12. Financial Position and Result of Operation 

  ----------------------------------------- ---------- ---------- ----------
  1. Financial Position                     2546       2547       2548

                                            2003       2004       2005

  Assets (Million Baht)                                           

  Inventory                                 2,312.14   3,609.20   3,913.18

  Total Asset                               3,280.10   4,082.21   4,554.87

  Liabilities & Shareholders’ Equity                              
  (Million Baht)                                                  

  Current Liabilities                       666.47     185.70     261.67

  Non-Current Liabilities                   49.49      1.70       45.30

  Total Liabilities                         715.95     1,210.79   1,362.52

  Paid up Share Capital                     825.00     825.00     825.00

  Shareholders’ Equity                      2,564.15   2,871.41   3,192.35

  Result of Operation (Million Baht)                              

  Sales                                     3,130.05   2,334.82   2,748.50

  Total Revenue                             3,145.26   2,345.82   2,764.79

  Gross Profit                              1,241.85   1,064.71   1,230.50

  Net Profit                                784.40     580.48     692.63

  Per Share Figure (Baht)                                         

  Net Profit (Loss)                         0.95       0.70       0.84

  Book Value                                3.11       3.48       3.87

  Par Value                                 1.00       1.00       1.00

  Liquidity Ratio                                                 

  Current Ratio                             3.56       10.57      7.67

  Quick Ratio                               0.09       0.25       0.96

  Profitability Ratio                                             

  Gross Profit Margin                       40.10%     45.67%     44.92%

  Operation Profit Margin                   33.24%     34.04%     34.83%

  Net Profit Margin                         24.94%     24.86%     25.20%

  Return on Equities                        30.59%     20.22%     22.84%

  Efficiency Ratio                                                

  Return on Asset                           23.91%     14.22%     16.04%

  Financial Policy Ratio                                          

  Debt to Equity Ratio                      0.28       0.42       0.43

  Interest Coverage Ratio                   64.59      25.11      19.18

  Number of Outstanding Shares (Million     825.00     825.00     825.00
  Shares)                                                         

                                                                  
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AUDIT REPORT OF CERTIFIED PUBLIC ACCOUNTANT

I have audited the balance sheets of LALIN PROPERTY PUBLIC COMPANY
LIMITED as of December 31, 2005, the statements of income, the
statements of changes in shareholders’ equity and cash flow statements
for the years then ended . These financial statements are the
responsibility of the Company’s management as to their correctness and
the completeness of the presentation. My responsibility is to express an
opinion on these financial statements based on my audits. The financial
statements for the years ended on December 31, 2005 of LALIN PROPERTY
PUBLIC COMPANY LIMITED audited by another auditor in the same firm, who
gave an unqualified report thereon dated on February 21, 2005.

I conducted my audit in accordance with generally accepted auditing
standards. Those standards require that I plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of any significant misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. I believe that
my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial positions of LALIN
PROPERTY PUBLIC COMPANY LIMITED as of December 31, 2005, the results of
its operations and cash flows for the years then ended, in conformity
with generally accepted accounting principles.

2. Analysis of Financial Status and Operating Performance

For 2005, the Company achieved total revenues of 2,746.79 million Baht,
an increase from 2004 by a value of 418.97 million Baht, or equivalent
to growth of 17.86%. At the same time, the Company’s net profit
increased to 692.63 million Baht. Compared with 2004 performance, net
profit grew by 19.32 %. The main contributing factor was the Company’s
continued focus on the property market for medium-income customers, by
offering houses priced starting at 2 million Baht, up to 6 million Baht
per unit. This market segment is recognized for its true demand from
buyers. The Company’s products are ideal for the purchasing power of
career workers who are seeking a place to call home away from their
traditional family home. Despite the trend of rising interest rates and
construction costs, this may actually prove to be an influential factor
in clients’ decision to purchase a home quickly before costs rise even
further.

As of 31 December 2005, the Company’s total assets amounted to 4,554.87
million Baht and increased by 472.66 million Baht, or 11.58%. The main
reason was the increase in cash on hand and land, which the Company
purchased for its future project expansion plans. Meanwhile, total
liabilities increased by 151.72 million Baht, or1 2.53%, to reach
1,362.52 million Baht. This was attributed primarily to a rise in
overdrafts and short-term loans with financial institutions, in response
to the significant increase in the Company’s sales. Consequently, the
Company was required to raise its short-term liquidity. Nonetheless, the
debt to equity ratio (D/E) remained the same as 2004 at 0.4 times, which
is considered a low figure compared to other businesses in the same
industry.

In 2005, the Company continued to have a total of 800.00 million
non-secured debentures with rights, carrying a 3-year term and first
issued in 2004. In 2005, TRIS Rating Co., Ltd. maintained the Company’s
credit rating with a BBB+ grade, which is deemed to be an Investment
Grade. From the perspectives of profit generation capability and overall
operating efficiency, the Company’s gross profit margin remained high at
44.92%, dropping only marginally (by 0.75%) from the same period last
year. However, the Company’s net profit margin jumped from 24.86% to
25.20% in 2005, due to its effective management of sales and
administration expenses, leading to increased sales and cost savings of
up to 6.45%.