NONTHAVEJ HOSPITAL PUBLIC COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS  
DECEMBER 31, 2001 AND 2000  
 
1. GENERAL INFORMATION

1.1
Company status
A juristic person established under Thai law and listed 
in the Stock Exchange of Thailand
1.2 
Company location
30/8 , Ngamvongwan Road, Bangkhen District, 


Amphur Muang, Nonthaburi, Thailand.
1.3 
Type of business
Hospital
1.4
Number of employees 


        as at December 31, 2001
Full-time	580   persons


Part-time	310   persons

        as at December 31, 2000
Full-time	571    persons


Part-time	247    persons
1.5
Employee expenditures 


         for 2001 and 2000
Baht 120 million and Baht 115 million, respectively.

2. 	SIGNIFICANT ACCOUNTING POLICIES

2.1	Revenues and expenses recognition  
	Revenues from medical treatment, rental and service revenues, and  expenses are 
recognized  on  an  accrual basis.  

2.2	Investments in equity securities
Trading securities are investments in listed securities which are stated at fair 
value.  The Company recognizes revaluation of securities as unrealized gain (loss) on 
trading securities in the statements of income.


Available-for-sale securities are investments in listed securities which are stated at 
fair value.  The objective of holding these securities is for long-term investments.   
The Company recognizes revaluation of available-for-sale securities as separate item 
in shareholders equity under the caption Unrealized gain (loss) on investment 
revaluation.
The Company calculated cost of the disposed securities during the year by weighted 
average method.

2.3   Allowance for doubtful accounts
	The Company provided allowance for doubtful accounts which are expected to be   
uncollectible.

2.4	Inventories
	Inventories are stated at cost or net realizable value,  whichever is the lower.  Cost 
is determined by the moving average method.

2.5	Property, plant and equipments
	Property, plant and equipments are stated at cost. Depreciation of plant and 
equipments is calculated by the straight-line method based on the estimated useful 
lives of the following assets:

	Building and structure	20 - 30	years	
	Medical tools and equipments	10	years
	Others	5 - 10	years

2.6	Deferred expenses
	Deferred expenses are amortized by the straight-line method within 3 years.





2.7	Foreign currency transactions
	  Foreign currency transactions are recorded in Baht at the rate ruling on the date 
of transactions. Outstanding foreign currency assets and liabilities at the end of 
accounting period are converted to Baht at the rate of exchange of commercial bank in 
effect at that date. Gain or losses on exchange rate are credited or charged to 
operations during the year.


2.8	Basic earnings per share 
	Basic earnings per  share  is  calculated  by  dividing  the  net  income by the 
number of issued and paid-up share capital at the end of the year.  

2.9    Cash and cash equivalent
For the purpose of preparation of cash flows statements, cash and cash equivalent 
are cash on hand and  fixed deposit  due not more than 3 months and with no obligation.

3.	FIXED DEPOSITS AT BANK

          Fixed deposits at bank are pledged with the bank as collateral for the letters of 
guarantee issued by bank.

4.	INVESTMENTS IN EQUITY SECURITIES   consist of :-

	4.1	Short term investments - Trading securities
(AMOUNT IN BAHT)
PARTICULARS
2001
 2000
Acquisition Cost
2,642,961
2,642,961
Fair value at beginning 
   934,447
   994,969
Unrealized gain (loss) on trading securities
  515,718
     (60,522)
Fair value at year end
1,450,165
    934,447

  As at January 1, 2000, the Company has transferred investments in available-for-
sale securities to trading securities and adjusted the unrealized gain on investment 
revaluation in shareholders equity of Baht 250,963 to unrealized gain on trading 
securities in the statements of income.


     4.2  Long-term investments-Available-for-sale
(AMOUNT IN BAHT)
PARTICULARS
2001
2000
Acquisition Cost
   402,443
   402,443
Book value
   402,443
   402,443
Unrealized loss on investment revaluation 


        - Shareholders Equity
(348,268)
(351,518)
Fair value at year end
54,175
   50,925


5. TRADE ACCOUNTS AND NOTES RECEIVABLE  consist of :-

(AMOUNT IN BAHT)
PARTICULARS
2001
2000
Trade accounts receivable
32,652,732
27,339,210
Notes receivable
269,431
269,431
     Total trade accounts and notes receivable   
32,922,163
27,608,641
Less Allowance for doubtful accounts
(6,869,926)
(5,578,904)
Trade Accounts and Notes Receivable-net
26,052,237
22,029,737

6.   INVENTORIES  consist of :-
	  (AMOUNT IN BAHT)
PARTICULARS
2001
2000
Medicines and medical supplies
15,177,893
11,550,123
House supplies
4,157,831
1,632,771
Total
19,335,724
13,182,894







7.	PROPERTY, PLANT AND EQUIPMENTS  consist of :-
	(AMOUNT IN  BAHT)
PARTICULARS
2000
INCREASE
SOLD
TRANSFER
/ADJUST
2001
Cost





Land
20,833,489
-
-
-
20,833,489
Buildings and structure
504,510,661
233,627
-
2,953,712
507,698,000
Medical tools and equipments
170,514,509
4,791,301
(823,670)
-
174,482,140
Vehicles
7,056,421
512,500
-
-
7,568,921
Furniture and fixtures
41,264,713
505,389
-
52,259
41,822,361
Office appliances
15,191,269
949,246
(61,960)
-
16,078,555
Computer system
23,220,304
16,573,733
-
-
39,794,037
Other equipments and tools
16,400,011
408,612
-
-
16,808,623
Assets under construction
267,142
2,738,829
-
(3,005,971)
-
TOTAL
799,258,519
26,713,237
(885,630)
-
825,086,126
Accumulated depreciation





Buildings and structure
121,323,237
20,936,658
-
-
142,259,895
Medical tools and equipments
109,139,333
10,398,782
(823,666)
-
118,714,449
Vehicles
5,774,133
330,155
-
-
6,104,288
Furniture and fixtures
21,140,103
4,164,739
-
-
25,304,842
Office appliances
9,562,883
985,192
(61,958)
(10,358)
10,475,759
Computer system
19,056,334
3,095,368
-
-
22,151,702
Other equipments and tools
14,970,090
474,146
-
-
15,444,236
TOTAL
300,966,113
40,385,040
(885,624)
(10,358)
340,455,171
Property, Plant and Equipments-net    
498,292,406



484,630,955
Depreciation for the year
40,449,139



40,385,040

Part of land with structures is mortgaged as security for bank overdrafts and long-term 
loans from certain commercial bank.  In 2001, the Company does not have any loan from 
commercial bank.

8.	LONG-TERM LOANS   consist of :-
(AMOUNT IN BAHT)
PARTICULARS
2000
Long-term loans
25,000,000
Less  Current portion of long-term loans
(25,000,000)
Long-term loans-net
-
	

	The Current portion of long-term loans was shown under current liabilities.
	The Companys land with structure is mortgaged with certain financial institution as 
collateral for long-term loans.

9. LEGAL RESERVE

		In compliance with The Public Company Act, B.E. 2535 (1992), the Company has to 
set aside a portion of annual net income for legal reserve not less than 5% of annual net 
income less deficits brought forward (if any) until this reserve is not less than 10% of 
authorized capital.  Such reserve is not allowed to pay for dividend.  Currently, the 
Company has completely set up the legal reserve. 

10. DIVIDENDS PAYMENT AND DIRECTORS REMUNERATION
		
		On April 26, 2001, the Ordinary General Shareholders Meeting for 2001 was held and 
approved to pay dividends at Baht 0.25 per share to the shareholders of 16 million shares, 
totalling Baht 4 million and directors remuneration amounting to Baht 0.45 million  by 
fixing the payment date for dividends on May 24, 2001.

		On April 27, 2000, the Ordinary General Shareholders Meeting for 2000 was held and 
approved to pay dividends at Baht 1.50 per share to the shareholders of 16 million shares, 
totalling Baht 24 million and directors remuneration amounting to Baht 0.45 million by 
fixing the payment date for dividends on May 26, 2000. On December 15, 2000, the 
Extraordinary Shareholders Meeting was held and approved to pay dividends at Baht 2 per 
share to the shareholders of 16 million shares, totalling Baht 32 million by fixing the 
payment date for dividends on January 12, 2001.

11. FINANCIAL INFORMATION BY SEGMENT

	The  Company  is engaged in the business  of  medical  treatment  in one geographical 
area, Thailand.  Therefore, the financial information by segment is not shown in these 
financial statements.




12. COMMITMENT 

	The Company has commitment from the issuance of bank guarantee as follows :

(AMOUNT IN BAHT)
PARTICULAR
2001
2000
  Letters of guarantee issued by


  commercial bank
2,069,900
1,692,400

13. PROMOTIONAL PRIVILEGES
		By virtue of the Investment Promotion Act, B.E. 2520 (1977), the Company was 
granted promotional privileges as follows :
1.  Promotion certificate No.
1206/2536  on November 19, 1993
2.  Amended certificate of promotion No.
4722/2540
3.  The promotional privileges of 
Hospital for new building which

was opened in 1996.
4.  Date of generating income
January 19, 1996
5.  Important privileges which are granted :

5.1 Allowance for reduction at 50% of import
Expired on May 9, 1998.
           duty especially on machinery non-listed in

           the import duty adjustment according to the

           Announcement of the Ministry of Finance,

           Re: SK13/2533, except for the machinery

           which its import duty is less than 10% will

           not be allowed.

    5.2  Exemption from corporate income tax on 
5 years, commencing from the
           net income from promotional operations.
revenue date of operation.

(Due date January 18, 2001)
    5.3  Exemption from income tax on dividends 
5 years, commencing from the
           from promoted business through the 
revenue date of operation.
           exemption period.
(Due date January 18, 2001)

14.PROVIDENT FUND

The Company has set up Provident Fund which the Company and the employees 
contribute equally and assigned certain finance company to be the Fund Manager.

15. CONTINGENT LIABILITIES

		During 1998, a lawsuit has been filed against the Company to claim for the 
compensation for damages by one of its clients for the total amount of Baht 35 million. 
However, the Companys management  and  lawyer  have anticipated that there will be no 
compensation to be made, due to they believe that the case is groundless and currently the 
outcome is not known. Since there is still uncertainty from the final result, which have not 
yet been reached, the Company has not recorded any reserve for such damages in the 
account.

16.QUALITY OF ASSETS

		As at December 31, 2001 and 2000, the trade accounts and notes receivable which have  
settlement problem or become default are classified by outstanding balances of aging as 
follows :

(AMOUNT IN BAHT)
AGING
2001
2000
        Over 3  6 months
1,331,198
1,550,678
        Over 6  12 months
1,140,233
1,735,942
        Over 12 months
6,008,214
5,227,215
        Cheques returned
269,431
269,431
                       Total
8,749,076
8,783,266
       Allowance for doubtful debts
6,869,926
5,578,904





17. DISCLOSURE OF FINANCIAL INSTRUMENTS

		The Company has information relating to financial instruments both in and off 
balance sheets, as follows :

17.1  Accounting policies 
- Accounting policies are disclosed in Note 2 to the financial statements.

17.2 Risk from breach of contracts 
- Due to the counter party does not follow the requirement in the contract 
which caused damage to the Company.
- The risk with respect to the concentration of credit arose from trade accounts 
receivable are limited due to the large number of customers and their 
dispersion.
- For the financial assets shown in the balance sheets, the book value of such 
assets is net from various provisions to be estimated fair value.  Such 
provisions are assumed to be the highest value of risk incurred from breach 
of contracts.

17.3 Risk relating to interest rate of financial assets and liabilities
			Risk from the fluctuation in interest rate may have negative effect to the 
Company for the current and the future periods.  The Company expects that they can 
manage the contingent risk, due to the Company has set a plan and following up the 
situation closely.

17.4 Fair value of financial instruments
			The following methods and assumptions are used to estimate the fair value 
of financial instruments:
- Financial assets shown at book value which equal to estimated fair value.
- Financial liabilities shown at book value which equal to estimated fair value.




18. RECLASSIFICATION OF ACCOUNTS
		
	Certain accounts in the 2000 financial statements have been reclassified to conform 
with the presentation of 2001 financial statements.
1

2
NOTES TO THE FINANCIAL STATEMENTS
