History of The Company

Thai Carbon Black Public Co.,Ltd. was set up in 1978 as a Joint Venture
between the Adiya Birla Group of India and local Thai Investors to
manufacture Carbon Black, an important raw material for automobile tyre
and rubber industry. The company was established with initial registered
capital of Baht 500,000 and increased during the past years for the
expansion of capacity to the present level of Baht 300,000,000. Today,
the company produces up to 205,000-210,000 metric tons of world-class
furnace grade carbon black in its sophisticated manufacturing plant in
Angthong.

During the 4^(th) quarter of 2005 the company has commissioned its
expansion project with approximate production capacity of 45,000 to
50,000 Mt/year. The expansion project has been commissioned in scheduled
time frame and within budget.

The company meets critical requirements of major tyre companies in
Thailand for Carbon Black. In addition, the company also exported 49% of
sale revenue to several countries to world’s major tire manufacturers in
2006.

Our company does not have any holding company.

During the year the subsidiary company in china namely Liaoning Birla
Carbon Co., Ltd. (LBCC), in which the company holds 77% equity had
increased its capital by RMB 78.56 million for better operational
flexibility and efficiency, loan repayments, working capital
requirements and to meet operational expenses etc. The company will
subscribe the 100% of the increased capital of RMB 78.56 million and
after this the company’s shareholding will be increased to 88.54%. As on
31^(st) December 2006 the company holds 84.80%

Presently the subsidiary company is focusing on operational efficiency,
approval of its products from MNC’s, cost outs and optimization of
product mix.

During 2006, the subsidiary company had incurred loss of RMB 34.90
million (Approx Baht 166 million). Going forward, the subsidiary company
is expected to improve operational efficiency, considerably increase
market share and sales on expanded capacity and expected to generate
profit.

As part of its growth plan to grow in the Carbon Black business, the
company has decided to explore possibilities of setting up the Carbon
Black plant in Mexico. A subsidiary company has been formed in Mexico
namely “Birla Carbon Mexico S.A”. to carry out various initial
activities like land purchase and acquisition, discussions /
negotiations with various government agencies and environmental
clearance etc. The initial capital of the company was Mexican Peso
50,000 MX CY which has been subsequently increased to 2,050,000 MX CY

During the year the company has also decided to explore the possibility
of setting up a Carbon Black plant in Oman and to carry out various
initial activities like land purchase and acquisition, discussions /
negotiations with various government agencies and environmental
clearance etc.

The company is also working for setting up a JV company in Oman along
with local partner for setting up Carbon Black Plant.

Business Operation of the Company, Subsidiary and Associated Companies

+------------+------------+---+-------+-----+-----+-----+---------------+
| Company    | Activity   |   | Pa    | %   | C   | Va  | Other Major   |
| Name       |            |   | id-up | Sh  | ost | lue | Shareholders  |
|            |            |   | Ca    | are | of  | of  |               |
|            |            |   | pital | Ho  | I   | I   | (>10%)        |
|            |            |   |       | ldi | nve | nve |               |
|            |            |   |       | ngs | stm | stm |               |
|            |            |   |       |     | ent | ent |               |
|            |            |   |       |     | (   | (   |               |
|            |            |   |       |     | MB) | MB) |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| Subsidiary |            |   |       |     |     |     |               |
| Companies  |            |   |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| Liaoning   | M          | 1 |       | 85  |     | 257 | 1. Dashiqiao  |
| Birla      | anufacture | 1 |       | .00 | 483 | .87 | Ronghua       |
| Carbon     | of Carbon  | 8 |       |     | .92 |     | Chemicals     |
| Co.,Ltd    | Black      | m |       |     |     |     | Co.,Ltd (15%) |
|            |            | i |       |     |     |     |               |
| (          |            | l |       |     |     |     |               |
| Registered |            | l |       |     |     |     |               |
| in China)  |            | i |       |     |     |     |               |
|            |            | o |       |     |     |     |               |
|            |            | n |       |     |     |     |               |
|            |            | R |       |     |     |     |               |
|            |            | M |       |     |     |     |               |
|            |            | B |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| Birla      | M          | 0 |       | 98  |   1 |   0 |               |
| Carbon     | anufacture | . |       | .00 | .46 | .13 |               |
| Mexico,    | of carbon  | 4 |       |     |     |     |               |
| S.A.DE     | black      | m |       |     |     |     |               |
|            |            | i |       |     |     |     |               |
| C.V.       |            | l |       |     |     |     |               |
|            |            | l |       |     |     |     |               |
|            |            | i |       |     |     |     |               |
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|            |            | M |       |     |     |     |               |
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|            |            | x |       |     |     |     |               |
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|            |            | s |       |     |     |     |               |
|            |            | o |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| Associated |            |   |       |     |     |     |               |
| Companies  |            |   |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| Aditya     | M          | B |       | 30  | 509 | 1,  | 1.Thai Rayon  |
| Birla      | anufacture | a |       | .00 | .82 | 002 | Pcl (29.98%)  |
| Chemicals  | of Caustic | h |       |     |     | .98 |               |
| (Thailand) | Soda &     | t |       |     |     |     |               |
| Co.,Ltd    | Epich      | 1 |       |     |     |     |               |
|            | lorohydrin | , |       |     |     |     |               |
|            |            | 7 |       |     |     |     |               |
|            |            | 0 |       |     |     |     |               |
|            |            | 0 |       |     |     |     |               |
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|            |            | n |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| P.T. Indo  | M          | 4 |       | 40  | 196 | 341 | 1.Thai Rayon  |
| Liberty    | anufacture | 2 |       | .00 | .95 | .56 | Plc. (40%)    |
| Textiles   | of         | , |       |     |     |     |               |
| (          | Synthetic  | 5 |       |     |     |     | 2.Cheddington |
| Registered | Yarn       | 4 |       |     |     |     | Trading       |
| in         |            | 9 |       |     |     |     | Company Inc.  |
| Indonesia) |            | , |       |     |     |     | (16%)         |
|            |            | 0 |       |     |     |     |               |
|            |            | 0 |       |     |     |     |               |
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|            |            | . |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+
| Alexandria | Man        | 1 |       | 27  | 265 | 207 | 1.Thai Rayon  |
| Fiber      | ufacturing | 5 |       | .50 | .96 | .20 | Plc. (27.50%) |
| Company    | of Acrylic | 0 |       |     |     |     |               |
| S.A.E.,    | Fibre      | M |       |     |     |     | 2.SIDPEC      |
|            |            | i |       |     |     |     | (20%)         |
| (          |            | l |       |     |     |     | 3.APICORP     |
| Registered |            | l |       |     |     |     | (10%)         |
| in Egypt)  |            | i |       |     |     |     |               |
|            |            | o |       |     |     |     | 3.Saudi       |
|            |            | n |       |     |     |     | Egyptian      |
|            |            | E |       |     |     |     | Industrial    |
|            |            | g |       |     |     |     | Investment    |
|            |            | y |       |     |     |     | Company       |
|            |            | p |       |     |     |     | S.A.E. (10%)  |
|            |            | t |       |     |     |     |               |
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|            |            | d |       |     |     |     |               |
+------------+------------+---+-------+-----+-----+-----+---------------+

INVESTMENT STRUCTURE OF THAI CARBON BLACK PUBLIC COMPANY LIMITED (as on 31 December 2006)

The sales revenue structure of the company, subsidiary and associated
companies for the past three years is as follow :

Million Baht

+-----------------------------+-------------+-------------+------------+
| Company                     | 2006        | 2005        | 2004       |
|                             |             |             |            |
|                             | Amount      | Amount      | Amount     |
+-----------------------------+-------------+-------------+------------+
| Thai Carbon Black Plc.      | 6,594       | 4,617       | 3,500      |
+-----------------------------+-------------+-------------+------------+
| Liaoning Birla Carbon       | *94.79      | *64.42      | **47.01    |
| Co.,Ltd.                    |             |             |            |
+-----------------------------+-------------+-------------+------------+
| P.T. Indo Liberty Textiles  | **364,375   | **327,429   | *241,511   |
+-----------------------------+-------------+-------------+------------+
| Aditya Birla Chemicals      | 7,524.25    | 5,136       | 1,425      |
| (Thailand) Co.,Ltd          |             |             |            |
+-----------------------------+-------------+-------------+------------+
| Alexandria Fiber S.A.E.     | ***149      | Nil         | Nil        |
+-----------------------------+-------------+-------------+------------+
| Birla Carbon Mexico, S.A.   | Nil         | Nil         | Nil        |
| DE C.V                      |             |             |            |
+-----------------------------+-------------+-------------+------------+

* Million Chinese RMB (The company started operation from 1^(st) July
2003)

** Million Indonesia Rupiah

*** Million LE