7. Capital Structure

  7.1 The Security of the Company and its Subsidiaries

  The Company’s Security

(Unit : Baht)

+----------------------------------+-----------+-----------+----------+
|                                  | 2011      | 2010      | 2009     |
+----------------------------------+-----------+-----------+----------+
| Registered share capital :       | 323,9     | 328,3     | 328,34   |
|                                  | 21,130.00 | 45,090.00 | 5,090.00 |
+----------------------------------+-----------+-----------+----------+
| Par value                        | 1.00      | 1.00      | 1.00     |
+----------------------------------+-----------+-----------+----------+
| Paid-up share capital :          |           |           |          |
+----------------------------------+-----------+-----------+----------+
| paid-up share capital at the     | 323,9     | 323,9     | 323,92   |
| beginning of the period          | 21,130.00 | 21,130.00 | 1,130.00 |
+----------------------------------+-----------+-----------+----------+
| shares purchase by exercising    | -         | -         | -        |
| warrants of director             |           |           |          |
|                                  |           |           |          |
| and employees                    |           |           |          |
+----------------------------------+-----------+-----------+----------+
| paid-up share capital at the end | 323,9     | 323,9     | 323,92   |
| of the period                    | 21,130.00 | 21,130.00 | 1,130.00 |
+----------------------------------+-----------+-----------+----------+
| Premiums on share capital :      |           |           |          |
+----------------------------------+-----------+-----------+----------+
| premiums on share capital at the | 149,4     | 149,4     | 149,42   |
| beginning of                     | 20,557.75 | 20,557.75 | 0,557.75 |
|                                  |           |           |          |
| the period                       |           |           |          |
+----------------------------------+-----------+-----------+----------+
| premiums on share capital at the | 149,4     | 149,4     | 149,42   |
| end of the period                | 20,557.75 | 20,557.75 | 0,557.75 |
+----------------------------------+-----------+-----------+----------+

The Subsidiary’s Security - Plearn Patt Co., Ltd.

Unit : Million Baht

+----------+--------+--------+--------+--------+--------+---------+
| Detail   | 2011   |        | 2010   |        | 2009   |         |
+----------+--------+--------+--------+--------+--------+---------+
|          | Plearn | SE-ED  | Plearn | SE-ED  | Plearn | SE-ED   |
|          | Patt   | Book   | Patt   | Book   | Patt   | Book    |
|          |        | Center |        | Center |        | Center  |
|          | Co.,   | Co.,   | Co.,   | Co.,   | Co.,   | Co.,    |
|          | Ltd.   | Ltd.   | Ltd.   | Ltd.   | Ltd.   | Ltd.    |
+----------+--------+--------+--------+--------+--------+---------+
| Au       | 170    | 0.10   | 170    | 0.10   | 170    | 0.10    |
| thorized |        |        |        |        |        |         |
|          |        |        |        |        |        |         |
| Share    |        |        |        |        |        |         |
| capital  |        |        |        |        |        |         |
+----------+--------+--------+--------+--------+--------+---------+
| Book     | 10     | 10     | 10     | 10     | 10     | 10      |
| value    |        |        |        |        |        |         |
| (Baht)   |        |        |        |        |        |         |
+----------+--------+--------+--------+--------+--------+---------+
| Issued   | 170    | 0.10   | 170    | 0.10   | 170    | 0.10    |
| and      |        |        |        |        |        |         |
| paid-up  |        |        |        |        |        |         |
| share    |        |        |        |        |        |         |
| capital  |        |        |        |        |        |         |
+----------+--------+--------+--------+--------+--------+---------+

7.2 Major Shareholders

(a) The List of the top 10 shareholders, according to article 258,
Securities Exchange Commission Act (B.E. 2535), as of November 28, 2011
(latest share register closed date) are as follows :

+-------+----------------------------------------+----------+---------+
| No.   | Shareholders                           | Number   | % of    |
|       |                                        | of       |         |
|       |                                        | Shares   | Paid-up |
|       |                                        |          | Capital |
+-------+----------------------------------------+----------+---------+
| 1     | GMM Grammy Public Company Limited      | 42       | 13.10   |
|       |                                        | ,422,200 |         |
+-------+----------------------------------------+----------+---------+
| 2     | Mr. Rit Thirakomen                     | 23       | 7.10    |
|       |                                        | ,008,782 |         |
+-------+----------------------------------------+----------+---------+
| 3     | Krungsri Dividend Stock LTF            | 18       | 5.60    |
|       |                                        | ,151,900 |         |
+-------+----------------------------------------+----------+---------+
| 4     | Best Fortune Property and Loan Fund    | 13       | 4.19    |
|       |                                        | ,583,200 |         |
+-------+----------------------------------------+----------+---------+
| 5     | Assoc. Prof. Yuen Poovarawan           | 13       | 4.07    |
|       |                                        | ,174,940 |         |
+-------+----------------------------------------+----------+---------+
| 6     | Mr. Pongsak Sivapatrakumpol            | 10       | 3.35    |
|       |                                        | ,850,842 |         |
+-------+----------------------------------------+----------+---------+
| 7     | Mr. Thanong Chotisorayuth              | 9        | 3.04    |
|       |                                        | ,849,742 |         |
+-------+----------------------------------------+----------+---------+
| 8     | THAI NVDR CO., LTD                     | 7        | 2.26    |
|       |                                        | ,319,950 |         |
+-------+----------------------------------------+----------+---------+
| 9     | Mr. Song Sukdhanon                     | 5        | 1.73    |
|       |                                        | ,596,500 |         |
+-------+----------------------------------------+----------+---------+
| 10    | Mr. Tatchai Chotisorayuth              | 5        | 1.70    |
|       |                                        | ,520,000 |         |
+-------+----------------------------------------+----------+---------+
| Total |                                        | 149      | 46.15   |
|       |                                        | ,478,056 |         |
+-------+----------------------------------------+----------+---------+

Remark - The issued and paid–up capital, as of November 28, 2011, is
equal to THB 323,921,130 Baht.

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

Company’s ordinary shareholders (SE-ED) held by Thai NVDR co., ltd. of
4,039,800 shares or 1.25% of the paid up capital as of November 28,
2011. The details are as follows.

  -------- ----------------------------------------- ---------------------
  No.      Shareholders                              Number of Shares

  1        CHASE NOMINEES LIMITED                    4,039,800
  -------- ----------------------------------------- ---------------------

Remarks :
http://www.set.or.th/set/nvdr/nvdrholder.do?symbol=SE-ED&language=th&country=US

  Distribution of Shares

Distribution of shareholding as on November 28, 2011 (Book closing date
of the last registration).

  -------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------
  Item           Share                                                                   Total                  
                 Distribution                                                                                   

                 Individual                           Juristic                                                  
                                                      individual                                                

                 Number         Shares        %       Number       Shares        %       Number   Shares        %

  Thai           3,886          218,383,905   67.42   35           102,333,255   31.59   3,921    320,717,160   99.01
  shareholders                                                                                                  

  Foreign        8              162,470       0.05    6            3,041,500     0.94    14       3,203,970     0.99
  shareholders                                                                                                  

  Total          3,894          218,546,375   67.47   41           105,374,755   32.53   3,935    323,921,130   100.00
  -------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------

At the last registration date, there were 3,921 Thai national
shareholders totaling 320,717,160 shares (99.01%) which consist of 35
juristic persons and 3,886 individual shareholders, 14 foreign
shareholders, totaling 3,203,970 shares (0.99%), which consisted of 6
juristic persons and 8 individual shareholders.

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

7.3 Dividend Payment Policy

  Dividend Payment Policy of the Company

The Company declared a policy to pay dividend no less than 50% of the
net profit after the deduction of the corporate income tax based on the
separate financial statements by proposing that the dividends be paid on
an annual basis the year following the Annual General Shareholders’
Meeting, except the interim dividends payment. The Board of Directors
has legal right to approve the dividends payment and reports to the
shareholders to acknowledge in the following Shareholders’ meeting.

Dividend Payment Policy of the Subsidiary (Plearn Patt Co., Ltd.)

The Company can pay dividend payment from the subsidiary when the
Company withholds the capital reserve of no less than 5% of the annual
total profit, deducted by the accumulated deficit (if any) until the
reserve capital is accounted for no less than 10% of the registered
capital. The Company may not pay dividends from other sources except for
the profit money. In case the Company has an accumulated deficit, the
Company may not pay dividends. The dividends will be divided by the
numbers of shares evenly. However, the committee may pay occasional
interim dividends if the profit amount is sufficient to appropriately do
so and the committee will report it in the coming meeting. The dividend
can be paid within one month from the shareholders’ meeting date on the
date of the committee’s approval.

  In addition, according to the Bill of Private Schools B.E. 2550
  Section 45, the annual profits from the operation of schools in the
  system can be allocated by the committee as follows :

1)  Schools in the system which are supported by the government allocate
    no more than 3% of the profit to the system’s school support fund
    assigned by the committee.

2)  No less than 10% of the profit is allocated to the capital reserve.

3)  No more than 40% of the profit is allocated to the licensee.

4)  In case there are other funds, the profit may be located to such
    funds. In case of no other funds available, the remaining profits
    may be allocated to the capital reserve.

  The Company’s dividend payments in the last 3 years are as follows :

+-------------------------+----------+----------+----------+----------+
| Dividend payment from   | Dividend | Dividend | Net      | Dividend |
|                         | payment  |          | profit   | payout   |
| operations results      | date     | Per      |          | ratio    |
|                         |          | share    | (        |          |
|                         |          | (Baht)   | Thousand |          |
|                         |          |          | Baht)    |          |
|                         |          |          |          |          |
|                         |          |          | [        |          |
|                         |          |          | separate |          |
|                         |          |          | f        |          |
|                         |          |          | inancial |          |
|                         |          |          | sta      |          |
|                         |          |          | tements] |          |
+-------------------------+----------+----------+----------+----------+
| Year 2011 :             |          |          |          |          |
|                         |          |          |          |          |
| Cash Dividend           |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 1             | 10       | 0.10     | 41,219   | 78.59    |
|                         | /06/2011 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 2             | 8        | 0.10     | 79,937   | 40.52    |
|                         | /09/2011 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 3             | 8        | 0.10     | 59,517   | 54.42    |
|                         | /12/2011 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 4             | 24       | 0.11112* | 42,162   | 85.37    |
|                         | /05/2012 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Total for Year 2011     |          | 0.41112  | 222,835  | 59.76    |
+-------------------------+----------+----------+----------+----------+
| Stock Dividend*         |          |          |          |          |
|                         |          |          |          |          |
| The 1/2012 Board of     |          |          |          |          |
| Directors Meeting       |          |          |          |          |
| agreed to propose the   |          |          |          |          |
| Annual General          |          |          |          |          |
| Shareholders Meeting to |          |          |          |          |
| approve the dividend    |          |          |          |          |
| payment for the year    |          |          |          |          |
| 2011. The dividend will |          |          |          |          |
| be paid in the form of  |          |          |          |          |
| the Company’s common    |          |          |          |          |
| stock of no more than   |          |          |          |          |
| 32,392,113 shares, at   |          |          |          |          |
| THB 1 per share. This   |          |          |          |          |
| will be given to the    |          |          |          |          |
| Company’s shareholders  |          |          |          |          |
| at the rate of 10       |          |          |          |          |
| original shares per 1   |          |          |          |          |
| stock dividend or THB   |          |          |          |          |
| 0.10 per share (along   |          |          |          |          |
| with the cash dividend  |          |          |          |          |
| at the rate of THB      |          |          |          |          |
| 0.41112 per share as    |          |          |          |          |
| detailed above).        |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Year 2010 :             |          |          |          |          |
|                         |          |          |          |          |
| Cash Dividend           |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 1             | 11       | 0.10     | 46,248   | 70.04    |
|                         | /06/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 2             | 8        | 0.10     | 68,039   | 47.61    |
|                         | /09/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 3             | 9        | 0.10     | 51,381   | 63.04    |
|                         | /12/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 4             | 27       | 0.43     | 71,316   | 195.31   |
|                         | /05/2011 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Total for Year 2010     |          | 0.73     | 236,984  | 99.78    |
+-------------------------+----------+----------+----------+----------+
| Year 2009 :             |          |          |          |          |
|                         |          |          |          |          |
| Cash Dividend           |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 1             | 9        | 0.10     | 52,247   | 62.00    |
|                         | /06/2009 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 2             | 11       | 0.10     | 53,893   | 60.10    |
|                         | /09/2009 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 3             | 11       | 0.10     | 40,573   | 79.84    |
|                         | /12/2009 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 4             | 27       | 0.36     | 67,645   | 172.39   |
|                         | /05/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Total for Year 2009**   |          | 0.66     | 214,358  | 99.73    |
+-------------------------+----------+----------+----------+----------+
| Remark * Rate of        |          |          |          |          |
| dividend per share      |          |          |          |          |
| which is paid from net  |          |          |          |          |
| profit after corporate  |          |          |          |          |
| tax in the financial    |          |          |          |          |
| statement for           |          |          |          |          |
| individual company is   |          |          |          |          |
| proposed by the board   |          |          |          |          |
| of directors, where by  |          |          |          |          |
| such rate will be       |          |          |          |          |
| decided at the annual   |          |          |          |          |
| general shareholder’s   |          |          |          |          |
| meeting on April 26,    |          |          |          |          |
| 2012, and the rate is   |          |          |          |          |
| calculated from common  |          |          |          |          |
| shares stated on        |          |          |          |          |
| November 28, 2011.      |          |          |          |          |
|                         |          |          |          |          |
| **. Since the fourth    |          |          |          |          |
| quarter of 2009 the     |          |          |          |          |
| Company began the       |          |          |          |          |
| consolidated financial  |          |          |          |          |
| statement and change    |          |          |          |          |
| the dividend payment    |          |          |          |          |
| policy from paying      |          |          |          |          |
| dividends after the     |          |          |          |          |
| withholding tax         |          |          |          |          |
| deduction in the        |          |          |          |          |
| financial statement     |          |          |          |          |
| that shows investment   |          |          |          |          |
| by interest to paying   |          |          |          |          |
| dividends by the net    |          |          |          |          |
| profit of the separate  |          |          |          |          |
| financial statements.   |          |          |          |          |
+-------------------------+----------+----------+----------+----------+