10. Financial Position and Operating Results

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

  10.1.1 Summary of Auditors’ Findings and Significant Accounting
  Policies

  The name of Company’s Auditor for the 2011 Financial Statements is
  Rungnapa Lertsuwankul, Certified Public Accountant (Thailand) No. 3516
  of Ernst & Young Office Limited and the name of its subsidiaries’
  Auditor is Sophon Permsirivallop, Certified Public Accountant
  (Thailand) No. 3182 of Ernst & Young Office Limited.

Conclusion of the Auditor’s Report

  For the year ended 31 December 2011

  In summary, a clean audit report was issued.

  Reference was made to the other auditor did not audit the financial
  statements of two subsidiaries, Laguna Beach Club Limited and Laguna
  (1) Company Limited, which are included in these consolidated
  financial statements. During the current year, the Company changed its
  accounting policies to comply with the revised and new accounting
  standards as issued by the Federation of Accounting Professions. In
  addition, the Company has changed its accounting treatment of the
  revaluation surplus on revalued assets that were disposed of. The
  Company has restated the financial statements as at 31 December 2010
  and 1 January 2010 and for the year ended 31 December 2010 to reflect
  the changes in accounting policies resulting from the adoption of
  these new accounting standards and the adjustment of its accounting
  treatment.

  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 2011 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 2010

  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 for the
  year ended 31 December 2010. As at 31 December 2010 and 2009, these
  subsidiaries had total assets of Baht 1,582.8 million and Baht 1,436.5
  million, respectively, and total revenues for the years then ended of
  Baht 364.4 million and Baht 305.0 million, respectively.

  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 2010 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 2009

  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 for the
  year ended 31 December 2009. As at 31 December 2009 and 2008, these
  subsidiaries had total assets of Baht 1,436.5 million and Baht 1,807.1
  million, respectively, and total revenues for the years then ended of
  Baht 305.0 million and Baht 414.2 million, respectively.

  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 2009 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 during the year

During the current year, the Company adopted a number of revised and new
accounting standards, issued by the Federation of Accounting
Professions, as listed below.

Accounting standards:

+----------------------+-----------------------------------------------+
| TAS 1 (revised 2009) |   Presentation of Financial Statements        |
+----------------------+-----------------------------------------------+
| TAS 2 (revised 2009) |   Inventories                                 |
+----------------------+-----------------------------------------------+
| TAS 7 (revised 2009) |   Statement of Cash Flows                     |
+----------------------+-----------------------------------------------+
| TAS 8 (revised 2009) |   Accounting Policies, Changes in Accounting  |
|                      |   Estimates and Errors                        |
+----------------------+-----------------------------------------------+
| TAS 10 (revised      |   Events after the Reporting Period           |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 11 (revised      |   Construction Contracts                      |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 16 (revised      |   Property, Plant and Equipment               |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 17 (revised      |   Leases                                      |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 18 (revised      |   Revenue                                     |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 19               |   Employee Benefits                           |
+----------------------+-----------------------------------------------+
| TAS 23 (revised      |   Borrowing Costs                             |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 24 (revised      |   Related Party Disclosures                   |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 26               |   Accounting and Reporting by Retirement      |
|                      |   Benefit Plans                               |
+----------------------+-----------------------------------------------+
| TAS 27 (revised      |   Consolidated and Separate Financial         |
| 2009)                |   Statements                                  |
+----------------------+-----------------------------------------------+
| TAS 28 (revised      |   Investments in Associates                   |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 29               |   Financial Reporting in Hyperinflationary    |
|                      |   Economies                                   |
+----------------------+-----------------------------------------------+
| TAS 31 (revised      |   Interests in Joint Ventures                 |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 33 (revised      |   Earnings per Share                          |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 34 (revised      |   Interim Financial Reporting                 |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 36 (revised      |   Impairment of Assets                        |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 37 (revised      |   Provisions, Contingent Liabilities and      |
| 2009)                |   Contingent Assets                           |
+----------------------+-----------------------------------------------+
| TAS 38 (revised      |   Intangible Assets                           |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TAS 40 (revised      |   Investment Property                         |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+

Financial reporting standards:

+----------------------+-----------------------------------------------+
| TFRS 2               |   Share-Based Payment                         |
+----------------------+-----------------------------------------------+
| TFRS 3 (revised      |   Business Combinations                       |
| 2009)                |                                               |
+----------------------+-----------------------------------------------+
| TFRS 5 (revised      |   Non-current Assets Held for Sale and        |
| 2009)                |   Discontinued Operations                     |
+----------------------+-----------------------------------------------+
| TFRS 6               |   Exploration for and Evaluation of Mineral   |
|                      |   Resources                                   |
+----------------------+-----------------------------------------------+

Financial Reporting Standard Interpretations:

+----------------------+-----------------------------------------------+
| TFRIC 15             |   Agreements for the Construction of Real     |
|                      |   Estate                                      |
+----------------------+-----------------------------------------------+

Accounting Standard Interpretations:

+----------------------+-----------------------------------------------+
| SIC 31               |   Revenue-Barter Transactions Involving       |
|                      |   Advertising Services                        |
+----------------------+-----------------------------------------------+

These accounting standards do not have any significant impact on the
financial statements, except for the following accounting standards.

TAS 18 (revised 2009) Revenue

This accounting standard requires entities to recognise revenue from
sales of goods, which includes real estate developed for sale, when
significant risks and rewards are transferred to the buyer. Previously,
the Company and its subsidiaries elected to use the
percentage-of-completion method in recognising revenue from real estate
sales. The Company and its subsidiaries changed this accounting policy
in the current year and restated the prior year’s financial statements,
presented for comparative purposes, as though the Company and its
subsidiaries initially recognised revenue from real estate sales when
the significant risks and rewards were transferred to the buyer. The
change has the effect of increasing profit of the Company and its
subsidiaries for the year 2011 by Baht 207 million (1.24 Baht per share)
(Separate financial statements: increasing profit by Baht 138 million,
or 0.83 Baht per share). The cumulative effect of this change in the
accounting policy has been presented in the statements of changes in
shareholders’ equity.

TAS 19 Employee Benefits

This accounting standard requires employee benefits to be recognised as
expense in the period in which the service is performed by the employee.
In particular, an entity has to evaluate and make a provision for
post-employment benefits or liabilities arising from other long-term
employee benefits using actuarial techniques. The Company and its
subsidiaries previously accounted for such employee benefits when they
were incurred.

The Company and its subsidiaries have changed this accounting policy in
the current year and recognize the liability in the transition period
through an adjustment to the beginning balance of retained earnings in
the current year. The change has the effect of decreasing the profit of
the Company and its subsidiaries for the year 2011 by Baht 26 million
(0.16 Baht per share) (Separate financial statements: decreasing profit
by Baht 6 million, or 0.04 Baht per share). The cumulative effect of the
changes in the accounting policy has been presented in the statements of
changes in shareholders’ equity.

TAS 40 (revised 2009) Investment Property

This accounting standard requires entities to choose to recognise
investment property either under the cost model (with disclosure of fair
value in the notes to financial statements) or the fair value model,
whereby changes in fair value are to be recognised in profit or loss.
Investment property was previously recognised under the caption of land
awaiting for development, which is measured using the cost model and
property, plant and equipment, which is measured using the fair value
model. In adopting the new accounting policy, the Company and its
subsidiaries separately present investment property and measure it using
the fair value model, commencing in the current year. The Company and
its subsidiaries have recognized the effect of the change in accounting
policy as an adjustment to the opening balance of retained earnings for
the year. The change has the effect of increasing profit of the Company
and its subsidiaries for the year 2011 by Baht 23 million (0.14 Baht per
share) (Separate financial statements: decreasing profit by Baht 1
million, or 0.01 Baht per share). The cumulative effect of the changes
in the accounting policy has been presented in the statements of changes
in shareholders’ equity.

New accounting standards issued during the years not yet effective

  The Federation of Accounting Professions issued the following
  new/revised accounting standards that are effective for fiscal years
  beginning on or after 1 January 2013.

Accounting standards:

  ----------------------- -----------------------------------------------
  TAS 12                  Income Taxes

  TAS 20 (revised 2009)   Accounting for Government Grants and Disclosure
                          of Government Assistance

  TAS 21 (revised 2009)   The Effects of Changes in Foreign Exchange
                          Rates
  ----------------------- -----------------------------------------------

Accounting Standard Interpretations:

  ---------- ------------------------------------------------------------
  SIC 10     Government Assistance - No Specific Relation to Operating
             Activities

  SIC 21     Income Taxes - Recovery of Revalued Non-Depreciable Assets

  SIC 25     Income Taxes - Changes in the Tax Status of an Entity or its
             Shareholders
  ---------- ------------------------------------------------------------

  The Company’s management believes that these accounting standards will
  not have any significant impact on the financial statements for the
  year when they are initially applied, except for the following
  accounting standard.

  TAS 12 Income Taxes

  This accounting standard requires an entity to identify temporary
  differences, which are differences between the carrying amount of an
  asset or liability in the accounting records and its tax base, and to
  recognise deferred tax assets and liabilities under the stipulated
  guidelines.

  At present, the management is evaluating the impact on the financial
  statements in the year when this standard is adopted.

  Cumulative effect of change in accounting policy due to the adoption
  of new accounting standards regarding revenue recognition from real
  estate sales

  During the current year, the Company made the changes to its
  significant accounting policies as a result of the adoption of revised
  and new accounting standards. The cumulative effect of the changes in
  the accounting policies has been separately presented in the
  statements of changes in shareholders’ equity.

  The amounts of adjustments affecting the statements of financial
  position as at 31 December 2011, 2010 and 1 January 2010 and the
  income statements for the years ended 31 December 2011 and 2010 are
  summarised below.

  (Unit: Thousand Baht)

  --------------------------------- -------------- ------------ -----------
                                    Consolidated                
                                    financial                   
                                    statements                  

                                    31 December    31 December  1 January
                                    2011           2010         2010

  Statements of financial position                              

  Decrease in trade and other       -              (106,976)    (143,991)
  receivables                                                   

  Decrease in long - term trade     (147,000)      (328,713)    (472,393)
  accounts receivable                                           

  Increase in property development  80,598         264,699      448,570
  cost                                                          

  Decrease in investments in        (17,485)       (17,485)     (17,485)
  associates                                                    

  Increase in trade and other       37,099         139,196      339,469
  payables                                                      

  Decrease in unappropriated        (120,986)      (327,671)    (524,768)
  retained earnings                                             
  --------------------------------- -------------- ------------ -----------

  (Unit: Thousand Baht)

  -------------------------------------------- -------------- -------------
                                               Consolidated   
                                               financial      
                                               statements for 
                                               the years      
                                               ended 31       
                                               December       

                                               2011           2010

  Income statements                                           

  Increase in revenue from property            390,786        380,968
  development operations                                      

  Increase in cost of property development     184,100        183,871
  operations                                                  

  Increase in equity attributable to the       206,686        197,097
  Company’s shareholders                                      

  Increase in earnings per share (Baht)        1.24           1.18
  -------------------------------------------- -------------- -------------

  (Unit: Thousand Baht)

  --------------------------------- ------------ ------------ -----------
                                    Separate                  
                                    financial                 
                                    statements                

                                    31 December  31 December  1 January
                                    2011         2010         2010

  Statements of financial position                            

  Decrease in long - term trade     (111,450)    (293,162)    (293,912)
  accounts receivable                                         

  Increase in property development  60,810       148,332      148,659
  cost                                                        

  Increase in trade and other       28,211       72,265       71,515
  payables                                                    

  Decrease in unappropriated        (78,851)     (217,095)    (216,768)
  retained earnings                                           
  --------------------------------- ------------ ------------ -----------

  (Unit: Thousand Baht)

  ------------------------------------------ -------------- --------------
                                             Separate       
                                             financial      
                                             statements for 
                                             the years      
                                             ended 31       
                                             December       

                                             2011           2010

  Income statements                                         

  Increase in revenue from property          225,766        -
  development operations                                    

  Increase in cost of property development   87,522         326
  operations                                                

  Increase (decrease) in equity attributable 138,244        (326)
  to the Company’s shareholders                             

  Increase in earnings per share (Baht)      0.83           -
  ------------------------------------------ -------------- --------------

Prior year adjustment of the income statement

In 2010, the Company and its subsidiaries recognised the revaluation
surplus on revalued assets that were disposed of, amounting to Baht 666
million, through the consolidated income statements (Separate financial
statements: Baht 537 million). This year the Company and its
subsidiaries have restated these entries to recognise them directly
through retained earnings in accordance with the new accounting standard
No. 16 (revised 2009) Property, Plant and Equipment on the disposal of
revalued assets. This transaction has no effect to the consolidated and
separate statements of financial position as at 31 December 2010. The
amounts of adjustments affecting the income statement for the year ended
31 December 2010 are summarised below.

  (Unit: Thousand Baht)

  ----------------------------------------------- ------------- ------------
                                                  For the year  
                                                  ended 31      
                                                  December 2010 

                                                  Consolidatd   Separate
                                                  financial     financial
                                                  statements    statements

  Income statements                                             

  Decrease in gain from the sale of Dusit Thani   666,319       537,399
  Laguna Phuket                                                 

  Decrease in profit attributable to equity       666,319       537,399
  holders of the Company                                        

  Decrease in basic earnings per share (Baht)     4.00          3.22
  ----------------------------------------------- ------------- ------------

10.1.2 Summary of Financial Statements

Consolidated Income Statements Unit: Baht

+-----------------------------------+---+----------+---------+---------+
|                                   |   | Cons     |         |         |
|                                   |   | olidated |         |         |
+-----------------------------------+---+----------+---------+---------+
|                                   |   | 2011     | 2010    | 2009    |
+-----------------------------------+---+----------+---------+---------+
|                                   |   |          | (Re     | (Re     |
|                                   |   |          | stated) | stated) |
+-----------------------------------+---+----------+---------+---------+
| Continuing operations             |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Revenue                         |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Revenue from hotel operations   |   | 2,828    | 3,097,  | 2,826,  |
|                                   |   | ,313,391 | 223,659 | 055,845 |
+-----------------------------------+---+----------+---------+---------+
|   Revenue from property           |   | 576      | 1,063,  | 1,309,  |
|   development operations          |   | ,749,819 | 073,253 | 564,096 |
+-----------------------------------+---+----------+---------+---------+
|   Revenue from office rental      |   | 55       | 45,     | 58,     |
|   operations                      |   | ,509,405 | 459,606 | 937,556 |
+-----------------------------------+---+----------+---------+---------+
|   Gain from the sale of Dusit     |   | -        | 1,601,  | -       |
|   Thani Laguna Phuket             |   |          | 370,855 |         |
+-----------------------------------+---+----------+---------+---------+
|   Gain from sale of investments   |   | 45       | -       | -       |
|                                   |   | ,207,102 |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Interest income                 |   | 42       | 54,     | 62,     |
|                                   |   | ,888,804 | 779,256 | 083,150 |
+-----------------------------------+---+----------+---------+---------+
|   Insurance claim                 |   | -        | 56,     | 23,     |
|                                   |   |          | 335,735 | 359,564 |
+-----------------------------------+---+----------+---------+---------+
|   Other income                    |   | 49       | 33,     | 22,     |
|                                   |   | ,352,492 | 830,859 | 617,222 |
+-----------------------------------+---+----------+---------+---------+
|   Total revenue                   |   | 3,598    | 5,952,  | 4,302,  |
|                                   |   | ,021,013 | 073,223 | 617,433 |
+-----------------------------------+---+----------+---------+---------+
|   Expenses                        |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Cost of hotel operations        |   |   1,204  |         |         |
|                                   |   | ,396,156 |  1,277, |  1,199, |
|                                   |   |          | 470,676 | 888,141 |
+-----------------------------------+---+----------+---------+---------+
|   Cost of property development    |   |   225    |   375,  |   432,  |
|   operations                      |   | ,125,486 | 676,449 | 643,423 |
+-----------------------------------+---+----------+---------+---------+
|   Cost of office rental           |   | 29       | 27,     | 29,     |
|   operations                      |   | ,422,612 | 286,906 | 079,953 |
+-----------------------------------+---+----------+---------+---------+
|   Selling expenses                |   | 340      | 379,    | 354,    |
|                                   |   | ,765,429 | 552,700 | 283,217 |
+-----------------------------------+---+----------+---------+---------+
|   Administrative expenses         |   | 1,605    | 1,640,  | 1,361,  |
|                                   |   | ,406,439 | 801,863 | 382,859 |
+-----------------------------------+---+----------+---------+---------+
|   Depreciation                    |   | 317      | 395,    | 392,    |
|                                   |   | ,777,483 | 895,583 | 200,443 |
+-----------------------------------+---+----------+---------+---------+
|   Loss on termination of property |   | -        | 90,     | 50,     |
|   sales                           |   |          | 990,721 | 655,942 |
+-----------------------------------+---+----------+---------+---------+
|   Total expenses                  |   | 3,722    | 4,187,  | 3,820,  |
|                                   |   | ,893,605 | 674,898 | 133,978 |
+-----------------------------------+---+----------+---------+---------+
|   Profit (loss) before share of   |   | (124,    | 1,764,  | 482,    |
|   profit (loss) from investment   |   | 872,592) | 398,325 | 483,455 |
|                                   |   |          |         |         |
| in associate, finance cost and    |   |          |         |         |
| corporate income tax from         |   |          |         |         |
| continuing operations             |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
| Share of profit (loss) from       |   | 174      | (15,3   | (3,8    |
| investment in associate           |   | ,334,694 | 80,913) | 93,511) |
+-----------------------------------+---+----------+---------+---------+
| Profit before finance cost and    |   | 49       | 1,749,  | 478,    |
| corporate income tax from         |   | ,462,102 | 017,412 | 589,944 |
| continuing operations             |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
| Finance cost                      |   | (132,    | (132,2  | (159,0  |
|                                   |   | 157,254) | 10,452) | 36,695) |
+-----------------------------------+---+----------+---------+---------+
|   Profit (loss) before corporate  |   | (82,     | 1,616,  | 319,    |
|   income tax from continuing      |   | 695,152) | 806,960 | 553,249 |
|   operations                      |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
| Corporate income tax              |   | (101,    | (686,6  | (107,7  |
|                                   |   | 965,084) | 76,584) | 32,652) |
+-----------------------------------+---+----------+---------+---------+
|   Profit (loss) for the year from |   | (184,    | 930,    | 211,    |
|   continuing operations           |   | 660,236) | 130,376 | 820,597 |
+-----------------------------------+---+----------+---------+---------+
|   Discontinued operation          |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Profit after tax for the year   |   | -        | 64,     | 99,     |
|   from discontinued operation     |   |          | 164,055 | 751,024 |
+-----------------------------------+---+----------+---------+---------+
|   Profit (loss) for the year      |   | (184,    | 994,    | 311,    |
|                                   |   | 660,236) | 294,431 | 571,621 |
+-----------------------------------+---+----------+---------+---------+
|   Profit (loss) attributable to:  |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Equity holders of the Company   |   | (223,    | 944,    | 280,    |
|                                   |   | 574,781) | 523,751 | 590,011 |
+-----------------------------------+---+----------+---------+---------+
|   Non-controlling interests of    |   | 38       | 49,     | 30,     |
|   the subsidiaries                |   | ,914,545 | 770,680 | 981,610 |
+-----------------------------------+---+----------+---------+---------+
|                                   |   | (184,    | 994,    | 311,    |
|                                   |   | 660,236) | 294,431 | 571,621 |
+-----------------------------------+---+----------+---------+---------+
| Basic earnings per share          |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
| Profit (loss) attributable to     |   | (1.34)   | 5.67    | 1.68    |
| equity holders of the Company     |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
| Basic earnings per share for      |   |          |         |         |
| continuing operations             |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
| Profit (loss) income from         |   | (1.34)   | 5.28    | 1.08    |
| continuing operations             |   |          |         |         |
| attributable to equity holders of |   |          |         |         |
| the Company                       |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+

Consolidated Income Statements (continued) Unit: Baht

+-----------------------------------+---+----------+---------+---------+
|                                   |   | Cons     |         |         |
|                                   |   | olidated |         |         |
+-----------------------------------+---+----------+---------+---------+
|                                   |   | 2011     | 2010    | 2009    |
+-----------------------------------+---+----------+---------+---------+
|                                   |   |          | (Re     | (Re     |
|                                   |   |          | stated) | stated) |
+-----------------------------------+---+----------+---------+---------+
| Profit (loss) for the year        |   | (184,    | 994,    | 280,    |
|                                   |   | 660,236) | 294,431 | 590,011 |
+-----------------------------------+---+----------+---------+---------+
| Other comprehensive income:       |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Exchange differences on         |   |          |         |         |
|   translation of                  |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   financial statements in foreign |   | 45       | (25,6   | (25,7   |
|   currency                        |   | ,455,573 | 98,126) | 12,911) |
+-----------------------------------+---+----------+---------+---------+
|   Actuarial gain of               |   | 831,347  | -       | -       |
|   post-employment benefits        |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Addition of revaluation surplus |   | -        | 914,    | -       |
|   on assets                       |   |          | 635,380 |         |
+-----------------------------------+---+----------+---------+---------+
|   Reversal of revaluation surplus |   | -        | (510,9  | (       |
|   on assets                       |   |          | 75,686) | 2,563,5 |
|                                   |   |          |         | 05,318) |
+-----------------------------------+---+----------+---------+---------+
|   Other comprehensive income      |   | 46       | 377,    | (       |
|   (loss) for the year             |   | ,286,920 | 961,568 | 2,589,2 |
|                                   |   |          |         | 18,229) |
+-----------------------------------+---+----------+---------+---------+
|                                   |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Total comprehensive income      |   | (138,    | 1,372,  | (       |
|   (loss) for the year             |   | 373,316) | 255,999 | 2,308,6 |
|                                   |   |          |         | 28,218) |
+-----------------------------------+---+----------+---------+---------+
|                                   |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Total comprehensive income      |   |          |         |         |
|   (loss) attributable to:         |   |          |         |         |
+-----------------------------------+---+----------+---------+---------+
|   Equity holders of the Company   |   | (179,    | 1,273,  | (       |
|                                   |   | 965,635) | 487,957 | 2,338,9 |
|                                   |   |          |         | 24,833) |
+-----------------------------------+---+----------+---------+---------+
|   Non-controlling interests of    |   | 41       | 98,     | 30,     |
|   the subsidiaries                |   | ,592,319 | 768,042 | 296,615 |
+-----------------------------------+---+----------+---------+---------+
|                                   |   | (138,    | 1,372,  | (       |
|                                   |   | 373,316) | 255,999 | 2,308,6 |
|                                   |   |          |         | 28,218) |
+-----------------------------------+---+----------+---------+---------+

Consolidated Statements of Financial Position

Unit: Baht

+-----------------------------------+---+---------+----------+----------+
|                                   |   | Conso   |          |          |
|                                   |   | lidated |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   | 31      | 31       | 1        |
|                                   |   | D       | December | January  |
|                                   |   | ecember |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   | 2011    | 2010     | 2010     |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         | (R       | (R       |
|                                   |   |         | estated) | estated) |
+-----------------------------------+---+---------+----------+----------+
| ASSETS                            |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Current assets                    |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Cash and cash equivalents         |   | 478,    | 2,021    | 627      |
|                                   |   | 996,835 | ,393,771 | ,906,627 |
+-----------------------------------+---+---------+----------+----------+
| Trade and other receivables       |   | 493,    | 622      | 829      |
|                                   |   | 825,581 | ,079,347 | ,596,785 |
+-----------------------------------+---+---------+----------+----------+
| Amounts due from related parties  |   | 48,     | 73       | 93       |
|                                   |   | 729,129 | ,225,127 | ,393,256 |
+-----------------------------------+---+---------+----------+----------+
| Inventories                       |   | 144,    | 145      | 147      |
|                                   |   | 839,992 | ,427,225 | ,632,788 |
+-----------------------------------+---+---------+----------+----------+
| Property development cost         |   | 2,631,  | 2,772    | 1,988    |
|                                   |   | 454,014 | ,304,981 | ,673,436 |
+-----------------------------------+---+---------+----------+----------+
| Other current assets              |   | 132,    | 86       | 91       |
|                                   |   | 715,790 | ,174,265 | ,946,236 |
+-----------------------------------+---+---------+----------+----------+
| Total current assets              |   | 3,930,  | 5,720    | 3,779    |
|                                   |   | 561,341 | ,604,716 | ,149,128 |
+-----------------------------------+---+---------+----------+----------+
| Non-current assets                |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Restricted deposits at financial  |   | -       | 2        | 2        |
| institution                       |   |         | ,020,000 | ,140,000 |
+-----------------------------------+---+---------+----------+----------+
| Long-term trade accounts          |   | 173,    | 230      | 304      |
| receivable                        |   | 031,673 | ,877,122 | ,859,743 |
+-----------------------------------+---+---------+----------+----------+
| Investments in associates         |   | 534,    | 335      | 377      |
|                                   |   | 049,159 | ,560,311 | ,907,883 |
+-----------------------------------+---+---------+----------+----------+
| Other long-term investments       |   | 318,    | 279      | 232      |
|                                   |   | 949,756 | ,979,891 | ,222,971 |
+-----------------------------------+---+---------+----------+----------+
| Long-term loans to employees      |   | 2,      | 15       | 25       |
|                                   |   | 819,177 | ,739,513 | ,112,231 |
+-----------------------------------+---+---------+----------+----------+
| Investment properties             |   | 800,    | -        | -        |
|                                   |   | 340,000 |          |          |
+-----------------------------------+---+---------+----------+----------+
| Property, plant and equipment     |   | 13,026, | 14,693   | 15,567   |
|                                   |   | 583,106 | ,239,773 | ,799,951 |
+-----------------------------------+---+---------+----------+----------+
| Land awaiting development         |   | -       | 117      | 809      |
|                                   |   |         | ,111,139 | ,396,453 |
+-----------------------------------+---+---------+----------+----------+
| Goodwill                          |   | 381,    | 385      | 385      |
|                                   |   | 304,038 | ,491,758 | ,491,758 |
+-----------------------------------+---+---------+----------+----------+
| Leasehold rights                  |   | 26,     | 27       | 30       |
|                                   |   | 666,372 | ,935,166 | ,939,976 |
+-----------------------------------+---+---------+----------+----------+
| Other non-current assets          |   | 70,     | 46       | 50       |
|                                   |   | 193,196 | ,087,415 | ,438,310 |
+-----------------------------------+---+---------+----------+----------+
| Total non-current assets          |   | 15,333, | 16,134   | 17.786   |
|                                   |   | 936,477 | ,042,088 | .309.276 |
+-----------------------------------+---+---------+----------+----------+
| TOTAL ASSETS                      |   | 19,264, | 21,854   | 21.565   |
|                                   |   | 497,818 | ,646,804 | .458.404 |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Consolidated Statements           |   |         |          | Unit:    |
| of Financial Position (continued) |   |         |          | Baht     |
+-----------------------------------+---+---------+----------+----------+
|                                   |   | Conso   |          |          |
|                                   |   | lidated |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   | 31      | 31       | 1        |
|                                   |   | D       | December | January  |
|                                   |   | ecember |          |          |
+-----------------------------------+---+---------+----------+----------+
|                                   |   | 2011    | 2010     | 2010     |
+-----------------------------------+---+---------+----------+----------+
|                                   |   |         | (R       | (R       |
|                                   |   |         | estated) | estated) |
+-----------------------------------+---+---------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'     |   |         |          |          |
| EQUITY                            |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Current liabilities               |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Short-term loans from financial   |   | 710,    | -        | 520      |
| institutions                      |   | 000,000 |          | ,000,000 |
+-----------------------------------+---+---------+----------+----------+
| Trade and other payables          |   | 1,045,  | 1,193    | 1,569    |
|                                   |   | 401,065 | ,654,403 | ,851,926 |
+-----------------------------------+---+---------+----------+----------+
| Current portion of long-term      |   | 356,    | 570      | 827      |
| loans from financial institutions |   | 523,000 | ,210,665 | ,766,000 |
+-----------------------------------+---+---------+----------+----------+
| Amounts due to related parties    |   | 76,     | 92       | 101      |
|                                   |   | 054,753 | ,182,546 | ,929,497 |
+-----------------------------------+---+---------+----------+----------+
| Corporate income tax payable      |   | 44,     | 613      | 71       |
|                                   |   | 431,474 | ,236,462 | ,530,736 |
+-----------------------------------+---+---------+----------+----------+
| Other current liabilities         |   | 108,    | 117      | 127      |
|                                   |   | 400,710 | ,442,707 | ,986,047 |
+-----------------------------------+---+---------+----------+----------+
| Total current liabilities         |   | 2,340,  | 2,586    | 3,219    |
|                                   |   | 811,002 | ,726,783 | ,064,206 |
+-----------------------------------+---+---------+----------+----------+
| Non-current liabilities           |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Long-term loans from financial    |   | 2,134,  | 1,965    | 1,956    |
| institutions – net of current     |   | 280,743 | ,233,743 | ,434,408 |
| portion                           |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Provision for long-term employee  |   | 120,    | -        | -        |
| benefits                          |   | 857,009 |          |          |
+-----------------------------------+---+---------+----------+----------+
| Other non-current liabilities     |   | 79,     | 81       | 91       |
|                                   |   | 455,379 | ,544,070 | ,816,069 |
+-----------------------------------+---+---------+----------+----------+
| Total non-current liabilities     |   | 2,334,  | 2,046    | 2,048    |
|                                   |   | 593,131 | ,777,813 | ,250,477 |
+-----------------------------------+---+---------+----------+----------+
| Total liabilities                 |   | 4,675,  | 4,633    | 5,267    |
|                                   |   | 404,133 | ,504,596 | ,314,683 |
+-----------------------------------+---+---------+----------+----------+
| Shareholders’ equity              |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Share capital                     |   | 2,116,  | 2,116    | 2,116    |
|                                   |   | 753,580 | ,753,580 | ,753,580 |
|   Registered                      |   |         |          |          |
|                                   |   |         |          |          |
| 211,675,358 ordinary shares of    |   |         |          |          |
| Baht 10 each                      |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
|   Issued and fully paid-up        |   | 1,666,  | 1,666    | 1,666    |
|                                   |   | 827,010 | ,827,010 | ,827,010 |
| 166,682,701 ordinary shares of    |   |         |          |          |
| Baht 10 each                      |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Share premium                     |   | 2,062,  | 2,062    | 2,062    |
|                                   |   | 460,582 | ,460,582 | ,460,582 |
+-----------------------------------+---+---------+----------+----------+
| Capital reserve                   |   | 568,    | 634      | 634      |
|                                   |   | 130,588 | ,698,720 | ,698,720 |
+-----------------------------------+---+---------+----------+----------+
| Retained earnings                 |   |         |          |          |
+-----------------------------------+---+---------+----------+----------+
| Appropriated – statutory reserve  |   | 211,    | 211      | 166      |
|                                   |   | 675,358 | ,675,358 | ,682,701 |
+-----------------------------------+---+---------+----------+----------+
| Unappropriated                    |   | 3,447,  | 4,793    | 3,594    |
|                                   |   | 854,085 | ,366,568 | ,218,335 |
+-----------------------------------+---+---------+----------+----------+
| Other components of shareholders' |   | 6,349,  | 6,843    | 7,209    |
| equity                            |   | 401,985 | ,240,241 | ,074,663 |
+-----------------------------------+---+---------+----------+----------+
| Equity attributable to owner of   |   | 14,306, | 16,212   | 15,333   |
| the Company                       |   | 349,608 | ,268,479 | ,962,011 |
+-----------------------------------+---+---------+----------+----------+
| Non-controlling interests of the  |   | 282,    | 1,008    | 964      |
| subsidiaries                      |   | 744,077 | ,873,729 | ,181,710 |
+-----------------------------------+---+---------+----------+----------+
| Total shareholders’ equity        |   | 14,589, | 17,221   | 16,298   |
|                                   |   | 093,685 | ,142,208 | ,143,721 |
+-----------------------------------+---+---------+----------+----------+
| TOTAL LIABILITIES AND             |   | 19,264, | 21,854   | 21,565   |
| SHAREHOLDERS’ EQUITY              |   | 497,818 | ,646,804 | ,458,404 |
+-----------------------------------+---+---------+----------+----------+

 Consolidated Statements of Cash Flows 

Unit : Baht

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

                                           2011              2010              2009

                                                             (Restated)        (Restated)

  Cash flows from (used in) operating                                          
  activities                                                                   

  Net cash inflows (outflows) from         (459,008,618)     211,411,875       788,725,576
  operating activities                                                         

  Cash flows from (used in) investing                                          
  activities                                                                   

  Net cash inflows (outflows) from         20,584,641        2,369,641,123     (77,094,742)
  investing activities                                                         

  Cash flows from (used in) financing                                          
  activities                                                                   

  Net cash inflows (outflows) from         (1,103,972,959)   (1,187,565,854)   (557,849,638)
  financing activities                                                         

  Net increase (decrease) in cash and      (1,542,396,936)   1,393,487,144     153,781,196
  cash equivalents                                                             

  Cash and cash equivalents at             2,021,393,771     627,906,627       474,125,431
  beginning of year                                                            

  Cash and cash equivalents at end of      478,996,835       2,021,393,771     627,906,627
  year                                                                         

                                                                               

                                                                               

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

 

Separate Income Statements

Unit : Baht

+--------------------------------------+---------+---------+---------+
|                                      | S       |         |         |
|                                      | eparate |         |         |
+--------------------------------------+---------+---------+---------+
|                                      | 2011    | 2010    | 2009    |
+--------------------------------------+---------+---------+---------+
|                                      |         | (Re     | (Re     |
|                                      |         | stated) | stated) |
+--------------------------------------+---------+---------+---------+
| Continuing operations                |         |         |         |
+--------------------------------------+---------+---------+---------+
| Revenue                              |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Revenue from hotel operations      | 60,     | 62,     | 47,     |
|                                      | 284,539 | 664,414 | 237,182 |
+--------------------------------------+---------+---------+---------+
|   Revenue from property development  | 96,     | 23,     | 182,    |
|   operations                         | 401,119 | 207,621 | 019,614 |
+--------------------------------------+---------+---------+---------+
|   Gain on the sale of Dusit Thani    | -       | 1,271,  | -       |
|   Laguna Phuket                      |         | 572,916 |         |
+--------------------------------------+---------+---------+---------+
|   Gain form sale of investments      | 34,     | -       | -       |
|                                      | 489,911 |         |         |
+--------------------------------------+---------+---------+---------+
|   Interest income                    | 139,    | 127,    | 124,    |
|                                      | 753,580 | 407,479 | 744,788 |
+--------------------------------------+---------+---------+---------+
|   Insurance claim                    | -       | 11,     | 2,      |
|                                      |         | 810,644 | 636,951 |
+--------------------------------------+---------+---------+---------+
|   Dividend income                    | 747,    | 54,     | 629,    |
|                                      | 198,111 | 229,946 | 610,833 |
+--------------------------------------+---------+---------+---------+
|   Other income                       | 20,     | 17,     | 63,     |
|                                      | 768,505 | 733,774 | 991,072 |
+--------------------------------------+---------+---------+---------+
|   Total revenue                      | 1,098,  | 1,568,  | 1,050,  |
|                                      | 895,765 | 626,794 | 240,440 |
+--------------------------------------+---------+---------+---------+
|   Expenses                           |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Cost of hotel operations           | 20,     | 17,     | 14,     |
|                                      | 024,428 | 527,639 | 722,995 |
+--------------------------------------+---------+---------+---------+
|   Cost of property development       | 53,     | 8,      | 49,     |
|   operations                         | 623,340 | 121,312 | 823,301 |
+--------------------------------------+---------+---------+---------+
|   Selling expenses                   | 18,     | 14,     | 16,     |
|                                      | 043,420 | 696,844 | 165,979 |
+--------------------------------------+---------+---------+---------+
|   Administrative expenses            | 292,    | 312,    | 259,    |
|                                      | 525,941 | 839,677 | 184,696 |
+--------------------------------------+---------+---------+---------+
| Depreciation                         | 9,      | 12,     | 12,     |
|                                      | 040,760 | 007,904 | 611,459 |
+--------------------------------------+---------+---------+---------+
|   Loss on termination of property    | -       | 90,     | 42,     |
|   sales                              |         | 990,721 | 531,636 |
+--------------------------------------+---------+---------+---------+
| Total expenses                       | 393,    | 456,    | 395,    |
|                                      | 257,889 | 184,097 | 040,066 |
+--------------------------------------+---------+---------+---------+
| Profit before finance cost and       | 705,    | 1,112,  | 655,    |
| corporate income tax from continuing | 637,876 | 442,697 | 200,374 |
| operations                           |         |         |         |
+--------------------------------------+---------+---------+---------+
| Finance cost                         | (52,3   | (52,3   | (62,4   |
|                                      | 68,433) | 81,028) | 76,458) |
+--------------------------------------+---------+---------+---------+
| Profit before corporate income tax   | 653,    | 1,060,  | 592,    |
| from continuing operations           | 269,443 | 061,669 | 723,916 |
+--------------------------------------+---------+---------+---------+
| Corporate income tax                 | (3      | (477,2  | (7,3    |
|                                      | 09,515) | 79,603) | 50,091) |
+--------------------------------------+---------+---------+---------+
| Profit for the year from continuing  | 652,    | 582,    | 585,    |
| operations                           | 959,928 | 782,066 | 373,825 |
+--------------------------------------+---------+---------+---------+
| Discontinued operation               |         |         |         |
+--------------------------------------+---------+---------+---------+
| Profit after tax for the year from   | -       | 64,     | 99,     |
| discontinued operation               |         | 164,055 | 751,024 |
+--------------------------------------+---------+---------+---------+
| Profit for the year                  | 652,    | 646,    | 685,    |
|                                      | 959,928 | 946,121 | 124,849 |
+--------------------------------------+---------+---------+---------+
| Profit attributable to:              |         |         |         |
+--------------------------------------+---------+---------+---------+
| Equity holders of the Company        | 652,    | 646,    | 685,    |
|                                      | 959,928 | 946,121 | 124,849 |
+--------------------------------------+---------+---------+---------+
| Basic earnings per share             |         |         |         |
+--------------------------------------+---------+---------+---------+
| Profit attributable to equity        | 3.92    | 3.88    | 4.11    |
| holders of the Company               |         |         |         |
+--------------------------------------+---------+---------+---------+
| Basic earnings per share for         |         |         |         |
| continuing operations                |         |         |         |
+--------------------------------------+---------+---------+---------+
| Profit from continuing operations    | 3.92    | 3.50    | 3.51    |
| attributable to equity holders of    |         |         |         |
| the Company                          |         |         |         |
+--------------------------------------+---------+---------+---------+

Separate Statements of Financial Position 

Unit : Baht

  --------------------------------------- --------------- --------------- ---------------
                                          Separate                        

                                          31 December     31 December     1 January

                                          2011            2010            2010

                                                          (Restated)      (Restated)

  ASSETS                                                                  

  Current Assets                                                          

  Cash and cash equivalents               26,153,457      1,397,248,738   35,595,602

  Trade and other receivables             66,048,078      58,692,075      140,968,157

  Amounts due from related parties        125,019,835     67,706,996      93,750,185

  Inventories                             224,390         986,539         14,311,934

  Property development cost               276,087,447     328,668,769     282,506,653

  Other current assets                    12,377,448      6,840,298       13,058,592

  Total current assets                    505,910,655     1,860,143,415   580,191,123

  Non- current assets                                                     

  Long term trade accounts receivable     34,859,249      43,316,309      144,285,570

  Investments in subsidiaries             3,408,568,104   3,492,207,114   3,492,207,114

  Long-term loans to subsidiaries         1,828,350,629   2,234,690,629   2,408,490,629

  Long-term loans to employees            1,720,852       7,390,496       11,682,115

  Investment properties                   81,577,940      -               -

  Property, plant and equipment           256,444,342     284,459,453     1,210,525,062

  Land awaiting development               -               31,039,835      28,638,873

  Other non-current assets                3,132,194       3,167,490       5,719,973

  Total non-current assets                5,614,653,310   6,096,271,326   7,301,549,336

  TOTAL ASSETS                            6,120,563,965   7,956,414,741   7,881,740,459

                                                                          

                                                                          

                                                                          

                                                                          

                                                                          

                                                                          

                                                                          

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

 Separate Statements of Financial Position (continued)

  Unit : Baht

+--------------------------------------+---------+---------+---------+
|                                      | S       |         |         |
|                                      | eparate |         |         |
+--------------------------------------+---------+---------+---------+
|                                      | 31      | 31      | 1       |
|                                      | D       | D       | January |
|                                      | ecember | ecember |         |
+--------------------------------------+---------+---------+---------+
|                                      | 2011    | 2010    | 2010    |
+--------------------------------------+---------+---------+---------+
|                                      |         | (Re     | (Re     |
|                                      |         | stated) | stated) |
+--------------------------------------+---------+---------+---------+
| LIABILITIES AND SHAREHOLDERS’ EQUITY |         |         |         |
+--------------------------------------+---------+---------+---------+
| Current liabilities                  |         |         |         |
+--------------------------------------+---------+---------+---------+
| Short-term loans from financial      | 410,    | -       | 260,    |
| institutions                         | 000,000 |         | 000,000 |
+--------------------------------------+---------+---------+---------+
| Trade and other payables             | 270,    | 207,    | 282,    |
|                                      | 211,385 | 136,390 | 436,388 |
+--------------------------------------+---------+---------+---------+
| Current portion of long - term loans | 70,     | 70,     | 168,    |
| from financial institutions          | 000,000 | 000,000 | 000,000 |
+--------------------------------------+---------+---------+---------+
| Amounts due to related parties       | 10,     | 32,     | 18,     |
|                                      | 764,312 | 476,059 | 233,419 |
+--------------------------------------+---------+---------+---------+
| Corporate income tax payable         | -       | 452,    | 6,      |
|                                      |         | 970,713 | 978,534 |
+--------------------------------------+---------+---------+---------+
| Other current liabilities            | 4,      | 1,      | 7,      |
|                                      | 023,580 | 784,381 | 499,668 |
+--------------------------------------+---------+---------+---------+
| Total current liabilities            | 764,    | 764,    | 743,    |
|                                      | 999,277 | 367,543 | 148,009 |
+--------------------------------------+---------+---------+---------+
| Non- current liabilities             |         |         |         |
+--------------------------------------+---------+---------+---------+
| Long-term loans from subsidiaries    | 11,     | 798,    | 881,    |
|                                      | 200,000 | 940,000 | 140,000 |
+--------------------------------------+---------+---------+---------+
| Long-term loans from financial       | 245,    | 315,    | 385,    |
| institutions – net of current        | 000,000 | 000,000 | 000,000 |
| portion                              |         |         |         |
+--------------------------------------+---------+---------+---------+
| Provision for long-term employee     | 33,     | -       | -       |
| benefits                             | 596,649 |         |         |
+--------------------------------------+---------+---------+---------+
| Other non-current liabilities        | 11,     | 13,     | 23,     |
|                                      | 488,566 | 721,625 | 231,702 |
+--------------------------------------+---------+---------+---------+
| Total non-current liabilities        | 301,    | 1,127,  | 1,289,  |
|                                      | 285,215 | 661,625 | 371,702 |
+--------------------------------------+---------+---------+---------+
| Total liabilities                    | 1,066,  | 1,892,  | 2,032,  |
|                                      | 284,492 | 029,168 | 519,711 |
+--------------------------------------+---------+---------+---------+
| Shareholders' equity                 |         |         |         |
+--------------------------------------+---------+---------+---------+
| Share capital                        |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Registered                         | 2,116,  | 2,116,  | 2,116,  |
|                                      | 753,580 | 753,580 | 753,580 |
| 211,675,358 ordinary shares of Baht  |         |         |         |
| 10 each                              |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Issued and fully paid-up           | 1,666,  | 1,666,  | 1,666,  |
|                                      | 827,010 | 827,010 | 827,010 |
| 166,682,701 ordinary shares of Baht  |         |         |         |
| 10 each                              |         |         |         |
+--------------------------------------+---------+---------+---------+
| Share premium                        | 2,062,  | 2,062,  | 2,062,  |
|                                      | 460,582 | 460,582 | 460,582 |
+--------------------------------------+---------+---------+---------+
| Retained earnings                    |         |         |         |
+--------------------------------------+---------+---------+---------+
| Appropriated – statutory reserve     | 211,    | 211,    | 166,    |
|                                      | 675,358 | 675,358 | 682,701 |
+--------------------------------------+---------+---------+---------+
| Unappropriated                       | 939,    | 1,949,  | 1,176,  |
|                                      | 533,860 | 639,960 | 989,729 |
+--------------------------------------+---------+---------+---------+
| Other components of shareholders'    | 173,    | 173,    | 776,    |
| equity                               | 782,663 | 782,663 | 260,726 |
+--------------------------------------+---------+---------+---------+
| Total shareholders' equity           | 5,054,  | 6,064,  | 5,849,  |
|                                      | 279,473 | 385,573 | 220,748 |
+--------------------------------------+---------+---------+---------+
| TOTAL LIABILITIES AND SHAREHOLDERS'  | 6,120,  | 7,956,  | 7,881,  |
| EQUITY                               | 563,965 | 414,741 | 740,459 |
+--------------------------------------+---------+---------+---------+
|                                      |         |         |         |
+--------------------------------------+---------+---------+---------+
|                                      |         |         |         |
+--------------------------------------+---------+---------+---------+
|                                      |         |         |         |
+--------------------------------------+---------+---------+---------+

Separate Statements of Cash Flows

Unit : Baht

  ------------------------------------ ----------------- --------------- ---------------
                                       Separate                          

                                       2011              2010            2009

                                                         (Restated)      (Restated)

  Cash flows from (used in) operating                                    
  activities                                                             

  Net cash inflows (outflows) from     223,278,919       (28,452,675)    372,016,292
  operating activities                                                   

  Cash flows from (used in) investing                                    
  activities                                                             

  Net cash inflows (outflows) from     520,192,650       2,267,007,718   (160,201,214)
  investing activities                                                   

  Cash flows from (used in) financing                                    
  activities                                                             

  Net cash inflows (outflows) from     (2,114,566,850)   (876,901,907)   (218,201,687)
  financing activities                                                   

  Net increase (decrease) in cash and  (1,371,095,281)   1,361,653,136   (6,386,609)
  cash equivalents                                                       

  Cash and cash equivalents at         1,397,248,738     35,595,602      41,982,211
  beginning of year                                                      

  Cash and cash equivalents at end of  26,153,457        1,397,248,738   35,595,602
  year                                                                   
  ------------------------------------ ----------------- --------------- ---------------

10.1.3 Financial ratios of the Company and its subsidiaries

+---------------------------------+----+---------+---+-------+---+--------+---+
| CONSOLIDATED FINANCIAL RATIOS   |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
|                                 |    | Conso   |   |       |   |        |   |
|                                 |    | lidated |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
|                                 |    | 2011    |   | 2010  |   | 2009   |   |
|                                 |    |         |   |       |   |        |   |
|                                 |    |         |   | (Rest |   | (Res   |   |
|                                 |    |         |   | ated) |   | tated) |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Liquidity Ratios                |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Current Ratio                   | T  | 1.68    |   | 2.21  |   | 1.17   |   |
|                                 | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Quick Ratio                     | T  | 0.36    |   | 0.98  |   | 0.41   |   |
|                                 | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Cash Flow From Operating        | T  | (0.19)  |   | 0.07  |   | 0.24   |   |
| Activities Ratio                | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Receivables Turnover            | T  | 7.66    |   | 6.45  |   | 5.29   |   |
|                                 | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Collection Period               | Da | 47.00   |   | 55.81 |   | 68.05  |   |
|                                 | ys |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Inventory Turnover              | T  | 8.30    |   | 8.72  |   | 7.52   |   |
|                                 | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Inventory Turnover Period       | Da | 43.38   |   | 41.29 |   | 47.88  |   |
|                                 | ys |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Accounts Payable Turnover       | T  | 4.75    |   | 4.80  |   | 5.20   |   |
|                                 | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Payment Period                  | Da | 75.79   |   | 75.00 |   | 69.23  |   |
|                                 | ys |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Cash Cycle                      | Da | 14.59   |   | 22.11 |   | 46.70  |   |
|                                 | ys |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
|                                 |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Profitability Ratios            |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Gross Profit Margin             | %  | 57.84   |   | 60.04 |   | 60.39  |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Profit Margin from Operations   | %  | (3.61)  |   | 41.95 |   | 11.50  |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Net Profit Margin               | %  | (6.21)  |   | 15.87 |   | 6.52   |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Return On Equity                | %  | (1.41)  |   | 5.64  |   | 1.59   |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
|                                 |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Efficiency Ratios               |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Return On Total Assets          | %  | (1.09)  |   | 4.35  |   | 1.21   |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Return On Fixed Assets          | %  | 0.66    |   | 8.58  |   | 3.78   |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
| Asset Turnover                  | T  | 0.18    |   | 0.27  |   | 0.19   |   |
|                                 | im |         |   |       |   |        |   |
|                                 | es |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+
|                                 |    |         |   |       |   |        |   |
+---------------------------------+----+---------+---+-------+---+--------+---+

+--------------------------------+----+--------+---+--------+---+--------+---+
| CONSOLIDATED FINANCIAL RATIOS  |    |        |   |        |   |        |   |
| (Continued)                    |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
|                                |    | Consol |   |        |   |        |   |
|                                |    | idated |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
|                                |    | 2011   |   | 2010   |   | 2009   |   |
|                                |    |        |   |        |   |        |   |
|                                |    |        |   | (Res   |   | (Res   |   |
|                                |    |        |   | tated) |   | tated) |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Financial Policy Ratios        |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Debt To Equity                 | T  | 0.32   |   | 0.27   |   | 0.32   |   |
|                                | im |        |   |        |   |        |   |
|                                | es |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Interest Coverage              | T  | 2.46   |   | 3.82   |   | 6.81   |   |
|                                | im |        |   |        |   |        |   |
|                                | es |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Payout Ratio (Cash Basis)      | T  | (0.15) |   | 0.10   |   | 0.46   |   |
|                                | im |        |   |        |   |        |   |
|                                | es |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Dividend Payout Ratio*         | %  | -      |   | 176.47 |   | 130.69 |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
|                                |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Share value                    |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Book Value Per Share           | Ba | 87.53  |   | 103.32 |   | 97.78  |   |
|                                | ht |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Earnings Per Share             | Ba | (1.34) |   | 5.67   |   | 1.68   |   |
|                                | ht |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Dividend Per Share*            | Ba | -      |   | 10.00  |   | 2.20   |   |
|                                | ht |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
|                                |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Growth rate                    |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Total Assets                   | %  | (      |   | 1.34   |   | (      |   |
|                                |    | 11.85) |   |        |   | 12.53) |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Total Liabilities              | %  | 0.90   |   | (      |   | (5.96) |   |
|                                |    |        |   | 12.03) |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Total Revenues                 | %  | (      |   | 38.34  |   | (      |   |
|                                |    | 39.55) |   |        |   | 33.02) |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Total Expenses                 | %  | (      |   | 9.62   |   | (      |   |
|                                |    | 11.10) |   |        |   | 25.56) |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
| Net Income (Loss)              | %  | (1     |   | 236.62 |   | (      |   |
|                                |    | 23.67) |   |        |   | 74.58) |   |
+--------------------------------+----+--------+---+--------+---+--------+---+
|                                |    |        |   |        |   |        |   |
+--------------------------------+----+--------+---+--------+---+--------+---+

  * At the time of printing this report, the omission of dividend
  payment for the year ended December 31, 2011 had been proposed by the
  Board of Directors but had not been approved by the Annual General
  Meeting.

+--------------------------------+----+--------+---+--------+---+--------+---+---+
| SEPARATE FINANCIAL RATIOS      |    |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
|                                |    | Se     |   |        |   |        |   |   |
|                                |    | parate |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
|                                |    | 2011   |   | 2010   |   | 2009   |   |   |
|                                |    |        |   |        |   |        |   |   |
|                                |    |        |   | (Res   |   | (Res   |   |   |
|                                |    |        |   | tated) |   | tated) |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Liquidity Ratios               |    |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Current Ratio                  | T  | 0.66   |   | 2.43   |   | 0.78   |   |   |
|                                | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Quick Ratio                    | T  | 0.06   |   | 1.88   |   | 0.18   |   |   |
|                                | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Cash Flow From Operating       | T  | 0.29   |   | (0.04) |   | 0.44   |   |   |
| Activities Ratio               | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Receivables Turnover           | T  | 5.04   |   | 1.07   |   | 1.48   |   |   |
|                                | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Collection Period              | Da | 71.43  |   | 336.45 |   | 243.24 |   |   |
|                                | ys |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Inventory Turnover             | T  | 33.07  |   | 2.29   |   | 0.95   |   |   |
|                                | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Inventory Turnover Period      | Da | 10.89  |   | 157.21 |   | 378.95 |   |   |
|                                | ys |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Accounts Payable Turnover      | T  | 0.79   |   | 0.47   |   | 0.52   |   |   |
|                                | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Payment Period                 | Da | 455.70 |   | 765.96 |   | 692.31 |   |   |
|                                | ys |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Cash Cycle                     | Da | (3     |   | (2     |   | (      |   |   |
|                                | ys | 73.38) |   | 72.30) |   | 70.12) |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Profitability Ratios           |    |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Gross Profit Margin            | %  | 53.00  |   | 70.13  |   | 71.85  |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Profit Margin from Operations  | %  | 450.35 |   | 1,     |   | 285.79 |   |   |
|                                |    |        |   | 295.47 |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Net Profit Margin              | %  | 59.42  |   | 41.24  |   | 65.24  |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Return On Equity               | %  | 11.75  |   | 10.86  |   | 11.26  |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
|                                |    |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Efficiency Ratios              |    |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Return On Total Assets         | %  | 9.28   |   | 8.17   |   | 8.50   |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Return On Fixed Assets         | %  | 202.59 |   | 84.77  |   | 42.95  |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
| Asset Turnover                 | T  | 0.16   |   | 0.20   |   | 0.13   |   |   |
|                                | im |        |   |        |   |        |   |   |
|                                | es |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+
|                                |    |        |   |        |   |        |   |   |
+--------------------------------+----+--------+---+--------+---+--------+---+---+

+-------------------------------+----+----------+---+--------+---+--------+---+
| SEPARATE FINANCIAL RATIOS     |    |          |   |        |   |        |   |
| (Continued)                   |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
|                               |    | Separate |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
|                               |    | 2011     |   | 2010   |   | 2009   |   |
|                               |    |          |   |        |   |        |   |
|                               |    |          |   | (Res   |   | (Res   |   |
|                               |    |          |   | tated) |   | tated) |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Financial Policy Ratios       |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Debt To Equity                | T  | 0.21     |   | 0.31   |   | 0.35   |   |
|                               | im |          |   |        |   |        |   |
|                               | es |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Interest Coverage             | T  | 14.00    |   | 1.05   |   | 7.11   |   |
|                               | im |          |   |        |   |        |   |
|                               | es |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Payout Ratio (Cash Basis)     | T  | 0.07     |   | (0.02) |   | 0.17   |   |
|                               | im |          |   |        |   |        |   |
|                               | es |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Dividend Payout Ratio*        | %  | -        |   | 257.65 |   | 53.52  |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
|                               |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Share value                   |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Book Value Per Share          | Ba | 30.32    |   | 36.38  |   | 35.09  |   |
|                               | ht |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Earnings Per Share            | Ba | 3.92     |   | 3.88   |   | 4.11   |   |
|                               | ht |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Dividend Per Share*           | Ba | -        |   | 10.00  |   | 2.20   |   |
|                               | ht |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
|                               |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Growth rate                   |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Total Assets                  | %  | (23.07)  |   | 0.95   |   | (4.40) |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Total Liabilities             | %  | (43.64)  |   | (6.91) |   | 5.47   |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Total Revenues                | %  | (29.95)  |   | 49.36  |   | (      |   |
|                               |    |          |   |        |   | 19.55) |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Total Expenses                | %  | (13.79)  |   | 15.48  |   | (      |   |
|                               |    |          |   |        |   | 45.02) |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
| Net Income (Loss)             | %  | 0.93     |   | (5.57) |   | (5.84) |   |
+-------------------------------+----+----------+---+--------+---+--------+---+
|                               |    |          |   |        |   |        |   |
+-------------------------------+----+----------+---+--------+---+--------+---+

* At the time of printing this report, the omission of dividend payment
for the year ended December 31, 2011 had been proposed by the Board of
Directors but had not been approved by the Annual General Meeting.

2.  Explanation and Analysis by Management

  For the year ended 31^(st) December 2011, Laguna Resorts & Hotels
  Public Company Limited recorded a loss of Baht 224 million as compared
  to a Baht 945 million profit in the prior year.

  Total revenue for the year was Baht 3,598 million, a decrease of Baht
  2,354 million as compared to the previous year mainly due to the
  following:

-   Revenue from hotel operations decreased by Baht 269 million. This
    was mainly due to the sale of Laguna Beach Resort in May 2011 and
    the closure from 1 July 2011 of the former Sheraton Grande Laguna
    Phuket for extensive renovation and refurbishment prior to reopening
    as the Angsana Laguna Phuket in mid December 2011.

-   Revenue from property development operations decreased by Baht 486
    million mainly due to limited sales income from the property sales
    as a result of the continuing uncertainty in the world economy and
    Thailand’s political situation affecting investor confidence and the
    decrease in holiday club revenue due to branch closures.

-   Revenue from office rental operations increased by Baht 10 million
    mainly due to an increase in tenant occupancy.

-   Gain from the sale of Dusit Thani Laguna Phuket amounting to Baht
    1,601 million in 2010 related to gain from the divestment of Dusit
    Thani Laguna Phuket.

-   Gain from sale of investments amounting to Baht 45 million in 2011
    representing a sale of investments in 2 subsidiaries in May 2011.

-   Interest income decreased by Baht 12 million, mainly due to a
    decrease in accounts receivable of property buyers.

-   Insurance claim revenue amounting to Baht 56 million in 2010 relates
    to the final settlement of an insurance claim relating to the
    tsunami in 2004.

-   Other income increased by Baht 15 million, mainly due to gain from a
    fair value adjustment of investment properties in 2011.

  Total expenses for the year were Baht 3,723 million, a decrease of
  Baht 465 million as compared to the previous year, mainly due to the
  following:

-   Cost of hotel operations decreased by Baht 73 million, mainly due to
    the decrease in hotel revenue from the sale of Laguna Beach Resort
    and the closure of the former Sheraton Grande Laguna Phuket hotel
    for renovation.

-   Cost of property development operations decreased by Baht 150
    million mainly due to the decrease in property revenue and revenue
    of the holiday club business.

-   Selling expenses decreased by Baht 38 million, mainly due to some
    branch closures of Laguna Holiday Club.

-   Administration expenses decreased by Baht 35 million, mainly due to
    the sale of Laguna Beach Resort and the closure of the former
    Sheraton Grande Laguna Phuket hotel for renovation; offset by the
    reversal of a provision for doubtful accounts in the prior year.

-   Depreciation decreased by Baht 78 million, mainly due to assets
    which were fully depreciated in 2010 and a decrease of depreciation
    of Laguna Beach Resort which was sold in May 2011.

-   Loss on termination of property sales in the prior year amounting to
    Baht 91 million related to units which were previously sold and
    recognized during 2007 - 2008.

  Share of profit from investment in associate, amounting to Baht 174
  million in 2011 compared to the share of loss amounting to Baht 15
  million in 2010, was due to the higher of profit of Lijiang Banyan
  Tree Hotel Co. Ltd.

  Corporate income tax decreased by Baht 585 million as compared to the
  previous year mainly due to gain on the sale of Dusit Thani Laguna
  Phuket in prior year and lower of profit of the former Sheraton Grande
  Laguna Phuket hotel which has been closed for renovation in July 2011.

  Profit after tax for the year from discontinued operation amounting to
  Baht 64 million in 2010, represented the operating result of the Dusit
  Thani Laguna Phuket hotel, which was sold in October 2010.

For the reasons stated above, the company has shown a loss as compared
to a profit in the previous year.

Hotel Operations

  (Unit: Million Baht)

+----------------------+---------+------+-------+-----+------+------+
|                      | 2011    | %    | 2010  | %   | 2009 | %    |
+----------------------+---------+------+-------+-----+------+------+
| Revenues             | 2,828   | 100  | 3,097 | 100 | 2    | 100  |
|                      |         |      |       |     | ,826 |      |
| Expenses             | 1,204   | 43   | 1,277 | 41  |      | 42   |
|                      |         |      |       |     | 1    |      |
| Gross Operating      | 1,624   | 57   | 1,820 | 59  | ,200 | 58   |
| Profit               |         |      |       |     |      |      |
|                      |         |      |       |     | 1    |      |
|                      |         |      |       |     | ,626 |      |
+----------------------+---------+------+-------+-----+------+------+

 

  Hotel revenues were Baht 269 million and expenses were Baht 73 million
  lower than last year resulting in operating profit being Baht 196
  million lower than last year. The operating margin of 57 percent was
  similar the prior year level of 59 percent and the 2009 level of 58
  percent. The main reasons for this were:

-   A decrease in revenue of the Laguna Phuket operations is due to the
    sale of Laguna Beach Resort in May 2011 and the closure from 1 July
    2011 of the former Sheraton Grande Laguna Phuket for extensive
    renovation and refurbishment prior to reopening as the Angsana
    Laguna Phuket in mid December 2011.

-   A decrease in the Cost of hotel operations mainly due to the
    decrease in hotel revenue from the sale of Laguna Beach Resort and
    the closure of the former Sheraton Grande Laguna Phuket hotel for
    renovation.

  Property Sales and Holiday Club Membership Operations

(Unit: Million Baht)

+--------------------+--------+-------+-------+-------+-------+------+
|                    | 2011   | %     | 2010  | %     | 2009  | %    |
+--------------------+--------+-------+-------+-------+-------+------+
| Revenues           | 577    | 100   | 1,063 | 100   | 1,310 | 100  |
|                    |        |       |       |       |       |      |
| Expenses           | 225    | 39    | 375   | 35    | 433   | 33   |
|                    |        |       |       |       |       |      |
| Gross Operating    | 352    | 61    | 688   | 65    | 877   | 67   |
| Profit             |        |       |       |       |       |      |
+--------------------+--------+-------+-------+-------+-------+------+

  Revenues were Baht 486 million and expenses were Baht 150 million
  lower than last year resulting in operating profit being Baht 336
  million lower than last year. The operating margin of 61 percent was
  lower than the 2010 level and the 2009 level of 65 percent and 67
  percent, respectively. The main reasons for this were:

-   Limited sales from the property sales as a result of the continuing
    uncertainty in the world economy and local political situation
    affecting investor confidence and the decrease in holiday club
    revenue due to branch closures.

  Balance Sheet

  The main balance sheet items at 31 December 2011 and 2010 are as
  follows:

(Unit: Million Baht)

+---------------------------+-------+----------------+----------------+
|                           | Note  | 31 December    | 31 December    |
|                           |       | 2011           | 2010           |
|                           |       |                |                |
|                           |       |                | (Restated)     |
+---------------------------+-------+----------------+----------------+
| Cash and cash equivalents | 1     | 479            | 2,021          |
+---------------------------+-------+----------------+----------------+
| Trade and other           | 2     | 494            | 622            |
| receivables               |       |                |                |
+---------------------------+-------+----------------+----------------+
| Property development cost | 3     | 2,631          | 2,772          |
+---------------------------+-------+----------------+----------------+
| Other long term           | 4     | 319            | 280            |
| investments               |       |                |                |
+---------------------------+-------+----------------+----------------+
| Property, plant,          | 5     | 13,027         | 14,693         |
| equipment and land        |       |                |                |
+---------------------------+-------+----------------+----------------+
| Loans from banks          | 6     | 3,201          | 2,535          |
+---------------------------+-------+----------------+----------------+
| Shareholders’ equity      | 7     | 14,589         | 17,221         |
+---------------------------+-------+----------------+----------------+

  The main points to be noted in regard to the Balance Sheet movements
  in the year ended 31 December 2011 are:

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

2.  The decrease in accounts receivable balances is due to the decrease
    in property sales receivables, time share receivables and hotel
    receivables.

3.  The decrease in property development cost is mainly due to sale
    during the year, transfer Laguna Village Clubhouse to fixed assets
    offset against increase in construction cost of the Lofts project.

4.  The increase in other long term investment is due to the additional
    investment in Banyan Tree Indochina Hospitality Fund during the
    year.

5.  The decrease in property, plant, equipment and land is mainly due to
    sale of Laguna Beach Resort and transfer land, office building and
    other building to investment property.

6.  Loans from banks have increased in 2011 due to drawdown short-term
    loan and long term loan.

7.  The decrease in shareholders’ equity is mainly due to loss for the
    year 2011 amounting to Baht 224 million and dividend paid of Baht
    1,769 million.

  Cash Flows

  The cash and cash equivalents of Baht 479 million at 31 December 2011
  represented a Baht 1,542 million decrease as compared to 31 December
  2010. The main components of cash used during the year are net cash
  used by operations amounting to Baht 459 million. This was largely a
  function of loss for the year adjusted for depreciation and working
  capital movements.

  Cash received from the sale of investment amounted to Baht 710 million
  and cash received from repayment of employee loans and sales of fixed
  assets amounted to Baht 16 million. The draw down of long term loans
  of Baht 1,272 million were mainly used for the renovation of Angsana
  Laguna Phuket.

  Cash outflow comprised of expenditure on fixed assets of Baht 621
  million largely related to renovation of Angsana Laguna Phuket. The
  short term and scheduled long term loan repayments of Baht 607 million
  and dividend payment of Baht 1,769 million were the other components
  of the cash outflow.

  ---------------------------- --------- -- ------------------------- ---------
  Cash Inflow                  Million      Cash Outflow              Million
                               Baht                                   Baht

  Cash received from sale of   710          Cash flow from operations 459
  investment                                                          

  Cash received from repayment 16           Other investment          39
  of employee loans and sales                                         
  of fixed assets                                                     

  Dividend from associate      17           Payments made on          621
                                            construction              

  Short term and long term     1,272        Long term loan repayment  607
  loans draw down                                                     

  Decrease in restricted       2            Dividend payment          1,769
  deposits at financial                                               
  institution                                                         

  Decrease in cash and cash    1,542        Decrease in cash and cash 64
  equivalent                                equivalents of subsidiary 
                                            at the disposal date      

  Total                        3,559        Total                     3,559
  ---------------------------- --------- -- ------------------------- ---------

  Co

  Commentary on Consolidated Financial Ratios

  Liquidity ratios

-   Current ratio – This is lower in 2011 due to the decrease in cash
    for dividend payment on 2010 retained earnings amounting to Baht 10
    per share.

-   Quick ratio – This is lower in 2011 due to the decrease in cash for
    dividend payment on 2010 retained earnings amounting to Baht 10 per
    share. .

-   Cash flow from operating activities ratio – This is lower than the
    prior year levels due to lower revenue from hotel operations and
    property development operations.

-   Receivable turnover – This is higher than the prior year levels due
    to the lower revenue from hotel operations and property development
    operations coupled with lower average accounts receivable.

-   Collection period – This is lower than the prior year levels due to
    the lower revenue from hotel operations and property development
    operations coupled with lower average accounts receivables.

-   Inventory turnover – This is lower than the prior year levels due to
    lower direct cost coupled with lower average inventories.

-   Inventory turnover period – This is higher than the prior year
    levels due to the lower direct cost coupled with lower average
    inventories.

-   Accounts payable turnover – This is consistent with the prior year
    level.

-   Payment period – This is consistent with the prior year level.

-   Cash cycle – This is lower than the prior year levels due to shorter
    collection period for property sales, decrease inventory turnover
    period of hotel operation and longer payment period

  Profitability ratios

-   Gross profit margin – This is lower than the prior year levels due
    to lower revenue from hotel operations and property development
    operations.

-   Profit margin from operations – This is lower than the prior year
    level due to lower revenue from hotel operation and property
    development operations.

-   Net profit margin from operations and return on equity – This is
    lower in 2011 due to the lower revenue from hotel operations and
    property development operations.

  Efficiency ratios

-   Return on total assets, return on fixed assets and asset turnover –
    This is lower than the prior year levels due to lower revenue from
    hotel operations and property development operations.

  Financial policy ratios

-   Debt to equity – This is higher than the prior year due to decrease
    in equity for dividend payment on 2010 retained earnings amounting
    to Baht 10 per share.

-   Interest coverage – This is lower than the prior year due to the
    loss from operations.

-   Pay-out ratio (cash) – This decreased as compared to last year due
    to the loss form operation and cash for dividend payment on 2010
    retained earnings amounting to Baht 10 per share.

-   Dividend pay-out ratio – This is based on the dividend policy which
    is one-third of the consolidated net profit attributable to the
    shareholders and a variable component subject to the Board of
    Directors discretion on the availability of cash after taking into
    account major capital expenditure and debt repayment obligations.

    10.3 Auditors' Remuneration (for the fiscal year ended 31
    December 2011)

  1. Audit fees

  The Company and subsidiaries paid audit fees for the fiscal year to an
  audit firm which amounted to Baht 7,261,364 and subsidiaries paid
  audit fees to another audit firm which amounted to Baht 465,030. This
  amount does not include the audit fees paid by associated companies.

  2. Non-audit fees

  The subsidiaries paid non-audit fees for agreed upon procedures and
  other consultant fees for the fiscal year to an audit firm which
  amounted to Baht 256,367. There is no outstanding commitment to pay
  any fees in the future for uncompleted engagements relating to the
  year 2011.