12. Financial Status

12.1 Financial Statements

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

In 2004, the Independent Auditor certified the Financial Statements
without any conditions. However, there was a note that the total loss of
the Company and its subsidiary was higher than the capital and the
current liabilities were higher than the current assets. This showed
that there was uncertainty about the ability of the Company to make
enough profit from operations in the future, and the ability to pay the
outstanding debt from the debt restructuring of the Company and its
subsidiary.

In 2005, the Independent Auditor certified the Financial Statements
without any conditions. However, there was a note 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 any conditions.

(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 2006, the company and its subsidiaries had net profit from
operation in the amount of 64.63 Million Baht, the gross profit 330.05
Million Baht, which come from sales and service income of computer and
software business, remuneration from transfer of rights 23.17 Million
Baht, profit from selling investment in the amount of 43.39 Million
Baht, other income of 26.03 Million Baht, the company’s selling and
administrative expenses in the amount of 318.95 Million Baht, interest
expenses of 9.08 Million Baht and corporate income tax in the amount of
24.88 Million Baht.

The change of the Company’s financial status and performance in the year
2006 by comparison with the year 2005, net profit decreased by 46.90
Million Baht, as a result from the year 2005 the Company had profit
incurred from transfer of asset for settlement of debt under the
rehabilitation plan in the amount of 145.53 Million Baht, income from
sales and service increased by 117.06 Million Baht. In 2006 The Company
has information technology income in the amount of 1,440.08 Million
Baht, increased from last year by 258.95 Million Baht meanwhile in the
year 2005 total revenues were included sales of electrical appliance
business amount of 141.89 Million Baht, which is sold in last year from
restructuring business, remuneration from transfer of rights 23.17
Million Baht, and profit from selling investment in the amount of 43.39
Million Baht. Other income increased by 9.77 Million Baht due to rebate
income of information technology business. The selling and
administrative expenses decreased by 13.77 Million Baht, resulted from
restructuring business in the year 2005, interest expenses decreased by
0.37 Million Baht and corporate income tax increased by 21.54 Million
Baht.

(2) Financial Status

The total assets of the company and its subsidiaries in the amount of
836.69 Million Baht increased by 294.14 Million Baht, due cash and cash
equivalents increased by 49.21 Million Baht, trade receivable increased
by 140.88 Million Baht, mainly to the inventory of computer and
LCD&Visualizer increased by 78.45 Million Baht, deferred service income
increased by 2.23 Million Baht, prepaid service cost increased by 9.84
Million Baht, other current assets increased by 2.32 Million Bath,
restricted fixed deposit with bank increased by 1.24 Million Baht,
computer software presented as part of net lease rights and equipments
increased by 19.34 Million Baht, withholding tax decreased by 6.03
Million Baht, , and other long-term investment decreased by 3.00 Million
Baht.

The total liabilities of the company and its subsidiaries in the amount
of 650.62 Million Baht increased by 222.33 Million Baht, resulted from
account payable increased by 179.55 Million Baht, due to related parties
increased by 2.37 Million Baht, factoring payable account increased by
12.78 Million Baht, while trust receipt account decreased by 55.25
Million Baht, accrued expenses increased by 20.65 Million Baht, deferred
service income increased by 16.08 Million Baht, corporate income tax
increased by 14.45 Million Baht, other current liabilities increased by
6.09 Million Baht, long-term loans and current portion of finance lease
payable increased by 15.48 Million Baht, current portion of long term
liabilities under rehabilitation plan decreased by 5.25 Million Baht and
other non-current liabilities increased by 15.38 Million Baht from long
term liabilities increased by 22.30 Million Baht, long term loan
decreased by 2.75 Million Baht and long term liabilities under
rehabilitation plan decreased by 4.18 Million Baht.

Shareholder’s equity of the company and its subsidiaries in the amount
of 186.07 Million Baht increased by 71.81 Million Baht, net profit of
the company and its subsidiaries in the amount of 64.43 Million Baht.
Minority interests increased by 5.11 Million Baht and the adjustment of
shareholders by decrease the registered capital in the amount of
141,944,471 shares from the par value of share from 10 Baht to 1 Baht
per share for setting up the deficit in par value and the retained loss.

(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 2006 in an amount 0 Baht

-   Auditor’s firm for the year 2006 in an amount of Baht 830,000

    2.  Non-Audit Fee

  - None -