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  314,537
  Public Co., Ltd. of viscose    24.98% of Thai     & steam to     
                   rayon staple  Carbon’s common    Thai Rayon     
                   fibre         equity and have                   
                                 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 | 15,905   |
| Fibre Co.,     | facture | holds 60% of    |     goods   |          |
| Ltd.           | of      | Thai            |     to Thai | 5,895    |
|                | 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  | -           | 15,290   |
|                |         | common          |    Purchase |          |
|                |         | directors       |     of      | -        |
|                |         |                 |             |          |
|                |         |                 |   utilities |          |
|                |         |                 |     from    |          |
|                |         |                 |     Thai    |          |
|                |         |                 |     Acrylic |          |
|                |         |                 |     Fibre   |          |
|                |         |                 |             |          |
|                |         |                 | -   Payment |          |
|                |         |                 |     of      |          |
|                |         |                 |             |          |
|                |         |                 |    interest |          |
|                |         |                 |     to Thai |          |
|                |         |                 |     Acrylic |          |
|                |         |                 |     Fiber   |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Carbon    | Manu    | Thai Carbon     | Sale of raw | 1,336    |
| 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 | 1,065    |
| Chemicals Co., | facture | holds 49% of    |     goods   |          |
| Ltd.           | of      | Thai Organic’s  |             |          |
|                | Ep      | common equity   |             |          |
|                | icholor | and have common |             |          |
|                | ohydrin | directors       |             |          |
|                | and     |                 |             |          |
|                | caustis |                 |             |          |
|                | soda    |                 |             |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Epoxy &   | Manu    | Thai Carbon     | -   Payment | 94       |
| Allied Product | facture | holds 19.88% of |     of      |          |
| Co.,Ltd        | of      | Thai Epoxy’s    |             |          |
|                | Epoxy   | common equity   |    interest |          |
|                | Resins  | and have common |     on      |          |
|                |         | directors       |     short   |          |
|                |         |                 |     term    |          |
|                |         |                 |     loans   |          |
+----------------+---------+-----------------+-------------+----------+
| Thai Rayon     | Manu    | Thai Rayon      | -   Sale of | 17       |
| Public Co.,Ltd | facture | holds 24.98% of |     goods   |          |
|                | of      | Thai Carbon’s   |             |          |
|                | viscose | common equity   |             |          |
|                | rayon   | and have common |             |          |
|                | staple  | directors       |             |          |
|                | fibre   |                 |             |          |
+----------------+---------+-----------------+-------------+----------+

13.2 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.

Related Companies

(1) Thai Rayon Public Company Limited

Type of Business

Manufacture of Viscose Rayon Staple Fibre

Board of Directors (As on 31 December 2002)

+----------------------------------+-----------------------------------+
| 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 ( expired on 22  | Director                          |
| Feb 2003)                        |                                   |
+----------------------------------+-----------------------------------+
| Mr. Ramakant Rathi               | Director                          |
+----------------------------------+-----------------------------------+
| Mr. Vinai Sachdev                | Director                          |
+----------------------------------+-----------------------------------+

Major Shareholder (As on 31December 2002)

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

  1. Asseau Inc.                                       16.66

  2. Wholton Co.,Ltd.                                  10.99

  3. Hart Global Limited                               10.71

  4. Grasim Industries Limited                         6.94

  5. Thailand Securities Depository Co.,Ltd. for       6.02
  depositor                                            

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

  7. Mrs. Rachani Kajiji                               3.47

  8. Mr. Prabcharan Singh Thakral                      3.42

  9. Mr. Vanida Thakral                                2.74

  10. Mr. Jaimal Thakral                               2.61
  ---------------------------------------------------- ------------------

(2) Thai Sulphite & Chemical Company Limited

Type of Business : Manufacture of Sodium Sulphites & Metabisulphites

Board of Directors (As on 31 December 2002)

  ----------------------------------- -----------------------------------
  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 2002)

  ---------------------------------------------------- ------------------
  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) Thai Acrylic Fibre Company Limited

Type of Business : Manufacture of Acrylic Fibre

Board of Directors (As on 31 December 2002)

+----------------------------------+-----------------------------------+
| Name                             | Position                          |
+----------------------------------+-----------------------------------+
| 1.  Mr. Kumar Manglam Birla      | Chairman                          |
+----------------------------------+-----------------------------------+
| 2.  Mrs. Rajashree Birla         | Director                          |
+----------------------------------+-----------------------------------+
| 3.  Mr. S.S. Mahansaria          | Director                          |
+----------------------------------+-----------------------------------+
| 4.  Mr. Deepak Mittal            | Director                          |
+----------------------------------+-----------------------------------+
| 5.  Mr. Narinder Pal Sachdev     | Director                          |
+----------------------------------+-----------------------------------+
| 6.  Mr. I.S. Narang (expired on  | Director                          |
|     22 Feb 2003)                 |                                   |
+----------------------------------+-----------------------------------+
| 7.  Mrs. Ratchani Kajiji         | Director                          |
+----------------------------------+-----------------------------------+
| 8.  Mr. Songkram                 | Director                          |
|     Cheevaprawatdomrong          |                                   |
+----------------------------------+-----------------------------------+
| 9.  Mr. Manfred Wiemken          | Director                          |
+----------------------------------+-----------------------------------+
| 10. Mr. C. J. Lalkaka            | Director                          |
+----------------------------------+-----------------------------------+
| 11. Mr. Arvind Kumar Newar       | Director                          |
+----------------------------------+-----------------------------------+

Major Shareholder (As on 31December 2002)

  ------------------------------------------------------- ---------------
  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 2002)

  ----------------------------------- -----------------------------------
  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 2002)

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

  1. Thai Rayon Public Company Limited                    49.00%

  2. Thai Carbon Black Public Company Limited             49.00%

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