4. Operating assets

1.  Operating assets of the Company and its subsidiaries

(A) As at 31 December 2011, the principal assets of the Company and its
subsidiaries that are used in its business operations are as follows:

[TABLE]

(A) Transfer to investment properties according to TAS 40 (revised 2009)

  As a policy, land and building revaluation by independent appraiser
  will be made every 3 years. The hotel buildings and other buildings
  were revalued using the “Depreciated Replacement Cost Approach” and
  land was revalued using the “Fair Market Approach” by Knight Frank
  Chartered (Thailand) Co.,Ltd. dated 30 November 2010.

(B) As at 31 December 2011, investment properties of the Company and its
subsidiaries are as follows:

[TABLE]

  As a policy, investment property revaluation by independent appraiser
  will be made every year. The buildings were revalued using the
  “Depreciated Replacement Cost Approach”, rental buildings were
  revalued using the “Residual Value Approach” and land was revalued
  using the “Fair Market Approach” by Knight Frank Chartered (Thailand)
  Co.,Ltd. dated 6 December 2011.

  4.2 Property development projects for sale

As at 31 December 2011, the property development projects for sale of
the Company and its subsidiaries are as follows:

+---------+---------------+------+----+----+---+-----+-----+--------+
| Co      | Project       | Pro  | P  | Ty | A | B   | Com | Conti  |
| mpany’s |               | ject | ro | pe | v | ook | ple | ngency |
| name    |               | Loca | je | of | a | Va  | ted |        |
|         |               | tion | ct |    | i | lue |     |        |
|         |               |      | ar | O  | l |     | P   |        |
|         |               |      | ea | wn | a | (M  | roj |        |
|         |               |      | (  | er | b | ill | ect |        |
|         |               |      | Ra | sh | l | ion | D   |        |
|         |               |      | i- | ip | e | Ba  | ate |        |
|         |               |      |    |    | u | ht) |     |        |
|         |               |      | N  |    | n |     |     |        |
|         |               |      | ga |    | i |     |     |        |
|         |               |      | n- |    | t |     |     |        |
|         |               |      | Sq |    | s |     |     |        |
|         |               |      | w) |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 1. Laguna     | Ph   | 11 | O  | 1 | 97  | J   | None   |
| Resorts | Village       | uket | -3 | wn | 3 |     | une |        |
| &       | Villas        |      | -7 | er |   |     | 2   |        |
| Hotels  |               |      | 3. |    |   |     | 008 |        |
| Pcl.    |               |      | 93 |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 2. The Lofts  | Ph   | 9  | O  | 2 | 237 | J   | (5)    |
| Grande  |               | uket | -0 | wn | 0 |     | uly | Mo     |
| Limited |               |      | -7 | er |   |     | 2   | rtgage |
|         |               |      | 2. |    |   |     | 011 | of 910 |
|         |               |      | 74 |    |   |     |     | MB     |
+---------+---------------+------+----+----+---+-----+-----+--------+
| TWR-H   | 3. Laguna     | Ph   | 18 | O  | 2 | 22  | Sep | None   |
| oldings | Village       | uket | -3 | wn |   |     | tem |        |
| Limited | Townhomes 1   |      | -1 | er |   |     | ber |        |
|         |               |      | 2. |    |   |     | 2   |        |
|         |               |      | 85 |    |   |     | 007 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 4. Laguna     | Ph   | 14 | O  | 3 | 30  | J   | None   |
| Resorts | Village       | uket | -3 | wn |   |     | une |        |
| &       | Townhomes 2   |      | -9 | er |   |     | 2   |        |
| Hotels  |               |      | 8. |    |   |     | 008 |        |
| Pcl.    |               |      | 00 |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| TWR-H   | 5. Laguna     | Ph   | 4  | O  | 4 | 52  | No  | None   |
| oldings | Village       | uket | -0 | wn |   |     | vem |        |
| Limited | Townhomes 3   |      | -2 | er |   |     | ber |        |
|         |               |      | 0. |    |   |     | 2   |        |
|         |               |      | 38 |    |   |     | 009 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 6. Laguna     | Ph   | 8  | O  | 3 | 50  | Fe  | None   |
| Holiday | Village       | uket | -2 | wn |   |     | bru |        |
| Club    | Townhomes 4   |      | -0 | er |   |     | ary |        |
| Limited |               |      | 8. |    |   |     | 2   |        |
|         |               |      | 00 |    |   |     | 010 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| TWR-H   | 7. Laguna     | Ph   | 16 | O  | 1 | 16  | Sep | None   |
| oldings | Village       | uket | -0 | wn |   |     | tem |        |
| Limited | Residences 3  |      | -4 | er |   |     | ber |        |
|         |               |      | 0. |    |   |     | 2   |        |
|         |               |      | 30 |    |   |     | 008 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| TWR-H   | 8. Laguna     | Ph   | 9  | O  | 7 | 53  | Con | None   |
| oldings | Village       | uket | -1 | wn |   |     | str |        |
| Limited | Residences 5  |      | -1 | er |   |     | uct |        |
|         |               |      | 6. |    |   |     | ion |        |
|         |               |      | 58 |    |   |     | af  |        |
|         |               |      |    |    |   |     | ter |        |
|         |               |      |    |    |   |     | sa  |        |
|         |               |      |    |    |   |     | les |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Thai    | 9. Laguna     | Ph   | 9  | O  | 4 | 49  | Aug | None   |
| Wah     | Village       | uket | -2 | wn |   |     | ust |        |
| Plaza   | Residences 6  |      | -2 | er |   |     | 2   |        |
| Limited |               |      | 8. |    |   |     | 010 |        |
|         |               |      | 41 |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 10. Banyan    | Ph   | 8  | O  | 1 | 233 | J   | (6)    |
| Banyan  | Tree Two      | uket | -3 | wn | 0 |     | anu | Mo     |
| Tree    | Bedroom Pool  |      | -0 | er |   |     | ary | rtgage |
| Limited | Villa Phase 3 |      | 0. |    |   |     | 2   | of 700 |
|         |               |      | 00 |    |   |     | 010 | MB     |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 11. Banyan    | Ph   | 40 | O  | 1 | 21  | Ma  | (7)    |
| Banyan  | Tree Double   | uket | -3 | wn |   |     | rch | Mo     |
| Tree    | Pool Villa    |      | -1 | er |   |     | 2   | rtgage |
| Limited |               |      | 0. |    |   |     | 007 | of     |
|         |               |      | 00 |    |   |     |     | 1,552  |
|         |               |      |    |    |   |     |     | MB     |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 12. Banyan    | Ph   | 5  | O  | 2 | 102 | O   | As per |
| Banyan  | Tree Deluxe   | uket | -0 | wn |   |     | cto | (6)    |
| Tree    | Double Pool   |      | -0 | er |   |     | ber |        |
| Limited | Villa         |      | 3. |    |   |     | 2   |        |
|         |               |      | 00 |    |   |     | 009 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Thai    | 13. Banyan    | Ban  | 1  | O  | 1 | 129 | De  | As per |
| Wah     | Tree          | gkok | -3 | wn | 2 |     | cem | (2)    |
| Plaza   | Residences    |      | -8 | er |   |     | ber |        |
| Limited | Bangkok       |      | 0. |    |   |     | 2   |        |
|         |               |      | 00 |    |   |     | 008 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 14. Laguna    | Ph   | 19 | O  | 8 | 421 | No  | (8)    |
| Holiday | Holiday Club  | uket | ,0 | wn | 4 |     | vem | Mo     |
| Club    |               | /    | 84 | er |   |     | ber | rtgage |
| Limited |               | Ch   | S  |    |   |     | 2   | of 30  |
|         |               | iang | qm |    |   |     | 008 | MB     |
|         |               | Mai  |    |    |   |     |     |        |
|         |               | /    |    |    |   |     |     |        |
|         |               |      |    |    |   |     |     |        |
|         |               | Hua  |    |    |   |     |     |        |
|         |               | Hin  |    |    |   |     |     |        |
|         |               | /    |    |    |   |     |     |        |
|         |               | Pat  |    |    |   |     |     |        |
|         |               | taya |    |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Laguna  | 15. Dusit     | Ph   | 2  | O  | 1 | 143 | J   | None   |
| Resorts | Residences 1  | uket | 96 | wn | 3 |     | uly |        |
| &       |               |      | S  | er |   |     | 2   |        |
| Hotels  |               |      | qm |    |   |     | 008 |        |
| Pcl.    |               |      |    |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| PT. AVC | 16. AVC       | I    | 14 | O  | 6 | 52  | J   | None   |
| In      | Indonesia     | ndon | ,4 | wn |   |     | anu |        |
| donesia |               | esia | 35 | er |   |     | ary |        |
|         |               |      | S  |    |   |     | 2   |        |
|         |               |      | qf |    |   |     | 008 |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Sub     | 17. Land      | Ph   | 8  | O  | - | 696 | -   | None   |
| sidiary | awaiting for  | uket | 89 | wn |   |     |     |        |
| co      | future        |      | -1 | er |   |     |     |        |
| mpanies | development   |      | -9 |    |   |     |     |        |
|         |               |      | 0. |    |   |     |     |        |
|         |               |      | 80 |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
| Sub     | 18. Other     | Ph   | -  | O  | - | 228 | -   | None   |
| sidiary |               | uket |    | wn |   |     |     |        |
| co      |               |      |    | er |   |     |     |        |
| mpanies |               |      |    |    |   |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+
|         |               |      |    | T  | 1 | 2,  |     |        |
|         |               |      |    | ot | 8 | 631 |     |        |
|         |               |      |    | al | 5 |     |     |        |
+---------+---------------+------+----+----+---+-----+-----+--------+

4.3 Intangible Assets

  The intangible assets of the Company and its subsidiaries comprise of
  goodwill amounting to Baht 30 million from the acquisition of 100
  percent of Thai Wah Plaza Limited in 2005 and goodwill amounting to
  Baht 351 million from the acquisition of 49 percent of Laguna Banyan
  Tree Limited in 2002.

  The goodwill represents the excess of the purchase price over the fair
  value of net assets recorded in the balance sheet. From 1 January
  2008, the Company discontinued the amortization of goodwill and
  instead now tests for impairment in compliance with accounting
  standard no. 43 (revised 2007) regarding “Business Combinations”.

4.4 Investment policy in subsidiary and associated companies

  The Company has a policy of investing in subsidiary and associated
  companies which possess the same business activity and potential
  growth prospects. The appropriate return on capital is considered when
  making the investments. Such investments are made only after due
  consideration and approval either by the Board of Directors or
  Management depending on the size of investment as follows:

-   Investments more than US$ 10 million to be approved by the Board.

-   Investments between US$ 5 - 10 million to be jointly approved by the
    Chief Executive Officer and any 1 director.

-   Investments less than US$ 5 million to be approved by the Chief
    Executive Officer.

  For subsidiary companies, the directors are appointed by the Company
  based on its controlling ownership interest. The directors are
  assigned the task of making significant policies, managing and
  controlling the subsidiary’s operation consistent with the Company’s
  policies, thereby ensuring a sufficient return on investment to it as
  well as the shareholders.

  For associated companies, the directors are appointed by the Company
  based on the percentage of ownership. However, the Company has no
  significant influence over the management of the associates.

  The current intention of management in regards to its investment
  policy is to pursue any investment opportunities both within and
  outside Laguna Phuket that provides the shareholders with a sufficient
  return on investment.