12. FINANCIAL POSITION AND PERFORMANCE

12.1 Financial Statements

12.1.1 Summary of Audited Reports 

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

  Auditors’ Report   Unqualified       Unqualified       Unqualified
  ------------------ ----------------- ----------------- -----------------

12.1.2 Summary of Financial Statements for the Past 3 Years

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

COMPARED BALANCE SHEETS

AS AT 31 DECEMBER

Unit: Baht Thousand

+--------------------------+------+------+------+------+------+------+
|                          | 2007 | %    | 2006 | %    | 2005 | %    |
+--------------------------+------+------+------+------+------+------+
| ASSETS                   |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
| Current assets           |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Cash and cash          | 549  | 7.36 | 853  | 1    | 543  | 9.49 |
|   equivalents            | ,864 |      | ,860 | 2.89 | ,506 |      |
+--------------------------+------+------+------+------+------+------+
|   Current investments -  | -    | -    | 10   | 0.15 | -    | -    |
|   fixed deposit at       |      |      | ,000 |      |      |      |
|   financial institution  |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Trade accounts         | 596  | 7.99 | 525  | 7.93 | 339  | 5.93 |
|   receivable - net       | ,667 |      | ,197 |      | ,475 |      |
+--------------------------+------+------+------+------+------+------+
|   Amounts due from       | 7    | 0.10 | 6    | 0.10 | 1    | 0.02 |
|   related parties        | ,141 |      | ,520 |      | ,384 |      |
+--------------------------+------+------+------+------+------+------+
|   Advances to employees  | 10   | 0.14 | 11   | 0.17 | 10   | 0.17 |
|   and directors          | ,338 |      | ,300 |      | ,014 |      |
+--------------------------+------+------+------+------+------+------+
|   Inventories            | 203  | 2.73 | 166  | 2.52 | 149  | 2.62 |
|                          | ,484 |      | ,413 |      | ,896 |      |
+--------------------------+------+------+------+------+------+------+
|   Prepaid expenses       | 48   | 0.64 | 44   | 0.67 | 49   | 0.87 |
|                          | ,036 |      | ,391 |      | ,970 |      |
+--------------------------+------+------+------+------+------+------+
|   Other current assets   | 1    | 0.02 | 11   | 0.17 | 9    | 0.17 |
|                          | ,383 |      | ,373 |      | ,597 |      |
+--------------------------+------+------+------+------+------+------+
| Total current assets     | 1    | 1    | 1    | 2    | 1    | 1    |
|                          | ,416 | 8.98 | ,629 | 4.60 | ,103 | 9.27 |
|                          | ,913 |      | ,054 |      | ,842 |      |
+--------------------------+------+------+------+------+------+------+
| Non-current assets       |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Pledged fixed deposits | 12   | 0.16 | 9    | 0.15 | 229  | 4.01 |
|   at financial           | ,147 |      | ,605 |      | ,884 |      |
|   institutions           |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Investments in         | 1    | 2    | 464  | 7.02 | 481  | 8.41 |
|   associated companies   | ,522 | 0.39 | ,949 |      | ,415 |      |
|                          | ,607 |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Other long-term        | 2    | 0.03 | 2    | 0.03 | 2    | 0.04 |
|   investments - net      | ,247 |      | ,047 |      | ,047 |      |
+--------------------------+------+------+------+------+------+------+
|   Advance for future     | -    | -    | 16   | 0.25 | -    | -    |
|   subscription - net     |      |      | ,371 |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Property, plant and    | 4    | 5    | 3    | 5    | 3    | 5    |
|   equipment - net        | ,144 | 5.52 | ,751 | 6.65 | ,269 | 7.08 |
|                          | ,587 |      | ,951 |      | ,655 |      |
+--------------------------+------+------+------+------+------+------+
|   Intangible assets -    | 349  | 4.68 | 732  | 1    | 624  | 1    |
|   net                    | ,178 |      | ,093 | 1.05 | ,219 | 0.90 |
+--------------------------+------+------+------+------+------+------+
|   Other non-current      | 17   | 0.24 | 16   | 0.25 | 16   | 0.29 |
|   assets                 | ,845 |      | ,824 |      | ,456 |      |
+--------------------------+------+------+------+------+------+------+
| Total non-current assets | 6    | 8    | 4    | 7    | 4    | 8    |
|                          | ,048 | 1.02 | ,993 | 5.40 | ,623 | 0.73 |
|                          | ,611 |      | ,840 |      | ,676 |      |
+--------------------------+------+------+------+------+------+------+
| TOTAL ASSETS             | 7    | 10   | 6    | 10   | 5    | 10   |
|                          | ,465 | 0.00 | ,622 | 0.00 | ,727 | 0.00 |
|                          | ,524 |      | ,894 |      | ,518 |      |
+--------------------------+------+------+------+------+------+------+
|                          |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

COMPARED BALANCE SHEETS

AS AT 31 DECEMBER

Unit: Baht Thousand

+---------------------------+------+-----+------+-----+------+-----+
|                           | 2007 | %   | 2006 | %   | 2005 | %   |
+---------------------------+------+-----+------+-----+------+-----+
| LIABILITIES AND           |      |     |      |     |      |     |
| SHAREHOLDERS' EQUITY      |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
| Current liabilities       |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Trade accounts payable  | 621  | 8   | 551  | 8   | 484  | 8   |
|                           | ,649 | .33 | ,815 | .34 | ,362 | .45 |
+---------------------------+------+-----+------+-----+------+-----+
|   Amount due to a related | -    | -   | 1    | 0   | -    | -   |
|   party                   |      |     | ,800 | .03 |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Current portion of      | 437  | 5   | 328  | 4   | 328  | 5   |
|   long-term loan          | ,149 | .86 | ,522 | .96 | ,522 | .74 |
+---------------------------+------+-----+------+-----+------+-----+
|   Accrued physicians’ fee | 292  | 3   | 255  | 3   | 213  | 3   |
|                           | ,550 | .92 | ,562 | .86 | ,241 | .72 |
+---------------------------+------+-----+------+-----+------+-----+
|   Interest payable        | 1    | 0   | 768  | 0   | 585  | 0   |
|                           | ,092 | .01 |      | .01 |      | .01 |
+---------------------------+------+-----+------+-----+------+-----+
|   Interest payable -      | 6    | 0   | 6    | 0   | 6    | 0   |
|   convertible bonds       | ,233 | .08 | ,233 | .09 | ,233 | .11 |
|   treated as equity       |      |     |      |     |      |     |
|   securities              |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Corporate income tax    | 197  | 2   | 196  | 2   | 205  | 3   |
|   payable                 | ,048 | .64 | ,122 | .96 | ,623 | .59 |
+---------------------------+------+-----+------+-----+------+-----+
|   Accrued expenses        | 155  | 2   | 137  | 2   | 203  | 3   |
|                           | ,051 | .08 | ,850 | .08 | ,357 | .55 |
+---------------------------+------+-----+------+-----+------+-----+
|   Accounts payable -      | 29   | 0   | 27   | 0   | 71   | 1   |
|   others                  | ,373 | .39 | ,803 | .42 | ,126 | .24 |
+---------------------------+------+-----+------+-----+------+-----+
|   Unearned income         | 524  | 0   | 25   | 0   | 34   | 0   |
|                           |      | .01 | ,391 | .38 | ,131 | .60 |
+---------------------------+------+-----+------+-----+------+-----+
|   Other current           | 40   | 0   | 40   | 0   | 33   | 0   |
|   liabilities             | ,532 | .54 | ,032 | .60 | ,579 | .59 |
+---------------------------+------+-----+------+-----+------+-----+
| Total current liabilities | 1    | 23  | 1    | 23  | 1    | 27  |
|                           | ,781 | .86 | ,571 | .73 | ,580 | .60 |
|                           | ,201 |     | ,898 |     | ,759 |     |
+---------------------------+------+-----+------+-----+------+-----+
| Non-current liabilities   |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Long-term loan          | 1    | 17  | 1    | 21  | 1    | 25  |
|                           | ,335 | .89 | ,422 | .48 | ,450 | .33 |
|                           | ,301 |     | ,449 |     | ,971 |     |
+---------------------------+------+-----+------+-----+------+-----+
| Total non-current         | 1    | 17  | 1    | 21  | 1    | 25  |
| liabilities               | ,335 | .89 | ,422 | .48 | ,450 | .33 |
|                           | ,301 |     | ,449 |     | ,971 |     |
+---------------------------+------+-----+------+-----+------+-----+
| Total liabilities         | 3    | 41  | 2    | 45  | 3    | 52  |
|                           | ,116 | .75 | ,994 | .21 | ,031 | .93 |
|                           | ,502 |     | ,347 |     | ,730 |     |
+---------------------------+------+-----+------+-----+------+-----+
|                           |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

COMPARED BALANCE SHEETS

AS AT 31 DECEMBER

Unit: Baht Thousand

+------------------------------+-----+-----+------+-----+------+-----+
|                              | 2   | %   | 2006 | %   | 2005 | %   |
|                              | 007 |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Shareholders' equity         |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Share capital                |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Registered                   |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| 920,853,235 ordinary shares  | 9   |     | 920  |     | 920  |     |
| of Baht 1 each               | 20, |     | ,476 |     | ,342 |     |
|                              | 853 |     |      |     |      |     |
| (2006: 920,475,835 ordinary  |     |     |      |     |      |     |
| shares of Baht 1 each,       |     |     |      |     |      |     |
|                              |     |     |      |     |      |     |
| 2005: 920,341,835 ordinary   |     |     |      |     |      |     |
| shares of Baht 1 each)       |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| 1,849,450 preference shares  | 1,  |     | 2    |     | 2    |     |
| of Baht 1 each               | 849 |     | ,227 |     | ,361 |     |
|                              |     |     |      |     |      |     |
|   (2006: 2,226,850           |     |     |      |     |      |     |
|   preference shares of Baht  |     |     |      |     |      |     |
|   1 each,                    |     |     |      |     |      |     |
|                              |     |     |      |     |      |     |
|   2005: 2,360,850 preference |     |     |      |     |      |     |
|   shares of Baht 1 each)     |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Issued and paid-up           |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| 728,202,772 ordinary shares  | 7   | 9   | 727  | 10  | 727  | 12  |
| of Baht 1 each               | 28, | .75 | ,825 | .99 | ,691 | .71 |
|                              | 203 |     |      |     |      |     |
| (2006: 727,825,372 ordinary  |     |     |      |     |      |     |
| shares of Baht 1 each,       |     |     |      |     |      |     |
|                              |     |     |      |     |      |     |
| 2005: 727,691,372 ordinary   |     |     |      |     |      |     |
| shares of Baht 1 each)       |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| 1,849,450 preference shares  | 1,  | 0   | 2    | 0   | 2    | 0   |
| of Baht 1 each               | 849 | .02 | ,227 | .03 | ,361 | .04 |
|                              |     |     |      |     |      |     |
| (2006: 2,226,850 preference  |     |     |      |     |      |     |
| shares of Baht 1 each,       |     |     |      |     |      |     |
|                              |     |     |      |     |      |     |
| 2005: 2,360,850 preference   |     |     |      |     |      |     |
| shares of Baht 1 each)       |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Premium on ordinary shares   | 2   | 3   | 285  | 4   | 285  | 4   |
|                              | 85, | .82 | ,568 | .31 | ,568 | .99 |
|                              | 568 |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Other paid-in capital of a   | 2   | 3   | 156  | 2   | -    | -   |
| subsidiary/an associated     | 56, | .44 | ,135 | .36 |      |     |
| company                      | 549 |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Translation adjustment       | 9,  | 0   | 13   | 0   | 30   | 0   |
|                              | 985 | .13 | ,046 | .20 | ,829 | .54 |
+------------------------------+-----+-----+------+-----+------+-----+
| Convertible bonds treated as | 5   | 7   | 550  | 8   | 550  | 9   |
| equity securities            | 50, | .37 | ,000 | .30 | ,000 | .60 |
|                              | 000 |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Excess of investment over    | (19 | (2. | (    | (2. | (    | (3. |
| book value of a subsidiary   | 2,6 | 58) | 192, | 91) | 192, | 36) |
|                              | 62) |     | 662) |     | 662) |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Retained earnings            |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Appropriated - statutory     | 92, | 1   | 92   | 1   | 92   | 1   |
| reserve                      | 275 | .24 | ,275 | .39 | ,275 | .61 |
+------------------------------+-----+-----+------+-----+------+-----+
| Unappropriated               | 2,6 | 35  | 1    | 24  | 1    | 19  |
|                              | 17, | .06 | ,649 | .91 | ,119 | .54 |
|                              | 255 |     | ,837 |     | ,174 |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Total equity attributable to | 4,3 | 58  | 3    | 49  | 2    | 45  |
| company's shareholders       | 49, | .25 | ,284 | .59 | ,615 | .66 |
|                              | 022 |     | ,251 |     | ,236 |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Minority interest - equity   | -   | -   | 344  | 5   | 80   | 1   |
| attributable to minority     |     |     | ,296 | .20 | ,553 | .41 |
| shareholders of subsidiaries |     |     |      |     |      |     |
+------------------------------+-----+-----+------+-----+------+-----+
| Total shareholders' equity   | 4,3 | 58  | 3    | 54  | 2    | 47  |
|                              | 49, | .25 | ,628 | .79 | ,695 | .07 |
|                              | 022 |     | ,547 |     | ,789 |     |
+------------------------------+-----+-----+------+-----+------+-----+
| TOTAL LIABILITIES AND        | 7,4 | 100 | 6    | 100 | 5    | 100 |
| SHAREHOLDERS' EQUITY         | 65, | .00 | ,622 | .00 | ,727 | .00 |
|                              | 524 |     | ,894 |     | ,518 |     |
+------------------------------+-----+-----+------+-----+------+-----+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

INCOME STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER

Unit: Baht Thousand

+-----------------------------+------+-----+------+-----+------+-----+
|                             | 2007 | %   | 2006 | %   | 2005 | %   |
+-----------------------------+------+-----+------+-----+------+-----+
| Revenues                    |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Revenues from hospital    | 8    | 88  | 7    | 96  | 6    | 97  |
|   operations                | ,323 | .42 | ,650 | .91 | ,646 | .65 |
|                             | ,137 |     | ,579 |     | ,518 |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Revenues from hospital    | 17   | 0   | 57   | 0   | 6    | 0   |
|   management                | ,456 | .19 | ,094 | .72 | ,877 | .10 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Rental income             | 132  | 1   | 118  | 1   | 89   | 1   |
|                             | ,305 | .40 | ,423 | .50 | ,088 | .31 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Interest income           | 12   | 0   | 18   | 0   | 8    | 0   |
|                             | ,493 | .13 | ,480 | .23 | ,414 | .12 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Gain on exchange rate     | 29   | 0   | 15   | 0   | 25   | 0   |
|                             | ,877 | .32 | ,219 | .19 | ,216 | .37 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Other income              | 43   | 0   | 27   | 0   | 27   | 0   |
|                             | ,466 | .46 | ,959 | .35 | ,502 | .40 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Share of income from      | 854  | 9   | 7    | 0   | 3    | 0   |
|   investments in associated | ,388 | .08 | ,764 | .10 | ,160 | .05 |
|   companies                 |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Total revenues              | 9    | 100 | 7    | 100 | 6    | 100 |
|                             | ,413 | .00 | ,895 | .00 | ,806 | .00 |
|                             | ,122 |     | ,518 |     | ,775 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Expenses                    |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Cost of hospital          | 5    | 54  | 4    | 60  | 4    | 60  |
|   operations                | ,120 | .39 | ,775 | .48 | ,145 | .90 |
|                             | ,232 |     | ,142 |     | ,590 |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Depreciation and          | 407  | 4   | 342  | 4   | 291  | 4   |
|   amortisation              | ,634 | .33 | ,094 | .33 | ,816 | .29 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Administrative expenses   | 1    | 14  | 1    | 14  | 986  | 14  |
|                             | ,355 | .40 | ,148 | .55 | ,096 | .49 |
|                             | ,876 |     | ,590 |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Allowance for loss on     | 370  | 3   | 10   | 0   | 11   | 0   |
|   impairment of assets      | ,233 | .94 | ,427 | .13 | ,430 | .17 |
+-----------------------------+------+-----+------+-----+------+-----+
| Total expenses              | 7    | 77  | 6    | 79  | 5    | 79  |
|                             | ,253 | .06 | ,276 | .49 | ,434 | .85 |
|                             | ,975 |     | ,253 |     | ,932 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Income before interest      | 2    | 22  | 1    | 20  | 1    | 20  |
| expense and income tax      | ,159 | .94 | ,619 | .51 | ,371 | .15 |
|                             | ,147 |     | ,265 |     | ,843 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Interest expense            | (    | (1. | (    | (1. | (    | (1. |
|                             | 110, | 17) | 109, | 39) | 106, | 57) |
|                             | 514) |     | 946) |     | 868) |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Corporate income tax        | (    | (4. | (    | (5. | (    | (3. |
|                             | 445, | 73) | 432, | 47) | 217, | 20) |
|                             | 375) |     | 140) |     | 908) |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Income before minority      | 1    | 17  | 1    | 13  | 1    | 15  |
| interest                    | ,603 | .04 | ,077 | .65 | ,047 | .38 |
|                             | ,258 |     | ,179 |     | ,067 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Minority interest           | 2    | 0   | 18   | 0   | 5    | 0   |
|                             | ,204 | .02 | ,523 | .23 | ,672 | .08 |
+-----------------------------+------+-----+------+-----+------+-----+
| Net income for the year     | 1    | 17  | 1    | 13  | 1    | 15  |
|                             | ,605 | .06 | ,095 | .88 | ,052 | .46 |
|                             | ,462 |     | ,702 |     | ,739 |     |
+-----------------------------+------+-----+------+-----+------+-----+

[TABLE]

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER

Unit: Baht Thousand

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

  Cash flows from operating activities                                

  Net income                                  1,605,462   1,095,702   1,052,739

  Adjustments to reconcile net income to net                          
  cash                                                                

  provided by (paid from) operating                                   
  activities: -                                                       

  Depreciation and amortisation               407,635     342,094     291,816

  Bad debts and allowance for doubtful        31,083      54,482      14,265
  accounts                                                            

  Allowance for loss on impairment of assets  370,233     10,427      11,430

  Loss on disposal of equipment               6,631       6,099       2,695

  Income from receipt of securities           (200)       -           -

  Share of loss (income) from investments in  (854,388)   (7,764)     (3,160)
  associated companies                                                

  Earnings attributed to minority interest    (2,204)     (18,523)    (5,672)
  for the year                                                        

  Income from operating activities before                             
  changes in operating                                                

  assets and liabilities                      1,564,252   1,482,517   1,364,113

  Decrease (increase) in operating assets                             

  Trade accounts receivable                   (165,308)   (240,204)   (118,782)

  Amounts due from related parties            76          (5,136)     -

  Inventories                                 (37,070)    (16,517)    (45,445)

  Other current assets                        (6,647)     3,803       (24,081)

  Increase (decrease) in operating                                    
  liabilities                                                         

  Trade accounts payable                      (94,956)    (11,127)    8,524

  Amount due to a related party               (1,800)     1,800       -

  Accrued physicians' fee                     36,988      42,321      46,239

  Interest payable                            324         183         585

  Corporate income tax payable                926         (9,500)     144,729

  Accrued expenses                            34,545      (65,507)    67,204

  Accounts payable - others                   1,985       (43,323)    23,264

  Unearned income                             6,321       (8,740)     34,131

  Other current liabilities                   1,019       6,453       12,262

  Net cash from operating activities          1,340,655   1,137,023   1,512,743

                                                                      

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

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER

Unit: Baht Thousand

+-------------------------------------------+---------+-------+-------+
|                                           | 2007    | 2006  | 2005  |
+-------------------------------------------+---------+-------+-------+
| Cash flows from investing activities      |         |       |       |
+-------------------------------------------+---------+-------+-------+
| Decrease in deposits at financial         |         |       |       |
| institutions with                         |         |       |       |
+-------------------------------------------+---------+-------+-------+
| maturity of more than 3 months and those  | 7,459   | 21    | 39    |
| pledged                                   |         | 0,278 | 9,944 |
+-------------------------------------------+---------+-------+-------+
| Decrease (increase) in advances to        | 938     | (1    | (4    |
| employees and directors                   |         | ,286) | ,481) |
+-------------------------------------------+---------+-------+-------+
| Increase in short-term loans and interest | -       | -     | (954) |
| receivable - related parties              |         |       |       |
+-------------------------------------------+---------+-------+-------+
| Sales (purchase) of investments in a      | (2      | 209   | (385  |
| subsidiary and associated companies       | 87,704) |       | ,003) |
+-------------------------------------------+---------+-------+-------+
| Dividend received from an associated      | 418,430 | -     | -     |
| company                                   |         |       |       |
+-------------------------------------------+---------+-------+-------+
| Increase in long term advance for future  | -       | (33   | -     |
| subscription                              |         | ,586) |       |
+-------------------------------------------+---------+-------+-------+
| Acquisition of plant and equipment        | (5      | (680  | (653  |
|                                           | 65,423) | ,434) | ,109) |
+-------------------------------------------+---------+-------+-------+
| Proceeds from sales of equipment          | 4,276   | 9,103 | -     |
+-------------------------------------------+---------+-------+-------+
| Increase in intangible assets and other   | (1      | (172  | (215  |
| non-current assets                        | 59,145) | ,927) | ,475) |
+-------------------------------------------+---------+-------+-------+
| Net cash used in investing activities     | (5      | (677  | (859  |
|                                           | 85,445) | ,746) | ,078) |
+-------------------------------------------+---------+-------+-------+
| Cash flows from financing activities      |         |       |       |
+-------------------------------------------+---------+-------+-------+
| Capital increase of minority shareholders | -       | 45    | -     |
| of a subsidiary                           |         | 2,644 |       |
+-------------------------------------------+---------+-------+-------+
| Cash receipt from long-term loan          | 350,000 | 30    | -     |
|                                           |         | 0,000 |       |
+-------------------------------------------+---------+-------+-------+
| Repayment of long-term loan               | (3      | (328  | (328  |
|                                           | 28,522) | ,522) | ,522) |
+-------------------------------------------+---------+-------+-------+
| Dividend paid                             | (6      | (547  | (511  |
|                                           | 20,544) | ,539) | ,029) |
+-------------------------------------------+---------+-------+-------+
| Interest paid for convertible bonds       | (       | (17   | (17   |
| treated as equity securities              | 17,500) | ,500) | ,500) |
+-------------------------------------------+---------+-------+-------+
| Net cash used in financing activities     | (6      | (140  | (857  |
|                                           | 16,566) | ,917) | ,051) |
+-------------------------------------------+---------+-------+-------+
| Net increase (decrease) in cash and cash  | 138,644 | 31    | (203  |
| equivalents                               |         | 8,360 | ,386) |
+-------------------------------------------+---------+-------+-------+
| Translation adjustment                    | (554)   | (8    | 2     |
|                                           |         | ,006) | 4,010 |
+-------------------------------------------+---------+-------+-------+
| Cash and cash equivalents at beginning of | 853,860 | 54    | 72    |
| year                                      |         | 3,506 | 2,882 |
+-------------------------------------------+---------+-------+-------+
| Less: Cash and cash equivalents of a      | (4      | -     | -     |
| subsidiary (BIL) as at the date of it     | 42,086) |       |       |
|                                           |         |       |       |
| changed to an associated company          |         |       |       |
+-------------------------------------------+---------+-------+-------+
| Cash and cash equivalents at end of year  | 549,864 | 85    | 54    |
|                                           |         | 3,860 | 3,506 |
+-------------------------------------------+---------+-------+-------+
|                                           |         |       |       |
+-------------------------------------------+---------+-------+-------+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

FINANCIAL RATIO SUMMARY

+------------------------------------+----------+----------+---------+
| Consolidated                       | 2007     | 2006     | 2005    |
+------------------------------------+----------+----------+---------+
| Liquidity Ratios                   |          |          |         |
+------------------------------------+----------+----------+---------+
| Liquidity ratio (times)            | 0.80     | 1.04     | 0.70    |
+------------------------------------+----------+----------+---------+
| Quick ratio (times)                | 0.64     | 0.88     | 0.56    |
+------------------------------------+----------+----------+---------+
| Cash ratio (times)                 | 0.80     | 0.72     | 1.10    |
+------------------------------------+----------+----------+---------+
| Accounts Receivables Turnover      | 13.82    | 16.36    | 20.52   |
| (times)                            |          |          |         |
+------------------------------------+----------+----------+---------+
| Average Collection Period (days)   | 26.05    | 22.01    | 17.55   |
+------------------------------------+----------+----------+---------+
| Inventory Turnover (times)         | 27.68    | 30.19    | 32.60   |
+------------------------------------+----------+----------+---------+
| Sales Period (days)                | 13.00    | 11.92    | 11.04   |
+------------------------------------+----------+----------+---------+
| Accounts Payable Turnover (times)  | 8.73     | 9.22     | 9.24    |
+------------------------------------+----------+----------+---------+
| Payment Period (days)              | 41.25    | 39.06    | 38.98   |
+------------------------------------+----------+----------+---------+
| Cash Cycle (days)                  | (2.20)   | (5.12)   | (10.39) |
+------------------------------------+----------+----------+---------+
| Profitability Ratios               |          |          |         |
+------------------------------------+----------+----------+---------+
| Gross Margin (%)                   | 38.5     | 37.6     | 37.6    |
+------------------------------------+----------+----------+---------+
| EBITDA Margin (%)                  | 24.2     | 24.7     | 24.5    |
+------------------------------------+----------+----------+---------+
| Operation Margin (%)               | 19.5     | 20.2     | 20.0    |
+------------------------------------+----------+----------+---------+
| Cash to operating profit (%)       | 80.6     | 71.4     | 111.2   |
+------------------------------------+----------+----------+---------+
| EBT Margin (%)                     | 18.3     | 19.4     | 18.7    |
+------------------------------------+----------+----------+---------+
| Net Margin before Extraordinary    | 13.4     | 13.9     | 15.5    |
| Items (%)                          |          |          |         |
+------------------------------------+----------+----------+---------+
| Net Margin (%)                     | 17.1     | 13.9     | 15.5    |
+------------------------------------+----------+----------+---------+
| Return on equity (%)               | 40.2     | 34.7     | 44.3    |
+------------------------------------+----------+----------+---------+
| Efficiency Ratio                   |          |          |         |
+------------------------------------+----------+----------+---------+
| Return on assets (%)               | 22.8     | 17.7     | 19.6    |
+------------------------------------+----------+----------+---------+
| Return on fixed assets (%)         | 51.0     | 41.0     | 44.3    |
+------------------------------------+----------+----------+---------+
| Asset turnover (times)             | 1.34     | 1.28     | 1.27    |
+------------------------------------+----------+----------+---------+
| Financial Policy Ratio             |          |          |         |
+------------------------------------+----------+----------+---------+
| Total Liabilities to Equity        | 0.72     | 0.91     | 1.16    |
| (times)                            |          |          |         |
+------------------------------------+----------+----------+---------+
| Debt to Equity (times)             | 0.41     | 0.54     | 0.68    |
+------------------------------------+----------+----------+---------+
| Net Debt to Equity (times)         | 0.28     | 0.27     | 0.39    |
+------------------------------------+----------+----------+---------+
| Interest Coverage Ratio (times)    | 18.73    | 17.70    | 15.57   |
+------------------------------------+----------+----------+---------+
| Debt service coverage ratio (CASH  | 2.65     | 2.84     | 3.72    |
| BASIS) (times)                     |          |          |         |
+------------------------------------+----------+----------+---------+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

FINANCIAL RATIO SUMMARY

+----------------------------------+----------+----------+------------+
| Consolidated                     | 2007     | 2006     | 2005       |
+----------------------------------+----------+----------+------------+
| Per share                        |          |          |            |
+----------------------------------+----------+----------+------------+
| Par Value                        | 1.00     | 1.00     | 1.00       |
+----------------------------------+----------+----------+------------+
| Book Value Per Share             | 5.97     | 4.51     | 3.59       |
+----------------------------------+----------+----------+------------+
| Book Value Per Share - Fully     | 5.01     | 3.79     | 3.01       |
| Diluted                          |          |          |            |
+----------------------------------+----------+----------+------------+
| Earnings Per Share               | 2.20     | 1.51     | 1.45       |
+----------------------------------+----------+----------+------------+
| Earnings Per Share - Fully       | 1.85     | 1.26     | 1.21       |
| Diluted                          |          |          |            |
+----------------------------------+----------+----------+------------+
| Dividend per share               | 0.80     | 0.75     | 0.75       |
+----------------------------------+----------+----------+------------+
| Growth ratios                    |          |          |            |
+----------------------------------+----------+----------+------------+
| Sales from hospital operations   | 8.8      | 15.1     | 16.9       |
| (%)                              |          |          |            |
+----------------------------------+----------+----------+------------+
| Cost of goods sold (%)           | 7.2      | 15.2     | 13.1       |
+----------------------------------+----------+----------+------------+
| Administrative expenses (%)      | 18.0     | 16.5     | 28.0       |
+----------------------------------+----------+----------+------------+
| EBITDA (%)                       | 6.4      | 17.0     | 23.2       |
+----------------------------------+----------+----------+------------+
| Operating profit (%)             | 4.4      | 17.1     | 23.5       |
+----------------------------------+----------+----------+------------+
| Net profit (%)                   | 46.5     | 4.1      | 12.6       |
+----------------------------------+----------+----------+------------+
| Total assets (%)                 | 12.7     | 15.6     | 14.1       |
+----------------------------------+----------+----------+------------+

12.2 Management Discussion and Analysis 

1. Basis of Consolidation

  On 27 April 2007, the Company’s shareholding in Bumrungrad
  International Limited was decreased from 51.0% to 31.5% as the Company
  waived its rights to subscribe to Bumrungrad International Limited’s
  new shares to allow Asia Financial Holdings to own 19.5% of Bumrungrad
  International Limited. As a result, the status of Bumrungrad
  International Limited has changed from a subsidiary to an associated
  company. Therefore, while Bumrungrad International Limited’s accounts
  were consolidated in the Company’s financial statements as at 31 March
  2007, as at 31 December 2007, the accounts are no longer consolidated
  but are equity accounted instead. Consequently, the year-end 2006
  income statements reflect the consolidation of Bumrungrad
  International Limited accounts for the entire year, while the year-end
  2007 income statements reflect the consolidation of Bumrungrad
  International Limited’s 1Q07 accounts and only the equity-accounting
  of Bumrungrad International Limited’s 2Q07, 3Q07 and 4Q07 performance.

2. Revenues, Net Profit and Margins

  For the year 2007, the Company reported revenues from hospital
  operations of Baht 8,323 million, an increase by 9% from Baht 7,651
  million in 2006. The increase is mainly the result of the continuous
  growth in hospital operations, where inpatient revenues increased by
  9% while outpatient revenues increased by 11%.

  Total revenues for the year 2007 was Baht 9,413 million, compared to
  Baht 7,896 million in 2006, an increase of 19%, primarily because the
  Company reported share of profit from investments in associated
  companies of Baht 854 million in 2007 compared to a profit of Baht 8
  million in 2006. The profit of Baht 854 million in 2007 included the
  following: (1) share of profit from AHI in 1Q07, when Bumrungrad
  International Limited’s financial statement was still consolidated
  with the Company’s, of Baht 8 million, (2) share of profit from
  investment in Bumrungrad International Limited of Baht 18 million in
  2Q07, 3Q07 and 4Q07 and (3) share of profits from GCS Thailand of Baht
  829 million. The Company purchased 30% stake in GCS Thailand in
  September 2007. GCS Thailand is the hospital software development
  company which the Company is using its products, H2000. Subsequently
  in November 2007, Microsoft Corporation announced the purchase of all
  of GCS Thailand’s assets. Therefore, the share of GCS Thailand’s
  profit of Baht 829 million is primarily the one-time gain from sale of
  assets in GCS Thailand, netted off with GCS Thailand’s operations.
  However, the share of profit from investments in associated company of
  Baht 8 million in 2006 was Asian Hospital Inc.’s (AHI), Bumrungrad
  International Limited’s associated company at that time.

  In 2007, the Company reported cost of hospital operation of Baht 5,120
  million, an increase by 7% from Baht 4,775 million in 2006, slightly
  lower than the growth rate of the increase in revenues from hospital
  operations as a result of slightly better cost control throughout the
  year 2007. Gross profit margin, therefore, improved to 38.5% in 2007
  compared to 37.6% in 2006.

  The Company’s administrative expenses increased to Baht 1,356 million
  in 2007 compared to Baht 1,149 million in 2006, or an increase of 18%,
  because of higher salaries and wages, coupled with higher advertising
  expenses throughout 2007 with advertisements on television and
  publications. As a result, EBITDA excluding non-operating items
  increased by 6% to Baht 2,070 million in 2007 from Baht 1,946 million
  in 2006, with EBITDA margin slightly lower at 24.2% in 2007 compared
  to 24.7% in 2006.

  The Company reported higher depreciation of Baht 408 million in 2007,
  compared to Baht 342 million in 2006 as the hospital had a major
  technology upgrade of its equipment because the existing hospital
  building has reached its tenth year of operation. As a result, net
  profit excluding one-time non-operating item for 2007 was at Baht
  1,147 million, a 5% increase from Baht 1,096 million in 2006. Net
  profit margin excluding non-operating items slightly was at 13.4% in
  2007, compared to 13.9% in 2006.

  In 2007, the Company had two one-time non-operating items: (1) share
  of profit from investments in GCS Thailand of Baht 829 million, and
  (2) loss on impairment of fixed assets of Baht 370 million, which was
  the impairment of the old version of hospital software H2000. Taking
  into account these two one-time non-operating items, the Company
  reported a net profit of Baht 1,605 million in 2007, an increase of
  47% from Baht 1,096 million in 2006. Net profit margin also
  significantly increased to 17.1% in 2007 from 13.9% in 2006.

  Year-end 2007 basic EPS (excluding non-operating item) was Baht 1.54
  per share, while reported basic EPS was Baht 2.20 per share, or an
  increase of 2% and 46% respectively from Baht 1.51 per share for
  year-end 2006. Similarly, year-end 2007 fully diluted EPS (excluding
  non-operating item) was Baht 1.29 per share, while reported basic EPS
  was Baht 1.85 per share, or an increase of 3% and 47% respectively
  from Baht 1.26 per share for year-end 2006.

(Unit: Baht Million)

  ------------------------------------------------------------------------
                                             2007      2006      Growth
  ------------------------------------------ --------- --------- ---------
  Revenues from hospital operations          8,323     7,651     9%

  Total Revenues                             9,413     7,896     19%

  Gross Profit                               3,203     2,875     11%

  Gross Profit Margin                        38.5%     37.6%     

  EBITDA (Excluding non-operating item)      2,070     1,946     6%

  EBITDA Margin                              24.2%     24.7%     

  Net Profit (Excluding non-operating item)  1,147     1,096     5%

  Net Profit Margin (Excluding non-operating 13.4%     13.9%     
  item)                                                          

  Net Profit                                 1,605     1,096     47%

  Net Profit Margin                          17.1%     13.9%     

  EPS – Basic (excluding non-operating       1.54      1.51      2%
  items)                                                         

  EPS – Basic                                2.20      1.51      46%

  EPS – Fully Diluted (excluding             1.29      1.26      3%
  non-operating items)                                           

  EPS – Fully Diluted                        1.85      1.26      47%
  ------------------------------------------------------------------------

3. Balance Sheet

  As at 31 December 2007, the Company reported total current assets of
  Baht 1,417 million, a decrease from Baht 1,629 million as at 31
  December 2006. This is primarily due to a decrease in cash from Baht
  854 million as at 31 December 2006 to Baht 550 million as at 31
  December 2007, as Bumrungrad International Limited’s cash position is
  no longer consolidated into the Company’s consolidated financial
  statements. Investments in associated company increased from Baht 465
  million as at 31 December 2006 to Baht 1,523 million as at 31 December
  2007. The investment of Baht 465 million in 2006 is the investment in
  AHI, as at the time, Bumrungrad International Limited’s accounts were
  still consolidated with the Company’s, while the investment of Baht
  1,523 million in 2007 was the investment in Bumrungrad International
  Limited of Baht 1,091 million and investment in CDE Trading Co., Ltd.
  (previously GCS Thailand) of Baht 432 million. GCS Thailand registered
  its name change to CDE Trading Co., Ltd. on 3 December 2007. The net
  property, plant and equipment as at 31 December 2007 was at Baht 4,145
  million, an increase from Baht 3,752 as at 31 December 2006, as a
  result of increases in medical and hospital equipment because of the
  major technology upgrade and increase in construction in progress as
  the seven additional floors of the new BI Clinic Building are being
  constructed, to be opened in mid-2008. On the other hand, intangible
  assets decreased to Baht 349 million as at 31 December 2007 from Baht
  732 million as at 31 December 2006 because of the write-down of the
  software of Baht 370 million for the impairment of old version of
  hospital software. As a result of the above items, the Company’s total
  assets increased to 7,466 million as at 31 December 2007 from Baht
  6,623 million as at 31 December 2006.

  The Company’s average collection period increased to 26 days as at 31
  December 2007 from 22 days as at 31 December 2006, as the Company’s
  composition of insurance and corporate contracts are gradually
  changing towards an increasing of foreign accounts. Naturally, these
  accounts take longer to process and collect the bills. The Company’s
  average inventory period slightly increased from 12 days in 2006 to 13
  days in 2007.

  Total liability was Baht 3,117 million as at 31 December 2007,
  compared to Baht 2,994 million as at 31 December 2006, primarily due
  to increases in accounts payable and accrued physician fees, which
  increase in line with the hospital operations. Accounts payable
  increased to Baht 622 million as at 31 December 2007 from Baht 552
  million as at 31 December 2006, while accrued physician fees increased
  to Baht 293 million as at 31 December 2007 from Baht 256 million as at
  31 December 2006. Average payable period slightly increased to 41 days
  in 2007 from 39 days in 2006. With long term loan outstanding
  (including the current portion) remaining stable, net debt to equity
  remains strong, with a slight increase to 0.28x as at 31 December 2007
  from 0.27x as at 31 December 2006. The Company’s interest coverage
  ratio improved to 18.7x in 2007 from 17.7x in 2006.

  Shareholder’s equity attributable to Company’s shareholders (excluding
  equity attributable to minority shareholders of subsidiaries)
  increased to Baht 4,349 million as at 31 December 2007 from Baht 3,284
  million as at 31 December 2006, primarily as a result of the capital
  increase of shareholders of an associated company, Bumrungrad
  International Limited (capital increase to strategic partners in
  excess of par value: Baht 153.52 per share vs. par value of Baht 100
  per share), of Baht 96 million, the Company’s net profit for the year
  2007 of Baht 1,605 million, netted off with dividend payment of Baht
  621 million and interest expense on convertible bonds of Baht 18
  million. As at 31 December 2006, the Company reported equity
  attributed to minority shareholders of subsidiaries of Baht 344
  million, which was the minority interest of Bumrungrad International
  Limited, while there was no equity attributed to minority shareholders
  as at 31 December 2007 as Bumrungrad International Limited’s accounts
  are no longer consolidated. Average return on assets for 2007 was
  22.8%, an increase from 17.7% in 2006 because the net profit in 2007
  included net one-time non-operating income of Baht 473 million (share
  of profit from investments in GCS Thailand netted off with loss on
  impairment of fixed assets). Similarly, average return on equity
  remained high at 40.2% for 2007, compared to 34.7% in 2006.

(Unit: Baht Million)

  ------------------------------ ------------- ------------- -------------
                                 2007          2006          Growth

  Total Assets                   7,466         6,623         13%

  Total Liabilities              3,117         2,994         4%

  Total Shareholders’ Equity     4,349         3,284         32%
  (excluding equity attributable                             
  to minority shareholders of                                
  subsidiaries)                                              

  Average Collection Period      26            22            
  (days)                                                     

  Average Inventory Period       13            12            
  (days)                                                     

  Average Payables Period (days) 41            39            

  Net Debt to Equity             0.28x         0.27x         

  Interest Coverage Ratio        18.7x         17.7x         

  Average Return on Assets       22.8%         17.7%         

  Average Return on Equity       40.2%         34.7%         
  ------------------------------ ------------- ------------- -------------

4. Liquidity

  The Company’s cash flow from operating activities in 2007 was Baht
  1,341 million, 18% higher than 2006 of Baht 1,137 million, primarily
  because of the better operation and increase in accrued expenses. Net
  cash used in investment activities decreased to Baht 585 million in
  2007 from Baht 678 million in 2006, primarily because in 2007, the
  Company received dividend payment of Baht 418 million from GCS
  Thailand. Net cash used in financing activities significantly
  increased to Baht 617 million in 2007 from Baht 141 million in 2006,
  as in 2006, Bumrungrad International Limited received cash from shares
  issued in the amount of Baht 453 million, as that time, Bumrungrad
  International Limited accounts were still consolidated with the
  Company’s. With a deduction of cash and cash equivalents of subsidiary
  (Bumrungrad International Limited) as at the date of a subsidiary
  changed to an associated company of Baht 442 million, the Company’s
  cash and cash equivalents at the end of the period decreased to Baht
  550 million as at 31 December 2007 from Baht 854 million as at 31
  December 2006.

  Liquidity ratio as at 31 December 2007 decreased to 0.80x from 1.04x
  as at 31 December 2006, while quick ratio was at 0.64x as at 31
  December 2007, a decrease from 0.88x as at 31 December 2006. The
  decrease in both liquidity and quick ratios are primarily due to a
  decrease in cash and cash equivalents of Baht 304 million, from Baht
  854 million as at 31 December 2006 to Baht 550 million as at 31
  December 2007.

(Unit: Baht Million)

  ------------------------------------------ -------------- --------------
                                             2007           2006

  Cash Flow from Operating Activities        1,341          1,137

  Cash Flow from Investing Activities        -585           -678

  Cash Flow from Financing Activities        -617           -141

  Net Increase (Decrease) in cash and cash   139            318
  equivalents                                               

  Cash and Cash Equivalents at end of year   550            854

  Liquidity Ratio                            0.80x          1.04x

  Quick Ratio                                0.64x          0.88x
  ------------------------------------------ -------------- --------------

5. Change in Accounting Policy

  Since 1 January 2007, the Company changed its accounting policy
  regarding investments in subsidiaries, associates and jointly
  controlled entities so that the Company financial statement (or “The
  separate financial statement”), which formerly reported investments
  using the equity method, now reports investments using the cost method
  in accordance with the Notification No. 26/2006 issued by the
  Federation of Accounting professions regarding the Accounting Standard
  No. 44 "Consolidated Financial Statements and Accounting for
  Investments in Subsidiaries" (Amendment No. 1). Therefore the Company
  restated its financial statement, using the cost method as the cost of
  investment in subsidiaries and associates of the Company financial
  statement. This adjustment caused the followings effects:

  Net income in the Company financial statement does not equal net
  income in the consolidated financial statement. For the year 2007, net
  income on the Company financial statement was Baht 1,129 million,
  lower than Baht 1,605 million in the consolidated financial statement
  by Baht 476 million. For the year 2006, net income on the Company
  financial statement was Baht 1,039 million, lower than the net income
  in the consolidated financial statement of Baht 1,096 million by Baht
  57 million. This is because the Company financial statement did not
  include share of net income from investments under the equity method
  of Baht 476 million and Baht 57 million for the year 2007 and 2006
  respectively.

  However, the change of accounting policy affects only the accounts
  relating to investments in subsidiaries and associates of the Company
  financial statements. It does not have any effect on the consolidated
  financial statements or the Company’s business fundamentals.

12.3 Audit Fees

12.3.1 Audit Fees

  For the year 2007, the Company and subsidiaries paid audit fee in the
  amount of Baht 2.32 million. The Company’s 2007 audit fee has been
  approved by the shareholders’ meeting.

12.3.2 Non-Audit Fees

  For the year 2007, the Company paid non-audit fee of Baht 95,000 as
  special audit fee for BH Tower.