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 2007
  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 2007

  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) Company Limited that were audited by other auditors. As at
  31 December 2007 and 2006, these subsidiaries had total assets of Baht
  1,846.6 and Baht 2,145.5 million, respectively and total revenues for
  the years then ended of Baht 420.8 million and Baht 441.8 million,
  respectively. (2006: three subsidiaries, Laguna Beach Club Limited,
  Laguna (1) Company Limited and Lijiang Banyan Tree Hotel Limited).

  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 2007 and stated that the financial
  statements presented fairly the financial position of the Company in
  conformity with generally accepted accounting principles. In addition,
  the auditors draw attention to the matter, effective 1 January 2007,
  the Company changed its accounting policy for recording investments in
  subsidiaries and associates in the separate financial statements from
  the equity method to the cost method. The Company has thus restated
  the separate financial statements as at 31 December 2006 and for the
  year then ended to reflect this accounting change.

  For the year ended 31 December 2006

  In summary, a clean audit report was issued.

  Reference was made to three subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited, Laguna
  (1) Company Limited and Lijiang Banyan Tree Hotel Company Limited that
  were audited by other auditors. The Company’s financial statements
  included investments in these subsidiaries as at 31 December 2006 of
  Baht 412.4 million, accounted for under the equity method, and the
  share of loss from these subsidiaries for the year then ended amounted
  to Baht 47.4 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 2006 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 2005

  In summary, a clean audit report was issued.

  Reference was made to three subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited, Laguna
  (1) Company Limited and Lijiang Banyan Tree Hotel Company Limited that
  were audited by other auditors. The Company’s financial statements
  included investments in these subsidiaries as at 31 December 2005 of
  Baht 494.1 million, accounted for under the equity method, and the
  share of loss from these subsidiaries for the year then ended amounted
  to Baht 5.5 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 2005 and stated that the financial
  statements presented fairly the financial position of the Company in
  conformity with generally accepted accounting principles .

  Adoption of New Accounting Standards

  The Federation of Accounting Professions (FAP) has issued
  Notifications No. 9/2550, 38/2550 and 62/2550 regarding Accounting
  Standards. The notifications mandate the use of the following new
  Accounting Standards.

(a) Thai Accounting Standards which are Effective for the Current Year

TAS 44 (revised 2007) Consolidated Financial Statements and Separate
Financial Statements

TAS 45 (revised 2007) Investments in Associates

TAS 46 (revised 2007) Interests in Joint Ventures

These accounting standards became effective for the financial statements
for fiscal years beginning on or after 1 January 2007. Accordingly, the
Company changed its accounting policy for recording investments in
subsidiaries in the separate financial statements in order to comply
with the revised Thai Accounting Standards No. 44 and 45.

(b) Thai Accounting Standards which are not Effective for the Current
Year

TAS 25 (revised 2007) Cash Flow Statements

TAS 29 (revised 2007) Leases

TAS 31 (revised 2007) Inventories

TAS 33 (revised 2007) Borrowing Costs

TAS 35 (revised 2007) Presentation of Financial Statements

TAS 39 (revised 2007) Accounting Policies, Changes in Accounting
Estimates and Errors

TAS 41 (revised 2007) Interim Financial Reporting

TAS 43 (revised 2007) Business Combinations

TAS 49 (revised 2007) Construction Contracts

TAS 51 Intangible Assets

These accounting standards will become effective for the financial
statements for fiscal years beginning on or after 1 January 2008. The
management has assessed the effect of these revised accounting standards
and believes that they will not have any significant impact on the
financial statements for the year in which they are initially applied,
except for TAS 43 (revised 2007). TAS 43 (revised 2007) does not require
the Company to amortise goodwill acquired in a business combination.
Such goodwill is instead to be tested for impairment, and measured at
cost less any accumulated impairment losses. This accounting standard
applies to goodwill arising from a business combinations for which the
agreement date is on or after 1 January 2008. Previously recognised
goodwill can be accounted for prospectively, with the Company
discontinuing amortisation of the goodwill and instead testing for
impairment, as from the beginning of the first fiscal period starting on
or after 1 January 2008.

Change in Accounting Policy for Recording Investments in Subsidiaries
and Associates in the Separate Financial Statements.

On 1 January 2007, the Company changed its accounting policy for
recording investments in subsidiaries in the separate financial
statements from the equity method to the cost method, in compliance with
Accounting Standard No. 44 (Revised 2007) regarding “Consolidated
Financial Statements and Separate Financial Statements”, under which
investments in subsidiaries are to be presented in the separate
financial statements under the cost method.

In this regard, the Company has restated the previous period’s separate
financial statements as though the investments in the subsidiaries had
originally been recorded using the cost method. The change has the
effect of decreasing net income in the separate income statements for
the year ended 31 December 2007 by Baht 596 million (Baht 4.90 per
share) and increasing net income in separate income statements for the
year ended 31 December 2006 by Baht 241.6 million (Baht 2.85 per share).
The cumulative effect of the change in accounting policy has been
presented under the heading of “Cumulative effect of the change in
accounting policy for investments in subsidiaries” in the separate
statements of changes in shareholders’ equity.

Such change in accounting policy affects only the accounts related to
investments in subsidiaries in the Company’s separate financial
statements, with no effect to the consolidated financial statements.

Accounting Policies

  The financial statements have been prepared in accordance with
  accounting standards enunciated under the Accounting Profession Act
  B.E. 2547. The presentation of the financial statements has been made
  in compliance with the stipulations of the Notification of the
  Department of Business Development dated 14 September 2001, issued
  under the Accounting Act B.E. 2543.

  The financial statements have been prepared on a historical cost basis
  except where otherwise disclosed in the accounting policies.

  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.

  (b) Revenue from Property Development Operations

-   Revenue from the Sale of Land and Houses

  Revenues from the 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 based upon estimations
  performed by qualified engineers. Revenue is recognised 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.

  Where properties are sold to non-Thais, the land is sold under a
  long-term lease agreement comprising an initial term of thirty years
  with an option to extend for two successive periods of thirty years
  each, without any additional consideration to be paid in addition to
  the sum of the rental paid for the initial lease term. These long-term
  lease agreements also contain a further option that provides if Thai
  law permits non-Thais to own land on a freehold basis, the lessor
  shall consent to sell the land to the lessee in return for a token
  payment. Consequently, long-term leases are recognised as sales of
  land for accounting purposes in accordance with the principle of
  applying substance over form.

  Revenue from the sale of land is recognised when the ownership has
  been transferred to buyers or all payments are received from the
  buyers.

-   Revenue from Sales of Furniture

  Revenue from sales of furniture is recognised when furniture is
  completely installed.

-   Revenue from Sale of Holiday Club Memberships

  Revenue from the sale of holiday club memberships is recognised when a
  legally binding contract has been signed and at least twenty-five
  percent of the contract price has been received.

  (c) Revenues from Rental and Services

  Rental income is recognised over the lease period. Service revenue is
  recognised when services have been rendered taking into account the
  stage of completion.

  (d) Interest income

  Interest income is recognised on an accrual basis based on the
  effective interest rate.

    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 income statements according to the percentage of completion
    basis.

    Cash and Cash Equivalents

    Cash and cash equivalents consist of cash in hand, cash at bank, and
    all highly liquid investments with an original maturity of three
    months or less and not subject to withdrawal restrictions.

    Trade Accounts Receivable

  Trade accounts receivable are stated at the net realisable value.
  Allowance for doubtful accounts is provided for the estimated losses
  that may be incurred in collection of receivables. The allowance is
  generally based on collection experience and analysis of debtor aging.

    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.

    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.

  Allowance for diminution in inventory value is set up for old,
  obsolete, slow-moving or deteriorated inventories.

    Investments

(a) Investments in subsidiaries are accounted for in the separate
    financial statements using the cost method.

(b) Investments in associates are accounted for in the consolidated
    financial statements using the equity method.

    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. The fair value is based on the latest bid
  price of the last working day of the year as quoted on the Stock
  Exchange of Thailand. Changes in the value of investments are
  recognised as a separate item in shareholders’ equity under the
  caption of “Unrealised gain/loss on available-for-sale securities”
  until the investments are sold, when the changes are then included in
  determining income.

  Long-term investments in non-marketable equity securities, which the
  Company and subsidiaries classified as other investments, are stated
  at cost net of allowance for loss on diminution in value (if any).

  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 income statements.

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

  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) Operating Properties

  Operating properties which consist of land, buildings, fixtures and
  equipment of buildings are stated at cost/revalued amount less
  accumulated depreciation and allowance for loss on impairment of
  assets (if any). The Company and subsidiaries initially recorded land,
  buildings, fixtures and equipment of buildings at cost at the
  acquisition date, and are subsequently revalued by an independent
  professional 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 Development

  Assets other than operating properties are stated at cost less
  accumulated depreciation and allowance for loss on impairment of
  assets (if any).

  Differences arising from the revaluation are dealt with in the
  financial statements 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 income statements. 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 an
    expense in the income statements.

    Depreciation

  Depreciation of plant and equipment is calculated by reference to
  their costs or the revalued amounts on the straight-line basis over
  the following estimated useful lives:-

  ------------------------------------------- ------------------- --------
  Buildings and improvements                  10 – 50             years

  Furniture, fixtures and equipment           5 – 15              years

  Operating and office equipment              3 – 10              years

  Golf course                                 5 – 10              years

  Motor vehicles                              5                   years
  ------------------------------------------- ------------------- --------

  The depreciation is dealt with in the financial statements as follows:

-   Depreciation attributed to the original cost portion is included in
    determining income.

-   Depreciation attributed to the surplus portion is deducted against
    revaluation surplus in shareholders’ equity.

  The revaluation surplus can neither be offset against a deficit nor
  used for dividend payment.

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

    Leasehold Rights and Amortisation

  Leasehold rights are stated at cost less accumulated amortisation and
  any impairment losses (if any).

  Amortisation of leasehold rights is calculated by reference to their
  cost on a straight-line basis over the following leasehold periods:

  Land 40 years

  Hotel units 20 years

  The leasehold period is in line with the underlying lease of the
  respective assets.

  The amortisation is included in determining income.

    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 allowance for loss on impairment (if any). Amortization is
  calculated on a straight-line basis over 20 years for hotel operation
  acquisitions.

    Related Party Transactions

  Related parties comprise enterprises and individuals that control, or
  are controlled by, the Company, whether directly or indirectly, or
  which are under common control with the Company.

  They also include associated companies and individuals which directly
  or indirectly own a voting interest in the Company that gives them
  significant influence over the Company, key management personnel,
  directors and officers with authority in the planning and direction of
  the Company’s operations.

    Foreign Currencies

  Foreign currency transactions are translated into Baht at the exchange
  rates ruling on the transaction dates. Assets and liabilities
  denominated in foreign currencies outstanding at the balance sheet
  date are translated into Baht at the exchange rates ruling on the
  balance sheet date.

  Gains and losses on exchange are included in determining income.

    Impairment of Assets

  The Company assesses at each reporting date whether there is an
  indication that an asset may be impaired. If any such indication
  exists, the Company makes an estimate of the asset’s recoverable
  amount. Where the carrying amount of the asset exceeds its recoverable
  amount, the asset is considered impaired and is written down to its
  recoverable amount. Impairment losses are recognised in the income
  statements. An asset’s recoverable amount is the higher of fair value
  less costs to sell and value in use.

    Employee Benefits

  Salary, wages, bonuses and contributions to the social security fund
  and provident fund are recognised as expenses when incurred.

    Provisions

  Provisions are recognised when the Company has a present obligation as
  a result of a past event, it is probable that an outflow of resources
  embodying economic benefits will be required to settle the obligation,
  and a reliable estimate can be made of the amount of the obligation.

    Income Tax

  Income tax is provided for in the accounts based on the taxable
  profits determined in accordance with tax legislation.

    Forward Exchange Contracts

  Receivables and payables arising from forward exchange contracts are
  translated into Baht at the rates of exchange ruling on the balance
  sheet. Gains and losses from the translation are included in
  determining income.

    Use of Accounting Estimates

  Preparation of financial statements in conformity with generally
  accepted accounting principles requires management to make estimates
  and assumptions in certain circumstances, affecting amounts reported
  in these financial statements and related notes. Actual results could
  differ from these estimates.

  12.1.2 Summary of Financial Statements

Consolidated Statements of Earnings 

 Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | Cons     |          |          |
|                                   |   | olidated |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2007     | 2006     | 2005     |
+-----------------------------------+---+----------+----------+----------+
| REVENUES                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from hotel operations  |   | 4,122    | 3,589    | 2,305    |
|                                   |   | ,244,996 | ,806,682 | ,533,119 |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from property          |   | 2,819    | 2,327    | 750      |
|   development operations          |   | ,732,911 | ,817,464 | ,134,469 |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from office rental     |   | 67       | 80       | 100      |
|   operations                      |   | ,557,920 | ,764,484 | ,867,345 |
+-----------------------------------+---+----------+----------+----------+
|   Interest income                 |   | 65       | 26       | 8        |
|                                   |   | ,388,066 | ,797,803 | ,868,924 |
+-----------------------------------+---+----------+----------+----------+
|   Foreign exchange gain           |   | 9        | 87       | -        |
|                                   |   | ,226,816 | ,965,436 |          |
+-----------------------------------+---+----------+----------+----------+
|   Other income                    |   | 62       | 42       | 40       |
|                                   |   | ,230,319 | ,500,004 | ,474,916 |
+-----------------------------------+---+----------+----------+----------+
| Total revenues                    |   | 7,146    | 6,155    | 3,205    |
|                                   |   | ,381,028 | ,651,873 | ,878,773 |
+-----------------------------------+---+----------+----------+----------+
| EXPENSES                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Hotel operations expenses       |   | 3,217    | 3,015    | 2,158    |
|                                   |   | ,304,775 | ,567,942 | ,624,513 |
+-----------------------------------+---+----------+----------+----------+
|   Cost of property development    |   | 1,717    | 1,203    | 490      |
|   operations                      |   | ,105,850 | ,044,509 | ,644,966 |
+-----------------------------------+---+----------+----------+----------+
|   Cost of office rental           |   | 55       | 89       | 83       |
|   operations                      |   | ,467,537 | ,564,539 | ,186,990 |
+-----------------------------------+---+----------+----------+----------+
|   Selling and administrative      |   | 370      | 276      | 263      |
|   expenses                        |   | ,916,965 | ,793,278 | ,585,463 |
+-----------------------------------+---+----------+----------+----------+
|   Directors’ remuneration         |   | 4        | 5        | 8        |
|                                   |   | ,464,500 | ,494,000 | ,563,681 |
+-----------------------------------+---+----------+----------+----------+
|   Share of loss from investments  |   | 4        | -        | -        |
|   in associated company           |   | ,954,548 |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Foreign exchange loss           |   | -        | -        | 38       |
|                                   |   |          |          | ,804,420 |
+-----------------------------------+---+----------+----------+----------+
| Total expenses                    |   | 5,370    | 4,590    | 3,043    |
|                                   |   | ,214,175 | ,464,268 | ,410,033 |
+-----------------------------------+---+----------+----------+----------+
| Income before interest expenses   |   | 1,776    | 1,565    | 162      |
| and corporate income tax          |   | ,166,853 | ,187,605 | ,468,740 |
+-----------------------------------+---+----------+----------+----------+
| Interest expenses                 |   | (220,    | (202,    | (138,    |
|                                   |   | 658,513) | 055,630) | 102,723) |
+-----------------------------------+---+----------+----------+----------+
| Corporate income tax              |   | (188,    | (228,    | (46,     |
|                                   |   | 959,722) | 380,356) | 517,226) |
+-----------------------------------+---+----------+----------+----------+
| Income (loss) after corporate     |   | 1,366    | 1,134    | (22,     |
| income tax                        |   | ,548,618 | ,751,619 | 151,209) |
+-----------------------------------+---+----------+----------+----------+
| Net income attributable to        |   | (76,     | (21,     | (11,     |
| minority interest                 |   | 981,214) | 874,470) | 748,527) |
+-----------------------------------+---+----------+----------+----------+
| Net income (loss) before          |   | 1,289    | 1,112    | (33,     |
| extraordinary item                |   | ,567,404 | ,877,149 | 899,736) |
+-----------------------------------+---+----------+----------+----------+
| Extraordinary item : provision    |   |          |          |          |
| for impairment                    |   |          |          |          |
|                                   |   |          |          |          |
| of fixed assets, attributable to  |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| - Reversal of provision /         |   | -        | -        | 16       |
| (expenses)                        |   |          |          | ,230,665 |
+-----------------------------------+---+----------+----------+----------+
| - Minority interest               |   | -        | -        | (2,      |
|                                   |   |          |          | 110,670) |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | -        | -        | 14       |
|                                   |   |          |          | ,119,995 |
+-----------------------------------+---+----------+----------+----------+
| Net income (loss) for the year    |   | 1,289    | 1,112    | (19,     |
|                                   |   | ,567,404 | ,877,149 | 779,741) |
+-----------------------------------+---+----------+----------+----------+

Consolidated Statements of Earnings (continued)

Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | Cons     |          |          |
|                                   |   | olidated |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2007     | 2006     | 2005     |
+-----------------------------------+---+----------+----------+----------+
| Basic earnings (loss) per share   |   | 10.60    | 13.14    | (0.40)   |
|                                   |   |          |          |          |
|   Net income (loss) before        |   |          |          |          |
|   extraordinary item              |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Extraordinary item              |   | -        | -        | 0.17     |
+-----------------------------------+---+----------+----------+----------+
|   Net income (loss) for the year  |   | 10.60    | 13.14    | (0.23)   |
+-----------------------------------+---+----------+----------+----------+
|   Weighted average number of      |   | 121      | 84       | 84       |
|   ordinary shares (shares)        |   | ,671,226 | ,670,143 | ,670,143 |
+-----------------------------------+---+----------+----------+----------+

Consolidated Balance Sheets

Unit : Baht

+------------------------------------+---+----------+----------+----------+
|                                    |   | Cons     |          |          |
|                                    |   | olidated |          |          |
+------------------------------------+---+----------+----------+----------+
|                                    |   | 2007     | 2006     | 2005     |
+------------------------------------+---+----------+----------+----------+
| ASSETS                             |   |          |          |          |
+------------------------------------+---+----------+----------+----------+
| Current assets                     |   |          |          |          |
+------------------------------------+---+----------+----------+----------+
|   Cash and cash equivalents        |   | 1,533    | 1,087    | 669      |
|                                    |   | ,422,290 | ,923,520 | ,832,861 |
+------------------------------------+---+----------+----------+----------+
|   Trade accounts receivable – net  |   | 1,860    | 1,116    | 810      |
|                                    |   | ,905,010 | ,496,985 | ,689,304 |
+------------------------------------+---+----------+----------+----------+
|   Amounts due from related         |   | 108      | 33       | 24       |
|   companies                        |   | ,860,861 | ,256,763 | ,464,334 |
+------------------------------------+---+----------+----------+----------+
|   Inventories – net                |   | 158      | 158      | 144      |
|                                    |   | ,103,959 | ,314,368 | ,610,503 |
+------------------------------------+---+----------+----------+----------+
|   Property development cost – net  |   | 875      | 593      | 218      |
|                                    |   | ,919,886 | ,414,126 | ,519,056 |
+------------------------------------+---+----------+----------+----------+
|   Other current assets             |   | 340      | 421      | 211      |
|                                    |   | ,936,184 | ,283,706 | ,215,265 |
+------------------------------------+---+----------+----------+----------+
| Total current assets               |   | 4,878    | 3,410    | 2,079    |
|                                    |   | ,148,190 | ,689,468 | ,331,323 |
+------------------------------------+---+----------+----------+----------+
| Non-current assets                 |   |          |          |          |
+------------------------------------+---+----------+----------+----------+
|   Restricted deposits at financial |   | 2        | 2        | 2        |
|   institution                      |   | ,140,000 | ,140,000 | ,000,000 |
+------------------------------------+---+----------+----------+----------+
|   Long-term trade accounts         |   | 144      | 45       | 35       |
|   receivable                       |   | ,133,285 | ,168,708 | ,231,689 |
+------------------------------------+---+----------+----------+----------+
|   Investments in associated        |   | 269      | -        | -        |
|   companies                        |   | ,105,050 |          |          |
+------------------------------------+---+----------+----------+----------+
|   Other long-term investments      |   | 210      | 210      | 210      |
|                                    |   | ,399,386 | ,399,386 | ,399,386 |
+------------------------------------+---+----------+----------+----------+
|   Long-term loans to associated    |   | 298      | -        | -        |
|   company                          |   | ,707,673 |          |          |
+------------------------------------+---+----------+----------+----------+
|   Long-term loans to employees     |   | 34       | -        | -        |
|                                    |   | ,045,000 |          |          |
+------------------------------------+---+----------+----------+----------+
|   Property, plant and equipment –  |   | 18,667   | 10,477   | 9,485    |
|   net                              |   | ,452,348 | ,003,044 | ,355,231 |
+------------------------------------+---+----------+----------+----------+
|   Land awaiting development        |   | 432      | 639      | 639      |
|                                    |   | ,124,018 | ,390,200 | ,390,200 |
+------------------------------------+---+----------+----------+----------+
|   Leasehold rights - net           |   | 45       | 84       | 125      |
|                                    |   | ,068,721 | ,328,941 | ,805,115 |
+------------------------------------+---+----------+----------+----------+
|   Goodwill on consolidation        |   | 19       | 20       | 20       |
|                                    |   | ,794,338 | ,305,564 | ,816,789 |
+------------------------------------+---+----------+----------+----------+
|   Other non-current assets         |   | 12       | 18       | 19       |
|                                    |   | ,720,177 | ,396,056 | ,729,185 |
+------------------------------------+---+----------+----------+----------+
| Total non-current assets           |   | 20,135   | 11,497   | 10,538   |
|                                    |   | ,689,996 | ,131,899 | ,727,595 |
+------------------------------------+---+----------+----------+----------+
| TOTAL ASSETS                       |   | 25,013   | 14,907   | 12,618   |
|                                    |   | ,838,186 | ,821,367 | ,058,918 |
+------------------------------------+---+----------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'      |   |          |          |          |
| EQUITY                             |   |          |          |          |
+------------------------------------+---+----------+----------+----------+
| Current liabilities                |   |          |          |          |
+------------------------------------+---+----------+----------+----------+
|   Short-term loans from financial  |   | 862      | 637      | 590      |
|   institutions                     |   | ,000,000 | ,000,000 | ,000,000 |
+------------------------------------+---+----------+----------+----------+
|   Trade accounts payable           |   | 271      | 270      | 257      |
|                                    |   | ,473,155 | ,304,320 | ,011,277 |
+------------------------------------+---+----------+----------+----------+
|   Current portion of long-term     |   | 824      | 648      | 607      |
|   loans from financial             |   | ,914,000 | ,597,000 | ,929,000 |
|   institutions                     |   |          |          |          |
+------------------------------------+---+----------+----------+----------+
|   Amounts due to related companies |   | 71       | 96       | 63       |
|                                    |   | ,455,192 | ,695,820 | ,401,328 |
+------------------------------------+---+----------+----------+----------+
|   Corporate income tax payable     |   | 101      | 135      | 23       |
|                                    |   | ,015,266 | ,140,265 | ,111,420 |
+------------------------------------+---+----------+----------+----------+
|   Other current liabilities        |   | 1,404    | 985      | 749      |
|                                    |   | ,939,728 | ,778,540 | ,658,928 |
+------------------------------------+---+----------+----------+----------+
| Total current liabilities          |   | 3,535    | 2,773    | 2,291    |
|                                    |   | ,797,341 | ,515,945 | ,111,953 |
+------------------------------------+---+----------+----------+----------+

Consolidated Balance Sheets (continued)

Unit : Baht

+-------------------------------------+---+---------+----------+----------+
|                                     |   | Conso   |          |          |
|                                     |   | lidated |          |          |
+-------------------------------------+---+---------+----------+----------+
|                                     |   |   2007  |   2006   |   2005   |
+-------------------------------------+---+---------+----------+----------+
|                                     |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
| Non-current liabilities             |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
|   Long-term loans from related      |   | -       | 416      | 180      |
|   company                           |   |         | ,449,627 | ,252,794 |
+-------------------------------------+---+---------+----------+----------+
|   Long-term loans from financial    |   | 2,480,  | 3,080    | 2,486    |
|   institutions– net of current      |   | 347,743 | ,271,743 | ,858,743 |
|   portion                           |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
|   Other non-current liabilities     |   | 90,     | 55       | 70       |
|                                     |   | 600,118 | ,933,570 | ,726,964 |
+-------------------------------------+---+---------+----------+----------+
| Total non-current liabilities       |   | 2,570,  | 3,552    | 2,737    |
|                                     |   | 947,861 | ,654,940 | ,838,501 |
+-------------------------------------+---+---------+----------+----------+
| Total liabilities                   |   | 6,106,  | 6,326    | 5,028    |
|                                     |   | 745,202 | ,170,885 | ,950,454 |
+-------------------------------------+---+---------+----------+----------+
| Shareholders' equity                |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
|   Share capital                     |   | 2,116,  | 846      | 846      |
|                                     |   | 753,580 | ,701,430 | ,701,430 |
|   Registered                        |   |         |          |          |
|                                     |   |         |          |          |
|   211,675,358 ordinary shares of    |   |         |          |          |
|   Baht 10 each                      |   |         |          |          |
|                                     |   |         |          |          |
|   (31 December 2006 and 2005 :      |   |         |          |          |
|   84,670,143 ordinary shares of     |   |         |          |          |
|   Baht 10 each)                     |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
|   Issued and fully paid-up          |   | 1,666,  | 846      | 846      |
|                                     |   | 827,010 | ,701,430 | ,701,430 |
|   166,682,701 ordinary shares of    |   |         |          |          |
|   Baht 10 each                      |   |         |          |          |
|                                     |   |         |          |          |
|   (31 December 2006 and 2005 :      |   |         |          |          |
|   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 |
+-------------------------------------+---+---------+----------+----------+
|   Other surpluses                   |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
|   Capital reserve                   |   | 634,    | 634      | 634      |
|                                     |   | 698,720 | ,698,720 | ,698,720 |
+-------------------------------------+---+---------+----------+----------+
|   Revaluation surplus               |   | 9,869,  | 1,789    | 1,888    |
|                                     |   | 857,161 | ,995,216 | ,359,140 |
+-------------------------------------+---+---------+----------+----------+
|   Unrealised loss on                |   | (28,8   | (28,     | (28,     |
|   available-for-sale securities     |   | 56,095) | 856,095) | 856,095) |
+-------------------------------------+---+---------+----------+----------+
|   Translation adjustment            |   | 74,     | 72       | 104      |
|                                     |   | 347,437 | ,905,170 | ,869,520 |
+-------------------------------------+---+---------+----------+----------+
|   Retained earnings                 |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
|   Appropriated – statutory reserve  |   | 84,     | 84       | 84       |
|                                     |   | 670,143 | ,670,143 | ,670,143 |
+-------------------------------------+---+---------+----------+----------+
|   Unappropriated                    |   | 3,431,  | 2,353    | 1,240    |
|                                     |   | 673,827 | ,781,781 | ,904,632 |
+-------------------------------------+---+---------+----------+----------+
|                                     |   | 3,516,  | 2,438    | 1,325    |
|                                     |   | 343,970 | ,451,924 | ,574,775 |
+-------------------------------------+---+---------+----------+----------+
|   Equity attributable to Company’s  |   | 17,795, | 7,816    | 6,833    |
|   shareholders                      |   | 678,785 | ,356,947 | ,808,072 |
+-------------------------------------+---+---------+----------+----------+
|   Minority interest – equity        |   | 1,111,  | 765      | 755      |
|   attributable to                   |   | 414,199 | ,293,535 | ,300,392 |
|                                     |   |         |          |          |
|   minority shareholders of          |   |         |          |          |
|   subsidiaries                      |   |         |          |          |
+-------------------------------------+---+---------+----------+----------+
| Total shareholders' equity          |   | 18,907, | 8,581    | 7,589    |
|                                     |   | 092,984 | ,650,482 | ,108,464 |
+-------------------------------------+---+---------+----------+----------+
| TOTAL LIABILITIES AND SHAREHOLDERS' |   | 25,013, | 14,907   | 12,618   |
| EQUITY                              |   | 838,186 | ,821,367 | ,058,918 |
+-------------------------------------+---+---------+----------+----------+

Consolidated Statements of Cash Flows 

Unit : Baht

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

                                          2007              2006              2005

  Cash flows from (used in) operating                                         
  activities                                                                  

  Net cash inflow (outflow) from          1,111,672,778     1,266,266,024     257,859,277
  operating activities                                                        

  Cash flows from (used in) investing                                         
  activities                                                                  

  Net cash inflow (outflow) from          (1,024,867,730)   (1,751,888,370)   (1,012,035,992)
  investing activities                                                        

  Cash flows from (used in) financing                                         
  activities                                                                  

  Net cash inflow (outflow) from          358,693,722       903,713,005       867,284,709
  financing activities                                                        

  Net increase in cash and cash           445,498,770       418,090,659       113,107,994
  equivalents                                                                 

  Cash and cash equivalents at the        1,087,923,520     669,832,861       556,724,867
  beginning of the year                                                       

  Cash and cash equivalents at the end    1,533,422,290     1,087,923,520     669,832,861
  of the year                                                                 

                                                                              

                                                                              

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

 

Company Statements of Earnings

Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | The      |          |          |
|                                   |   | Company  |          |          |
|                                   |   | Only     |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2007     | 2006     | 2005     |
|                                   |   |          |          |          |
|                                   |   |          | (R       | (R       |
|                                   |   |          | estated) | estated) |
+-----------------------------------+---+----------+----------+----------+
| Revenues                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from hotel operations  |   | 538      | 475      | 288      |
|                                   |   | ,378,014 | ,512,469 | ,426,117 |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from property          |   | 961      | 4        | -        |
|   development operations          |   | ,034,521 | ,120,000 |          |
+-----------------------------------+---+----------+----------+----------+
|   Interest income                 |   | 89       | 49       | 51       |
|                                   |   | ,745,135 | ,732,344 | ,588,382 |
+-----------------------------------+---+----------+----------+----------+
|   Foreign exchange gain           |   | 38       | 98       | -        |
|                                   |   | ,360,363 | ,217,273 |          |
+-----------------------------------+---+----------+----------+----------+
| Other income                      |   | 321      | 1,475    | 79       |
|                                   |   | ,371,778 | ,526,539 | ,911,921 |
+-----------------------------------+---+----------+----------+----------+
| Total revenues                    |   | 1,948    | 2,103    | 419      |
|                                   |   | ,889,811 | ,108,625 | ,926,420 |
+-----------------------------------+---+----------+----------+----------+
| Expenses                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Hotel operations expenses       |   | 362      | 339      | 262      |
|                                   |   | ,177,924 | ,508,730 | ,959,971 |
+-----------------------------------+---+----------+----------+----------+
|   Cost of property development    |   | 487      | 21       | -        |
|   operations                      |   | ,530,269 | ,543,214 |          |
+-----------------------------------+---+----------+----------+----------+
|   Selling and administrative      |   | 293      | 236      | 212      |
|   expenses                        |   | ,246,053 | ,217,899 | ,347,633 |
+-----------------------------------+---+----------+----------+----------+
|   Directors’ remuneration         |   | 4        | 5        | 8        |
|                                   |   | ,464,500 | ,494,000 | ,563,681 |
+-----------------------------------+---+----------+----------+----------+
|   Foreign exchange loss           |   | -        | -        | 10       |
|                                   |   |          |          | ,670,416 |
+-----------------------------------+---+----------+----------+----------+
| Total expenses                    |   | 1,147    | 602      | 494      |
|                                   |   | ,418,746 | ,763,843 | ,541,701 |
+-----------------------------------+---+----------+----------+----------+
| Income before interest expenses   |   | 801      | 1,500    | (74,     |
| and corporate income tax          |   | ,471,065 | ,344,782 | 615,281) |
+-----------------------------------+---+----------+----------+----------+
| Interest expenses                 |   | (107,    | (145,    | (99,     |
|                                   |   | 928,485) | 819,995) | 406,674) |
+-----------------------------------+---+----------+----------+----------+
| Net income (loss) before          |   | 693      | 1,354    | (174,    |
| extraordinary item                |   | ,542,580 | ,524,787 | 021,955) |
+-----------------------------------+---+----------+----------+----------+
| Extraordinary item : provision    |   |          |          |          |
| for impairment                    |   |          |          |          |
|                                   |   |          |          |          |
| of fixed assets, attributable to  |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| - Reversal of provision /         |   | -        | -        | 8        |
| (expenses)                        |   |          |          | ,021,553 |
+-----------------------------------+---+----------+----------+----------+
| Net income (loss) for the year    |   | 693      | 1,354    | (166,    |
|                                   |   | ,542,580 | ,524,787 | 000,402) |
+-----------------------------------+---+----------+----------+----------+
| Basic earnings (loss) per share   |   | 5.70     | 16.00    | (2.06)   |
|                                   |   |          |          |          |
| Net income (loss) before          |   |          |          |          |
| extraordinary item                |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Extraordinary item                |   | -        | -        | 0.09     |
+-----------------------------------+---+----------+----------+----------+
| Net income (loss) earnings for    |   | 5.70     | 16.00    | (1.96)   |
| the year                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Weighted average number of      |   | 121      | 84       | 84       |
|   ordinary shares (shares)        |   | ,671,226 | ,670,143 | ,670,143 |
+-----------------------------------+---+----------+----------+----------+

Company Balance Sheets 

Unit : Baht

+-------------------------------------+----------+----------+----------+
|                                     | The      |          |          |
|                                     | Company  |          |          |
|                                     | Only     |          |          |
+-------------------------------------+----------+----------+----------+
|                                     | 2007     | 2006     | 2005     |
|                                     |          |          |          |
|                                     |          | (R       | (R       |
|                                     |          | estated) | estated) |
+-------------------------------------+----------+----------+----------+
| ASSETS                              |          |          |          |
+-------------------------------------+----------+----------+----------+
| Current Assets                      |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Cash and cash equivalents         | 855      | 103      | 53       |
|                                     | ,575,874 | ,113,656 | ,838,843 |
+-------------------------------------+----------+----------+----------+
| Trade accounts receivable – net     | 583      | 66       | 60       |
|                                     | ,538,199 | ,899,074 | ,367,391 |
+-------------------------------------+----------+----------+----------+
|   Amounts due from related          | 57       | 30       | 23       |
|   companies                         | ,037,880 | ,004,929 | ,163,063 |
+-------------------------------------+----------+----------+----------+
|   Inventories – net                 | 17       | 19       | 17       |
|                                     | ,135,024 | ,363,469 | ,427,685 |
+-------------------------------------+----------+----------+----------+
|   Property development cost – net   | 221      | 29       | -        |
|                                     | ,483,990 | ,639,622 |          |
+-------------------------------------+----------+----------+----------+
|   Other current assets              | 171      | 162      | 13       |
|                                     | ,150,301 | ,076,519 | ,902,109 |
+-------------------------------------+----------+----------+----------+
| Total current assets                | 1,905    | 411      | 168      |
|                                     | ,921,268 | ,097,269 | ,699,091 |
+-------------------------------------+----------+----------+----------+
| Non-current Assets                  |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Investment in subsidiaries        | 3,491    | 3,491    | 3,491    |
|                                     | ,257,814 | ,257,814 | ,767,814 |
+-------------------------------------+----------+----------+----------+
|   Other long-term investments       | 13       | 13       | 13       |
|                                     | ,674,001 | ,674,001 | ,674,001 |
+-------------------------------------+----------+----------+----------+
|   Long-term loans to subsidiaries   | 1,480    | 1,137    | 604      |
|                                     | ,600,000 | ,000,000 | ,500,000 |
+-------------------------------------+----------+----------+----------+
|   Long-term loans to employees      | 10       | -        | -        |
|                                     | ,803,000 |          |          |
+-------------------------------------+----------+----------+----------+
|   Property, plant and equipment –   | 2,001    | 824      | 790      |
|   net                               | ,248,648 | ,008,317 | ,343,036 |
+-------------------------------------+----------+----------+----------+
|   Land awaiting development         | 28       | -        | -        |
|                                     | ,638,873 |          |          |
+-------------------------------------+----------+----------+----------+
|   Other non-current assets          | 6        | 5        | 6        |
|                                     | ,863,477 | ,900,799 | ,601,116 |
+-------------------------------------+----------+----------+----------+
| Total non-current assets            | 7,033    | 5,471    | 4,906    |
|                                     | ,085,813 | ,840,931 | ,885,967 |
+-------------------------------------+----------+----------+----------+
| TOTAL ASSETS                        | 8,939    | 5,882    | 5,075    |
|                                     | ,007,081 | ,938,200 | ,585,058 |
+-------------------------------------+----------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'       |          |          |          |
| EQUITY                              |          |          |          |
+-------------------------------------+----------+----------+----------+
| Current liabilities                 |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Short-term loans from financial   | 470      | 415      | 397      |
|   institutions                      | ,000,000 | ,000,000 | ,000,000 |
+-------------------------------------+----------+----------+----------+
|   Trade accounts payable            | 33       | 34       | 42       |
|                                     | ,420,740 | ,760,668 | ,553,474 |
+-------------------------------------+----------+----------+----------+
|   Current portion of long-term      | 233      | 140      | 280      |
|   loans from financial institutions | ,000,000 | ,000,000 | ,000,000 |
+-------------------------------------+----------+----------+----------+
|   Amounts due to related companies  | 62       | 43       | 15       |
|                                     | ,219,706 | ,141,178 | ,535,529 |
+-------------------------------------+----------+----------+----------+
|   Other current liabilities         | 284      | 108      | 69       |
|                                     | ,821,823 | ,467,067 | ,133,720 |
+-------------------------------------+----------+----------+----------+
| Total current liabilities           | 1,083    | 741      | 804      |
|                                     | ,462,269 | ,368,913 | ,222,723 |
+-------------------------------------+----------+----------+----------+
|                                     |          |          |          |
+-------------------------------------+----------+----------+----------+

Company Balance Sheets (continued)

Unit : Baht

+--------------------------------------+---------+---------+---------+
|                                      | The     |         |         |
|                                      | Company |         |         |
|                                      | Only    |         |         |
+--------------------------------------+---------+---------+---------+
|                                      | 2007    | 2006    | 2005    |
|                                      |         |         |         |
|                                      |         | (Re     | (Re     |
|                                      |         | stated) | stated) |
+--------------------------------------+---------+---------+---------+
|                                      |         |         |         |
+--------------------------------------+---------+---------+---------+
| Non-Current liabilities              |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Long-term loans from subsidiaries  | 1,040,  | 556,    | 890,    |
|                                      | 350,000 | 750,000 | 750,000 |
+--------------------------------------+---------+---------+---------+
|   Long-term loans from financial     | 399,    | 632,    | 772,    |
|   institutions – net of current      | 000,000 | 000,000 | 000,000 |
|   portion                            |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Other non current liabilities      | 5,      | 8,      | 8,      |
|                                      | 878,150 | 430,010 | 496,210 |
+--------------------------------------+---------+---------+---------+
| Total non-current liabilities        | 1,445,  | 1,197,  | 1,671,  |
|                                      | 228,150 | 180,010 | 246,210 |
+--------------------------------------+---------+---------+---------+
| Total liabilities                    | 2,528,  | 1,938,  | 2,475,  |
|                                      | 690,419 | 548,923 | 468,933 |
+--------------------------------------+---------+---------+---------+
| Shareholders' equity                 |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Share capital                      | 2,116,  | 846,    | 846,    |
|                                      | 753,580 | 701,430 | 701,430 |
|   Registered                         |         |         |         |
|                                      |         |         |         |
|   211,675,358 ordinary shares of     |         |         |         |
|   Baht 10 each                       |         |         |         |
|                                      |         |         |         |
|   (31 December 2006 and 2005 :       |         |         |         |
|   84,670,143 ordinary shares of      |         |         |         |
|                                      |         |         |         |
|   Baht 10 each)                      |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Issued and fully paid-up           | 1,666,  | 846,    | 846,    |
|                                      | 827,010 | 701,430 | 701,430 |
|   166,682,701 ordinary shares of     |         |         |         |
|   Baht 10 each                       |         |         |         |
|                                      |         |         |         |
|   (31 December 2006 and 2005 :       |         |         |         |
|   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 |
+--------------------------------------+---------+---------+---------+
|   Other surpluses                    |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Revaluation surplus                | 1,592,  | 428,    | 438,    |
|                                      | 542,225 | 607,642 | 859,278 |
+--------------------------------------+---------+---------+---------+
|   Unrealised loss on available for   | (10,1   | (10,1   | (10,1   |
|   sale securities                    | 75,999) | 75,999) | 75,999) |
+--------------------------------------+---------+---------+---------+
|   Retained earnings                  |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Appropriated – statutory reserve   | 84,     | 84,     | 84,     |
|                                      | 670,143 | 670,143 | 670,143 |
+--------------------------------------+---------+---------+---------+
|   Unappropriated                     | 1,013,  | 532,    | (822,3  |
|                                      | 992,701 | 125,479 | 99,309) |
+--------------------------------------+---------+---------+---------+
|                                      | 1,098,  | 616,    | (737,7  |
|                                      | 662,844 | 795,622 | 29,166) |
+--------------------------------------+---------+---------+---------+
| Total shareholders' equity           | 6,410,  | 3,944,  | 2,600,  |
|                                      | 316,662 | 389,277 | 116,125 |
+--------------------------------------+---------+---------+---------+
| TOTAL LIABILITIES AND SHAREHOLDERS'  | 8,939,  | 5,882,  | 5,075,  |
| EQUITY                               | 007,081 | 938,200 | 585,058 |
+--------------------------------------+---------+---------+---------+

 Company Statements of Cash Flows 

Unit : Baht

+-------------------------------------+----------+----------+----------+
|                                     | The      |          |          |
|                                     | Company  |          |          |
|                                     | Only     |          |          |
+-------------------------------------+----------+----------+----------+
|                                     | 2007     | 2006     | 2005     |
|                                     |          |          |          |
|                                     |          | (R       | (R       |
|                                     |          | estated) | estated) |
+-------------------------------------+----------+----------+----------+
| Cash flows from (used in) operating |          |          |          |
| activities                          |          |          |          |
+-------------------------------------+----------+----------+----------+
| Net cash inflow (outflow) from      | 193      | 1,258    | (96,     |
| operating activities                | ,886,391 | ,893,505 | 716,120) |
+-------------------------------------+----------+----------+----------+
| Cash flows from (used in) investing |          |          |          |
| activities                          |          |          |          |
+-------------------------------------+----------+----------+----------+
| Net cash inflow (outflow) from      | (448,    | (613,    | (667,    |
| investing activities                | 474,395) | 618,692) | 607,829) |
+-------------------------------------+----------+----------+----------+
| Cash flows from (used in) financing |          |          |          |
| activities                          |          |          |          |
+-------------------------------------+----------+----------+----------+
| Net cash inflow (outflow) from      | 1,007    | (596,    | 772      |
| financing activities                | ,050,222 | 000,000) | ,859,714 |
+-------------------------------------+----------+----------+----------+
| Net increase in cash and cash       | 752      | 49       | 8        |
| equivalents                         | ,462,218 | ,274,813 | ,535,765 |
+-------------------------------------+----------+----------+----------+
| Cash and cash equivalents at the    | 103      | 53       | 45       |
| beginning of the year               | ,113,656 | ,838,843 | ,303,078 |
+-------------------------------------+----------+----------+----------+
| Cash and cash equivalents at the    | 855      | 103      | 53       |
| end of the year                     | ,575,874 | ,113,656 | ,838,843 |
+-------------------------------------+----------+----------+----------+
|                                     |          |          |          |
+-------------------------------------+----------+----------+----------+
|                                     |          |          |          |
+-------------------------------------+----------+----------+----------+
|                                     |          |          |          |
+-------------------------------------+----------+----------+----------+

  12.1.3 Financial Ratios of the Company and Its Subsidiaries

  ------------------------------- ------- -------------- -- --------- -- ---------- --
  CONSOLIDATED FINANCIAL RATIOS                                                     

                                          Consolidated                              

                                          2007              2006         2005       

  Liquidity Ratios                                                                  

  Current Ratio                   Times   1.38              1.23         0.91       

  Quick Ratio                     Times   0.96              0.79         0.65       

  Cash Flow From Operating        Times   0.35              0.50         0.14       
  Activities Ratio                                                                  

  Receivables Turnover            Times   4.67              6.14         3.75       

  Collection Period               Days    77.09             58.63        96.00      

  Inventory Turnover              Times   20.34             19.91        15.86      

  Inventory Turnover Period       Days    17.70             18.08        22.70      

  Accounts Payable Turnover       Times   11.88             11.44        9.32       

  Payment Period                  Days    30.30             31.47        38.63      

  Cash Cycle                      Days    64.48             45.24        80.07      

                                                                                    

  Profitability Ratios                                                              

  Gross Profit Margin             %       28.81             28.18        13.43      

  Profit Margin from Operations   %       25.34             26.09        5.15       

  Net Profit Margin               %       18.05             18.08        (0.62)     

  Return On Equity                %       9.38              13.76        (0.26)     

                                                                                    

  Efficiency Ratios                                                                 

  Return On Total Assets          %       6.46              8.09         (0.18)     

  Return On Fixed Assets          %       10.93             14.12        3.67       

  Asset Turnover                  Times   0.36              0.45         0.29       

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

  ---------------------------- ------- -------------- -- ---------- -- ---------- --
  CONSOLIDATED FINANCIAL                                                          
  RATIOS (Continued)                                                              

                                       Consolidated                               

                                       2007              2006          2005       

  Financial Policy Ratios                                                         

  Debt To Equity               Times   0.32              0.74          0.66       

  Interest Coverage            Times   7.14              7.78          3.52       

  Payout Ratio (Cash Basis)    Times   0.62              0.52          0.05       

  Dividend Payout Ratio        %       16.41             -             (856.13)   

                                                                                  

  Share value                                                                     

  Book Value Per Share         Baht    113.43            101.35        89.63      

  Earnings (loss) Per Share    Baht    10.60             13.14         (0.23)     

  Dividend Per Share           Baht    2.80              2.50          -          

                                                                                  

  Growth rate                                                                     

  Total Assets                 %       67.79             18.15         32.68      

  Total Liabilities            %       (3.47)            25.80         194.19     

  Total Revenues               %       16.09             92.01         (19.03)    

  Total Expenses               %       16.99             50.83         10.35      

  Net Income (Loss)            %       15.88             5,726.35      (102.23)   

                                                                                  

                                                                                  

                                                                                  

                                                                                  

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

+----------------------------+-----+---------+---+---------+---+---------+---+---+
| COMPANY FINANCIAL RATIOS   |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | Company |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | 2007    |   | 2006    |   | 2005    |   |   |
|                            |     |         |   |         |   |         |   |   |
|                            |     |         |   | (Re     |   | (Re     |   |   |
|                            |     |         |   | stated) |   | stated) |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Liquidity Ratios           |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Current Ratio              | Ti  | 1.76    |   | 0.55    |   | 0.21    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Quick Ratio                | Ti  | 1.33    |   | 0.23    |   | 0.14    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Flow From Operating   | Ti  | 0.21    |   | 1.63    |   | (0.17)  |   |   |
| Activities Ratio           | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Receivables Turnover       | Ti  | 4.58    |   | 7.32    |   | 4.62    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Collection Period          | D   | 78.54   |   | 49.18   |   | 77.98   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover         | Ti  | 19.85   |   | 18.46   |   | 17.95   |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover Period  | D   | 18.14   |   | 19.51   |   | 20.06   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Accounts Payable Turnover  | Ti  | 10.62   |   | 8.78    |   | 6.92    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Payment Period             | D   | 33.89   |   | 40.99   |   | 52.03   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Cycle                 | D   | 62.79   |   | 27.69   |   | 46.01   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profitability Ratios       |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Gross Profit Margin        | %   | 43.33   |   | 24.72   |   | 8.83    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profit Margin from         | %   | 53.45   |   | 312.81  |   | (25.87) |   |   |
| Operations                 |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Net Profit Margin          | %   | 35.59   |   | 64.41   |   | (39.53) |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Equity           | %   | 13.40   |   | 41.39   |   | (6.00)  |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Efficiency Ratios          |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Total Assets     | %   | 9.36    |   | 24.72   |   | (3.49)  |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Fixed Assets     | %   | 51.53   |   | 171.38  |   | (16.95) |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Asset Turnover             | Ti  | 0.26    |   | 0.38    |   | 0.09    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+

+----------------------------+-----+---------+---+---------+---+---------+---+
| COMPANY FINANCIAL RATIOS   |     |         |   |         |   |         |   |
| (Continued)                |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     | Company |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     | 2007    |   | 2006    |   | 2005    |   |
|                            |     |         |   |         |   |         |   |
|                            |     |         |   | (Re     |   | (Re     |   |
|                            |     |         |   | stated) |   | stated) |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Financial Policy Ratios    |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Debt To Equity             | Ti  | 0.39    |   | 0.49    |   | 0.95    |   |
|                            | mes |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Interest Coverage          | Ti  | 2.85    |   | 9.61    |   | (0.02)  |   |
|                            | mes |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Payout Ratio (Cash Basis)  | Ti  | 0.24    |   | 1.02    |   | (0.09)  |   |
|                            | mes |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Dividend Payout Ratio      | %   | 30.52   |   | -       |   | (       |   |
|                            |     |         |   |         |   | 102.01) |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Share value                |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Book Value Per Share       | B   | 38.46   |   | 46.59   |   | 30.71   |   |
|                            | aht |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Earnings (loss) Per Share  | B   | 5.70    |   | 16.00   |   | (1.96)  |   |
|                            | aht |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Dividend Per Share         | B   | 2.80    |   | 2.50    |   | -       |   |
|                            | aht |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Growth rate                |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Total Assets               | %   | 51.95   |   | 15.91   |   | 14.36   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Total Liabilities          | %   | 30.44   |   | (21.69) |   | 64.43   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Total Revenues             | %   | (7.33)  |   | 400.83  |   | (53.68) |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Total Expenses             | %   | 90.36   |   | 21.88   |   | 4.60    |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
| Net Income (Loss)          | %   | (48.80) |   | 915.98  |   | (       |   |
|                            |     |         |   |         |   | 145.80) |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+
|                            |     |         |   |         |   |         |   |
+----------------------------+-----+---------+---+---------+---+---------+---+

12.2 Explanation and Analysis by Management

  For the year ended 31 December 2007, Laguna Resorts & Hotels Public
  Company Limited achieved a net profit of Baht 1,290 million which was
  Baht 177 million higher when compared to the prior year.

  Total revenue for the year increased by Baht 991 million as compared
  to the prior year mainly due to the following:

-   Revenue from hotel operations increased by Baht 532 million mainly
    comprising an increase in revenue of the Laguna Phuket operations
    resulting from higher average room rates and occupancies by 7
    percent and 13 percent respectively as compared to the same period
    last year.

-   Revenue from property development operations increased by Baht 492
    million mainly due to sales and recognition of new projects
    including Laguna Village Villas, Laguna Residences and Dusit Pool
    Villas, partially offset by lower sales of Banyan Tree Double Pool
    Villas, and continued growth of Laguna Holiday Club including the
    commencement of new branch operations during the year.

-   Revenue from office rental operations decreased by Baht 13 million
    mainly due to office leases in Thai Wah Tower 2 being cancelled as
    this area is now being converted to hotel suites and apartments as
    part of the Banyan Tree Bangkok expansion, partially offset by
    increased revenue in Thai Wah Tower 1 due to additional office space
    being acquired and leased.

-   Interest income increased by Baht 38 million due to interest from
    loans to an associated company, Lijiang Banyan Tree Hotel Co. Ltd.,
    and interest on installment plans for property sales and holiday
    club memberships.

-   Foreign exchange gains decreased by Baht 79 million mainly due to a
    lower exchange rate differential on US dollar denominated bank loans
    partially offset by exchange losses on US dollar denominated loans
    to Lijiang Banyan Tree Hotel Co. Ltd.

-   Other income increased by Baht 20 million mainly due to a reversal
    of a prior period land devaluation which was previously recognised
    as an expense.

  Total expenses increased by Baht 780 million as compared to the prior
  year mainly due to the following:

-   Expenses of hotel operations increased by Baht 202 million mainly
    due to the increase in hotel revenue of the Laguna Phuket operations
    partially offset by lower expenses of Lijiang Banyan Tree Hotel Co.
    Ltd., as its status changed to an associated company in the current
    year (a subsidiary company in the prior year).

-   Expenses of property development operations increased by Baht 514
    million mainly due the costs recognised from new projects including
    Laguna Village Villas, Laguna Residences and Dusit Pool Villas and
    increased costs associated with the expansion of the Laguna Holiday
    Club business including the opening of new branches and a full year
    of operations of the Laguna Holiday Club Phuket Resort.

-   Expenses of office rental operations decreased by Baht 34 million
    mainly due to a decrease in property tax and depreciation on former
    office rental space in Thai Wah Tower 2 which is now being converted
    to hotel suites and apartments as part of the Banyan Tree Bangkok
    expansion.

-   Selling and administrative expenses increased by Baht 94 million
    mainly due to an increase in staff costs, an increase in legal and
    professional fees mainly associated with the Tsunami insurance
    claim, and expenses in respect of Laguna Phuket’s 20^(th)
    anniversary celebrations.

-   Share of loss from investment in associated company increased by
    Baht 5 million from the 49 percent investment in Lijiang Banyan Tree
    Hotel Co. Ltd.

-   Interest expenses increased by Baht 19 million as compared to the
    prior year mainly due to interest on bank loans for various capital
    projects no longer being capitalized as projects have now been
    completed.

-   Taxation decreased by Baht 39 million as compared to the prior year
    mainly due to continued utilization of tax losses and timing
    differences in accounting and tax treatment of leasehold income from
    property sales.

-   Net income attributable to minority interests increased by Baht 55
    million as compared to the prior year mainly due to the increased
    profit of Laguna Beach Club Limited (in which there is a 50 percent
    minority interest) and Lijiang Banyan Tree Hotel Co. Ltd. changing
    its status to an associated company during the current year (a
    subsidiary in the prior year in which there was a 30 percent
    minority interest).

    For the reasons stated above, the company has shown an increase in
    net profit as compared to the prior year.

Hotel Operations

  (Unit: Million Baht)

  --------------- ---------- -------- --------- -------- --------- --------
                  2007       %        2006      %        2005      %

                                                                   

  Revenues        4,122      100.0    3,590     100.0    2,306     100.0

                                                                   

  Expenses        3,217      78.0     3,016     84.0     2,159     93.6

                                                                   

  Operating       905        22.0     574       16.0     147       6.4
  Profit                                                           

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

 

  Hotel revenue was Baht 532 million higher than last year and expenses
  are Baht 201 million higher than last year resulting in operating
  profit being Baht 331 million higher than last year. The operating
  margin of 22 percent was above the prior year level of 16 percent and
  the 2005 level of 6 percent. The main reasons for this were:

-   An increase in revenue of the Laguna Phuket operations resulting
    from higher average room rates and occupancies by 7 percent and 13
    percent respectively as compared to the same period last year.

-   Lower expenses of Lijiang Banyan Tree Hotel Co. Ltd., as its status
    changed to an associated company in the current year (a subsidiary
    company in the prior year).

  Property Sales and Holiday Club Operations

  (Unit : Million Baht)

  -------------- ---------- ------- ---------- -------- ---------- --------
                 2007       %       2006       %        2005       %

                                                                   

  Revenues       2,820      100.0   2,328      100.0    750        100.0

                                                                   

  Expenses       1,717      60.9    1,203      51.7     491        65.5

                                                                   

  Operating      1,103      39.1    1,125      48.3     259        34.5
  Profit                                                           

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

  The Property Sales business continues to experience strong growth as
  the Phuket property market develops. Laguna Property Sales sells
  residential and hotel branded villas. Revenue was Baht 492 million
  higher than last year and expenses were Baht 514 million higher than
  last year resulting in operating profit being Baht 22 million lower
  than last year. The operating margin of 39 percent was below the prior
  year level of 48 percent and above the 2005 level of 35 percent. The
  main reasons for this were:

-   Sales and recognition of new projects including Laguna Village
    Villas, Laguna Residences and Dusit Pool Villas, partially offset by
    lower sales of Banyan Tree Double Pool Villas, and continued growth
    of Laguna Holiday Club and increased costs associated with the
    expansion including the commencement of new branch operations during
    the year.

  Balance Sheet

  The main balance sheet items at 31 December 2007 and 2006 are as
  follows:

+-----------------------------+---------+--------------+--------------+
|                             | Note    | 31 December  | 31 December  |
|                             |         | 2007         | 2006         |
|                             |         |              |              |
|                             |         | Baht’ 000    | Baht’ 000    |
+-----------------------------+---------+--------------+--------------+
| Cash, cash equivalents and  | 1       | 1,533,422    | 1,087,924    |
| fixed deposits              |         |              |              |
+-----------------------------+---------+--------------+--------------+
| Trade accounts receivable   | 2       | 1,860,905    | 1,116,497    |
+-----------------------------+---------+--------------+--------------+
| Property development cost   | 3       | 875,920      | 593,414      |
+-----------------------------+---------+--------------+--------------+
| Other investments           | 4       | 210,399      | 210,399      |
+-----------------------------+---------+--------------+--------------+
| Property, equipment and     | 5       | 19,099,576   | 11,116,393   |
| land                        |         |              |              |
+-----------------------------+---------+--------------+--------------+
| Loans from banks            | 6       | 4,167,262    | 4,365,869    |
+-----------------------------+---------+--------------+--------------+
|                             |         |              |              |
+-----------------------------+---------+--------------+--------------+

  The main points of note in regard to the Balance Sheet movements in
  the year ended 31 December 2007 are:

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

2.  The increase in accounts receivable balances is due to the increase
    in property sales and holiday club memberships in 2007.

3.  The increase in property development cost in 2007 is mainly due to
    the construction in progress completion of Laguna Village projects,
    Dusit Pool Villas and Banyan Tree Residences in Bangkok.

4.  There has been no change in other investments.

5.  The increase in property, equipment and land is mainly due to
    revaluation of land and buildings in November 2007.

6.  Loans from banks have decreased in 2007 due to scheduled loan
    repayments from current year cash flow.

  Cash Flows

  The cash and cash equivalents of Baht 1,533 million at 31 December
  2007 represented a Baht 445 million increase as compared to 31
  December 2006. The main components of cash generated during the year
  are as follows:

-   Net cash generated by operations amounted to Baht 1,112 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 756 million and largely
    related to the construction projects in Laguna Phuket and Banyan
    Tree Bangkok Hotel.

-   Cash received from share capital increase of Baht 820 million

-   Short term and long term loans drawn down of Baht 450 million;

-   Scheduled loan repayments of Baht 649 million; and

-   Dividend payment of Baht 263 million.

  Commentary on Consolidated Financial Ratios

  Liquidity ratios

-   Current ratio – this is higher in 2007 due to the increase in cash
    at bank, accounts receivable and property development cost.

-   Quick ratio – this is higher in 2007 due to the increase in cash at
    bank and accounts receivable.

-   Cash flow from operating activities – this is lower than the prior
    year levels due to the higher liabilities in 2007.

-   Receivable turnover – this is lower than the prior year levels due
    to the higher property accounts receivable in 2007.

-   Collection period – this is higher than the prior year levels due to
    the higher property revenue in 2007 coupled with the higher property
    accounts receivables.

-   Inventory turnover – this is higher than the prior year levels due
    to higher direct costs in 2007 being linked to the higher revenues
    in 2007.

-   Inventory turnover period – this is an improvement on the prior year
    levels due to higher direct costs in 2007 being linked to the higher
    revenues in 2007.

-   Accounts payable turnover – this is higher than the prior year
    levels due to higher direct costs in 2007 being linked to the higher
    revenues in 2007.

-   Payment period – this is an improvement on the prior year levels due
    to higher direct costs in 2007 being linked to the higher revenues
    in 2007.

-   Cash cycle – this is higher than the prior year levels due to longer
    collection period for property sales.

  Profitability ratios

-   Gross profit margin – this is consistent with the prior year level
    comprising improved margins on hotel operations partially offset by
    lower margins on property development operations.

-   Profit margin from operations – this is consistent with the prior
    year level.

-   Net profit margin from operations – this is consistent with the
    prior year level.

-   Return on equity – this is lower than the prior year level due to
    increase the registered capital and revaluation surplus of fixed
    assets during the year.

  Efficiency ratios

-   Return on total assets – this is lower than the prior year level due
    to the revaluation increase of surplus of fixed assets during the
    year.

-   Return on fixed assets – this is lower than the prior year level due
    to the revaluation increase of fixed assets during the year.

-   Asset turnover – this is lower than the prior year levels due to the
    revaluation increase of fixed assets during the year.

  Financial policy ratios

-   Debt to equity – this is lower than the prior year due last year due
    to the revaluation increase of fixed assets and the share capital
    increase in during the year.

-   Interest cover – the decrease as compared to last year is due to the
    higher interest expense incurred on borrowings.

-   Pay-out ratio (cash) – the increase as compared to last year is due
    to increase in loan repayments and dividend payment.

-   Dividend pay-out ratio – dividend payment was made in the 2007
    whereas no dividends were paid in 2006.

    12.3 Auditors' Remuneration (for the fiscal year ended 31
    December 2007)

    1.  Audit Fees

  The Company and subsidiaries paid audit fees for the fiscal year to an
  audit firm which amounted to Baht 5,932,694 and subsidiaries paid
  audit fees to another audit firm which amounted to Baht 1,222,484.
  This amount does not include the audit fees paid by associated
  companies.

2.  Non-Audit Fees

  The Company and subsidiaries did not pay any non-audit fees for the
  fiscal year to the audit firm which acted as the auditor of the
  Company.