5. OPERATING ASSETS

5.1 Fixed Assets of the Company

As of 31 December 2012, the book value of the Company’s total fixed
assets, less accumulated depreciation and reserves for impairment, used
in business operations as shown in the consolidated financial statements
of the Company is Baht 10,034.3 million or 27.3% of the total assets.
The details are as follows:

  -----------------------------------------------------------------------
                                      Unit : Baht       
                                      million           
  ----------------------------------- ----------------- -----------------
  Descriptions                        Book Value Less   Contingent
                                      Accumulated       Liabilities
                                      Depreciation as   
                                      of                

                                      31 December 2012  31 December 2012

  Land and land improvement           4,011.8           211.3

  Buildings and structures            2,539.7           822.4

  Machinery and equipment             1,811.7           667.4

  Vehicles                            158.5             -

  Fixtures and office equipment       106.7             -

  Assets under construction and       1,405.9           -
  installation                                          

  Total net book amount               10,034.3          1,701.1
  -----------------------------------------------------------------------

Note: As of 31 December 2012, certain plots of land, land improvement,
buildings and structures, and machinery and equipment of certain
subsidiaries with net book value amounting of Baht 1,701.1 million have
been mortgaged as collateral for overdrafts and short-term loans and
long-term loans from the financial institutions.

Certain land, factories and buildings and structures of the Company were
mortgaged as collateral for the repayment of debt to the financial
institutions pursuant to the loan agreements.

2.  Intangible Assets

The Company used intangible assets in its business operations. As of 31
December 2012, the net book value of the intangible assets is Baht 21.4
million or 0.1% of the total assets, consists of computer software.

3.  Long-term Lease

We lease various properties on which certain of offices and processing
facilities are located. The following table sets forth information
relating to the material lease agreements of the properties leased by us
and the long-term lease agreements:

+--------------+---------+-------------+---------+--------+----------+
| Location     | Gross   | Lease Term  | Annual  | La     | P        |
|              | Area    |             | Rent    | ndlord | rincipal |
|              | (appro  |             |         |        | Use      |
|              | ximate) |             |         |        |          |
|              | (sq m)  |             |         |        |          |
+==============+=========+=============+=========+========+==========+
| STA          |         |             |         |        |          |
+--------------+---------+-------------+---------+--------+----------+
| Park         | 1,345   | 1 February  | Baht    | L      | Office   |
| Ventures     |         | 2012 to 31  | 1,45    | ertrat | space    |
| Ecoplex,     |         | January     | 2,524.4 | takarn |          |
| Lumpini,     |         | 2015        |         | Co.,   |          |
| Pathumwan,   |         |             |         | Ltd.   |          |
| Bangkok      |         |             |         |        |          |
+--------------+---------+-------------+---------+--------+----------+
| Sri Trang    |         |             |         |        |          |
| I            |         |             |         |        |          |
| nternational |         |             |         |        |          |
+--------------+---------+-------------+---------+--------+----------+
| No. 38-02,   | 474     | First       | S$39    | OUB    | Office   |
| One Raffles  |         | period      | ,668.56 | Centre | space    |
| Place,       |         |             | per     | L      |          |
| Singapore    |         | 8 Janurary  | month   | imited |          |
|              |         | 2012 to 30  |         |        |          |
|              |         | April 2014  | S$5     |        |          |
|              |         |             | 6,122.0 |        |          |
|              |         | Second      | per     |        |          |
|              |         | period      | month   |        |          |
|              |         |             |         |        |          |
|              |         | 1 May 2012  |         |        |          |
|              |         | to 7        |         |        |          |
|              |         | January     |         |        |          |
|              |         | 2015        |         |        |          |
+--------------+---------+-------------+---------+--------+----------+

5.4 Intellectual Property

Our Group does not own any intellectual property, patents or trademarks

5.  Policies on Investment in Subsidiaries and Associates

STA has an investment policy to be the leader in the natural rubber
industry. STA makes investments so that it can be in the entire supply
chain, increase the product value, or obtain the services which support
its businesses and which benefit the Company as a whole. The investments
will be made pursuant to the economic conditions at such time.

In respect of the polices on investment in subsidiaries and associates,
STA Directors will serve as directors of its subsidiaries and associates
and STA may, if it is deemed appropriate, nominate its representatives
to serve as directors of its subsidiaries and associates. The Directors
of STA will be involved in the decision making in relation to the
business management as a whole in order to enable such entities to be in
line with the Group’s direction.