INTERM CONSOLIDATE AND EQUITY METHOD FINANCE STATMENTS 1/98

4. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 4.1 For the quarter ended March 31, 1998, cash paid for interest and income tax are as follows: CONSOLIDATED EQUITY METHOD Baht Baht Interest 80,689,573 38,660,938 Income tax 4,210,806 - 4.2 For the quarter ended March 31, 1998, non cash transactions are as follows : 4.2.1 The recording of unrealized loss on translation of the subsidiary+s financial statements into Baht which was presented as a deduction in the shareholders+ equity. 4.2.2 The transfer of long-term loan of the subsidiary to long-term liabilities converted to current liabilities according to contracts. 5. LONG-TERM LIABILITIES CONVERTED TO CURRENT LIABILITIES ACCORDING TO CONTRACTS As at March 31, 1998, one subsidiary had not complied with the covenant of maintaining liabilities to capital ratio as specified in the loan agreement, accordingly, the loan was presented as long-term liabilities converted to current liabilities according to contracts. However, the subsidiary will negotiate with the lender regarding this matter at a later date or obtain funds for repayment of the loan from Royal Princess Public Company Limited . 6. PROFIT ON SALE OF INVESTMENT For the quarter ended March 31, 1998, the Company had profit in the amount of Baht 375,770,889 from the sale of investment in Dusit Sindhorn Company Limited to Siam Sindhorn Company Limited and the proceeds from sale was received at the end of the quarter. Dusit Sindhorn Company Limited is an associated company whose share capital was 49.99% owned by the Company. …/4 - 4 - 7. DERIVATIVE FINANCIAL INSTRUMENTS As a hedge of a certain portion of liabilities in foreign currencies, the Company entered into various exchange contracts with banks to buy US$ 40,500,000 at the average rates of Baht 43.0500 for US$ 1, for the period ranging from 86 days to 251 days. The spot rate as at March 31, 1998 was Baht 39.0807. 8. TRANSACTIONS BETWEEN RELATED COMPANIES Transactions between related companies 8.1 Investment in subsidiary, associated, and related companies Equity method financial statements March 31, 1998 Company+s Type of Relationship Issued and % of Cost Equity name business paid-up shareholding Subsidiary companies 1. Dusit Resort Cha-am Hotel and Co., Ltd. condominium Subsidiary 225,000,000 90.357991112 380,397,820 0 2. Royal Princess Hotel and Public Co., Ltd. management Subsidiary 600,000,000 79.649891372 780,046,661 582,018,906 3. Philippine Hoteliers, Inc. Hotel Subsidiary PESO 40,000,000 85.76 687,897,640 653,007,065 4. Dusit Thani Delaware, Inc. Holding Subsidiary US$ 800,000 100.00 21,726,000 37,686,744 5. Dusit Thani International Co., Ltd. Holding Subsidiary 4,000,000 99.993 3,999,720 6,273,462 6. Best Western (Thailand) Room reservation Co., Ltd. agent Subsidiary 25,000 99.30 24,825 31,447 Associated companies 1. DPMN Industries Co., Ltd. Laundry Associated 60,000,000 25.00 15,000,000 3,063,851 2. Worldclass Rent a Car Co., Ltd. Car rental Associated 100,000,000 20.00 20,000,000 0 3. Format Advertising Co., Ltd. Advertisement Associated 500,000 59.70 298,500 1,106,178 4. Landmark Hotel Co., Ltd. Hotel Associated 10,000,000 99.88 9,988,000 - Related companies 1. Acme Printing Co., Ltd. Printing house Mutual management 40,000,000 - - - 2. Crown Property Bureau Land leasing Major shareholder - - - - Baht 1,919,379,166 1,283,187,653 …/5 - 5 - Equity method financial statements March 31, 1997 Company+s Type of Relationship Issued and % of Cost Equity name business paid-up shareholding Subsidiary companies 1. Dusit Resort Cha-am Hotel and Co., Ltd. condominium Subsidiary 225,000,000 90.357991112 380,397,820 131,053,312 2. Royal Princess Hotel and Public Co., Ltd. management Subsidiary 600,000,000 79.649891372 780,046,661 819,915,557 3. Philippine Hoteliers, Inc. Hotel Subsidiary PESO 40,000,000 76.208388950 595,491,861 608,233,978 4. Dusit Thani Delaware, Inc. Holding Subsidiary US$ 800,000 100.00 21,726,000 19,523,209 5. Dusit Thani International Co., Ltd. Holding Subsidiary 4,000,000 99.993 3,999,720 3,817,056 6. Best Western (Thailand) Room reservation Co., Ltd. agent Subsidiary 25,000 99.30 24,825 90,576 Associated companies 1. Dusit Sindhorn Co., Ltd. Hotel Associated 2,200,000,000 49.999929411 1,103,780,390 933,207,378 2. DPMN Industries Co., Ltd. Laundry Associated 60,000,000 25.00 15,000,000 12,485,367 3. Worldclass Rent a Car Co., Ltd. Car rental Associated 100,000,000 20.00 20,000,000 17,625,513 4. Format Advertising Co., Ltd. Advertisement Associated 500,000 59.70 298,500 1,106,178 5. Landmark Hotel Co., Ltd. Hotel Associated 10,000,000 99.88 9,988,000 - Related companies 1. Acme Printing Co., Ltd. Printing house Mutual management 40,000,000 - - - 2. Crown Property Bureau Land leasing Major shareholder - - - - Baht 2,930,753,777 2,547,058,124 8.2 Loans to/from subsidiary, associated and related companies. CONSOLIDATED EQUITY METHOD March 31, 1998 March 31, 1997 March 31, 1998 March 31, 1997 Loans to subsidiaries Royal Princess Public Co., Ltd. - - - 129,000,000 Baht - - - 129,000,000 Loans from subsidiaries Dusit Thani Delaware, Inc. - - 5,489,555 4,504,583 Dusit Resort Cha-am Co., Ltd. - - - 489,571 Royal Princess Public Co., Ltd. - - 16,000,000 - Baht - - 21,489,555 4,994,154 The costs of borrowing are the same as in the normal course of business. …/6 - 6 - 8.3 Business transactions Equity method March 31, 1998 Company Management Other Selling and Interest Interest Other Loans from Accrued Other current service income income administrative income expenses current subsidiary expenses liabilities expenses assets Royal Princess Public Co., Ltd. - 421,816 26,293 - 827,671 13,397,851 16,000,000 1,592,597 26,522 Dusit Resort Cha-am Co., Ltd. 4,114,245 139,671 - - 327,945 1,770,667 - 1,094,630 - Philippine Hoteliers, Inc. 6,795,062 114,539 - - - 728,896 - - - Dusit Thani Delaware, Inc. - - - - 18,973 - 5,489,555 - - Acme Printing Co., Ltd. - - 595,348 - - - - - - Crown Property Bureau - - 723,024 - - - - - - 10,909,307 676,026 1,344,665 - 1,174,589 15,897,414 21,489,555 2,687,227 26,522 Equity method March 31, 1997 Company Management Other Selling and Interest Interest Other Loans from Accrued Other current service income income administrative income expenses current subsidiary expenses liabilities assets Royal Princess Public Co., Ltd. 10,684 375,101 - 7,464,699 - 8,492,676 - - - Dusit Resort Cha-am Co., Ltd. 3,488,831 222,897 - - - 2,259,631 489,571 - - Philippine Hoteliers, Inc. 3,313,449 475,789 - - - 7,898,787 - - - Dusit Thani Delaware, Inc. - - - - 5,255 - 4,504,583 - - Crown Property Bureau - - 379,635 - - - - - - 6,812,964 1,073,787 379,635 7,464,699 5,255 18,651,094 4,994,154 - - Prices and terms are the same as in the normal course of business. 9. COMMITMENTS AND CONTINGENCIES As at March 31, 1998 and 1997, subsidiary companies have various contracts for premises construction totalling Baht 630,503,143 and Baht 620,320,585, respectively. As at December 31, 1998 and 1997, the portion of uncompleted works which has to be paid by these subsidiary companies in subsequent periods amounts to Baht 38,180,741 and Baht 47,122,514, respectively. As at March 31, 1998 and 1997, the Company and subsidiaries have contingent liabilities for bank guarantees totalling Baht 19,647,235 and Baht 23,190,892, respectively. As at March 31, 1998 and 1997, the Company has contingent liabilities for bank guarantees totalling Baht 12,537,242 and Baht 16,646,400, respectively.