12. Financial Status

12.1 Financial Statements

  (1) A summary of the Independent Auditor’s Reports for the past 3
  years

In 2005, the Independent Auditor certified the Financial Statements
without qualified opinion. However, there

was an emphasis of matters about the negotiation steps taken in
transferring the right to sell the land, factory and machinery not used
by the Company. These steps must be approved by its shareholders. Also,
the delayed approval within the Bank led to a report in the Annual
Financial Statements that there was a delay in debt repayment for a
short time while waiting for the signing of the debt restructuring
agreement and preparation for the transfer at the end of the 3rd
quarter. This transaction was completed early in the following quarter.
The Independent Auditor also made a note about the new business
restructuring by selling all of the Company’s investment capital in the
subsidiary which manufacture and sell electrical appliances in order to
focus on Information Technology business.

In 2006, the Independent Auditor certified the Financial Statements
without qualified opinion.

In 2007, the Independent Auditor certified the Financial Statements
without qualified opinion.  However, there

was an emphasis of matters about the change of company accounting policy
for recording investments in subsidiary in separate financial statements
from the equity method to the cost method.  The company  has thus
restated the separate financial statements as at 31 December 2006 and
for the year then ended to reflect this accounting change.

(2) Summary of the Financial Status and Operating Performance

Following are the tables showing the Balance Sheets, Profit and Loss
Statements and Cash Flow Statements of the Company and its subsidiary
during past 3 years.

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  (3) Financial Ratio

Following are the table showing the Financial Ratio which are the
reflection of the Financial Statement and Operating Performance of the
Company and its subsidiary for past 3 years.

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12.2 Management Discussion and Analysis

(1) Operating Result

In the year 2007, the company and its subsidiary had net profit from
operation in the amount of 18.78 Million Baht come from the gross profit
370.76 Million Baht which come from sales and service income of computer
and software business, other income in the amount of 20.69 Million Baht,
company’s selling and administrative expenses in the amount of 345.12
Million Baht, interest expenses in the amount of 5.91 Million Baht, and
the corporate income tax in the amount of 15.71 Million Baht.

The change of the company’s financial status and performance in the year
2007 by comparison with the year 2006, net profit decreased by 45.85
Million Baht, as a result from the year 2006 the company had profit
incurred from the revenues of remuneration from transfer of right in the
amount of 23.17 Million Baht, gain on sales investment in the amount of
43.39 Million Baht, income from sales and services decreased by 40.90
Million Baht, other income which was the compensation from sale of IT
business decreased by 5.34 Million Baht, selling and administrative
expenses increased by 26.18 Million Baht, interest expense decreased by
3.16 Million Baht and corporate income tax decreased by 9.17 Million
Baht.

(2) Financial Status

The total assets of the company and its subsidiary in the amount of
732.10 Million Baht decreased by 104.59 Million Baht result from cash
and cash equivalents decreased by 65.23 Million Baht, current investment
increase by 7.41 Million Baht, trade receivable decreased by 19.27
Million Baht, mainly to the inventory of computer decreased by 43.03
Million Baht, withholding income tax deducted at source decreased by
10.18 Million Baht, accrued service income decreased by 5.86 Million
Baht, prepaid service cost which the cost was adept in proportion of
service income increased by 20.00 Million Baht, other current assets
increased by 1.52 Million Baht, pledged fixed deposits increased by
10.53 Million Baht from inventory purchased, other long-term investments
decreased by 2.25 Million Baht, net leasehold right and equipment
decreased by 14.45 Million Baht, deposit on shares-related party for
purchase investment in subsidiary increased by 18.10 Million Baht, and
other non-current assets decreased by 1.46 Million Baht.

The total liabilities of the company and its subsidiary in the amount of
535.52 Million Baht decreased by 115.10 Million Baht result from account
payable decreased by 108.77 Million Baht, due to related parties
decreased by 2.51 Million Baht, account payable-factoring company
decreased by 24.03 Million Baht, accrued expense increased by 18.12
Million Baht, deferred service income increased by 33.27 Million Baht,
corporate income tax payable decreased by 14.45 Million Baht, other
current liabilities decreased by 4.85 Million Baht, current portion of
long-term loans and long-term liabilities decreased by 7.24 Million
Baht, current portion of long-term liabilities under rehabilitation plan
decreased by 1.40 Million Baht.

Shareholder’s equity of the company and its subsidiary in the amount of
196.58 Million Baht increased by 10.51 Million Baht result from net
profit of the company and its subsidiary in the amount of 18.78 Million
Baht, Minority interest increased by 5.92 Million Baht, and the paid
dividend for year 2006 in the amount of 14.19 Million Baht.

(3) Major Factors and Influences which may Affect Future Operations or
    Financial Status

-None-

12.3 Audit Fee

  (1) Audit Fee

  The Company and its subsidiary paid audit fee as follows:

-   The Company’s auditor for the year 2007 in an amount 0 Baht

-   Auditor’s firm for the year 2007 in an amount of Baht 950,000

    2.  Non-Audit Fee

  - None -