MIRA INFORM REPORT

Report Date :

20.12.2012

Note: Given name is an old name of the company.

IDENTIFICATION DETAILS

Name :	JSW ISPAT STEEL LIMITED (w.e.f. 28.06.2011)
Formerly Known As :	ISPAT INDUSTRIES LIMITED
Registered Office :	Victoria House, 2^nd Floor, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400 013, Maharashtra
Country :	India
Financials (as on) :	30.06.2011
Date of Incorporation :	23.05.1984
Com. Reg. No.:	11-238266 (New) 21-037519 (Old)
Capital Investment / Paid-up Capital :	Rs.33549.200 Millions
CIN No.: [Company Identification No.]	L27106MH1984PLC238266 (New) L27106WB1984PLC037519 (Old)
TAN No.: [Tax Deduction & Collection Account No.]	CALI01452D
PAN No.: [Permanent Account No.]	AAACI6293E
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Iron and Steel Products.
No. of Employees :	3499 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (37)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 81050000
Status :	Moderate
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of Jindal Group, India. It is a well established and reputed company having moderate track. Even though the company has achieved good sales turnover during 2011, it has also incurred some loss. Accumulated losses appear to be huge. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	06.09.2012

Rating Agency Name	CARE
Rating	A3 (Short Term Bank Facilities)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	06.09.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Corporate Office 1 :	Victoria House, 2^nd Floor, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-24833000
Fax No.:	91-22-24922840
E-Mail :	ispat.park@ndil.sprintrpg.ems.vsnl.net.in ispatcal@giascl01.vsnl.net.in sseshadri@scasablanca.iil.co.in ispatcal@vsnl.com
Website :	www.ispatgroup.com www.ispatind.com
Head Office :	Tower A, 3^rd Floor, DLF IT Park, 08 Major Arterial Road, Block AF, New Town, Kolkata – 700 156, West Bengal, India
Tel. No.:	91-33-40002020
Fax No.:	91-33-40002021
Central Marketing Office :	Casablanca, 2^nd Floor, Sector 11, CBD, Belapur, Navi Mumbai - 400 614, Maharashtra, India
Tel. No.:	91-22-27582500/ 2600/ 2700
Fax No.:	91-22-27577959/ 7972
E-Mail :	mktg_cmo@ispatind.com
Corporate Office 2 :	7^th Floor, Nirmal, Nariman Point, Mumbai - 400 021, Maharashtra, India
Tel. No.:	91-22-66542222
Fax No.:	91-22-22855519
E-Mail :	contactus@ispatind.com communications@ispactind.com corporate.communicatons@ispatind.com
Factory 1 :	Cold Rolling Mill and Coating Plant Complex: A-10/1, MIDC Industrial Area, Kalmeshwar, District Nagpur – 441 501, Maharashtra, India
Tel. No.:	91-711-8271401-06
Fax No.:	91-711-8271401-06
Factory 2 :	Sponge Iron Plant, Hot Strip Mill Plant and Blast Furnace Plant: Geetapuram, Dolvi, Taluka Pen, Raigad District – 402 107, Maharashtra - India
Tel. No.:	91-2143-277501-14
Fax No.:	91-2143-277533/ 42
Branch Office/ Depots/ Consignment Agents :	“Park Plaza”, 1^st Floor, 71, Park Street, Kolkata – 700 016, West Bengal, India
Tel. No.:	91-33-22492213/ 3119/ 5102/ 5104/ 22491011/ 30265000
Fax No.:	91-33-22491956
Branches/ Depots/ Consignment Agents :	Also located at: v Cuttack v Guwahati v Patna v Ahmadabad v Aurangabad v Mumbai v Pune v Ajmer v Bhopal v Chandigarh v Delhi v Ghaziabad v Indore v Kanpur v Karnal v Ludhiana v Parwanoo v Bangalore v Chennai v Cochin v Hyderabad v Hubli

DIRECTORS

As on 30.06.2011

Name :	Mr. Sajjan Jindal
Designation :	Chairman
Name :	Mr. Vinod Mittal
Designation :	Vice Chairman
Name :	Mr. Pramod Mittal
Designation :	Director
Name :	Mr. Seshagiri Rao MVS
Designation :	Director
Name :	Mr. U. Mahesh Rao
Designation :	Director
Name :	Mr. Vinod Kothari
Designation :	Director
Name :	Mr. Atul Sud
Designation :	Director
Name :	Mr. Haigreve Khaitan
Designation :	Director
Name :	Mr. M. Sankaranarayanan
Designation :	Director (Nominee - Axis)
Name :	Mr. S.N. Baheti
Designation :	Director (Nominee - IDBI Bank Limited)
Name :	Ms. Manju Jain
Designation :	Director (Nominee - IFCI Limited)
Name :	Mr. Mayank Agrawal
Designation :	Director (Nominee - ICICI Bank Limited)
Name :	Mr. Suhail Nathani
Designation :	Director (Alternate to Mr. Pramod Mittal)

KEY EXECUTIVES

Name :	Mr. B.K. Singh
Designation :	Chief Executive Officer
Name :	Mr. T.P. Subramanian
Designation :	President and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6441236	0.26
Bodies Corporate	1394274230	55.40
Sub Total	1400715466	55.65
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	677576	0.03
Bodies Corporate	269071893	10.69
Sub Total	269749469	10.72
Total shareholding of Promoter and Promoter Group (A)	1670464935	66.37
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	986464	0.04
Financial Institutions / Banks	221594003	8.80
Central Government / State Government(s)	12768	0.00
Insurance Companies	62086077	2.47
Foreign Institutional Investors	28127020	1.12
Sub Total	312806332	12.43
(2) Non-Institutions
Bodies Corporate	110383101	4.39
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	295760469	11.75
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	84165413	3.34
Any Others (Specify)	43250251	1.72
Non Resident Indians	28673867	1.14
Foreign Corporate Bodies	1732800	0.07
Hindu Undivided Families	1143024	0.05
Trusts	29945	0.00
Clearing Members	10643513	0.42
Market Maker	999802	0.04
Overseas Corporate Bodies	300	0.00
Foreign Nationals	27000	0.00
Sub Total	533559234	21.20
Total Public shareholding (B)	846365566	33.63
Total (A)+(B)	2516830501	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	2516830501	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Iron and Steel Products.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
720826 00	Hot Rolled Coils
720310 00	Director Reduced Iron
720927 00	Cold Rolled Sheets
721030 00	Galvanized Sheets
720110 00	Pig Iron / Hot Metal

PRODUCTION STATUS (AS ON 30.06.2011)

Particulars	Unit	Installed Capacity	Actual Production
Direct Reduced Iron	MT	1600000	1209360
Hot Rolled Coils	MT	3300000	2203696
Cold Rolled Carbon Steel Sheets/Coils	MT	330000	217107
Galvanised Coils/Sheets#	MT	225000	141161
Galvalume Coils/Sheets#	MT	100000	48748
PVC Coated Sheets	MT	60000	54151
Tubes and Pipes	MT	56000	14557
Pig Iron/ Hot Metal	MT	2000000	1352382

NOTE:

v Licensed Capacity is not applicable as the industry is delicensed.

v Certified by the Company’s Technical Experts.

GENERAL INFORMATION

No. of Employees :

3499 (Approximately)

Bankers :

v State Bank of India

v Bank of India

v Punjab National Bank

v Indian Overseas Bank

v The Hong Kong and Shanghai Banking Corporation Limited

v ICICI Bank Limited

v UCO Bank

Facilities :

SECURED LOAN	30.06.2011 (12 Months)	30.06.2010 (15 Months)
	(Rs. in Millions)
A) Term Loans
I) Rupee Loans
1) From Financial Institutions
(i) Term Loans	15297.300	18118.100
(ii) Zero Coupon Loans	504.200	537.800
2) From Banks
(i) Term Loans	19602.500	24388.800
(ii) Zero Coupon Loans	1146.000	1222.300
II) Foreign Currency Loans
(i) Financial Institutions	2487.500	2771.500
(ii) Banks	17906.500	20715.500
III) Interest Accrued and Due	0.000	1430.000
B) Working Capital Finance
From Banks	2167.000	2385.000
Total	59111.000	71569.000
NOTE: A. (i) The Rupee and Foreign Currency Term Loans from Financial Institutions and Banks, are secured by way of equitable mortgage by deposit of title deeds of the Company’s immovable properties at Geetapuram (Dolvi) and by mortgage of leasing rights in the immovable properties at Kalmeshwar (Nagpur) both in the State of Maharashtra and a first charge by way of hypothecation of the Company’s movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, (both present and future), subject to prior charges created in favour of the Company’s bankers on the stock of raw materials, finished goods, process stock, consumable stores and book debts for securing working capital facilities. (ii) The Term Loans are also secured by way of english mortgage of the title in the Landed property at Mumbai, which was sold by the Company to Peddar Realty Private Limited (PRPL) in an earlier year. The Company’s title is subject to the rights and interest of PRPL. The indenture of mortgage has been jointly signed by the Company and PRPL. These term loans are further secured by the corporate guarantee and pledge of entire shareholdings of PRPL. (iii) All the mortgages and charges created in favour of the Financial Institutions and Banks rank pari-passu inter se, except where specifically stipulated otherwise. (iv) A second charge on the fixed and current assets has been created in favour of the working capital lenders and term loan lenders respectively. (v) Term Loans are also secured by the pledge of a part of the shareholding of the promoters as well as by the personal guarantees of Mr. Pramod Mittal and Mr. Vinod Mittal, directors of the Company. Term loans aggregating to Rs.1430.000 Millions (Rs.1430.000 Millions) are also secured by personal guarantee of Mr. M.L. Mittal, a former director of the Company. (vi) Term Loans of Rs.1436.800 Millions (Rs.1436.800 Millions) are further secured by the Corporate Guarantee of Navoday Consultants Limited. B. Cash Credit and other working capital facilities from Banks are secured by the hypothecation of raw materials, finished goods, process stock, consumable stores, book debts, etc. (both present and future), and second charge over the entire fixed assets of the Company. The working capital facilities from banks are also secured by personal guarantees of Mr. Pramod Mittal and Mr. Vinod Mittal, directors of the Company. A part of the cash credit and other facilities from Punjab National Bank and Bank of India are also secured by personal guarantee of Mr. M.L. Mittal, a former director of the Company. C. Term Loans aggregating to Rs.7561.300 Millions (Rs.8696.800 Millions) are repayable within one year.
UNSECURED LOAN	30.06.2011 (12 Months)	30.06.2010 (15 Months)
	(Rs. in Millions)
Short term Loans and Advances
a) From Banks	7100.000	0.000
b) From Others	2860.100	0.000
(Entire amount is falling due for payment within one year)
Other Loans and Advances
a) Sales Tax Loan from Government of Maharashtra	128.900	143.500
b) Deferred Sales Tax/ Value Added Tax [Includes Rs.20.600 Millions (Rs.14.600 Millions) falling due for payment within one year]	127.600	105.000
Total	10216.600	248.500

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and company Chartered Accountants
Address :	22, Camac Street, Block ‘C’, 3^rd Floor, Kolkata – 700 016, West Bengal, India
Associates/Subsidiaries :	v Nippon Ispat Singapore (Pte) Limited v Erebus Limited v Arima Holdings Limited v Lakeland Securities Limited v Ispat Energy Limited v Rewa Infrastructures Private Limited (ceased w.e.f. 16th November, 2010) v Ispat Jharkhand Steels Limited v Kalyani Mukand Limited v Drum International Inc. v Minandes S.A.
Joint Venture :	Amba River Coke Limited (ceased w.e.f. 14th February, 2011)
Related Parties :	v Navoday Exim (Private) Limited v Navoday Management Services Limited v Navoday Consultants Limited v Denro Holding (Private) Limited v Mita Holdings (Private) Limited v Goldline Tracom (Private) Limited v Gontermann Peipers India Limited v Kartik Credit (Private) Limited v Ushaditya Trading (Private) Limited v Navdisha Real Estate (Private) Limited v Balasore Alloys Limited v Geetapuram Port Services Limited (upto 19th July, 2009) v Peddar Realty (Private) Limited v Chattisgarh Energy Limited v Rewa Infrastructures Private Limited (w.e.f. 16th November, 2010) v Radiant Stars International Limited v Shinning Stars Limited v Chancellor Build Estate (Private) Limited v E-Star Exchange (Private) Limited v North East Natural Resources (Private) Limited v Central India Power Company Limited

CAPITAL STRUCTURE

As on 30.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000000	Equity Shares	Rs.10/- each	Rs.40000.000 Millions
100000000	Preferences Shares	Rs.100/- each	Rs.10000.000 Millions
1000000000	Preferences Shares	Rs.10/- each	Rs.10000.000 Millions
	Total		Rs.60000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2386799130	Equity Shares	Rs.10/- each	Rs.23868.000 Millions
	Less: Allotment and Call Money in Arrears		Rs.7.100 Millions
	[Due From Other Than Directors] [A]		Rs.23860.900 Millions
43199500	12% Cumulative Redeemable Preference Shares (CRPS) fully paid-up (Redeemable at par in Thirteen annual installments commencing from 31.03.2020)	Rs.100/- each	Rs.4319.900 Millions
	Less: Redeemed		Rs.1036.800 Millions
			Rs.3283.100 Millions
155112156	10% Cumulative Redeemable Preference Shares (CRPS) of Rs.10 each fully paid-up (Redeemable at par in Eight quarterly installments commencing from 15.06.2018)	Rs.10/- each	Rs.1551.100 Millions
485908844	0.01% Cumulative Redeemable Preference Shares (CRPS)of Rs.10 each fully paid-up (Redeemable at par in Eight quarterly installments commencing from 15^th June 2018)	Rs.10/- each	Rs.4859.100 Millions
			Rs.9693.300 Millions
	Less: Allotment and Call Money in Arrears		Rs.5.000 Millions
	[Due From Other Than Directors] [B]		Rs.9688.300 Millions
	[A + B]		Rs.33549.200 Millions

NOTE:

Out of above 183109080 equity shares of Rs.10 each, 13600000 12 % CRPS of Rs.100 each and 122072720 0.01% CRPS of Rs.10 each, fully paid-up, were issued for consideration other than cash, pursuant to Scheme of Reconstruction and Amalgamation approved by the jurisdictional High Courts of Bombay and Calcutta.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2011 (12 Months)	30.06.2010 (15 Months)	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		33549.200	22250.900	22725.100
2] Share Application Money		1509.600	180.000	519.800
3] Reserves & Surplus		24606.300	14718.300	15444.800
4] (Accumulated Losses)		(39401.100)	(21342.300)	(18321.500)
NETWORTH		20264.000	15806.900	20368.200
LOAN FUNDS
1] Secured Loans		59111.000	71569.000	71512.800
2] Unsecured Loans		10216.600	248.500	2002.400
TOTAL BORROWING		69327.600	71817.500	73515.200
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		89591.600	87624.400	93883.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		72451.400	79273.500	88878.100
Capital work-in-progress		618.600	637.300	985.200
Pre-operative & Trial Run Expenses		0.000	0.000	41.900
INVESTMENT		1634.200	2293.700	2328.900
DEFERRED TAX ASSETS		13087.600	9642.800	9501.300
Foreign Currency Monetary Item Translation Difference Account		0.000	20.800	49.400
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20405.600	19341.700	13829.300
	Sundry Debtors	3945.700	7589.700	5641.800
	Cash & Bank Balances	5958.800	2030.600	793.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5465.000	7953.200	9273.300
Total Current Assets		35775.100	36915.200	29538.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11341.500	18407.000	18348.900
	Other Current Liabilities	22176.500	22386.800	18740.800
	Provisions	457.300	365.100	350.00
Total Current Liabilities		33975.300	41158.900	37439.700
Net Current Assets		1799.800	(4243.700)	(7901.400)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		89591.600	87624.400	93883.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2011 (12 Months)	30.06.2010 (15 Months)	31.03.2009
	SALES
		Income	82266.400	101327.300	81319.800
		Other Income	3243.500	4459.600	4058.600
		TOTAL (A)	85509.900	105786.900	85378.400
Less	EXPENSES
		Excise Duty & Cess on Stocks	67.100	295.400	(189.300)
		Raw Materials Consumed	55913.900	58952.500	46508.400
		Personal Cost	2192.900	2693.100	2076.000
		Manufacturing, Selling & Distribution & Administrative Expenses	21786.800	28466.500	21625.500
		Exceptional Items	11806.200	0.000	0.000
		Increase/Decrease in Finished Goods	(945.400)	(2695.300)	1050.500
		TOTAL (B)	90821.500	87712.200	71071.100
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(5311.600)	18074.700	14307.300
Less	FINANCIAL EXPENSES (D)		10229.100	13699.800	11593.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(15540.700)	4374.900	2714.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5962.600	7739.500	6466.200
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(21503.300)	(3364.600)	(3751.900)
Less	TAX (H)		(3444.500)	(141.200)	3129.200
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(18058.800)	(3223.400)	(6881.100)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(21342.300)	(18321.500)	(10460.000)
Add/ Less	DEBENTURE REDEMPTION RESERVE WRITTEN BACK		0.000	202.600	277.100
	(A) TOWARDS EXCHANGE DIFFERENCES OF 2007-08 TRANSFERRED TO FIXED ASSETS (NET OF DEPRECIATION RS. 64.400 MILLIONS AND DEFERRED TAX CREDIT OF RS. 632.300 MILLIONS)		0.000	0.000	(1228.100)
	(B) TOWARDS EXCHANGE DIFFERENCES OF 2007-08 TRANSFERRED TO FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET OF AMORTISATION RS. 14.800 MILLIONS AND DEFERRED TAX CREDIT OF RS. 15.200 MILLIONS)		0.000	0.000	(29.400)
	BALANCE CARRIED TO THE B/S		(39401.100)	(21342.300)	(18321.500)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4861.600	4334.400	7198.500
		Vessel Rentals	0.000	0.000	24.100
	TOTAL EARNINGS		4861.600	4334.400	7222.600
	IMPORTS
		Raw Materials	22950.300	30464.700	25669.200
		Stores & Spares	1669.600	2896.000	1843.600
		Capital Goods	44.400	737.900	102.400
	TOTAL IMPORTS		24664.300	34098.600	27615.200
	Earnings / (Loss) Per Share (Rs.)		(10.60)	(3.37)

QUARTERLY RESULTS

PARTICULARS	30.09.2011	31.12.2011	31.03.2012	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Net Sales	27357.100	27678.100	27827.800	29730.600	26405.000
Total Expenditure	25671.500	25197.300	25876.200	26313.400	25345.500
PBIDT (Excl OI)	1685.600	2480.800	1951.600	3417.200	1059.500
Other Income	90.500	0.100	1015.700	1136.400	1002.300
Operating Profit	1776.100	2480.900	2967.300	4553.600	2061.800
Interest	2791.100	2862.400	2680.000	2557.400	1803.700
Exceptional Items	(952.300)	(1110.100)	(129.400)	(3387.700)	2353.600
PBDT	(1967.300)	(1491.600)	157.900	(1391.500)	2611.700
Depreciation	1485.500	1594.100	1570.800	1617.900	1617.100
Profit Before Tax	(3452.800)	(3085.700)	(1412.900)	(3009.400)	994.600
Tax	0.200	0.000	0.000	(7791.800)	-229.300
Profit After Tax	(3453.000)	(3085.700)	(1412.900)	4782.400	1223.900
Net Profit	(3453.000)	(3085.700)	(1412.900)	4782.400	1223.900

KEY RATIOS

PARTICULARS		30.06.2011 (12 Months)	30.06.2010 (15 Months)	31.03.2009
PAT / Total Income	(%)	(21.12)	(3.05)	(8.06)
Net Profit Margin (PBT/Sales)	(%)	(26.14)	(3.32)	(4.61)
Return on Total Assets (PBT/Total Assets}	(%)	(19.87)	(2.90)	(3.17)
Return on Investment (ROI) (PBT/Networth)		(1.06)	(0.21)	(0.18)
Debt Equity Ratio (Total Liability/Networth)		5.10	7.15	5.45
Current Ratio (Current Asset/Current Liability)		1.05	0.90	0.79

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	No
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	No
31) Date of Birth of Proprietor/Partner/Director, if available	No
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

Note:

The registered office of the company has been shifted from Tower A, 3^rd Floor, DLF IT Park, 08 Major Arterial Road, Block AF, New Town, Kolkata – 700 156, West Bengal to the present address.

FINANCIAL RESULTS

Income from operations during the year was Rs.89900.700 Millions. Profit before interest and finance charges and depreciation was Rs.6494.600 Millions.

After providing for interest and finance charges of Rs.10229.100 Millions and depreciation of Rs.5962.600 Millions, loss before exceptional items was Rs.9697.100 Millions. Exceptional items (details of which are contained in Note No.9 of the Notes forming part of the accounts) aggregating to Rs.11806.200 Millions have been provided for in the accounts for the year and, consequently, loss before tax was Rs.21503.300 Millions.

After considering Deferred Tax Credit of Rs.3444.800 Millions and Wealth Tax provision of Rs.0.300 Millions, net loss during the year was Rs.18058.800 Millions. The loss is proposed to be carried to next year’s accounts.

STEEL SCENARIO

Steel industry, across the world, has been gripped by uncertainties prevailing in the overall economic landscape. Global steel demand has been impacted by the slow economic growth in developed markets. Though GDP in US had marginally increased during 2010-11, the country faces a large fiscal deficit, low employment growth and reduced consumer spending. In the European Union Zone, the economies of Spain, Ireland, Greece and Portugal have been impacted by high unemployment, negative growth and increasing inflation levels. Government spending in all the economies have been widely hit and the potential threat of sovereign defaults loom large. The overall GDP growth in European Union Zone has, therefore, been low. On the other hand, economic growth in China was robust at over 10%. Coupled with economic growth, Chinese investments were also higher during the year. Overall, while GDP in emerging economies grew by over 7% during 2010, the growth in advanced economies was significantly lower at 3%. The current year, however, has witnessed low GDP growth in emerging economies, due to rising inflationary pressures and tightening of economic policies. A large number of enterprises in the steel sector are reassessing their capital expenditure plans. Advanced economies are not poised for sizeable growth and business sentiments are impacted due to the sovereign debt crisis in the European Union. US, European Union and several South Asian economies are not expected to grow substantially during 2012 and economic stimulus plans are generally perceived to be limited. Overall GDP growth is expected to remain modest in advanced economies. Stringent credit policies, lower export growth and the continuing fall in purchase index are widely expected to signal a lower GDP growth in China during 2012.

Crude steel production in India, at around 67 Million Tons, was higher by 6% during 2010 compared to the previous year. Indian steel consumption has witnessed steady growth, on the back of a robust GDP and increase in industrial production. However, during the current year, domestic steel consumption has been flat due to low IIP growth and heavy inflationary pressures. Steel industry margins have been under severe squeeze due to high input costs and inflationary trends impacting domestic consumption. Capital investment plans are significantly low due to economic pressures and increasing cost of capital.

OPERATIONS

The company had undertaken technical upgradation of facilities at its steel complex at Dolvi during November and December 2010. The upgradation involved blending of various technical facilities, plant shutdown and maintenance related activities. Operations at Dolvi complex had recommenced during end-December 2010.

Production of Hot Rolled Coils at 2.2 Million MTs was lower by 16.9% compared to the previous period, on an annualized basis. Production of Direct Reduced Iron (Sponge Iron) at 1.21 Million MTs and production of Hot Metal at 1.35 Million MTs were respectively lower by 10.2% and 20.6% compared to previous period, on an annualised basis. The incidence of lower production in all the product segments was due to plant shut-down during most part of November and December, 2010 for technical upgradation and maintenance activities. Restriction in availability of Natural Gas had cascading effect on input prices and also severely impacted production of Direct Reduced Iron.

Production of Cold Rolled Steel Coils/Sheets and Galvanized Coils/Sheets were lower at 0.21 Million MTs and 0.14 Million MTs, respectively. Production of Galvalume at 0.048 Million MTs had registered an increase of 90.1% over the previous period. Production of Tubes and Pipes, however, was lower at 0.014 Million MTs. Sales of Hot Rolled Coils at 2.08 Million MTs was lower by 10.34%, compared to previous period, due to lower production. Sales of Cold Rolled Steel Coils/Sheets were lower by 51.98%, whereas sales of Galvanized Coils/Sheets were lower by 2.74%, compared to previous period, due to lower production. Sales of Galvalume had risen by 80.03%, on an annualised basis, signifying future growth prospects in the value-added segment.

Various cost reduction initiatives have been undertaken by the Company, such as, usage of alternate grades of raw material, successful in-house commissioning of natural gas injection in blast furnace and lower usage of fluxes. However, the increase in bench mark prices for key inputs, viz., iron ore, coal and coke is likely to push up the cost of production during the current financial year. Further, with the changeover to quarterly, and in some cases monthly, pricing against the earlier practice of yearly pricing by major raw material suppliers, uncertainties in the pricing of key inputs get heightened. Cost of natural gas has also risen sharply, since the Company is compelled to explore alternate domestic sources in the wake of supply restrictions.

EXPORTS

Export earnings during the year was Rs.4861.600 Millions, signifying an increase of 40% over the previous period, on an annualized basis. Global steel demand has been slack due to negative economic indicators in advanced economies. The Company would continue to integrate its export strategies with global steel demand conditions. The dynamics of global market scenario shall drive the Company’s export plans as well as development of niche steel products for advanced application overseas.

PROJECTS

The Company’s lime production capacity is currently 600 Tons Per Day (TPD), while the requirement is over 1200 TPD. Requirement of lime is expected to rise to around 1800 TPD, once the steel-making capacity is enhanced to 5 Million Tons per annum. Hence, keeping in mind the present as well as future requirement of lime, the Company proposes to set-up a lime calcining plant of the capacity of 600 TPD at its Dolvi steel complex. The technology for the project as well as the major equipment are being sourced from M/s. Cimprogetti, Italy. The project is estimated to cost around Rs 750.000 Millions and is planned to be financed through internal accruals. The project is expected to be commissioned within a period of 15 months.

The Company is planning to set-up a railway siding facility adjacent to its Dolvi steel complex, with a view to ensure economic transportation of key inputs as well as Hot Rolled Coils. Upon setting-up of the railway siding facility substantial savings are envisaged on both inbound and outbound logistics. Land required for the purpose is being acquired. The project is estimated to cost around Rs. 900.000 Millions and is planned to be financed through internal accruals. The project is expected to be commissioned within a period of 15 months.

With a view to ensure regular supply of power and achieve savings in cost thereof, the company proposes to set-up a gas-based power plant of a capacity of 55 MW. The power plant will use waste gas being generated by the Blast Furnace, as feed-mix. The company is at an advanced stage of negotiation with various technology and equipment suppliers. The project cost is estimated at around Rs.1550.000 Millions and is planned to be financed through internal accruals. The project is expected to be commissioned within a period of 18 months. Considering the growing demand for colour coated steel with galvanized / galvalume base, both in project / construction sectors and consumable durable segment, the Company proposes to set-up a second colour coating line at its Kalmeshwar complex. The project is estimated to cost around Rs.400.000 Millions and is planned to be financed through internal accruals. The project is expected to be commissioned within a period of 15 months.

Additionally, with a view to ensure raw material integration and achieve savings in input costs, JSW Steel Limited proposes to set-up a coke oven plant of the capacity of 1 Million Tons per Annum and a pellet plant of the capacity of 4 Million Tons Per Annum at the Company’s Dolvi steel complex. Implementation of these projects would ensure that the company is not exposed to market risks in sourcing quality coke and pellets for its steel-making operations. The coke oven and pellet projects are likely to be commissioned within 24 months and 21 months, respectively. The projects are proposed to be implemented through Special Purpose Vehicle (SPV) Company(ies). JSW Steel Limited has also proposed to set-up a 0.8 Mio TPA Cold Rolling facility at the Company’s Dolvi steel complex, with a view to augment the company’s efforts to capture downstream opportunities. The project is expected to cost around Rs.3000.000 Millions and is likely to be commissioned within a period of 18 months.

ACQUISITION OF EQUITY SHARES IN JSW ENERGY LIMITED

In order to be eligible to treat one of the units (300 MW) of JSW Energy Limited, at Ratnagiri, Maharashtra as a captive unit for supply of power, the Company has invested a sum of Rs. 1632.900 Millions during the year in the Equity Shares of JSW Energy Limited, during the year and is in the process of entering into a ‘Energy Wheeling Agreement’ to ensure long term supply of power.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

GLOBAL STEEL SCENARIO

World crude steel production touched 1,414 Million Metric Tonnes (MT) during 2010, an increase of 15% compared to 2009. All the major steelproducing countries and regions recorded double-digit growth during 2010. The European Union and North America had higher growth rates due to the lower base effect of 2009, while Asia and the CIS recorded relatively lower growth. China produced 627 Million MT of crude steel and continues to remain the World’s top steel producer.

Steel production in Asia during 2010 was around 900 Million MT, up by 11% over the previous year. European Union produced around 175 Million MT in 2010, recording a significant growth of 24% over 2009. US Steel production at 112 Million MT was higher by 35% over the previous year. CIS Countries, however, recorded modest growth of 11% with production volume of around 110 Million MT.

During the current year, however, global steel industry has been severely impacted by the prevailing economic uncertainities. Steel production during the current year is expected to be a little over 1500 Million MTs, an overall growth of 6% on year-to-year basis. Global steel production during 2012 is expected to be around 1550 Million MTs, registering a modest growth of 3%, reflecting the current business sentiments prevailing in most world economies. The wide diminishment in business optimism due to recent developments in the European Union, volatile swings in currency values and declines in stock markets have added to the overall negative business sentiments.

As a result, the global steel industry is bearing the twin challenges of subdued demand and increasing commodity prices. The slow global economic recovery and the debt crisis in Eurozone have significantly weakened investment prospects. High inflation levels and stringent monetary policies adopted by governments, across the world, have resulted in diminished growth prospects. Moreover, the inflationary pressures on commodity prices have resulted in steep escalation of steel-making costs and lower margins. However, the Chinese economy is expected to accelerate by mid-2012, in response to easing of credit policies. Government funding of infrastructure projects is also likely to improve in USA and European Union, leading to increased construction activities and an accelerated demand for steel.

INDIAN STEEL SCENARIO

India currently ranks 5th in terms of crude steel production. During 2010, steel production in India was around 66 Million MT, growing 6% over the previous year. Steel consumption had recorded a healthy growth of 10% during the year, backed by strong demand in automobile and construction sectors.

Indian crude steel production is estimated to increase by 200 Million MTs by the end of the current decade. Per capita steel consumption is expected to grow significantly from the current levels. Thrust on infrastructure projects is expected to create major demand for steel products in the coming years. The Eleventh Five Year Plan has estimated investment of over USD 500 billion in the infrastructure sector, comprising power, roads, railways, ports, etc. During the current year, however, steel demand has been flat due to inflationary pressures. Capital investment by Indian industries has severely curtailed and infrastructure spend is at very low levels.

The high fiscal deficit levels have cast doubts on the country’s ability to meet the budget goals. Price pressures remain elevated and infrastructure output growth has further slowed down. The domestic demand-driven economy has been steadily slowing down and federal revenue receipts have been severely impacted. Contraction in key sectors of the economy, namely, natural gas, cement, coal and infrastructure are reflected in weakening industrial activity.

The growth of capital goods sector is vital to the fortunes of the steel industry. High levels of investment in the capital goods sector are crucial for industrial growth. The dip in index of Industrial Production and the current inflationary pressures have resulted in slow growth of the capital goods sector during last few months. Thrust on infrastructure spending is essential to revive the growth pattern in the capital goods sector in the coming months.

The frequent increase in lending rates, made with the object to contain inflation, have resulted in a high cost of capital. Indian steel industry faces the critical dilemma of increasing cost of funds, which tends to impact margins as well as capital expenditure plans.

INDIAN STEEL INDUSTRY: ROAD AHEAD

Indian crude steel production is expected to grow at a compounded annual growth rate (CAGR) of around 10% during 2010-2013, according to recent research reports. Additionally, initiatives taken by the Government to boost economic growth by infusing funds in key industries, such as, construction, infrastructure, automobile and power are expected to provide an impetus for growth of the steel industry in future. The reports also state that steel consumption in India is expected to grow considerably in coming years.

Attracted by the growth prospect of the Indian steel industry, several global steel players have been planning to enter the market or have announced their expansion plans. Certain global players have entered into strategic partnerships or joint ventures with Indian steel majors to capitalise on their existing client base in the region.

MARKET OUTLOOK

It has been estimated that steel production in the second half of 2012 shall be in excess of production in the first half, for the following reasons:

• Once the current Eurozone crisis is resolved and business confidence is restored, capital spending on projects would accelerate.

• Chinese economy would stabilize by mid-year, in response to easing of credit policies.

• Reduced inflationary pressures and declining interest rates would spur the Indian economy back on its growth path.

• Construction activities in USA and European Union would pick-up, on the back of increased spending on infrastructure sector.

• Asian economies would stabilize and industrial production levels would continue to improve.

Steel consumption, however, is likely to be 1500 Million MTs during 2012, signifying a growth of less than 1% on year-to-year basis.

AWARDS AND ACCOLADES

The Company has been conferred with the following prestigious awards:

• Golden Peacock Award for Corporate Social Responsibility 2010

• FE-EVI Green Business Leadership Award 2009-10

• Safety Innovation Award winner 2010 by Institute of Engineers

• Dr. R. J. Rathi Award 2010 on Environment and Pollution Control in Industries

• Greentech Safety Award in 2010

• India Manufacturing Award – Gold Certificate 2009

• Special Commendation for Golden Peacock Award for Excellence in Corporate Governance 2009

• CII Exim Bank Award for Business Excellence 2008 – Commendation for Strong Commitment to Excel

• Amity HR Growth Award 2008

• Golden Peacock National Training Award 2008

• QCFI Convention at Chapter and National Level Conventions –Par Excellence Kaizen Award

• India Manufacturing Excellence Award-2007 for Gold Category 2007

• Good Green Governance Award 2007

• Golden Peacock National Training Award 2007

• TPM Excellence Award - Level 1

• Golden Peacock Environment Management Award-2006

• Safety Innovation Award 2006

• Golden Peacock Award for Corporate Social Responsibility 2005

• Excellence Kaizen Award 2005

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 30^TH JUNE, 2012

(Rs. in Millions)

PARTICULAR	QUARTER ENDED		YEAR ENDED
	30.06.2012	31.03.2012	30.06.2012
Income from Operations
Net Sales/Income from Operations (Net of Excise Duty)	28553.700	27210.100	107241.200
Other Operating Income	1176.900	1064.900	3799.900
Total income from operations (net)	29730.600	28275.000	111041.100
Expenses
Cost of materials consumed	19580.100	17648.800	73238.300
Cost of traded power	464.300	498.400	962.800
Changes in inventories of finished goods and work-in-progress	(1464.500)	1257.100	467.200
Power & Fuel Cost	5198.700	4682.700	18970.000
Employee benefits expense	656.400	533.400	2608.600
Depreciation and amortization expense	1617.900	1570.800	6268.300
Other expenses	1878.400	1703.000	7104.700
Total Expenses	27931.300	27894.200	109619.900
Profit / (Loss) from Operations before Other Income , finance costs and Exceptional items	1799.300	380.800	1421.200
Other Income	1136.400	1015.700	4242.400
Profit / (Loss) from ordinary activities before finance costs and Exceptional Items	2935.700	1396.500	5663.600
Finance costs	2557.400	2680.000	10760.000
Profit / (Loss) from ordinary activities after finance costs but before Exceptional Items	378.300	(1283.500)	(5096.400)
Exceptional Items	3387.700	129.400	5864.600
Profit / (Loss) from ordinary activities before tax	(3009.400)	(1412.900)	(10961.000)
Tax Expenses
- Current Tax	--	--	--
- Deferred Tax Charge/ (Credit)	(7791.800)	--	(7791.800)
Net Profit/(Loss) from ordinary activities after tax	4782.400	(1412.900)	(3169.200)
Profit on disposal / cessation of subsidiary	--	--	--
Net Profit/(Loss) for the Period	4782.400	(1412.900)	(3169.200)
Paid-Up Equity Share Capital (Face Value of Rs. 10/- each)	25161.400	23861.100	25161.400
Reserves excluding Revaluation Reserves	--	--	(26190.900)
Earnings Per Share (EPS) (of Rs.10/- each) (not annualized)
Basic	1.92	(0.57)	(1.27)
Diluted	1.92	(0.57)	(1.27)
Public shareholding
- Number of shares	846365566	716334195	846365566
- Percentage of shareholding	33.63	30.01	33.63
Promoters and Promoter Group shareholding
a) Pledged/ Encumbered
- Number of shares	477730463	477730463	477730463
- Percentage of shares (as a % of the total shareholding of Promoters and Promoter group)	28.60	28.60	28.60
- Percentage of shares (as a % of the total share capital of the Company)	18.98	20.02	18.98
b) Non-Encumbered
- Number of shares	1192734472	1192734472	1192734472
- Percentage of shares (as a % of the total shareholding of Promoters and Promoter group)	71.40	71.40	71.40
- Percentage of shares (as a % of the total share capital of the Company)	47.39	49.97	47.39

INVESTOR COMPLAINTS	3 MONTHS ENDED 30.06.2012
Pending at the beginning of the quarter	--
Received during the quarter	69
Disposed of during the quarter	69
Remaining unresolved at the end of the quarter	--

NOTE:

1. a) The Auditors in their audit report on the Company’s financial statements for the year ended 30th June, 2012 and their limited review report on the Company’s unaudited financial results for the quarter ended 31st March, 2012 have drawn attention to their inability to express an opinion on the recognition of net Deferred Tax Asset (DTA) of Rs. 20879.400 Millions and Rs. 13087.600 Millions up to 30th June, 2012 and 31st March, 2011 respectively.

Effective 1st April, 2011, the Company had ceased recognition of additional DTA. Deferred Tax Asset of Rs. 7791.800 Millions has been recognised during the year for the period from 1st April, 2011 to 30th June, 2012 and net DTA as on 30th June, 2012 stands at Rs. 20879.400 Millions. There are carried forward unabsorbed depreciation and business losses as at the Balance Sheet date. In view of various measures taken by the Company for enhancing operating efficiency, tie-up of reliable alternate sources of power and critical inputs, setting-up of crucial projects aimed at achieving raw material integration and major savings in input costs as well as the future profitability projections, the Company is virtually certain that there would be sufficient taxable income in future, to claim the above tax credit.

b) The financial results for the current year have been adversely impacted due to steep and significant depreciation in the value of Indian Rupee (INR) against US Dollar (USD) and other foreign currencies as well as due to adverse market conditions. However, the Company has taken various measures for achieving operational efficiencies and further it also expects to have significant savings in raw material and energy costs in view of various ongoing projects. The Company has also chalked out revised turnaround strategies which would enable generation of operational surpluses and adequate cash flows to meet its requirement of additional funds in the near future, out of internal accruals. Accordingly, these financial statements have been drawn up as per the going concern assumption, which is appropriate in the opinion of the Company.

2. The exceptional items include:

PARTICULARS	QUARTER ENDED	YEAR ENDED
	(Rs. in Millions)
	30.06.2012	30.06.2012
Net foreign exchange loss due to unusual fluctuation in the foreign currencies on operating balances/ forward exchange contracts (both realized and unrealized) and Mark to Market loss on derivative contract	1885.500	3790.900
Custom duty and interest payable on import of power plant by a wholly owned subsidiary, pursuant to a Corporate Guarantee under EPCG Scheme and in view of inability of the subsidiary to discharge the liability	0.400	707.400
Write-down of raw material / inventories due to, inter-alia, lower extraction / recovery and deterioration in quality	1066.700	1066.700
Provision against overdue and disputed security deposits paid towards leased property	246.900	246.900
Provision against doubtful loans and advances	188.200	188.200
Write back of an earlier provision made on unsecured loan of a wholly owned subsidiary	0.000	(135.500)
TOTAL	3387.700	5864.600

3. There were no extraordinary items, share of profit / (loss) of associates and minority interest during the respective periods reported above.

4. During the quarter, the Company has allotted 13,00,31,371 equity shares of face value Rs. 10 each, on a preferential basis, at a premium of Rs. 4.74 each to the CDR lenders of the company upon conversion of their loans into equity shares. This has resulted in increase in Share Capital by Rs. 1300.300 Millions and Securities Premium Account by Rs. 616.300 Millions aggregating to Rs. 1916.600 Millions on transfer of Rs. 1509.600 Millions from Share Capital Suspense and Rs. 407.000 Millions from secured term loan.

5. a) Other operating income includes a sum of Rs. 410.800 Millions and Rs. 858.000 Millions for the quarter and year ended 30th June, 2012 respectively (including regrouping of previous quarter), being sale of surplus units of power to Maharashtra State Electricity Distribution Co. Limited, which has been purchased from a captive unit and not utilized in the manufacturing process.

b) Other Income includes a sum of Rs. 1072.400 Millions and Rs. 3868.900 Millions for the quarter and year ended 30th June, 2012 respectively (Rs. 1495.400 Millions and Rs. 2198.200 Millions for the quarter and year ended 30th June, 2011 respectively), being gain arising on account of pre-payment on Net Present Value basis of a portion of deferred Value Added / Sales Tax liability, in terms of Section 94(2) of Maharashtra Value Added Tax Act 2002 read with Rule 84 of Maharashtra Value Added Tax Rules 2005.

6. The Company has identified Iron and Steel products as its sole operating segment and hence no further disclosure is required under Accounting Standard 17 ‘Segment Reporting’.

7. Previous period figures have been re-grouped / re-arranged wherever necessary.

8. Figures of the quarter ended 30th June, 2012 and 30th June, 2011 are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the relevant financial year. The Standalone and Consolidated Financial Results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 25th July, 2012.

STATEMENT OF ASSETS AND LIABILITIES

PARTICULAR	AS ON 30.06.2012
	(Rs. in Millions)
Shareholders' funds
Share capital	30015.600
Share Capital Suspense	0.000
Reserves and surplus	(18201.000)
Sub Total - Shareholders' funds	11814.600
Non-current liabilities
Long-term borrowings	60348.300
Other long-term liabilities	88.500
Long-term provisions	442.700
Sub Total - Non-current liabilities	60879.500
Current liabilities
Short-term borrowings	1809.600
Trade payables	38250.900
Other current liabilities	9089.800
Short-term provisions	65.800
Sub Total - Current liabilities	49216.100
TOTAL - EQUITY AND LIABILITIES	121910.200
ASSETS
Non-current assets
Fixed assets	70097.600
Non-current investments	1609.900
Deferred tax assets (net)	20879.400
Long-term loans and advances	1894.300
Other non-current assets	823.400
Sub Total - Non-current assets	95304.600
Current assets
Inventories	17132.500
Trade receivables	5911.700
Cash and bank balances	98.200
Short-term loans and advances	3204.800
Other current assets	258.400
Sub Total - Current assets	26605.600
TOTAL - ASSETS	121910.200

FIXED ASSETS:

v Leasehold Land

v Freehold Land

v Buildings

v Railways Sidings and Locomotives

v Plant and Machinery

v Vessels

v Electrical Installations

v Vehicles

v Furniture and Fixtures

v Office Equipment

v Computers

WEBSITE DETAILS:

PROFILE:

Subject is one of the integrated steel makers and the largest private sector producer of hot rolled coils in India. Set up as Nippon Denro Ispat Limited in May 1984 by founding chairman Mr M L Mittal, subject has steadily grown into a Rs.94000 millions company, assuming its position as flagship of the reputed Ispat Group. A corporate powerhouse with operations in iron, steel, mining, energy and infrastructure, the Group today figures among the top 20 business houses in the country.

Headquartered at Mumbai, subject employs a total of 3000 people and is the leader in the national speciality steel market. The company's core competency is the production of high quality steel, for which it employs cutting edge technologies and stringent quality standards. It produces world-class sponge iron, galvanized sheets and cold rolled coils, in addition to hot rolled coils, through its two state-of-the art integrated steel plants, located at Dolvi and Kalmeshwar in the state of Maharashtra.

The sprawling 1,200 acres Dolvi complex houses the 3 million tonne per annum hot rolled coils plant, that combines the latest technologies - the Conarc process for steel making and the compact strip process (CSP) - introduced for the first time in Asia.

The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant, which was commissioned in 1994 as the world's largest and most efficient gas-based single mega module plant. Moreover, the Dolvi complex is home to a 2 million tonne blast furnace and also boasts a mechanised multi-functional jetty situated nearby, that facilitates the automation of raw material handling. A new 2.24 million tonnes per annum sinter plant, a 1260 tonnes per day oxygen and a new electric arc furnace have also been commissioned at subject Dolvi.

Ispat is the only steel maker in India and among a few in the world to have total flexibility in choice of steel making route, be it the conventional blast furnace route or the electric arc furnace route. Its dual technology allows Ispat the freedom to choose its raw material feed, be it pig iron, sponge iron, iron ore, scrap or any combination of various feeds. It also has total flexibility in choosing its energy source, be it electricity, coal or gas.

The Kalmeshwar complex houses Ispat's 0.4 million tonnes cold rolling complex, which also includes the galvanized plain/ galvanized corrugated (GP/GC) lines and India's first colour coating mill.

Technology and innovation have always been the cornerstones of subject's quest for excellence and these state-of-the-art plants facilitate the company's mission to attain and sustain market leadership, through technological and product superiority.

The company's strengths lie in its integrated process management, knowledge management and control systems. And its seamless supply chain management systems further the efficient use of raw materials, while its staff of highly skilled engineers, technicians and managers with specialised domain knowledge, ensure the choice of the relevant technology and the ability to produce international quality products at a competitive price.

In line with its vision for the future, subject is expanding its HRC capacity to 3.6 million. Moreover, it aims to complete its vertical integration process, increase the proportion of high-grade and value-added steel products in its product mix and leverage the advantage the modern design and the size of the facilities offers.

With investments of over US $2 billion, subject is the seventh largest Indian private sector company in terms of fixed assets. It aims to consolidate its market leadership in the national specialty steel market by capitalizing on the proximity of its manufacturing facilities to major consumers of flat steel products in Maharashtra, while increasing its presence in international markets by using its convenient port location.

In the short span of time since its inception, Ispat Industries has steadily raised the bar - in terms of its relentless pursuit of technological advancement, unwavering focus on innovation, strident emphasis on quality products and its constant initiatives aimed at ensuring customer satisfaction. As it rapidly forges ahead on all these fronts, subject has successfully reinforced its position as market leader, while simultaneously making technological breakthroughs and setting even higher standards for itself.

MILESTONES

Since its inception, the JSW ISPAT Group has been moving from strength to strength, consistently breaking new grounds and spearheading new developments in iron and steel. JISL Has taken expansive technological strides to emerge as one of India’s leading manufacturers of quality steel products. In the process, the company and its parent Group have achieved many firsts in the steel sector and swept past a host of memorable milestones.

2010 - MERGER WITH JSW STEEL

On 21 December 2010 it was declared that JSW Steel will buy controlling interest in Ispat Industries at an enterprise value of $3 billion to emerge as India's largest producer of the commodity with an annual capacity of 14.3 million tonnes. The company will now be called JSW Ispat Steel Limited.

1952

Mr. M L Mittal, the founder chairman of the Ispat Group, begins his foray into the iron and steel business with the takeover of an ailing rolling mill in Calcutta, India. The plant is turned around and later sold off.

1953

A combination of technological vision and management leads Mr. M L Mittal to experiment with an electric arc furnace at a steel plant in Vizag, India. Spotting emerging trends in steel-making technology, he establishes nine such greenfield plants in India. Soon, he acquires the necessary licence and takes over TOR Steel.

1974

Mr. M L Mittal enters the international steel arena by setting up PT Ispat Indo in Indonesia. He christens his steel-making Group as ‘The Ispat Group’. In the Hindi language, ispat means steel.

1980

This decade witnesses a series of acquisitions around the world and hectic expansion in India. The Ispat Group takes over the Iron and Steel Company of Trinidad and Tobago, Sidemgical Del Balsar SA, Mexico, and additional units in Canada, Germany and Ireland. In India, the Group sets up the first thin gauge galvanized sheet unit, a specialty mini-mill to make rails and structurals - Ispat Profiles, and a cold rolling complex at Nagpur.

1984

Nippon Denro Ispat Limited was incorporated in 1984 and was granted the first Industrial License by Government of India for manufacturing Galvanised Plain/Corrugated Sheets.

1985

Nippon Denro Ispat Limited, now known as Ispat Industries (IIL), is established and it rapidly emerges as the largest manufacturer of galvanised steel products in the private sector.

1988

To better provide steel solutions to an increasingly sophisticated marketplace, Subject sets up a highly advanced cold rolling reversing mill, in collaboration with Hitachi of Japan, to manufacture a wide range of cold rolled carbon steel strips.

1988

Subject instals a colour coating line – the first of its kind in India – for the manufacture of pre-painted colour steel sheets.

1988

Nippon Denro Ispat Limited was granted Industrial License for Cold Rolled Sheets.

1994

Business interests within the Ispat Group are demarcated. The eldest son, Mr. L N Mittal continues to manage the international operations while Mr. Pramod Mittal and Mr. Vinod Mittal, the younger brothers focus on steel and other businesses in India.

1994

Subject commissions the world’s largest gas-based single mega module plant for manufacturing direct reduced iron (sponge iron), at its Maharashtra-based Dolvi plant. Within three months, the plant exceeds its capacity of 1 million tonnes per annum (MTPA) of high quality DRI.

1995

A 1.5 MTPA hot strip mill with Continuous Strip Processing (CSP) technology is installed at Dolvi. A mechanised multi-functional jetty situated close to the plant facilitates the automation of raw material handling.

1998

A world-class integrated steel plant for the production of hot rolled coils is launched, armed with cutting edge technologies, such as the Conarc Process for steel making and the Compact Strip Process, both introduced for the first time in Asia.

2000

The new millennium is witness to the erection and commissioning of a 2 MTPA blast furnace at the Dolvi steel complex in record time.

2003

» Blast Furnace commissioned

» Sponge iron capacity increased from 1.2 mtpa to 1.4 mtpa

2004

» Hot rolled coil steel-making capacity increased from 1.5 mtpa to 2.4 mtpa

 » Sponge iron capacity increased from 1.4 mtpa to 1.6 mtpa

2005

» Further expansion of Hot rolled coil steel capacity under implementation

PRESS RELEASE:

1^ST SEPTEMBER 2012

MERGER CATAPULTS JSW STEEL TO TOP LEAGUE IN INDIAN STEEL SECTOR

In December 2010. JSW Steel Limited ("JSW Steel") and Ispat Industries Limited, now renamed"" JSW Ispat Steel Limited ("JSW Ispat” took a historic step when JSW Steel invested Rs 21570.000 Millions in JSW Ispat and became the largest shareholder in JSW Ispat. Today, the two companies have cemented their alliance by announcing the merger of JSW Ispat with JSW Steel. The merger completes the integration of the two business and enables the full realization of strategic benefits resulting from the combination.

The Boards of Directors of JSW Steel and JSW Ispat, in their respective meetings held today, approved the merger proposal. The exchange ratio recommended by the Valuers and approved by both the boards is 1 (one) equity share of JSW Steel to be issued for every 72 [seventy two] equity shares of JSW Ispat.

Commenting on the merger, Mr. Sajjan Jindal, Chairman and Managing Director, JSW Steel said, "Merger of JSW Ispat with JSW Steel is an important step in our ongoing growth journey towards creating a world class global steel company. JSW Ispat brings several unique advantages and the merger will help in realization of integration benefits of the two companies.”

JSW ISPAT TURNAROUND

JSW Ispat has made significant progress in its turnaround journey since the acquisition by JSW Steel. A number of strategic and operational initiatives have been completed, and some are in progress:

• JSW Steel assisted in better sourcing of key production inputs especially power supplies from JSW Energy leading to improved profitability.

• Marketing strategies have been reworked leading to freight synergies and better realizations.

• The complexity previously arising from the financial imbalance at JSW Ispat at the time of acquisition was removed through timely equity infusion, debt refinancing and rationalization of working capital funding.

• JSW Ispat was brought out of CDR through enhanced ability to pay interest. Currently, the company is EBITDA positive.

• Commissioning of 55MW power plant, lime calcinations plant and railway siding by June 2013 is expected to give significant benefits.

• JSW Steel continues to sustain the turnaround through cost reduction initiatives in the form of setting up of 1 MTPA coke oven and a 4 MTPA pellet plant expected to be commissioned in FY 2014 to ensure dedicated supplies of these key inputs at competitive costs.

As a result of the above milestones, JSW Ispat Is now stabilized and is poised to be profitable on completion of the above mentioned projects.

MERGER BENEFITS AND SYNERGIES:

The integration of JSW Ispat into JSW Steel is expected to bring significant strategic advantages with it, particularly alternative steel making technologies, ability to achieve swift capacity expansion, shore based facility and Pan India expansion of market reach. The merger completes the integration and aims to capture full value of the combination:

SCALE AND STRATEGIC DIVERSIFICATION:

• Catapults JSW Steel to become one of India's leading steel companies in terms of installed capacity.

• Economies of scale.

ENHANCED MARKET REACH & LOCATION ADVANTAGES:

• De-risk single location upstream profile.

• Leverage each other's marketing and distribution platforms to expand market reach.

• Reduca marketing, general and administration overheads via better utilization of infrastructure and elimination of redundancies.

STRONG TECHNOLOGY PLATFORM:

• House multiple modern steel-making technologies under one roof.

• Enable flexible production processes.

FINANCIAL BENEFITS:

• Realize significant financial benefits via accelerated utilization of unabsorbed tax losses at JSW Ispat as well as optimal use of depreciation on further capital investments.

• Improve JSW Ispat's cost structure via faster implementation of several plant integration initiatives.

• Potential to reduce cost of financing.

COMPOSITE SCHEME OF ARRANGEMENT AND AMALGAMATION (SCHEME):

• Under the terms of the proposed Scheme of merger, equity shareholders of JSW Ispat will receive 1 (One) equity share in JSW Steel of face value of Rs 10 each for every 72 [seventy two] equity shares In JSW Ispat held by them.

• JSW Steel's shareholding in JSW Ispat will stand cancelled under the Scheme.

• JSW Steel will issue 1.86 crore new equity shares, thereby increasing its outstanding shares to Rs.2417.200 Millions and its equity capital to Rs. 2417.200 Millions. JSW Steel will also issue 48.54 crore new 0.01 % non convertible cumulative redeemable preference shares to the preference shareholders of JSW Ispat increasing its preference share capital to Rs. 7644.400 Millions.

• In the post merger equity share capital, the promoters of JSW Steel will own 35.12% in the merged entity, 14.92% shall be held by JFE Steel International Europe BV (herein referred to as “JFE Holdings:) and the remaining 49.96% will be held by the public shareholders

• The Downstream units of JSW Steel [Vasind and Tarapur] and Downstream unit of JSW Ispat [Kalmeshwar] will be transferred to a wholly owned subsidiary of JSW Steel as a part of the Scheme.

• The appointed data of the Scheme will be July 1, 2012.

APPROVALS AND TIMELLNES OF THE TRANSACTION:

The scheme is subject to approval of the Hon'able High Court, Lenders, Creditors, Preference Shareholders, Equity Shareholders, BSE, NSE, Competition Commission of India and other relevant approving authorities.

JSW Steel expects to complete the process of merger by the end of this financial year.

INDEPENDENT ADVISORS TO THE TRANSACTION:

• Independent Valuers: KPMG India Private Limited for JSW Steel and Price Waterhouse & Co. for JSW Ispat

• Fairness Opinion: Enam Securities Private Limited for JSW Steel and Citigroup Global Markets India Private Limited for JSW Ispat

• Legal Advisor: Amerchand and Mangaldas and Suresh A Shroff and Company

ABOUT JSW STEEL:

JSW Steel is a part of the diversified $10 bn JSW Group, which has presence in Steel, Energy, Infrastructure, Cement, Aluminium and IT segments. Currently, JSW Steel is the 2^nd largest integrated steel company in India with an installed steelmaking capacity of 11 MTPA. It is the only steel company with strategic presence in both Southern and Western regions of India, operating through four manufacturing facilities. JSW Steel's plant at Vijaynagar is one the largest single location steel producing facility in the country with a capacity of 10 MTPA. JSW Steel boasts of a strong product assortment covering the entire gall1Wt of flat and long steel products manufactured through upscale technology in the forn of Corex and Blast furnaces. JSW Steel also has an operating strategic partnership with Japan based JFE Corporation to share technological competence and gain access to the automotive steel making technology. The company has international presence in Chile, US and Mozambique for its Iron ore, coking coal and plate / pipe mill operations.

ABOUT JSW ISPAT:

JSW Ispat is one the foremost producers of Hot Rolled Coils in India. It owns two manufacturing unite -a 3.3 MTPA integrated steel plant in Dolvi and another 0.3 MTPA downstream unit at Kalmeshwar. The manufacturing facility at Dolvi also possesses a captive Jetty. JSW Ispat boasts of a blend of iron producing capabilities through a 2 MTPA Blast furnace and 1.6 MTPA DRI. The product portfolio consists of HRC, CRC, Colour coated sheets etc. It possesses a strong technological proficiency in terms of Twin Shell ConArc Furnace and Thin Slab Casting Technology. JSW Ispat was set up in 1984 as Nippon Denro Ispat Limited It was the flagship company of the lspat Group. JSW Steel acquired a stake in the company in December 2010, post which it was renamed as JSW Ispat Steel Limited.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.74
UK Pound	1	Rs.89.02
Euro	1	Rs.72.48

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.