only & Consolidated

No. Location Title Deed No. Rai Ngan Sq Wah Cost (Baht)

1. Bang Ngua 2191 8 2 11 7,845,300

2. Bang Neow 312 4 1 85.80 4,502,500

3. Bang Neow 2612 2 - 97 2,691,000

4. Bang Neow 36860 3 3 33 4,650,000

5. Bang Neow 2614 6 3 9 6,562,500

  The Company Only & Consolidated

No. Location Title Deed No. Rai Ngan Sq Wah Cost (Baht)

6. Bang Neow 2615 - 1 70 85,000

7. Bang Neow 37112 - 1 27.70 -

8. Cha-Long 89 8 2 40 137,600

Total 35 - 73.50 26,473,900

Land in Loei Province 

  Consolidated

No. Location Title Deed No. Rai Ngan Sq Wah Cost (Baht)

9. Wang Sapoong Nor Sor 3 Kor No. 1475 17 1 51 2,099,273Other
d______________________________________

10. Wang Sapoong Nor Sor 3 Kor No. 1474 18 - 60 2,187,592

11. Wang Sapoong Nor Sor 3 Kor No. 260 - 1 84 46,526

12. Wang Sapoong Nor Sor 3 Kor No. 217 1 - 85 146,682

13. Wang Sapoong Nor Sor 3 Kor No. 233 - 3 98 239,453

Total 38 - 78 4,719,526

Remark: Cost of Land of the Company Only = N/A. All land are freehold.

Land of Subsidiary Company in Bangkok (75% shareholding by the Company)

  The Company Consolidated

  Only

No. Location Title

  Deed No. Rai Ngan Sq Wah Cost (Baht) Cost (Baht)

14. Rachadapisek 1670 1 1 10 -

15. Rachadapisek 1671 1 1 10 -

16. Rachadapisek 1987 - 3 41.90 -

  Total 3 1 61.90 - 408,570,000

Land appraised price is Baht 300,000 per sq wah. Other details are also
shown in the Notes to Consolidated Financial Statements No. 15 under the
Land Awaiting Development.

Grand Total 76 3 13.40 439,763,426

Remark: No. 1 - 5 Residential Units.

  No. 1 and 3 Land Title deeds are being mortgaged to a bank for Baht 15
  million for a credit facility of the Company, and another Baht 12
  million as a secondary mortgage for a related company which allowed
  the Company exclusive use of another Baht 14 million banking overdraft
  at cost.

  No. 4 Mortgaged to a bank for Baht 10 million for the Company’s credit
  facilities.

 No. 6 - 13 Vacant Land 

No. 14 Mortgaged to a finance company for Baht 30 million for the
Company’s credit facility.

 No. 15-16 Vacant Land

(2) Machinery which book value is more than 10% of total assets

  Quantity Depreciable No. of years Book

  Life used value

-   The Company Only - none -

-   Consolidated - none -

5.2 Company’s Investment: Details are shown in the Notes to Consolidated
Financial Statements No. 12 under Investments in Subsidiaries/Provision
for Loss of Subsidiaries, and No. 13 Investments in Other Companies.

5.3 Net Assets Value

(1) Assets value adjusted with appraisal price (5.1) or investment (5.2)

    The Company Only (Baht) Consolidated (Baht)

    Net Assets 37,679,360.- 481,340,679.-

Net Investment 377,595,849.- 361,431.-

(2) Value as per (1) deducted liabilities from any obligations and
    details of those obligations

    The Company Only (Baht) Consolidated (Baht)

    Net assets after obligations 29,834,060.- 473,495,379.-

    Net investment after obligations 377,595,849.- 361,431.-

(3) Value as per (1) and (2) per share.

  The Company only (Baht)

  Value as per (1)

  - Net assets per share (30,000,000 shares) 1.26

  - Net investment per share 12.59

  Value as per (2)

  - Net assets after obligation per share 0.99

  - Net investment after obligation per share 12.59

5.4 Mining Rights in Phuket: Details are shown in the Notes to
Consolidated Financial Statements No. 14.2 under the Mining Rights.

5.5 Rights of Limitations in Conducting Business

5.5.1 The significant point of the concession agreement

Offshore Tin Mining

The following conditions currently prevail:

Concession terms: 25 years

Concession area: 15,702 rai 2 ngan 6 sq. wah

Government Benefits: Special bonus Baht 25,031,885.28

Andesite Quarrying

The following conditions currently prevail:

Mining lease terms: 10 years

  Mining lease area: 88 rai 3 ngan 81 sq. wah

Government Benefits: (1) Bank guarantee 200,000.00 baht

(2) Signature bonus 160,627.50 baht

(3) Special bonus 642,510.00 baht

The special bonus of Baht 642,510.00 to be paid on installments for 10
years at Baht 90,587.93 per year.

Gold Mining

The following conditions currently prevail:

Concession terms: 25 years

Mining Lease Application areas: 1,308 rai 3 ngan

Government Benefits:

1) Special Bonus

a)  Signature bonus Baht 5.79 million was paid to DMR on signing of the
    Agreement.

b)  TKL will pay a Baht 6.50 million bonus to the DMR for the first lot
    of mining licenses granted.

1)  Special Bonus in Production

a)  The Royal Thai Government is entitled to acquire 5-10% of TKL’s
    registered shares at par value.

b)  TKL will pay for gold production in the form of pure gold or money
    to the government at the rate of 1.5% of production after royalty
    payments.

c)  TKL will pay 2.50% royalty fee to the DMR based on gold dore
    production.

5.5.2 Limitation in conducting business

Limitations in conducting business require that, in each of the above
operations, the company operate within the concession area (s) according
to the licensing agreement.

In addition, in connection with the igneous rock and gold mining
operations the OEPP and DMR will conduct periodic surveys and
investigations to ensure that operational guidelines and controls are
being followed.

5.6 Policy on Investment in Subsidiary and Associated Companies

Any significant shares acquisition or investment in projects will be
considered by the Board of Directors prior to recommendation to
shareholders for consideration. During the year 2000, no additional
investment was made by the Company.

5.6.1 Management Policy

Major shareholders normally appoint their representatives to the board
of directors of the subsidiary and associated companies. Director seats
will be allocated in proportion with the investment ratio. Each
subsidiary and associated company therefore has its own board of
directors whose policies and regulations are guided. However, the
Company as a major shareholder has control in the subsidiary business
operations.