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RELATED TRANSACTIONS '6&6''4/+Ę6 5

Related transactions in the year 2010 classified by categories are as follows:

1. An ordinary and usual course of business transaction The Company has transactions with related parties are those linked to the Group and the Company as shareholders or by common shareholders or directors as disclosed in Note to Financial Statement No. 4. Comments of independent directors on these related transactions are the ordinary and usual course of business transaction with normal commercial terms. The related transactions created the benefits to the Company.

2. An asset or service transaction The Company has transactions with related parties are those linked to the Group and the Company as shareholders or by common shareholders or directors as disclosed in Note to Financial Statement No. 4. Comments of independent directors on these related transactions are the ordinary and usual course of business transaction with normal commercial terms. The related transactions created the benefits to the Company.

3. A financial support transaction The Company has transactions with related parties are those linked to the Group and the Company as shareholders or by common shareholders or directors as disclosed in Note to Financial Statement No. 4. and 13. Comments of independent directors on these related transactions are the ordinary and usual course of business transaction with normal commercial terms. The related transactions created the benefits to the Company.

Reason(s) for making related transaction(s) Transactions with the subsidiaries were created for the company’s benefit so that the company can successfully achieve its business strategies and objectives. In case of lending/borrowing between parent company and subsidiary, the interest rate is an agreed rate based on market rate at the time of lending/borrowing. The transactions with the other related parties were the ordinary and usual course of business transaction with normal commercial terms.

Policy and Trend of Related Transaction(s) The related transaction with our subsidiary, at least own 51% by the company, are made as part of normal business operations. Therefore, it is likely that such transactions will occur in the future on the continual basis. However, the company will obey the security law, rules & regulations of the Stock Exchange of Thailand and the Federation of Accounting Professions (“FAP”) and with generally accepted accounting principles in Thailand. Moreover, the company will consider the reasonable reason of the transactions. If the company makes related transaction with any person with possibility of creating any conflict of interest, the company will consult with the Audit Committee who will review and comment the necessity and suitability of that related transaction(s). In case that the Audit Committee does not have expertise in any specific area, the company will arrange to hire an expert or company’s auditor to provide comments to the Audit Committee or shareholders for approving the transaction(s). The company also discloses the related transaction(s) in the Notes to Financial Statement as part of the Audited Financial Statements.

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AREEYA AWARD WINNING ANNUAL CHIC REPORT 2010

A 10  
A 10  

A_2010 AREEYA PROPERTY PCL Annual Report 2010

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