12 Financial Position and Operating Results

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

12.1.1 Summary of auditors findings and significant accounting policies.

The name of Company’s and its subsidiaries’ Auditor for the 2002
Financial Statements is Sophon Permsirivallop, Certified Public
Accountant (Thailand) No. 3182 of Ernst & Young Office Limited.

Conclusion of the Auditors Report

For the year ended 31 December 2002

In summary, a clean audit report was issued.

  Reference was made to two subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited and
  Laguna (1) Co., Ltd. that were audited by another auditor for the year
  ended 31 December 2002. The company’s financial statements included
  investments in these subsidiaries as at 31 December 2002 of Baht 292
  million, accounted for under the equity method, and the share of
  profit from these subsidiaries for the year then ended amounted to
  Baht 48 million.

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

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2002 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles.

For the year ended 31 December 2001

In summary, a clean audit report was issued.

  Reference was made to two subsidiary companies included in
  consolidated financial statements, Laguna Beach Club Limited and
  Laguna (1) Co., Ltd. that were audited by another auditor for the year
  ended 31 December 2001. The company’s financial statements included
  investments in these subsidiaries as at 31 December 2001 of Baht 251
  million, accounted for under the equity method, and the share of
  profit from these subsidiaries for the year then ended amounted to
  Baht 53 million.

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

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2001 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles.

For the year ended 31 December 2000

In summary, a clean audit report was issued.

Reference was made to the fact that the previous years financial
statements were audited by another auditor and that a qualified audit
opinion was issued on the 1999 financial statements due to the fact that
the auditors were unable to gain sufficient evidence regarding the share
of loss in a foreign associate amounting to Baht 3.8 million and the
carrying value of that investment of Baht 231 million, for the year
ended 31 December 1999.

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

  The auditors issued a clean audit opinion on the financial statements
  for the year ended 31 December 2000 and stated that the financial
  statements presented fairly the financial position of the company in
  conformity with generally accepted accounting principles.

Accounting policies

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

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

    Revenue recognition

  (a) Revenue from hotel and restaurant operations

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

  (b) Revenue from sales of property under development

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

  (c) Revenue from sales of furniture in condominium units

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

  (d) Revenue from time-share business

  “Lease income from members” on a time – share basis is recognized as
  income when a legally binding contract has been signed and the initial
  payment and installments received amount to at least twenty – five
  percent of the contract price.

    Cash & cash equivalents

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

    Allowance for doubtful accounts

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

    Property development cost

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

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

    Inventories

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

    Investments

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

    Other long-term investments

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

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

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

Investment in debt securities which are classified as held-to-maturity
securities are carried at amortised cost.

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

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

    Property, plant and equipment

  (a) Hotel properties

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

  (b) Other fixed assets/land awaiting for future development

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

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

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

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

    Depreciation

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

  ------------------------------------------------ --------------- -------
  Buildings and improvements                       10 – 50         years

  Operating equipment                              5 – 10          years

  Furniture, fixtures and equipment                5 – 15          years

  Golf course                                      10              years

  Vehicles                                         5               years
  ------------------------------------------------ --------------- -------

No depreciation has been provided for land.

Depreciation on revalued/devalued assets is calculated on the
straight-line method, based on the revalued amount of the fixed asset
and its remaining useful life. The amortisation of the corresponding
revaluation surplus is credited directly to the retained earnings
statement and is not included in determining earnings.

    Foreign currencies

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

Exchange gains and losses are included in determining earnings.

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

    Basic earnings per share

Basic earnings per share is determined by dividing the net earnings for
the year by the number of ordinary shares in issue during the year.

    Use of accounting estimates

Preparation of financial statements in conformity with generally
accepted accounting principles in certain circumstances requires
management to make estimates and assumptions that affect amounts
reported in the accompanying financial statements and notes thereto.
Actual results could differ from these estimates.

12.1.2 Summary of financial statements

Consolidated Income Statement

Unit : Baht

+------------------------------------+---+---------+---------+---------+
|                                    |   | Conso   |         |         |
|                                    |   | lidated |         |         |
+------------------------------------+---+---------+---------+---------+
|                                    |   | 2002    | 2001    | 2000    |
+------------------------------------+---+---------+---------+---------+
| REVENUES                           |   |         | R       |         |
|                                    |   |         | estated |         |
+------------------------------------+---+---------+---------+---------+
|   Revenue from hotel operations    |   | 2,557,  | 2,629,  | 2,537,  |
|                                    |   | 132,070 | 786,992 | 635,151 |
+------------------------------------+---+---------+---------+---------+
|   Revenue from property            |   | 142,    | 168,    | 133,    |
|   development operations           |   | 085,040 | 816,906 | 861,019 |
+------------------------------------+---+---------+---------+---------+
|   Sale of right to use of          |   | 135,    | 143,    | 101,    |
|   condominium units                |   | 923,389 | 240,159 | 926,934 |
+------------------------------------+---+---------+---------+---------+
|   Interest income                  |   | 19,     | 40,     | 23,     |
|                                    |   | 566,400 | 413,201 | 976,897 |
+------------------------------------+---+---------+---------+---------+
| Other income                       |   | 14,     | 18,     | 15,     |
|                                    |   | 182,465 | 807,661 | 028,787 |
+------------------------------------+---+---------+---------+---------+
|   Share of profit from investments |   | -       | -       | (2      |
|   accounted for under the equity   |   |         |         | 50,643) |
|   method                           |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Total revenues                     |   | 2,868,  | 3,001,  | 2,812,  |
|                                    |   | 889,364 | 064,919 | 178,145 |
+------------------------------------+---+---------+---------+---------+
| EXPENSES                           |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Direct hotel operations expenses |   | 1,771,  | 1,710,  | 1,618,  |
|                                    |   | 945,580 | 655,028 | 238,177 |
+------------------------------------+---+---------+---------+---------+
|   Direct cost of property          |   | 94,     | 99,     | 54,     |
|   development operations           |   | 531,916 | 585,986 | 648,410 |
+------------------------------------+---+---------+---------+---------+
|   Direct cost of sale of right to  |   | 87,     | 94,     | 43,     |
|   use of condominium units         |   | 492,352 | 931,415 | 318,475 |
+------------------------------------+---+---------+---------+---------+
|   Selling & administrative         |   | 161,    | 198,    | 222,    |
|   expenses                         |   | 333,693 | 359,056 | 006,553 |
+------------------------------------+---+---------+---------+---------+
|   Loss on impairment of investment |   | 283,    | -       | -       |
|   in available for sale securities |   | 796,722 |         |         |
+------------------------------------+---+---------+---------+---------+
|   Provision for diminution in      |   | -       | 40,     | -       |
|   value of other long-term         |   |         | 590,246 |         |
|   investment                       |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Directors remuneration           |   | 5,      | 5,      | 4,      |
|                                    |   | 396,000 | 933,832 | 571,875 |
+------------------------------------+---+---------+---------+---------+
|   Foreign exchange loss            |   | 4,      | -       | 10,     |
|                                    |   | 995,124 |         | 476,481 |
+------------------------------------+---+---------+---------+---------+
| Total expenses                     |   | 2,409,  | 2,150,  | 1,953,  |
|                                    |   | 491,387 | 055,563 | 259,971 |
+------------------------------------+---+---------+---------+---------+
| Earnings before interest expenses  |   | 459,    | 851,    | 858,    |
| and income tax                     |   | 397,977 | 009,356 | 918,174 |
+------------------------------------+---+---------+---------+---------+
| Interest expenses                  |   | (78,6   | (66,8   | (93,7   |
|                                    |   | 63,343) | 70,961) | 47,892) |
+------------------------------------+---+---------+---------+---------+
| Corporate income tax               |   | (151,3  | (279,3  | (199,4  |
|                                    |   | 13,732) | 91,316) | 51,675) |
+------------------------------------+---+---------+---------+---------+
| Earnings before minority interest  |   | 229,    | 504,    | 565,    |
|                                    |   | 420,902 | 747,079 | 718,607 |
+------------------------------------+---+---------+---------+---------+
| Share of profit (loss) of          |   | (76,8   | (180,4  | (195,7  |
| subsidiaries to minority interest  |   | 72,950) | 13,013) | 99,193) |
+------------------------------------+---+---------+---------+---------+
| Net earnings for the year          |   | 152,    | 324,    | 369,    |
|                                    |   | 547,952 | 334,066 | 919,414 |
+------------------------------------+---+---------+---------+---------+
| Basic earnings per share           |   | 2.71    | 5.96    | 6.68    |
|                                    |   |         |         |         |
|   Earnings before minority         |   |         |         |         |
|   interest                         |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Share of profit in subsidiaries  |   | (0.91)  | (2.13)  | (2.31)  |
|   to minority interest             |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Net earnings                     |   | 1.80    | 3.83    | 4.37    |
+------------------------------------+---+---------+---------+---------+

Consolidated Balance Sheet

Unit : Baht

+--------------------------------------+---+---------+---------+---+---------+
|                                      |   | Conso   |         |   |         |
|                                      |   | lidated |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|                                      |   | 2002    | 2001    |   | 2000    |
+--------------------------------------+---+---------+---------+---+---------+
| ASSETS                               |   |         |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
| Current Assets                       |   |         |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|   Cash and cash equivalents          |   | 283,    | 230,    |   | 340,    |
|                                      |   | 085,917 | 845,958 |   | 998,897 |
+--------------------------------------+---+---------+---------+---+---------+
|   Current investment–deposit at      |   | -       | 25,     |   | 41,     |
|   financial institutions with        |   |         | 366,436 |   | 934,787 |
|   commitment                         |   |         |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|   Other current investment           |   | -       | 20,     |   | -       |
|                                      |   |         | 148,946 |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|   Trade accounts receivable - net    |   | 397,    | 432,    |   | 477,    |
|                                      |   | 577,924 | 925,974 |   | 600,152 |
+--------------------------------------+---+---------+---------+---+---------+
|   Advances to related companies      |   | 45,     | 28,     |   | 13,     |
|                                      |   | 319,158 | 682,100 |   | 203,446 |
+--------------------------------------+---+---------+---------+---+---------+
| Short-term loans to other company    |   | -       | 375,    |   | -       |
|                                      |   |         | 490,414 |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|   Inventories                        |   | 110,    | 107,    |   | 70,     |
|                                      |   | 256,117 | 852,432 |   | 431,217 |
+--------------------------------------+---+---------+---------+---+---------+
|   Property development cost          |   | 187,    | 109,    |   | 181,    |
|                                      |   | 663,324 | 342,737 |   | 745,620 |
+--------------------------------------+---+---------+---------+---+---------+
| Other current assets                 |   | 51,     | 80,     |   | 60,     |
|                                      |   | 625,561 | 035,146 |   | 045,275 |
+--------------------------------------+---+---------+---------+---+---------+
| Total current assets                 |   | 1,075,  | 1,410,  |   | 1,185,  |
|                                      |   | 528,001 | 690,143 |   | 959,394 |
+--------------------------------------+---+---------+---------+---+---------+
| Non Current Assets                   |   |         |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
| Long term trade accounts receivable  |   | 93,     | 121,    | 1 |         |
|                                      |   | 585,257 | 714,738 | 2 |         |
|                                      |   |         |         | 8 |         |
|                                      |   |         |         | , |         |
|                                      |   |         |         | 0 |         |
|                                      |   |         |         | 7 |         |
|                                      |   |         |         | 6 |         |
|                                      |   |         |         | , |         |
|                                      |   |         |         | 9 |         |
|                                      |   |         |         | 0 |         |
|                                      |   |         |         | 6 |         |
+--------------------------------------+---+---------+---------+---+---------+
| Other long term investments          |   | 177,    | 309,    |   | 433,    |
|                                      |   | 256,919 | 945,504 |   | 764,854 |
+--------------------------------------+---+---------+---------+---+---------+
| Property, plant and equipment - net  |   | 6,484,  | 6,114,  |   | 5,766,  |
|                                      |   | 245,683 | 576,346 |   | 166,015 |
+--------------------------------------+---+---------+---------+---+---------+
| Land awaiting future development     |   | 658,    | 540,    |   | 575,    |
|                                      |   | 506,916 | 066,916 |   | 605,489 |
+--------------------------------------+---+---------+---------+---+---------+
| Other non current assets             |   | 15,     | 8,      |   | 7,      |
|                                      |   | 682,841 | 265,332 |   | 893,204 |
+--------------------------------------+---+---------+---------+---+---------+
| Negative goodwill on consolidation   |   | (6,3    | (504,8  |   | -       |
|                                      |   | 68,304) | 58,387) |   |         |
+--------------------------------------+---+---------+---------+---+---------+
| TOTAL ASSETS                         |   | 8,498,  | 8,000,  |   | 8,097,  |
|                                      |   | 437,313 | 400,592 |   | 465,862 |
+--------------------------------------+---+---------+---------+---+---------+
| LIABILITIES AND SHAREHOLDERS' EQUITY |   |         |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|   Current liabilities                |   |         |         |   |         |
+--------------------------------------+---+---------+---------+---+---------+
|   Bank overdrafts and short-term     |   | 185,    | 20,     |   | 4,      |
|   loans from financial institutions  |   | 059,960 | 190,031 |   | 418,457 |
+--------------------------------------+---+---------+---------+---+---------+
|   Trade accounts payable             |   | 115,    | 142,    |   | 136,    |
|                                      |   | 723,731 | 846,415 |   | 145,420 |
+--------------------------------------+---+---------+---------+---+---------+
|   Current portion of long-term loans |   | 377,    | 370,    |   | 370,    |
|                                      |   | 500,000 | 000,000 |   | 000,000 |
+--------------------------------------+---+---------+---------+---+---------+
|   Advances from related companies    |   | 18,     | 15,     |   | 13,     |
|                                      |   | 941,920 | 925,668 |   | 604,749 |
+--------------------------------------+---+---------+---------+---+---------+
|   Corporate income tax payable       |   | 71,     | 120,    |   | 98,     |
|                                      |   | 965,638 | 355,042 |   | 654,186 |
+--------------------------------------+---+---------+---------+---+---------+
| Other current liabilities            |   | 387,    | 351,    |   | 308,    |
|                                      |   | 570,768 | 953,037 |   | 196,438 |
+--------------------------------------+---+---------+---------+---+---------+
| Total current liabilities            |   | 1,156,  | 1,021,  |   | 931,    |
|                                      |   | 762,017 | 270,193 |   | 019,250 |
+--------------------------------------+---+---------+---------+---+---------+

 

Consolidated Balance Sheet (continued)

Unit : Baht

+--------------------------------------+---+---+---+---------+---------+---------+
|                                      |   |   |   | Conso   |         |         |
|                                      |   |   |   | lidated |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
|                                      |   |   | 2 |         | 2001    | 2000    |
|                                      |   |   | 0 |         |         |         |
|                                      |   |   | 0 |         |         |         |
|                                      |   |   | 2 |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
| LIABILITIES AND SHAREHOLDERS' EQUITY |   |   |   |         |         |         |
|                                      |   |   |   |         |         |         |
| (continued)                          |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
| Non Current liabilities              |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
| Provision for loss on investment in  |   |   |   | -       | -       | -       |
| subsidiary                           |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
| Provision for loss on investment in  |   |   |   | 4,      | 4,      | 4,      |
| associated company                   |   |   |   | 850,123 | 850,123 | 850,123 |
+--------------------------------------+---+---+---+---------+---------+---------+
| Loans from a minority shareholder    |   |   |   | -       | -       | -       |
+--------------------------------------+---+---+---+---------+---------+---------+
| Long-term loans - net of current     |   |   |   | 885,    | 562,    | 620,    |
| portion                              |   |   |   | 000,000 | 500,000 | 000,000 |
+--------------------------------------+---+---+---+---------+---------+---------+
| Other non current liabilities        |   |   |   | 35,     | 35,     | 21,     |
|                                      |   |   |   | 197,498 | 767,604 | 963,147 |
+--------------------------------------+---+---+---+---------+---------+---------+
| TOTAL LIABILITIES                    |   |   |   | 2,081,  | 1,624,  | 1,577,  |
|                                      |   |   |   | 809,638 | 387,920 | 832,520 |
+--------------------------------------+---+---+---+---------+---------+---------+
| Shareholders' equity                 |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Share capital - registered, issued |   |   |   | 846,    | 846,    | 846,    |
|   and fully paid-up, 84,670,143      |   |   |   | 701,430 | 701,430 | 701,430 |
|   ordinary shares of Baht 10 each    |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Premium on ordinary shares         |   |   |   | 2,062,  | 2,062,  | 2,062,  |
|                                      |   |   |   | 460,582 | 460,582 | 460,582 |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Capital reserve                    |   |   |   | 634,    | 634,    | 634,    |
|                                      |   |   |   | 698,720 | 698,720 | 698,720 |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Revaluation surplus                |   |   |   | 1,669,  | 1,399,  | 1,281,  |
|                                      |   |   |   | 833,202 | 214,033 | 141,966 |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Curency translation differences    |   |   |   | 88,     | 89,     | 90,     |
|                                      |   |   |   | 602,459 | 676,249 | 492,322 |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Unrealised losses on               |   |   |   | -       | (282,8  | (294,6  |
|   available-for-sale securities      |   |   |   |         | 13,402) | 13,242) |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Retained earnings:                 |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Appropriated – statutory reserve   |   |   |   | 79,     | 71,     | 56,     |
|                                      |   |   |   | 259,146 | 631,748 | 608,262 |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Unappropriated                     |   |   |   | 388,    | 666,    | 526,    |
|                                      |   |   |   | 170,646 | 600,807 | 630,513 |
+--------------------------------------+---+---+---+---------+---------+---------+
|   Minority interests – equity        |   |   |   | 646,    | 887,    | 1,315,  |
|   attributable to minority           |   |   |   | 901,490 | 842,505 | 512,789 |
|   shareholders of subsidiaries       |   |   |   |         |         |         |
+--------------------------------------+---+---+---+---------+---------+---------+
| Total shareholders' equity           |   |   |   | 6,416,  | 6,376,  | 6,519,  |
|                                      |   |   |   | 627,675 | 012,672 | 633,342 |
+--------------------------------------+---+---+---+---------+---------+---------+
| TOTAL LIABILITIES AND SHAREHOLDERS'  |   |   |   | 8,498,  | 8,000,  | 8,097,  |
| EQUITY                               |   |   |   | 437,313 | 400,592 | 465,862 |
+--------------------------------------+---+---+---+---------+---------+---------+

Consolidated Statement of Cash Flows 

Unit : Baht

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

                                           2002            2001            2000

  Cash flows from (used in) operating                                      
  activities                                                               

  Net cash inflow (outflow) from           700,918,154     948,021,321     983,774,371
  operating activities                                                     

  Cash flows from (used in) investing                                      
  activities                                                               

  Net cash inflow (outflow) from           (685,196,409)   (839,040,535)   (202,941,432)
  investing activities                                                     

  Cash flows from (used in) financing                                      
  activities                                                               

  Net cash inflow (outflow) from           36,518,214      (246,068,512)   (703,712,583)
  financing activities                                                     

  Net increase (decrease) in cash and      52,239,959      (137,087,726)   77,120,356
  cash equivalents                                                         

  Cash and cash equivalents at the         230,845,958     367,933,684     290,813,328
  beginning of the year                                                    

  Cash and cash equivalents at the end     283,085,917     230,845,958     367,933,684
  of the year                                                              

                                                                           

                                                                           

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

 

 

Company Income Statement

Unit : Baht

+--------------------------------------+---------+---------+---------+
|                                      | The     |         |         |
|                                      | Company |         |         |
|                                      | Only    |         |         |
+--------------------------------------+---------+---------+---------+
|                                      | 2002    | 2001    | 2000    |
+--------------------------------------+---------+---------+---------+
|                                      |         | R       |         |
|                                      |         | estated |         |
+--------------------------------------+---------+---------+---------+
| REVENUES                             |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Revenue from hotel operations      | 422,    | 461,    | 469,    |
|                                      | 137,705 | 713,682 | 808,572 |
+--------------------------------------+---------+---------+---------+
|   Revenue from property development  | -       | -       | -       |
|   operations                         |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Interest income                    | 14,     | 66,     | 108,    |
|                                      | 559,993 | 400,441 | 710,551 |
+--------------------------------------+---------+---------+---------+
|   Other income                       | 16,     | 13,     | 6,      |
|                                      | 871,140 | 964,621 | 978,915 |
+--------------------------------------+---------+---------+---------+
|   Share of profit from investments   | 197,    | 258,    | 307,    |
|   accounted for under the equity     | 681,342 | 143,399 | 350,381 |
|   method                             |         |         |         |
+--------------------------------------+---------+---------+---------+
| Total revenues                       | 651,    | 800,    | 892,    |
|                                      | 250,180 | 222,143 | 848,419 |
+--------------------------------------+---------+---------+---------+
| EXPENSES                             |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Direct hotel operations expenses   | 274,    | 265,    | 278,    |
|                                      | 034,487 | 035,946 | 144,750 |
+--------------------------------------+---------+---------+---------+
|   Direct cost of property            | -       | -       | -       |
|   development operations             |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Selling & administrative expenses  | 160,    | 133,    | 98,     |
|                                      | 306,469 | 011,917 | 678,068 |
+--------------------------------------+---------+---------+---------+
|   Loss on impairment of investment   | 845,000 | -       | -       |
|   in available for diminution in     |         |         |         |
|   value of other investment          |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Directors remuneration             | 5,      | 5,      | 4,      |
|                                      | 396,000 | 933,832 | 571,875 |
+--------------------------------------+---------+---------+---------+
|   Foreign exchange loss              | 1,      | -       | 31,     |
|                                      | 449,207 |         | 121,438 |
+--------------------------------------+---------+---------+---------+
| Total expenses                       | 442,    | 403,    | 412,    |
|                                      | 031,163 | 981,695 | 516,131 |
+--------------------------------------+---------+---------+---------+
| Earnings before interest expenses    | 209,    | 396,    | 480,    |
| and income tax                       | 219,017 | 240,448 | 332,288 |
+--------------------------------------+---------+---------+---------+
| Interest expenses                    | (56,6   | (34,7   | (67,9   |
|                                      | 71,065) | 62,145) | 16,909) |
+--------------------------------------+---------+---------+---------+
| Corporate income tax                 | -       | (37,1   | (42,4   |
|                                      |         | 44,237) | 95,965) |
+--------------------------------------+---------+---------+---------+
| Earnings before minority interest    | 152,    | 324,    | 369,    |
|                                      | 547,952 | 334,066 | 919,414 |
+--------------------------------------+---------+---------+---------+
| Share of profit (loss) of            | -       | -       | -       |
| subsidiaries to minority interest    |         |         |         |
+--------------------------------------+---------+---------+---------+
| Net earnings for the year            | 152,    | 324,    | 369,    |
|                                      | 547,952 | 334,066 | 919,414 |
+--------------------------------------+---------+---------+---------+
|                                      |         |         |         |
+--------------------------------------+---------+---------+---------+
| Basic earnings per share             |         |         |         |
+--------------------------------------+---------+---------+---------+
| Earnings before minority interest    | 1.80    | 3.83    | 4.37    |
+--------------------------------------+---------+---------+---------+
|   Share of profit in subsidiaries to | -       | -       | -       |
|   minority interest                  |         |         |         |
+--------------------------------------+---------+---------+---------+
|   Net earnings                       | 1.80    | 3.83    | 4.37    |
+--------------------------------------+---------+---------+---------+

Company Balance Sheet 

Unit : Baht

+------------------------------------+---+---------+---------+---------+
|                                    |   | The     |         |         |
|                                    |   | Company |         |         |
|                                    |   | Only    |         |         |
+------------------------------------+---+---------+---------+---------+
|                                    |   | 2002    | 2001    | 2000    |
+------------------------------------+---+---------+---------+---------+
| ASSETS                             |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Current Assets                     |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Cash and cash equivalents        |   | 26,     | 36,     | 192,    |
|                                    |   | 669,901 | 728,375 | 943,936 |
+------------------------------------+---+---------+---------+---------+
|   Other current investment         |   | -       | 20,     | -       |
|                                    |   |         | 148,946 |         |
+------------------------------------+---+---------+---------+---------+
|   Trade accounts receivable - net  |   | 66,     | 76,     | 80,     |
|                                    |   | 453,939 | 834,155 | 659,523 |
+------------------------------------+---+---------+---------+---------+
|   Advances to related companies    |   | 19,     | 42,     | 19,     |
|                                    |   | 055,073 | 292,164 | 885,551 |
+------------------------------------+---+---------+---------+---------+
|   Inventories                      |   | 9,      | 10,     | 7,      |
|                                    |   | 198,204 | 864,190 | 931,408 |
+------------------------------------+---+---------+---------+---------+
|   Other current assets             |   | 7,      | 8,      | 13,     |
|                                    |   | 378,662 | 042,749 | 248,086 |
+------------------------------------+---+---------+---------+---------+
| Total current assets               |   | 128,    | 194,    | 314,    |
|                                    |   | 755,779 | 910,579 | 668,504 |
+------------------------------------+---+---------+---------+---------+
| Non Current Assets                 |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Long term loans to subsidiaries    |   | -       | 700,    | 909,    |
|                                    |   |         | 824,000 | 624,000 |
+------------------------------------+---+---------+---------+---------+
| Investment in subsidiaries         |   | 6,216,  | 4,717,  | 3,757,  |
| accounted for under the equity     |   | 676,368 | 916,421 | 404,264 |
| method                             |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Other long term investments        |   | 23,     | 88,     | 98,     |
|                                    |   | 851,800 | 955,300 | 688,400 |
+------------------------------------+---+---------+---------+---------+
| Property, plant and equipment -    |   | 699,    | 754,    | 731,    |
| net                                |   | 261,927 | 037,565 | 507,788 |
+------------------------------------+---+---------+---------+---------+
| Other non current assets           |   | 5,      | 3,      | 2,      |
|                                    |   | 458,503 | 072,848 | 996,103 |
+------------------------------------+---+---------+---------+---------+
| Negative goodwill on consolidation |   | (6,3    | (504,8  | -       |
|                                    |   | 68,304) | 58,387) |         |
+------------------------------------+---+---------+---------+---------+
| TOTAL ASSETS                       |   | 7,067,  | 5,954,  | 5,814,  |
|                                    |   | 636,073 | 858,326 | 889,059 |
+------------------------------------+---+---------+---------+---------+
| LIABILITIES AND SHAREHOLDERS'      |   |         |         |         |
| EQUITY                             |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Current liabilities                |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Bank overdrafts and short-term   |   | 125,    | -       | -       |
|   loans from financial             |   | 000,000 |         |         |
|   institutions                     |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Trade accounts payable           |   | 27,     | 29,     | 26,     |
|                                    |   | 228,483 | 124,732 | 032,347 |
+------------------------------------+---+---------+---------+---------+
|   Current portion of long-term     |   | 247,    | 160,    | 150,    |
|   loans                            |   | 500,000 | 000,000 | 000,000 |
+------------------------------------+---+---------+---------+---------+
|   Advances from related companies  |   | 12,     | 12,     | 7,      |
|                                    |   | 168,584 | 930,760 | 787,129 |
+------------------------------------+---+---------+---------+---------+
|   Corporate income tax payable     |   | -       | 10,     | 12,     |
|                                    |   |         | 618,820 | 881,726 |
+------------------------------------+---+---------+---------+---------+
|   Other current liabilities        |   | 44,     | 50,     | 39,     |
|                                    |   | 974,759 | 047,615 | 629,014 |
+------------------------------------+---+---------+---------+---------+
| Total current liabilities          |   | 456,    | 262,    | 236,    |
|                                    |   | 871,826 | 721,927 | 330,216 |
+------------------------------------+---+---------+---------+---------+

Company Balance Sheet (continued)

Unit : Baht

+------------------------------------+---+---------+---------+---------+
|                                    |   | The     |         |         |
|                                    |   | Company |         |         |
|                                    |   | Only    |         |         |
+------------------------------------+---+---------+---------+---------+
|                                    |   | 2002    | 2001    | 2000    |
+------------------------------------+---+---------+---------+---------+
| LIABILITIES AND SHAREHOLDERS'      |   |         |         |         |
| EQUITY                             |   |         |         |         |
|                                    |   |         |         |         |
| (continued)                        |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Non Current liabilities            |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Provision for loss on investment   |   | -       | 7,      | 5,      |
| in subsidiary                      |   |         | 921,170 | 906,642 |
+------------------------------------+---+---------+---------+---------+
| Long-term loans from subsidiaries  |   | 193,    | -       | -       |
|                                    |   | 000,000 |         |         |
+------------------------------------+---+---------+---------+---------+
| Long-term loans - net of current   |   | 640,    | 187,    | 360,    |
| portion                            |   | 000,000 | 500,000 | 000,000 |
+------------------------------------+---+---------+---------+---------+
| Other non current liabilities      |   | 8,      | 8,      | 8,      |
|                                    |   | 038,062 | 545,062 | 531,648 |
+------------------------------------+---+---------+---------+---------+
| TOTAL LIABILITIES                  |   | 1,297,  | 466,    | 610,    |
|                                    |   | 909,888 | 688,159 | 768,506 |
+------------------------------------+---+---------+---------+---------+
| Shareholders' equity               |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Share capital - registered,      |   | 846,    | 846,    | 846,    |
|   issued and fully paid-up,        |   | 701,430 | 701,430 | 701,430 |
|                                    |   |         |         |         |
|   84,670,143 ordinary shares of    |   |         |         |         |
|   Baht 10 each                     |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Premium on ordinary shares       |   | 2,062,  | 2,062,  | 2,062,  |
|                                    |   | 460,582 | 460,582 | 460,582 |
+------------------------------------+---+---------+---------+---------+
|   Capital reserve                  |   | 634,    | 634,    | 634,    |
|                                    |   | 698,720 | 698,720 | 698,720 |
+------------------------------------+---+---------+---------+---------+
|   Revaluation surplus              |   | 1,669,  | 1,399,  | 1,281,  |
|                                    |   | 833,202 | 214,033 | 141,966 |
+------------------------------------+---+---------+---------+---------+
|   Currency translation differences |   | 88,     | 89,     | 90,     |
|                                    |   | 602,459 | 676,249 | 492,322 |
+------------------------------------+---+---------+---------+---------+
|   Unrealised losses on             |   | -       | (282,8  | (294,6  |
|   available-for-sale securities    |   |         | 13,402) | 13,242) |
+------------------------------------+---+---------+---------+---------+
|   Retained earnings:               |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
|   Appropriated - statutory reserve |   | 79,     | 71,     | 56,     |
|                                    |   | 259,146 | 631,748 | 608,262 |
+------------------------------------+---+---------+---------+---------+
|   Unappropriated                   |   | 388,    | 666,    | 526,    |
|                                    |   | 170,646 | 600,807 | 630,513 |
+------------------------------------+---+---------+---------+---------+
|   Minority interests - equity      |   | -       | -       | -       |
|   attributable to minority         |   |         |         |         |
|   shareholders of subsidiaries     |   |         |         |         |
+------------------------------------+---+---------+---------+---------+
| Total shareholders' equity         |   | 5,769,  | 5,488,  | 5,204,  |
|                                    |   | 726,185 | 170,167 | 120,553 |
+------------------------------------+---+---------+---------+---------+
| TOTAL LIABILITIES AND              |   | 7,067,  | 5,954,  | 5,814,  |
| SHAREHOLDERS' EQUITY               |   | 636,073 | 858,326 | 889,059 |
+------------------------------------+---+---------+---------+---------+

 

Company Statement of Cash Flows 

Unit : Baht

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

                                         2002            2001            2000

  Cash flows from (used in) operating                                    
  activities                                                             

  Net cash inflow (outflow) from         218,937,192     103,047,278     133,257,179
  operating activities                                                   

  Cash flows from (used in) investing                                    
  activities                                                             

  Net cash inflow (outflow) from         (470,644,951)   72,577,447      459,672,541
  investing activities                                                   

  Cash flows from (used in) financing                                    
  activities                                                             

  Net cash inflow (outflow) from         241,649,285     (331,840,286)   (534,955,522)
  financing activities                                                   

  Net increase (decrease) in cash and    (10,058,474)    (156,215,561)   57,974,198
  cash equivalents                                                       

  Cash and cash equivalents at the       36,728,375      192,943,936     134,969,738
  beginning of the year                                                  

  Cash and cash equivalents at the end   26,669,901      36,728,375      192,943,936
  of the year                                                            

                                                                         

                                                                         

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

12.1.3 Financial ratios of the company and its subsidiaries

+------------------------------+-----+--------+---+--------+---+----------+---+
| CONSOLIDATED FINANCIAL       |     |        |   |        |   |          |   |
| RATIOS                       |     |        |   |        |   |          |   |
|                              |     |        |   |        |   |          |   |
| LTD.                         |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     | Consol |   |        |   |          |   |
|                              |     | idated |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     | 2002   |   | 2001   |   | 2000     |   |
|                              |     |        |   |        |   |          |   |
|                              |     |        |   | Re     |   |          |   |
|                              |     |        |   | stated |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Liquidity Ratio’s            |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Current Ratio                | Ti  | 0.93   |   | 1.38   |   | 1.27     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Quick Ratio                  | Ti  | 0.59   |   | 0.69   |   | 0.92     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Cash Flow From Operating     | Ti  | 0.64   |   | 0.97   |   | 0.94     |   |
| Activties Rates rrDrRrRatio  | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Receivables Turnover         | Ti  | 6.53   |   | 6.23   |   | 6.38     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Collection Period            | D   | 55.16  |   | 57.75  |   | 56.46    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Inventory Turnover           | Ti  | 16.25  |   | 19.19  |   | 27.29    |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Inventory Turnover Period    | D   | 22.16  |   | 18.76  |   | 13.19    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Accounts Payable Turnover    | Ti  | 13.71  |   | 12.26  |   | 13.95    |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Payment Period               | D   | 26.27  |   | 29.36  |   | 25.81    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Cash Cycle                   | D   | 51.05  |   | 47.15  |   | 43.84    |   |
|                              | ays |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Profitability Ratio’s        |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Gross Profit Margin          | %   | 31.08  |   | 35.24  |   | 38.12    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Profit Margin from           | %   | 16.20  |   | 28.93  |   | 30.98    |   |
| Operations                   |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Net Profit Margin            | %   | 5.32   |   | 10.81  |   | 13.15    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Equity             | %   | 2.38   |   | 5.03   |   | 5.89     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Efficiency Ratio’s           |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Total Assets       | %   | 1.85   |   | 4.03   |   | 4.55     |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Return On Fixed Assets       | %   | 5.61   |   | 8.92   |   | 10.13    |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
| Asset Turnover               | Ti  | 0.35   |   | 0.37   |   | 0.35     |   |
|                              | mes |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+
|                              |     |        |   |        |   |          |   |
+------------------------------+-----+--------+---+--------+---+----------+---+

+----------------------------+-----+----------+---+----------+---+----------+---+
| CONSOLIDATED FINANCIAL     |     |          |   |          |   |          |   |
| RATIOS (Continued)         |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | Cons     |   |          |   |          |   |
|                            |     | olidated |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | 2002     |   | 2001     |   | 2000     |   |
|                            |     |          |   |          |   |          |   |
|                            |     |          |   | Restated |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Financial Policy Ratio’s   |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Debt To Equity             | Ti  | 0.32     |   | 0.25     |   | 0.24     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Interest Coverage          | Ti  | 12.30    |   | 18.81    |   | 13.11    |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Payout Ratio (Cash Basis)  | Ti  | 0.33     |   | 0.66     |   | 0.77     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Payout Ratio      | %   | 249.77   |   | 65.26    |   | 45.78    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Share value’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Book Value Per Share       | B   | 75.78    |   | 75.30    |   | 77.00    |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Earnings (loss) Per Share  | B   | 1.80     |   | 3.83     |   | 4.37     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Per Share         | B   | 4.50     |   | 2.50     |   | 2.00     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Growth rate’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Assets               | %   | 5.86     |   | (1.21)   |   | (0.70)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Liabilities          | %   | 21.97    |   | 2.87     |   | (33.64)  |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Revenues             | %   | (4.61)   |   | 6.29     |   | 22.40    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Expenses             | %   | 10.77    |   | 9.15     |   | 21.73    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Net Income (Loss)          | %   | (112.61) |   | (14.06)  |   | 23.72    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+

+----------------------------+-----+---------+---+---------+---+---------+---+---+
| COMPANY FINANCIAL RATIOS   |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | Company |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     | 2002    |   | 2001    |   | 2000    |   |   |
|                            |     |         |   |         |   |         |   |   |
|                            |     |         |   | R       |   |         |   |   |
|                            |     |         |   | estated |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Liquidity Ratio’s          |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Current Ratio              | Ti  | 0.28    |   | 0.74    |   | 1.33    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Quick Ratio                | Ti  | 0.20    |   | 0.51    |   | 1.16    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Flow From Operating   | Ti  | 0.61    |   | 0.41    |   | 0.53    |   |   |
| Activities Ratio           | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Receivables Turnover       | Ti  | 5.52    |   | 5.45    |   | 6.45    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Collection Period          | D   | 65.19   |   | 66.01   |   | 55.85   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover         | Ti  | 27.32   |   | 28.20   |   | 32.64   |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Inventory Turnover Period  | D   | 13.18   |   | 12.77   |   | 11.03   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Accounts Payable Turnover  | Ti  | 9.73    |   | 9.61    |   | 16.63   |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Payment Period             | D   | 37.02   |   | 37.46   |   | 21.64   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Cash Cycle                 | D   | 41.35   |   | 41.32   |   | 45.23   |   |   |
|                            | ays |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profitability Ratio’s      |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Gross Profit Margin        | %   | 35.08   |   | 42.60   |   | 40.80   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Profit Margin from         | %   | 2.73    |   | 29.91   |   | 36.82   |   |   |
| Operations                 |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Net Profit Margin          | %   | 33.63   |   | 59.83   |   | 63.18   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Equity           | %   | 2.71    |   | 6.07    |   | 7.29    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Efficiency Ratio’s         |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Total Assets     | %   | 2.34    |   | 5.51    |   | 6.27    |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Return On Fixed Assets     | %   | 25.90   |   | 47.95   |   | 57.07   |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
| Asset Turnover             | Ti  | 0.07    |   | 0.09    |   | 0.10    |   |   |
|                            | mes |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+
|                            |     |         |   |         |   |         |   |   |
+----------------------------+-----+---------+---+---------+---+---------+---+---+

+----------------------------+-----+----------+---+----------+---+----------+---+
| COMPANY FINANCIAL RATIOS   |     |          |   |          |   |          |   |
| (Continued)                |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | Company  |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     | 2002     |   | 2001     |   | 2000     |   |
|                            |     |          |   |          |   |          |   |
|                            |     |          |   | Restated |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Financial Policy Ratio’s   |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Debt To Equity             | Ti  | 0.22     |   | 0.09     |   | 0.12     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Interest Coverage          | Ti  | 5.06     |   | 5.08     |   | 3.72     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Payout Ratio (Cash Basis)  | Ti  | 0.12     |   | 0.22     |   | 0.22     |   |
|                            | mes |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Payout Ratio      | %   | 249.77   |   | 65.26    |   | 45.78    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Share value’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Book Value Per Share       | B   | 68.14    |   | 64.82    |   | 61.46    |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Earnings (loss) Per Share  | B   | 1.80     |   | 3.83     |   | 4.37     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Dividend Per Share         | B   | 4.50     |   | 2.50     |   | 2.00     |   |
|                            | aht |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Growth rate’s              |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Assets               | %   | 15.74    |   | 2.35     |   | (2.83)   |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Liabilities          | %   | 64.04    |   | (30.87)  |   | (69.82)  |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Revenues             | %   | (19.51)  |   | (8.01)   |   | 10.05    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Total Expenses             | %   | 8.61     |   | (2.11)   |   | 24.50    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
| Net Income (Loss)          | %   | (112.61) |   | (14.06)  |   | 23.72    |   |
+----------------------------+-----+----------+---+----------+---+----------+---+
|                            |     |          |   |          |   |          |   |
+----------------------------+-----+----------+---+----------+---+----------+---+

12.2 Explanation and Analysis by management

  The net earnings attributable to the shareholders of Baht 153 million
  for the year ended 31st December 2002 was Baht 172 million lower than
  that of the prior year. The result has been distorted by the one-off
  recognition in the profit and loss account of the permanent diminution
  in the value of the Groups investment in available-for-sale
  securities. This has had the effect of reducing the net earnings by
  Baht 284 million.

  Before this exceptional item, the net earnings for the year ended 31
  December 2002 amounted to Baht 436 million which represents a Baht 112
  million or 34% increase over the prior year. The increase in
  profitability was largely achieved by financial management measures
  whereby corporate income tax was significantly reduced due to the
  benefits arising from tax planning projects undertaken in 2001. In
  addition a reduction in the share of profit in subsidiaries to
  minority interests was achieved as a consequence of the purchase of
  the minority interests in the 2 largest hotels of the Group, the
  Sheraton Grande Laguna Phuket and the Banyan Tree Phuket in late 2001
  and early 2002 respectively.

  Otherwise the hotel and property sales operations experienced a
  particularly difficult trading environment in 2002 with the effect of
  the global economy and the Bali bombing and its adverse impact on
  travel to the South East Asian region in particular resulting in lower
  operating revenues and profits, as detailed below.

Hotel Operations (Unit: Million Baht)

  ---------------- ----------- ------- ----------- ------- ----------- -------
                   2002        %       2001        %       2000        %
                                       Restated                        

                                                                       

  Revenues         2,557       100.0   2,630       100.0   2,538       100.0

                                                                       

  Expenses         1,772       69.3    1,711       65.1    1,618       63.8

                                                                       

  Operating Profit 785         30.7    919         34.9    920         36.2

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

As 89% of the Group Revenue is generated by the Hotel business,
occupancy and average room rate are two key components impacting the
Group’s revenue result. The revenue of the rooms division for the year
ended 31 December 2002 experienced a 6% reduction as compared to the
prior year and was driven by a decrease in both rates and occupancies.
The 2% reduction in the Baht average room rate was due to a stronger
Baht in 2002.

The decrease in occupancies from 69% in 2001 to 65% in 2002 was a result
of a number of factors, the most significant being the adverse impact of
the Bali bombing on travel to the South East Asian region in the high
yielding fourth quarter and the impact of the global economy which saw a
continued reduction in group and corporate travel to the resorts. The
flat average rate as compared to last year reflected a change in the
customer mix towards lower yielding guests in order to generate volumes
subsequent to the Bali bombing.

A 10% decrease in food and beverage revenue was a combination of the
lower occupancy in 2002 and a lower average spend per customer resulting
from the different market mix.

As a consequence of the above the total revenue from Hotel Operations
for the year ended 31 December 2002 decreased by Baht 73 million over
2001.

Expenses relating to the operation of the 4 hotels increased by Baht 61
million over last year. This was largely a result of the additional
operating costs of the Spa Pool villas which were fully operational
during 2002. Given that many of the costs in the hotel industry are
fixed it is difficult to reduce costs in the face of reducing revenues.
Expenditure on areas such as repairs and maintenance, linen, china and
other visible guest services are required to be maintained to keep the
properties in prime condition and providing the premium level of service
associated with our resorts. Whilst these expenditures are carefully
controlled, these costs, together with ongoing capital programmes, are
considered to be essential to the maintaining the resort in prime
condition.

Other

Another significant area of revenue generation is Laguna Property Sales,
both in direct villa, room, house and land, and land sales and
indirectly from the Allamanda Vacation Club, a professional and
successful time share operation. The Property Sales division also
experienced difficult trading conditions during 2002 resulting in
revenues being 11% lower than the prior year.

The group geared its investment in purchasing the remaining 49% of the
shares in Laguna Banyan Tree Limited early in the year. The subsequent
increase in the level of debt of the group being partially offset by
reducing interest rates resulted in the interest expense increasing from
Baht 67 million in 2001 to Baht 79 million in 2002.

Commentary on Consolidated Financial Ratios

Liquidity ratios

-   Current ratio – this is lower in 2002 due to the short-term loan to
    other company being repaid and short-term loans being taken out in
    2002.

-   Quick ratio – worsening position in 2002 is due to the lower trade
    receivables and cash balances and the short-term loan taken out in
    2002.

-   Cash flow from operating activities – this is lower than the prior
    year levels due to the increase in property development cost via the
    27 units in Angsana Spa & Resort Bintan being purchased, lower
    operating profits and higher current liabilities.

-   Receivable turnover – trend is consistent with the prior year
    levels.

-   Collection period – trend is consistent with the prior year levels.

-   Inventory turnover – the worsening position is due to the higher
    level of inventories being carried by the Banyan Tree Gallery and
    the Banyan Tree Phuket since 2001.

-   Inventory turnover period – the worsening position is due to the
    higher level of inventories being carried by the Banyan Tree Gallery
    and the Banyan Tree Phuket since 2001.

-   Accounts payable turnover – ratio is an improvement on the prior
    year due to lower trade creditors during 2002 despite an increasing
    level of direct costs.

-   Payment period – ratio is an improvement on the prior year due to
    lower trade creditors during 2002 despite an increasing level of
    direct costs.

-   Cash cycle – relatively consistent with the prior year level.

Profitability ratios

-   Gross profit margin – the worsening position is due to the tougher
    economic environment being experienced in 2002.

-   Profit margin from operations – the worsening position is due to the
    tougher economic environment being experienced in 2002 and the
    one-off write down in the carrying value in the investment
    available-for-sale securities.

-   Net profit margin – the worsening position is due to the tougher
    economic environment being experienced in 2002 and the one-off write
    down in the carrying value in the investment in available-for-sale
    securities. This was offset by the lower income tax and minority
    shareholders investment paid in 2002.

-   Return on equity – the worsening position is due to the tougher
    economic environment being experienced in 2002 and the one-off write
    down in the carrying value in the investment in available-for-sale
    securities. This was offset by the lower income tax and minority
    shareholders investment paid in 2002.

Efficiency ratios

-   Return on total assets – the worsening position is due to the
    one-off write-down in investments in 2002.

-   Return on fixed assets – the worsening position is due to the
    one-off write-down in investments in 2002.

-   Asset turnover – This is consistent with the prior year.

Financial policy ratios

-   Debt to equity – this ratio is higher than last year due to the
    increase in bank loans to purchase the investment in LBTL .

-   Interest cover – the increase as compared to last year is due to the
    higher loan balances being offset by a reduction in interest rates.
    This resulted in an increase in interest expense. The lower cash
    flows from operations is due to the lower operating profits as a
    result of the units in Angsana Spa and Resort Bintan being purchased
    out of operating cash flows.

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

-   Dividend pay-out ratio – the Board of Directors have proposed a
    dividend of Baht 2.00 per share for the 2002 financial year but at
    the time of this report being published, it had not been confirmed.
    This is in addition to the Baht 2.50 interim dividend.