2.3 Business Characteristics of each Undertaking

(1) Business Characteristics

The characteristics of each of the company’s business are classified as
follows:

  Securities Broker

Market share value of the company for the past 3 years compared to the
latest updated data as at 31 December, 2002 were shown in the table
below:

Table of Market Share Value

  ---------------------------- ----------- ---------- ----------- -----------
  Securities Trading Volume    1999        2000       2001        2002

  SET (Million Baht)           1,609,787   925,202    1,579,144   2,053,357

  US (Million Baht)            77,694      31,456     68,322      142,044

  US Market share (%)          2.41%       1.70%      2.16%       3.45%
  ---------------------------- ----------- ---------- ----------- -----------

For the past 3 years, during May 2000 to March 2002 the Company had 1
sub-broker but at present we do not have any sub-broker.

Securities Broker Business

New Customer Securities Policy

It is the Company’s policy to welcome all kinds of customers, domestics,
institutional as well as foreigners. At present, however, most of our
customers are domestic customers and we have set up the screening of new
customers policy according to the rules and regulations of the SET while
focusing on minimizing the company‘s risk.

Margin accounts Policy

Since 26 June, 2002, the Company has provided margin trading service to
customers in form of Credit Balance under Credit Balance Financing
project. The amount of line has been set up in relation to the
securities types which have different degrees of risk in which will be
announced occasionally as appropriate. The Company will set up the list
of the securities which are qualified to be put as collaterals.
Followings are the policies governing the Credit Balance considerations
:

1.  Marketing staff should know their customers in person so that they
    can evaluate the investment objectives, financial position or
    limitations as well as the basic investment knowledge of their
    customers clearly.

2. Determine appropriate maximum limit of credit line of each customer
under a certain period of time. The Credit Balance Line and the credit
line for stock borrowings for short sale should be approved under one
maximum total credit line for the same customers.

3. Disclose the relationships between marketing staff and the customers
or between the Company and the customers to notify the Company’s
compliance to the Code of Ethics like that of a professional company,
and which is considered to be a provision in the Compliance manual to be
strictly obeyed.

4. Approved authority of the credit line is dependable on the Executive
Board.

5. The marketing staff has to certify that the person who makes the
buying and selling decision is the eligible person not the nominee
person and that the payment should be settled by that particular person.
The Company is therefore, forbidden to approve any credit line to the
nominee of other persons intentionally or unintentionally.

6. In opening a securities trading account, the customers have to make
deposit in cash first before trading can be made at the amount not less
than the initial margin regulated by the Stock Exchange of Thailand (at
present it is 50%).

7. The Company is forbidden to approve for any margin on securities
trading to the customers exceeding their purchasing power at a certain
period.

8. Purchasing exceeds purchasing power can be allowed only if the
customers increase their collaterals amount, either by cash or
securities, to the amount not less than the initial margin of the
exceeded volume purchased before purchasing can be done.

9. If the Company was appointed underwriter of IPO shares to be traded
in The Stock Exchange of Thailand, margin loan should not be allowed to
the customers in purchasing the particular shares during the first 30
days after the permission date from SET.

10. The Company will set up the marginable list of securities (including
those right offering shares of the listed companies), initial margin
rate, maintenance margin rate and the minimum requirement rate for each
securities in writing at least once a month.

11. In case the customers’ equity gets lower than the Maintenance
Margin, written notice will be sent to inform them to fill in the
collateral on the next working day so that the customers’ equity is not
lower than the Maintenance Margin.

12. In case the equity of any customer has decreased to be equivalent to
or lower than the minimum requirement value, then the Operations
Department will have to do the force sell on the next working day so
that the equity of the customer gets higher than the minimum requirement
value.

13. Interest on margin loan should be charged to the customers and the
Company will also pay interest to the customers calculated on
collaterals remaining in their margin loan account base on the daily
outstanding amount under the agreed rate. The settlement of interest
will be done by adjusting the margin level of each customer at least
once a month.

14. Report on the outstanding balance and monthly interest settlement on
margin loan account will be sent to inform the customers at least once a
month.

Securities Trading Credit Line Policy

The Company has set up the securities trading credit line and appointed
the authorized signers to approve for each level of the Line for the
customers governing each activity such as Short Sell and Net Settlement
/Waive as well as the approval of the Change of order and the Company’s
Error Port. The authorized signers and related authorities were
appointed by the Board of Executive Directors and was shown in table 1.
Moreover, authorized signers were also appointed to approve for the
temporary credit line effective as of 15 August, 2002 as follows:

+------------------------------+---------------------------------------+
| Credit Line                  | Authorized Signers                    |
|                              |                                       |
| (temporary line per          |                                       |
| customer)                    |                                       |
+------------------------------+---------------------------------------+
| Not exceeding 8 million Baht | Executive Vice President              |
+------------------------------+---------------------------------------+
| Not exceeding 10 million     | First Executive Vice President or     |
| Baht                         |                                       |
|                              | Senior Executive Vice President       |
+------------------------------+---------------------------------------+
| Not exceeding 15 million     | First Executive Vice President or     |
| Baht                         |                                       |
|                              | Senior Executive Vice President and   |
|                              |                                       |
|                              | Managing Director or Executive        |
|                              | Directors                             |
+------------------------------+---------------------------------------+
| Exceeding 15 million Baht    | 3 out of 4 Executive Directors and    |
|                              | proposed to be re-confirmed by the    |
|                              | Board of Directors                    |
+------------------------------+---------------------------------------+

+-------+-------+-------+-------+-------+-------+----------+----------+
| TABLE | App   |       |       |       |       |          |          |
| 1     | roval |       |       |       |       |          |          |
|       | A     |       |       |       |       |          |          |
|       | uthor |       |       |       |       |          |          |
|       | ities |       |       |       |       |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
| C     | New   | Net   | Short | C     | Error |          |          |
| redit | Cash  | Settl | Sell  | hange | Port  |          |          |
| Line  | Ac    | ement |       | Order |       |          |          |
|       | count | &     |       |       |       |          |          |
|       | Op    | Waive |       |       |       |          |          |
|       | ening |       |       |       |       |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
|       |       |       |       |       | Error | Error    | Transfer |
|       |       |       |       |       | with  | with     | the      |
|       |       |       |       |       | a     | Deficit  | di       |
|       |       |       |       |       | S     |          | fference |
|       |       |       |       |       | quare |          | into     |
|       |       |       |       |       |       |          | C        |
|       |       |       |       |       |       |          | ompany’s |
|       |       |       |       |       |       |          | Port     |
+-------+-------+-------+-------+-------+-------+----------+----------+
| Not   | Assi  | Assi  | Assi  | -     | -     | Not      | Amount x |
| exce  | stant | stant | stant |       |       | e        | price <  |
| eding | Vice  | Vice  | Vice  |       |       | xceeding | 10.0     |
|       | Pres  | Pres  | Pres  |       |       | 50,000   | million  |
| 1     | ident | ident | ident |       |       | Baht     | Baht     |
| mi    |       |       |       |       |       |          |          |
| llion |       |       |       |       |       | E        | E        |
| Baht  |       |       |       |       |       | xecutive | xecutive |
|       |       |       |       |       |       | Vice     | Vice     |
|       |       |       |       |       |       | P        | P        |
|       |       |       |       |       |       | resident | resident |
|       |       |       |       |       |       | or First | or First |
|       |       |       |       |       |       |          | E        |
|       |       |       |       |       |       | E        | xecutive |
|       |       |       |       |       |       | xecutive | Vice     |
|       |       |       |       |       |       | Vice     | P        |
|       |       |       |       |       |       | P        | resident |
|       |       |       |       |       |       | resident | or       |
|       |       |       |       |       |       | or       | Senior   |
|       |       |       |       |       |       |          | E        |
|       |       |       |       |       |       | Senior   | xecutive |
|       |       |       |       |       |       | E        | Vice     |
|       |       |       |       |       |       | xecutive | P        |
|       |       |       |       |       |       | Vice     | resident |
|       |       |       |       |       |       | P        | and      |
|       |       |       |       |       |       | resident | proposed |
|       |       |       |       |       |       |          | to       |
|       |       |       |       |       |       |          | In       |
|       |       |       |       |       |       |          | vestment |
|       |       |       |       |       |       |          | C        |
|       |       |       |       |       |       |          | ommittee |
|       |       |       |       |       |       |          | be       |
|       |       |       |       |       |       |          | approved |
|       |       |       |       |       |       |          | by       |
+-------+-------+-------+-------+-------+-------+----------+----------+
| Not   | Vice  | Vice  | Vice  | Vice  | Vice  |          |          |
| exce  | Pres  | Pres  | Pres  | Pres  | Pres  |          |          |
| eding | ident | ident | ident | ident | ident |          |          |
|       |       |       |       |       |       |          |          |
| 2     |       |       |       |       |       |          |          |
| mi    |       |       |       |       |       |          |          |
| llion |       |       |       |       |       |          |          |
| Baht  |       |       |       |       |       |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
| Not   | S     | S     | S     | S     | S     |          |          |
| exce  | enior | enior | enior | enior | enior |          |          |
| eding | Vice  | Vice  | Vice  | Vice  | Vice  |          |          |
|       | Pres  | Pres  | Pres  | Pres  | Pres  |          |          |
| 5     | ident | ident | ident | ident | ident |          |          |
| mi    |       |       |       |       |       |          |          |
| llion |       |       |       |       |       |          |          |
| Baht  |       |       |       |       |       |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
| Not   | Exec  | Exec  | Exec  | Exec  | Exec  |          |          |
| exce  | utive | utive | utive | utive | utive |          |          |
| eding | Vice  | Vice  | Vice  | Vice  | Vice  |          |          |
|       | Pres  | Pres  | Pres  | Pres  | Pres  |          |          |
| 8     | ident | ident | ident | ident | ident |          |          |
| mi    |       |       |       |       |       |          |          |
| llion |       |       |       |       |       |          |          |
| Baht  |       |       |       |       |       |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
| Not   | First | First | First | First | First | Not      | Amount x |
| exce  | Exec  | Exec  | Exec  | Exec  | Exec  | e        | price >  |
| eding | utive | utive | utive | utive | utive | xceeding | 10.0     |
|       | Vice  | Vice  | Vice  | Vice  | Vice  | 50,000   | million  |
| 10    | Pres  | Pres  | Pres  | Pres  | Pres  | Baht     | Baht     |
| mi    | ident | ident | ident | ident | ident |          |          |
| llion | or    | or    | or    | or    | or    |          |          |
| Baht  | S     | S     | S     | S     | S     |          |          |
|       | enior | enior | enior | enior | enior |          |          |
|       | Exec  | Exec  | Exec  | Exec  | Exec  |          |          |
|       | utive | utive | utive | utive | utive |          |          |
|       | Vice  | Vice  | Vice  | Vice  | Vice  |          |          |
|       | Pres  | Pres  | Pres  | Pres  | Pres  |          |          |
|       | ident | ident | ident | ident | ident |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
| Not   | Man   | Man   | Man   | Man   | Man   | E        | E        |
| exce  | aging | aging | aging | aging | aging | xecutive | xecutive |
| eding | Dir   | Dir   | Dir   | Dir   | Dir   | Vice     | Vice     |
|       | ector | ector | ector | ector | ector | P        | P        |
| 15    | or    | or    | or    | or    | or    | resident | resident |
| mi    | Exec  | Exec  | Exec  | Exec  | Exec  | or First | or First |
| llion | utive | utive | utive | utive | utive | E        | E        |
| Baht  | Dir   | Dir   | Dir   | Dir   | Dir   | xecutive | xecutive |
|       | ector | ector | ector | ector | ector | Vice     | Vice     |
|       |       |       |       |       |       | P        | P        |
|       |       |       |       |       |       | resident | resident |
|       |       |       |       |       |       | or       | or       |
|       |       |       |       |       |       | Senior   | Senior   |
|       |       |       |       |       |       | E        | E        |
|       |       |       |       |       |       | xecutive | xecutive |
|       |       |       |       |       |       | Vice     | Vice     |
|       |       |       |       |       |       | P        | P        |
|       |       |       |       |       |       | resident | resident |
|       |       |       |       |       |       | and      | and      |
|       |       |       |       |       |       | Managing | Managing |
|       |       |       |       |       |       | Director | Director |
|       |       |       |       |       |       | or       | or       |
|       |       |       |       |       |       |          | E        |
|       |       |       |       |       |       | E        | xecutive |
|       |       |       |       |       |       | xecutive | Director |
|       |       |       |       |       |       | Director | and      |
|       |       |       |       |       |       | and      | proposed |
|       |       |       |       |       |       | proposed | to the   |
|       |       |       |       |       |       | to the   | In       |
|       |       |       |       |       |       | E        | vestment |
|       |       |       |       |       |       | xecutive | C        |
|       |       |       |       |       |       | Board    | ommittee |
|       |       |       |       |       |       | for      | for      |
|       |       |       |       |       |       | acknowl  | approval |
|       |       |       |       |       |       | edgement | and      |
|       |       |       |       |       |       |          | proposed |
|       |       |       |       |       |       |          | to the   |
|       |       |       |       |       |       |          | E        |
|       |       |       |       |       |       |          | xecutive |
|       |       |       |       |       |       |          | Board    |
|       |       |       |       |       |       |          | for      |
|       |       |       |       |       |       |          | acknowl  |
|       |       |       |       |       |       |          | edgement |
+-------+-------+-------+-------+-------+-------+----------+----------+
| 15    | Exec  | Exec  | Man   | Man   | Man   |          |          |
| mi    | utive | utive | aging | aging | aging |          |          |
| llion | Dir   | Dir   | Dir   | Dir   | Dir   |          |          |
| Baht  | ector | ector | ector | ector | ector |          |          |
| and   |       |       | or    | or    | or    |          |          |
| up    |       |       | Exec  | Exec  | Exec  |          |          |
|       |       |       | utive | utive | utive |          |          |
|       |       |       | Dir   | Dir   | Dir   |          |          |
|       |       |       | ector | ector | ector |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+
| 100   | Board | Board | Man   | -     | -     |          |          |
| mi    | of    | of    | aging |       |       |          |          |
| llion | Dire  | Dire  | Dir   |       |       |          |          |
| Baht  | ctors | ctors | ector |       |       |          |          |
| and   |       |       | or    |       |       |          |          |
| up    |       |       | Exec  |       |       |          |          |
|       |       |       | utive |       |       |          |          |
|       |       |       | Dir   |       |       |          |          |
|       |       |       | ector |       |       |          |          |
+-------+-------+-------+-------+-------+-------+----------+----------+

Definitions in the Approval Authorities Table.

  ------------------------------- ------- --------------------------------
  Approved Credit Line            means   the securities trading approved
                                          limits for the newly open cash
                                          accounts or the new trading
                                          limits after the increasing or
                                          decreasing of the previous limit

  Assistant Vice President, Vice  means   those positions from the
  President and Senior Vice               Marketing Department
  President                               

  First Executive Vice President  means   that position from the Marketing
  and Executive Vice President            Department

  Senior Executive Vice President means   that position from the Marketing
                                          Department

  Executive Board                 means   the Board of Executive Directors
                                          appointed by the Company

  Executive Director              means   The director from the Executive
                                          Board
  ------------------------------- ------- --------------------------------

Settlement Control Policy

The Company has set up a strictly control policy over the customers’
settlement in order to comply with the rules and regulations of SET as
follows:

Payment on securities purchasing should be settled on time. Late payment
or cheques default cases will be followed up by the company’s marketing
officer in order to urge the customers to make payment either by cash or
by depositing into the company’s account and to warn them to be more
careful in the future. Late payment or late submission of share
certificates will subject to a fine. And if the late payment of any
customer happens 3 times in a year, then the account will be closed.

Securities Trading 

The Board of Directors has appointed an Investment Committee to handle
the company’s investment function under the company’s investment. Such
investments may include the investment in both listed securities in the
SET and the MAI or in Bond Dealing Center and the unlisted securities
which consist of both equity and debt instruments and include a long
term as well as short term investments.

Investment Policy

1.  Investment types are divided into 2 types

    1.  Short term investment

    2.  Long term investment

2.  The Investment amount limit is set up so that the company can remain
    its Net Capital Rule of not less than 20%

3.  The Company would invest in those securities from the listed or
    unlisted company in the SET, MAI or in the Thai Bond Dealing Center
    which have good fundamentals, good financial status, fair liquidity
    with growth potential, reasonable price, good management team and
    most of all they should have good governance.

4.  Risk Management

    1.  The risk on investment should be scattered by determining the
        investment according to the period of investment and the types
        of the invested securities groups.

    2.  Set up a hair cut limit.

    3.  Investment decision always supported by research paper.

5.  The monthly report on investment is submitted to the Board of
    Directors monthly for acknowledgement.

As at 31 March 2003 the ratio between the investment in equity and debt
instrument is 76:24 of the total investment of the Company.

Investment Advisory Business

The investment advisory service is considered to be another alternative
service offered to the customers by which various kinds of investment
advices are given to the customers both general or specific advices in
order that the customers will be able to understand all aspects of the
investment in particular company. The customers will be supplied with
adequate information for decision making. And they can be assure that
all advices are standardized on customers’ benefit-oriented basis.

The Financial Advisory and Underwriting Business

The Company also provides the underwriting services of various kinds of
financial instruments both debts and equity instruments together with
the investment advisory services.

The Company’s subsidiary company is providing the financial advisory
services and the investment banking department will give advices
concerning the shareholder structuring, the fund raising through issuing
of financial instruments such as common stocks, preferred stocks,
debentures and debentures with warrant, etc. and the listing of stocks
in the Stock Exchange of Thailand or in Market Alternative Investment
(MAI).

The approval authorities for underwriting were set up as follows:

+---------------------+-----------------+------------------------------+
| Underwriting Value  | Authorized      | Emergency Case               |
|                     | Signers         |                              |
+---------------------+-----------------+------------------------------+
| 1. Not exceeding    | Executive       | Chairman of the Executive    |
| Baht 30million      | Director        | Board and/or                 |
|                     |                 |                              |
|                     |                 | Managing Director may give   |
|                     |                 | prior approval               |
|                     |                 |                              |
|                     |                 | then the approved case       |
|                     |                 | should be submitted          |
|                     |                 |                              |
|                     |                 | to the Executive Board for   |
|                     |                 | re-confirmation              |
+---------------------+-----------------+------------------------------+
| 2. Exceeding Baht   | The Board of    | The Executive Board may give |
| 30million           | Directors       | prior approval               |
|                     |                 |                              |
|                     |                 | then the approved case       |
|                     |                 | should be submitted to       |
|                     |                 |                              |
|                     |                 | the Board of Directors for   |
|                     |                 | re-confirmation              |
+---------------------+-----------------+------------------------------+

(2) Marketing and Competition Situation

Table of Securities Business Statistics Summary

  --------------------------------- ----------- ----------- ----------- -----------
  Year                              1999        2000        2001        2002

  Securities Trading Volume(Million 1,609,787   925,202     1,579,758   2,047,442
  Baht)                                                                 

  Average daily Trading             6,570.60    3,739.66    6,413.59    8,358.19
  Volume(Million Baht)                                                  

  Market total Volume(Million Baht) 2,193,067   1,279,220   1,607,330   1,986,240

  SET Index (Point)                 481.92      269.19      303.85      357.23

  Dividend Payment Rate (%)         0.61        1.78        2.06        2.72

  Rate of closing price per EPS     14.70       5.52        4.92        6.98
  (Time)                                                                

  Number of Listed Company          392         381         382         398
  --------------------------------- ----------- ----------- ----------- -----------

Source : The Stock Exchange of Thailand

Competitive Strategies

The Company’s competitive strategies for securities broker business are
to provide fast and accurate information services in order to facilitate
the customer’s decision making on investment. The company is fully
equipped with efficient Marketing personnel and Securities Analysts
whose analyses will cover the main industries which are of high interest
to the customers. In addition, we also have a subsidiary company which
specializes in Investment Banking and underwriting business and because
we had taken up so many cases of IPO deals, we were continuously able to
offer the IPO shares to the public as well as to our customers to
subscribe. We also operate 4 branches upcountry namely Rangsit,
Nakornpathom, Nakornsawan and Haad Yai Branches in order to serve the
customers in provincial areas.

Marketing and Competition

In 2002, the SET Index had picked up from 303.85 point since the end of
the year 2001 to close at 357.23 point or an increase of 17.32% with the
increase in average daily volume from Baht 6,439 million from the
previous year to Baht 8,357million. The Set Index had increased during
the first half of the year until it reached the highest point at 430.67
point but after that the threatening of war between USA and Iraq had
become more serious thus resulted to the decline of the SET index to the
lowest point at 323.18 point in October before it slightly rebound
during the fourth quarter which were supported by the better performance
announcement of the listed companies in Quarter 3 plus the positive
factor from the decreasing of interest rate together with the
stimulation policy of real estate sector from the government. However,
the uncertainty about the world situation had caused the index to
slightly swing during the last month of the year.

At present, there are totally 36 securities companies which are the
members of the Stock Exchange of Thailand (Broker) which increased from
the existing 27 companies. The 9 increase companies were those
transfromed from sub-broker companies and out of these 9 companies, 8
had provided internet trading service to the customers. The top 5
companies valued by volume had comprised an aggregate market share of
40% of the whole market.

The competitiveness of securities business has still been very intense,
even though the commission rate had been fixed at 0.25% of the trading
volume. Customers as well as marketing staff have always been persuaded
to join other companies by offering more benefits.

Securities Business Trend

The economic situation in the year 2003 which is expected to carry on
from last year together with the political stability of the country will
be the factors supporting investment in the stock market. In addition,
the major plan to develop Thai stock market has aimed at increasing more
liquidity by stimulating more supplies to the stock market. Objectives
were set to increase the number of new listed companies including the
privatization of many large State Enterprises which may raise the market
capitalization of about 360,000million Baht i.e. from 1,600 billion to
2,000 billion Baht. And thus it is also expected that this will recover
the income from underwriting business as well. As for the demand aspect,
the new investor groups will be approached by arranging various
marketing activities or providing training courses on investment. Such
new investor groups may include members from the pension fund, the
retirement group and the early retirement group.

Securities Trading Statistics of the SET in the years 2000, 2001 and
2002

+--------------------------------------+--------+----------+----------+
|                                      | 2000   | 2001     | 2002     |
+--------------------------------------+--------+----------+----------+
| SET Index at year end                | 269.19 | 303.85   | 356.48   |
+--------------------------------------+--------+----------+----------+
| Highest p                            | 498.46 | 342.56   | 430.67   |
| oint of SET Index in the fiscal year |        |          |          |
+--------------------------------------+--------+----------+----------+
| Lowest p                             | 250.60 | 265.22   | 305.19   |
| oint of SET Index in the fiscal year |        |          |          |
+--------------------------------------+--------+----------+----------+
| Daily average trading Volume         | 3,     | 6,413.59 | 8,356.91 |
| (Million Baht)                       | 739.66 |          |          |
+--------------------------------------+--------+----------+----------+
| Ratio of price per average EPS       | 5.52   | 4.92     | 6.98     |
| (times)                              |        |          |          |
+--------------------------------------+--------+----------+----------+
| Ratio of price per average Book      | 1.11   | 1.29     | 1.36     |
| Value (times)                        |        |          |          |
+--------------------------------------+--------+----------+----------+
| Average Dividend yield (%)           | 1.78   | 2.06     | 2.72     |
+--------------------------------------+--------+----------+----------+
| Total Market Volume (Billion Baht)   | 1,     | 1,607.31 | 2,047.83 |
|                                      | 279.22 |          |          |
+--------------------------------------+--------+----------+----------+

Source : The Stock Exchange of Thailand

Securities Trading Volume and top 10 Market Share Ranking of Broker in
the years 2000-2002

[TABLE]

Source : The Stock Exchange of Thailand

Market Share of Financial Advisory and Underwriting Business in the year
2002

Underwriting Business

In the year 2002, the Company had engaged in the underwriting deals
either as leader or co-underwriter of the IPO securities of 16 companies
out of the total 20 companies for the aggregate value of 547million Baht
namely Chuo Senko (Thailand) PCL., ITV PCL., Bangkok Aviation Fuel
Services PCL., M-Link Asia Corporation PCL., Traffic Corner Holdings
PCL., Daidomon Group PCL., Shun Thai Rubber PCL., Yuasa Battery
(Thailand) PCL., The Siam Industrial Credit PCL., Finansa PCL.,
Krungthai Card PCL., Power Line Engineering PCL., Charn Issara
Development PCL., Siam Future Development PCL., Trinity Watthana PCL.,
Ratchthani Leasing PCL., Krung Thai Feedmill PCL., NTS Steel Group PCL.

The competition situation of the Financial Advisory Business

The competition situation of the Financial Advisory and Underwriting
Businesses tend to be more extensive in the future as most of the medium
to small size securities companies are heading toward these fields of
businesses because they can compensate the income with the income from
securities business. However, both the Financial Advisory and
Underwriting businesses are flexible in relation to the securities
market as well. Even so, we still believe that with our high caliber and
expertise in Financial Advisory business, we are able to compete with
others.

The company’s target groups are those listed companies and any other
companies who wish to raise fund through capital market and money
market.

(3) Procurement of Products or Services

Sources of Capital

For the past 2 years the company had not engaged in any outside source
of capital. Most capital came from the shareholders’ equity and was
utilized on investment of debt instrument, and underwriting of common
stocks and debt instrument and the rest was used as working capital. The
loan from other financial institution, if any, would be a short term
one. The sources of capital policy is to choose the source which is more
suitable in relation to the business activities and its objectives and
which will not affect the ratio between total liabilities and
shareholders’ equity as well as the NCR ratio.

Margin loan Policy

In 2002, the Company had allowed margin loan under Credit Balance system
on best cautions. Towards year end, the total Credit Balance outstanding
were amounted to 695million Baht.

The Maintenance of Net Capital Rule

The Company will maintain its Net Capital Rule (NCR) to be up to the
Securities & Exchange Commission’s standard on a daily basis. The types
of assets and the capital of the company will be evaluated everyday in
order to control the company’s NCR to be in line with the standard rate
and timely.

The NCR as of FY2002 year end was 133.85%. As for the Company’s NCR
management policy, the company has arranged for various sources of
capital such as to open up credit lines with some financial institutions
or the sources of capital from shareholders’ equity through increasing
of company’s capital by rights issue or Public offering through the SET
at the right timing and through the most suitable financial instruments.