5. Assets used for business 

(5.1) Fixed assets of the Company and its subsidiaries

A. Assets used in the Company’s business are as follows:

+-----------------------+------------+-------------+-----------------+
| Description           | Net book   | Ownership   | Collat          |
|                       | value      |             | eral/obligation |
| (As of December       | (Baht)     |             |                 |
| 31^(st) 2011)         |            |             |                 |
+-----------------------+------------+-------------+-----------------+
| Land (Supanburi       | 1,820,000  | Company’s   | None            |
| branch)               |            | asset       |                 |
+-----------------------+------------+-------------+-----------------+
| Building (Supanburi   | 375,090    | Company’s   | None            |
| branch)               |            | asset       |                 |
+-----------------------+------------+-------------+-----------------+
| Office furniture      | 31,079,429 | Company’s   | None            |
|                       |            | asset       |                 |
+-----------------------+------------+-------------+-----------------+
| Office equipment      | 61,716,675 | Company’s   | None            |
|                       |            | asset       |                 |
+-----------------------+------------+-------------+-----------------+
| Vehicles              | 11         | Company’s   | None            |
|                       |            | asset       |                 |
+-----------------------+------------+-------------+-----------------+
| Work in progress      | 19,459,012 | Company’s   | None            |
|                       |            | asset       |                 |
+-----------------------+------------+-------------+-----------------+
| Total                 | 1          |             |                 |
|                       | 14,450,217 |             |                 |
+-----------------------+------------+-------------+-----------------+

B.  Assets used in subsidiaries’ business are as follows:

+-----------------------+------------+-------------+------------------+
| Description           | Net book   | Ownership   | Colla            |
|                       | value      |             | teral/obligation |
| (As of December       | (Baht)     |             |                  |
| 31^(st) 2011)         |            |             |                  |
+-----------------------+------------+-------------+------------------+
| Building Renovation   | 936,349    | S           | None             |
|                       |            | ubsidiary’s |                  |
|                       |            | asset       |                  |
+-----------------------+------------+-------------+------------------+
| Office furniture      | 516,145    | S           | None             |
|                       |            | ubsidiary’s |                  |
|                       |            | asset       |                  |
+-----------------------+------------+-------------+------------------+
| Office equipment      | 7,911,908  | S           | None             |
|                       |            | ubsidiary’s |                  |
|                       |            | asset       |                  |
+-----------------------+------------+-------------+------------------+
| Vehicles              | 391,432    | S           | None             |
|                       |            | ubsidiary’s |                  |
|                       |            | asset       |                  |
+-----------------------+------------+-------------+------------------+
| Total                 | 9,755,834  |             |                  |
+-----------------------+------------+-------------+------------------+

(5.2) Rental property

The Company rents the following space to operate business at its head
office and branches.

+---------------------+------------------------------+-----------------+
| Rental Property     | Lessor                       | Remaining       |
|                     |                              | period          |
|                     |                              |                 |
|                     |                              | of lease        |
|                     |                              |                 |
|                     |                              | as at 31^(st)   |
|                     |                              | December 2011   |
+---------------------+------------------------------+-----------------+
| 1. Head office      | City Realty Co.,Ltd          | 3 years 1 month |
+---------------------+------------------------------+-----------------+
| 2. Nakhon           | K.R.Shopping Center Co.,Ltd. | 2 years 11      |
| Ratchasima branch   |                              | months          |
+---------------------+------------------------------+-----------------+
| 3. Samut Sakhon     | A.T. Asset Co., Ltd.         | 1 years 6       |
| branch              |                              | months          |
+---------------------+------------------------------+-----------------+
| 4. Nakhon Sawan     | Individual                   | 2 years 8       |
| branch              |                              | months          |
+---------------------+------------------------------+-----------------+
| 5. Pin Klao branch  | CPN Retail Growth Leasehold  | 1 years 9       |
|                     | Property Fund                | months          |
+---------------------+------------------------------+-----------------+
| 6. Nakhon Pathom    | Individual                   | 2 years 6       |
| branch              |                              | months          |
+---------------------+------------------------------+-----------------+
| 7. Chiang Rai       | Individual                   | 11 months       |
| branch              |                              |                 |
+---------------------+------------------------------+-----------------+
| 8. Phetchaburi      | Individual                   | 3 years         |
| branch              |                              |                 |
+---------------------+------------------------------+-----------------+
| 9. Hat Yai branch   | Lee Garden Hotel Co., Ltd.   | 2 years         |
+---------------------+------------------------------+-----------------+
| 10. Udon Thani      | Individual                   | 2 months        |
| branch              |                              |                 |
+---------------------+------------------------------+-----------------+
| 11. Changwattana    | Na-Nakorn Estate Co.,Ltd.    | 6 months        |
| branch              |                              |                 |
+---------------------+------------------------------+-----------------+
| 12. Taphra branch   | The Mall Shopping Complex    | 3 years         |
|                     | Company Limited              |                 |
+---------------------+------------------------------+-----------------+
| 13. Silom Center    | Porn Real Estate Co.,Ltd     | 10 months       |
| branch              |                              |                 |
+---------------------+------------------------------+-----------------+

  (5.3) Loans for securities trading in credit balance accounts

  As of 31^(st) December 2011, the Company’s loans for securities
  trading in credit balance accounts amounted to Baht 1,032 million. The
  policy regarding loans for securities trading in credit balance
  accounts is as follows:

  (A) Policy on margin securities

  The Company has a very strict plan in controlling and managing loans
  and has a system that alerts the Company when cash or other assets are
  required from a client to meet the collateral requirement. This
  system, in conjunction with loan- control policies, helps the Company
  minimize its risks.

  (B) Policy on stocks margins

  The Company produces a list of marginable securities that have good
  fundamentals and high liquidity in the market. The Company reviews the
  list of marginable securities and makes the necessary adjustments to
  the list on a monthly basis at minimum. The margin of each security
  will not be lower than the margin specified by the SEC and/or SET. The
  Company announces the list on a regular basis and the clients will
  always be informed whenever there is a change.

  (C) Policy on type of acceptable collateral

  The types of asset to be accepted as collateral when calculating the
  purchasing power in credit balance accounts are:

  1. Cash; and

  2. Securities allowed by the Company to be bought or sold in credit
  balance accounts.

  (D) Policy on control and collection of debts

  In the case where there is bad debt from credit balance accounts or
  cash accounts, the Company has a policy to control and follow up on
  the debts by carrying out the procedures below:

1.  Operations Department will inform the Legal & Compliance Department
    about the default.

2.  The Legal & Compliance Department will then collect all the
    documents related to the default and conduct an investigation.

3.  The Legal & Compliance Department will then negotiate with the
    defaulting client in regards to the repayment to the Company:

    1.  In the case where the defaulting client agrees to repay the
        Company, the Legal & Compliance Department will prepare a
        repayment agreement to be signed by the defaulting client.

    2.  In the case where the negotiation fails, the Legal & Compliance
        Department will issue legal notice of demand to the defaulting
        client.

4.  In the case where the Legal & Compliance Department has issued a
    legal notice and there is still no repayment made by the defaulting
    client, the Legal & Compliance Department shall submit such case for
    further court proceeding.

  (E) Policy on provision for doubtful accounts

  The Company has provided an allowance for doubtful debts based on a
  review of debtor's ability to make repayment, taking into
  consideration recovery risk and the value of the collateral. Such debt
  classifications and provisions are made in accordance with the
  guidelines laid down in Notification No. Kor. Thor. 5/2544 dated
  15^(th) February 2001 of the Office of the Securities and Exchange
  Commission, and consideration of other relevant factors.

  (5.4) Investments in debt and equity securities

  As of 31^(st) December 2011, the Company’s net amounted to Baht 2,298
  million, consisting of trading securities totaled Baht 2,200 million
  and Held-to-maturity debt securities totaled Baht 8 million and other
  investment totaled Baht 90 million. The Company sets the risk
  management committee to review investment policy and monitor risk from
  investment to follow the Company’s criteria (See notes of Financial
  Statements Section 13: Investments)

  (5.5) Investment in subsidiary companies

  As of 31 December 2011, the Company’s investment in subsidiary
  companies was Baht 2,625 million. (See note of Financial Statements
  Section 14: Investments in subsidiary companies)

  The Company’s policy is to maximize value for its shareholders and its
  investments in subsidiaries are made with that objective in mind.

6.  Intangible Assets

  As of 31 December 2011, the Company’s intangible assets were Baht 46
  million, consisting of computer software Baht 21 million and Computer
  software under development Baht 25 million.

  (See Note of financial statements Section 16: Intangible Assets)