31. GUARANTEES As at October 31, 2010 and 2009, the Company and a subsidiary have bank letters of guarantee as required by the contracts with customers amounting to approximately Baht 343.51 million and Baht 33.99 million, respectively. 32. CORPORATE TAX According to the Royal Decree No. 475 B.E. 2551 issued under the Revenue Code regarding the corporate income tax rate deduction effective on August 7, 2008, the corporate income tax for companies listed on the Market for Alternative Investment has been reduced from 30% to 20% of net profit which does not exceed Baht 20 million for three consecutive accounting periods beginning on or after January 1, 2008. Therefore, the Company has used a tax rate of 20% for the corporate income tax calculations for the years ended October 31, 2010 and 2009 to conform to such tax rate change. 33. SIGNIFICANT AGREEMENT 33.1 On August 25, 2004, the Company entered into a Joint Venture Agreement with Ekca Thai Co., Ltd. and Bewcon Co., Ltd. The objective of which is to construct building and design exhibition. The investment portion of Ekca Thai Co., Ltd., Pico (Thailand) Public Company Limited and Bewcon Co., Ltd. is 4 : 4 : 2. The operating income or loss from the Joint Venture will be transferred to each party at such portion. 33.2 As at October 31, 2009, the Joint Venture of Ekca Thai Co., Ltd., Pico (Thailand) Pcl. and Bewcon Co., Ltd. has pledged a letter of guarantee issued by a bank of Baht 3.69 million for performance guarantee and another letter of guarantee of Baht 24.6 million for cash advance received from customer. Such letters are secured by a transfer of the right to receive money on contract work to the bank. Subsequently, in April 2010, the Joint Venture has received both of letter of guarantees from the customer. On July 31, 2010, the Company entered into memorandum for liquidation of the Joint Venture of Ekca Thai Co., Ltd, Pico (Thailand) Pcl. and Bewcon Co., Ltd. Subsequently, on August 16, 2010, the Joint Venture has filed for liquidation with Revenue Department. 33.3 On February 12, 2010, the Company entered into a subcontract agreement to operate Teacher TV system development project with the Burapha University (the Contractor). The Company agreed to subcontract part of work from the Contractor under the Teacher TV system development project with scope of contracted work and work to be delivered in 2010-2012 according to such agreement. The Company has placed letters of guarantee issued by a local bank for performance guarantee and guarantee for cash received in advance totaling Baht 177.92 million. Such bank letters of guarantee are secured by cash at bank amounting to Baht 26.69 million used as collateral.
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