2.7 Litigation

The significant litigation cases which are still in process between the
Company and its customers as of 31 December 2008 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, 2007 ( 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.                   |
+----------------------------------+-----------------------------------+
| 2. More than 10 million baht / 1 | Sahaviriya City Public Company    |
| 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 Court sentenced   |
|                                  | the debtor an absolute receiving  |
|                                  | order on 20 Nov, 2007 as the plan |
|                                  | was unsuccessful and the period   |
|                                  | of the plan has ended so the      |
|                                  | Company had claimed over the      |
|                                  | debtor’s property from the Legal  |
|                                  | Execution Dept.                   |
+----------------------------------+-----------------------------------+
| 3. United Securities was the     | 1. Mr. Supachai Chitvisuthipong   |
| defendant / 2 cases              |                                   |
|                                  | 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.                         |
|                                  |                                   |
|                                  | 2. Mrs. Saranporn or Sarankorn    |
|                                  | Promwan                           |
|                                  |                                   |
|                                  | Mrs. Saranporn, the Company’s     |
|                                  | former employee, filed a          |
|                                  | complaint against the Company     |
|                                  | claiming compensation for unjust  |
|                                  | termination of THB 13,358,427.47  |
|                                  | at the Central Labor Court on Nov |
|                                  | 17, 2006. The Court, on Aug 14,   |
|                                  | 2007, had read the judgment,      |
|                                  | being Red Case No. 4176/2007,     |
|                                  | ordering the Company to pay her   |
|                                  | in the sum of THB 4,000,000       |
|                                  | together with interest rate of    |
|                                  | 7.5% per annum accruing from the  |
|                                  | prosecution date until the        |
|                                  | payment date. The Company lodged  |
|                                  | the appeal to the Supreme Court   |
|                                  | since Nov 27, 2007. At present,   |
|                                  | the case is under the Supreme     |
|                                  | Court process.                    |
+----------------------------------+-----------------------------------+

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 and provision for liabilities
from the litigations for all of these cases.