2.7 Litigation

As of 31 December 2005, there were altogether 10 disputes between the
Company and its customers. Details are as follows.

Table 1: Report of Litigations (categorized by legal procedures)

  ----- ---------------------- ----------- ---------------- --------------------
  No.   Stages                 Number of   Amount (Baht)    Note
                               Litigants                    

  1     Currently at the Court 1           501,963.39       
        of First Instance                                   

  2     Currently at the       2           1,475,939.46     
        Supreme Court                                       

  3     Judgment already       3           305,594.85       Prepared for legal
        delivered (by the                                   execution
        Court of First                                      
        Instance)                                           

  4     At the Bankruptcy      1           118,657,596.09   Case is being
        Court                                               closed.

  5     Business               1           27,117,203.29    Compliance according
        Rehabilitation                                      to the plan

  6     United Securities      1           -3,301,317.00    Case is being
        becomes the defendant                               appealed

  7     Criminal suit (filing  1           0.00             Amount of debt: Baht
        complaint)                                          206,804.04

        Total                  10          144,756,980.08   
  ----- ---------------------- ----------- ---------------- --------------------

Table 2: Report of Litigations (categorized by amount of debt)

  ----- ------------------------------- -------------- --------------------
  No.   Stages/Nature                   Number of      Amount (Baht)
                                        litigants      

  1     More than Baht 52.5 million (5  1              No. 4 of Table 1
        per cent of shareholders’                      
        equity)                                        

  2     Between Baht 10-52.5 million    1              No. 5 of Table 1

  3     Less than Baht 10 million       6              No. 1-3 of Table 1

  4     United Securities is the        1              No. 6 of Table 1
        defendant                                      

  4     Criminal case                   1              No. 7 of Table 1

        Total                           10             
  ----- ------------------------------- -------------- --------------------

Details:

1.  As of 31 December 2005, there was one litigation case, of which the
    value exceeded 5 per cent of shareholders’ equity (meaning a case of
    which the capital amount subject to the litigation exceeds Baht 52.5
    million). Details are as follows:

    1.  Case of Ms Duangporn Oonsiri

The Company filed a lawsuit against Ms Duangporn as a 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.

2.  There was one case involving more than Baht 10 million as capital in
    the lawsuit.

    1.  Sahaviriya City Public Company 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)

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.