13.1 Financial Statement

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Financial Ratio (Consolidated)

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Financial Ratio (Company only)

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13.2 Management Discussions & Analysis (Company only)

During the year 2011, the production decreased by 0.2 % in view of the
lower demand due to Tsunami in Japan followed by devastating flood
crisis in Thailand. Our Production during 2011 was at a level of 241,850
Mt compared to 242,256 Mt last year.

Sales Revenue

The sales revenue increased by 13% from Baht 9,004 million to Baht
10,156 million. The sales volume recorded lower sales of 238,755 MT from
248,578 MT reflecting a decline of 4% compared to the previous year
2010.

The ratio of export to local sales for the year 2011 has changed from
44: 56 to 49: 51 It is Company’s strategy to strive the optimum product
and customer mix to enhance the contribution margin and sales volume.

Other Income

Other income in 2011 of Baht 245 million is higher against Baht 114
million last year.

The interest income of Baht 123 million is higher by 106 Mn against Baht
17 million last year mainly due to the interest income accrued on the
loan given to Indigold Carbon–Mauritius.

Dividend income of Baht 64 million is same as last year.

There is a gain on exchange of Baht 48 million is higher against Baht 21
million last year mainly due to better forex management.

Cost and Expenses

The cost of sales increased by 22% from Baht 7,340 million to Baht 8,974
million due to increase in raw material prices.

Profits

During the year 2011, the company recorded the net profit of 870 Mn Baht
compared to Baht 1,029 million in 2010 due to the lower volume sales
compared to 2010 and increased raw material prices.

Financial Position (Company only)

Assets

The total assets as at 31^(st) Dec 2011 amounted to Baht 15,853 million
compared to Baht 9,614 million for the previous year, an increase by
65%. Details of major assets are as follow

-   Cash

  The cash and cash equivalents and funds placed with financial
  institutions were lower at Baht 1,075 million compared to Baht 1,657
  million for 2010 mainly due to lower cash profit.

-   Inventory

  At the year end the inventory was higher due to liability taken for
  Inventory in transit for Raw Material at Baht 2,932 million compared
  to Baht 2,009 million for the previous year. The shipments were
  received in 2^(nd) week of Jan’12 and 3^(rd) week of Feb’12
  respectively.

-   Property, plant and equipment

  Property, Plant and Equipment decreased by 9.6% to Baht 2,171 million
  against Baht 2,402 million last year.

-   Long term Investments

  Long term investments increased by 6,850 million from 537 million to
  7,384 million last year mainly due to Long term loan given to Indigold
  Carbon-Mauritius for acquiring Columbian Chemicals.

Liabilities and Shareholders Equity

The total liabilities also increased by 5,673 million baht from 1,638
million Baht to 7,311 million Baht mainly due to long-term loan taken
from various banks for Columbian Chemical acquisitions.

Earning per share

The earning per share was Baht 2.90 in 2011 compared to Baht 3.43 in
2010 due to lower profit for 2011.

Book value per share

The book value per share decreased to Baht 24.50 against Baht 35.50 in
2010 due to lower profit & lower demand from customers due to Tsunami in
Japan followed by devastating flood in Thailand.

Analysis of Financial Ratios (Company only)

Liquidity

The company’s current ratio is at 1.63 against 3.48 in year 2010 mainly
due to liability taken for the Raw material in Transit to be arrived in
the 2^(nd) week of Jan’12 & 3^(rd) week of Feb’12.

Equity

The company has historically maintained very low debt to equity ratio.
At the year end company had long term borrowings from various banks so
the debt to equity ratio is 0.86:1.

Profitability

The gross profit margin of the company is 11.65% as compared to 18.48%
in 2010 due to the higher Raw Material prices. The net profit margin is
8.37% compared to 11.28% in 2010.

The return on average shareholders equity based on total profit after
tax is 10.54% compared to 13.62% last year due to lower net profit.

Efficiency

The return on fixed assets has increased by to 52.93% from 48.41% and
Return on total assets is 6.83%. The inventory turnover ratio is at 3.63
against 4.75 in 2010.

13.3 Remuneration to Auditors

1.  Audit fee

  Company, its subsidiary and associated companies have paid audit fee
  for year 2011 as per details given below

+---------------------+----------------------------+------------------+
| Company name        | Audit firm                 | Audit fee        |
+---------------------+----------------------------+------------------+
| Thai Carbon Black   | Ernst & Young Office       | Baht 950,000-    |
| Pcl                 | Limited, Bangkok, Thailand |                  |
+---------------------+----------------------------+------------------+
| Liaoning Birla      | A Liaoning Zhongheng       | RMB 80,000-      |
| Carbon Co.,ltd      | Certified Public           |                  |
|                     | Accountants Co.,Ltd.,      | (Baht 394,952- ) |
|                     | China                      |                  |
+---------------------+----------------------------+------------------+
| Birla Carbon        | No auditor appointed (as   | No audit fees    |
| Mexico, S.A.DE      | company is in initial      |                  |
|                     | stage of activities)       |                  |
| C.V.                |                            |                  |
+---------------------+----------------------------+------------------+
| Aditya Birla        | Ernst & Young Office       | Baht 1,900,000-  |
| Chemicals           | Limited                    |                  |
| (Thailand) Co.,Ltd  |                            |                  |
|                     | Bangkok, Thailand          |                  |
+---------------------+----------------------------+------------------+
| P.T. Indo Liberty   | Deloitte, Indonesia        | USD.25,000       |
| Textiles            |                            |                  |
|                     |                            | (Approx. Baht    |
|                     |                            | 787,540- )       |
+---------------------+----------------------------+------------------+
| Ameri Blend Inc,    | No auditor appointed (as   | No audit fees    |
| USA.                | company is in initial      |                  |
|                     | stage of activities)       |                  |
+---------------------+----------------------------+------------------+
| Indigold Carbon,    | Pricewaterhouse            | USD 1,000,000-   |
| Mauritius           |                            |                  |
|                     |                            | (Approx. Baht    |
|                     |                            | 31,501,600-)     |
+---------------------+----------------------------+------------------+

Other fee

+-------------------------------+--------------------------------------+
| Thai Carbon Black Pcl         | -BOI Audit fee of Baht 200,000-      |
|                               |                                      |
| Aditya Birla Chemicals        | -BOI Audit fee of Baht 360,000-      |
| (Thailand) Co.,Ltd            |                                      |
+-------------------------------+--------------------------------------+