Related Persons and Transactions

Related Persons and transactions during the past year is as follow :

By The Company – Thai Carbon Black Public Company Limited 

  ---------------- ------------- ------------------ -------------- -------------
  Company Name     Nature of     Nature of          Transaction    Value of
                   Business      Relationship       Between        Transaction
                                                    Companies      (’000 Baht)

  Thai Rayon       Manufacture   Thai Rayon holds   Sale of power  292,677
  Public Co., Ltd. of viscose    24.98% of Thai     & steam to     
                   rayon staple  Carbon’s common    Thai Rayon     
                   fibre         equity and has                    
                                 common directors                  
  ---------------- ------------- ------------------ -------------- -------------

By Subsidiary Company – Thai Sulphites and Chemicals Co., Ltd.

+----------------+---------+-----------------+-------------+----------+
| Company Name   | Nature  | Nature of       | Transaction | Value of |
|                | of      | Relationship    | Between     | Tra      |
|                | B       |                 | Companies   | nsaction |
|                | usiness |                 |             | (’000    |
|                |         |                 |             | Baht)    |
+----------------+---------+-----------------+-------------+----------+
| Thai Acrylic   | Manu    | Thai Carbon     | -   Sale of | 18,289   |
| Fibre Co.,     | facture | holds 60% of    |     goods   |          |
| Ltd.           | of      | Thai            |     to Thai | 7,049    |
|                | Acrylic | Sulphites’s     |     Acrylic |          |
|                | Fibre   | common equity   |     Fibre   | 12,879   |
|                |         | and has common  |             |          |
|                |         | directors. Thai | -   Sale of |          |
|                |         | Carbon holds    |     Raw     |          |
|                |         | 15.98% in Thai  |             |          |
|                |         | Acrylic’s       |    Material |          |
|                |         | common equity   |     to Thai |          |
|                |         | and has common  |     Acrylic |          |
|                |         | directors       |     Fibre   |          |
|                |         |                 |             |          |
|                |         |                 | -           |          |
|                |         |                 |    Purchase |          |
|                |         |                 |     of      |          |
|                |         |                 |             |          |
|                |         |                 |   utilities |          |
|                |         |                 |     from    |          |
|                |         |                 |     Thai    |          |
|                |         |                 |     Acrylic |          |
|                |         |                 |     Fibre   |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Carbon    | Manu    | Thai Carbon     | Sale of raw | 1,148    |
| Black Public   | facture | holds 60% of    | material to |          |
| Co., Ltd.      | of      | Thai Sulphites  | Thai Carbon |          |
|                | carbon  | common equity   | Black       |          |
|                | black   | and has common  |             |          |
|                |         | directors.      |             |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Organic   | Manu    | Thai Carbon     | -   Sale of | 1,089    |
| Chemicals Co., | facture | holds 49% of    |             |          |
| Ltd.           | of      | Thai Organic’s  |    products |          |
|                | Ep      | common equity   |             |          |
|                | icholor | and have common |             |          |
|                | ohydrin | directors       |             |          |
|                | and     |                 |             |          |
|                | caustis |                 |             |          |
|                | soda    |                 |             |          |
+----------------+---------+-----------------+-------------+----------+

Rational and Necessity

The company and its subsidiary company had the transaction with the
related persons purely based on its requirements and in the normal and
ordinary course of business and on normal commercial terms. In most of
cases, the requirement is governed by the supplier’s status of sole
manufacturer of that product in Thailand.

Independent Director Report

Since the transactions above are in the ordinary course of business and
under commercial terms and conditions of all of the companies concerned,
which are under Clause 8 of Notification of The Stock Exchange of
Thailand (Bor. Jor. 52-2-01) regarding Rules and Procedures and
Disclosure of Connected Transactions of Listed Companies, the company
does not need to have an independent director report. However, the
details of the transaction above have been disclosed in the Notes to
Financial Statement which were audited by independent auditor

Independent Director Report regarding the real practice due to liability
specified in the filing

The company does not have any liabilities to be done that specified in
the filing.

Related Companies

(1) Thai Rayon Public Company Limited

Type of Business

Manufacture of Viscose Rayon Staple Fibre

Board of Directors (As on 31 December 2000)

  ----------------------------------- -----------------------------------
  Name                                Position

  Mr. Prachitr Yossundara             Chairman

  Mr. K. M. Birla                     Director

  Mrs. Rajashree Birla                Director

  Mrs. Neerja Birla                   Director

  Mr. Amolat Thakral                  Director

  Mr. S.S. Mahansaria                 Director

  Mr. Rachani Kajiji                  Director

  Mr. I.S. Narang                     Director

  Mr. Ramakant Rathi                  Director

  Mr. Vinai Sachdev                   Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2000)

  ---------------------------------------------------- ------------------
  Name                                                 % Shareholding

  1. Asseau Co.,Ltd.                                   16.66

  2. Wholton Co.,Ltd.                                  10.99

  3. Hart Global Limited                               10.71

  4. Grasim Industries Limited                         6.94

  5. บริษัท ศูนย์รับฝากหลักทรัพย์ (ประเทศไทย) จำกัด เพื่อผู้ฝาก     5.23

  6. บริษัท ไทยอินดัสเตรียล แมนเนจเม้นท์ แอนด์ เทรดดิ้ง จำกัด     4.83

  7. นางรัชนี คาจิจิ                                       3.47

  8. นายปรับซะรันซิงห์ ทักราล                               2.84

  9. เด็กหญิงวนิดา ทักราล                                  2.74

  10.นายใจมั่น ทักราล                                     2.61
  ---------------------------------------------------- ------------------

(2) Thai Sulphite & Chemical Company Limited

Type of Business : Manufacture of Sodium Sulphites & Metabisulphites

Board of Directors (As on 31 December 2000)

  ----------------------------------- -----------------------------------
  Name                                Position

  1. Mr. Kumar Manglam Birla          Chairman

  2. Mrs. Rajashree Birla             Director

  3. Mr. Shyam Sunder Mahansaria      Director

  4. Mr. C.J. Lalkaka                 Director

  5. Mr. Pratheep Sachatrakul         Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2000)

  ---------------------------------------------------- ------------------
  Name                                                 % Shareholding

  1. Thai Carbon Black Public Company Limited          60.00%

  2. Bexim International S.A.                          10.00%

  3. Mirapa Ltd.                                       10.00%

  4. Others                                            20.00%
  ---------------------------------------------------- ------------------

(3) Thai Acrylic Fibre Company Limited

Type of Business : Manufacture of Acrylic Fibre

Board of Directors (As on 31 December 2000)

  ----------------------------------- -----------------------------------
  Name                                Position

  1. Mr. Kumar Manglam Birla          Chairman

  2. Mrs. Rajashree Birla             Director

  3. Mr. Arvind Kumar Newar           Director

  4. Mr. Shyam Sunder Mahansaria      Director

  5. Mr. C.J. Lalkaka                 Director

  6. Mr. Manfred Wiemken              Director

  7. Mr. Z.T. Kajiji                  Director

  8. Mr. I.S. Narang                  Director

  9. Mr. Narinder Pal Sachdev         Director

  10.Mr. Songkram Cheevaprawatdomrong Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2000)

  ------------------------------------------------------- ---------------
  Name                                                    % Shareholding

  1. Thai Rayon Public Company Limited                    29.99%

  2. Thai Carbon Black Public Company Limited             15.98%

  3. Mr. Songkram Cheevaprawatdumrong                     12.50%

  4. Others                                               41.53%
  ------------------------------------------------------- ---------------

(4) Thai Organic Chemicals Company Limited

Type of Business : Manufacture of Epicholorohydrin and Caustic Soda 

Board of Directors (As on 31 December 2000)

  ----------------------------------- -----------------------------------
  Name                                Position

  1. Mr. Kumar Manglam Birla          Chairman

  2. Mrs. Rajashree Birla             Director

  3. Mrs. Neerja Birla                Director

  4. Mr. Shyam Sunder Mahansaria      Director

  5. Mr. Pratheep Sachatrakul         Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2000)

  ------------------------------------------------------- ---------------
  Name                                                    % Shareholding

  1. Thai Rayon Public Company Limited                    49.00%

  2. Thai Carbon Black Public Company Limited             49.00%

  3. Others                                               2.00%
  ------------------------------------------------------- ---------------