5. The Operating Assets

5.  Property, Plant and Equipment

  Objective: For business operations of the Company and its subsidiaries
  as at December 31, 2012

  []

5.  The Company and subsidiaries carry on the business of real property

– N/A –

5.  Intangible assets

    []

  The Company and its subsidiaries have trademarks and concessions for
  shale and limestone mining (for cement industry) in Kaengkhoi,
  Saraburi, limestone mining (for construction industry) in Uthong,
  Suphanburi, and for Gypsum mining in Nongbue, Nakornsawan and plant
  license for aggregates operation in Uthong, Suphanburi.

5.4 The Policy on investment in Subsidiary and Associated Companies

The Company’s business operation policy is to emphasize on its core
business, i.e. cement manufacturing and distribution. Formation any
associated company or investment in any subsidiary will be made only
when it is in line with this policy. Generally, the Company’s equity
interest in a subsidiary is 100%, except in the case of a joint venture
company which would depend on the agreement with the joint venture
partner(s). With respect to the management, the Company would normally
have its representatives in the Board of Directors of the subsidiary and
associated company.

The Company’s equity interest and control in the existing subsidiary and
associated companies are as follows:

+-------------------------------+--------------+------------+---------+
| Company                       | Relation / % | Number of  | Partic  |
|                               | of           | Directors  | ipation |
|                               | shareholding | re         | in      |
|                               |              | presenting | policy  |
|                               |              | the        | setting |
|                               |              | Com        |         |
|                               |              | pany/Total |         |
|                               |              | of         |         |
|                               |              | Directors  |         |
+===============================+==============+============+=========+
| 1.  Siam City Concrete Co.,   | Subsidiary / | 4/5        | Yes     |
|     Ltd.                      | 99.99        |            |         |
+-------------------------------+--------------+------------+---------+
| 2.  Conwood Co., Ltd.         | Subsidiary / | 5/5        | Yes     |
|                               | 99.99        |            |         |
+-------------------------------+--------------+------------+---------+
| 3.  Siam City Power Co., Ltd. | Subsidiary / | 7/7        | Yes     |
|                               | 99.99        |            |         |
+-------------------------------+--------------+------------+---------+
| 4.  Insee Superblock Co.,     | Subsidiary / | 3/3        | Yes     |
|     Ltd.                      | 99.99        |            |         |
+-------------------------------+--------------+------------+---------+
| 5.  Khmer Cement Industry     | Subsidiary / | 2/3        | Yes     |
|     Company Limited*          | 75.00        |            |         |
+-------------------------------+--------------+------------+---------+
| 6.  Lanna Resources Public    | Associated / | 3/14       | No      |
|     Company Limited           | 44.99        |            |         |
+-------------------------------+--------------+------------+---------+
| 7.  Holcim Cement             | Holding/     | 1/7        | No      |
|     (Bangladesh) Co., Ltd.    | 10.42        |            |         |
+-------------------------------+--------------+------------+---------+
|                               |              |            |         |
+-------------------------------+--------------+------------+---------+
|   Hold by Conwood Co., Ltd.   |              |            |         |
+-------------------------------+--------------+------------+---------+
|   1.PT. Conwood Company       | Subsidiary / | 3/4        | Yes     |
|   Limited                     | 99.99        |            |         |
+-------------------------------+--------------+------------+---------+
|                               |              |            |         |
+-------------------------------+--------------+------------+---------+

Remark: * According to the joint venture agreement, Khmer Cement
Industry Company Limited (herein after called “KCI”) was incorporated
under the law of Cambodia. KCI commenced its operation on 1 April 2005.
However, at the time of its incorporation and until 31 December 2009,
the registered capital was equivalent to USD 405,000. The capital will
be increased from time to time when the business of the company
requires. The Company holds 75 percent interest or equal to USD 303,750.