2.7 Litigation

The significant litigation cases which are still in process between the
Company and its customers as of 31 December 2006 are reported as follows
:

+----------------------------------+-----------------------------------+
| Litigation Category / No. of     | Descriptions / Stage              |
| Litigant                         |                                   |
+----------------------------------+-----------------------------------+
| 1. More than 5 per cent of       | Mrs.Duangporn Oonsiri             |
| shareholders’ equity as of 31    |                                   |
| December, 2006 ( means the case  | The Company filed a lawsuit       |
| with capital amount exceeds 52   | against Mrs. Duangporn as a       |
| million baht) / 1 case           | bankruptcy case to the Central    |
|                                  | Bankruptcy Court in Black Docket  |
|                                  | Case Number 157/2544 on 5 March   |
|                                  | 2001. The debt in question was a  |
|                                  | loan she had borrowed to buy the  |
|                                  | stocks. The total claim amount    |
|                                  | including the interest was Baht   |
|                                  | 118,657,596.09. On 11 January     |
|                                  | 2002, the Court declared the      |
|                                  | client bankrupt in Red Docket     |
|                                  | Case No. 390/2544.                |
|                                  |                                   |
|                                  | At present, the case is being     |
|                                  | closed since the Official         |
|                                  | Receiver has asked the Court to   |
|                                  | issue an order to temporarily     |
|                                  | close the case.                   |
+----------------------------------+-----------------------------------+
| 1.  More than 10 million baht /  | Sahaviriya City Public Company    |
|     1 case                       | Limited                           |
|                                  |                                   |
|                                  | On 3 December 2001, the Company   |
|                                  | applied for debt repayment in its |
|                                  | debt-restructuring case under Red |
|                                  | Docket Case No. 992/2544 to which |
|                                  | the Court had issued an order to  |
|                                  | rehabilitate the business on 26   |
|                                  | October 2001. The case involved   |
|                                  | debts incurred from debentures    |
|                                  | worth Baht 27,117,203.29 (divided |
|                                  | into a principal of Baht 18       |
|                                  | million and interest up to the    |
|                                  | day the Court issued a            |
|                                  | rehabilitation order worth Bath   |
|                                  | 9,117.203.29). On 30 August 2002, |
|                                  | the Court approved the            |
|                                  | rehabilitation plan and appointed |
|                                  | Churchill Prize Planner Co Ltd as |
|                                  | the plan administrator.           |
|                                  |                                   |
|                                  | At present, the Debtor is         |
|                                  | pursuing Stage 2 of the plan,     |
|                                  | which consists of altogether six  |
|                                  | stages. The Company will receive  |
|                                  | newly-issued shares under the     |
|                                  | plan in Stage 5 (capital increase |
|                                  | by securitization)                |
+----------------------------------+-----------------------------------+
| 2.  United Securities becomes    | Mr. Supachai Chitvisuthipong      |
|     the defendant / 1 case       |                                   |
|                                  | Mr. Supachai filed a complain     |
|                                  | against the Company at the Civil  |
|                                  | Court on 17 September, 2001 as    |
|                                  | 2^(nd) defendant for being        |
|                                  | accountable for its employee who  |
|                                  | had transferred the customer’s    |
|                                  | shares to other person without    |
|                                  | consent. The capital amount is    |
|                                  | 3,301,317 baht.                   |
|                                  |                                   |
|                                  | At present, the case is being     |
|                                  | Appealed.                         |
+----------------------------------+-----------------------------------+

Executive’s Comment:

The Company’s executives are of the opinion that these litigations will
have no effect to the Company since it has already set aside a full
amount of reserves for possible loan loss for all of these cases.