Related Company Transactions

1. Connected transactions with subsidiaries and associates.

Data for the Siam Cement Group subsidiaries and associates can be found
on pages 21-25. Transactions between the Group companies are based on
traditional business practice to optimize benefits to each company,
based on a policy of market-mediated trading with prices being
comparable to prevailing market rates or rates in similar industries
with appropriate negotiation. Connected transactions cover the following
kinds of transactions:

1.1 Trading in products and services among entities.

1.2 Borrowing among entities via promissory notes.

1.3 Trading real estate among entities.

  1.4 Intellectual property licensing fee agreements within the Group.

1.5 Management fee agreements.

1.6 Loan guarantees.

These transactions are reported in the notes to the consolidated
financial statements 1, 4, 21, and 25 and in the notes to the financial
statements of the Siam Cement Public Company 1, 4, 20, 22.

2. Report of connected transactions among persons who have a significant
influence, key executives, or members of their families.

- None.

3. Report of connected transactions involving persons who have a
significant influence, key executives, or members of their families.

- None.

Permission to connected transactions

Each company has defined a clear authority, which is approved by the
Board of Directors of the Company. This authority is reviewed and
renewed on a regular basis, to monitor inter-company activities using an
internal system adequate to prevent transgressions or abuses. In
addition, the Group has established a performance assessment system at
the company and business unit levels, as well as at the Group level,
that keeps all levels cognizant of what is happening and serves as a
strict oversight tool for monitoring transactions to ensure they
accurately reflect true markets conditions.

Future connected transactions

Connected transactions in the future will continue to be based on
traditional business practices and will follow the policy of the market
controlling prices in negotiated transactions, as in the past. No
special benefits will accrue either to companies or individuals from
connected transactions.

Report of The connected transactions in 2004 by types

1. Transaction regarding of Financial assistance

  1.1 Nine transactions between The Company and subsidiaries in the
  amount of Baht 3,349 million.

  1.2 Five transactions between subsidiaries and other subsidiaries in
  the amount of Baht556 million.

  1.3 Transaction between subsidiary and associated company in the
  amount of Baht 138 million.

  1.4 Transaction between the Company and other company in the amount of
  Baht 240 million.

2. Transaction relating to assets

  2.1 Four transactions between subsidiaries and other subsidiaries for
  a value of Baht 1,589 million.

  2.2 Transaction between subsidiary and associated company for a value
  of Baht 510 million.

3. Normal business or supporting normal business transaction

  3.1 Transaction between subsidiary and associated company valued at
  Baht 120 million.

  3.2 Transaction between subsidiary and other company valued at Baht
  996 million.

All of the above 23 transactions occurring in 2004, although connected,
were exempted from disclosure, as required of listed company for the
following reasons:

  1. It is a transaction between the Company/subsidiary with subsidiary
  that having other connected persons that holding no more than 10
  percent of total shares of the subsidiary, as in the case of 1.1, 1.2,
  and 2.1.

  2. The value of the transaction does not exceed 0.03 percent of value
  of the Company net tangible assets, as in the case of 1.1, 1.2, and
  2.1.

  3. It is a transaction between subsidiaries and other juristic persons
  when the Company/

  subsidiaries have sent connected personnel to oversee the other
  juristic person in the status of a shareholder in the case of 1.3,
  1.4, 2.2, 3.1, and 3.2.