11. RELATED PARTIES TRANSACTIONS

11.1 Characteristics of Related Parties Transactions

  The Company has transactions with its subsidiaries, affiliates and
  related companies as detailed in note to financial statement no. 8

  For the period ending 31 December 2009 and 31 December 2010 the
  Company and subsidiaries entered into a number of transactions with
  related parties that may have conflict of interest with the Company
  and its subsidiaries. These connected transactions include normal
  course of business transactions and other transactions, and can be
  summarized as follows:

+-------+---------+---------+----+----+-----------------+-----------+
| Re    | Relat   | Desc    | Am |    | Pricing Policy  | Reason    |
| lated | ionship | ription | ou |    |                 | for the   |
| Co    |         |         | nt |    |                 | Tr        |
| mpany |         |         | (  |    |                 | ansaction |
|       |         |         | Ba |    |                 |           |
|       |         |         | ht |    |                 |           |
|       |         |         | Mi |    |                 |           |
|       |         |         | ll |    |                 |           |
|       |         |         | io |    |                 |           |
|       |         |         | n) |    |                 |           |
+=======+=========+=========+====+====+=================+===========+
|       |         |         | F  | F  |                 |           |
|       |         |         | or | or |                 |           |
|       |         |         | t  | t  |                 |           |
|       |         |         | he | he |                 |           |
|       |         |         | ye | ye |                 |           |
|       |         |         | ar | ar |                 |           |
|       |         |         | e  | e  |                 |           |
|       |         |         | nd | nd |                 |           |
|       |         |         | ed | ed |                 |           |
|       |         |         |    |    |                 |           |
|       |         |         | 31 | 31 |                 |           |
|       |         |         | D  | D  |                 |           |
|       |         |         | ec | ec |                 |           |
|       |         |         | 20 | 20 |                 |           |
|       |         |         | 09 | 10 |                 |           |
+-------+---------+---------+----+----+-----------------+-----------+
| Ba    | Common  | R       | 12 | 6  | It is the       | The Audit |
| ngkok | di      | evenues | .6 | .8 | Company’s       | Committee |
| Insu  | rector, |         |    |    | normal course   | has the   |
| rance | and BKI | -       |    |    | of business,    | opinion   |
| Pcl.  | is the  | R       |    |    | charging at     | that the  |
| (BKI) | major   | evenues |    |    | normal price    | tr        |
|       | shar    | from    |    |    | and benefits as | ansaction |
|       | eholder | h       |    |    | customers in    | is        |
|       | of the  | ospital |    |    | general.        | re        |
|       | C       | s       |    |    |                 | asonable. |
|       | ompany, | ervices |    |    |                 |           |
|       | with    | r       |    |    |                 |           |
|       | 13.17%  | eceived |    |    |                 |           |
|       | share   | from    |    |    |                 |           |
|       | holding | BKI     |    |    |                 |           |
|       | as at   |         |    |    |                 |           |
|       | 30      |         |    |    |                 |           |
|       | D       |         |    |    |                 |           |
|       | ecember |         |    |    |                 |           |
|       | 2010    |         |    |    |                 |           |
+-------+---------+---------+----+----+-----------------+-----------+
|       |         | E       | 21 | 26 | BKI is the      | The Audit |
|       |         | xpenses | .3 | .5 | insurance       | Committee |
|       |         |         |    |    | provider which  | has the   |
|       |         | -       |    |    | the Company and | opinion   |
|       |         | In      |    |    | subsidiaries    | that the  |
|       |         | surance |    |    | have always     | tr        |
|       |         | fees    |    |    | used. In        | ansaction |
|       |         | which   |    |    | addition, the   | is        |
|       |         | the     |    |    | insurance       | re        |
|       |         | Company |    |    | premium that    | asonable. |
|       |         | and     |    |    | the Company and |           |
|       |         | subsi   |    |    | subsidiaries    |           |
|       |         | diaries |    |    | paid to BKI was |           |
|       |         | paid to |    |    | at the rate     |           |
|       |         | BKI     |    |    | which BKI       |           |
|       |         |         |    |    | offers to its   |           |
|       |         |         |    |    | customers in    |           |
|       |         |         |    |    | general.        |           |
+-------+---------+---------+----+----+-----------------+-----------+
| Ba    | Common  | R       | 26 | 20 | It is the       | The Audit |
| ngkok | d       | evenues | .2 | .2 | Company’s       | Committee |
| Bank  | irector |         |    |    | normal course   | has the   |
| Pcl.  |         | -       |    |    | of business,    | opinion   |
| (BBL) |         | R       |    |    | charging at     | that the  |
|       |         | evenues |    |    | normal price    | tr        |
|       |         | from    |    |    | and benefits as | ansaction |
|       |         | h       |    |    | customers in    | is        |
|       |         | ospital |    |    | general.        | re        |
|       |         | s       |    |    |                 | asonable. |
|       |         | ervices |    |    |                 |           |
|       |         | r       |    |    |                 |           |
|       |         | eceived |    |    |                 |           |
|       |         | from    |    |    |                 |           |
|       |         | BBL     |    |    |                 |           |
+-------+---------+---------+----+----+-----------------+-----------+
|       |         | E       | 68 | 69 | BBL is the      | The Audit |
|       |         | xpenses | .9 | .5 | credit card     | Committee |
|       |         |         |    |    | service         | has the   |
|       |         | - Bank  |    |    | provider which  | opinion   |
|       |         | credit  |    |    | the Company has | that the  |
|       |         | cards   |    |    | always used.    | tr        |
|       |         | com     |    |    | The Company     | ansaction |
|       |         | mission |    |    | invested in     | is        |
|       |         | fees    |    |    | various         | re        |
|       |         | paid to |    |    | infrastructures | asonable. |
|       |         | BBL     |    |    | to maximize the |           |
|       |         |         |    |    | benefits from   |           |
|       |         |         |    |    | efficient use   |           |
|       |         |         |    |    | of credit card  |           |
|       |         |         |    |    | payment system. |           |
|       |         |         |    |    | The fees paid   |           |
|       |         |         |    |    | to BBL are at   |           |
|       |         |         |    |    | the market      |           |
|       |         |         |    |    | rate.           |           |
+-------+---------+---------+----+----+-----------------+-----------+
|       |         | -       | 32 | 32 | The Company     | Approved  |
|       |         | I       | .5 | .5 | paid interest   | by the    |
|       |         | nterest |    |    | on Baht 550     | shar      |
|       |         | on      |    |    | million         | eholders. |
|       |         | conv    |    |    | principal of    |           |
|       |         | ertible |    |    | convertible     |           |
|       |         | bonds   |    |    | bonds. Interest |           |
|       |         | paid to |    |    | rates are in    |           |
|       |         | BBL     |    |    | accordance with |           |
|       |         |         |    |    | debt            |           |
|       |         |         |    |    | restructuring   |           |
|       |         |         |    |    | agreement.      |           |
+-------+---------+---------+----+----+-----------------+-----------+
| Bumru | Ass     | R       | 12 | 11 | The Company     | The Audit |
| ngrad | ociated | evenues | .8 | .1 | charges the     | Committee |
| Int   | company |         |    |    | fees in         | has the   |
| ernat | with    | -       |    |    | relation to the | opinion   |
| ional | 31.5%   | Con     |    |    | actual cost of  | that the  |
| Li    | share   | sulting |    |    | the resources   | tr        |
| mited | holding | fees on |    |    | used.           | ansaction |
|       | with    | h       |    |    |                 | is        |
|       | common  | ospital |    |    |                 | re        |
|       | d       | man     |    |    |                 | asonable. |
|       | irector | agement |    |    |                 |           |
|       |         | r       |    |    |                 |           |
|       |         | eceived |    |    |                 |           |
|       |         | from    |    |    |                 |           |
|       |         | Bum     |    |    |                 |           |
|       |         | rungrad |    |    |                 |           |
|       |         | Intern  |    |    |                 |           |
|       |         | ational |    |    |                 |           |
|       |         | Limited |    |    |                 |           |
+-------+---------+---------+----+----+-----------------+-----------+
|       |         | E       | -  | 2  | The Company     | The Audit |
|       |         | xpenses |    | .5 | paid hourly     | Committee |
|       |         |         |    |    | fixed expenses  | has the   |
|       |         | -       |    |    | to Bumrungrad   | opinion   |
|       |         | Con     |    |    | International   | that the  |
|       |         | sulting |    |    | Limited. The    | tr        |
|       |         | fees on |    |    | expenses paid   | ansaction |
|       |         | h       |    |    | to Bumrungrad   | is        |
|       |         | ospital |    |    | International   | re        |
|       |         | man     |    |    | Limited are at  | asonable. |
|       |         | agement |    |    | the rate which  |           |
|       |         | paid to |    |    | Bumrungrad      |           |
|       |         | Bum     |    |    | International   |           |
|       |         | rungrad |    |    | Limited offers  |           |
|       |         | Intern  |    |    | to its          |           |
|       |         | ational |    |    | customers in    |           |
|       |         | Limited |    |    | general         |           |
+-------+---------+---------+----+----+-----------------+-----------+

11.2 The Necessity and Rationale of the Related Parties Transactions 

  The Company has entered into related parties transactions to support
  the normal business of the Company. For example, having Bangkok Bank
  Public Company Limited as one of the Company’s corporate contracts
  helps the Company to expand its client base, as Bangkok Bank’s
  employees use the hospital services.

11.3 Policy on Related Parties Transactions in the Future

  The Company may enter into related parties’ transactions as part of
  its normal course of business, with normal trading terms and
  conditions, and within reasonable practice and process, using market
  price policy, as if doing arms-length transactions, in order to
  prevent conflict of interest between the Company and related persons.

  In addition, the Company sees the importance of corporate governance
  and will strictly abide by the Company’s policy, as well as the rules
  and regulations of the Stock Exchange of Thailand and the Securities
  and Exchange Commission. Moreover, the Company will emphasize the
  transparency of the related parties transactions, and will protect the
  highest benefit of the Company.