Assets used for business

1.  Fixed assets

The Company is located at 323 United Center Building, Floor 9^(th),
23^(rd) –25^(th), and 45^(th), Silom Road, Bangrak District, Bangkok
10500. The Company has rent the building from United Company Limited.
Details of other assets are as follows:

Fixed asset of KGI Securities (Thailand) Public Company Limited

+-----------------------+-------------+------------+------------------+
| Description           | Net book    | Ownership  | Colla            |
|                       | value (Bt)  |            | teral/contingent |
| (As of December       |             |            | in loan          |
| 31^(st) 2001)         |             |            | agreement        |
+-----------------------+-------------+------------+------------------+
| 1.  Land (Chon Buri   | 2,092,000   | Company’s  | -                |
|     and Supanburi     |             | asset      |                  |
|     branches)         |             |            |                  |
+-----------------------+-------------+------------+------------------+
| 2.  Building (Chon    | 3,723,048   | Company’s  | -                |
|     Buri and          |             | asset      |                  |
|     Supanburi         |             |            |                  |
|     branches)         |             |            |                  |
+-----------------------+-------------+------------+------------------+
| 3.  Office furniture  | 38,309,484  | Company’s  | -                |
|                       |             | asset      |                  |
+-----------------------+-------------+------------+------------------+
| 4.  Office equipment  | 82,520,827  | Company’s  | -                |
|                       |             | asset      |                  |
+-----------------------+-------------+------------+------------------+
| 5.  Vehicles          | 13,562,314  | Company’s  | -                |
|                       |             | asset      |                  |
+-----------------------+-------------+------------+------------------+
| 6.  Leased vehicles   | 11,303,243  | Leasing    | -                |
+-----------------------+-------------+------------+------------------+
| 7.  Work in process   | 2,727,997   | Company’s  | -                |
|                       |             | asset      |                  |
+-----------------------+-------------+------------+------------------+
|                       | 154,238,913 |            |                  |
+-----------------------+-------------+------------+------------------+

Subsidiaries’ assets

+-----------------------+-------------+------------+------------------+
| Description           | Net book    | Ownership  | Colla            |
|                       | value (Bt)  |            | teral/contingent |
| (As of December       |             |            | in loan          |
| 31^(st) 2001)         |             |            | agreement        |
+-----------------------+-------------+------------+------------------+
| 1.  Building          | 166,728     | Leased     | -                |
+-----------------------+-------------+------------+------------------+
| 2.  Office furniture  | 6,636       | Leased     | -                |
+-----------------------+-------------+------------+------------------+
| 3.  Office equipment  | 5,309,467   | Leased     | -                |
+-----------------------+-------------+------------+------------------+
| 4.  Vehicles          | 6,133,963   | Leased     | -                |
+-----------------------+-------------+------------+------------------+
|                       | 11,616,794  |            |                  |
+-----------------------+-------------+------------+------------------+

2.  Loans for securities trading

A.  Policy on provision of doubtful accounts and diminution of
    investment

The Company recognized allowance for doubtful accounts by evaluating
each receivables financial status, repayment risk, and collateral
securities as stipulated by the Office of Securities and Exchange
Commission Notification No. Kor Thor 45/1997 and other factors.

As of December 31^(st) 2001, the Company reserved Bt189.69mn on
allowance for doubtful accounts from securities receivables and accrued
interest receivables of Bt719.30mn. All allowances were sufficient, as
to the SEC’s requirement.

For reserve on diminution of securities, the Company compared cost of
securities with market price of securities and set aside reserves
whenever cost of securities is higher than market price. If the
securities prices were likely to decline permanently, the Company would
recognize the reserve on diminution of securities in full.

The Board of Directors Meeting No.5/2001 on August 23^(rd) 2001
authorized the Company to write off long outstanding receivables and
accrued interest receivables totaling approximately Bt2,510mn, for which
full provision had already been set up, by reducing the receivable
balance against the provision for doubtful debts.

Regarding reserve on impairment of fixed assets as required by the SEC,
the Company currently had only office furniture and equipment, which are
considered immaterial to reserve on impairment of fixed assets. However,
the Company has complied with the accounting standard No. 36, Impairment
of assets.

B.  Policy on stop revenue recognition

The Company has policy to stop accrued securities receivables of more
than 3 months. The Company also classified such securities receivables
as substandard receivables and would further consider on the recognition
of allowance for doubtful accounts.