12 Financial Position and Operating Results

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

12.1.1 Summary of auditors findings and significant accounting policies.

The name of Company’s and its subsidiaries’ Auditor for the 2005
Financial Statements is Rungnapa Lertsuwankul, Certified Public
Accountant (Thailand) No. 3516 of Ernst & Young Office Limited.

Conclusion of the Auditors Report

  For the year ended 31 December 2005

In summary, a clean audit report was issued.

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

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

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2005 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles

  For the year ended 31 December 2004

In summary, a clean audit report was issued.

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

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

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

  For the year ended 31 December 2003

In summary, a clean audit report was issued.

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

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

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

Accounting policies

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

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

    Revenue recognition

    (a) Revenue from hotel operations

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

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

  (b) Revenue from property development operations

  - Revenue from sale of land and houses

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

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

- Revenue from sales of furniture in condominium units

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

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

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

(c) Revenue from rental service

  Rental income is recognized over the lease period and the related
  service income is recognized when service are rendered.

    Cost of land and houses sold

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

    Cash and cash equivalents

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

    Trade accounts receivable and allowance for doubtful accounts

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

    Property development cost

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

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

    Inventories

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

    Investments

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

    Other long-term investments

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

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

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

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

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

  Property, plant and equipment

(a) Hotel properties

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

  (b) Other fixed assets/land awaiting development

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

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

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

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

    Depreciation

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

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

  Furniture, fixtures and equipment                5 – 15          Years

  Operating and office equipment                   3 – 10          Years

  Golf course                                      5 – 10          Years

  Motor vehicles                                   5               Years
  ------------------------------------------------ --------------- -------

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

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

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

    Leasehold rights and amortisation

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

  Land 40 years

  Hotel units 20 years

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

    Goodwill and negative goodwill

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

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

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

    Foreign currencies

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

Exchange gains and losses are included in determining earnings.

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

    Provident fund

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

    Basic earnings per share

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

    Use of accounting estimates

Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates for
certain accounting transactions, impacting amounts reported in the
financial statements and notes related thereto. Subsequent actual
results may differ from these estimates.

12.1.2 Summary of financial statements

Consolidated Statements of Earnings 

 Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | Cons     |          |          |
|                                   |   | olidated |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2005     | 2004     | 2003     |
+-----------------------------------+---+----------+----------+----------+
| REVENUES                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from hotel operations  |   | 2,305    | 2,803    | 2,443    |
|                                   |   | ,533,119 | ,596,825 | ,245,997 |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from property          |   | 750      | 1,051    | 541      |
|   development operations          |   | ,134,469 | ,813,670 | ,406,380 |
+-----------------------------------+---+----------+----------+----------+
|   Revenues from office rental     |   | 100      | -        | -        |
|   operations                      |   | ,867,345 |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Interest income                 |   | 8        | 12       | 10       |
|                                   |   | ,868,924 | ,323,064 | ,470,050 |
+-----------------------------------+---+----------+----------+----------+
|   Reversal of provision for       |   | -        | 40       | -        |
|   impairment in value             |   |          | ,590,247 |          |
|                                   |   |          |          |          |
|   of other long term investment   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Other income                    |   | 40       | 51       | 64       |
|                                   |   | ,474,916 | ,127,932 | ,014,634 |
+-----------------------------------+---+----------+----------+----------+
| Total revenues                    |   | 3,205    | 3,959    | 3,059    |
|                                   |   | ,878,773 | ,451,738 | ,137,061 |
+-----------------------------------+---+----------+----------+----------+
| EXPENSES                          |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Direct hotel operations         |   | 2,192    | 1,944    | 1,742    |
|   expenses                        |   | ,247,029 | ,449,076 | ,048,923 |
+-----------------------------------+---+----------+----------+----------+
|   Direct cost of property         |   | 486      | 561      | 294      |
|   development operations          |   | ,394,668 | ,602,288 | ,688,708 |
+-----------------------------------+---+----------+----------+----------+
|   Direct cost of office rental    |   | 53       | -        | -        |
|   operations                      |   | ,814,772 |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Selling and administrative      |   | 263      | 232      | 214      |
|   expenses                        |   | ,585,463 | ,793,131 | ,962,412 |
+-----------------------------------+---+----------+----------+----------+
|   Directors’ remuneration         |   | 8        | 10       | 6        |
|                                   |   | ,563,681 | ,903,596 | ,847,699 |
+-----------------------------------+---+----------+----------+----------+
|   Foreign exchange loss           |   | 38       | 8        | 22       |
|                                   |   | ,804,420 | ,105,024 | ,382,872 |
+-----------------------------------+---+----------+----------+----------+
| Total expenses                    |   | 3,043    | 2,757    | 2,280    |
|                                   |   | ,410,033 | ,853,115 | ,930,614 |
+-----------------------------------+---+----------+----------+----------+
| Earnings before interest expenses |   | 162      | 1,201    | 778      |
| and income tax                    |   | ,468,740 | ,598,623 | ,206,447 |
+-----------------------------------+---+----------+----------+----------+
| Interest expenses                 |   | (138,    | (39,     | (57,     |
|                                   |   | 102,723) | 813,346) | 169,203) |
+-----------------------------------+---+----------+----------+----------+
| Corporate income tax              |   | (46,     | (156,    | (158,    |
|                                   |   | 517,226) | 574,480) | 553,338) |
+-----------------------------------+---+----------+----------+----------+
| (Loss) earnings after income tax  |   | (22,     | 1,005    | 562      |
|                                   |   | 151,209) | ,210,797 | ,483,906 |
+-----------------------------------+---+----------+----------+----------+
| Net earnings of minority interest |   | (11,     | (78,     | (61,     |
| in subsidiaries                   |   | 748,527) | 821,362) | 927,759) |
+-----------------------------------+---+----------+----------+----------+
| Net (loss) earnings before        |   | (33,     | 926      | 500      |
| extraordinary item                |   | 899,736) | ,389,435 | ,556,147 |
+-----------------------------------+---+----------+----------+----------+
| Extraordinary item - provision    |   |          |          |          |
| for impairment                    |   |          |          |          |
|                                   |   |          |          |          |
| of fixed assets, attributable to  |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| - Reversal of provision /         |   | 16       | (45,     | -        |
| (expenses)                        |   | ,230,665 | 000,000) |          |
+-----------------------------------+---+----------+----------+----------+
| - Minority interest               |   | (2,      | 4        | -        |
|                                   |   | 110,670) | ,000,000 |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 14       | (41,     | -        |
|                                   |   | ,119,995 | 000,000) |          |
+-----------------------------------+---+----------+----------+----------+
| Net (loss) earnings for the year  |   | (19,     | 885      | 500      |
|                                   |   | 779,741) | ,389,435 | ,556,147 |
+-----------------------------------+---+----------+----------+----------+

 

Consolidated Statements of Earnings (continued)

Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | Cons     |          |          |
|                                   |   | olidated |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2005     | 2004     | 2003     |
+-----------------------------------+---+----------+----------+----------+
| Basic earnings per share          |   | (0.40)   | 10.94    | 5.91     |
|                                   |   |          |          |          |
|   Net (loss) earnings before      |   |          |          |          |
|   extraordinary item              |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Extraordinary item              |   | 0.17     | (0.48)   | -        |
+-----------------------------------+---+----------+----------+----------+
|   Net (loss) earnings for the     |   | (0.23)   | 10.46    | 5.91     |
|   year                            |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+

Consolidated Balance Sheets

Unit : Baht

+------------------------------------+---+----------+----------+---+----------+
|                                    |   | Cons     |          |   |          |
|                                    |   | olidated |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|                                    |   | 2005     | 2004     |   | 2003     |
+------------------------------------+---+----------+----------+---+----------+
| ASSETS                             |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Current Assets                     |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Cash and cash equivalents        |   | 631      | 515      |   | 390      |
|                                    |   | ,203,629 | ,919,381 |   | ,887,127 |
+------------------------------------+---+----------+----------+---+----------+
|   Current investment fixed         |   | 38       | 40       |   | 37       |
|   deposits with financial          |   | ,629,232 | ,805,486 |   | ,914,560 |
|   institutions                     |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Trade accounts receivable – net  |   | 810      | 858      |   | 586      |
|                                    |   | ,689,304 | ,137,461 |   | ,482,978 |
+------------------------------------+---+----------+----------+---+----------+
|   Amounts due from related         |   | 24       | 26       |   | 47       |
|   companies                        |   | ,464,334 | ,100,819 |   | ,081,121 |
+------------------------------------+---+----------+----------+---+----------+
|   Inventories – net                |   | 144      | 127      |   | 106      |
|                                    |   | ,610,503 | ,630,558 |   | ,609,895 |
+------------------------------------+---+----------+----------+---+----------+
|   Property development cost – net  |   | 218      | 141      |   | 121      |
|                                    |   | ,519,056 | ,364,525 |   | ,553,309 |
+------------------------------------+---+----------+----------+---+----------+
|   Other current assets             |   | 211      | 62       |   | 51       |
|                                    |   | ,215,265 | ,992,946 |   | ,389,407 |
+------------------------------------+---+----------+----------+---+----------+
| Total current assets               |   | 2,079    | 1,772    |   | 1,341    |
|                                    |   | ,331,323 | ,951,176 |   | ,918,397 |
+------------------------------------+---+----------+----------+---+----------+
| Non Current Assets                 |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Restricted deposits at financial |   | 2        | 2        |   | -        |
|   institution                      |   | ,000,000 | ,000,000 |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Long term trade accounts         |   | 35       | 39       |   | 48       |
|   receivable                       |   | ,231,689 | ,627,436 |   | ,230,567 |
+------------------------------------+---+----------+----------+---+----------+
|   Other long term investments      |   | 210      | 219      |   | 216      |
|                                    |   | ,399,386 | ,318,614 |   | ,684,519 |
+------------------------------------+---+----------+----------+---+----------+
|   Property, plant and equipment –  |   | 9,485    | 6,647    |   | 6,327    |
|   net                              |   | ,355,231 | ,517,339 |   | ,808,513 |
+------------------------------------+---+----------+----------+---+----------+
|   Land awaiting development        |   | 639      | 700      |   | 658      |
|                                    |   | ,390,200 | ,335,000 |   | ,266,855 |
+------------------------------------+---+----------+----------+---+----------+
|   Leasehold rights                 |   | 125      | 124      |   | 117      |
|                                    |   | ,805,115 | ,656,114 |   | ,746,242 |
+------------------------------------+---+----------+----------+---+----------+
|   Goodwill / (Negative goodwill)   |   | 20       | (14,     |   | (9,      |
|                                    |   | ,816,789 | 356,262) |   | 198,019) |
+------------------------------------+---+----------+----------+---+----------+
|   Other non current assets         |   | 19       | 18       |   | 16       |
|                                    |   | ,729,185 | ,378,330 |   | ,921,717 |
+------------------------------------+---+----------+----------+---+----------+
| Total non-current assets           |   | 10,538   | 7,737    |   | 7,376    |
|                                    |   | ,727,595 | ,476,571 |   | ,460,394 |
+------------------------------------+---+----------+----------+---+----------+
| TOTAL ASSETS                       |   | 12,618   | 9,510    |   | 8,718    |
|                                    |   | ,058,918 | ,427,747 |   | ,378,791 |
+------------------------------------+---+----------+----------+---+----------+
| LIABILITIES AND SHAREHOLDERS'      |   |          |          |   |          |
| EQUITY                             |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
| Current liabilities                |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+
|   Short-term loans from financial  |   | 590      | 60       |   | 210      |
|   institutions                     |   | ,000,000 | ,000,000 |   | ,000,000 |
+------------------------------------+---+----------+----------+---+----------+
|   Trade accounts payable           |   | 257      | 206      |   | 138      |
|                                    |   | ,011,277 | ,182,872 |   | ,495,403 |
+------------------------------------+---+----------+----------+---+----------+
|   Current portion of long-term     |   | 607      | 300      |   | 320      |
|   loans                            |   | ,929,000 | ,000,000 |   | ,000,000 |
+------------------------------------+---+----------+----------+---+----------+
|   Amounts due to related companies |   | 63       | 51       |   | 55       |
|                                    |   | ,401,328 | ,534,241 |   | ,156,045 |
+------------------------------------+---+----------+----------+---+----------+
|   Corporate income tax payable     |   | 23       | 74       |   | 82       |
|                                    |   | ,111,420 | ,385,956 |   | ,423,436 |
+------------------------------------+---+----------+----------+---+----------+
|   Other current liabilities        |   | 749      | 574      |   | 524      |
|                                    |   | ,658,928 | ,171,509 |   | ,892,908 |
+------------------------------------+---+----------+----------+---+----------+
| Total current liabilities          |   | 2,291    | 1,266    |   | 1,330    |
|                                    |   | ,111,953 | ,274,578 |   | ,967,792 |
+------------------------------------+---+----------+----------+---+----------+
|                                    |   |          |          |   |          |
+------------------------------------+---+----------+----------+---+----------+

Consolidated Balance Sheets (continued)

Unit : Baht

+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   |   | Conso   |          |          |
|                                     |   |   |   | lidated |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   | 2 |         | 2004     | 2003     |
|                                     |   |   | 0 |         |          |          |
|                                     |   |   | 0 |         |          |          |
|                                     |   |   | 5 |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| LIABILITIES AND SHAREHOLDERS’EQUITY |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| Non Current liabilities             |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Long-term loans from related      |   |   |   | 180,    | -        | 5        |
|   companies                         |   |   |   | 252,794 |          | ,746,255 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Long-term loans – net of current  |   |   |   | 2,486,  | 400      | 690      |
|   portion                           |   |   |   | 858,743 | ,000,000 | ,000,000 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Other non current liabilities     |   |   |   | 70,     | 43       | 36       |
|                                     |   |   |   | 726,964 | ,171,285 | ,617,832 |
+-------------------------------------+---+---+---+---------+----------+----------+
| Total non-current liabilities       |   |   |   | 2,737,  | 443      | 732      |
|                                     |   |   |   | 838,501 | ,171,285 | ,364,087 |
+-------------------------------------+---+---+---+---------+----------+----------+
| TOTAL LIABILITIES                   |   |   |   | 5,028,  | 1,709    | 2,063    |
|                                     |   |   |   | 950,454 | ,445,863 | ,331,879 |
+-------------------------------------+---+---+---+---------+----------+----------+
| Shareholders' equity                |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Share capital                     |   |   |   | 846,    | 846      | 846      |
|                                     |   |   |   | 701,430 | ,701,430 | ,701,430 |
|   Registered                        |   |   |   |         |          |          |
|                                     |   |   |   |         |          |          |
|   84,670,143 ordinary shares of     |   |   |   |         |          |          |
|   Baht 10 each                      |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Issued and paid-up                |   |   |   | 846,    | 846      | 846      |
|                                     |   |   |   | 701,430 | ,701,430 | ,701,430 |
|   84,670,143 ordinary shares of     |   |   |   |         |          |          |
|   Baht 10 each                      |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Premium on ordinary shares        |   |   |   | 2,062,  | 2,062    | 2,062    |
|                                     |   |   |   | 460,582 | ,460,582 | ,460,582 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Other surpluses                   |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Capital reserve                   |   |   |   | 634,    | 634      | 634      |
|                                     |   |   |   | 698,720 | ,698,720 | ,698,720 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Revaluation surplus               |   |   |   | 1,888,  | 1,985    | 1,592    |
|                                     |   |   |   | 359,140 | ,987,993 | ,803,768 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Unrealised (loss) gain on         |   |   |   | (28,8   | 393,328  | 38       |
|   available-for-sale securities     |   |   |   | 56,095) |          | ,349,480 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Currency translation differences  |   |   |   | 104,    | 84       | 84       |
|                                     |   |   |   | 869,520 | ,829,377 | ,371,915 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Retained earnings                 |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Appropriated – statutory reserve  |   |   |   | 84,     | 84       | 84       |
|                                     |   |   |   | 670,143 | ,670,143 | ,670,143 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Unappropriated                    |   |   |   | 1,240,  | 1,430    | 713      |
|                                     |   |   |   | 904,632 | ,024,659 | ,975,510 |
+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   |   | 1,325,  | 1,514    | 798      |
|                                     |   |   |   | 574,775 | ,694,802 | ,645,653 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Equity Attributable to company’s  |   |   |   | 6,833,  | 7,129    | 6,058    |
|   shareholders                      |   |   |   | 808,072 | ,766,232 | ,031,548 |
+-------------------------------------+---+---+---+---------+----------+----------+
|   Minority interests – equity       |   |   |   | 755,    | 671      | 597      |
|   attributable to                   |   |   |   | 300,392 | ,215,652 | ,015,364 |
|                                     |   |   |   |         |          |          |
|   Minority shareholders of          |   |   |   |         |          |          |
|   subsidiaries                      |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+
| Total shareholders' equity          |   |   |   | 7,589,  | 7,800    | 6,655    |
|                                     |   |   |   | 108,464 | ,981,884 | ,046,912 |
+-------------------------------------+---+---+---+---------+----------+----------+
| TOTAL LIABILITIES AND SHAREHOLDERS' |   |   |   | 12,618, | 9,510    | 8,718    |
| EQUITY                              |   |   |   | 058,918 | ,427,747 | ,378,791 |
+-------------------------------------+---+---+---+---------+----------+----------+
|                                     |   |   |   |         |          |          |
+-------------------------------------+---+---+---+---------+----------+----------+

Consolidated Statements of Cash Flows 

Unit : Baht

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

                                          2005              2004            2003

  Cash flows from (used in) operating                                       
  activities                                                                

  Net cash inflow (outflow) from          257,859,277       1,048,502,453   821,001,627
  operating activities                                                      

  Cash flows from (used in) investing                                       
  activities                                                                

  Net cash inflow (outflow) from          (1,012,035,992)   (237,000,956)   (265,598,423)
  investing activities                                                      

  Cash flows from (used in) financing                                       
  activities                                                                

  Net cash inflow (outflow) from          867,284,709       (683,578,317)   (409,687,434)
  financing activities                                                      

  Net increase in cash and cash           113,107,994       127,923,180     145,715,770
  equivalents                                                               

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

  Cash and cash equivalents at the end    669,832,861       556,724,867     428,801,687
  of the year                                                               

                                                                            

                                                                            

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

 

Company Statements of Earnings

Unit : Baht

+-------------------------------------+----------+----------+----------+
|                                     | The      |          |          |
|                                     | Company  |          |          |
|                                     | Only     |          |          |
+-------------------------------------+----------+----------+----------+
|                                     | 2005     | 2004     | 2003     |
+-------------------------------------+----------+----------+----------+
| REVENUES                            |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Revenues from hotel operations    | 288      | 443      | 381      |
|                                     | ,426,117 | ,335,461 | ,635,424 |
+-------------------------------------+----------+----------+----------+
|   Interest income                   | 51       | 1        | 402,084  |
|                                     | ,588,382 | ,193,828 |          |
+-------------------------------------+----------+----------+----------+
|   Other income                      | 79       | 24       | 33       |
|                                     | ,911,922 | ,422,992 | ,478,178 |
+-------------------------------------+----------+----------+----------+
|   Share of profit from investments  | 140      | 981      | 569      |
|   accounted                         | ,122,218 | ,542,281 | ,904,557 |
|                                     |          |          |          |
|   for under the equity method       |          |          |          |
+-------------------------------------+----------+----------+----------+
| Total revenues                      | 560      | 1,450    | 985      |
|                                     | ,048,639 | ,494,562 | ,420,243 |
+-------------------------------------+----------+----------+----------+
| EXPENSES                            |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Direct hotel operations expenses  | 262      | 295      | 258      |
|                                     | ,959,971 | ,411,500 | ,563,220 |
+-------------------------------------+----------+----------+----------+
|   Selling and administrative        | 212      | 162      | 157      |
|   expenses                          | ,347,633 | ,911,915 | ,643,575 |
+-------------------------------------+----------+----------+----------+
|   Directors’ remuneration           | 8        | 10       | 6        |
|                                     | ,563,681 | ,903,596 | ,847,699 |
+-------------------------------------+----------+----------+----------+
|   Foreign exchange loss             | 10       | 3        | 897,595  |
|                                     | ,670,416 | ,574,915 |          |
+-------------------------------------+----------+----------+----------+
| Total expenses                      | 494      | 472      | 423      |
|                                     | ,541,701 | ,801,926 | ,952,089 |
+-------------------------------------+----------+----------+----------+
| Earnings before interest expenses   | 65       | 977      | 561      |
| and income tax                      | ,506,938 | ,692,636 | ,468,154 |
+-------------------------------------+----------+----------+----------+
| Interest expenses                   | (99,     | (51,     | (60,     |
|                                     | 406,674) | 303,201) | 912,007) |
+-------------------------------------+----------+----------+----------+
| Net (loss) earnings before          | (33,     | 926      | 500      |
| extraordinary item                  | 899,736) | ,389,435 | ,556,147 |
+-------------------------------------+----------+----------+----------+
| Extraordinary item - provision for  |          |          |          |
| impairment                          |          |          |          |
|                                     |          |          |          |
| of fixed assets, attributable to    |          |          |          |
+-------------------------------------+----------+----------+----------+
| - Share of profits from investment  | 6        | (21,     | -        |
| accounted                           | ,098,442 | 000,000) |          |
|                                     |          |          |          |
| for under the equity method         |          |          |          |
+-------------------------------------+----------+----------+----------+
| - Reversal of provision /           | 8        | (20,     | -        |
| (expenses)                          | ,021,553 | 000,000) |          |
+-------------------------------------+----------+----------+----------+
|                                     | 14       | (41,     | -        |
|                                     | ,119,995 | 000,000) |          |
+-------------------------------------+----------+----------+----------+
| Net (loss) earnings for the year    | (19,     | 885      | 500      |
|                                     | 779,741) | ,389,435 | ,556,147 |
+-------------------------------------+----------+----------+----------+
| Basic earnings per share            | (0.40)   | 10.94    | 5.91     |
|                                     |          |          |          |
| Net (loss) earnigs before           |          |          |          |
| extraordinay item                   |          |          |          |
+-------------------------------------+----------+----------+----------+
|   Extraordinary item                | 0.17     | (0.48)   | -        |
+-------------------------------------+----------+----------+----------+
|   Net (loss) earnings for the year  | (0.23)   | 10.46    | 5.91     |
+-------------------------------------+----------+----------+----------+

Company Balance Sheets 

Unit : Baht

+-----------------------------------+---+----------+----------+----------+
|                                   |   | The      |          |          |
|                                   |   | Company  |          |          |
|                                   |   | Only     |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   | 2005     | 2004     | 2003     |
+-----------------------------------+---+----------+----------+----------+
| ASSETS                            |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Current Assets                    |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Cash and cash equivalents       |   | 53       | 45       | 40       |
|                                   |   | ,838,843 | ,303,078 | ,586,887 |
+-----------------------------------+---+----------+----------+----------+
|   Trade accounts receivable – net |   | 60       | 60       | 65       |
|                                   |   | ,367,391 | ,810,645 | ,503,956 |
+-----------------------------------+---+----------+----------+----------+
|   Amounts due from related        |   | 23       | 9        | 9        |
|   companies                       |   | ,163,063 | ,869,138 | ,415,553 |
+-----------------------------------+---+----------+----------+----------+
|   Inventories – net               |   | 17       | 11       | 9        |
|                                   |   | ,427,685 | ,874,246 | ,232,525 |
+-----------------------------------+---+----------+----------+----------+
|   Other current assets            |   | 13       | 12       | 11       |
|                                   |   | ,902,109 | ,907,492 | ,815,912 |
+-----------------------------------+---+----------+----------+----------+
| Total current assets              |   | 168      | 140      | 136      |
|                                   |   | ,699,091 | ,764,599 | ,554,833 |
+-----------------------------------+---+----------+----------+----------+
| Non Current Assets                |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Investment in subsidiaries      |   | 7,704    | 7,703    | 6,836    |
|   accounted                       |   | ,642,972 | ,459,048 | ,717,419 |
|                                   |   |          |          |          |
|   for under the equity method     |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Other long term investments     |   | 13       | 25       | 55       |
|                                   |   | ,674,001 | ,168,000 | ,855,000 |
+-----------------------------------+---+----------+----------+----------+
|   Long term loans to subsidiaries |   | 604      | 38       | 5        |
|                                   |   | ,500,000 | ,500,000 | ,901,950 |
+-----------------------------------+---+----------+----------+----------+
|   Property, plant and equipment – |   | 790      | 734      | 688      |
|   net                             |   | ,343,036 | ,665,597 | ,116,275 |
+-----------------------------------+---+----------+----------+----------+
|   Goodwill / (Negative goodwill)  |   | 20       | (14,     | (9,      |
|                                   |   | ,816,789 | 356,262) | 198,019) |
+-----------------------------------+---+----------+----------+----------+
|   Other non current assets        |   | 6        | 7        | 6        |
|                                   |   | ,601,116 | ,018,413 | ,531,084 |
+-----------------------------------+---+----------+----------+----------+
| Total non-current assets          |   | 9,140    | 8,494    | 7,583    |
|                                   |   | ,577,914 | ,454,796 | ,923,709 |
+-----------------------------------+---+----------+----------+----------+
| TOTAL ASSETS                      |   | 9,309    | 8,635    | 7,720    |
|                                   |   | ,277,005 | ,219,395 | ,478,542 |
+-----------------------------------+---+----------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'     |   |          |          |          |
| EQUITY                            |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
| Current liabilities               |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|   Short-term loans from financial |   | 397      | 60       | 200      |
|   institutions                    |   | ,000,000 | ,000,000 | ,000,000 |
+-----------------------------------+---+----------+----------+----------+
|   Trade accounts payable          |   | 42       | 33       | 26       |
|                                   |   | ,553,474 | ,449,873 | ,654,389 |
+-----------------------------------+---+----------+----------+----------+
|   Current portion of long-term    |   | 280      | 200      | 240      |
|   loans                           |   | ,000,000 | ,000,000 | ,000,000 |
+-----------------------------------+---+----------+----------+----------+
|   Amounts due to related          |   | 15       | 14       | 18       |
|   companies                       |   | ,535,529 | ,232,964 | ,318,129 |
+-----------------------------------+---+----------+----------+----------+
|   Other current liabilities       |   | 69       | 49       | 49       |
|                                   |   | ,133,720 | ,403,198 | ,285,901 |
+-----------------------------------+---+----------+----------+----------+
| Total current liabilities         |   | 804      | 357      | 534      |
|                                   |   | ,222,723 | ,086,035 | ,258,419 |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+
|                                   |   |          |          |          |
+-----------------------------------+---+----------+----------+----------+

Company Balance Sheets (continued)

Unit : Baht

+----------------------------------+---+----------+----------+----------+
|                                  |   | The      |          |          |
|                                  |   | Company  |          |          |
|                                  |   | Only     |          |          |
+----------------------------------+---+----------+----------+----------+
|                                  |   | 2005     | 2004     | 2003     |
+----------------------------------+---+----------+----------+----------+
| LIABILITIES AND SHAREHOLDERS'    |   |          |          |          |
| EQUITY                           |   |          |          |          |
|                                  |   |          |          |          |
| (continued)                      |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
| Non Current liabilities          |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Long-term loans from           |   | 890      | 937      | 719      |
|   subsidiaries                   |   | ,750,000 | ,550,000 | ,600,000 |
+----------------------------------+---+----------+----------+----------+
|   Long-term loans – net of       |   | 772      | 200      | 400      |
|   current portion                |   | ,000,000 | ,000,000 | ,000,000 |
+----------------------------------+---+----------+----------+----------+
|   Other non current liabilities  |   | 8        | 10       | 8        |
|                                  |   | ,496,210 | ,817,128 | ,588,575 |
+----------------------------------+---+----------+----------+----------+
| Total non-current liabilities    |   | 1,671    | 1,148    | 1,128    |
|                                  |   | ,246,210 | ,367,128 | ,188,575 |
+----------------------------------+---+----------+----------+----------+
| TOTAL LIABILITIES                |   | 2,475    | 1,505    | 1,662    |
|                                  |   | ,468,933 | ,453,163 | ,446,944 |
+----------------------------------+---+----------+----------+----------+
| Shareholders' equity             |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Share capital                  |   | 846      | 846      | 846      |
|                                  |   | ,701,430 | ,701,430 | ,701,430 |
|   Registered                     |   |          |          |          |
|                                  |   |          |          |          |
|   84,670,143 ordinary shares of  |   |          |          |          |
|   Baht 10 each                   |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Issued and paid-up             |   | 846      | 846      | 846      |
|                                  |   | ,701,430 | ,701,430 | ,701,430 |
|   84,670,143 ordinary shares of  |   |          |          |          |
|   Baht 10 each                   |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Premium on ordinary shares     |   | 2,062    | 2,062    | 2,062    |
|                                  |   | ,460,582 | ,460,582 | ,460,582 |
+----------------------------------+---+----------+----------+----------+
|   Other surpluses                |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Capital reserve                |   | 634      | 634      | 634      |
|                                  |   | ,698,720 | ,698,720 | ,698,720 |
+----------------------------------+---+----------+----------+----------+
|   Revaluation surplus            |   | 1,888    | 1,985    | 1,592    |
|                                  |   | ,359,140 | ,987,993 | ,803,768 |
+----------------------------------+---+----------+----------+----------+
|   Unrealised (loss) gain on      |   | (28,     | 393,328  | 38       |
|   available for sale securities  |   | 856,095) |          | ,349,480 |
+----------------------------------+---+----------+----------+----------+
|   Currency translation           |   | 104      | 84       | 84       |
|   differences                    |   | ,869,520 | ,829,377 | ,371,915 |
+----------------------------------+---+----------+----------+----------+
|   Retained earnings              |   |          |          |          |
+----------------------------------+---+----------+----------+----------+
|   Appropriated – statutory       |   | 84       | 84       | 84       |
|   reserve                        |   | ,670,143 | ,670,143 | ,670,143 |
+----------------------------------+---+----------+----------+----------+
|   Unappropriated                 |   | 1,240    | 1,430,   | 713      |
|                                  |   | ,904,632 | 024,,659 | ,975,510 |
+----------------------------------+---+----------+----------+----------+
|                                  |   | 1,325    | 1,514    | 798      |
|                                  |   | ,574,775 | ,694,802 | ,645,653 |
+----------------------------------+---+----------+----------+----------+
| Total shareholders' equity       |   | 6,833    | 7,129    | 6,058    |
|                                  |   | ,808,072 | ,766,232 | ,031,548 |
+----------------------------------+---+----------+----------+----------+
| TOTAL LIABILITIES AND            |   | 9,309    | 8,635    | 7,720    |
| SHAREHOLDERS' EQUITY             |   | ,277,005 | ,219,395 | ,478,542 |
+----------------------------------+---+----------+----------+----------+

 Company Statements of Cash Flows 

Unit : Baht

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

                                        2005            2004            2003

  Cash flows from (used in) operating                                   
  activities                                                            

  Net cash inflow (outflow) from        (96,716,120)    (14,275,943)    (18,554,196)
  operating activities                                                  

  Cash flows from (used in) investing                                   
  activities                                                            

  Net cash inflow (outflow) from        (667,607,829)   350,382,420     (152,288,532)
  investing activities                                                  

  Cash flows from (used in) financing                                   
  activities                                                            

  Net cash inflow (outflow) from        772,859,714     (331,390,286)   184,759,714
  financing activities                                                  

  Net increase in cash and cash         8,535,765       4,716,191       13,916,986
  equivalents                                                           

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

  Cash and cash equivalents at the end  53,838,843      45,303,078      40,586,887
  of the year                                                           

                                                                        

                                                                        

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

12.1.3 Financial ratios of the company and its subsidiaries

+------------------------------+-----+--------+---+--------+---+----------+---+
| CONSOLIDATED FINANCIAL       |     |        |   |        |   |          |   |
| RATIOS                       |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     | Consol |   |        |   |          |   |
|                              |     | idated |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     | 2005   |   | 2004   |   | 2003     |   |
|                              |     |        |   |        |   |          |   |
|                              |     |        |   |        |   | Restated |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Liquidity Ratio’s            |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Current Ratio                | Ti  | 0.91   |   | 1.40   |   | 1.01     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Quick Ratio                  | Ti  | 0.65   |   | 1.12   |   | 0.76     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Cash Flow From Operating     | Ti  | 0.14   |   | 0.81   |   | 0.66     |   |
| Activities Ratio             | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Receivables Turnover         | Ti  | 3.75   |   | 5.29   |   | 5.89     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Collection Period            | D   | 96.00  |   | 68.05  |   | 61.12    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Inventory Turnover           | Ti  | 16.11  |   | 16.60  |   | 16.07    |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Inventory Turnover Period    | D   | 22.35  |   | 21.69  |   | 22.40    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Accounts Payable Turnover    | Ti  | 9.47   |   | 11.28  |   | 14.04    |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Payment Period               | D   | 38.01  |   | 31.91  |   | 25.64    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Cash Cycle                   | D   | 80.33  |   | 57.82  |   | 57.88    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Profitability Ratio’s        |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Gross Profit Margin          | %   | 13.43  |   | 35.00  |   | 31.76    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Profit Margin from           | %   | 5.15   |   | 31.17  |   | 26.07    |   |
| Operations                   |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Net Profit Margin            | %   | (0.62) |   | 22.36  |   | 16.36    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Equity             | %   | (0.26) |   | 12.25  |   | 7.66     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Efficiency Ratio’s           |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Total Assets       | %   | (0.18) |   | 9.71   |   | 5.81     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Fixed Assets       | %   | 3.67   |   | 15.50  |   | 10.31    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Asset Turnover               | Ti  | 0.29   |   | 0.43   |   | 0.36     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+

+----------------------------+-----+----------+---+----------+---+----------+---+
| CONSOLIDATED FINANCIAL     |     |          |   |          |   |          |   |
| RATIOS(Continued)          |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | Cons     |   |          |   |          |   |
|                            |     | olidated |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | 2005     |   | 2004     |   | 2003     |   |
|                            |     |          |   |          |   |          |   |
|                            |     |          |   |          |   | Restated |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Financial Policy Ratio’s   |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Debt To Equity             | Ti  | 0.66     |   | 0.22     |   | 0.31     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Interest Coverage          | Ti  | 3.20     |   | 31.27    |   | 18.13    |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Payout Ratio (Cash Basis)  | Ti  | 0.05     |   | 1.30     |   | 0.97     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Payout Ratio      | %   | (856.13) |   | 19.13    |   | 33.83    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Share value’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Book Value Per Share       | B   | 89.63    |   | 92.13    |   | 78.60    |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Earnings (loss) Per Share  | B   | (0.23)   |   | 10.46    |   | 5.91     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Per Share         | B   | 2.00     |   | 2.00     |   | 2.00     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Growth rate’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Assets               | %   | 32.68    |   | 9.08     |   | 2.59     |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Liabilities          | %   | 194.19   |   | (17.15)  |   | (0.89)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Revenues             | %   | (19.03)  |   | 29.43    |   | 6.63     |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Expenses             | %   | 10.35    |   | 20.91    |   | (5.34)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Net Income (Loss)          | %   | (102.23) |   | 76.88    |   | 228.13   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+

+----------------------------+-----+---------+---+---------+---+---------+---+---+
| COMPANY FINANCIAL RATIOS   |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | Company |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | 2005    |   | 2004    |   | 2003    |   |   |
|                            |     |         |   |         |   |         |   |   |
|                            |     |         |   |         |   | R       |   |   |
|                            |     |         |   |         |   | estated |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Liquidity Ratio’s          |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Current Ratio              | Ti  | 0.21    |   | 0.39    |   | 0.26    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Quick Ratio                | Ti  | 0.14    |   | 0.30    |   | 0.20    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Flow From Operating   | Ti  | (0.17)  |   | (0.03)  |   | (0.04)  |   |   |
| Activities Ratio           | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Receivables Turnover       | Ti  | 4.62    |   | 6.82    |   | 5.50    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Collection Period          | D   | 77.98   |   | 52.80   |   | 65.47   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover         | Ti  | 17.95   |   | 27.99   |   | 28.06   |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover Period  | D   | 20.06   |   | 12.86   |   | 12.83   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Accounts Payable Turnover  | Ti  | 6.92    |   | 9.83    |   | 9.60    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Payment Period             | D   | 52.03   |   | 36.62   |   | 37.51   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Cycle                 | D   | 46.01   |   | 29.04   |   | 40.79   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profitability Ratio’s      |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Gross Profit Margin        | %   | 8.83    |   | 33.37   |   | 32.25   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profit Margin from         | %   | (25.87) |   | (0.87)  |   | (2.21)  |   |   |
| Operations                 |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Net Profit Margin          | %   | (4.71)  |   | 188.80  |   | 120.47  |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Equity           | %   | (0.28)  |   | 13.43   |   | 8.46    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Efficiency Ratio’s         |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Total Assets     | %   | (0.22)  |   | 10.83   |   | 6.77    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Fixed Assets     | %   | 2.07    |   | 129.49  |   | 77.28   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Asset Turnover             | Ti  | 0.05    |   | 0.06    |   | 0.06    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+

+----------------------------+-----+----------+---+----------+---+----------+---+
| COMPANY FINANCIAL RATIOS   |     |          |   |          |   |          |   |
| (Continued)                |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | Company  |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | 2005     |   | 2004     |   | 2003     |   |
|                            |     |          |   |          |   |          |   |
|                            |     |          |   |          |   | Restated |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Financial Policy Ratio’s   |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Debt To Equity             | Ti  | 0.36     |   | 0.21     |   | 0.27     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Interest Coverage          | Ti  | 0.03     |   | 0.72     |   | 0.70     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Payout Ratio (Cash Basis)  | Ti  | (0.09)   |   | (0.03)   |   | (0.03)   |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Payout Ratio      | %   | (856.13) |   | 19.13    |   | 33.83    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Share value’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Book Value Per Share       | B   | 80.71    |   | 84.21    |   | 71.55    |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Earnings (loss) Per Share  | B   | (0.23)   |   | 10.46    |   | 5.91     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Per Share         | B   | 2.00     |   | 2.00     |   | 2.00     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Growth rate’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Assets               | %   | 7.81     |   | 11.85    |   | 9.24     |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Liabilities          | %   | 64.43    |   | (9.44)   |   | 28.09    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Revenues             | %   | (10.45)  |   | 12.86    |   | (8.39)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Expenses             | %   | 4.60     |   | 11.52    |   | (4.09)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Net Income (Loss)          | %   | (102.23) |   | 76.88    |   | 228.13   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+

12.2 Explanation and Analysis by management

  The net loss attributable to the shareholders of Baht 20 million for
  the year ended 31^(st) December 2005 was Baht 905 million lower than
  the prior year. The reason for the loss was largely due to the
  performance of the 4 Laguna Phuket hotels and the property sales
  division being severely affected by the subsequent downturn of tourism
  to Phuket following the Tsunami in the Indian Ocean which hit Phuket
  on 26^(th) December 2004.

  This was only partially offset by the performance of the Banyan Tree
  Bangkok and the rental of office space in Thai Wah Tower I and Thai
  Wah Tower II in Bangkok which were purchased following the acquisition
  of Thai Wah Plaza Limited on 8 March 2005.

  Other points of note are that:

-   selling and administrative expenses increased by Baht 31 million
    primarily due to an increase in salary and wages and legal costs.
    The increase in legal costs primarily related to the acquisition of
    Thai Wah Plaza Limited, the insurance claim for property damage and
    business interruption from the Tsunami and land related cases.

-   foreign exchange loss of Baht 39 million which was Baht 31 million
    higher than the prior year which was due to the weakening of the
    Baht during 2005.

-   an increase of depreciation of Baht 100 million which was a
    consequence of the depreciation of the assets acquired of Banyan
    Tree Bangkok and Thai Wah Tower I and Thai Wah Tower II.

-   an increase in interest costs of Baht 98 million which was due to
    the loans taken out, and taken over, resulting from the acquisition
    of Thai Wah Plaza Limited, loans taken out to fund the construction
    of additional room inventory in Laguna Phuket and the construction
    of Banyan Tree Lijiang, and an increase in the interest rate during
    the year.

-   taxation was Baht 110 million lower than the prior year and this is
    due to the significantly reduced operating profit in 2005.

-   Net earnings of minority interest in subsidiaries was lower than the
    prior year due to the reduction in net income during the year for
    the respective hotel and gallery operations.

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

Hotel Operations

 (Unit: Million Baht)

  --------------- --------- --------- --------- --------- --------- ---------
                  2005      %         2004      %         2003      %

                                                                    

  Revenues        2,306     100.0%    2,804     100.0%    2,443     100.0%

                                                                    

  Expenses        2,192     95.1%     1,944     69.3%     1,742     71.3%

                                                                    

  Operating       114       4.9%      860       30.7%     701       28.7%
  Profit                                                            

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

  The Hotel operations revenues are Baht 498 million lower than the
  prior year and expenses are Baht 248 million higher than the prior
  year resulting in operating profit being Baht 746 million lower than
  last year. The operating margin of 4.9% is well below the last year
  level of 30.7%. The main reasons explaining this trend are:

-   The revenues and expenses of Banyan Tree Bangkok of Baht 516 million
    and Baht 482 million respectively are higher than prior year due to
    its acquisition in March 2005.

-   The revenues and expenses of the 4 hotels in Laguna Phuket are Baht
    1,014 million and Baht 268 million respectively lower than last year
    due to the aftermath of Tsunami disaster in December 2004 where all
    of the hotels experienced significant cancellations immediately
    after the Tsunami and very poor business levels in the first half
    of 2005. Although the recovery commenced in the second half of 2005,
    low promotional rates were put into the market to stimulate the
    recovery and by year end the business levels were still yet to
    achieve those of the prior year.

-   Food and Beverage revenues in Laguna Phuket decreased by 34% in 2005
    as compared to 2004 which was due to the lower occupancies
    experienced by the hotels with the average check remaining at the
    prior year level.

  Property Sales and Timeshare Operation

  (Unit : Million Baht)

  ---------------- --------- --------- --------- --------- --------- ---------
                   2005      %         2004      %         2003      %

                                                                     

  Revenues         750       100.0%    1,052     100.0%    541       100.0%

                                                                     

  Expenses         486       64.8%     562       53.4%     295       54.5%

                                                                     

  Operating Profit 264       35.2%     490       46.6%     246       45.5%

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

  Another significant area of revenue generation is Laguna Property
  Sales, both in direct villas, condominium, and house and land sales,
  and indirectly from the Laguna Holiday Club, a professional and
  successful time share operation. The Baht 269 million, or 32% lower
  revenue from the Property Sales division was due to the Phuket
  property market also suffering the impact of the Tsunami. The 2005
  revenue largely comprised on the completion of 24 Laguna Townhomes
  which were partially complete at the 31 December 2004, and the sale of
  10 Banyan Tree two bedroom pool villa’s. Sixteen Laguna Townhomes and
  two Laguna Residences were also sold in 2005 but construction of these
  commenced in the last quarter and as a result contributed little to
  the 2005 revenue and profit performance.

  The Laguna Holiday Club revenue was Baht 33 million, or 16%, lower
  than the prior year with the lower performance being attributable to
  the significantly reduced number of potential customers in Laguna
  Phuket and the negative perception of Phuket in the Bangkok market
  following the Tsunami.

  Balance Sheet

  The main balance sheet items at 31 December 2005 are as follows:

+-----------------------------+---------+--------------+--------------+
|                             | Note    | 31 December  | 31 December  |
|                             |         | 2005         | 2004         |
|                             |         |              |              |
|                             |         | Baht 000     | Baht 000     |
+-----------------------------+---------+--------------+--------------+
| Cash, cash equivalents and  | 1       | 669,833      | 556,725      |
| fixed deposits              |         |              |              |
+-----------------------------+---------+--------------+--------------+
| Trade accounts receivable   | 2       | 810,689      | 858,137      |
+-----------------------------+---------+--------------+--------------+
| Other investments           | 3       | 210,399      | 219,319      |
+-----------------------------+---------+--------------+--------------+
| Property, equipment and     | 4       | 10,124,745   | 7,347,852    |
| land                        |         |              |              |
+-----------------------------+---------+--------------+--------------+
| Property Development Cost   | 5       | 218,519      | 141,365      |
+-----------------------------+---------+--------------+--------------+
| Loans from banks            | 6       | 3,684,788    | 760,000      |
+-----------------------------+---------+--------------+--------------+
|                             |         |              |              |
+-----------------------------+---------+--------------+--------------+

  The main points of note in regard to the Balance Sheet movements in
  the year ended 31 December 2005 are:

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

2.  The decrease in accounts receivable balances is due to the reduction
    in property sales and Laguna Phuket hotels debtors partially offset
    by the debtors of Banyan Tree Bangkok which was purchased in March
    2005.

3.  Other investments decreased in 2005 due to the reduction in share
    price of Thai Wah Public Company Limited which is marked to market.

4.  The increase in property, plant and & equipment is due to the
    purchase of Thai Wah Plaza Limited which comprised the Banyan Tree
    Bangkok and Thai Wah Towers I and II. In addition the Banyan Tree
    Lijiang, the Double Pool Villas at the Banyan Tree Phuket and the
    Sheraton Grande expansion and renovation were all in progress at
    year end.

5.  The increase in Property Development Cost in 2005 is due to the
    building of the Laguna Holiday Club Hotel and the infrastructure of
    the current Property Sales projects.

6.  Loans from banks have increased significantly in 2005 due to loans
    taken out to finance the capital purchases outlined in (4) above,
    the loans taken over via the purchase of Thai Wah Plaza Limited and
    short term loans taken out to provide additional cashflow in the
    difficult operating conditions subsequent to the Tsunami.

Cash Flows

The cash and cash equivalents of Baht 670 million at 31 December 2005
represented a Baht 113 million increase as compared to 31 December 2004.
The main components of cash generated during the year are as follows:

-   Net cash generated by operations amounted to Baht 258 million and is
    largely a function of net earnings for the year adjusted for
    depreciation and working capital movements.

-   Expenditure on fixed assets amounted to Baht 1,030 million and
    largely related to the construction projects in Laguna Phuket and
    Banyan Tree Lijiang.

-   investment in Thai Wah Plaza Limited of Baht 41 million;

-   payment of Baht 2 per share dividend;

-   short term loans taken out of Baht 530 million;

-   long term loans taken out of Baht 1,727 million;

-   scheduled loan repayments of Baht 370 million; and

-   a loan received from a related party to assist in the financing of
    the Banyan Tree Lijiang of Baht 180 million.

Commentary on Consolidated Financial Ratios

Liquidity ratios

-   Current ratio – this is lower in 2005 due to the increase in
    short-term loans and the increase in the current portion of long
    term loans.

-   Quick ratio – worsening position in 2005 is due to the increase in
    short-term loans and the increase in the current portion of long
    term loans.

-   Cash flow from operating activities – this is lower than the prior
    year levels due to the lower profitability in 2005.

-   Receivable turnover – the worsening position in 2005 is due to the
    year end receivables including the receivables for the high season
    which was nearly back to normal whereas the turnover for the full
    year was very adversely affected by the Tsunami.

-   Collection period – the worsening position in 2005 is due to the
    year end receivables including the receivables for the high season
    which was nearly back to normal whereas the turnover for the full
    year was very adversely affected by the Tsunami.

-   Inventory turnover – trend is consistent with prior year levels

-   Inventory turnover period – trend is consistent with prior year
    levels.

-   Accounts payable turnover – the worsening of this ratio is due to
    the average payables being high at the year end of both 2004 and
    2005 as this is the peak season for the hotels and the low direct
    costs in 2005 due to the reduction in costs being linked to the
    lower revenues in 2005.

-   Payment period – the worsening of this ratio is due to the average
    payables being high at the year end of both 2004 and 2005 as this is
    the peak season for the hotels and the low direct costs in 2005 due
    to the reduction in costs being linked to the lower revenues in
    2005.

-   Cash cycle – the reduction is due to the worsening of the collection
    period ratio being at a higher rate than the payment period ratio.

Profitability ratios

-   Gross profit margin – the worsening position is due to the poor
    performance in 2005.

-   Profit margin from operations – the worsening position is due to the
    poor performance in 2005.

-   Net profit margin – the worsening position is due to the poor
    performance in 2005.

-   Return on equity – the worsening position is due to the poor
    performance in 2005.

Efficiency ratios

-   Return on total assets – the worsening position is due to the poor
    performance in 2005 being exacerbated by the acquisition of Thai Wah
    Plaza Limited which resulted in a significant increase in fixed
    assets.

-   Return on fixed assets – the worsening position is due to the poor
    performance in 2005 being exacerbated by the acquisition of Thai Wah
    Plaza Limited which resulted in a significant increase in fixed
    assets.

-   Asset turnover – This is lower than the prior year due to the impact
    of both the purchase of Thai Wah Plaza Limited and the other
    expansion projects increasing total assets, and the reduction in
    turnover in 2005.

Financial policy ratios

-   Debt to equity – this ratio is higher than last year due to the
    increase in bank loans to purchase the investment in Thai Wah Plaza
    Limited and the other construction projects of Banyan Tree Lijiang,
    the Double Pool Villa’s at Banyan Tree Phuket etc which are largely
    debt financed.

-   Interest cover – the increase as compared to last year is due to the
    higher loan balances and the increase in interest rates. This
    resulted in an increase in interest expense. The lower cash flows
    from operations is due to the lower operating profits as a result of
    the impact of the Tsunami on the 2005 performance.

-   Pay-out ratio (cash) – the significantly worse position is a result
    of a decrease in operating cash flows and an increase in loan
    repayments, capital and investment expenditure.

-   Dividend pay-out ratio – the Board of Directors paid a dividend of
    Baht 2.00 per share in the 2005 financial year from the 2004
    operating results.

    Auditors' Remuneration (for the fiscal year ended 31^(st)
    December 2005)

1.  Audit fees

  The Company and subsidiaries paid audit fees for the fiscal year to an
  audit firm which amounted to Baht 3,629,000. This amount does not
  include the audit fees paid by associated companies.

1.  Non-audit fees

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

  The subsidiaries paid fees for non-audit services for tax advice to
  the audit firm for the fiscal year amounting to Baht 231,800. This
  amount does not include non audit fees paid by associated companies.