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|  Financial Information                                                |
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Independent Auditor's Report

I have audited the accompanying consolidated financial statements of
Thai Carbon Black Public Company Limited and its subsidiaries, which
comprise the consolidated statement of financial position as at 31 March
2014, and the related consolidated statements of income, comprehensive
income, changes in shareholders’ equity and cash flows for the year then
ended, and a summary of significant accounting policies and other
explanatory information, and have also audited the separate financial
statements of Thai Carbon Black Public Company Limited for the same
period.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Thai Financial Reporting
Standards, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements
based on my audit. I conducted my audit in accordance with Thai
Standards on Auditing. Those standards require that I comply with
ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Thai Carbon
Black Public Company Limited and its subsidiaries, and of Thai Carbon
Black Public Company Limited as at 31 March 2014, and their financial
performance and cash flows for the year then ended, in accordance with
Thai Financial Reporting Standards.

Termphong Opanaphan

Certified Public Accountant (Thailand) No. 4501

EY Office Limited

(Formerly known as “Ernst & Young Office Limited”)

Bangkok: 22 May 2014

13.1 Summary of Financial Information

  Thai Carbon Black Public Company Limited and its subsidiaries

  Statement of financial position

  As at 31 March 2014 (Audited)

(Unit : Baht)

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  Thai Carbon Black Public Company Limited and its subsidiaries

  Statement of financial position (continued)

  As at 31 March 2014 (Audited)

(Unit : Baht)

[]

  Thai Carbon Black Public Company Limited and its subsidiaries

  Income Statement

  For the year ended 31 March 2014 (Audited)

(Unit : Baht)

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  Thai Carbon Black Public Company Limited and its subsidiaries

  Statement of comprehensive income

  For the year ended 31 March 2014 (Audited)

(Unit : Baht)

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  Thai Carbon Black Public Company Limited and its subsidiaries

  Cash flow statement

  For the year ended 31 March 2014 (Audited)

(Unit : Baht)

[]

  Thai Carbon Black Public Company Limited and its subsidiaries

  Cash flow statement (continued)

  For the year ended 31 March 2014 (Audited)

(Unit : Baht)

[]

Additional information

To facilitate a proper comparison, the profit and loss account of period
April 2012 to March 2013, i.e. corresponding 12 months is provided as
additional information in note number 24 to audited financial statement.
In management analysis, the comparison of current year performance is
made to immediately preceding 12 months period. The income statement for
the year ended 31 March 2014 and 2013 are presented as below.

(Unit : Thousand Baht)

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13.2 Summary significant financial ratio (The Company only)

[]

Summary significant financial ratio (Consolidated)

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| 13. Management Discussion and Analysis of Operating Results           |
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Pursuant to change of accounting year from calendar year cycle to
April-March cycle, the current accounting year comprises of April 2013
to March 2014. Immediately prior accounting year was a short period of 3
months (January 2013 to March 2013). However, to facilitate a proper
comparison, the profit and loss account of period April 2012 to March
2013, i.e. corresponding 12 months is provided as additional information
in note number 24 to audited financial statements. In management
analysis, the comparison of current year performance is made to
immediately preceding 12 months period.

Production and sales

Due to continuing recessionary conditions in key economies, and high
level of import of Chinese Carbon black in Thailand and Asian markets,
the production and sales performance of the company this year was lower
than immediately preceding 12 months’ period. Total production this year
was 176,015 MT which is 8% lower than 191,897 MT in preceding period.
Total sales during the current year were down by 6% to 179,994 MT as
compared to 191,568 MT preceding period. Sales revenue declined to THB
7,789 million during financial year 2013-14 as compared to 8,972 million
in preceding period.

Other Income

During current year the company earned interest and dividend of THB 326
million as compared to 269 million in preceding period. Current year
other incomes include loss of 99 million on disposal of Liaoning Birla
Carbon Company, the subsidiary in China. Preceding year other income
include exchange gain of 98 million, mainly on investments.

Cost and Expenses

Cost of sale of current period was 6,539 million, which is 84% of sales
as compared to 7,826 million and 87% preceding period. As detailed in
the Directors’ report, several initiatives taken by the company to
improve efficiency, yields, productivity and quality have benefitted
company in maintaining gross margins in tough market conditions.

During the period overhead costs were kept under tight control. However
in a tough market condition, the increased sales and marketing efforts
of the company caused selling, general and administration costs to
increase from 381 million THB during preceding period to 416 million THB
in current period.

Impairment losses

In line with company’s policy to account for an impairment loss on any
investment where there has been a significant and prolonged decline in
the fair value below the cost, company has recognized a loss of 207
million THB on equity investments in Alexandria Fiber S.A.E., Egypt. The
company was running in losses due to recessionary conditions in European
Union, the principal market of the company.

During preceding year, the Company had provided 613 million THB for
losses on investment and loans given to Liaoning Birla Carbon Company,
China, the subsidiary in China.

Profits

During the current period, company recorded a net profit of 528 million
as compared to profit of 316 million during preceding period. Excluding
the losses on sale of investment and provision for impairment losses,
the current year net profit is 814 million THB compared to 806 million
during preceding period on same basis.

Financial Position (Company only)

Assets

The total assets as of 31^(st) March 2014 amounted to THB 13,383 million
compared to 13,454 million as of 31^(st) March 2013. Details of major
assets are as follow

-   Cash

The cash and cash equivalents were higher at THB 573 million as of
31^(st) March 2014 due to better working capital management compared to
254 million as of 31^(st) March 2013.

-   Inventory

At the year end the inventory were lower at 1,097 million THB due to
better feedstock procurement and production planning. Inventories at
31^(st) March 2013 were 1,616 million.

-   Receivables

Trade and other receivables were higher at 1,748 million THB as compared
to 1,612 million THB as of 31^(st) March 2013.

-   Property, plant and equipment

Net value of Property, Plant and Equipment (after depreciation) was
1,739 million as compared to 1,945 million as of 31^(st) March 2013.
During current year company made capital expenditure of THB 110 million
in property, plant and equipment. The capital expenditure was primarily
in efficiency improvement, health, environment, and safety projects.

-   Long term Investments

Long term investments decreased to 2,440 million THB from 2,646 million
as of 31^(st) March 2013, due to THB 207 million of impairment loss
recorded on investment in Alexandria Fiber S.A.E., Egypt.

Liabilities and Shareholders’ Equity

The total liabilities decreased from 4,669 million as of 31^(st) March
2013 to 4,239 million THB as of 31^(st) March 2014. The decline is
mainly due to 938 million repayment of long term loan.

Total equity during the current period increased to 9,145 million as of
31^(st) March 2014 from 8,785 million as of 31^(st) March 2013. The net
increase of 360 million THB is represented by current year profit of 528
million THB, dividend distributions of 132 million THB for year 2012 and
33 million for period Jan-Mar 2013, and 3 million THB impact of
actuarial valuation of employee benefits.

Earnings per share

The current year earnings per share increased to THB 1.76 compared to
1.05 baht preceding period.

Book value per share

As of 31^(st) March 2014, book value per share was THB 30.48 compared to
29.28 as on 31^(st) March 2013.

Analysis of Financial Ratios (Company only)

Liquidity

The company’s current ratio as of 31^(st) March 2014 was 2.06 against
2.43 as of 31^(st) March 2013. Company follows prudent cash flow
management policies and maintains good liquidity.

Capital Gearing

During the period, total liability to total equity ratio improved to
0.46 from 0.53 as of 31^(st) March 2013. The company has historically
maintained reasonable debt levels.

Profitability

Current year gross profit margin of the company improved to 16.0%,
compared to 12.9% in preceding period. The net profit margin was 6.6%
compared to 3.4% preceding period.

Efficiency

Lower sales and production volumes reduced the total assets turnover to
0.60 as of 31^(st) March 2014 from 0.64 as of 31^(st) March 2013.
However there was improvement in working capital cash cycle from 129
days as of 31^(st) March 2013 to 125 days as of 31^(st) March 2014.