13. Related Persons and Connected Transactions

13.1 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  297,561
  Public Co., Ltd. of viscose    24.98% of Thai     & steam to     
                   rayon staple  Carbon’s common    Thai Rayon     
                   fibre         equity and have                   
                                 common directors                  
  ---------------- ------------- ------------------ -------------- -------------

The company has also provided corporate guarantee to one of the lending
banks for providing credit facilities to its subsidiary, Liaoning Birla
Carbon Co., Ltd, China for the maximum credit line of not exceeding
USD.5.10 million.

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 | 15,380   |
| Fibre Co.,     | facture | holds 60% of    |     goods   |          |
| Ltd.           | of      | Thai            |     to Thai | 6,129    |
|                | Acrylic | Sulphites’s     |     Acrylic |          |
|                | Fibre   | common equity   |     Fibre   |          |
|                |         | and has common  |             |          |
|                |         | directors. Thai | -   Sale of |          |
|                |         | Carbon holds    |     Raw     |          |
|                |         | 15.98% in Thai  |             |          |
|                |         | Acrylic’s       |    Material |          |
|                |         | common          |     to Thai |          |
|                |         |                 |     Acrylic |          |
|                |         |                 |     Fibre   |          |
+----------------+---------+-----------------+-------------+----------+
| Company Name   | Nature  | Nature of       | Transaction | Value of |
|                | of      | Relationship    | Between     | Tra      |
|                | B       |                 | Companies   | nsaction |
|                | usiness |                 |             | (’000    |
|                |         |                 |             | Baht)    |
+----------------+---------+-----------------+-------------+----------+
|                |         | equity and has  | -           | 13,781   |
|                |         | common          |    Purchase |          |
|                |         | directors       |     of      |          |
|                |         |                 |             |          |
|                |         |                 |   utilities |          |
|                |         |                 |     from    |          |
|                |         |                 |     Thai    |          |
|                |         |                 |     Acrylic |          |
|                |         |                 |     Fibre   |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Carbon    | Manu    | Thai Carbon     | Sale of raw | 1,284    |
| 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 | 1,251    |
| Chemicals Co., | facture | holds 49% of    |     goods   |          |
| Ltd.           | of      | Thai Organic’s  |             | 2,160    |
|                | Ep      | common equity   | - Sales of  |          |
|                | icholor | and have common | raw         |          |
|                | ohydrin | directors       | material    |          |
|                | and     |                 |             |          |
|                | caustis |                 |             |          |
|                | soda    |                 |             |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Rayon     | Manu    | Thai Rayon      | -   Sale of | 19       |
| Public Co.,Ltd | facture | holds 24.98% of |     goods   |          |
|                | of      | Thai Carbon’s   |             | 8,558    |
|                | viscose | common equity   | -           |          |
|                | rayon   | and have common |    Purchase | 470      |
|                | staple  | directors       |     of raw  |          |
|                | fibre   |                 |             |          |
|                |         |                 |   materials |          |
|                |         |                 |             |          |
|                |         |                 | -   Payment |          |
|                |         |                 |     of      |          |
|                |         |                 |             |          |
|                |         |                 |    interest |          |
+----------------+---------+-----------------+-------------+----------+
| Thai           | Manuf   | Thai Rayon      | -   Payment | 44       |
| Polyphosphates | acturer | holds 49% of    |     of      |          |
| and Chemicals  | of      | Thai            |             |          |
| Company        | Sodium  | Polyphosphates  |    interest |          |
| Limited        | Tri-    | common equity   |             |          |
|                | Polypho | and Thai Rayon  |             |          |
|                | sphates | hold 24.98% of  |             |          |
|                |         | Thai Carbon’s   |             |          |
|                |         | common equity   |             |          |
|                |         | and have common |             |          |
|                |         | directors       |             |          |
+----------------+---------+-----------------+-------------+----------+

13.2 Rational and Necessity

During the year, the company, its subsidiary companies and related
companies (related by way of holding interest, common shareholders
and/or common directors) has trading transactions among the others. Such
transactions have been concluded on the terms and basis as determined by
the company. The subsidiary companies and the related companies and in
the ordinary course of business. The transactions have been charged at
the prices comparable to the market prices.

Associated, Related and Subsidiary Companies

(1) Thai Rayon Public Company Limited

Type of Business

Manufacture of Viscose Rayon Staple Fibre

Board of Directors (As on 31 December 2003)

+----------------------------------+-----------------------------------+
| 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. Ramakant Rathi               | Director                          |
+----------------------------------+-----------------------------------+
| Mr. Vinai Sachdev                | Director                          |
+----------------------------------+-----------------------------------+

Major Shareholder (As on 31December 2003)

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

  1. Asseau Company Limited                            16.66

  2. Wholton Company Limited                           10.99

  3. Hart Global Limited                               10.71

  4. Thailand Securities Depository Co.,Ltd. for       9.05
  depositor                                            

  5. Grasim Industries Limited                         6.94

  6. Thai Industrial Management & Trading Co.,Ltd.     4.83

  7. Mr. Prabcharan Singh Thakral                      3.42

  8. Ms. Vanida Thakral                                2.74

  9. Mr. Jaimal Thakral                                2.61

  10. Mrs. Rachani Kajiji                              2.61
  ---------------------------------------------------- ------------------

(2) Thai Sulphite & Chemical Company Limited

Type of Business : Manufacture of Sodium Sulphites & Metabisulphites

Board of Directors (As on 31 December 2003)

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

  6. Mr. V.T. Moorthy                 Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2003)

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

  1. Thai Carbon Black Public Company Limited          60.00%

  2. Malton Limited                                    10.00%

  3. Mirapa Ltd.                                       10.00%

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

(3) Liaoning Birla Carbon Company Limited

Type of Business : Manufacture of Carbon Black

Board of Directors (As on 31 December 2003)

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

  1. Mr. M.C.Bagrodia                 Chairman

  2. Mr. S. Srinivasan                Director

  3. Mr. T.K. Chatterjee              Director

  4. Mr. Huanjiu Wu                   Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2003)

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

  1. Thai Carbon Black Public Company Limited          71.00%

  2. Dashiqiao Ronghua Chemical Co.,Ltd                29.00%
  ---------------------------------------------------- ------------------

(4) Thai Organic Chemicals Company Limited

Type of Business : Manufacture of Epicholorohydrin and Caustic Soda 

Board of Directors (As on 31 December 2003)

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

  1. Mr. Kumar Manglam Birla          Chairman

  2. Mrs. Rajashree Birla             Director

  3. Mr. Manfred Wiemken              Director

  4. Mr. V.T. Moorthy                 Director

  6. Mr. Pratheep Sachatrakul         Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2003)

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

  1. Thai Rayon Public Company Limited                    49.00%

  2. Thai Carbon Black Public Company Limited             49.00%

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

(5) P.T. Indo Liberty textile

Type of Business : Manufacture of Synthetic Yarn 

Board of Directors (As on 31 December 2003)

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

  1. Mr. Anandi Lai Pokharna          Chairman

  2. Mr. Sanjay Krishna Srivastava    Director

  3. Mr. Kapil Agarwal                Director

  4.Mr. Satish Chand                  Director

  5. Mr. S.L. Sipani                  Director

  6.Mr. Predeep Kumar Madhwar         Director
  ----------------------------------- -----------------------------------

Major Shareholder (As on 31December 2003)

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

  1. Thai Rayon Public Company Limited                    40.00%

  2. Thai Carbon Black Public Company Limited             40.00%

  4. Cheddington Trading Company Inc.                     16.00%

  3. Malton Limited                                       4.00%
  ------------------------------------------------------- ---------------