GC_ONE REPORT 2021_ENG

- 111 - On January 20, 2022, the Appeal Court upheld the judgment of the Court of First Instance. However, the subsidiary did not agree with the Appeal Court's decision and will submit a request for a petition to the Supreme Court. The subsidiary believes that its defenses in facts, laws, and the exercising rights in court in good faith, in the end, the Supreme Court will consider evidences in the case and adjudicate the subsidiary not to be liable for payment of debts according to the judgments of the Court of First Instance and the Court of Appeal. The subsidiary also believes that evidences that the subsidiary has submitted additionally in the Court of Appeal as important evidences, directly related to the issue of the case, and is new evidence that the inquiry official in criminal cases has gathered and prepared from the investigation after the Court of First Instance decided the case, are solid evidences that will make the Supreme Court hear that the transaction documents prepared by Anatta, assisted by former employees of the subsidiary, and used by ACAP as evidences for filing against the subsidiary, are dishonest and unlawful acts. This is consistent with the fact that the SEC has found fraudulent acts related to inventory issue and unlawful exploitation which caused the subsidiary to be damaged. It is considered as an offense under the Securities and Exchange Act B.E. 2535. The inquiry official has made recommendation to pursue prosecution in some criminal cases and submitted the investigation documents to the public prosecutor already, therefore, the subsidiary believes that the subsidiary has no debts to be liable to ACAP under the contracts arising from dishonest and unlawful acts. However, the subsidiary has considered to record a reserve for damages from the said case in the amount of Baht 444 million. c.2) On September 8, 2020, the subsidiary received a summons and a copy of a Civil Court plaint from a company, a former supplier of the subsidiary, to filed a civil lawsuit against the subsidiary regarding the breach of an agreement concerning the reclaiming of purchase price on raw materials and claiming damages on the principal of Baht 470.03 million with interest at the rate of 7.5% per annum, amounting to Baht 595.10 million, starting from the date of the lawsuit until the date of completion of payment. The witness hearing will be held in June 2022. On November 8, 2020, the subsidiary received a summons and a copy of a Civil Court plaint from the aforementioned company to filed a civil lawsuit against the subsidiary as the first defendant and two other companies as joint defendants regarding the breach of principal-agent agreements and claiming damages on the principal of Baht 92.29 million with interest at the rate of 7.5% per annum, amounting to Baht 109.42 million, starting from the date of the lawsuit until the date of completion of payment. The witness hearing will be held in June and July 2022. On December 25, 2020, the subsidiary received a summons and a copy of a Civil Court plaint from the aforementioned company to filed a civil lawsuit against a supplier and the subsidiary as second defendants regarding the breach of agreements concerning the reclaiming of purchase price on raw materials and claiming damages on the principal of Baht 305.26 million with interest at the rate of 7.5% per annum, amounting to Baht 364.71 million, starting from the date of the lawsuit until the date of completion of payment. The witness hearing will be held in July and August 2022. The subsidiary and legal advisor of the subsidiary have considered relevant facts and evidences in all three cases and provided the opinion that the subsidiary has not breached the agreement and has no obligation to pay as claimed. Therefore, the subsidiary has appointed a lawyer and filed testimony with its defense in accordance with the applicable law. In addition, the subsidiary is in the process of filing a counterclaim amounting to Baht 551 million. Therefore, the subsidiary has not recorded any provision against any losses from such case. d) Civil Court plaint regarding tort, breach of agreements, breach of promise and claiming damages occurred in year 2021 of the subsidiary On June 28, 2021, the subsidiary received a summons and a copy of the Civil Court plaint in which a company filed a lawsuit against the subsidiary in the Civil Court regarding tort, breach of agreements, breach of promise and claiming damages in the total amount of Baht 449.77 million, together with interest at the rate of 7.5% per annum. The subsidiary and legal advisor of the subsidiary considered relevant facts and evidences and provided the opinion that the issue of this lawsuit is the same as the case that the subsidiary had filed against such company and the subsidiary has not committed a wrongful act and has not breached the agreements against the plaintiff as claimed. The subsidiary appointed a lawyer and submitted a file testimony with its defense. The witness hearing will be held on March 1 - 4, 2022. Therefore, the subsidiary has not recorded any provision against any losses from such case. 343 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX

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