2.4 Utilization of Assets

The Company and its subsidiary company has its office situated at
Thanapoom Tower Building, 4-5^(th) Floors, No. 1550 New Petchburi Road,
Makkasan, Rajthevee, Bangkok 10400 by renting the building from Western
Property Co., Ltd. The list of Company’s major assets as at 31 December
2010 are as follows:

Classification of Assets and Allowance for Doubtful Accounts Policy

The Company has laid down its policy on assets classification and
provisions in accordance with the SEC’s Rules. Debts especially on
margin loan were classified as bad debt, doubtful debt and substandard
debt. The bad debt is identified as the loan balance which after every
efforts of collection, the debt still remains unpaid. The substandard
debt means the loan balance which is not higher than the collateralized
portion of loans and the doubtful debt is the debt which the loan
balance is higher than the collateralized portion of the value of debt.

With such classification of assets, the Company has set up a policy for
the Allowance for Doubtful Accounts to be 100% of the uncollateralized
portion of the value of debts.

The Unrecognition of Revenue Policy

Unsettled transactions will not be recognized as company’s revenue if
they were not settled within 3 months and the Company will set up the
allowance for doubtful debts amount in the rate not less than 100 % of
the loan balance for the uncollateralized portion of the value of debts.

The Allowance for Impairment of Assets Policy

The Company and its subsidiary has set up an allowance for impairment of assets policy by estimating its asset whether there was an indication that such asset might be impaired. The Company and its subsidiary would compare the book value with the asset’s recoverable amount. When the book value exceeded its recoverable amount, the Company and its subsidiary would set up the allowance for impairment of assets. An asset’s recoverable amount was the higher of fair value less costs to sell and value in use. However, the Company considered the allowance for impairment of its assets in the case that there was an indication that such asset might be impaired in accordance with the General Accounting Standard No. 36 concerning the Impairment of Assets. 

Investment in Subsidiary and Associated Company Policy

The Company has set up an investment in subsidiary and associated
company policy for the purpose of expansion of its business, diversify
investment risks including consideration on benefit obtained from
efficient use of existing resources and also consideration on
appropriate rate of return depending on type of businesses. For the
management policy, it mainly considered on shareholders’ benefits in
general.

Moreover, the decision of designated persons and its members to join in
the management of such subsidiary and associated company will be
considered on a case by case basis with the partners.

As for United Asset Management Co., Ltd., which is the Company’s
subsidiary company was established by a joint investment between the
Company and Mr. Verajet Vongkusolkit and his family in the proportion of
62 : 48, respectively as of September, 2010 ( as of December, 2009 :
54:46). Such company has one designated person from the major
shareholder as the Chairman of the Board and Mr. Verajet as a Director
and Managing Director with one former management staff of the Company as
a director and Deputy Managing Director. United Asset Management Co.,
Ltd. has the objective to undertake Private Fund management business. In
2010, the Company subsidiary had been sold Land & Houses Retail Bank,
Pcl, therefore, as of 31 December, 2010 the Company had no subsidiary.