12. FINANCIAL POSITION AND PERFORMANCE

12.1 Financial Statements

12.1.1 Summary of Audited Reports 

  ------------------ ----------------- ----------------- -----------------
                     2006              2005              2004

  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: Thousand Baht

+--------------------------+------+------+------+------+------+------+
|                          | 2006 | %    | 2005 | %    | 2004 | %    |
+--------------------------+------+------+------+------+------+------+
| ASSETS                   |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
| Current assets           |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Cash and cash          | 853  | 1    | 543  | 9.49 | 652  | 1    |
|   equivalents            | ,860 | 2.89 | ,506 |      | ,882 | 3.00 |
+--------------------------+------+------+------+------+------+------+
|   Current investments -  | 10   | 0.15 | -    | -    | 470  | 9.37 |
|   fixed deposit at       | ,000 |      |      |      | ,000 |      |
|   financial institution  |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Trade accounts         | 525  | 7.93 | 339  | 5.93 | 234  | 4.68 |
|   receivable - net       | ,197 |      | ,475 |      | ,958 |      |
+--------------------------+------+------+------+------+------+------+
|   Amounts due from       | 6    | 0.10 | 1    | 0.02 | 430  | 0.01 |
|   related parties        | ,520 |      | ,384 |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Advances to employees  | 11   | 0.17 | 10   | 0.17 | 5    | 0.11 |
|   and directors          | ,300 |      | ,014 |      | ,533 |      |
+--------------------------+------+------+------+------+------+------+
|   Inventories            | 166  | 2.52 | 149  | 2.62 | 104  | 2.08 |
|                          | ,413 |      | ,896 |      | ,451 |      |
+--------------------------+------+------+------+------+------+------+
|   Prepaid expenses       | 44   | 0.67 | 49   | 0.87 | 30   | 0.60 |
|                          | ,391 |      | ,970 |      | ,278 |      |
+--------------------------+------+------+------+------+------+------+
|   Other current assets   | 11   | 0.17 | 9    | 0.17 | 5    | 0.10 |
|                          | ,373 |      | ,597 |      | ,208 |      |
+--------------------------+------+------+------+------+------+------+
| Total current assets     | 1    | 2    | 1    | 1    | 1    | 2    |
|                          | ,629 | 4.60 | ,103 | 9.27 | ,503 | 9.95 |
|                          | ,054 |      | ,842 |      | ,740 |      |
+--------------------------+------+------+------+------+------+------+
| Non-current assets       |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Pledged fixed deposits | 9    | 0.15 | 229  | 4.01 | 229  | 4.58 |
|   at financial           | ,605 |      | ,884 |      | ,828 |      |
|   institutions           |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Investments accounted  | 464  | 7.02 | 481  | 8.41 | 209  | 0.00 |
|   for under equity       | ,949 |      | ,415 |      |      |      |
|   method                 |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Other long-term        | 2    | 0.03 | 2    | 0.04 | 2    | 0.04 |
|   investments - net      | ,047 |      | ,047 |      | ,047 |      |
+--------------------------+------+------+------+------+------+------+
|   Advance for future     | 16   | 0.25 | -    | -    | -    | -    |
|   subscription - net     | ,371 |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+
|   Property, plant and    | 3    | 5    | 3    | 5    | 2    | 5    |
|   equipment - net        | ,751 | 6.65 | ,269 | 7.08 | ,801 | 5.80 |
|                          | ,951 |      | ,655 |      | ,618 |      |
+--------------------------+------+------+------+------+------+------+
|   Intangible assets -    | 732  | 1    | 624  | 1    | 476  | 9.48 |
|   net                    | ,093 | 1.05 | ,219 | 0.90 | ,128 |      |
+--------------------------+------+------+------+------+------+------+
|   Other non-current      | 16   | 0.25 | 16   | 0.29 | 7    | 0.15 |
|   assets                 | ,824 |      | ,456 |      | ,516 |      |
+--------------------------+------+------+------+------+------+------+
| Total non-current assets | 4    | 7    | 4    | 8    | 3    | 7    |
|                          | ,993 | 5.40 | ,623 | 0.73 | ,517 | 0.05 |
|                          | ,840 |      | ,676 |      | ,346 |      |
+--------------------------+------+------+------+------+------+------+
| TOTAL ASSETS             | 6    | 10   | 5    | 10   | 5    | 10   |
|                          | ,622 | 0.00 | ,727 | 0.00 | ,021 | 0.00 |
|                          | ,894 |      | ,518 |      | ,086 |      |
+--------------------------+------+------+------+------+------+------+
|                          |      |      |      |      |      |      |
+--------------------------+------+------+------+------+------+------+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

COMPARED BALANCE SHEETS

AS AT 31 DECEMBER

Unit: Thousand Baht

+---------------------------+------+-----+------+-----+------+-----+
|                           | 2006 | %   | 2005 | %   | 2004 | %   |
+---------------------------+------+-----+------+-----+------+-----+
| LIABILITIES AND           |      |     |      |     |      |     |
| SHAREHOLDERS' EQUITY      |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
| Current liabilities       |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Trade accounts payable  | 551  | 8   | 484  | 8   | 413  | 8   |
|                           | ,815 | .34 | ,362 | .45 | ,413 | .24 |
+---------------------------+------+-----+------+-----+------+-----+
|   Amount due to a related | 1    | 0   | -    | -   | -    | -   |
|   party                   | ,800 | .03 |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Current portion of      | 328  | 4   | 328  | 5   | 328  | 6   |
|   long-term loan          | ,522 | .96 | ,522 | .74 | ,522 | .55 |
+---------------------------+------+-----+------+-----+------+-----+
|   Accrued physician's fee | 255  | 3   | 213  | 3   | 167  | 3   |
|                           | ,562 | .86 | ,241 | .72 | ,002 | .33 |
+---------------------------+------+-----+------+-----+------+-----+
|   Interest payable        | 768  | 0   | 585  | 0   | -    | -   |
|                           |      | .01 |      | .01 |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Interest payable -      | 6    | 0   | 6    | 0   | 6    | 0   |
|   convertible bonds       | ,233 | .09 | ,233 | .11 | ,233 | .12 |
|   treated as equity       |      |     |      |     |      |     |
|   securities              |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Corporate income tax    | 196  | 2   | 205  | 3   | 60   | 1   |
|   payable                 | ,122 | .96 | ,623 | .59 | ,893 | .21 |
+---------------------------+------+-----+------+-----+------+-----+
|   Accrued expenses        | 137  | 2   | 203  | 3   | 136  | 2   |
|                           | ,850 | .08 | ,357 | .55 | ,154 | .71 |
+---------------------------+------+-----+------+-----+------+-----+
|   Accounts payable -      | 27   | 0   | 71   | 1   | 47   | 0   |
|   others                  | ,803 | .42 | ,126 | .24 | ,862 | .95 |
+---------------------------+------+-----+------+-----+------+-----+
|   Unearned income         | 25   | 0   | 34   | 0   | -    | -   |
|                           | ,391 | .38 | ,131 | .60 |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Other current           | 40   | 0   | 33   | 0   | 21   | 0   |
|   liabilities             | ,032 | .60 | ,579 | .59 | ,316 | .42 |
+---------------------------+------+-----+------+-----+------+-----+
| Total current liabilities | 1    | 23  | 1    | 27  | 1    | 23  |
|                           | ,571 | .73 | ,580 | .60 | ,181 | .53 |
|                           | ,898 |     | ,759 |     | ,395 |     |
+---------------------------+------+-----+------+-----+------+-----+
| Non-current liabilities   |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+
|   Long-term loan          | 1    | 21  | 1    | 25  | 1    | 35  |
|                           | ,422 | .48 | ,450 | .33 | ,779 | .44 |
|                           | ,449 |     | ,971 |     | ,493 |     |
+---------------------------+------+-----+------+-----+------+-----+
| Total non-current         | 1    | 21  | 1    | 25  | 1    | 35  |
| liabilities               | ,422 | .48 | ,450 | .33 | ,779 | .44 |
|                           | ,449 |     | ,971 |     | ,493 |     |
+---------------------------+------+-----+------+-----+------+-----+
| Total liabilities         | 2    | 45  | 3    | 52  | 2    | 58  |
|                           | ,994 | .21 | ,031 | .93 | ,960 | .97 |
|                           | ,347 |     | ,730 |     | ,888 |     |
+---------------------------+------+-----+------+-----+------+-----+
|                           |      |     |      |     |      |     |
+---------------------------+------+-----+------+-----+------+-----+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

COMPARED BALANCE SHEETS

AS AT 31 DECEMBER

Unit: Thousand Baht

+--------------------------------+-----+----+-----+-----+------+----+
|                                | 2   | %  | 2   | %   | 2004 | %  |
|                                | 006 |    | 005 |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Shareholders' equity           |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Share capital                  |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Registered                     |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| 920,475,835 ordinary shares of | 9   |    | 9   |     | 920  |    |
| Baht 1 each                    | 20, |    | 20, |     | ,010 |    |
|                                | 476 |    | 342 |     |      |    |
| (2005: 920,341,835 ordinary    |     |    |     |     |      |    |
| shares of Baht 1 each,         |     |    |     |     |      |    |
|                                |     |    |     |     |      |    |
| 2004: 920,009,835 ordinary     |     |    |     |     |      |    |
| shares of Baht 1 each)         |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| 2,226,850 preference shares of | 2,  |    | 2,  |     | 2    |    |
| Baht 1 each                    | 227 |    | 361 |     | ,693 |    |
|                                |     |    |     |     |      |    |
|   (2005: 2,360,850 preference  |     |    |     |     |      |    |
|   shares of Baht 1 each,       |     |    |     |     |      |    |
|                                |     |    |     |     |      |    |
|   2004: 2,692,850 preference   |     |    |     |     |      |    |
|   shares of Baht 1 each)       |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Issued and paid-up             |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| 727,825,372 ordinary shares of | 7   | 1  | 7   | 12  | 727  | 1  |
| Baht 1 each                    | 27, | 0. | 27, | .71 | ,359 | 4. |
|                                | 825 | 99 | 691 |     |      | 49 |
| (2005: 727,691,372 ordinary    |     |    |     |     |      |    |
| shares of Baht 1 each,         |     |    |     |     |      |    |
|                                |     |    |     |     |      |    |
| 2004: 727,359,372 ordinary     |     |    |     |     |      |    |
| shares of Baht 1 each)         |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| 2,226,850 preference shares of | 2,  | 0. | 2,  | 0   | 2    | 0. |
| Baht 1 each                    | 227 | 03 | 361 | .04 | ,693 | 05 |
|                                |     |    |     |     |      |    |
| (2005: 2,360,850 preference    |     |    |     |     |      |    |
| shares of Baht 1 each,         |     |    |     |     |      |    |
|                                |     |    |     |     |      |    |
| 2004: 2,692,850 preference     |     |    |     |     |      |    |
| shares of Baht 1 each)         |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Premium on ordinary shares     | 2   | 4. | 2   | 4   | 285  | 5. |
|                                | 85, | 31 | 85, | .99 | ,568 | 69 |
|                                | 568 |    | 568 |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Unrealised gain resulting from | 1   | 2. | -   | -   | -    | -  |
| the sale of subsidiary's       | 56, | 36 |     |     |      |    |
| shares to the public in excess | 135 |    |     |     |      |    |
| of par value                   |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Translation adjustment         | 13, | 0. | 30, | 0   | -    | -  |
|                                | 046 | 20 | 829 | .54 |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Convertible bonds treated as   | 5   | 8. | 5   | 9   | 550  | 1  |
| equity securities              | 50, | 30 | 50, | .60 | ,000 | 0. |
|                                | 000 |    | 000 |     |      | 95 |
+--------------------------------+-----+----+-----+-----+------+----+
| Excess of investment over book | (19 | (2 | (19 | (3. | (    | (3 |
| value of a susidiary           | 2,6 | .9 | 2,6 | 36) | 192, | .8 |
|                                | 62) | 1) | 62) |     | 662) | 4) |
+--------------------------------+-----+----+-----+-----+------+----+
| Retained earnings              |     |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Appropriated - statutory       | 92, | 1. | 92, | 1   | 46   | 0. |
| reserve                        | 275 | 39 | 275 | .61 | ,500 | 93 |
+--------------------------------+-----+----+-----+-----+------+----+
| Unappropriated                 | 1,6 | 2  | 1,1 | 19  | 640  | 1  |
|                                | 49, | 4. | 19, | .54 | ,740 | 2. |
|                                | 837 | 91 | 174 |     |      | 76 |
+--------------------------------+-----+----+-----+-----+------+----+
| Total equity attributable to   | 3,2 | 4  | 2,6 | 45  | 2    | 4  |
| company's shareholders         | 84, | 9. | 15, | .66 | ,060 | 1. |
|                                | 251 | 59 | 236 |     | ,198 | 03 |
+--------------------------------+-----+----+-----+-----+------+----+
| Minority interest - equity     | 3   | 5. | 80, | 1   | -    | -  |
| attributable to minority       | 44, | 20 | 553 | .41 |      |    |
| shareholders of subsidiaries   | 296 |    |     |     |      |    |
+--------------------------------+-----+----+-----+-----+------+----+
| Total shareholders' equity     | 3,6 | 5  | 2,6 | 47  | 2    | 4  |
|                                | 28, | 4. | 95, | .07 | ,060 | 1. |
|                                | 547 | 79 | 789 |     | ,197 | 03 |
+--------------------------------+-----+----+-----+-----+------+----+
| TOTAL LIABILITIES AND          | 6,6 | 10 | 5,7 | 100 | 5    | 10 |
| SHAREHOLDERS' EQUITY           | 22, | 0. | 27, | .00 | ,021 | 0. |
|                                | 894 | 00 | 518 |     | ,086 | 00 |
+--------------------------------+-----+----+-----+-----+------+----+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

INCOME STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER

Unit: Thousand Baht

+-----------------------------+------+-----+------+-----+------+-----+
|                             | 2549 | %   | 2548 | %   | 2547 | %   |
+-----------------------------+------+-----+------+-----+------+-----+
| Revenues                    |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Revenues from hospital    | 7    | 96  | 6    | 97  | 5    | 97  |
|   operations                | ,650 | .91 | ,646 | .65 | ,686 | .88 |
|                             | ,579 |     | ,518 |     | ,055 |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Revenues from hospital    | 57   | 0   | 6    | 0   | -    | -   |
|   management                | ,094 | .72 | ,877 | .10 |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Rental income             | 118  | 1   | 89   | 1   | 53   | 0   |
|                             | ,423 | .50 | ,088 | .31 | ,075 | .91 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Interest income           | 18   | 0   | 8    | 0   | 25   | 0   |
|                             | ,480 | .23 | ,414 | .12 | ,434 | .44 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Gain on exchange rate     | 15   | 0   | 25   | 0   | 16   | 0   |
|                             | ,219 | .19 | ,216 | .37 | ,099 | .28 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Other income              | 27   | 0   | 27   | 0   | 28   | 0   |
|                             | ,959 | .35 | ,502 | .40 | ,636 | .49 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Share of income from      | 7    | 0   | 3    | 0   | -    | -   |
|   investments accounted for | ,764 | .10 | ,160 | .05 |      |     |
|   under equity method       |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Total revenues              | 7    | 100 | 6    | 100 | 5    | 100 |
|                             | ,895 | .00 | ,806 | .00 | ,809 | .00 |
|                             | ,518 |     | ,775 |     | ,299 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Expenses                    |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Cost of hospital          | 4    | 60  | 4    | 60  | 3    | 63  |
|   operations                | ,775 | .48 | ,145 | .90 | ,665 | .10 |
|                             | ,142 |     | ,590 |     | ,606 |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Depreciation and          | 342  | 4   | 291  | 4   | 242  | 4   |
|   amortisation              | ,094 | .33 | ,816 | .29 | ,005 | .17 |
+-----------------------------+------+-----+------+-----+------+-----+
|   Administrative expenses   | 1    | 14  | 986  | 14  | 767  | 13  |
|                             | ,148 | .55 | ,096 | .49 | ,519 | .21 |
|                             | ,590 |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
|   Goodwill amortisation     | -    | -   | -    | -   | (1,  | (0. |
|                             |      |     |      |     | 366) | 02) |
+-----------------------------+------+-----+------+-----+------+-----+
|   Allowance for loss on     | 10   | 0   | 11   | 0   | 9    | 0   |
|   impairment of assets      | ,427 | .13 | ,430 | .17 | ,000 | .15 |
+-----------------------------+------+-----+------+-----+------+-----+
| Total expenses              | 6    | 79  | 5    | 79  | 4    | 80  |
|                             | ,276 | .49 | ,434 | .85 | ,682 | .61 |
|                             | ,253 |     | ,932 |     | ,764 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Income before interest      | 1    | 20  | 1    | 20  | 1    | 19  |
| expense and income tax      | ,619 | .51 | ,371 | .15 | ,126 | .39 |
|                             | ,265 |     | ,843 |     | ,535 |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Interest expense            | (    | (1. | (    | (1. | (    | (2. |
|                             | 109, | 39) | 106, | 57) | 118, | 05) |
|                             | 946) |     | 868) |     | 886) |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Corporate income tax        | (    | (5. | (    | (3. | (    | (2. |
|                             | 432, | 47) | 217, | 20) | 128, | 21) |
|                             | 140) |     | 908) |     | 636) |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Income before minority      | 1    | 13  | 1    | 15  | 879  | 15  |
| interest                    | ,077 | .65 | ,047 | .38 | ,013 | .13 |
|                             | ,179 |     | ,067 |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Minority interest           | 18   | 0   | 5    | 0   | (8,  | (0. |
|                             | ,523 | .23 | ,672 | .08 | 444) | 15) |
+-----------------------------+------+-----+------+-----+------+-----+
| Income from ordinary        | 1    | 13  | 1    | 15  | 870  | 14  |
| operations                  | ,095 | .88 | ,052 | .46 | ,569 | .98 |
|                             | ,702 |     | ,739 |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Extraordinary item - Gain   | -    | -   | -    | -   | 63   | 1   |
| from conversion of          |      |     |      |     | ,978 | .10 |
| convertible bonds to        |      |     |      |     |      |     |
| ordinary shares             |      |     |      |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+
| Net income for the year     | 1    | 13  | 1    | 15  | 934  | 16  |
|                             | ,095 | .88 | ,052 | .46 | ,547 | .08 |
|                             | ,702 |     | ,739 |     |      |     |
+-----------------------------+------+-----+------+-----+------+-----+

  --------------- -- -------------- -- ------------ -- ------------- -- -------------- -- -------------- -- ------------- -- --------------- -- -------------- --- ---------------- -- -------------- -- ---------------
  BUMRUNGRAD                                                                                                                                                                                             
  HOSPITAL PUBLIC                                                                                                                                                                                        
  COMPANY LIMITED                                                                                                                                                                                        
  AND ITS                                                                                                                                                                                                
  SUBSIDIARIES                                                                                                                                                                                           

  STATEMENTS OF                                                                                                                                                                                          
  CHANGES IN                                                                                                                                                                                             
  SHAREHOLDERS'                                                                                                                                                                                          
  EQUITY                                                                                                                                                                                                 

  FOR THE YEARS                                                                                                                                                                                          
  ENDED 31                                                                                                                                                                                               
  DECEMBER 2006                                                                                                                                                                                          
  AND 2005                                                                                                                                                                                               

                                                                                                                                                                                       (Unit: Baht)      

                     CONSOLIDATED                                                                                                                                                                        

                                                                        Unrealised                                                                                                                       
                                                                        gain resulting                                                                                                                   

                                                                        from the sale                                        Excess of                                                                   
                                                                        of                                                                                                                               

                                                                        subsidiary's                        Convertible      investment over     Retained                                                
                                                                        shares                                                                  earnings                                                 

                     Issued and                        Premium on       to the public     Translation       bonds treated    book value of      Appropriated -                         Minority          
                     paid-up share                                      in                                  as                                                                                           
                     capital                                                                                                                                                                             

                     Ordinary          Preference      ordinary         excess of par     adjustment        equity           a subsidiary       statutory          Unappropriated      Interest          Total
                     shares            shares          shares           value                               securities                          reserve                                                  

  Balance as at      727,359,372       2,692,850       285,568,300      -                 -                 550,000,000      (192,661,558)      46,500,000         640,738,867         -                 2,060,197,831
  31 December                                                                                                                                                                                            
  2004                                                                                                                                                                                                   

  Preference         332,000           (332,000)       -                -                 -                 -                -                  -                  -                   -                 -
  shares                                                                                                                                                                                                 
  converted to                                                                                                                                                                                           
  ordinary shares                                                                                                                                                                                        

  Investment of                                                                                                                                                                                          
  minority                                                                                                                                                                                               
  interest as at                                                                                                                                                                                         
  purchase date                                                                                                                                                                                          

  of investment      -                 -               -                -                 -                 -                -                  -                  -                   78,323,511        78,323,511
  in a subsidiary                                                                                                                                                                                        

  Translation        -                 -               -                -                 30,828,437        -                -                  -                  -                   7,901,275         38,729,712
  adjustment                                                                                                                                                                                             

  Interest paid                                                                                                                                                                                          
  for convertible                                                                                                                                                                                        
  bonds treated                                                                                                                                                                                          
  as                                                                                                                                                                                                     

  equity             -                 -               -                -                 -                 -                -                  -                  (17,500,000)        -                 (17,500,000)
  securities                                                                                                                                                                                             

  Transferred to     -                 -               -                -                 -                 -                -                  45,775,000         (45,775,000)        -                 -
  statutory                                                                                                                                                                                              
  reserve                                                                                                                                                                                                

  Net income for     -                 -               -                -                 -                 -                -                  -                  1,052,739,279       -                 1,052,739,279
  the year                                                                                                                                                                                               

  Dividend paid      -                 -               -                -                 -                 -                -                  -                  (511,029,555)       -                 (511,029,555)

  Net loss           -                 -               -                -                 -                 -                -                  -                  -                   (5,671,812)       (5,671,812)
  attributable to                                                                                                                                                                                        
  minority                                                                                                                                                                                               
  interest                                                                                                                                                                                               

  Balance as at      727,691,372       2,360,850       285,568,300      -                 30,828,437        550,000,000      (192,661,558)      92,275,000         1,119,173,591       80,552,974        2,695,788,966
  31 December                                                                                                                                                                                            
  2005                                                                                                                                                                                                   

  Preference         134,000           (134,000)       -                -                 -                 -                -                  -                  -                   -                 -
  shares                                                                                                                                                                                                 
  converted to                                                                                                                                                                                           
  ordinary shares                                                                                                                                                                                        

  Capital            -                 -               -                156,134,945       -                 -                -                  -                  -                   285,477,815       441,612,760
  increase of                                                                                                                                                                                            
  minority                                                                                                                                                                                               
  shareholders of                                                                                                                                                                                        
  a subsidiary                                                                                                                                                                                           

  Translation        -                 -               -                -                 (17,782,764)      -                -                  -                  -                   (3,212,329)       (20,995,093)
  adjustment                                                                                                                                                                                             

  Interest paid      -                 -               -                -                 -                 -                -                  -                  (17,500,000)        -                 (17,500,000)
  for convertible                                                                                                                                                                                        
  bonds treated                                                                                                                                                                                          
  as equity                                                                                                                                                                                              
  securities                                                                                                                                                                                             

  Net income for     -                 -               -                -                 -                 -                -                  -                  1,095,702,100       -                 1,095,702,100
  the year                                                                                                                                                                                               

  Dividend paid      -                 -               -                -                 -                 -                -                  -                  (547,539,167)       -                 (547,539,167)

  Net loss           -                 -               -                -                 -                 -                -                  -                  -                   (18,522,897)      (18,522,897)
  attributable to                                                                                                                                                                                        
  minority                                                                                                                                                                                               
  interest                                                                                                                                                                                               

  Balance as at      727,825,372       2,226,850       285,568,300      156,134,945       13,045,673        550,000,000      (192,661,558)      92,275,000         1,649,836,524       344,295,563       3,628,546,669
  31 December                                                                                                                                                                                            
  2006                                                                                                                                                                                                   
  --------------- -- -------------- -- ------------ -- ------------- -- -------------- -- -------------- -- ------------- -- --------------- -- -------------- --- ---------------- -- -------------- -- ---------------

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER

Unit: Thousand Baht

  --------------------------------------------- ----------- ----------- -----------
                                                2006        2005        2004

  Cash flows from operating activities                                  

  Net income                                    1,095,702   1,052,739   934,547

  Adjustments to reconcile net income to net                            
  cash                                                                  

  provided by (paid from) operating activities:                         
  -                                                                     

  Depreciation and amortisation                 342,094     291,816     242,004

  Allowance for loss on impairment of assets    10,427      11,430      9,000

  Bad debts and allowance for doubtful accounts 54,482      14,265      25,402

  Share of loss (income) from investments       (7,764)     (3,160)     -
  accounted for under equity method                                     

  Goodwill amortisation                         -           -           (1,366)

  Earnings attributed to minority interest for  (18,523)    (5,672)     8,444
  the year                                                              

  Loss on disposal of equipment                 6,099       2,695       12,635

  Income from operating activities before                               
  changes in operating                                                  

  assets and liabilities                        1,482,517   1,364,113   1,230,667

  Decrease (increase) in operating assets                               

  Trade accounts receivable                     (240,204)   (118,782)   (27,367)

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

  Inventories                                   (16,517)    (45,445)    (10,938)

  Other current assets                          3,803       (24,081)    (24,881)

  Increase (decrease) in operating liabilities                          

  Trade accounts payable                        (11,127)    8,524       (29,706)

  Amount due to a related party                 1,800       -           -

  Accrued physicians' fee                       42,321      46,239      23,109

  Interest payable                              183         585         -

  Corporate income tax payable                  (9,500)     144,729     60,893

  Accrued expenses                              (65,507)    67,204      (1,400)

  Accounts payable - others                     (43,323)    23,264      2,360

  Unearned income                               (8,740)     34,131      -

  Other current liabilities                     6,453       12,262      15,337

  Net cash from operating activities            1,137,023   1,512,743   1,238,074

                                                                        

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

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER

Unit: Thousand Baht

  ------------------------------------------- ----------- ----------- -------------
                                              2006        2005        2004

  Cash flows from investing activities                                

  Decrease (increase) in deposits at                                  
  financial institutions with                                         

  maturity of more than 3 months and those    210,278     399,944     (390,029)
  pledged                                                             

  Decrease (increase) in advances to          (1,286)     (4,481)     4,271
  employees and directors                                             

  Increase in short-term loans and interest   -           (954)       (135,412)
  receivable - related parties                                        

  Decrease in long-term loans and interest    -           -           7,791
  receivable - related parties                                        

  Sales (purchase) of investments in a        209         (385,003)   (221,223)
  subsidiary and associated companies                                 

  Purchase of other investment                -           -           (347)

  Increase in long term advance for future    (33,586)    -           -
  subscription                                                        

  Increase in plant and equipment             (680,434)   (653,109)   (508,208)

  Increase in other non-current assets        (172,927)   (215,475)   (25,072)

  Net cash used in investing activities       (677,746)   (859,078)   (1,268,229)

  Cash flows from financing activities                                

  Capital increase of minority shareholders   452,644     -           -
  of a subsidiary                                                     

  Increase in long-term loan                  300,000     -           -

  Long-term loan repayment                    (328,522)   (328,522)   (82,130)

  Cash received from issued ordinary shares   -           -           110,612

  Dividend paid                               (547,539)   (511,029)   (219,016)

  Decrease in liabilities under debt          -           -           (8,044)
  restructuring agreement from interest                               
  payment                                                             

  Interest paid for convertible bonds treated (17,500)    (17,500)    (10,000)
  as equity securities                                                

  Net cash used in financing activities       (140,917)   (857,051)   (208,578)
  before extraordinary item                                           

  Extraordinary item - Gain from conversion   -           -           (63,978)
  of convertible bonds to ordinary shares                             

  Net cash used in financing activities       (140,917)   (857,051)   (272,556)

  Net increase (decrease) in cash and cash    318,360     (203,386)   (302,711)
  equivalents                                                         

  Translation adjustment                      (8,006)     24,010      -

  Cash and cash equivalents at beginning of   543,506     722,882     1,025,593
  year                                                                

  Cash and cash equivalents at end of year    853,860     543,506     722,882

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

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

FINANCIAL RATIO SUMMARY

+---------------------------------------+----------+---------+---------+
| Consolidated                          | 2006     | 2005    | 2004    |
+---------------------------------------+----------+---------+---------+
| Liquidity Ratios                      |          |         |         |
+---------------------------------------+----------+---------+---------+
| Liquidity ratio (times)               | 1.04     | 0.70    | 1.27    |
+---------------------------------------+----------+---------+---------+
| Quick ratio (times)                   | 0.88     | 0.56    | 1.15    |
+---------------------------------------+----------+---------+---------+
| Cash ratio (times)                    | 0.72     | 1.10    | 1.23    |
+---------------------------------------+----------+---------+---------+
| Accounts Receivables Turnover (times) | 16.36    | 20.52   | 22.01   |
+---------------------------------------+----------+---------+---------+
| Average Collection Period (days)      | 22.01    | 17.55   | 16.36   |
+---------------------------------------+----------+---------+---------+
| Inventory Turnover (times)            | 30.19    | 32.60   | 37.03   |
+---------------------------------------+----------+---------+---------+
| Sales Period (days)                   | 11.92    | 11.04   | 9.73    |
+---------------------------------------+----------+---------+---------+
| Accounts Payable Turnover (times)     | 9.22     | 9.24    | 9.03    |
+---------------------------------------+----------+---------+---------+
| Payment Period (days)                 | 39.06    | 38.98   | 39.88   |
+---------------------------------------+----------+---------+---------+
| Cash Cycle (days)                     | (5.12)   | (10.39) | (13.79) |
+---------------------------------------+----------+---------+---------+
| Profitability Ratios                  |          |         |         |
+---------------------------------------+----------+---------+---------+
| Gross Margin (%)                      | 37.6%    | 37.6%   | 35.6%   |
+---------------------------------------+----------+---------+---------+
| Operation Margin (%)                  | 20.6%    | 20.3%   | 19.5%   |
+---------------------------------------+----------+---------+---------+
| Cash to operating profit (%)          | 69.8%    | 109.4%  | 109.2%  |
+---------------------------------------+----------+---------+---------+
| EBT Margin (%)                        | 19.4%    | 18.7%   | 18.3%   |
+---------------------------------------+----------+---------+---------+
| Net Margin (%)                        | 13.9%    | 15.5%   | 16.1%   |
+---------------------------------------+----------+---------+---------+
| EBITDA Margin (%)                     | 24.5%    | 24.5%   | 23.4%   |
+---------------------------------------+----------+---------+---------+
| Return on equity (%)                  | 34.7%    | 44.3%   | 56.3%   |
+---------------------------------------+----------+---------+---------+
| Efficiency Ratio                      |          |         |         |
+---------------------------------------+----------+---------+---------+
| Return on assets (%)                  | 17.7%    | 19.6%   | 19.7%   |
+---------------------------------------+----------+---------+---------+
| Return on fixed assets (%)            | 41.0%    | 44.3%   | 44.5%   |
+---------------------------------------+----------+---------+---------+
| Asset turnover (เท่า)                  | 1.19     | 1.19    | 1.16    |
+---------------------------------------+----------+---------+---------+
| Financial Policy Ratio                |          |         |         |
+---------------------------------------+----------+---------+---------+
| Debt to Equity (times)                | 0.91     | 1.16    | 1.44    |
+---------------------------------------+----------+---------+---------+
| Loan to Equity (times)                | 0.48     | 0.66    | 1.02    |
+---------------------------------------+----------+---------+---------+
| Net Loan to Equity (times)            | 0.24     | 0.37    | 0.37    |
+---------------------------------------+----------+---------+---------+
| Interest Coverage Ratio (times)       | 17.54    | 15.57   | 11.36   |
+---------------------------------------+----------+---------+---------+
| Debt service coverage ratio (CASH     | 2.84     | 3.72    | 3.03    |
| BASIS) (times)                        |          |         |         |
+---------------------------------------+----------+---------+---------+

BUMRUNGRAD HOSPITAL PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

FINANCIAL RATIO SUMMARY

+----------------------------------+----------+------------+----------+
| Consolidated                     | 2006     | 2005       | 2004     |
+----------------------------------+----------+------------+----------+
| Per share                        |          |            |          |
+----------------------------------+----------+------------+----------+
| Par Value                        | 1.00     | 1.00       | 1.00     |
+----------------------------------+----------+------------+----------+
| Book Value Per Share             | 4.51     | 3.59       | 3.00     |
+----------------------------------+----------+------------+----------+
| Book Value Per Share - Fully     | 3.79     | 3.01       | 2.39     |
| Diluted                          |          |            |          |
+----------------------------------+----------+------------+----------+
| Earnings Per Share               | 1.51     | 1.45       | 1.36     |
+----------------------------------+----------+------------+----------+
| Diluted Earnings Per Share       | 1.26     | 1.21       | 1.08     |
+----------------------------------+----------+------------+----------+
| Dividend per share               | 0.75     | 0.75       | 0.70     |
+----------------------------------+----------+------------+----------+
| Growth ratios                    |          |            |          |
+----------------------------------+----------+------------+----------+
| Sales from hospital operations   | 15.1%    | 16.9%      | 26.6%    |
| ratio                            |          |            |          |
+----------------------------------+----------+------------+----------+
| Cost of goods sold ratio         | 15.2%    | 13.1%      | 24.7%    |
+----------------------------------+----------+------------+----------+
| Administrative expenses ratio    | 16.5%    | 28.5%      | 20.8%    |
+----------------------------------+----------+------------+----------+
| Operating profit ratio           | 17.8%    | 22.0%      | 41.2%    |
+----------------------------------+----------+------------+----------+
| Net profit ratio                 | 4.1%     | 12.6%      | 40.2%    |
+----------------------------------+----------+------------+----------+
| Total assets ratio               | 15.6%    | 14.1%      | 12.7%    |
+----------------------------------+----------+------------+----------+

12.2 Management Discussion and Analysis 

1. Revenues and Margins

  For the year 2006, the Company reported total revenues of Baht 7,896
  million, an increase by 16% from Baht 6,807 million for year 2005. The
  increase is the result of 12% increase in inpatient revenues and 20%
  increase in outpatient revenues.

  The cost of hospital operations for the year ended 2006 was at Baht
  4,775 million, or an increase of 15% from year-end 2005, in line with
  the increase in the hospital operations. The gross margin therefore
  remained stable at 37.6% for both 2005 and 2006. Administrative
  expenses increased by 18% to accommodate the growth in hospital
  operations, resulting in a stable EBIDTA margin at 24.5% for both 2005
  and 2006.

2. Corporate Income Tax and Net Profit

  For 2006, the Company reported corporate income tax of Baht 432
  million (effective tax rate of 28.3%), an increase of 98% from Baht
  218 million (effective tax rate of 17.1%) for 2005, as the Company
  pays full tax rate in 2006. As a result, the net profit margin
  decreased from 15.5% for year 2005 to 13.9% for year 2006. However,
  the Company’s net profit still saw a 5% increase from Baht 1,053
  million in 2005 to Baht 1,096 million in 2006.

  Year-end 2006 basic EPS was at Baht 1.51 per share, or an increase of
  4% from Baht 1.45 per share for year-end 2005. Similarly, fully
  diluted EPS increased by 4% from Baht 1.21 per share for 2005 to Baht
  1.26 per share for year-end 2006.

(Unit: Baht Million)

  ------------------------- --------------- --------------- ---------------
                            2006            2005            Growth

  Total Revenues            7,896           6,807           16%

  Gross Profit              2,875           2,501           15%

  Gross Profit Margin       37.6%           37.6%           

  EBITDA                    1,928           1,657           16%

  EBITDA Margin             24.5%           24.5%           

  Net Profit                1,096           1,053           5%

  Net Profit Margin         13.9%           15.5%           

  EPS – Basic               1.51            1.45            4%

  EPS – Fully Diluted       1.26            1.21            4%
  ------------------------- --------------- --------------- ---------------

3. Balance Sheet

  Total assets increased to Baht 6,623 million as at 31 December 2006
  from Baht 5,728 million as at 31 December 2005, primarily because of
  increase in cash from Baht 544 million in 2005 to Baht 854 million in
  2006, mainly from the Company’s subsidiary, Bumrungrad International
  Company Limited (BIL)’s capital increase of Baht 453 million, increase
  in accounts receivables from Baht 339 million in 2005 to Baht 525
  million in 2006, in line with the growth of revenues from hospital
  operations and increasing average collectible days because of
  increasing foreign accounts, coupled with the increase in property,
  plant and equipment from Baht 3,270 million in 2005 to Baht 3,752
  million in 2006 from the construction of new outpatient and parking
  building, netted off with decrease in pledge of fixed deposits at
  financial institutions from Baht 230 million in 2005 to Baht 10
  million in 2006, as the condition on maintaining an escrow account for
  the term loan has been released.

  The Company’s average collection period increased to 22 days as at 31
  December 2006 from 18 days as at 31 December 2005, 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 remains stable at 12 days for both 2005 and
  2006.

  Total liability was at Baht 2,994 million as at 31 December 2006,
  stable compared to Baht 3,032 million as at 31 December 2005. The
  Company’s long-term debt (including current portion) remained stable
  at Baht 1,751 million as at 31 December 2006 compared to Baht 1,779
  million as at 31 December 2005, as during 2006, the Company made a
  scheduled repayment of Baht 329 million and made a draw-down of Baht
  300 million in 4Q06. Net debt to equity declined to 0.24x as at 31
  December 2006 compared to 0.37x as at 31 December 2005, as a result in
  an increase in cash and increase in equity. The Company’s interest
  coverage ratio improved to 17.5x for the year 2006 from 15.6x in 2005
  as EBITDA improves.

  Shareholder’s equity attributable to Company’s shareholders (excluding
  equity attributable to minority shareholders of subsidiaries)
  increased to Baht 3,284 million as at 31 December 2006 from Baht 2,615
  million as at 31 December 2005, primarily a result of unrealized gain
  from BIL’s 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 156 million, coupled with 2006 net profit of Baht 1,096 million
  netted off with dividend payment of Baht 548 million. In July 2006,
  the Company waived its rights to subscribe to BIL’s 5,764,701 new
  shares to allow strategic partners to buy such shares. As a result,
  its shareholding in BIL was diluted to 51% from 100%. Consequently,
  the equity attributable to minority shareholders of subsidiaries
  significantly increased from Baht 81 million as at 31 December 2005 to
  Baht 344 million as at 31 December 2006. Average return on assets for
  2006 was at 18% while average return on equity remained high at 35%
  for 2006.

(Unit: Baht Million)

  ------------------------------------------------------------------------
                                 2006          2005          Growth
  ------------------------------ ------------- ------------- -------------
  Total Assets                   6,623         5,728         16%

  Total Liabilities              2,994         3,032         -1%

  Total Shareholders’ Equity     3,284         2,615         35%
  (excluding equity attributable                             
  to minority shareholders of                                
  subsidiaries)                                              

  Average Collection Period      22.0          17.6          
  (days)                                                     

  Average Inventory Period       11.9          11.0          
  (days)                                                     

  Average Payables Period (days) 39.1          39.0          

  Net Debt to Equity             0.24x         0.37x         

  Interest Coverage Ratio        17.5x         15.6x         

  Average Return on Assets       17.7%         19.6%         

  Average Return on Equity       34.7%         44.3%         
  ------------------------------------------------------------------------

4. Liquidity

  The Company’s cash flow from operating activities for 2006 was at Baht
  1,137 million, lower than 2005 of Baht 1,513 million, primarily
  because of the increase in accounts receivable, decrease in corporate
  income tax payable resulting from income tax payment, decrease in
  accrued expense as miscellaneous expenses have been paid down and
  decrease in accounts payable – others as the Company paid for its
  construction of the new outpatient center. Net cash used in investment
  activities decreased to Baht 678 million in 2006 from Baht 859 million
  in 2005, primarily because in 2005, the Company spent Baht 323 million
  in investment in Asian Hospital Inc. to expand its hospital business
  into the Philippines. Net cash used in financing activities
  significantly decreased to Baht 141 million in 2006 from Baht 857
  million in 2005, as in 2006, BIL received cash from shares issued in
  the amount of Baht 453 million, together with the Company’s increase
  in long term loan of Baht 300 million. As a result, cash and cash
  equivalents at the end of the period increased to Baht 854 million as
  at 31 December 2006 from Baht 544 million as at 31 December 2005.

  Liquidity ratio stood at 1.04x as at 31 December 2006, an increase
  from 0.70x as at 31 December 2005, as a result of stronger cash
  position. Consequently, quick ratio was at 0.99x as at 31 December
  2006, an increase from 0.65x as at 31 December 2005.

(Unit: Baht Million)

  ------------------------------------------ -------------- --------------
                                             2006           2005

  Cash Flow from Operating Activities        1,137          1,513

  Cash Flow from Investing Activities        -678           -859

  Cash Flow from Financing Activities        -141           -857

  Net Increase (Decrease) in cash and cash   318            -203
  equivalents                                               

  Cash and Cash Equivalents at end of year   854            544

  Liquidity Ratio                            1.04x          0.70x

  Quick Ratio                                0.99x          0.65x
  ------------------------------------------ -------------- --------------

12.3 Audit Fees

12.3.1 Audit Fees

  For the year 2006, the Company and subsidiaries have paid the audit
  fee in the amount of Bt 2,140,000. The 2006 audit fee has been
  approved by the shareholders’ meeting.

12.3.2 Non-Audit Fees

  For the year 2006, the Company has paid non-audit fee of Baht 85,000
  as special audit fee for BH Tower.