5. Assets of the company

  5.1 Summary of operating assets of the company and its subsidiaries

  As at 31^(st) December 2003, the assets of Laguna Resorts & Hotels
  Public Company Limited and its subsidiary companies that are used in
  its business operations are as follows:

  LAND, BUILDINGS AND MACHINERY

 Baht : Million

+-----------------------+------+-------+------+------+------+-------+
| Type of assets        | T    | L     | La   | La   | La   | TW    |
|                       | otal | aguna | guna | guna | guna | R-Hol |
|                       |      | Re    | Gr   |      | B    | dings |
|                       |      | sorts | ande | Ba   | each | Li    |
|                       |      | &     | Lim  | nyan | Club | mited |
|                       |      | H     | ited | Tree | Lim  | &     |
|                       |      | otels | &    | Lim  | ited | sub   |
|                       |      | P     | subs | ited | &    | sidia |
|                       |      | ublic | idia | &    | su   | ries, |
|                       |      | Co    | ries | subs | bsid | and   |
|                       |      | mpany |      | idia | iary | Other |
|                       |      | Li    |      | ries |      |       |
|                       |      | mited |      |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Hotel properties      | 4,94 | 9     | 1,47 | 1,41 | 1,15 | -     |
|                       | 0.75 | 01.13 | 0.24 | 0.71 | 8.67 |       |
+-----------------------+------+-------+------+------+------+-------+
| Land and land         | 3,45 | 3     | 2,72 | 1    | 26   | 1     |
| improvement           | 9.30 | 02.53 | 2.03 | 6.55 | 1.33 | 56.86 |
+-----------------------+------+-------+------+------+------+-------+
| Land awaiting for     | 65   | -     | 10   | -    | -    | 5     |
| development           | 8.27 |       | 5.53 |      |      | 52.74 |
+-----------------------+------+-------+------+------+------+-------+
| Buildings and staff   | 11   | 53.01 | 2    | -    | -    | 34.89 |
| dormitories           | 1.88 |       | 3.98 |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Furniture, fixtures   | 29   | 27.14 | 7    | -    | -    | 1     |
| and equipment         | 6.83 |       | 5.06 |      |      | 94.63 |
+-----------------------+------+-------+------+------+------+-------+
| Golf course           | 28   | -     | 28   | -    | -    | -     |
|                       | 2.75 |       | 2.75 |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Motor vehicles        | 10   | 7.23  | 1    | 1    | 2    | 38.84 |
|                       | 1.80 |       | 7.36 | 5.82 | 2.55 |       |
+-----------------------+------+-------+------+------+------+-------+
| Construction in       | 4    | 8.73  | 1.59 | 3    | 2.90 | 0.88  |
| process               | 5.78 |       |      | 1.68 |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Total property and    | 9,89 | 1,2   | 4,69 | 1,47 | 1,44 | 9     |
| equipment at cost and | 7.36 | 99.77 | 8.54 | 4.76 | 5.45 | 78.84 |
| valuation.            |      |       |      |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Less : Accumulated    | (2   | (61   | (1   | (398 | (606 | (14   |
| depreciation          | ,904 | 5.62) | ,139 | .49) | .99) | 3.79) |
|                       | .79) |       | .90) |      |      |       |
+-----------------------+------+-------+------+------+------+-------+
| Property and          | 6,99 | 6     | 3,55 | 1,07 | 83   | 8     |
| equipment, net book   | 2.57 | 84.15 | 8.64 | 6.27 | 8.46 | 35.05 |
| value                 |      |       |      |      |      |       |
+-----------------------+------+-------+------+------+------+-------+

  Laguna Resorts & Hotels Public Company Limited

As at 31^(st) December 2003, the assets consisted of Laguna Resorts &
Hotels Public Company Limited land at Sunsai, Chiang Mai of 363-2-52 Rai
and land at Bangtao Bay, Phuket of 51-2-94.1 Rai which is the site of
the Dusit Laguna Resort (consisting of buildings, furniture, fixtures
and equipment) and Canal Village. The following area is under mortgage
with the bank:

-   51-2-94.1 Rai mortgaged with Siam Commercial Bank Public Co., Ltd.

  The net book value of the assets of the Company amounted to Baht
  684.15 million as at 31^(st) December 2003.

  The value of the land and buildings of the Dusit Laguna Resort
  appraised by Simon Lim & Partner Ltd. on 28^(th) November 2001 and
  14^(th) May 2003 was Baht 642.53 million. This appraisal valuation has
  been included in the company financial statements for the year ended
  31^(st) December 2003.

Subsidiary Companies

  Laguna Grande Limited and its subsidiary companies

  As at 31^(st) December 2003, the assets consisted of 1,678-0-92.7 Rai
  of land owned by Laguna Grande Limited and its subsidiary companies at
  Bangtao Bay, Phuket, which is the site of the Sheraton Grande Laguna
  Phuket Hotel (consisting of buildings, furniture, fixtures and
  equipment and condominiums), the Laguna Phuket Golf Club and land
  plots available for sale and land awaiting future development. Some
  areas are under mortgage with banks / financial institutions as
  follows:

-   187-0-41.9 Rai mortgaged with Siam Commercial Bank Public Co., Ltd.;

-   94-3-97.1 Rai mortgaged with Kasikorn Bank Public Co., Ltd.;

-   63-1-54.4 Rai mortgaged with Bankthai Public Co., Ltd.; and

  The net book value of the assets owned by Laguna Grande Limited and
  its subsidiary companies amounted to Baht 3,558.64 million as at
  31^(st) December 2003.

  The value of the buildings of the Sheraton Grande Laguna Phuket, land
  of the Laguna Phuket Golf Club and land awaiting development appraised
  by Simon Lim & Partner Ltd. on 28^(th) November 2001 and 24^(th)
  December 2002 was Baht 3,643.71 million. This appraisal valuation has
  been included in the company financial statements for the year ended
  31^(st) December 2003.

Laguna Banyan Tree Limited and its subsidiary companies

  As at 31^(st) December 2003, the assets of the company and its
  subsidiary companies comprise the Banyan Tree Phuket Resort located at
  Bangtao Bay, Phuket which consists of buildings, furniture, fixtures
  and equipment and Lijiang Banyan Tree Hotel located at China which
  consists of land and will construction in 2004.

The net book value of the assets owned by Laguna Banyan Tree Limited and
its subsidiary companies amounted to Baht 1,076.27 million, as at
31^(st) December 2003.

The appraisal value of the buildings of Banyan Tree Phuket as assessed
by Simon Lim & Partner Co., Ltd. on 28^(th) November 2001 was Baht
740.38 million. This appraisal excluded the Spa Pool Villas which were
under construction at the time of the valuation (net book value at 31
December 2003: Baht 223.07 million) and land of Lijiang Banyan Tree
Hotel located in China (net book value at 31 December 2003 : Baht 16.55
million). The above appraisal value has been shown in the company
financial statements for the year ended 31^(st) December 2003.

  Laguna Beach Club Limited and its subsidiary company

As at 31^(st) December 2003, the assets of the company comprise the
Laguna Beach Resort located at Bangtao Bay, Phuket which consists of
buildings, furniture, fixtures and equipment. The land on which the
hotel is situated belongs to Laguna (1) Co., Ltd., which is 100% owned
by Laguna Beach Club Ltd.

The book value of the assets owned by Laguna Beach Club Limited and its
subsidiary company amounted to Baht 838.46 million as at 31^(st)
December 2003.

The value of the land and buildings of the Laguna Beach Resort appraised
by Simon Lim & Partner Co., Ltd. on 28^(th) November 2001 was Baht
902.56 Million. The above appraisal value has been shown in the company
financial statements for the year ended 31^(st) December 2003.

TWR Holdings Limited and its subsidiary companies, and other subsidiary
companies

As at 31^(st) December 2003, the assets of the company and its
subsidiary companies, and other subsidiary companies, consists of land,
land awaiting for development, buildings and equipment. The following
area is under mortgage of the bank:

-   44-3-4.1 Rai being mortgaged with Siam Commercial Bank Public Co.,
    Ltd.

These assets have a net book value of Baht 835.05 million as at 31^(st)
December 2003. The land which is the site of the resort and property
development in Chiangrai and Mae Hong Sorn belong to the subsidiary
companies of TWR-Holdings Limited of Phuket Resort Development Ltd., Pai
Samart Development Co., Ltd., Mae Chan Property Co., Ltd. and Thalang
Development Co., Ltd.

The valuations as performed by Simon Lim & Partner Ltd. on 28^(th)
November 2001 and 24^(th) December 2002 are included as Attachment 4.

INVESTMENTS

The interests of Laguna Resorts & Hotels Public Company Limited (both
direct and indirect) in its investments in subsidiary, associate and
other companies as at 31 December 2003 are summarised below.

+----------+---------+------+------+----+-----+-----+--------+---+
| Company  | Type of | Pai  | % of | Ye | Inv | I   | Shareh | N |
| name     | b       | d-up | s    | ar | est | nve | olders | o |
|          | usiness | s    | hare | in | men | stm | which  | t |
|          |         | hare | hold | ve | t - | ent | hold   | e |
|          |         | cap  | -ing | st | c   | –   | more   |   |
|          |         | ital |      | ed | ost | equ | than   |   |
|          |         |      |      |    | met | ity | 10 %   |   |
|          |         | (Mil |      |    | hod | met |        |   |
|          |         | lion |      |    |     | hod |        |   |
|          |         |      |      |    | (M  | (M  |        |   |
|          |         | B    |      |    | ill | ill |        |   |
|          |         | aht) |      |    | ion | ion |        |   |
|          |         |      |      |    | Ba  | Ba  |        |   |
|          |         |      |      |    | ht) | ht) |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Subs     |         |      |      |    |     |     |        |   |
| idiaries |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| TWR-     | Inv     | 1,25 | 10   | 19 | 1,  | 1,  |        |   |
| Holdings | estment | 0.00 | 0.00 | 93 | 250 | 150 |        |   |
| Ltd.     | holding |      |      |    | .00 | .18 |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| A        | Time    | 33   | 10   | 19 | 330 | 523 |        |   |
| llamanda | share   | 0.00 | 0.00 | 94 | .00 | .74 |        |   |
| Vacation | b       |      |      |    |     |     |        |   |
| Club     | usiness |      |      |    |     |     |        |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Dormant | 0.50 | 10   | 19 | 0   | (0. |        |   |
| Sports   |         |      | 0.00 | 94 | .50 | 01) |        |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Op      | 1,00 | 10   | 19 | 899 | 2,  |        |   |
| Grande   | erating | 0.00 | 0.00 | 93 | .19 | 380 |        |   |
| Ltd.     | a golf  |      |      |    |     | .30 |        |   |
|          | club    |      |      |    |     |     |        |   |
|          | and     |      |      |    |     |     |        |   |
|          | p       |      |      |    |     |     |        |   |
|          | roperty |      |      |    |     |     |        |   |
|          | deve    |      |      |    |     |     |        |   |
|          | lopment |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Laguna   | Provide | 9    | 86.5 | 19 | 22  | 21  |   LRH  | ( |
| Service  | ut      | 0.50 |      | 91 | .35 | .73 |   =    | 2 |
| Co.,     | ilities |      |      |    |     |     |        | ) |
| Ltd.     | and     |      |      |    |     |     |  24.7% |   |
|          | other   |      |      |    |     |     |        |   |
|          | s       |      |      |    |     |     |   BGL  |   |
|          | ervices |      |      |    |     |     |   =    |   |
|          | to      |      |      |    |     |     |   31.1 |   |
|          | hotels  |      |      |    |     |     |   %    |   |
|          | and     |      |      |    |     |     |        |   |
|          | ope     |      |      |    |     |     |   LBC  |   |
|          | rations |      |      |    |     |     |   =    |   |
|          | of the  |      |      |    |     |     |   27.1 |   |
|          | Company |      |      |    |     |     |   %    |   |
|          | and     |      |      |    |     |     |        |   |
|          | subsi   |      |      |    |     |     |   LBTL |   |
|          | diaries |      |      |    |     |     |   =    |   |
|          |         |      |      |    |     |     |   17.1 |   |
|          |         |      |      |    |     |     |   %    |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Banyan   | Sales   | 7.75 | 5    | 19 | 3   | 40  | BTHL = |   |
| Tree     | of      |      | 1.00 | 94 | .95 | .84 | 49%    |   |
| Gallery  | merc    |      |      |    |     |     |        |   |
| (T       | handise |      |      |    |     |     |        |   |
| hailand) |         |      |      |    |     |     |        |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| We       | Dormant | 1.00 | 5    | 19 | 0   | 1   | WCE =  |   |
| nco-Thai |         |      | 1.00 | 93 | .51 | .65 | 49%    |   |
| Ltd.     |         |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Banyan   | Sales   | S$   | 5    | 19 | 3   | 15  | BTHL = | ( |
| Tree     | of      | 0.43 | 1.00 | 94 | .95 | .59 | 49%    | 5 |
| Gallery  | merc    |      |      |    |     |     |        | ) |
| (Si      | handise | 0.10 | 10   | 20 | 46  | 138 |        |   |
| ngapore) |         |      | 0.00 | 01 | .42 | .97 |        |   |
| Pte. Ltd | P       |      |      |    |     |     |        |   |
|          | roperty |      |      |    |     |     |        |   |
| Laguna   | deve    |      |      |    |     |     |        |   |
| (3) Ltd. | lopment |      |      |    |     |     |        |   |
+----------+---------+------+------+----+-----+-----+--------+---+
| Cheer    | Inv     | HK$  | 10   | 20 | -   | 2   |        | ( |
| Golden   | estment | -    | 0.00 | 02 |     | .43 |        | 5 |
| Ltd.     | holding |      |      |    |     |     |        | ) |
+----------+---------+------+------+----+-----+-----+--------+---+

+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Company name | Type  | P   | %   | Ye | Inv | I   | Shareh | N |
|              | of    | aid | of  | ar | est | nve | olders | o |
|              | bus   | -up | s   | In | men | stm | which  | t |
|              | iness | sh  | har | ve | t - | ent | hold   | e |
|              |       | are | eho | st | c   | –   | more   |   |
|              |       | c   | ld- | ed | ost | equ | than   |   |
|              |       | api |     |    | met | ity | 10 %   |   |
|              |       | tal | ing |    | hod | met |        |   |
|              |       | (M  |     |    |     | hod |        |   |
|              |       | ill |     |    | (M  | (M  |        |   |
|              |       | ion |     |    | ill | ill |        |   |
|              |       | Ba  |     |    | ion | ion |        |   |
|              |       | ht) |     |    | Ba  | Ba  |        |   |
|              |       |     |     |    | ht) | ht) |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Subsidiaries |       |     |     |    |     |     |        |   |
| held through |       |     |     |    |     |     |        |   |
| TWR-Holdings |       |     |     |    |     |     |        |   |
| Ltd.         |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Pai Samart   | Pro   | 28  | 100 | 19 |     | (   |        |   |
| Development  | perty | .40 | .00 | 90 |     | 39. |        |   |
| Co., Ltd.    | d     |     |     |    |     | 82) |        |   |
|              | evelo | 232 | 100 | 19 |     |     |        |   |
| Mae Chan     | pment | .30 | .00 | 90 |     | (3  |        |   |
| Property     |       |     |     |    |     | 59. |        |   |
| Co., Ltd.    | Pro   |     |     |    |     | 73) |        |   |
|              | perty |     |     |    |     |     |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Phuket       | Pro   | 41  | 100 | 19 |     | 180 |        |   |
| Resort       | perty | .40 | .00 | 96 |     | .50 |        |   |
| Development  | d     |     |     |    |     |     |        |   |
| Ltd.         | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna       | Hotel | 500 | 100 | 19 | 835 | 658 |        | ( |
| Banyan Tree  | opera | .00 | .00 | 92 | .14 | .13 |        | 3 |
| Ltd.         | tions |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| PCD Ltd.     | Do    | 0   | 100 | 19 |     | (   |        |   |
|              | rmant | .10 | .00 | 94 |     | 11. |        |   |
|              |       |     |     |    |     | 31) |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna Beach | Hotel | 200 | 60  | 19 | 85  | 301 | PR(T)  | ( |
| Club Ltd.    | opera | .00 | .00 | 93 | .00 | .24 | = 40%  | 1 |
|              | tions |     |     |    |     |     |        | ) |
|              |       |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 3 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Laguna (1)   | Pro   | 15  | 60  | 19 |     | 101 | PR(T)  | ( |
| Ltd.         | perty | .00 | .00 | 93 |     | .18 | = 40%  | 1 |
|              | d     |     |     |    |     |     |        | ) |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 3 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| PT AVC       | Has   | U   | 100 | 20 |     | (2. |        | ( |
| Indonesia    | not   | S$0 | .00 | 02 |     | 46) |        | 5 |
|              | yet   | .70 |     |    |     |     |        | ) |
|              | ope   |     |     |    |     |     |        |   |
|              | rated |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Talang       | Pro   | 251 | 50  | 20 |     | (0. | SB (3) |   |
| Development  | perty | .00 | .00 | 02 |     | 18) | = 50%  |   |
| Co., Ltd.    | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Lijiang      | Hotel | U   | 70  | 20 |     | (0. | BTHL = | ( |
| Banyan Tree  | opera | S$0 | .00 | 03 |     | 29) | 30%    | 5 |
| Hotel Co.,   | tions | .96 |     |    |     |     |        | ) |
| Ltd.         |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Twin Waters  | Pro   | 214 | 100 | 20 |     | 22  |        |   |
| Development  | perty | .37 | .00 | 03 |     | .69 |        |   |
| Co., Ltd.    | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Subsidiaries |       |     |     |    |     |     |        |   |
| held through |       |     |     |    |     |     |        |   |
| Laguna       |       |     |     |    |     |     |        |   |
| Grande Ltd.  |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (1)  | Pro   | 20  | 100 | 19 |     | 57  |        |   |
| Ltd.         | perty | .93 | .00 | 90 |     | .33 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (2)  | Pro   | 19  | 100 | 19 |     | 83  |        |   |
| Ltd.         | perty | .10 | .00 | 90 |     | .91 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (3)  | Pro   | 7   | 100 | 19 |     | 85  |        |   |
| Ltd.         | perty | .75 | .00 | 90 |     | .20 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao (4)  | Pro   | 14  | 100 | 19 |     | 166 |        |   |
| Ltd.         | perty | .55 | .00 | 90 |     | .40 |        |   |
|              | d     |     |     |    |     |     |        |   |
|              | evelo |     |     |    |     |     |        |   |
|              | pment |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Bangtao      | Pro   | 80  | 100 | 19 |     | 971 |        |   |
| Development  | perty | .00 | .00 | 90 |     | .20 |        |   |
| Ltd.         | d     |     |     |    |     |     |        |   |
|              | evelo | 1   | 100 | 20 |     | (0. |        |   |
| Laguna       | pment | .00 | .00 | 01 |     | 07) |        |   |
| Central Ltd. |       |     |     |    |     |     |        |   |
|              | Has   | 1,  | 100 | 20 |     | 347 |        |   |
| Bangtao      | not   | 546 | .00 | 01 |     | .38 |        |   |
| Grande Ltd.  | yet   | .00 |     |    |     |     |        |   |
|              | ope   |     |     |    |     |     |        |   |
|              | rated |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     |        |   |
|              | Hotel |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     |        |   |
|              | Opera |     |     |    |     |     |        |   |
|              | tions |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 3,  | 6,  |        |   |
|              |       |     |     |    | 477 | 836 |        |   |
|              |       |     |     |    | .01 | .72 |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+

+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Company name | Type  | P   | %   | Ye | Inv | I   | Shareh | N |
|              | of    | aid | of  | ar | est | nve | olders | o |
|              | bus   | -up | s   | In | men | stm | which  | t |
|              | iness | sh  | har | ve | t - | ent | hold   | e |
|              |       | are | eho | st | c   | –   | more   |   |
|              |       | c   | ld- | ed | ost | equ | than   |   |
|              |       | api | ing |    | met | ity | 10 %   |   |
|              |       | tal |     |    | hod | met |        |   |
|              |       | (M  |     |    |     | hod |        |   |
|              |       | ill |     |    | (M  | (M  |        |   |
|              |       | ion |     |    | ill | ill |        |   |
|              |       | Ba  |     |    | ion | ion |        |   |
|              |       | ht) |     |    | Ba  | Ba  |        |   |
|              |       |     |     |    | ht) | ht) |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Associates   |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Ownrep       | Pr    | S$  | 50  | 19 | 18  | -   | TRL =  | ( |
| Project      | oject | 2   | .00 | 91 | .11 |     | 50%    | 4 |
| Services     | consu | .00 |     |    |     |     |        | ) |
| Pte. Ltd.    | ltant |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 5 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 18  | -   |        |   |
|              |       |     |     |    | .11 |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Other        |       |     |     |    |     |     |        |   |
| investments  |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Tropical     | Inves | US$ | 19  | 19 | 147 | -   | TWC =  | ( |
| Resorts      | tment | 50  | .80 | 90 | .76 |     | 19.8%  | 4 |
| Limited      | ho    | .50 |     |    |     |     |        | ) |
|              | lding |     |     |    |     |     | JAIC = |   |
|              |       |     |     |    |     |     | 18.8%  | ( |
|              |       |     |     |    |     |     |        | 5 |
|              |       |     |     |    |     |     | NSR =  | ) |
|              |       |     |     |    |     |     | 30%    |   |
|              |       |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     | CFC =  |   |
|              |       |     |     |    |     |     | 11.6 % |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Thai Wah     | C     | 750 | 13  | 19 | 67  | -   |        | ( |
| Public Co.,  | ommod | .76 | .10 | 88 | .85 |     |        | 3 |
| Ltd.         | ities |     |     |    |     |     |        | ) |
|              |       |     |     |    |     |     |        |   |
|              |       |     |     |    |     |     |        | ( |
|              |       |     |     |    |     |     |        | 6 |
|              |       |     |     |    |     |     |        | ) |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| TRL          | Inves | U   | 19  | 20 | 0   | -   |        | ( |
| Investment   | tment | S$0 | .80 | 03 | .08 |     |        | 5 |
| Ltd.         | ho    | .01 |     |    |     |     |        | ) |
|              | lding |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
| Hua Hin      | Hotel | 10  | 10  | 20 | 1   | -   |        |   |
| Beach        | Opera | .00 | .00 | 03 | .00 |     |        |   |
| Resorts Co., | tions |     |     |    |     |     |        |   |
| Ltd          |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    |     |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 216 | -   |        |   |
|              |       |     |     |    | .69 |     |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+
|              |       |     |     |    | 3,  | 6,  |        |   |
|              |       |     |     |    | 711 | 836 |        |   |
|              |       |     |     |    | .81 | .72 |        |   |
+--------------+-------+-----+-----+----+-----+-----+--------+---+

  Remarks:

  1. The company has recognised its effective interest in this
  subsidiary at 50% in accordance with the profit sharing percentage in
  the Articles of Association.

  2. Both direct and indirect shareholding in Laguna Services Co., Ltd.

  3. Both direct and indirect shareholding by LRH and TWRH.

  4. Indirect shareholding through TWRH.

  5. Paid-up share capital of investment in foreign companies are
  presented in foreign currencies in million Singapore, Hong Kong or
  United States dollars.

  6. Market value of investment in TWC as at 31^(st) December 2003 is
  Baht 6.90 per share.

  Abbreviations

  ------ ---------------------------------- ------- ------------------------
  BGL    = Bangtao Grande Ltd.              NSR     = Natsteel Resort Ltd.

  BTHL   = Banyan Tree Holdings Pte Ltd.    PR(T)   = Pacific Resort
                                                    (Thailand) Co., Ltd.

  CFC    = Chang Fung Co., Ltd.             SB (3)  = Sangchan Business (3)
                                                    Co., Ltd.

  JAIC   = Japan Asia Investments Corp.     TRL     = Tropical Resorts Ltd.
         Fund                                       

  LBC    = Laguna Beach Club Ltd.           TWC     = Thai Wah Public Co.,
                                                    Ltd.

  LBTL   = Laguna Banyan Tree Ltd.          TWRH    = TWR – Holdings
                                                    Limited.

  LRH    = Laguna Resorts & Hotels Public   WCE     = Wah Chang Engineering
         Company Limited                            Corp. Ltd.
  ------ ---------------------------------- ------- ------------------------

 

NET ASSET VALUE

+----------------------------------------+--------------+--------------+
|                                        | Million Baht | Value per    |
|                                        |              | share        |
|                                        |              |              |
|                                        |              | (Baht)       |
+----------------------------------------+--------------+--------------+
| Assets                                 | 7,131.89     |              |
+----------------------------------------+--------------+--------------+
| Add : Revaluation of hotel properties  | 1,592.80     |              |
| and land                               |              |              |
+----------------------------------------+--------------+--------------+
| Total assets                           | 8,724.69     | 103.04       |
+----------------------------------------+--------------+--------------+
| Less : Total liabilities               | (2,069.64)   | (24.44)      |
+----------------------------------------+--------------+--------------+
| Net Assets                             | 6,655.05     | 78.60        |
+----------------------------------------+--------------+--------------+
| Less : Commitments which may occur     | -            | -            |
+----------------------------------------+--------------+--------------+
| Net Asset Value                        | 6,655.05     | 78.60        |
+----------------------------------------+--------------+--------------+

  Remark: The company and the subsidiaries company do not have any
  contingent liabilities relating to the execution of any guarantee or
  mortgage to any party which is not either the company or its
  subsidiary companies.

2.  Developing of real estate summary

+--------+-----------+----+----+----+------+-----------+-----+-----+
| P      | Company   | P  | T  | Ou | Area | Land      | Ex  | In  |
| roject |           | ro | ot | ts |      | owner     | pec | ves |
|        |           | je | al | ta | (Rai |           | ted | t-m |
|        |           | ct | U  | n- | -Nga |           | Per | ent |
|        |           |    | ni | di | n-Sq |           | iod | Va  |
|        |           | Ty | ts | ng | .w.) |           | to  | lue |
|        |           | pe |    | U  |      |           | Se  |     |
|        |           |    |    | ni |      |           | ll/ | (M  |
|        |           |    |    | ts |      |           |     | ill |
|        |           |    |    |    |      |           | D   | ion |
|        |           |    |    |    |      |           | eve |     |
|        |           |    |    |    |      |           | lop | Ba  |
|        |           |    |    |    |      |           |     | ht) |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Island | Laguna    | C  | 52 | -  | 4-1  | Laguna    | -   | 184 |
| Villas | Grande    | on |    |    | -4.5 | Grande    |     |     |
|        | Ltd.      | do |    |    |      | Ltd.      |     |     |
|        |           | mi |    |    |      |           |     |     |
|        |           | ni |    |    |      |           |     |     |
|        |           | um |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| The    | Laguna    | C  | 95 | -  | 9-0  | Laguna    | -   | 242 |
| All    | Grande    | on |    |    | -2.9 | Grande    |     |     |
| amanda | Ltd.      | do |    |    |      | Ltd.      |     |     |
| 1      |           | mi |    |    |      |           |     |     |
|        |           | ni |    |    |      |           |     |     |
|        |           | um |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| The    | Laguna    | C  | 1  | 5  | 1    | Laguna    | 1   | 493 |
| All    | Grande    | on | 41 |    | 2-1- | Grande    | y   |     |
| amanda | Ltd.      | do |    |    | 59.7 | Ltd.      | ear |     |
| 2&3    |           | mi |    |    |      |           |     |     |
|        |           | ni |    |    |      |           |     |     |
|        |           | um |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Laguna | Laguna    | La | 54 | -  | 6    | Laguna    | -   | 66  |
|        | Grande    | nd |    |    | 7-2- | Grande    |     |     |
| Homes  | Ltd.      |    |    |    | 63.9 | Ltd.      |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Laguna | Laguna    | La | 20 | 1  | 1    | Laguna    | 1   | 181 |
| Resi   | Grande    | nd |    |    | 8-0- | Grande    | y   |     |
| dences | Ltd.      | &  |    |    | 59.0 | Ltd.      | ear |     |
| 1      |           | h  |    |    |      |           |     |     |
|        |           | ou |    |    |      |           |     |     |
|        |           | se |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Laguna | Laguna    | La | 18 | 9  | 7-3- | Twin      | 1   | 129 |
| Tow    | Grande    | nd |    |    | 87.9 | Waters    | y   |     |
| nhomes | Ltd.      | &  |    |    |      | De        | ear |     |
| 1      |           | h  |    |    |      | velopment |     |     |
|        |           | ou |    |    |      | Co., Ltd. |     |     |
|        |           | se |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Laguna | Twin      | La | 19 | 19 | 2    | Twin      | 1   | 181 |
| Resi   | Waters    | nd |    |    | 1-0- | Waters    | y   |     |
| dences | De        | &  |    |    | 58.8 | De        | ear |     |
| 2      | velopment | h  |    |    |      | velopment |     |     |
|        | Co., Ltd. | ou |    |    |      | Co., Ltd. |     |     |
|        |           | se |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Laguna | Allamanda | La | 24 | 24 | 12   | Allamanda | 1   | 177 |
| Tow    | Vacation  | nd |    |    | -0-5 | Vacation  | y   |     |
| nhomes | Club      | &  |    |    | 1.39 | Club      | ear |     |
| 2      | Limited   | h  |    |    |      | Limited   |     |     |
|        |           | ou |    |    |      |           |     |     |
|        |           | se |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+
| Banyan | Laguna    | V  | 12 | -  | 2    | Bang Tao  | -   | 114 |
| Tree   | Banyan    | il |    |    | -2-1 | De        |     |     |
| Phuket | Tree Ltd. | la |    |    | 5.54 | velopment |     |     |
| -2     |           |    |    |    |      | Co., Ltd. |     |     |
| B      |           |    |    |    |      |           |     |     |
| edroom |           |    |    |    |      |           |     |     |
| Villas |           |    |    |    |      |           |     |     |
+--------+-----------+----+----+----+------+-----------+-----+-----+

Island Villas are located at 10 Moo 4 Srisoontorn Road, Cherngtalay
District, Amphur Talang, Phuket Province.

  The Allamanda 1 is located at 29 Moo 4 Cherngtalay District, Amphur
  Talang, Phuket Province.

  The Allamanda 2&3 is located at 29 Moo 4 Srisoontorn Road, Cherngtalay
  District, Amphur Talang, Phuket Province.

  Laguna Homes are located at Moo 4 Srisoontorn Road, Cherngtalay
  District, Amphur Talang, Phuket Province.

  The Laguna Residences projects are located at Moo 4 Srisoontorn Road,
  Cherngtalay District, Amphur Talang, Phuket Province.

  The Laguna Townhomes projects are located at Moo 4 Srisoontorn Road,
  Cherngtalay District, Amphur Talang, Phuket Province.

  Banyan Tree Phuket 2 Bedroom Villas are located at 33 Moo 4,
  Srisoontorn Road, Cherngtalay District, Amphur Talang, Phuket
  Province.

[TABLE]

  ----------------------------- -------------- -------------- -------------
  Project                       Income                        
                                recognised                    
                                (Million Baht)                

                                2003           2002           2001

  Island Villas                 -              -              -

  The Allamanda 1               -              -              14

  The Allamanda 2&3             6              34             6

  Laguna Homes                  7              39             33

  Laguna Residences 1           249            58             -

  Laguna Townhomes 1            111            -              -

  Banyan Tree Phuket - 2        -              -              97
  Bedroom Villas                                              
  ----------------------------- -------------- -------------- -------------

  ----------------------------- -------------- -------------- --------------
  Project                       Total cash                    Amount sold to
                                received                      management or
                                                              shareholders

                                Million Baht   % of sold      
                                               value          

  Island Villas                 353            100%           -

  The Allamanda 1               410            98%            -

  The Allamanda 2&3             598            93%            -

  Laguna Homes                  206            100%           -

  Laguna Residences 1           190            62%            -

  Laguna Townhomes 1            47             42%            -

  Banyan Tree Phuket – 2        185            93%            -
  Bedroom Villas                                              
  ----------------------------- -------------- -------------- --------------

  Details of receivables due in each project as at 31^(st) December 2003
  is as follows:

[TABLE]

  Details of overdue receivables as at 31^(st) December, 2003

[TABLE]

  Property Under Construction as at 31^(st) December 2003

There are 8 Laguna Residences and 4 Laguna Townhomes under construction as at 31 December 2003 and are budgeted to cost Baht 81 million and 27 million. Costs incurred at 31^(st) December 2003 are Baht 43 million and Baht 20 million respectively.

Property Projects Suspended

  Laguna Home Chiangrai Phase 1 was suspended in 1997 due to the poor
  property market. If market conditions improve the project will be
  re-started.

5.3 Intangible assets

Goodwill

On 29 May 2003, the company acquired 10 percent of the shares of Laguna
Beach Club Ltd. Goodwill on consolidation of Baht 5 million which
represents the excess of the purchase price over the fair value is
regarded as an asset in the balance sheet and is amortised on
straight-line basis over 20 years.

On 8 January 2002, the company acquired 49 percent of the shares of
Laguna Banyan Tree Ltd. Goodwill on consolidation of Baht 501 million
which represents the excess of the purchase price over the fair value is
regarded as an asset in the balance sheet and is amortised on
straight-line basis over 20 years.

5.4 Investment / management policy of the company and its subsidiary
companies

The current intention of management in regard to investment policy in
the company and its subsidiary companies is to pursue any investment
opportunities within Laguna Phuket that provides the shareholders with a
sufficient return on investment. Such opportunities are summarised in
section 6 below.