Report of the Audit Committee

To the Shareholders

In the year 2006, the Board of Directors of Thai Carbon Black Public
Company Limited has reappointed the Audit Committee comprising of 3
independent directors, who are qualified according to the Regulation and
Best Practice Guidelines for Audit Committee of the Stock Exchange of
Thailand. At present, the Audit Committee of the Company comprising of
Mr. R.K. Rathi, Chairman of Audit Committee, Mr. Prakit Pradipasen and
Mr. Sachin Jitendra Mehta, Audit Committee members, with Mr. Pawan Jain,
CFO serves as the secretary of the committee.

The Audit Committee fulfilled the responsibilities according to the
scope, duties and responsibilities assigned by the Board of Directors
that complies with the Regulations of the Stock Exchange of Thailand.
There were 4 Audit Committee meetings in the year 2008. The meeting
attendance of each member is followed

+----------------------------+-----------------+----------+----------+
| Name                       | Position        | Meeting  | Remark   |
|                            |                 | at       |          |
|                            |                 | tendance |          |
|                            |                 | (no.)    |          |
+----------------------------+-----------------+----------+----------+
| 1.Mr. R.K. Rathi           | Chairman of     |   0/4    | Being    |
|                            | Audit Committee |          | foreign  |
|                            |                 |          | d        |
|                            |                 |          | irector* |
+----------------------------+-----------------+----------+----------+
| 2.Mr. Prakit Pradipasen    | Audit Committee |   4/4    |          |
|                            | member          |          |          |
+----------------------------+-----------------+----------+----------+
| 3.Mr. Sachin Jitendra      | Audit Committee |   4/4    |          |
| Mehta                      | member          |          |          |
+----------------------------+-----------------+----------+----------+

*Note - Mr. R.K. Rathi has been involved in all the important discussion
of the Audit Committee and all the important information has been shared
and discussed with him.

The major agenda items discussed in the Audit Committee meeting in 2008
are summarized as below:

1.  Reviewed the quarterly and annual financial statement of 2008 to
    ensure that the statement has been prepared in accordance with
    generally accepted accounting principles and that sufficient
    disclosure of significant matters has been made for the benefit of
    decision making of the users of the company’s financial statement.

2.  The Audit Committee is of opinion that the Company had the internal
    control system that is adequate, appropriate and effective, and is
    having adequate internal audit function in place to carry out
    internal audit activities periodically

3.  Reviewed the company’s performance to ensure compliance with the
    Securities and Exchange Acts, Regulations of the Stock Exchange of
    Thailand (SET) and any other relevant laws, including the compliance
    with the Company’s requirement and obligations to external agencies
    related to its business

4.  Reviewed the company’s risk management system to ensure its
    adequacy. The audit Committee is of the opinion that Company’s risk
    management process is efficient and effective.

5.  Reviewed and provided opinion to connected transactions or
    transactions that may have conflict of interest, and information
    disclosure of such transactions to comply with Regulation of the
    Stock Exchange of Thailand (SET) and the Office of the Securities
    and Exchange Commission (SEC). The external auditors are of opinion
    that the significant transaction with the connected persons were
    disclosed and shown in the Financial Statement and notes to
    Financial Statements and the Audit Committee considered that such
    transactions were reasonable and beneficial to the business of the
    Company and were disclosed correctly and completely.

6.  Considered appointment of the External Auditors and their
    Remuneration for year 2009, to propose to the Board of Directors to
    ask for the approval of the shareholders in the AGM for the year
    2009, after considering the performance, independency and
    remuneration and concluded to propose appointment of Mr. Narong
    Puntawang License no.3315,Ms. Thipawan Nananuwat License no.3459and
    Ms.Siraporn Ouaanunkun License no.3844 of M/S Ernst & Young office
    limited to serve as the Company’s external’s auditor for the year
    2009, with the remuneration of 900,000 Baht plus out of pocket
    expenses which is same as last year. The Audit Committee gave its
    opinion regarding the external auditors as follows:

    a.  The external auditors performed their duties with knowledge,
        professional competency and gave recommendation regarding
        internal control system and various risks and also maintained
        independency in performing their duties.

    b.  The proposed remuneration for year 2009 of Baht 900,000 is
        appropriate which is same with year 2008. In the year 2008, the
        external auditor’s remuneration was increased by 9.7% compared
        to 2007 mainly due to increase in their cost of working.

    c.  There is compliance with Regulation of the Office of the
        Securities and Exchange Commission (SEC) with regards to the
        changing of the external auditor every 5 years. If such auditor
        is reappointed to be the external auditors for the year 2009, it
        shall be 4^(th) consecutive years.

    d.  The external auditors had no relation with the company and its
        subsidiaries.

The Audit Committee always values proper internal control and continuous
risk management system. The Company has good corporate governance and
appropriate procedures in line with its business, together with reliably
accounting practices, financial statements and compliance with relevant
laws and regulations.

Mr. R.K. Rathi

Chairman of Audit Committee