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    | Colla            |
|                     | value       |              | teral/obligation |
| (As of December     | (Baht)      |              |                  |
| 31^(st) 2008)       |             |              |                  |
+---------------------+-------------+--------------+------------------+
| Land (Supanburi     | 1,820,000   | Company’s    | None             |
| branch)             |             | asset        |                  |
+---------------------+-------------+--------------+------------------+
| Building (Supanburi | 867,090     | Company’s    | None             |
| branch)             |             | asset        |                  |
+---------------------+-------------+--------------+------------------+
| Office furniture    | 2,015,530   | Company’s    | None             |
|                     |             | asset        |                  |
+---------------------+-------------+--------------+------------------+
| Office equipment    | 39,334,802  | Company’s    | None             |
|                     |             | asset        |                  |
+---------------------+-------------+--------------+------------------+
| Vehicles            | 4,042,400   | Company’s    | None             |
|                     |             | asset        |                  |
+---------------------+-------------+--------------+------------------+
| Work in progress    | 168,503,661 | Company’s    | None             |
|                     |             | asset        |                  |
+---------------------+-------------+--------------+------------------+
| Total               | 216,583,483 |              |                  |
+---------------------+-------------+--------------+------------------+

B.  Assets used by subsidiaries are as follows:

+---------------------+-------------+--------------+-------------------+
| Description         | Net book    | Ownership    | Coll              |
|                     | value       |              | ateral/obligation |
| (As of December     | (Baht)      |              |                   |
| 31^(st) 2008)       |             |              |                   |
+---------------------+-------------+--------------+-------------------+
| Building Renovation | 837,455     | Subsidiary’s | None              |
|                     |             | asset        |                   |
+---------------------+-------------+--------------+-------------------+
| Office furniture    | 31,985      | Subsidiary’s | None              |
|                     |             | asset        |                   |
+---------------------+-------------+--------------+-------------------+
| Office equipment    | 2,580,362   | Subsidiary’s | None              |
|                     |             | asset        |                   |
+---------------------+-------------+--------------+-------------------+
| Vehicles            | 4,482,268   | Financial    | Collateral as per |
|                     |             | lease        | leasing agreement |
+---------------------+-------------+--------------+-------------------+
| Total               | 7,932,070   |              |                   |
+---------------------+-------------+--------------+-------------------+

  5.2 Rental property

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

+------------------+---------------------------+----------------------+
| Branch           | Lessor                    | Remaining period of  |
|                  |                           | lease                |
|                  |                           |                      |
|                  |                           | as at 31 December    |
|                  |                           | 2008                 |
+------------------+---------------------------+----------------------+
| 1. Head office   | United Center Co., Ltd.   | 1 month              |
+------------------+---------------------------+----------------------+
|                  | City Realty Co.,Ltd       | 3 years              |
+------------------+---------------------------+----------------------+
| 2. Chiang Mai    | Pornping Pavilion Co.,    | 2 months             |
|                  | Ltd.                      |                      |
+------------------+---------------------------+----------------------+
| 3. Nakhon        | K.R.Shopping Center       | 11 months            |
| Ratchasima       | Co.,Ltd.                  |                      |
+------------------+---------------------------+----------------------+
| 4. Samut Sakhon  | A.T. Asset Co., Ltd.      | 1 year 6 months      |
+------------------+---------------------------+----------------------+
| 5. Nakhon Sawan  | Individual                | 2 years 8 months     |
+------------------+---------------------------+----------------------+
| 6. Pin Klao      | Central Pattana Co., Ltd. | 1 year 9 months      |
+------------------+---------------------------+----------------------+
| 7. Nakhon Pathom | Individual                | 2 years 6 months     |
+------------------+---------------------------+----------------------+
| 8. Chiang Rai    | Individual                | 11 months            |
+------------------+---------------------------+----------------------+
| 9. Phetchaburi   | Individual                | 2 years 8 months     |
+------------------+---------------------------+----------------------+
| 10. Hat Yai      | Lee Garden Hotel Co.,     | 2 years              |
|                  | Ltd.                      |                      |
+------------------+---------------------------+----------------------+
| 11. Udon Thani   | Individual                | 2 months             |
+------------------+---------------------------+----------------------+
| 12. Changwattana | Na-Nakorn Estate Co.,Ltd. | 6 months             |
+------------------+---------------------------+----------------------+
| 13. Taphra       | Thai Vegetable Oil Plc    | 1 year 4 months      |
+------------------+---------------------------+----------------------+
| 14. Silom Center | Porn Real Estate Co.,Ltd  | 2 years 11 months    |
+------------------+---------------------------+----------------------+

  5.3 Loans for securities trading in credit balance accounts

  As of 31 December 2008, the Company’s loans for securities trading in
  credit balance accounts amounted to Baht 535 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 revenue recognition

  Interest is recognised over the term of the loans based on the amount
  of principal outstanding. No accrual has been made for certain loans
  which, under Notification No. Kor. Thor. 5/2544 dated 15 February 2001
  of the Office of the Securities and Exchange Commission, are not
  qualified for recognition of interest on an accrual basis and
  consideration of other relevant factors.

  (D) 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.

  (E) Policy on control and collection of debts (Legal)

  In the case where there is bad debt from credit balance 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 head of 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.

  (F) 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
  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 December 2008, the Company’s net investments in debt and
  equity securities amounted to Baht 2,768 million, consisting of short
  term investments totaled Baht 1,985 million and long term investments
  totaled Baht 783 million.

(A) Investment policy 

  The Company reviewed its investment policy periodically.

 (B) Risk management of investments

  The Company’s risk management committee followed up and reviewed risk
  of investments (see detail in Scope of duties and responsibilities of
  the risk management committee).

(C) Policy on provision for reduction in investment value

  The Company has policies regarding provision for reduction in
  investment value as follows:

  a) Investments in securities held for trading are presented at fair
  value. Gains or losses arising from changes in the carrying amounts of
  securities are included in income statements.

  b) Investments in available-for-sale securities are determined at fair
  value. Changes in the carrying amounts of securities are recorded as
  separate items in the shareholders’ equity until the securities are
  sold, the changes are then included in income statements.

  c) Investments in debt securities both due within one year or expected
  to be held-to-maturity are stated at amortised cost.

  d) Investments in non-marketable equity securities, which the Company
  classifies as other investments, are valued at cost net of allowance
  for impairment (if any).

  e) Investments in subsidiaries are accounted for in the separate
  financial statements using the cost method.

  The fair value of marketable securities is based on the latest bid
  price of the last working day of the period as quoted on the Stock
  Exchange of Thailand. The fair value of debt instruments is determined
  based on required rate of return or the yield rates quoted by the Thai
  Bond Market Association. The fair value of unit trusts is determined
  from their net asset value.

  Loss on impairment of investments (if any) are included in income
  statements.

  Allowance for loss on the impairment of other investments is based on
  net realisable value with reference to the net book value of ordinary
  share and other relevant factors.

  The weighted average method is used for computation of the cost of
  investments.

5.5 Investment in subsidiary companies

  As of 31 December 2008, the Company’s investment in subsidiary
  companies was Baht 2,623 million. (details as per note of financial
  statements no 9: 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 December 2008, the Company’s intangible assets were Baht 25.7
  million, consisting of deferred derivatives agent license fee Baht 2.4
  million and computer software Baht 23.3 million.