--------------------- ---------- ------ ---------- ----- ---------- -----
                                                                      

                                                                      

                                                                      

                                                                      

                                                                      

                                                                      

                                                                      

                                                                      

                                                                      
  --------------------- ---------- ------ ---------- ----- ---------- -----

  --------------------- ----------------- ---------------- ----------------
                                                           

                                                           

                                                           

                                                           
  --------------------- ----------------- ---------------- ----------------

+--------------------+---------+-----+---------+----+---------+----+
|                    |         |     |         |    |         |    |
+--------------------+---------+-----+---------+----+---------+----+
|                    |         |     |         |    |         |    |
+--------------------+---------+-----+---------+----+---------+----+
|                    |         |     |         |    |         |    |
+--------------------+---------+-----+---------+----+---------+----+
|                    |         |     |         |    |         |    |
+--------------------+---------+-----+---------+----+---------+----+
|                    |         |     |         |    |         |    |
+--------------------+---------+-----+---------+----+---------+----+
|                    |         |     |         |    |         |    |
+--------------------+---------+-----+---------+----+---------+----+

The Banyan Tree Phuket hotel is owned by Laguna Banyan Tree Limited in
which LRH had a 51% ownership interest at 31 December 2001. The
remaining 49% shareholding was purchased in early 2002 which has
resulted in LRH now having a 100% ownership interest. The hotel
continues to show strong growth year on year. The decline in occupancy
was more than compensated by the significant improvement in average room
rate. The hotel is located at 33 Moo 4 Cherngtalay District, Amphur
Talang, Phuket Province. The management of the Banyan Tree Phuket hotel
is contracted out to Banyan Tree Hotels & Resorts Pte Ltd.

Dusit Laguna Resort

  --------------------- ----------------- ---------------- ----------------
                                                           

                                                           

                                                           

                                                           
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+

The Dusit Laguna Resort is directly owned by Laguna Resorts & Hotels
Public Company Limited. The performance in 2001 was flat as compared to
the previous year. The significantly reduced occupancy was largely
compensated by the increase in average room rate. The hotel is located
at 390 Srisoonthorn Road, Cherngtalay District, Amphur Talang, Phuket
Province. The management of the Dusit Laguna Resort is contracted out to
Dusit Hotels and Resorts Co., Ltd.

Laguna Beach Resort

  --------------------- ----------------- ---------------- ----------------
                                                           

                                                           

                                                           

                                                           
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+

The Laguna Beach Resort is owned by Laguna Beach Club Limited in which
LRH has a 41.67% effective ownership interest. The increase in average
room rate has more than offset the reduction in occupancy as compared to
2000, which resulted in 2001 being a record year. The hotel is located
at 323 Moo 2 Srisoonthorn Road, Cherngtalay District, Amphur Talang,
Phuket Province. The management of the Laguna Beach Resort is jointly
performed by the LRH management and its joint venture partner, Pacific
Resort (Thailand) Co. Ltd.

Sheraton Grande Laguna Phuket 

  --------------------- ----------------- ---------------- ----------------
                                                           

                                                           

                                                           

                                                           
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+

The Sheraton Grande Laguna Phuket is owned by Bangna Place Realty
Limited in which LRH has a 100% ownership interest. The reduction in the
revenue as compared to the previous year was due to the significantly
lower occupancies which was partially compensated by the increase in
rates. The hotel is located at 10 Moo 4 Cherngtalay District, Amphur
Talang, Phuket Province. The management of the Sheraton Grande Laguna
Phuket is contracted out to Sheraton Overseas Management Corporation.

Banyan Tree Golf Club

+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+
|                    |          |    |         |    |         |    |
+--------------------+----------+----+---------+----+---------+----+

12 Financial Position and Operating Results

12.1 Summary of Financial Position and Operating Results for the past 3
years

12.1.1 Summary of auditors findings and significant accounting policies.

The name of Company’s and its subsidiaries’ Auditor for the 2004
Financial Statements is Sophon Permsirivallop, Certified Public
Accountant (Thailand) No. 3182 of Ernst & Young Office Limited.

Conclusion of the Auditors Report

  For the year ended 31 December 2004

In summary, a clean audit report was issued.

  Reference was made to two subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited and
  Laguna (1) Co., Ltd. that were audited by another auditor for the year
  ended 31 December 2004. The company’s financial statements included
  investments in these subsidiaries as at 31 December 2004 of Baht 493
  million, accounted for under the equity method, and the share of
  profit from these subsidiaries for the year then ended amounted to
  Baht 47 million.

  The financial statements were audited in accordance with generally
  accepted auditing standards which included such tests of the
  accounting records and such other auditing procedures as considered
  necessary in the circumstances.

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2004 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles

  For the year ended 31 December 2003

In summary, a clean audit report was issued.

  Reference was made to two subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited and
  Laguna (1) Co., Ltd. that were audited by another auditor for the year
  ended 31 December 2003. The company’s financial statements included
  investments in these subsidiaries as at 31 December 2003 of Baht 402
  million, accounted for under the equity method, and the share of
  profit from these subsidiaries for the year then ended amounted to
  Baht 39 million.

  The financial statements were audited in accordance with generally
  accepted auditing standards which included such tests of the
  accounting records and such other auditing procedures as considered
  necessary in the circumstances.

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2003 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles.

For the year ended 31 December 2002

In summary, a clean audit report was issued.

  Reference was made to two subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited and
  Laguna (1) Co., Ltd. that were audited by another auditor for the year
  ended 31 December 2002. The company’s financial statements included
  investments in these subsidiaries as at 31 December 2002 of Baht 292
  million, accounted for under the equity method, and the share of
  profit from these subsidiaries for the year then ended amounted to
  Baht 48 million.

  The financial statements were audited in accordance with generally
  accepted auditing standards which included such tests of the
  accounting records and such other auditing procedures as considered
  necessary in the circumstances.

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2002 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles.

Accounting policies

The financial statements have been prepared in accordance with
accounting standards pronounced by the Institute of Certified
Accountants and Auditors of Thailand and with the Accounting Act B.E.
2543.

Significant accounting policies adopted by the Company and its
subsidiaries are summarized below :-

    Revenue recognition

(a) Revenue from hotel operations

  - Revenue from hotel operations mainly comprises room sales, food and
  beverage sales and revenues from auxiliary activities, and represents
  the invoiced value (excluding value added tax) of goods supplied and
  services rendered after deducting discounts and service charges.

  - Revenue from sales of merchandise (Gallery operation) represents the
  invoiced value (excluding value-added tax) of goods supplied after
  deducting discounts and allowance.

  (b) Revenue from property development operations

  - Revenue from sale of land and houses

  Revenues from sale of land and houses are recognised when a legally
  binding contract is signed and by applying the percentage of
  completion method. The percentage of completion is arrived at based on
  actual costs incurred as compared to the total anticipated
  construction costs, excluding cost of land, and estimations performed
  by independent engineers. The subsidiaries recognise income when the
  initial payment and installments received are at least twenty percent
  of the contract price and the construction work is at least ten
  percent completed. Revenue recognition is discontinued when there are
  three consecutive installments overdue.

  Revenues from sale of land are recognized by applying the completion
  method when the ownership has been transferred to buyers or all
  payments are received from the buyers.

- Revenue from sales of furniture in condominium units

  Revenue from sales of furniture in condominium units are recognised
  when furniture is completely installed according to the customers’
  specifications.

    - Revenue from sale of right to use of condominium units (time-share
    business)

    Revenue from sales of right to use of condominium units under time -
    share membership is recognised when a legally binding contract has
    been signed and the initial payment and installments received amount
    to at least twenty-five percent of the contract price.

    Cost of land and houses sold

    In determining the cost of land and houses sold, the anticipated
    total development cost (after recognising the cost incurred to date)
    are attributed to units already sold and then recognised as cost in
    the earnings statement according to the percentage of completion
    basis.

    Cash and cash equivalents

    Cash and cash equivalents include cash on hand, cash at banks and
    deposits with financial institutions with an original maturity of 3
    months or less and without restrictions.

    Trade accounts receivable and allowance for doubtful accounts

Trade accounts receivable are stated at the net realisable value.
Allowance for doubtful accounts is provided for the estimated collection
losses that may be incurred in the collection of receivables. The
allowance is based on collection experience and current status of
receivables outstanding at the balance sheet date.

    Property development cost

Property development cost is stated at the lower of cost and net
realisable value. Cost comprises cost of land, design fee,
infrastructure, construction and related interest.

In determining the cost of sales of the time share business, the cost of
each condominium unit is divided equally by the number weeks in a year
and then the cost of each week sold is recognised in the earnings
statement on the first-in, first-out basis.

    Inventories

Inventories are valued at the lower of cost and net realisable value,
cost being determined on either the first-in, first-out or the weighted
average basis.

    Investments

Investments in subsidiaries (in the financial statements of the Company)
and associated companies are stated under the equity method of
accounting. Under this method, the investment is recorded at cost. For
each subsequent year the investment is adjusted to incorporate the
Company's proportionate share of the operating results in the
subsidiaries and associated companies. Losses over the cost of
investment are presented as a liability under the caption of "Provision
for loss on investment in subsidiaries and associated companies".

    Other long-term investments

Long-term investments in marketable equity securities, which the Company
and subsidiaries intend to hold as available-for-sale are determined at
fair value (fair value is based on the latest bid prices quoted by the
Stock Exchange of Thailand on the last working day as of the balance
sheet date) and recognise changes in value of investments as a separate
item under shareholders’ equity under the caption of “Unrealised
gain/loss on available-for-sale securities”.

Long-term investments in non-marketable equity securities which the
Company and subsidiaries hold as other investments are carried at cost.

For long-term investments in both marketable and non-marketable equity
or debt securities, a test for impairment is carried out when there is a
factor indicating that such investments might be impaired. Loss on
impairment (if any) is recognised in the earnings statement.

On disposal of an investment, the difference between the net disposal
proceeds and the carrying amount is charged or credited to the earnings
statement.

When disposing of part of a particular investment in debt or equity
securities, the carrying amount of the disposed part is determined as
the weighted average carrying amount of the total holding of the
investment.

    Property, plant and equipment

(a) Hotel properties

  Hotel properties which consist of land, buildings, fixtures and
  equipment of buildings are stated at cost less accumulated
  depreciation. The Company and subsidiaries initially record land,
  buildings, fixtures and equipment of buildings at cost at the
  acquisition date. Such fixed assets have been however subsequently
  revalued by an independent appraiser, to their fair values. As a
  policy, the revaluation will be performed every three years. If within
  that period, there are factors which may cause significant changes in
  the value of assets, the revaluation will be performed in that year.

  (b) Other fixed assets/land awaiting for future development

  Fixed assets other than hotel properties are stated at cost less
  accumulated depreciation, except for land and land awaiting future
  development which is stated at revaluation made by an independent
  appraiser. As a policy, land revaluation by an independent appraiser
  will be made every three years. If within that period, there are
  factors which may cause significant changes in the value of assets,
  the revaluation will be performed in that year.

The differences arising from revaluation are dealt with in the financial
statements of the Company and subsidiaries as follows:

- When an asset’s carrying amount is increased as a result of the
revaluation of the Company and subsidiaries assets, the increase is
credited directly to equity under the heading of “Revaluation surplus”.
The Company’s proportional interest in the surplus from revaluation of
the fixed assets of the subsidiaries (based on the Company’s equity
holding in the subsidiaries) is also presented under the caption of
“Revaluation surplus” in shareholders’ equity in the balance sheet.
However, a revaluation increase will be recognised as income to the
extent that it reverses a revaluation decrease of the same asset
previously recognised as an expense.

- When an asset’s carrying amount is decreased as a result of the
revaluation of the Company and subsidiaries’ assets, the decrease is
recognised as an expense in the earnings statement. However, a
revaluation decrease is to be charged directly against the related
“Revaluation surplus ” to the extent that the decrease does not exceed
the amount held in the revaluation surplus in respect of those same
assets. Any excess amount is to be recognised as expense in the earnings
statement.

    Depreciation

Depreciation of plant and equipment is calculated by reference to its
costs or reappraised value on a straight-line basis over estimated
useful lives as follows:-

  ------------------------------------------------ --------------- -------
  Buildings and improvements                       10 – 50         Years

  Operating equipment                              3 – 10          Years

  Furniture, fixtures and equipment                5 – 15          Years

  Golf course                                      5 – 10          Years

  Vehicles                                         5               Years
  ------------------------------------------------ --------------- -------

No depreciation has been provided for land and construction in process.

Depreciation on revalued/devalued assets is calculated on the
straight-line method, based on the revalued amount of the fixed asset
and its remaining useful life. Depreciation is included in determining
earnings.

The amount of the surplus amortised is the difference between
depreciation based on the revalued carrying amount of the asset and
depreciation based on the asset’s original cost. Amortisation is
transferred to the earnings statement.

    Leasehold rights and amortisation

Leasehold rights are stated at cost less accumulated amortisation and
any impairment losses (if any). Amortisation of leasehold rights are
calculated by reference to their costs on a straight-line basis over the
following leasehold periods: -

  Land 50 years

  Hotel units 20 years

    Goodwill and negative goodwill

Goodwill is generated as a result of investments in subsidiaries being
made at a cost higher than the fair value of identifiable net assets of
subsidiaries.

Negative goodwill is generated as a result of investments in
subsidiaries being made at a cost lower than the fair value of
identifiable net assets of subsidiaries

Goodwill and negative goodwill are stated at cost less amortization and
any impairment losses (if any). Amortization is calculated on a
straight-line basis over 20 years for hotel operation acquisitions, and
over 3 years for other business acquisitions

    Foreign currencies

Foreign currency transactions during the year are translated into Baht
at the rates of exchange ruling on the transaction dates. Monetary
assets and liabilities in foreign currency outstanding on the balance
sheet date are translated into Baht at the rates ruling on the balance
sheet date.

Exchange gains and losses are included in determining earnings.

The financial statements of the subsidiaries and associated companies
incorporated overseas are translated to Thai Baht at the closing
exchange rate for assets and liabilities, and at the average exchange
rate for revenues and expenses. The resulting difference has been shown
under the caption of “Currency translation differences” in the
shareholders’ equity.

    Provident fund

The Company and its subsidiaries and their employees have jointly
established a provident fund as approved by the Ministry of Finance in
accordance with the Provident Fund Act (B.E. 2530). Contributions are
made to the fund by both employees and the Company and its subsidiaries
and will be paid to employees upon termination in accordance with the
rules of the Company and its subsidiaries’ provident fund.

    Basic earnings per share

Basic earnings per share is calculated by dividing the net earnings for
the year by the weighted average number of ordinary shares in issue
during the year.

    Use of accounting estimates

Preparation of financial statements in conformity with generally
accepted accounting principles in certain circumstances requires
management to make estimates and assumptions that affect amounts
reported in the accompanying financial statements and notes thereto.
Actual results could differ from these estimates.

12.1.2 Summary of financial statements

Consolidated Statements of Earnings 

 Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | Cons     |          |          |
|                                   |   | olidated |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2004     | 2003     | 2002     |
+-----------------------------------+---+----------+----------+----------+
| REVENUES                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from hotel operations  |   | 2,803    | 2,443    | 2,557    |
|                                   |   | ,596,825 | ,245,997 | ,132,070 |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from property          |   | 1,051    | 541      | 278      |
|   development operations          |   | ,813,670 | ,406,380 | ,008,429 |
+-----------------------------------+---+----------+----------+----------+
|   Interest income                 |   | 12       | 10       | 19       |
|                                   |   | ,323,064 | ,470,050 | ,566,400 |
+-----------------------------------+---+----------+----------+----------+
|   Reversal of provision for       |   | 40       | -        | -        |
|   impairment in value             |   | ,590,247 |          |          |
|                                   |   |          |          |          |
|   of other long-term investment   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Other income                      |   | 51       | 64       | 14       |
|                                   |   | ,127,932 | ,014,634 | ,182,465 |
+-----------------------------------+---+----------+----------+----------+
| Total revenues                    |   | 3,959    | 3,059    | 2,868    |
|                                   |   | ,451,738 | ,137,061 | ,889,364 |
+-----------------------------------+---+----------+----------+----------+
| EXPENSES                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Direct hotel operations         |   | 1,944    | 1,742    | 1,769    |
|   expenses                        |   | ,449,076 | ,048,923 | ,977,804 |
+-----------------------------------+---+----------+----------+----------+
|   Direct cost of property         |   | 561      | 294      | 182      |
|   development operations          |   | ,602,288 | ,688,708 | ,024,268 |
+-----------------------------------+---+----------+----------+----------+
|   Selling and administrative      |   | 232      | 214      | 163      |
|   expenses                        |   | ,793,131 | ,962,412 | ,301,469 |
+-----------------------------------+---+----------+----------+----------+
|   Loss on impairment of           |   | -        | -        | 283      |
|   investment in available         |   |          |          | ,796,722 |
|                                   |   |          |          |          |
|   for sale securities             |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Directors’ remuneration         |   | 10       | 6        | 5        |
|                                   |   | ,903,596 | ,847,699 | ,396,000 |
+-----------------------------------+---+----------+----------+----------+
|   Foreign exchange loss           |   | 8        | 22       | 4        |
|                                   |   | ,105,024 | ,382,872 | ,995,124 |
+-----------------------------------+---+----------+----------+----------+
| Total expenses                    |   | 2,757    | 2,280    | 2,409    |
|                                   |   | ,853,115 | ,930,614 | ,491,387 |
+-----------------------------------+---+----------+----------+----------+
| Earnings before interest expenses |   | 1,201    | 778      | 459      |
| and income tax                    |   | ,598,623 | ,206,447 | ,397,977 |
+-----------------------------------+---+----------+----------+----------+
| Interest expenses                 |   | (39,     | (57,     | (78,     |
|                                   |   | 813,346) | 169,203) | 663,343) |
+-----------------------------------+---+----------+----------+----------+
| Corporate income tax              |   | (156,    | (158,    | (151,    |
|                                   |   | 574,480) | 553,338) | 313,732) |
+-----------------------------------+---+----------+----------+----------+
| Earnings after income tax         |   | 1,005    | 562      | 229      |
|                                   |   | ,210,797 | ,483,906 | ,420,902 |
+-----------------------------------+---+----------+----------+----------+
| Net earnings of minority interest |   | (78,     | (61,     | (76,     |
| in subsidiaries                   |   | 821,362) | 927,759) | 872,950) |
+-----------------------------------+---+----------+----------+----------+
| Net earnings before extraordinary |   | 926      | 500      | 152      |
| item                              |   | ,389,435 | ,556,147 | ,547,952 |
+-----------------------------------+---+----------+----------+----------+
| Extraordinary item – provision    |   |          |          |          |
| for impairment                    |   |          |          |          |
|                                   |   |          |          |          |
| of fixed assets, attributable to  |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   – Expenses                      |   | (45,     | -        | -        |
|                                   |   | 000,000) |          |          |
+-----------------------------------+---+----------+----------+----------+
|   – Minority interest             |   | 4        | -        | -        |
|                                   |   | ,000,000 |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | (41,     | -        | -        |
|                                   |   | 000,000) |          |          |
+-----------------------------------+---+----------+----------+----------+
| Net earnings for the year         |   | 885      | 500      | 152      |
|                                   |   | ,389,435 | ,556,147 | ,547,952 |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+

 

Consolidated Statement of Earnings (continued)

Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | Cons     |          |          |
|                                   |   | olidated |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2004     | 2003     | 2002     |
+-----------------------------------+---+----------+----------+----------+
| Basic earnings per share          |   | 10.94    | 5.91     | 1.80     |
|                                   |   |          |          |          |
|   Net earnigs before extraordinay |   |          |          |          |
|   item                            |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Extraordinary item              |   | (0.48)   | -        | -        |
+-----------------------------------+---+----------+----------+----------+
|   Net earnings for the year       |   | 10.46    | 5.91     | 1.80     |
+-----------------------------------+---+----------+----------+----------+

Consolidated Balance Sheets

Unit : Baht

+------------------------------------+---+----------+----------+---+----------+
|                                    |   | Cons     |          |   |          |
|                                    |   | olidated |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|                                    |   | 2004     | 2003     |   | 2002     |
+------------------------------------+---+----------+----------+---+----------+
| ASSETS                             |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Current Assets                     |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Cash and cash equivalents        |   | 515      | 390      |   | 249      |
|                                    |   | ,919,381 | ,887,127 |   | ,901,587 |
+------------------------------------+---+----------+----------+---+----------+
|   Current investment-fixed         |   | 40       | 37       |   | 33       |
|   deposits with financial          |   | ,805,486 | ,914,560 |   | ,184,330 |
|   institutions                     |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Trade accounts receivable – net  |   | 858      | 586      |   | 397      |
|                                    |   | ,137,461 | ,482,978 |   | ,577,924 |
+------------------------------------+---+----------+----------+---+----------+
|   Amounts due from related         |   | 26       | 47       |   | 45       |
|   companies                        |   | ,100,819 | ,081,121 |   | ,319,158 |
+------------------------------------+---+----------+----------+---+----------+
|   Inventories – net                |   | 127      | 106      |   | 110      |
|                                    |   | ,630,558 | ,609,895 |   | ,256,117 |
+------------------------------------+---+----------+----------+---+----------+
|   Property development cost – net  |   | 141      | 121      |   | 187      |
|                                    |   | ,364,525 | ,553,309 |   | ,663,324 |
+------------------------------------+---+----------+----------+---+----------+
| Other current assets               |   | 62       | 51       |   | 51       |
|                                    |   | ,992,946 | ,389,407 |   | ,625,561 |
+------------------------------------+---+----------+----------+---+----------+
| Total current assets               |   | 1,772    | 1,341    |   | 1,075    |
|                                    |   | ,951,176 | ,918,397 |   | ,528,001 |
+------------------------------------+---+----------+----------+---+----------+
| Non Current Assets                 |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Restricted deposits at financial   |   | 2        | -        |   | -        |
| institution                        |   | ,000,000 |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Long-term trade accounts           |   | 39       | 48       |   | 93       |
| receivable                         |   | ,627,436 | ,230,567 |   | ,585,257 |
+------------------------------------+---+----------+----------+---+----------+
| Other long-term investments        |   | 219      | 216      |   | 177      |
|                                    |   | ,318,614 | ,684,519 |   | ,256,919 |
+------------------------------------+---+----------+----------+---+----------+
| Property, plant and equipment -    |   | 6,647    | 6,327    |   | 6,484    |
| net                                |   | ,517,339 | ,808,513 |   | ,245,683 |
+------------------------------------+---+----------+----------+---+----------+
| Land awaiting development          |   | 700      | 658      |   | 658      |
|                                    |   | ,335,000 | ,266,855 |   | ,506,916 |
+------------------------------------+---+----------+----------+---+----------+
| Leasehold rights                   |   | 124      | 117      |   | -        |
|                                    |   | ,656,114 | ,746,242 |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Negative goodwill on consolidation |   | (14,     | (9,      |   | (6,      |
|                                    |   | 356,262) | 198,019) |   | 368,304) |
+------------------------------------+---+----------+----------+---+----------+
| Other non current assets           |   | 18       | 16       |   | 15       |
|                                    |   | ,378,330 | ,921,717 |   | ,682,841 |
+------------------------------------+---+----------+----------+---+----------+
| Total non-current assets           |   | 7,737    | 7,376    |   | 7,422    |
|                                    |   | ,476,571 | ,460,394 |   | ,909,312 |
+------------------------------------+---+----------+----------+---+----------+
| TOTAL ASSETS                       |   | 9,510    | 8,718    |   | 8,498    |
|                                    |   | ,427,747 | ,378,791 |   | ,437,313 |
+------------------------------------+---+----------+----------+---+----------+
| LIABILITIES AND SHAREHOLDERS'      |   |          |          |   |          |
| EQUITY                             |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Current liabilities                |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Bank overdrafts and short-term   |   | 60       | 210      |   | 185      |
|   loans from                       |   | ,000,000 | ,000,000 |   | ,059,960 |
|                                    |   |          |          |   |          |
|   financial institutions           |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Trade accounts payable           |   | 206      | 138      |   | 109      |
|                                    |   | ,182,872 | ,495,403 |   | ,597,113 |
+------------------------------------+---+----------+----------+---+----------+
|   Current portion of long-term     |   | 300      | 320      |   | 377      |
|   loans                            |   | ,000,000 | ,000,000 |   | ,500,000 |
+------------------------------------+---+----------+----------+---+----------+
|   Amounts due to related companies |   | 51       | 55       |   | 30       |
|                                    |   | ,534,241 | ,156,045 |   | ,318,660 |
+------------------------------------+---+----------+----------+---+----------+
|   Corporate income tax payable     |   | 74       | 82       |   | 71       |
|                                    |   | ,385,956 | ,423,436 |   | ,965,638 |
+------------------------------------+---+----------+----------+---+----------+
|   Other current liabilities        |   | 574      | 524      |   | 382      |
|                                    |   | ,171,509 | ,892,908 |   | ,320,646 |
+------------------------------------+---+----------+----------+---+----------+
| Total current liabilities          |   | 1,266    | 1,330    |   | 1,156    |
|                                    |   | ,274,578 | ,967,792 |   | ,762,017 |
+------------------------------------+---+----------+----------+---+----------+

Consolidated Balance Sheets (continued)

Unit : Baht

+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   |   | Conso   |          |          |
|                                     |   |   |   | lidated |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   | 2 |         | 2003     | 2002     |
|                                     |   |   | 0 |         |          |          |
|                                     |   |   | 0 |         |          |          |
|                                     |   |   | 4 |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| LIABILITIES AND SHAREHOLDERS’EQUITY |   |   |   |         |          |          |
| (continued)                         |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| Non-Current liabilities             |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| Long-term loans from related        |   |   |   | -       | 5        | -        |
| companies                           |   |   |   |         | ,746,255 |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| Long-term loans - net of current    |   |   |   | 400,    | 690      | 885      |
| portion                             |   |   |   | 000,000 | ,000,000 | ,000,000 |
+-------------------------------------+---+---+---+---------+----------+----------+
| Provision for loss on investment in |   |   |   | -       | -        | 4        |
| associated company                  |   |   |   |         |          | ,850,123 |
+-------------------------------------+---+---+---+---------+----------+----------+
| Other non-current liabilities       |   |   |   | 43,     | 36       | 35       |
|                                     |   |   |   | 171,285 | ,617,832 | ,197,498 |
+-------------------------------------+---+---+---+---------+----------+----------+
| Total non-current liabilities       |   |   |   | 443,    | 732      | 925      |
|                                     |   |   |   | 171,285 | ,364,087 | ,047,621 |
+-------------------------------------+---+---+---+---------+----------+----------+
| TOTAL LIABILITIES                   |   |   |   | 1,709,  | 2,063    | 2,081    |
|                                     |   |   |   | 445,863 | ,331,879 | ,809,638 |
+-------------------------------------+---+---+---+---------+----------+----------+
| Shareholders' equity                |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Share capital - registered,       |   |   |   | 846,    | 846      | 846      |
|   issued and fully paid-up,         |   |   |   | 701,430 | ,701,430 | ,701,430 |
|                                     |   |   |   |         |          |          |
|   84,670,143 ordinary shares of     |   |   |   |         |          |          |
|   Baht 10 each                      |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Premium on ordinary shares        |   |   |   | 2,062,  | 2,062    | 2,062    |
|                                     |   |   |   | 460,582 | ,460,582 | ,460,582 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Capital reserve                   |   |   |   | 634,    | 634      | 634      |
|                                     |   |   |   | 698,720 | ,698,720 | ,698,720 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Revaluation surplus               |   |   |   | 1,985,  | 1,592    | 1,669    |
|                                     |   |   |   | 987,993 | ,803,768 | ,833,202 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Unrealised gain on                |   |   |   | 393,328 | 38       | -        |
|   available-for-sale securities     |   |   |   |         | ,349,480 |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Curency translation differences   |   |   |   | 84,     | 84       | 88       |
|                                     |   |   |   | 829,377 | ,371,915 | ,602,459 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Retained earnings:                |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Appropriated – statutory reserve  |   |   |   | 84,     | 84       | 79       |
|                                     |   |   |   | 670,143 | ,670,143 | ,259,146 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Unappropriated                    |   |   |   | 1,430,  | 713      | 388      |
|                                     |   |   |   | 024,659 | ,975,510 | ,170,646 |
+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   |   | 1,514,  | 798      | 467      |
|                                     |   |   |   | 694,802 | ,645,653 | ,429,792 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Equity Attributable to company’s  |   |   |   | 7,129,  | 6,058    | 5,769    |
|   shareholders                      |   |   |   | 766,232 | ,031,548 | ,726,185 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Minority interests – equity       |   |   |   | 671,    | 597      | 646      |
|   attributable to                   |   |   |   | 215,652 | ,015,364 | ,901,490 |
|                                     |   |   |   |         |          |          |
|   minority shareholders of          |   |   |   |         |          |          |
|   subsidiaries                      |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| Total shareholders' equity          |   |   |   | 7,800,  | 6,655    | 6,416    |
|                                     |   |   |   | 981,884 | ,046,912 | ,627,675 |
+-------------------------------------+---+---+---+---------+----------+----------+
| TOTAL LIABILITIES AND SHAREHOLDERS' |   |   |   | 9,510,  | 8,718    | 8,498    |
| EQUITY                              |   |   |   | 427,747 | ,378,791 | ,437,313 |
+-------------------------------------+---+---+---+---------+----------+----------+

Consolidated Statements of Cash Flows 

Unit : Baht

  ------------------------------------ -- --------------- --------------- ---------------
                                          Consolidated                    

                                          2004            2003            2002

  Cash flows from (used in) operating                                     
  activities                                                              

  Net cash inflow (outflow) from          1,048,502,453   821,001,627     700,918,154
  operating activities                                                    

  Cash flows from (used in) investing                                     
  activities                                                              

  Net cash inflow (outflow) from          (237,000,956)   (265,598,423)   (685,196,409)
  investing activities                                                    

  Cash flows from (used in) financing                                     
  activities                                                              

  Net cash inflow (outflow) from          (683,578,317)   (409,687,434)   36,518,214
  financing activities                                                    

  Net increase (decrease) in cash and     127,923,180     145,715,770     52,239,959
  cash equivalents                                                        

  Cash and cash equivalents at the        428,801,687     283,085,917     230,845,958
  beginning of the year                                                   

  Cash and cash equivalents at the end    556,724,867     428,801,687     283,085,917
  of the year                                                             

                                                                          

                                                                          

                                                                          
  ------------------------------------ -- --------------- --------------- ---------------

 

Company Statements of Earnings

Unit : Baht

+-------------------------------------+----------+----------+----------+
|                                     | The      |          |          |
|                                     | Company  |          |          |
|                                     | Only     |          |          |
+-------------------------------------+----------+----------+----------+
|                                     | 2004     | 2003     | 2002     |
+-------------------------------------+----------+----------+----------+
| REVENUES                            |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Revenues from hotel operations    | 443      | 381      | 422      |
|                                     | ,335,461 | ,635,424 | ,137,705 |
+-------------------------------------+----------+----------+----------+
|   Interest income                   | 1        | 402,084  | 14       |
|                                     | ,193,828 |          | ,559,993 |
+-------------------------------------+----------+----------+----------+
|   Other income                      | 24       | 33       | 16       |
|                                     | ,422,992 | ,478,178 | ,871,140 |
+-------------------------------------+----------+----------+----------+
|   Share of profits from investments | 981      | 569      | 197      |
|   accounted for                     | ,542,281 | ,904,557 | ,681,342 |
|                                     |          |          |          |
|   under the equity method           |          |          |          |
+-------------------------------------+----------+----------+----------+
| Total revenues                      | 1,450    | 985      | 651      |
|                                     | ,494,562 | ,420,243 | ,250,180 |
+-------------------------------------+----------+----------+----------+
| EXPENSES                            |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Direct hotel operations expenses  | 295      | 258      | 273      |
|                                     | ,411,500 | ,563,220 | ,921,963 |
+-------------------------------------+----------+----------+----------+
|   Selling and administrative        | 162      | 157      | 160      |
|   expenses                          | ,911,915 | ,643,575 | ,418,993 |
+-------------------------------------+----------+----------+----------+
|   Loss on impairment of investment  | -        | -        | 845,000  |
|   in available                      |          |          |          |
|                                     |          |          |          |
|   for sale securities               |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Directors’ remuneration           | 10       | 6        | 5        |
|                                     | ,903,596 | ,847,699 | ,396,000 |
+-------------------------------------+----------+----------+----------+
|   Foreign exchange loss             | 3        | 897,595  | 1        |
|                                     | ,574,915 |          | ,449,207 |
+-------------------------------------+----------+----------+----------+
| Total expenses                      | 427      | 423      | 442      |
|                                     | ,801,926 | ,952,089 | ,031,163 |
+-------------------------------------+----------+----------+----------+
|                                     |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Earnings before interest expenses | 977      | 561      | 209      |
|   and income tax                    | ,692,636 | ,468,154 | ,219,017 |
+-------------------------------------+----------+----------+----------+
| Interest expenses                   | (51,     | (60,     | (56,     |
|                                     | 303,201) | 912,007) | 671,065) |
+-------------------------------------+----------+----------+----------+
| Net earnings before extraordinary   | 926      | 500      | 152      |
| item                                | ,389,435 | ,556,147 | ,547,952 |
+-------------------------------------+----------+----------+----------+
| Extraordinary item – provision for  |          |          |          |
| impairment                          |          |          |          |
|                                     |          |          |          |
| of fixed assets, attributable to    |          |          |          |
+-------------------------------------+----------+----------+----------+
|   - Share of profits from           | (21,     | -        | -        |
|   investments accounted for under   | 000,000) |          |          |
|   the equity method                 |          |          |          |
+-------------------------------------+----------+----------+----------+
|   - Expenses                        | (20,     | -        | -        |
|                                     | 000,000) |          |          |
+-------------------------------------+----------+----------+----------+
|                                     | (41,     | -        | -        |
|                                     | 000,000) |          |          |
+-------------------------------------+----------+----------+----------+
| Net earnings for the year           | 885      | 500      | 152      |
|                                     | ,389,435 | ,556,147 | ,547,952 |
+-------------------------------------+----------+----------+----------+
| Basic earnings per share            | 10.94    | 5.91     | 1.80     |
|                                     |          |          |          |
|   Net earnings before extraordinay  |          |          |          |
|   item                              |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Extraordinary item                | (0.48)   | -        | -        |
+-------------------------------------+----------+----------+----------+
|   Net earnings for the year         | 10.46    | 5.91     | 1.80     |
+-------------------------------------+----------+----------+----------+

Company Balance Sheets 

Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | The      |          |          |
|                                   |   | Company  |          |          |
|                                   |   | Only     |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2004     | 2003     | 2002     |
+-----------------------------------+---+----------+----------+----------+
| ASSETS                            |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Current Assets                    |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Cash and cash equivalents       |   | 45       | 40       | 26       |
|                                   |   | ,303,078 | ,586,887 | ,669,901 |
+-----------------------------------+---+----------+----------+----------+
|   Trade accounts receivable – net |   | 60       | 65       | 66       |
|                                   |   | ,810,645 | ,503,956 | ,453,939 |
+-----------------------------------+---+----------+----------+----------+
|   Amounts due from related        |   | 9        | 9        | 19       |
|   companies                       |   | ,869,138 | ,415,553 | ,055,073 |
+-----------------------------------+---+----------+----------+----------+
|   Inventories – net               |   | 11       | 9        | 9        |
|                                   |   | ,874,246 | ,232,525 | ,198,204 |
+-----------------------------------+---+----------+----------+----------+
|   Other current assets            |   | 12       | 11       | 7        |
|                                   |   | ,907,492 | ,815,912 | ,378,662 |
+-----------------------------------+---+----------+----------+----------+
| Total current assets              |   | 140      | 136      | 128      |
|                                   |   | ,764,599 | ,554,833 | ,755,779 |
+-----------------------------------+---+----------+----------+----------+
| Non Current Assets                |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Investment in subsidiaries        |   | 7,703    | 6,836    | 6,216    |
| accounted                         |   | ,459,048 | ,717,419 | ,676,368 |
|                                   |   |          |          |          |
| for under the equity method       |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Other long-term investments       |   | 25       | 55       | 23       |
|                                   |   | ,168,000 | ,855,000 | ,851,800 |
+-----------------------------------+---+----------+----------+----------+
| Long-term loans to subsidiaries   |   | 38       | 5        | -        |
|                                   |   | ,500,000 | ,901,950 |          |
+-----------------------------------+---+----------+----------+----------+
| Property, plant and equipment –   |   | 734      | 688      | 699      |
| net                               |   | ,665,597 | ,116,275 | ,261,927 |
+-----------------------------------+---+----------+----------+----------+
| Negative goodwill on              |   | (14,     | (9,      | (6,      |
| consolidation                     |   | 356,262) | 198,019) | 368,304) |
+-----------------------------------+---+----------+----------+----------+
| Other non-current assets          |   | 7        | 6        | 5        |
|                                   |   | ,018,413 | ,531,084 | ,458,503 |
+-----------------------------------+---+----------+----------+----------+
| Total non-current assets          |   | 8,494    | 7,583    | 6,938    |
|                                   |   | ,454,796 | ,923,709 | ,880,294 |
+-----------------------------------+---+----------+----------+----------+
| TOTAL ASSETS                      |   | 8,635    | 7,720    | 7,067    |
|                                   |   | ,219,395 | ,478,542 | ,636,073 |
+-----------------------------------+---+----------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'     |   |          |          |          |
| EQUITY                            |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Current liabilities               |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Bank overdrafts and short-term  |   | 6        | 200      | 125      |
|   loans from                      |   | 0,000,00 | ,000,000 | ,000,000 |
|                                   |   |          |          |          |
|   financial institutions          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Trade accounts payable          |   | 33       | 26       | 27       |
|                                   |   | ,449,873 | ,654,389 | ,228,483 |
+-----------------------------------+---+----------+----------+----------+
|   Current portion of long-term    |   | 200      | 240      | 247      |
|   loans                           |   | ,000,000 | ,000,000 | ,500,000 |
+-----------------------------------+---+----------+----------+----------+
|   Amounts due to related          |   | 14       | 18       | 12       |
|   companies                       |   | ,232,964 | ,318,129 | ,168,584 |
+-----------------------------------+---+----------+----------+----------+
|   Other current liabilities       |   | 49       | 49       | 44       |
|                                   |   | ,403,198 | ,285,901 | ,974,759 |
+-----------------------------------+---+----------+----------+----------+
| Total current liabilities         |   | 357      | 534      | 456      |
|                                   |   | ,086,035 | ,258,419 | ,871,826 |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+

 

Company Balance Sheets (continued)

Unit : Baht

+----------------------------------+---+----------+----------+----------+
|                                  |   | The      |          |          |
|                                  |   | Company  |          |          |
|                                  |   | Only     |          |          |
+----------------------------------+---+----------+----------+----------+
|                                  |   | 2004     | 2003     | 2002     |
+----------------------------------+---+----------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'    |   |          |          |          |
| EQUITY                           |   |          |          |          |
|                                  |   |          |          |          |
| (continued)                      |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
| Non-Current liabilities          |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
| Long-term loans from related     |   | 937      | 719      | 193      |
| companies                        |   | ,550,000 | ,600,000 | ,000,000 |
+----------------------------------+---+----------+----------+----------+
| Long-term loans - net of current |   | 200      | 400      | 640      |
| portion                          |   | ,000,000 | ,000,000 | ,000,000 |
+----------------------------------+---+----------+----------+----------+
| Other non-current liabilities    |   | 10       | 8        | 8        |
|                                  |   | ,817,128 | ,588,575 | ,038,062 |
+----------------------------------+---+----------+----------+----------+
| Total non-current liabilities    |   | 1,148    | 1,128    | 841      |
|                                  |   | ,367,128 | ,188,575 | ,038,062 |
+----------------------------------+---+----------+----------+----------+
| TOTAL LIABILITIES                |   | 1,505    | 1,662    | 1,297    |
|                                  |   | ,453,163 | ,446,944 | ,909,888 |
+----------------------------------+---+----------+----------+----------+
| Shareholders' equity             |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Share capital – registered,    |   | 846      | 846      | 846      |
|   issued and fully paid-up,      |   | ,701,430 | ,701,430 | ,701,430 |
|                                  |   |          |          |          |
|   84,670,143 ordinary shares of  |   |          |          |          |
|   Baht 10 each                   |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Premium on ordinary shares     |   | 2,062    | 2,062    | 2,062    |
|                                  |   | ,460,582 | ,460,582 | ,460,582 |
+----------------------------------+---+----------+----------+----------+
|   Capital reserve                |   | 634      | 634      | 634      |
|                                  |   | ,698,720 | ,698,720 | ,698,720 |
+----------------------------------+---+----------+----------+----------+
|   Revaluation surplus            |   | 1,985    | 1,592    | 1,669    |
|                                  |   | ,987,993 | ,803,768 | ,833,202 |
+----------------------------------+---+----------+----------+----------+
|   Unrealised gain on available   |   | 393,328  | 38       | -        |
|   for sale securities            |   |          | ,349,480 |          |
+----------------------------------+---+----------+----------+----------+
|   Currency translation           |   | 84       | 84       | 88       |
|   differences                    |   | ,829,377 | ,371,915 | ,602,459 |
+----------------------------------+---+----------+----------+----------+
|   Retained earnings:             |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Appropriated – statutory       |   | 84       | 84       | 79       |
|   reserve                        |   | ,670,143 | ,670,143 | ,259,146 |
+----------------------------------+---+----------+----------+----------+
|   Unappropriated                 |   | 1,430    | 713      | 388      |
|                                  |   | ,024,659 | ,975,510 | ,170,646 |
+----------------------------------+---+----------+----------+----------+
|                                  |   | 1,514    | 798      | 467      |
|                                  |   | ,694,802 | ,645,653 | ,429,792 |
+----------------------------------+---+----------+----------+----------+
| Total shareholders' equity       |   | 7,129    | 6,058    | 5,769    |
|                                  |   | ,766,232 | ,031,548 | ,726,185 |
+----------------------------------+---+----------+----------+----------+
| TOTAL LIABILITIES AND            |   | 8,635    | 7,720    | 7,067    |
| SHAREHOLDERS' EQUITY             |   | ,219,395 | ,478,542 | ,636,073 |
+----------------------------------+---+----------+----------+----------+

 

Company Statement of Cash Flows 

Unit : Baht

  ------------------------------------- --------------- --------------- ---------------
                                        The Company                     
                                        Only                            

                                        2004            2003            2002

  Cash flows from (used in) operating                                   
  activities                                                            

  Net cash inflow (outflow) from        (14,275,943)    (18,554,196)    218,937,192
  operating activities                                                  

  Cash flows from (used in) investing                                   
  activities                                                            

  Net cash inflow (outflow) from        350,382,420     (152,288,532)   (470,644,951)
  investing activities                                                  

  Cash flows from (used in) financing                                   
  activities                                                            

  Net cash inflow (outflow) from        (331,390,286)   184,759,714     241,649,285
  financing activities                                                  

  Net increase (decrease) in cash and   4,716,191       13,916,986      (10,058,474)
  cash equivalents                                                      

  Cash and cash equivalents at the      40,586,887      26,669,901      36,728,375
  beginning of the year                                                 

  Cash and cash equivalents at the end  45,303,078      40,586,887      26,669,901
  of the year                                                           

                                                                        

                                                                        

                                                                        
  ------------------------------------- --------------- --------------- ---------------

12.1.3 Financial ratios of the company and its subsidiaries

+------------------------------+-----+--------+---+--------+---+----------+---+
| CONSOLIDATED FINANCIAL       |     |        |   |        |   |          |   |
| RATIOS                       |     |        |   |        |   |          |   |
|                              |     |        |   |        |   |          |   |
| LTD.                         |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     | Consol |   |        |   |          |   |
|                              |     | idated |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     | 2004   |   | 2003   |   | 2002     |   |
|                              |     |        |   |        |   |          |   |
|                              |     |        |   | Re     |   | Restated |   |
|                              |     |        |   | stated |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Liquidity Ratio’s            |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Current Ratio                | Ti  | 1.40   |   | 1.01   |   | 0.93     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Quick Ratio                  | Ti  | 1.12   |   | 0.76   |   | 0.59     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Cash Flow From Operating     | Ti  | 0.81   |   | 0.66   |   | 0.64     |   |
| Activities Ratio             | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Receivables Turnover         | Ti  | 5.29   |   | 5.89   |   | 6.53     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Collection Period            | D   | 68.05  |   | 61.12  |   | 55.16    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Inventory Turnover           | Ti  | 16.60  |   | 16.07  |   | 16.23    |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Inventory Turnover Period    | D   | 21.69  |   | 22.40  |   | 22.18    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Accounts Payable Turnover    | Ti  | 11.28  |   | 14.04  |   | 14.02    |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Payment Period               | D   | 31.91  |   | 25.64  |   | 25.67    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Cash Cycle                   | D   | 57.82  |   | 57.88  |   | 51.67    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Profitability Ratio’s        |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Gross Profit Margin          | %   | 35.00  |   | 31.76  |   | 31.08    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Profit Margin from           | %   | 31.17  |   | 26.07  |   | 16.20    |   |
| Operations                   |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Net Profit Margin            | %   | 22.36  |   | 16.36  |   | 5.32     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Equity             | %   | 12.25  |   | 7.66   |   | 2.38     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Efficiency Ratio’s           |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Total Assets       | %   | 9.71   |   | 5.81   |   | 1.85     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Fixed Assets       | %   | 15.50  |   | 10.31  |   | 5.59     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Asset Turnover               | Ti  | 0.43   |   | 0.36   |   | 0.35     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+

+----------------------------+-----+----------+---+----------+---+----------+---+
| CONSOLIDATED FINANCIAL     |     |          |   |          |   |          |   |
| RATIOS (Continued)         |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | Cons     |   |          |   |          |   |
|                            |     | olidated |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | 2004     |   | 2003     |   | 2002     |   |
|                            |     |          |   |          |   |          |   |
|                            |     |          |   | Restated |   | Restated |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Financial Policy Ratio’s   |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Debt To Equity             | Ti  | 0.22     |   | 0.31     |   | 0.32     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Interest Coverage          | Ti  | 31.27    |   | 18.13    |   | 12.30    |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Payout Ratio (Cash Basis)  | Ti  | 1.30     |   | 0.97     |   | 0.33     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Payout Ratio      | %   | 19.13    |   | 33.83    |   | 249.77   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Share value’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Book Value Per Share       | B   | 92.13    |   | 78.60    |   | 75.78    |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Earnings (loss) Per Share  | B   | 10.46    |   | 5.91     |   | 1.80     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Per Share         | B   | 2.00     |   | 2.00     |   | 4.50     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Growth rate’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Assets               | %   | 9.08     |   | 2.59     |   | 6.23     |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Liabilities          | %   | (17.15)  |   | (0.89)   |   | 28.16    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Revenues             | %   | 29.43    |   | 6.63     |   | (4.40)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Expenses             | %   | 20.91    |   | (5.34)   |   | 12.07    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Net Income (Loss)          | %   | 76.88    |   | 228.13   |   | (52.97)  |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+

+----------------------------+-----+---------+---+---------+---+---------+---+---+
| COMPANY FINANCIAL RATIOS   |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | Company |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | 2004    |   | 2003    |   | 2002    |   |   |
|                            |     |         |   |         |   |         |   |   |
|                            |     |         |   | R       |   | R       |   |   |
|                            |     |         |   | estated |   | estated |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Liquidity Ratio’s          |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Current Ratio              | Ti  | 0.39    |   | 0.26    |   | 0.28    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Quick Ratio                | Ti  | 0.30    |   | 0.20    |   | 0.20    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Flow From Operating   | Ti  | (0.03)  |   | (0.04)  |   | 0.61    |   |   |
| Activities Ratio           | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Receivables Turnover       | Ti  | 6.82    |   | 5.50    |   | 5.52    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Collection Period          | D   | 52.80   |   | 65.47   |   | 65.19   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover         | Ti  | 27.99   |   | 28.06   |   | 27.32   |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover Period  | D   | 12.86   |   | 12.83   |   | 13.18   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Accounts Payable Turnover  | Ti  | 9.83    |   | 9.60    |   | 9.73    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Payment Period             | D   | 36.62   |   | 37.51   |   | 37.02   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Cycle                 | D   | 29.04   |   | 40.79   |   | 41.35   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profitability Ratio’s      |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Gross Profit Margin        | %   | 33.37   |   | 32.25   |   | 35.08   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profit Margin from         | %   | (0.87)  |   | (2.21)  |   | 2.73    |   |   |
| Operations                 |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Net Profit Margin          | %   | 188.80  |   | 120.47  |   | 33.63   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Equity           | %   | 13.43   |   | 8.46    |   | 2.71    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Efficiency Ratio’s         |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Total Assets     | %   | 10.83   |   | 6.77    |   | 2.34    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Fixed Assets     | %   | 129.49  |   | 77.28   |   | 25.90   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Asset Turnover             | Ti  | 0.06    |   | 0.06    |   | 0.07    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+

+----------------------------+-----+----------+---+----------+---+----------+---+
| COMPANY FINANCIAL RATIOS   |     |          |   |          |   |          |   |
| (Continued)                |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | Company  |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | 2004     |   | 2003     |   | 2002     |   |
|                            |     |          |   |          |   |          |   |
|                            |     |          |   | Restated |   | Restated |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Financial Policy Ratio’s   |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Debt To Equity             | Ti  | 0.21     |   | 0.27     |   | 0.22     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Interest Coverage          | Ti  | 0.72     |   | 0.70     |   | 5.06     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Payout Ratio (Cash Basis)  | Ti  | (0.03)   |   | (0.03)   |   | 0.12     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Payout Ratio      | %   | 19.13    |   | 33.83    |   | 249.77   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Share value’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Book Value Per Share       | B   | 84.21    |   | 71.55    |   | 68.14    |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Earnings (loss) Per Share  | B   | 10.46    |   | 5.91     |   | 1.80     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Per Share         | B   | 2.00     |   | 2.00     |   | 4.50     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Growth rate’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Assets               | %   | 11.85    |   | 9.24     |   | 18.69    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Liabilities          | %   | (9.44)   |   | 28.09    |   | 178.11   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Revenues             | %   | 12.86    |   | (8.93)   |   | (16.33)  |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Expenses             | %   | 11.52    |   | (4.09)   |   | 9.42     |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Net Income (Loss)          | %   | 76.88    |   | 228.13   |   | (52.97)  |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+

12.2 Explanation and Analysis by management

  The net earnings attributable to the shareholders of Baht 885 million
  for the year ended 31st December 2004 was Baht 385 million, or 77%,
  higher than that of the prior year. The improvement in net earnings
  was due to an improved performance in both the hotel operations and
  property sales divisions, which are considered in more detail below,
  and was despite a Baht 45 million provision for property damaged by
  the Tsunami in the Indian Ocean which hit Phuket on the 26^(th)
  December 2004. However this was offset by the reversal of the
  provision for impairment in the value of a long-term investment
  amounting to Baht 41 million and was due to the carrying value of this
  investment increasing back to its original carrying value.

  Other points of note are that selling and administrative expenses
  increased by Baht 18 million as a result of a number of donations
  made, settlement of a legal issue and additional provision for tax and
  penalties assessed during the year. Offsetting this was the foreign
  exchange loss incurred which was Baht 14 million lower than last year.

  A decrease in the interest expense of Baht 17 million was due to the
  lower level of loans and the reduction in interest rates as compared
  to the prior year.

  Taxation was at a similar level to the prior year despite the increase
  in operating profits and this is due to profits on the property sales
  operations being offset by losses in these companies. This was not the
  case in the prior year.

  Net earnings of minority interest in subsidiaries increased by Baht 17
  million as compared to the prior year as a result of the increase in
  net income during the year for the respective hotel and gallery
  operations.

  For the reasons stated above, the company has shown an increase in net
  earnings as compared to the same period last year.

Hotel Operations

 (Unit: Million Baht)

  -------------- --------- --------- --------- --------- --------- --------
                 2004      %         2003      %         2002      %

                                                                   

  Revenues       2,804     100.0%    2,443     100.0%    2,557     100.0%

                                                                   

  Expenses       1,944     69.3%     1,742     71.3%     1,770     69.2%

                                                                   

  Operating      860       30.7%     701       28.7%     787       30.8%
  Profit                                                           

                                                                   
  -------------- --------- --------- --------- --------- --------- --------

  The Hotel operations revenues are Baht 361 million higher than the
  prior year. Expenses are Baht 202 million higher resulting in
  operating profit being Baht 159 million higher than last year. The
  operating profit margin of 30.7% is well above the last year level of
  28.7%. The main reasons for this are that all of the hotels have
  experienced significantly increased revenues as compared to last year
  which is due to the Iraq War and SARS adversely impacting the prior
  year performance. In 2004 the Bird Flu impacted the February and March
  performance and the Tsunami the December performance but no-where near
  to the same extent as the crises experienced last year. In the first
  half of 2003 crisis management resulted in operating costs being
  managed to an absolute minimum. With the increase in revenues in 2004,
  operating costs have also increased to more normalised levels.

  As 71% of the Group Revenue is generated by the Hotel Operations, the
  performance of the Rooms and Food and Beverage divisions, which
  comprise over 80% of the Hotel Operations revenue in 2004 are very
  important to the Groups revenue result.

  The revenue of the rooms division for the year ended 31 December 2004
  experienced a 16% increase as compared to the prior year and was
  driven by a 5% increase in the Baht average room rate, and a 10%
  increase in occupancies.

  Food and Beverage revenues increased by 17% in 2004 as compared to
  2003 and was due to a combination of higher occupancies and a higher
  capture rate of guests into the hotels restaurants.

  Property Sales and Timeshare Operation

  (Unit : Million Baht)

  -------------- --------- --------- --------- --------- --------- --------
                 2004      %         2003      %         2002      %

                                                                   

  Revenues       1,052     100.0%    541       100.0%    278       100.0%

                                                                   

  Expenses       562       53.4%     295       54.5%     182       65.5%

                                                                   

  Operating      490       46.6%     246       45.5%     96        34.5%
  Profit                                                           

                                                                   
  -------------- --------- --------- --------- --------- --------- --------

  Another significant area of revenue generation is Laguna Property
  Sales, both in direct villas, condominium, and house and land sales,
  and indirectly from the Laguna Holiday Club, a professional and
  successful time share operation. The Baht 478 million, or 130%
  increase in revenue from the Property Sales division was the back bone
  of the increased 2004 performance and was primarily due to the popular
  products of the Laguna Residences (19 sold in 2004) and Laguna
  Townhomes (30 sold in 2004) which have benefited from the buoyant
  property market in Phuket this year. This is well above the 15 Laguna
  Residences and 9 Laguna Townhomes sold in 2003.

  The Laguna Holiday Club also performed well in 2004 with revenues Baht
  33 million, or 19% higher than the prior year.

  Balance Sheet

  The main balance sheet items at 31 December 2004 are as follows:

+-----------------------------+---------+--------------+--------------+
|                             | Note    | 31 December  | 31 December  |
|                             |         | 2004         | 2003         |
|                             |         |              |              |
|                             |         | Baht 000     | Baht 000     |
+-----------------------------+---------+--------------+--------------+
| Cash, cash equivalents and  | 1       | 556,725      | 428,802      |
| fixed deposits              |         |              |              |
+-----------------------------+---------+--------------+--------------+
| Trade accounts receivable   | 2       | 858,137      | 586,483      |
+-----------------------------+---------+--------------+--------------+
| Other investments           | 3       | 219,319      | 216,685      |
+-----------------------------+---------+--------------+--------------+
| Property, equipment and     | 4       | 7,347,852    | 6,986,075    |
| land                        |         |              |              |
+-----------------------------+---------+--------------+--------------+
| Property Development Cost   | 5       | 141,365      | 121,553      |
+-----------------------------+---------+--------------+--------------+
| Loans from banks            | 6       | 760,000      | 1,220,000    |
+-----------------------------+---------+--------------+--------------+
|                             |         |              |              |
+-----------------------------+---------+--------------+--------------+

  The main points of note in regard to the Balance Sheet movements in
  the year ended 31 December 2004 are:

1.  Main movements are explained in the commentary on Cash Flows below,

2.  The increase in accounts receivable balances is due to an increase
    in the Property Sales receivables of Baht 267 million due to the
    significantly higher revenue from this division and the revenue
    recognition policy relating land and house sales. The ageing of all
    debts has improved compared to last year.

3.  Other investments increased in 2004 due to the write back of the
    provision for diminution in value in Tropical Resorts Limited of
    Baht 41 million which was offset by the reduction in share price of
    Thai Wah Public Company Limited which is marked to market.

4.  The increase in property, plant and equipment is due to the
    revaluation of land and buildings in 2004 and fixed asset additions
    being partially offset by the depreciation charge for the year.

5.  The increase in Property Development Cost in 2004 is due to the
    higher level of activity in the Property Sales division this year.

6.  Long term loans of Baht 320 million and short-term loans of Baht 150
    million have been repaid from year to date cash flow. A long term
    loan of Baht 10 million was drawn down in 2004.

Cash Flows

The cash and cash equivalents of Baht 557 million at 31 December 2004
represented a Baht 128 million increase as compared to 31 December 2003.
The main components of the cash generated during the year are as
follows:

-   Net cash generated from operations amounted to Baht 1,049 million
    and is largely a function of net earnings for the year adjusted for
    depreciation and working capital movements.

-   Expenditure on fixed assets amounted to Baht 218 million with no
    other significant investments made in the year.

-   A dividend of two Baht was paid during 2004.

-   Scheduled loan repayments of Baht 320 million were made in 2004 and
    short-term loans of Baht 150 million were repaid.

Commentary on Consolidated Financial Ratios

Liquidity ratios

-   Current ratio – this is higher in 2004 due to the higher cash
    balances at 31 December 2004 and the increase in trade accounts
    receivable primarily due to the amounts owing by property sales
    customers. Current liabilities decreased due largely to the
    repayment of short-tem loans which were partially offset by the
    higher trade accounts payable and other current liabilities related
    to the increase in construction activity.

-   Quick ratio – significantly improved position in 2004 as compared to
    2003 due to the higher cash and accounts receivable balances.

-   Cash flow from operating activities – this is higher than last year
    due to the higher profits which resulted in higher Cash Flow from
    Operating Activities.

-   Receivable turnover – lower turnover due to trade receivables
    increasing at a rate higher than the increase in turnover. This is
    due to sales of property providing one year credit to customers
    before full settlement is required.

-   Collection period –the period is higher due to trade receivables
    increasing at a rate higher than the increase in turnover. This is
    due to sales of property providing one year credit to customers
    before full settlement is required.

-   Inventory turnover – similar to last years ratio with inventories
    being well controlled by the hotel and retail operations.

-   Inventory turnover period – similar to last years ratio with
    inventories being well controlled by the hotel and retail
    operations.

-   Accounts payable turnover – the trend is higher as compared to the
    prior year and is due to the increase in amounts owing to
    construction related creditors which is in line with the increase in
    construction activity.

-   Payment period – the trend is higher as compared to the prior year
    and is due to the increase in amounts owing to construction related
    creditors which is in line with the increase in construction
    activity.

-   Cash cycle – trend is consistent with the prior year.

Profitability ratios

-   Gross profit margin – trend is well above the prior year and is due
    to the increase in revenues in the hotel operations of which the
    costs are predominantly fixed. The property sales division also
    achieved a higher gross margin than the prior year.

-   Profit margin from operations – significant improvement as compared
    to last year is due to the better economic environment being
    experienced in 2004, the excellent performance of the property sales
    division and the one-off write back of the carrying value in the
    investment in Tropical Resorts Limited.

-   Net profit margin – significant improvement as compared to last year
    is due to the better economic environment being experienced in 2004,
    the excellent performance of the property sales division and the
    one-off write back of the carrying value in the investment in
    Tropical Resorts Limited.

-   Return on equity – significant improvement as compared to last year
    is due to the better economic environment being experienced in 2004,
    the excellent performance of the property sales division and the
    one-off write back of the carrying value in the investment in
    Tropical Resorts Limited.

Efficiency ratios

-   Return on total assets – the better position is due to the higher
    net earnings for the year in 2004 and this is despite the increase
    in the carrying value of property plant and equipment following the
    revaluation during 2004.

-   Return on fixed assets – the better position is due to the higher
    net earnings for the year in 2004 and this is despite the increase
    in the carrying value of property plant and equipment following the
    revaluation during 2004.

Financial policy ratios

-   Debt to equity – this ratio is significantly lower than the prior
    year due to the reduction in borrowings and an increase in equity
    due to higher earnings and the revaluation of property plant and
    equipment.

-   Interest cover – a significant improvement on the prior year which
    is a combination of higher cash flow from operations coupled with
    the lower interest charge that has resulted from lower loan balances
    and lower interest rates.

-   Pay-out ratio (cash) – the significantly better position is a result
    of an increase in operating cash flows and is despite an increase in
    loan repayments, capital and investment expenditure as compared to
    the prior year.

-   Dividend pay-out ratio – the Board of Directors have proposed a
    dividend of Baht 2.00 per share for the 2004 financial year, but at
    the time of this report being published it had not been confirmed.