8. Capital Structure

1.  Shareholders’ Equity

(Unit : Baht)

+----------------------------------+--------+---+---------+---+-----------+
|                                  | 2007   |   | 2006    |   | 2005      |
+----------------------------------+--------+---+---------+---+-----------+
| Registered share capital :       | 328,   |   | 348,128 |   | 348,1     |
|                                  | 345,09 |   | ,690.00 |   | 28,690.00 |
|                                  | 0.00** |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| Par value                        | 1.00   |   | 1.00    |   | 1.00      |
+----------------------------------+--------+---+---------+---+-----------+
| Paid-up share capital :          |        |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| paid-up share capital at the     | 33     |   | 322,135 |   | 314,1     |
| beginning of the period          | 2,894, |   | ,910.00 |   | 52,170.00 |
|                                  | 970.00 |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| shares purchase by exercising    | 1      |   | 8,229   |   | 2,7       |
| warrants of director             | 0,653, |   | ,450.00 |   | 72,240.00 |
|                                  | 960.00 |   |         |   |           |
| and employees                    |        |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| shares purchase by exercising    | -      |   | 2,529   |   | 5,2       |
| warrants of                      |        |   | ,610.00 |   | 11,500.00 |
|                                  |        |   |         |   |           |
| shareholders                     |        |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| write-off treasury shares        | (19    |   | -       |   | -         |
|                                  | ,783,6 |   |         |   |           |
|                                  | 00.00) |   |         |   |           |
|                                  | **     |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| paid-up share capital at the end | 32     |   | 332,894 |   | 322,1     |
| of the period                    | 3,765, |   | ,970.00 |   | 35,910.00 |
|                                  | 330.00 |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| Premiums on share capital :      |        |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| premiums on share capital at the | 14     |   | 147,776 |   | 144,3     |
| beginning of the                 | 9,420, |   | ,311.25 |   | 88,836.25 |
|                                  | 557.75 |   |         |   |           |
| period                           |        |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| shares purchase by exercising    | -      |   | 1,644   |   | 3,3       |
| warrants of                      |        |   | ,246.50 |   | 87,475.00 |
|                                  |        |   |         |   |           |
| shareholders                     |        |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| premiums on share capital at the | 14     |   | 149,420 |   | 147,7     |
| end of the period                | 9,420, |   | ,557.75 |   | 76,311.25 |
|                                  | 557.75 |   |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| Warrant :                        |        | w |         | w |           |
|                                  |        | a |         | a |           |
|                                  |        | r |         | r |           |
|                                  |        | r |         | r |           |
|                                  |        | a |         | a |           |
|                                  |        | n |         | n |           |
|                                  |        | t |         | t |           |
|                                  |        | s |         | s |           |
|                                  |        | o |         | o |           |
|                                  |        | f |         | f |           |
|                                  |        | d |         | s |           |
|                                  |        | i |         | h |           |
|                                  |        | r |         | a |           |
|                                  |        | e |         | r |           |
|                                  |        | c |         | e |           |
|                                  |        | t |         | h |           |
|                                  |        | o |         | o |           |
|                                  |        | r |         | l |           |
|                                  |        | a |         | d |           |
|                                  |        | n |         | e |           |
|                                  |        | d |         | r |           |
|                                  |        | e |         | s |           |
|                                  |        | m |         |   |           |
|                                  |        | p |         |   |           |
|                                  |        | l |         |   |           |
|                                  |        | o |         |   |           |
|                                  |        | y |         |   |           |
|                                  |        | e |         |   |           |
|                                  |        | e |         |   |           |
|                                  |        | s |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| Issued warrant (Units)           |        | 3 |         | 1 |           |
|                                  |        | 1 |         | 0 |           |
|                                  |        | , |         | 5 |           |
|                                  |        | 6 |         | , |           |
|                                  |        | 4 |         | 4 |           |
|                                  |        | 8 |         | 9 |           |
|                                  |        | , |         | 3 |           |
|                                  |        | 0 |         | , |           |
|                                  |        | 0 |         | 4 |           |
|                                  |        | 0 |         | 3 |           |
|                                  |        |   |         | 0 |           |
+----------------------------------+--------+---+---------+---+-----------+
| Numbering of warrant was         |        | ( |         | ( |           |
| exercised for year 2003 (unit)   |        | 2 |         | 4 |           |
|                                  |        | , |         | 1 |           |
|                                  |        | 8 |         | , |           |
|                                  |        | 7 |         | 2 |           |
|                                  |        | 3 |         | 1 |           |
|                                  |        | , |         | 0 |           |
|                                  |        | 1 |         | , |           |
|                                  |        | 9 |         | 6 |           |
|                                  |        | 0 |         | 8 |           |
|                                  |        | ) |         | 0 |           |
|                                  |        |   |         | ) |           |
+----------------------------------+--------+---+---------+---+-----------+
| Numbering of warrant was         |        | ( |         | ( |           |
| exercised for year 2004 (unit)   |        | 2 |         | 5 |           |
|                                  |        | , |         | 6 |           |
|                                  |        | 8 |         | , |           |
|                                  |        | 3 |         | 2 |           |
|                                  |        | 6 |         | 4 |           |
|                                  |        | , |         | 4 |           |
|                                  |        | 4 |         | , |           |
|                                  |        | 1 |         | 7 |           |
|                                  |        | 0 |         | 6 |           |
|                                  |        | ) |         | 0 |           |
|                                  |        |   |         | ) |           |
+----------------------------------+--------+---+---------+---+-----------+
| Numbering of warrant was         |        | ( |         | ( |           |
| exercised for year 2005 (unit)   |        | 2 |         | 5 |           |
|                                  |        | , |         | , |           |
|                                  |        | 7 |         | 2 |           |
|                                  |        | 7 |         | 1 |           |
|                                  |        | 2 |         | 1 |           |
|                                  |        | , |         | , |           |
|                                  |        | 2 |         | 5 |           |
|                                  |        | 4 |         | 0 |           |
|                                  |        | 0 |         | 0 |           |
|                                  |        | ) |         | ) |           |
+----------------------------------+--------+---+---------+---+-----------+
| Numbering of warrant was         |        | ( |         | ( |           |
| exercised for year 2006 (unit)   |        | 8 |         | 2 |           |
|                                  |        | , |         | , |           |
|                                  |        | 2 |         | 5 |           |
|                                  |        | 2 |         | 2 |           |
|                                  |        | 9 |         | 9 |           |
|                                  |        | , |         | , |           |
|                                  |        | 4 |         | 6 |           |
|                                  |        | 5 |         | 1 |           |
|                                  |        | 0 |         | 0 |           |
|                                  |        | ) |         | ) |           |
+----------------------------------+--------+---+---------+---+-----------+
| Numbering of warrant was         |        | ( |         | - |           |
| exercised for year 2007 (unit)   |        | 1 |         |   |           |
|                                  |        | 0 |         |   |           |
|                                  |        | , |         |   |           |
|                                  |        | 6 |         |   |           |
|                                  |        | 5 |         |   |           |
|                                  |        | 3 |         |   |           |
|                                  |        | , |         |   |           |
|                                  |        | 9 |         |   |           |
|                                  |        | 6 |         |   |           |
|                                  |        | 0 |         |   |           |
|                                  |        | ) |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+
| Outstanding warrant as of        |        | 4 |         | 2 |           |
| December 31, 2007 (unit)         |        | , |         | 9 |           |
|                                  |        | 2 |         | 6 |           |
|                                  |        | 8 |         | , |           |
|                                  |        | 2 |         | 8 |           |
|                                  |        | , |         | 8 |           |
|                                  |        | 7 |         | 0 |           |
|                                  |        | 5 |         |   |           |
|                                  |        | 0 |         |   |           |
+----------------------------------+--------+---+---------+---+-----------+

In accordance with the minutes of shareholders’ general meeting
No.1/2003 held on April 23, 2003, the shareholders have approved a
change in the par value of share (stock splitting) from BHT 10 to 1 per
share. On May 22, 2003, the Company registered the approved change of
its share capital with the Ministry of Commerce.

On April 30, 2001, the general meeting of shareholders 1/2001, the
Company approved the split of the Company’s shares. As a result, the
warrants for existing shareholders and for directors, employees and the
security sub-agent were split into 105,493,430 units and 31,648,000
units respectively, and the exercised price of the warrants for existing
shareholders to be changed from BHT 16.50 per share to BHT 1.65 per
share, whereby the rights to covert the warrant for previous
shareholders have been expired on December 15, 2006, and the warrants
for directors, employees and the security sub-agent to be changed BHT 10
per share to BHT 1 per share.

In 2007 the Company has allowed the directors and employees to exercise
their rights to purchase ordinary shares 4 times on January 15, April
17, July 16 and October 15, 2007, in total of 10,653,960 units. The
right to purchase the shares can be exercised is available every 3
months until to 6 years and the last date to exercise the right will be
on January 14, 2008. The remaining unexercised warrants are 4,282,750
units, where majority of shares are unallocated warrant of 4,090,410
units.

**The Board of directors' meeting No.1/2004 held on February 24, 2004
has agreed to repurchase shares for the financial management reason, as
the Company had excess liquidity of 19,783,600 shares (valued at 122.64
million baht, with average of repurchase value of 6.20 baht/share),
which according to the ministerial regulation concerning "Criteria and
method of repurchase of treasury stock; the reselling of repurchase
shares and writing-off shares of a company" has stipulated that the
Company has to dispose of all of its repurchased shares within 3 years
from the date of completing the repurchase of shares, which is dated on
September 11, 2007, but the Company could not dispose any of the said
shares, as agreed in the resolution of Board of Directors meeting. To
comply with the above regulation, the Company, under the Board of
Directors meeting No. 4/2007 held on September 19, 2007, thus passed
resolutions to write off the Company’s treasury shares of 19.78 million
shares, resulting in the remaining paid-up capital of 328.35 million
shares. The Company has reduced it registered paid-up capital on October
24, 2007.

Number of shares and shareholders voting rights affected by NVDR
issuance An NVDR or Non-Voting Depository Receipt is a trading
instrument issued by the Thai NVDR Company Limited, a subsidiary -
wholly owned by the stock Exchange of Thailand (SET). NVDRs is
automatically regarded as listed securities in the SET. The objective of
issuing NVDRs is not only to stimulate trading activities in the Thai
stock market, but also to help eliminate foreign investment barriers,
such as the foreign investment limits and the impediments faced by
institutional investors who previously could not trade in the existing
Thai Trust Fund. Investors will receive all financial benefits; e.g.,
dividends, right issues or warrants, just as they had invested in the
Company’s common shares. The only difference between investing in NVDR
and the Company’s shares is the voting right. Additionally, although the
NVDR is designed mainly to ease foreign investment barriers, the SET
does not prohibit Thai investors from investing using this instrument.

As reported on the SET website as of November 28, 2007, the Company’s
common shares of NVDRs issued and outstanding is amounted to 13,310,350
shares or 4.11 % of total registered paid-up shares of 323,765,330
shares. The NVDR holders will not be permitted to participate and vote
in shareholders’ meeting, except in the case of exercising their rights
to vote for withdrawal of shares of any listed company from the SET.

8.2 Shareholder Information

(a) Major Shareholders List of the first 10 major Shareholders according
to article 258, Stock and Stock Exchange Act B.A. 2535, as of November
28, 2007. (latest share register closed date)

+-----+-----------------------------------+-------------+-------------+
| No. | Shareholders                      | Number of   | Percentage  |
|     |                                   | Shares      | of          |
|     |                                   |             |             |
|     |                                   |             | Paid-up     |
|     |                                   |             | Capital     |
+-----+-----------------------------------+-------------+-------------+
| 1   | GMM Grammy Public Company Limited | 42,422,200  | 13.10       |
+-----+-----------------------------------+-------------+-------------+
| 2   | HSBC (SINGAPORE) NOMINEES PTE     | 40,500,000  | 12.51       |
|     | LTD.                              |             |             |
+-----+-----------------------------------+-------------+-------------+
| 3   | Mr. Rit Thirakomen                | 23,008,782  | 7.11        |
+-----+-----------------------------------+-------------+-------------+
| 4   | Mr. Thanong Chotisorayuth         | 14,849,742  | 4.59        |
+-----+-----------------------------------+-------------+-------------+
| 5   | Thai NVDR Company Limited*        | 13,310,350  | 4.11        |
+-----+-----------------------------------+-------------+-------------+
| 6   | Asst. Prof. Yuen Poovarawan       | 13,174,940  | 4.07        |
+-----+-----------------------------------+-------------+-------------+
| 7   | RAFFLES NOMINEES PTE LTD.         | 11,000,000  | 3.40        |
+-----+-----------------------------------+-------------+-------------+
| 8   | Mr. Pongsak Sivapatrakumpol       | 10,850,842  | 3.35        |
+-----+-----------------------------------+-------------+-------------+
| 9   | Bangkok Assurance Public Company  | 10,290,000  | 3.18        |
|     | Limited                           |             |             |
+-----+-----------------------------------+-------------+-------------+
| 10  | Mr. Phairat Sittakul              | 6,405,166   | 1.98        |
+-----+-----------------------------------+-------------+-------------+
| To  |                                   | 185,812,022 | 57.40       |
| tal |                                   |             |             |
+-----+-----------------------------------+-------------+-------------+

Remark The issued and paid–up capital, as of November 28, 2007, is equal
to 323,765,330 Baht.

  Investors can view the current Shareholder’s information from the
  Company’s website before the date of the annual Shareholder’s meeting.

  *Thai NDVR Ltd. has the shares as follows:

  --------------------------------------------- --------------------------------------------- ------------ ----------
  No.                                           Shareholders                                  Number of    % of
                                                                                              Shares       capital

  1                                             GOLDMAN SACHS INTERNATIONAL                   6,510,500    49

  2                                             MORGAN STANLEY & CO. INTERNATIONAL PLC        4,500,000    34

  3                                             DBS VICKERS SECURITIES (SINGAPORE) PTE LTD    700,000      5

  4                                             MR. KUCKENBECKER, FRED JAMES                  482,000      4

  5                                             KIM ENG SECURITIES PTE. LTD.                  263,000      2

  6                                             NOMURA SINGAPORE LIMITED-CUSTOMER SEGREGATED  132,900      1
                                                ACCOUNT                                                    

  7                                             HSBC PRIVATE BANK (SUISSE) SA                 120,000      1

  8                                             PHILLIP SECURITIES PTE. LTD.                  91,000       1

  9                                             MINORITY SHAREHOLDERS                         510,950      3

  Total                                                                                       13,310,350   100

  Remark : The source data from                                                                            
  http://www.set.or.th/set/nvdr/nvdrholder.do                                                              
  --------------------------------------------- --------------------------------------------- ------------ ----------

As of the share register book closed date, There were 2,059 Thai
national Shareholders total 262,790,660 shares (81.17%) which consists
of 26 juristic persons and 2,033 persons, the foreigners Shareholder
amounted of 22 persons total 60,974,670 shares (18.83%) which consists
of 11 juristic persons and 11 general persons.

(b) Names of main Shareholders who practically have material influence
in prescribing the management policy or the Company operation is GMM
Grammy Public Company Limited.

(c) The actual share holder of HSBC (Singapore) Nominees PTE LTD. is Mr.
Edward Phillip Burke, a British citizen.

8.3 Dividend Payment Policy

The Company declared a policy since financial year 1991 to pay dividend
no less than 50% of the net profit after the deduction of corporate
income tax which the equity method. The payment will be made in the
annual general meeting of the year immediately following the operating
year.

The dividend payments for lasted 3 years are as follow:

+----------------------+----------+-----------+----------+------------+
| Dividend payment     | Dividend | Dividend  | Net      | Dividend   |
| from                 | payment  |           | profit   | payout     |
|                      | date     | Per share |          | ratio      |
| operations results   |          | (Baht)    | (        |            |
|                      |          |           | Thousand |            |
|                      |          |           | Baht)    |            |
+----------------------+----------+-----------+----------+------------+
| Year 2007 :          |          |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 1            | 8        | 0.10      | 32,691   | 98.99      |
|                      | /06/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 2            | 6        | 0.10      | 36,178   | 89.48      |
|                      | /09/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 3            | 11       | 0.10      | 60,387   | 53.61      |
|                      | /12/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 4            | 23       | 0.26*     | 54,544   | 154.41     |
|                      | /05/2008 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Total for 2007       |          | 0.56      | 183,800  | 98.65      |
+----------------------+----------+-----------+----------+------------+
| Year 2006 :          |          |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 1            | 9        | 0.10      | 33,363   | 93.32      |
|                      | /06/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 2            | 11       | 0.10      | 49,668   | 62.75      |
|                      | /09/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 3            | 08       | 0.10      | 58,728   | 53.10      |
|                      | /12/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 4            | 23       | 0.30      | 67,432   | 152.39     |
|                      | /05/2007 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Total for 2006       |          | 0.60      | 209,191  | 93.81      |
+----------------------+----------+-----------+----------+------------+
| Year 2005 :          |          |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 1            | 10       | 0.10      | 34,175   | 87.83      |
|                      | /06/2005 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 2            | 09       | 0.10      | 47,761   | 63.11      |
|                      | /09/2005 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 3            | 09       | 0.10      | 40,237   | 74.95      |
|                      | /12/2005 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Quarter 4            | 25       | 0.29      | 65,741   | 145.92     |
|                      | /05/2006 |           |          |            |
+----------------------+----------+-----------+----------+------------+
| Total for 2005       |          | 0.59      | 187,914  | 99.11      |
+----------------------+----------+-----------+----------+------------+
| Note : Rate of       |          |           |          |            |
| dividend per share   |          |           |          |            |
| is proposed by the   |          |           |          |            |
| board of directors,  |          |           |          |            |
| whereby such rate    |          |           |          |            |
| will be decided at   |          |           |          |            |
| the board meeting on |          |           |          |            |
| April 29, 2008, and  |          |           |          |            |
| the rate is          |          |           |          |            |
| calculated from      |          |           |          |            |
| common shares stated |          |           |          |            |
| on January 22, 2008. |          |           |          |            |
+----------------------+----------+-----------+----------+------------+