MIRA INFORM REPORT

Report Date :

22.09.2012

IDENTIFICATION DETAILS

Name :	ESSAR STEEL INDIA LIMITED (w.e.f.18.01.2012)
Formerly Known As :	ESSAR STEEL LIMITED
Registered Office :	27Km., Surat Hazira Road, Hazira, Surat – 394 270, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.06.1976
Com. Reg. No.:	04-013787
Capital Investment / Paid-up Capital :	Rs.25710.000 Millions
CIN No.: [Company Identification No.]	U27100GJ1976FLC013787
PAN No.: [Permanent Account No.]	AAACE1741P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Selling of Steel Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 422100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Essar Group it is a reputed company having good track record. In the current year company incurred a huge loss. However, networth of the company appears to be strong and fundamentally company is healthy. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealing at usual trade terms and conditions.

NOTES :

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

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	A- (Long term rating)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	March, 2012

Rating Agency Name	CARE
Rating	A2+ (Short term rating
Rating Explanation	Having strong degree of safety regarding timely payment of financial obligation it carry low credit risk.
Date	March, 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.

INFORMATION DECLINED BY

Management Non Co-operative (Name not disclosed)

LOCATIONS

Registered Office :	27Km., Surat Hazira Road, Hazira, Surat – 394 270, Gujarat, India
Tel. No.:	91-261-2872400/ 6682400
Fax No.:	91-261-2872400/ 6682796
E-Mail :	rakesh.darji@essar.com dilip.deokar@essar.com promod.s@essar.com steel@essar.com webmaster@essar.com
Website :	www.essar.com
Corporate Office :	Essar House, 11, Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400 034, Maharashtra, India
Tel. No.:	91-22-66601100
Fax No.:	91-22-66669426
Marketing and Sales Office :	6^th Floor, Tower-2, Equinox Business Park (Peninsula Techno Park) Off Bandra Kurla Complex, LBS Marg, Kurla (West), Mumbai - 400 070, Maharashtra, India
Tel. No.:	91-22-67335000
Fax No.:	91-22-67082189
E-Mail :	steel@essar.com
Plant 1 :	Vishakhapatnam Scindia Road, Near Flyover, Visakhapatnam – 530 004, Andhra Pradesh, India
Tel. No.:	91-891-2523213
Fax No.:	91-891-2559383/ 2556907
Plant 2 :	473 A and B Sector 3, Pithampur Industrial Area, Pithampura – 434 774, District Dhar, Madhya Pradesh, India

DIRECTORS

As on 30.09.2010

Name :

Mr. Venkataraman Venkatesan

Designation :

Director

Address :

F-401, The Atrium, Old 49, New 22, Kalashetra Road, Thiruvamiyu, Chennai – 600 041, Tamilnadu, India

Date of Birth/Age :

01.10.1939

Date of Appointment :

28.11.1991

DIN No.:

00004010

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L99999MH1976PLC034721	ESSAR INVESTMENTS LIMITED	Director	13-09-91	13-09-91	-	Active	NO
2	L99999TN1984PLC075902	INDIA SECURITIES LIMITED	Director	28-09-91	28-09-91	-	Active	NO
3	U40100GJ1991PLC064824	ESSAR POWER LIMITED	Director	30-10-91	30-10-91	20-05-09	Active	NO
4	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	28-11-91	28-11-91	-	Active	NO
5	U30006TN1981PLC008616	ESSAR TELEHOLDINGS LIMITED	Director	24-01-96	24-01-96	18-09-09	Active	NO
6	U99999MH1989PLC053280	ESSAR PROJECTS (INDIA) LIMITED	Director	01-03-01	01-03-01	-	Active	NO
7	U72200MH1992PLC064816	ESSAR INFORMATION TECHNOLOGY LIMITED	Director	21-06-01	21-06-01	-	Active	NO
8	U31101GJ1995PLC065146	BHANDER POWER LIMITED	Director	30-06-04	30-06-04	20-05-09	Active	NO
9	L65921TN1985PLC049092	LANCOR HOLDINGS LIMITED	Director	30-09-06	28-12-05	-	Active	NO
10	U65999MH2005PLC155191	EDELWEISS TRUSTEE SERVICES LIMITED	Director	12-09-07	01-11-06	-	Active	NO
11	L29221TN1956PLC000204	BEST AND CROMPTON ENGG. LIMITED	Director	22-09-07	31-01-07	-	Active	NO
12	U40106TN2007PLC062252	ESSAR POWER TAMILNADU LIMITED	Director	05-02-07	05-02-07	20-05-09	Active	NO
13	U27310KA2006PTC040237	AMW - MGM FORGINGS PRIVATE LIMITED	Director	29-07-09	19-05-08	21-04-11	Active	NO
14	U11201GJ2002PLC041192	ASIA MOTORWORKS LIMITED	Additional director	19-05-08	19-05-08	-	Active	NO
15	U65923TN2007PLC085016	ESSAR CAPITAL LIMITED	Additional director	17-06-08	17-06-08	18-09-09	Active	NO
16	U40100DL2005PLC201961	ESSAR POWER M P LIMITED	Director	30-07-09	04-10-08	-	Active	NO
17	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	31-07-09	31-10-08	05-07-11	Active	NO
18	U74900GJ2007PLC066273	ESSAR POWER GUJARAT LIMITED	Director	11-08-10	04-09-09	-	Active	NO
19	U28920TN1999PLC043385	BEST AND CROMPTON ENGINEERING PROJECTS LIMITED	Additional director	29-03-10	29-03-10	-	Active	NO
20	U40300GJ2006PLC063146	ESSAR POWER HAZIRA LIMITED	Director	06-08-11	17-08-10	-	Active	NO
21	U31101DL2005PLC208862	ESSAR POWER (ORISSA) LIMITED	Director	19-08-11	17-08-10	-	Active	NO
22	U67190MH2006PLC163842	ASIA MOTORWORKS HOLDINGS LIMITED	Director	08-06-11	08-06-11	-	Active	NO
23	U65993MH2006PTC164007	ARUM INVESTMENTS PRIVATE LIMITED	Director	02-02-12	02-02-12	-	Active	NO

Name :

Mr. Vikram Harishchandra Amin

Designation :

Director

Address :

No. 5A, Plot No.5, K A G Khan Marg, Worli Sea Face, Mumbai - 400 018, Maharashtra, India

Date of Birth/Age :

07.12.1958

Date of Appointment :

17.12.2011

DIN No.:

00008119

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	17-12-11	31-10-01	-	Active	NO
2	U31101GJ1995PLC065146	BHANDER POWER LIMITED	Director	17-08-04	17-08-04	30-04-09	Active	NO
3	U40300GJ2006PLC063146	ESSAR POWER HAZIRA LIMITED	Director	06-08-11	16-10-06	-	Active	NO
4	U27106MH2007PLC172940	ESSAR STEEL HYPERMARTS LIMITED	Director	08-08-07	08-08-07	-	Active	NO
5	U40100DL2005PLC201961	ESSAR POWER M P LIMITED	Director	30-07-09	04-10-08	-	Active	NO
6	U27100GJ2005FLC046055	ESSAR STEEL KARNATAKA LIMITED	Additional director	12-01-09	12-01-09	-	Active	NO
7	U74900GJ2007PLC066273	ESSAR POWER GUJARAT LIMITED	Director	11-08-10	04-09-09	-	Active	NO
8	U31101DL2005PLC208862	ESSAR POWER (ORISSA) LIMITED	Director	19-08-11	17-08-10	-	Active	NO

Name :

Mr. Govindaraghavan Venkatraman

Designation :

Director

Address :

171 and 172 Tower B, Kalpataru Residency, Opposite Cine Planet, Kamani Marg, Sion (East), Mumbai – 400 022, Maharashtra, India

Date of Birth/Age :

16.07.1945

Date of Appointment :

29.01.2007

DIN No.:

00008683

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	29-01-07	29-10-03	-	Active	NO
2	U72200MH1992PLC064816	ESSAR INFORMATION TECHNOLOGY LIMITED	Director	09-12-03	09-12-03	-	Active	NO
3	U31101GJ1995PLC065146	BHANDER POWER LIMITED	Director	17-08-04	17-08-04	30-04-09	Active	NO
4	U27100GJ2005FLC046273	ESSAR STEEL (HAZIRA) LIMITED	Director	17-06-05	17-06-05	-	Amalgamated	NO
5	U27100GJ2005FLC046274	ESSAR STEEL CHHATTISGARH LIMITED	Director	17-06-05	17-06-05	18-12-08	Active	NO
6	U27100GJ2005PLC046272	ESSAR STEEL JHARKHAND LIMITED	Director	17-06-05	17-06-05	18-12-08	Active	NO
7	U31101DL2005PLC211274	ESSAR POWER (JHARKHAND ) LIMITED	Director	19-10-05	19-10-05	30-04-09	Active	NO
8	U31101DL2005PLC208862	ESSAR POWER (ORISSA) LIMITED	Director	19-08-11	19-10-05	-	Active	NO
9	U13100GJ2006PLC047506	ESSAR MINERAL RESOURCES LIMITED	Additional director	08-07-10	13-01-06	31-08-10	Active	NO
10	U74210MH2006PLC159709	JUBILEE SHIPPING AND LOGISTICS HOLDINGS LIMITED	Director	14-02-06	14-02-06	29-06-07	Active	NO
11	U27104MH2006PLC162609	ESSAR STEEL ORISSA LIMITED	Director	14-06-06	14-06-06	-	Amalgamated	NO
12	U25199GJ2007PLC050164	HAZIRA PIPE MILL LIMITED	Director	06-03-07	06-03-07	18-12-08	Amalgamated	NO
13	U27100GJ2005FLC046055	ESSAR STEEL KARNATAKA LIMITED	Director	02-05-07	02-05-07	17-06-08	Active	NO
14	U74900GJ2007PLC066273	ESSAR POWER GUJARAT LIMITED	Director	11-08-10	18-02-08	-	Active	NO
15	U40100DL2005PLC201961	ESSAR POWER M P LIMITED	Director	29-09-08	18-02-08	-	Active	NO
16	U70100MH2006FLC159272	ESSAR SEZ HAZIRA LIMITED	Additional director	17-06-08	17-06-08	14-01-09	Active	NO
17	U65923TN2007PLC085016	ESSAR CAPITAL LIMITED	Additional director	17-06-08	17-06-08	01-08-09	Active	NO
18	L65990TN2005PLC071791	ESSAR SECURITIES LIMITED	Director	14-08-09	31-03-09	-	Active	NO
19	U65993MH2007PLC174810	ETHL COMMUNICATIONS HOLDINGS LIMITED	Additional director	13-04-09	13-04-09	-	Amalgamated	NO
20	U74999TN2008PTC067735	ESSAR CAPITAL FINANCE PRIVATE LIMITED	Additional director	31-10-09	31-10-09	-	Active	NO
21	U51900MH2006PLC160647	THE MOBILESTORE LIMITED	Director	30-09-10	17-05-10	-	Active	NO
22	L65990MH1984PLC033128	FRONTIER LEASING AND FINANCE LIMITED	Additional director	12-08-10	12-08-10	-	Active	NO
23	U40300GJ2006PLC063146	ESSAR POWER HAZIRA LIMITED	Director	06-08-11	17-08-10	-	Active	NO
24	U74140MH2010PTC207439	PADMARAG PROJECT AND CORPORATE SERVICES PRIVATE LIMITED	Director	20-09-10	20-09-10	-	Active	NO
25	U13100WB2010PTC140900	GREEN VALLEY ENERGY VENTURES PRIVATE LIMITED	Director	28-12-10	28-12-10	10-01-12	Active	NO
26	U11201GJ2002PLC041192	ASIA MOTORWORKS LIMITED	Additional director	28-01-11	28-01-11	04-05-11	Active	NO
27	U25209MH2007PTC168369	KRIS FLEXIPACKS PRIVATE LIMITED	Director	23-07-11	01-04-11	-	Active	NO
28	U74999MH2011PLC217380	ESSAR SERVICES INDIA LIMITED	Director	12-05-11	12-05-11	21-01-12	Active	NO
29	U99999MH1989PLC053280	ESSAR PROJECTS (INDIA) LIMITED	Director	09-09-11	18-07-11	-	Active	NO
30	L99999TN1984PLC075902	INDIA SECURITIES LIMITED	Additional director	09-08-11	09-08-11	-	Active	NO
31	U74140MH2003PTC141815	MAHATI CORPORATE SERVICES PRIVATE LIMITED	Additional director	01-02-12	01-02-12	-	Active	NO
32	U65921MH2008PLC182234	AMW FINANCE LIMITED	Additional director	16-02-12	16-02-12	-	Active	NO

Name :

Mr. Kiznagar Venkatesan Krishnamurthy

Designation :

Director

Address :

174, Kalpataru Residency Tower, Opposite Cine Planet Road No.8, Sion (East), Mumbai – 400 022, Maharashtra, India

Date of Birth/Age :

08.05.1943

Date of Appointment :

31.10.2006

DIN No.:

00025075

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67190MH1999PLC119009	CENTRUMDIRECT LIMITED	Director	17-07-01	17-07-01	-	Active	NO
2	U65999MH2002PLC134884	ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED	Director	12-07-03	12-07-03	26-07-10	Active	NO
3	U65999TN2003PLC052058	SUNDARAM TRUSTEE COMPANY LIMITED	Director	01-01-09	08-12-03	26-10-10	Active	NO
4	L65990MH1994PLC084098	RAP MEDIA LIMITED	Director	01-04-04	01-04-04	25-10-08	Active	NO
5	L65990MH1977PLC019986	CENTRUM CAPITAL LIMITED	Director	14-04-04	14-04-04	-	Active	NO
6	L74950MH1982PLC028947	ESSEL PROPACK LIMITED	Director	28-01-05	28-01-05	-	Active	NO
7	U51909AP2000PTC034653	BALAN NATURAL FOOD PRIVATE LIMITED	Director	08-02-05	08-02-05	-	Active	NO
8	L27102MH1994PLC152925	JSW STEEL LIMITED	Nominee director	14-07-05	14-07-05	11-12-06	Active	NO
9	U65191PN1943PLC007308	THE RATNAKAR BANK LIMITED	Director	09-09-06	10-05-06	19-06-07	Active	NO
10	U65993MH2006PLC162533	ESSEL-CENTRUM HOLDINGS LIMITED	Director	08-07-06	08-07-06	24-03-09	Active	NO
11	L99999MH1962PLC012538	BOROSIL GLASS WORKS LIMITED	Director	17-08-07	29-09-06	-	Active	NO
12	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	31-10-06	31-10-06	-	Active	NO
13	L24100MH1972PLC016149	THIRUMALAI CHEMICALS LIMITED	Director	16-07-07	29-01-07	-	Active	NO
14	U74950TN1989PTC046718	PACKAGING INDIA PRIVATE LIMITED	Director	28-04-07	01-02-07	-	Active	NO
15	U99999MH1939PLC002994	V V F LIMITED	Director	26-09-08	30-04-08	26-11-11	Active	NO
16	L72200PN1990PLC059594	KPIT CUMMINS INFOSYSTEMS LIMITED	Director	29-08-08	30-05-08	18-01-10	Active	NO
17	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	27-09-08	20-06-08	-	Active	NO
18	L11100GJ1989PLC032116	ESSAR OIL LIMITED	Director	24-09-10	22-01-10	-	Active	NO
19	U29299MH1975PLC193684	LOOP MOBILE (INDIA) LIMITED	Director	30-09-11	24-03-11	23-12-11	Active	NO
20	U72200DL1997PLC085754	LOOP TELECOM LIMITED	Director	30-08-11	24-03-11	23-12-11	Active	NO
21	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED	Director	09-09-11	23-05-11	-	Active	NO

Name :

Mr. Jitender Balakrishnan

Designation :

Director

Address :

A-1, Flat NO.12, Tanna Residency, Prabhadevi, Mumbai - 400 025, Maharashtra, India

Date of Birth/Age :

08.05.1949

Date of Appointment :

30.09.2010

DIN No.:

00028320

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65999DL2000PLC103177	IDBI HOMEFINANCE LIMITED	Nominee director	11-09-03	11-09-03	17-08-07	Amalgamated	NO
2	L65190MH2004GOI148838	IDBI BANK LIMITED	Whole-time director	14-03-06	14-03-06	31-05-09	Active	NO
3	U65990MH1993GOI075578	IDBI CAPITAL MARKET SERVICES LIMITED	Director	05-09-08	13-09-07	02-08-10	Active	NO
4	U72200MH2000GOI124665	IDBI INTECH LIMITED	Director appointed in casual vacancy	28-09-07	28-09-07	25-06-10	Active	NO
5	U66030KA2007PLC043362	BHARTI AXA GENERAL INSURANCE COMPANY LIMITED	Director	21-06-10	01-06-10	-	Active	NO
6	U66010MH2005PLC157108	BHARTI AXA LIFE INSURANCE COMPANY LIMITED	Director	25-06-10	01-06-10	-	Active	NO
7	L31400WB1986PLC091621	USHA MARTIN LIMITED	Director	27-07-10	10-06-10	-	Active	NO
8	U40101KA1986PLC007404	BHORUKA POWER CORPORATION LIMITED	Director	21-09-10	22-06-10	-	Active	NO
9	U65990GJ1991PLC064603	ADITYA BIRLA FINANCE LIMITED	Director	23-09-11	20-07-10	-	Active	NO
10	L25209UR1984PLC011596	POLYPLEX CORPORATION LIMITED	Director	25-09-10	20-07-10	-	Active	NO
11	L24117WB1962PLC025584	BINANI INDUSTRIES LIMITED	Director	27-06-11	27-07-10	-	Active	NO
12	L65999MH1986PLC147981	IL AND FS INVESTMENT MANAGERS LIMITED	Director	27-07-11	30-07-10	-	Active	NO
13	L27100MH1973PLC016617	SARDA ENERGY AND MINERALS LIMITED	Director	25-09-10	30-07-10	-	Active	NO
14	L17120MH1990PLC058361	S KUMARS NATIONWIDE LIMITED	Director appointed in casual vacancy	30-07-10	30-07-10	-	Active	NO
15	L24111UR1983PLC009097	INDIA GLYCOLS LIMITED	Director	27-09-11	13-08-10	-	Active	NO
16	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	30-09-10	25-08-10	-	Active	NO
17	U99999DL2001PLC175768	MAGUS ESTATES AND HOTELS LIMITED	Director	28-09-10	03-09-10	-	Active	NO
18	L24302RJ1979PLC001948	SHREE RAJASTHAN SYNTEX LIMITED	Director	19-09-11	19-09-11	-	Active	NO
19	U74999MH2011PLC217380	ESSAR SERVICES INDIA LIMITED	Additional director	21-01-12	21-01-12	-	Active	NO
20	U45202MH2008PTC180525	EQUINOX REALTY AND INFRASTRUCTURE PRIVATE LIMITED	Additional director	21-02-12	21-02-12	-	Active	NO

Name :

Mr. Jatinder Dinanath Mehra

Designation :

Director

Address :

Block C-1/36, Safarjang Development Area, New Delhi – 110 016, India

Date of Birth/Age :

03.03.1939

Date of Appointment :

25.06.1997

DIN No.:

00042789

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	25-06-97	25-06-97	-	Active	NO
2	L27110GJ1989PLC011748	STEELCO GUJARAT LIMITED	Director	24-09-97	24-09-97	-	Active	NO
3	U72200DL1999PLC099481	MICROGENETICS SYSTEMS LIMITED	Director	26-04-99	26-04-99	-	Active	NO
4	U27100GJ2005FLC046274	ESSAR STEEL CHHATTISGARH LIMITED	Director	17-06-05	17-06-05	-	Active	NO
5	U27100GJ2005PLC046272	ESSAR STEEL JHARKHAND LIMITED	Director	17-06-05	17-06-05	-	Active	NO
6	U27100GJ2005FLC046273	ESSAR STEEL (HAZIRA) LIMITED	Director	17-06-05	17-06-05	-	Amalgamated	NO
7	U31101DL2005PLC211274	ESSAR POWER (JHARKHAND ) LIMITED	Director	19-10-05	19-10-05	30-04-09	Active	NO
8	U31101DL2005PLC208862	ESSAR POWER (ORISSA) LIMITED	Director	19-08-11	19-10-05	-	Active	NO
9	U13100GJ2006PLC047506	ESSAR MINERAL RESOURCES LIMITED	Director	13-01-06	13-01-06	-	Active	NO
10	U27100GJ2005FLC045786	HAZIRA PLATE LIMITED	Director	10-03-06	10-03-06	-	Amalgamated	NO
11	U01010MP2006PLC018586	MAHAN COAL LIMITED	Director	25-04-06	25-04-06	09-06-08	Active	NO
12	U27104MH2006PLC162609	ESSAR STEEL ORISSA LIMITED	Director	14-06-06	14-06-06	-	Amalgamated	NO
13	U25199GJ2007PLC050164	HAZIRA PIPE MILL LIMITED	Additional director	18-12-08	18-12-08	-	Amalgamated	NO
14	U27100GJ2005FLC046055	ESSAR STEEL KARNATAKA LIMITED.	Additional director	12-01-09	12-01-09	16-01-09	Active	NO
15	U40100DL2005PLC201961	ESSAR POWER M P LIMITED	Director	10-08-10	02-09-09	-	Active	NO
16	U74900GJ2007PLC066273	ESSAR POWER GUJARAT LIMITED	Director	11-08-10	04-09-09	-	Active	NO
17	U40300GJ2006PLC063146	ESSAR POWER HAZIRA LIMITED	Director	06-08-11	17-08-10	-	Active	NO
18	U13100WB2010PTC140900	GREEN VALLEY ENERGY VENTURES PRIVATE LIMITED	Director	20-10-10	20-10-10	-	Active	NO
19	U27100MH2011PLC217214	PARADEEP STEEL COMPANY LIMITED	Director	09-05-11	09-05-11	-	Active	NO
20	U74999MH2011PLC217380	ESSAR SERVICES INDIA LIMITED	Additional director	21-01-12	21-01-12	-	Active	NO

Name :

Mr. Shashikant Nandkishore Ruia

Designation :

Director

Address :

67-A, Walkeshwar Road, Opposite, Birla School, Walkeshwar, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

23.12.1943

Date of Appointment :

01.06.1976

DIN No.:

00047050

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U26101TN1975PTC006929	AGBROS GLASS WORKS (INDIA) PRIVATE LIMITED	Director	10-06-75	10-06-75	10-04-78	Active	NO
2	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	01-06-76	01-06-76	-	Active	NO
3	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	20-12-84	20-12-84	-	Active	NO
4	L11100GJ1989PLC032116	ESSAR OIL LIMITED	Director	13-09-91	13-09-91	-	Active	NO
5	L99999TN1984PLC075902	INDIA SECURITIES LIMITED	Director	28-09-91	28-09-91	22-06-11	Active	NO
6	U67190TN1995PLC029804	KARTHIK FINANCIAL SERVICES LIMITED	Director	31-01-00	31-01-00	31-12-05	Active	NO
7	U99999MH1989PLC053280	ESSAR PROJECTS (INDIA) LIMITED	Director	01-03-01	01-03-01	-	Active	NO
8	U40100GJ1991PLC064824	ESSAR POWER LIMITED	Director	23-12-04	23-12-04	-	Active	NO
9	U27100GJ2005FLC046055	ESSAR STEEL KARNATAKA LIMITED.	Director	11-05-05	11-05-05	02-05-07	Active	NO
10	U35111GJ1993FLC053434	VADINAR OIL TERMINAL LIMITED	Director	28-09-05	28-09-05	17-05-10	Active	NO
11	U27100GJ2005FLC046273	ESSAR STEEL (HAZIRA) LIMITED	Director	01-02-06	01-02-06	17-05-10	Amalgamated	NO
12	U27100GJ2005FLC045786	HAZIRA PLATE LIMITED	Director	10-03-06	10-03-06	18-12-08	Amalgamated	NO
13	U45201MH2007PTC173005	SASMITA PROPERTIES PRIVATE LIMITED	Additional director	30-09-07	30-09-07	25-08-08	Active	NO
14	U11201GJ2002PLC041192	ASIA MOTORWORKS LIMITED	Additional director	19-05-08	19-05-08	30-04-11	Active	NO
15	U70100MH2006FLC159272	ESSAR SEZ HAZIRA LIMITED	Additional director	17-06-08	17-06-08	17-05-10	Active	NO

Name :

Mr. Mahadev Ramnath Iyer

Designation :

Director

Address :

109/110, Indira Apartment, Govandi Station Road, Deonar, Mumbai – 400 088, Maharashtra, India

Date of Birth/Age :

01.07.1958

Date of Appointment :

17.12.2011

DIN No.:

01871295

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U13100GJ2006PLC047506	ESSAR MINERAL RESOURCES LIMITED	Director	13-01-06	13-01-06	07-07-10	Active	NO
2	U27100GJ2005FLC045786	HAZIRA PLATE LIMITED	Additional director	18-12-08	18-12-08	-	Amalgamated	NO
3	U27106MH2007PLC172940	ESSAR STEEL HYPERMARTS LIMITED	Additional director	18-12-08	18-12-08	-	Active	NO
4	U27104MH2006PLC162609	ESSAR STEEL ORISSA LIMITED	Additional director	18-12-08	18-12-08	-	Amalgamated	NO
5	U27100GJ2005PLC046272	ESSAR STEEL JHARKHAND LIMITED	Additional director	18-12-08	18-12-08	-	Active	NO
6	U25199GJ2007PLC050164	HAZIRA PIPE MILL LIMITED	Additional director	18-12-08	18-12-08	-	Amalgamated	NO
7	U27100GJ2005FLC046274	ESSAR STEEL CHHATTISGARH LIMITED	Additional director	18-12-08	18-12-08	-	Active	NO
8	U27100GJ2005FLC046273	ESSAR STEEL (HAZIRA) LIMITED	Additional director	22-12-08	22-12-08	-	Amalgamated	NO
9	U70100MH2006FLC159272	ESSAR SEZ HAZIRA LIMITED	Additional director	14-01-09	14-01-09	-	Active	NO
10	U40100DL2005PLC201961	ESSAR POWER M P LIMITED	Director	30-07-09	16-02-09	-	Active	NO
11	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	17-12-11	16-02-09	-	Active	NO
12	U74900GJ2007PLC066273	ESSAR POWER GUJARAT LIMITED	Director	11-08-10	04-09-09	-	Active	NO
13	U40300GJ2006PLC063146	ESSAR POWER HAZIRA LIMITED	Director	06-08-11	17-08-10	-	Active	NO
14	U31101DL2005PLC208862	ESSAR POWER (ORISSA) LIMITED	Director	19-08-11	17-08-10	-	Active	NO
15	U27100MH2011PLC217214	PARADEEP STEEL COMPANY LIMITED	Director	09-05-11	09-05-11	-	Active	NO

Name :

Mr. Dilip Cherial Oommen

Designation :

Managing Director

Address :

D-3/4, Nandniketan Towership, Hazira, Surat – 394 270, Gujarat, India

Date of Birth/Age :

28.03.1958

Date of Appointment :

17.12.2011

DIN No.:

02285794

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Managing director	17-12-11	07-07-08	-	Active	NO
2	U27100GJ2005FLC045786	HAZIRA PLATE LIMITED	Director	25-09-08	25-09-08	-	Amalgamated	NO
3	U27106MH2007PLC172940	ESSAR STEEL HYPERMARTS LIMITED	Additional director	18-12-08	18-12-08	-	Active	NO
4	U27100GJ2005FLC046273	ESSAR STEEL (HAZIRA) LIMITED	Additional director	22-12-08	22-12-08	-	Amalgamated	NO
5	U74900GJ2007PLC066273	ESSAR POWER GUJARAT LIMITED	Director	11-08-10	04-09-09	-	Active	NO
6	U40300GJ2006PLC063146	ESSAR POWER HAZIRA LIMITED	Director	06-08-11	17-08-10	-	Active	NO
7	U31101DL2005PLC208862	ESSAR POWER (ORISSA) LIMITED	Director	19-08-11	17-08-10	-	Active	NO
8	U40100DL2005PLC201961	ESSAR POWER M P LIMITED	Director	19-08-11	20-09-10	-	Active	NO

Name :

Mr. Malay Mukherjee

Designation :

Director

Address :

81, Templars Avenue, Golders Green, London, United Kingdom

Date of Birth/Age :

26.01.1948

Date of Appointment :

26.11.2009

DIN No.:

02861065

KEY EXECUTIVES

Name :	Mr. Narottam Babulal Vyas
Designation :	Secretary
Address :	3A/1701, Whispering Palms, Lokhandwala Complex, Akurli Road, Kandivali (East), Mumbai – 400 101, Maharashtra, India
Date of Birth/Age :	03.07.1954
Date of Appointment :	01.10.2002
PAN No.:	AAEPV9402H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Venkataraman Venkatesan	1317
Vikram Harishchandra Amin	531

As on 21.01.2012

Names of Allottee	No. of Shares
Essar Steel Limited, Mauritius	12106294
Total	12106294

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Public financial companies	0.03
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	88.44
Bodies corporate	8.65
Other top fifty shareholders	0.23
Others	2.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Steel Products.

Products :

Item Code No.	Product Description
2601	Iron Ores and Concent Rates, Other than Roasted Iron Pyrites
7203	Ferrous Products Obtained by Direct Reduction of Iron Ore and Other Spongy Ferrous Products in Lumps, Pellets or Similar Forms
7208	Flat Rolled Products of Iron or Non Alloy Steel of a Width of 600 MM or More Hot Rolled, Not Clad, Plated or Coated
7210	Flat Rolled Products of Iron or Non Alloy Steel of a Width of 600 MM Clad Plated or Coated with Zinc
7211	Flat Rolled Products of Iron or Non Alloy Steel of a Width of Less than 600 MM Hot Rolled, Not Clad, Plated or Coated
7304	Pipes and Hollow Profile Seamless or Iron or Steel for Used in Oil and Gas Pipeline

PRODUCTION STATUS (AS ON 31.03.2011)

Licensed Capacity - *

Installed Capacity (as certified by the management) per annum

Particulars	Unit	2010-11
Iron Ore Pellet	MT	8000000
Hot Briquette Iron / Direct Reduced Iron (Trial Run 17,00,000 MT)		6700000
Hot Metal (Under Trial run)	MT	1730000
Hot Rolled Coil	MT	3600000
Cold Rolled Coil	MT	2110000
Colour Coating	MT	400000
Plates	MT	1500000
Pipes (Including Capacity of L-Saw Plant under Trial Run 325,000 MT)	MT	600000

PRODUCTION

Particulars	Unit	2010-11
Iron Ore Pellet**	MT	5081082
Hot Briquette Iron / Direct Reduced Iron (Including trial run production of 411,782 MT)	MT	4237809
Hot Metal (Under Trial Run)	MT	373354
Hot Rolled Coils/Cold Rolled Coils/ Plates	MT	3217932
Plates (Including trial run production of 77,910 MT)	MT	366606
Pipes (Including trial run production of L-Saw 24,503 MT)	MT	101803

* Not applicable in terms of Government of India's Notification No. S.O.477 (E) dated 25^th July, 1991.

** Includes production of Pellets on Job Work Basis of 172882 MT

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Syndicate Bank, 3^rd Floor, 10 Homji Street, Fort, Mumbai – 400 023, Maharashtra, India
• HSBC (Singapore)
• Standard Chartered Bank (Thailand)
• Allahabad Bank
• Andhra Bank
• Axis Bank Limited
• Bank of Baroda
• Bank of India
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• Export Import Bank of India
• Federal Bank Limited
• HDFC Bank Limited
• ICICI Bank Limited
• IDBI Bank Limited
• Indian Bank
• Indian Overseas Bank
• Jammu and Kashmir Bank
• Oriental Bank of Commerce
• Punjab National Bank
• Punjab and Sind Bank
• SBI Commercial and International Bank Limited
• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of India
• State Bank of Mysore
• State Bank of Patiala
• UCO Bank
• Union Bank of India
• United Bank of India
• Yes Bank Limited

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Rupee term loans banks secured	139052.500	92849.000
Rupee term loans financial institutions secured	9804.800	3795.800
Foreign currency loans banks secured	10885.900	17834.600
Foreign currency loans financial institutions secured	(A) 750.100	(B) 1702.500
Working capital loans banks secured	11215.700	3034.000
Working capital loans others secured	(C) 19324.800	(D) 9834.200
Other debt secured	(E) 25698.500	(F) 36913.400
Total	216732.300	165963.500

Footnotes

(A) From Financial Institutions and others

(B) From Financial Institutions and others

(C) Includes Buyers' credit for Operational use

(D) Includes Buyers' credit for Operational use

(E) Includes Buyers' credit for Capital Expenditure

(F) Includes Buyers' credit for Capital Expenditure

Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Debts bonds other instruments unsecured	0.000	(A) 5000.000
Rupee term loans banks unsecured	750.000	3750.000
Rupee term loans others unsecured	(B) 1000.000	0.000
Finance lease obligation long-term unsecured	(C) 55.000	0.000
Other debt unsecured	(D) 5306.600	(E) 5986.100
Total	7111.600	14736.100

Footnotes

(A) Represents Commercial Paper

(B) Represents Loan from Companies

(C) Finance Lease Obligation (Amount due within one year 10.000 millions)

(D) 1. Buyers' credit for Capital Expenditure 3084.100 Millions 2. Dollar / Rupee Notes [Due within one year Rs.30.200 millions] 1883.700 Millions 3. Sales tax deferral Loan [Due within one year Rs. NIL] 338.800 Millions Refer Other details regarding unsecured debt

(E) 1. Buyers' credit for Capital Expenditure 3704.000 Millions 2. Dollar / Rupee Notes [Due within one year Rs.30.200 millions] 1943.300 Millions 3. Sales tax deferral Loan [Due within one year Rs. NIL] 338.800 Millions Refer Other details regarding unsecured debt

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Mumbai, Maharashtra, India
PAN No.:	AABFD7919A
Holding Company :	v Essar Steel Holdings Limited, Mauritius v Essar Global Limited, Cayman Islands (Holding Company of Essar Steel Holdings Limited)
Subsidiaries :	v Essar Steel Middle East FZE, United Arab Emirates (ESMEF) v Essar Steel Trading FZE, United Arab Emirates (ESTF) v Essar Steel Offshore Limited, Mauritius (ESOSL) v Essar Steel Overseas Limited, Mauritius (ESOL)
Associates :	Bhander Power Limited, India (BPOL) [CIN No.: U31101GJ1995PLC065146] Essar Bulk Terminals Limited, India (EBTL) [CIN No.:U13100GJ2004PLC043477] Essar Bulk Terminal Paradeep Limited (EBTPL) Essar Power Limited, India (EPOL) [CIN No.:U40100GJ1991PLC064824] Essar Power (Orissa) Limited (EPOL - Orissa) Essar Steel Processing Fzco (ESP FZCO)
Fellow Subsidiary :	Aegis Limited, India (AEGIS) [CIN No.: U99999MH1992PLC064767] Essar Energy Holding Limited (EEHL) Essar Logistics Limited, India (ELL) [CIN No.: U63000MH2004PLC149214] Essar Mineral Resources Limited (EMRL) Essar Oil Limited, India (EOL) [CIN No.:L11100GJ1989PLC032116} Essar Offshore Subsea Limited (EOSL) Essar Power Gujarat Limited, India (EPGL) [CIN No.:U74900GJ2007PLC066273] Essar Heavy Engineering Service (EPIL) Essar Projects (India) Limited, India (EPIL) [CIN No.:U99999MH1989PLC053280] Essar Project Management Consultant Limited, India (EPMCL) [CIN No.: U74140MH2007PLC175845] Essar Power (Jharkhand) Limited (EPJL) Essar Power (M P) Limited, India (EPMPL) [CIN No.:U40100DL2005PLC201961] Essar Steel Algoma Inc. United States (ESA-INC) Essar Sez Hazira Limited, India (ESEZHL) [CIN No.: U70100MH2006FLC159272] Essar Steel Processing and Distribution UK (ESP&D) Essar Shipping Port and Logistics Limited (ESPLL) Essar Shipping and Logistics Limited (ESLL) Pt Essar Indonesia, Indonesia (PTEI) Vadinar Oil Terminals Limited (VOTL) Vadinar Power Company Limited (VPOCL) Teletech Investments (India) Limited (TIIL) Essar Project Limited (EPL) Essar Minerals Americas (EMA) Essar Power Hazira Limited (EPHL)
Companies in which promoters have significant influence/control:	Arkay Holdings Limited, India (AHL) [CIN No.:U01120MH1993PLC071726] Essar Agrotech Limited (EAL) Essar Engineering Services Limited (EESL) Essar House Limited, India (EHL) [CIN No.:U70100MH1982PLC117644] Essar Investments Limited, India (EIL) [CIN No.:L99999MH1976PLC034721] Essar Infrastructure Services Limited, India (EISL) [CIN No.:U64202MH1995PLC087774] Essar Information Technology Limited, India (EITL) [CIN No.:U72200MH1992PLC064816] Essar Properties Limited, India (EPRL) [CIN No.: U93090TN1983PLC019552] Essar Procurement Services Limited (EPSL) Essar Steel Chhattisgarh Limited, India (ESCL) [CIN No.: U27100GJ2005FLC046274] Essar Steel Hypermarts Limited, India (ESHML) [CIN No.: U27106MH2007PLC172940] Essar Steel Jharkhand Limited, India (ESJL) [CIN No.: U27100GJ2005PLC046272] Essar Telecom Investment Limited (ETIL) Futura Travels Limited, India (FTL) [CIN No.: U63040MH1990PLC056592] Imperial Consultants and Securities, India (ICSL) (Formally known as Essar Holding Limited) [CIN No.: U65993TN1993PTC024724] India Securities Limited, India (ISL) [CIN No.: L99999TN1984PLC075902] Kroner Investment Limited (KIL) Nirmit Estates Private Limited (NEPL) New Ambi Trading and Investments Private Limited, India [CIN No.: U51900MH1980PTC023584] Pratik Estates Limited (PEL) Prajakta Finance and Trading Limited (PFTL) Paprika Media Private Limited (PMPL) Prajesh Investments Private Limited, India (PIPL) [CIN No.: U65990MH1989PTC054274] Samarjit Investment Private Limited (SIPL) Trikaya Investments Limited (TIL) The Mobilestore Limited (TML) Essar Telecom Retail Limited (ETRL) Prajesh Marketing Limited (PML) Essar Teleholding Limited (ETHL) Samarjit Estates Private Limited, India (SEPL) [CIN No.: U70200MH1989PTC053092] Golden Merchandisers Private Limited, India (GMPL) [CIN No.: U51909GJ1995PTC024403] Swarna Ganga Holdings and Estate Development Private Limited, India (SGHEDPL) [CIN No.: U70100MH1995PTC088883] Kartik Estates Private Limited, India (KEPL) [CIN No.: U70100MH1989PTC053169]

CAPITAL STRUCTURE

As on 17.12.2011

Authorized Capital: Rs.72750.000 Millions

Issued, Subscribed and Paid Up Capital: Rs.26704.368 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7175000000	Equity Shares	Rs.10/- each	Rs.71750.000 Millions
100000000	10% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.1000.000 Millions
	Total		Rs.72750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2527400000	Equity Shares	Rs.10/- each	Rs.25274.000 Millions
43600000	10% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.436.000 Millions
	Total		Rs.25710.000 Millions

Of the above

(a) 3987538 Equity Shares of Rs.10 each were allotted as fully paid up Bonus Shares by capitalization of General Reserve.

(b) 1073399784 Equity Shares of Rs.10 each were allotted as fully paid up for consideration other than cash.

(c) 2218196045* Equity shares of Rs.10 each are held by Essar Steel Holding Limited, Mauritius, the holding Company.

(d) Nil equity shares Rs.10 each are held by Hazira Steel-2, subsidiary of ultimate holding company.

(e) Nil Equity Shares of Rs.10 each are held by Teletech Investments (India) Limited.

* As informed by Essar Steel Holding Limited, Mauritius, the holding company 33400905 shares out of the 2218196045 shares have been sold during January to March, 2011 for which transfer is pending in dematerialized form.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		25710.000	22573.300	11840.800
2] Share Application Money (Pending Allotment)		2482.400	335.300	0.000
3] Reserves & Surplus		77329.800	68387.000	0.000
4] (Accumulated Losses)		0.000	0.000	35915.800
NETWORTH		105522.200	91295.600	47756.600
LOAN FUNDS
1] Secured Loans		216732.300	165963.500	63176.200
2] Unsecured Loans		7111.600	14736.100	9937.700
TOTAL BORROWING		223843.900	180699.600	73113.900
DEFERRED TAX LIABILITIES		607.800	1172.800	1136.800
LONG-TERM ADVANCE FROM CUSTOMERS		0.000	0.000	1650.700
TOTAL		329973.900	273168.000	123658.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		102544.300	92836.800	91288.200
Capital work-in-progress		175083.900	144922.000	5496.100
INVESTMENT		3970.200	4927.900	7913.100
DEFERRED TAX ASSETS		638.700	(1473.700)	0.000
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		0.000	0.000	373.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	52225.000	26332.300	21575.200
	Sundry Debtors	5147.600	4712.400	4074.700
	Cash & Bank Balances	9210.000	17712.500	5081.600
	Other Current Assets	11296.000	10561.900	1257.800
	Loans & Advances	30251.100	20386.100	13811.900
Total Current Assets		108129.700	79705.200	45801.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24331.500	20508.500	11652.600
	Other Current Liabilities	33101.200	22901.700	13805.600
	Provisions	2960.200	4340.000	1755.400
Total Current Liabilities		60392.900	47750.200	27213.600
Net Current Assets		47736.800	31955.000	18587.600
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		329973.900	273168.000	123658.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	123015.000	106195.500	116883.000
		Other Income	5260.900	2734.600	1851.800
		TOTAL (A)	128275.900	108930.100	118734.800
Less	EXPENSES
		Consumption materials changes inventories	86875.400	73462.600	99550.900
		Manufacturing service costs	13623.400	10540.400
		Employee related expenses	3012.000	2176.900
		Administrative selling other expenses	7438.100	5017.400
		TOTAL (B)	110948.900	91197.300	99550.900
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17327.000	17732.800	19183.900
Less	INTEREST FINANCIAL EXPENSES (D)		12187.400	9084.000	7894.700
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5139.600	8648.800	11289.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8914.600	7928.500	8281.100
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(3775.000)	720.300	3008.100
Less	TAX (H)		(2112.300)	495.800	1156.100
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(1662.700)	224.500	1852.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18822.700	18591.000	16739.000
	Balance Acquired on Amalgamation		0.000	109.200	0.000
Less	APPROPRIATIONS
		Preference Dividend (including DDT)	76.400	102.000	0.000
	BALANCE CARRIED TO THE B/S		17083.600	18822.700	18591.000
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	20227.600	11092.300	27616.400
		Others	1622.200	553.900	2026.900
	TOTAL EARNINGS		21849.800	11646.200	29643.300
	IMPORTS
		Raw Materials	8835.600	7305.200	851.600
		Production Consumables, Stores and Spares & Fuel	28469.100	7187.600	10260.100
		Capital Goods	11199.600	30994.700	1474.700
		Traded Goods	358.300	528.500	0.000
	TOTAL IMPORTS		48862.600	46016.000	12586.400
	Earnings/ (Loss) Per Share (Rs.)		(0.72)	0.09	1.58

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.30)	0.21	1.55
Net Profit Margin (PBT/Sales)	(%)	(3.07)	0.68	2.57
Return on Total Assets (PBT/Total Assets}	(%)	(1.79)	0.42	2.19
Return on Investment (ROI) (PBT/Networth)		(0.04)	0.01	0.02
Debt Equity Ratio (Total Liability/Networth)		2.69	2.50	2.10
Current Ratio (Current Asset/Current Liability)		1.79	1.67	1.68

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	Yes
8) No. of employees	No
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	Yes
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
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

NATURE OF OPERATIONS:

The Company owns and operates an integrated steel manufacturing unit for manufacturing of flat rolled products at Hazira – District Surat, a Precoated facility at Pune, a Beneficiation plant at Kirandul, Slurry pipeline and Pelletization plant at Vizag. The Company is also in the process of setting up a Beneficiation plant at Dabuna (Orissa) , another Slurry pipeline and Pelletization plant at Paradeep. The company also operates processing and distribution centers, Hypermarts and Express Marts at various locations across the India.

GLOBAL SCENARIO

The global economy witnessed slow but steady recovery in year 2010 with leading indicators of economy viz. GDP, Industrial Production, Crude Oil Prices, Purchasing Managers’ Index, etc. improving across all regions post global recession of year 2009. Business confidence increased gradually through the year for most parts of the world. The automotive sector rebounded strongly, construction activities continued to decline, and the recovery of mechanical engineering, domestic appliances, metal goods and other transport equipment sectors remained subdued in 2010.

The fear of double-dip recession in advanced economies is reduced given the fact that private demand is advancing while fiscal policy support is diminishing. Financial conditions, though improved remain unusually fragile particularly in Europe. From late 2009, fears of sovereign debt crisis developed concerning some European states. Concern about rising government deficit and debt level across the globe together with a wave of downgrading of European government debt created alarm in financial market. On May 2010 Europe’s Finance Minister approved a comprehensive rescue package aimed to ensuring financial stability across Europe by creating the European Financial Stability Facility.

In many emerging market economies, demand is robust and overheating is a growing policy concern. Rising food and commodity prices pose a threat to poor households, adding to social and economic tensions, notably in the Middle East and North Africa.

The macroeconomic impact of the earthquake in Japan is projected to be limited, although uncertainty remains elevated. The flood in Australia impacted supply of Coking Coal used primarily in steel making and prices has increased beyond previously forecasted prices as a result of supply disruptions caused by the floods.

Overall, with the recovery stronger on the one hand but oil supply growth lower on the other, projections for global real GDP growth in 2011–12 are moderate.

INDIAN SCENARIO

India witnessed robust economic growth at 8.5% during the Financial Year 2010-11. According to CMIE, the growth had been powered by a rebound in the agricultural sector which grew at 5% following the drought in 2009-10, and a sharp pick-up in private consumption and gross fixed capital formation. The manufacturing sector saw an annual growth of 8.1% in output during FY 2011 as against 11% during FY 2010. Similarly, the Mining Sector saw a decline in growth to 5.9% in FY 2011 compared to 9.9% in FY 2010. The capital Goods segment was among the most affected as it grew by just 9.3% in 2010-11 as compared to 20.9% in the previous fiscal. Inflation remained a cause for concern. Persistent inflationary pressures have been driven by rising income levels and inadequate policies to increase the supply of goods in the economy.

The growth in Indian economy is expected to be moderate amidst inflationary pressures and rising interest rates. The impact of the past monetary policies and reduction in the pricing power, will slow down Industry and Services growth. The growth is Service Sector is projected to be lower and Industrial growth is likely to decline further. Overall GDP growth is expected to be in the range 7.7-8%. The investment demand is projected to moderate and the private consumption demand too could start slowing down due to increased interest rates in 2011-12. The RBI has revised interest rate upward several times since March 10, a dampener on consumption and growth.

STEEL INDUSTRY

Global Overview

Global Steel consumption reached 1283.6 mt in 2010 (up by 13.2% over 2009) which is a record consumption since inception.

The higher growth rates witnessed in advanced economies reflects the rebound from the severe downturn of the earlier years. India and China, which were least affected by the slow down and continued to grow at robust rates.

According to World Steel Association, the global steel consumption is projected to reach 1359.2 mmt in 2011 (up by 5.9% over 2010). There are however uncertainties due to the fragility in peripheral European economies, unrest in some oil producing countries in the Middle East and the earthquake in Japan.

In US, the rebound in apparent steel use is forecast to continue in 2011, reflecting the second round of quantitative easing and new fiscal policy initiatives

Apparent steel use in the EU is forecast to grow on the back of an export-driven industrial rebound. The largest euro zone economies like Germany and France are forecast to enjoy solid recovery in steel use mainly in the automotive and machine building sectors.

The recovery of steel use in the CIS has been healthy mainly due to a strong rebound from steel-using sectors in Russia.

Given the pace of steel production in the first quarter of 2011, Chinese apparent steel use could be even higher. However, it is expected that the Chinese government’s efforts to cool down the overheating economy, particularly the real estate sector, will impact Chinese steel demand somewhat later this year.

Steel demand in the MENA region is expected to remain stagnant in 2011, mainly due to downward revisions from North African countries.

Domestic Overview

The growth momentum in the Indian steel industry continues.

In the financial year 2010-11, steel consumption (non-alloy and alloy) in India reached 65.6 mmt, registering a growth of10.6% over FY 2009-10 levels. Finished Steel production in the country registered a growth of 8% during FY 2010-11 and reached a level of 66 mmt.

The overall import of steel though having declined from the previous year’s level, maintained a high volume of 6.79 mmt. The Exports were marginally up and touched 3.46 mmt as against 3.25 mmt during previous year. The country continued to be a net importer of steel by over 3.0 mmt.

To meet the growing domestic demand, the crude steel capacity is projected to increase from 78 mmt in 2011 to 98.4 mmt in 2012. The Finished Steel production in the country is estimated to exceed 70 mt during FY 2012.

The outlook for the Indian steel industry looks promising.

OPERATIONS

The FY 2010-11 was a watershed in the history of the Company. The various facilities which were at project stage since last 2 to 3 years have been commissioned during the year and started operation. Further the year has witnessed expansion of capacity to add wide range of products.

The Company is the first in the world to have all three iron making technologies, viz. HBI – DRI, COREX and Blast Furnace at one location. This year the Company achieved highest production.

Key highlights of the year were:

· The state-of-the-art Plate Mill with an installed capacity of 1.5 MTPA with Heat Treatment facilities fully commissioned. It is amongst Asia’s widest and only mill to produce 5 meter plates in the country, with a comprehensive thickness range of 5 to 150 mm.

· Successful commission of CSP facility enables Company to produce hot-rolled coils up to 0.8 mm thickness, which will find wide applications in the automotive market. This will enable the Company to cater to a wider range of customer segments and product applications.

· The Blast Furnace commissioned on 23 rd November’10 which will help the Company in reducing the production cost by using alternate fuel.

· To reach 10 MTPA capacities, the company has started the following facilities also during the current year:

• ConArc furnace with capacity of 2.5 MTPA
• 6^th DRI module
• 4^th continuous Caster
• CSP Mill
• 2 Corex modules readied for startup

· Stabilization of DRI process with low grade pellets

· With sustained effort, the Slurry Pipe Line was started in December’10

· The Commissioning of the LSAW mill in the first half of FY 2010-11 added LSAW Pipes to the portfolio of specialized products.

During the year Company produced 3.58MT (flat product) and achieved sales of 3.34MT, recording an increase of 6% and 3% respectively over the previous year. During the year, Pellet production at Vizag and Steel production at Hazira continued to be affected due to the suspension of material movement through the slurry pipeline from Beneficiation Plant at Kirandul to the Pellet Plant at Vizag for eight months of the year. This had an adverse effect on the profitability. The Company undertook various measures to mitigate the adverse impact by making alternative arrangements of movement of Iron Ore through railway rake and road, purchase of iron ore fines and Pellets from alternate sources.

The transportation of slurry through the 267 KM slurry pipeline from the Beneficiation Plant at Kirandul to the Pellet Plant at Vizag was suspended from May’09 to February’10 due to damage to the Pipeline. The company completed the repair and the restoration work by mid February’10 2010 and Slurry was pumped through the Pipeline to Vizag thereafter.

Since, the pipeline system was lying idle and was not operational for over 8 months, it was imperative to conduct a detailed end-to-end health check up of the entire system for safe and continuous operation. The health checkup activities were in advanced stages of completion and the Company was definitely well poised to complete the same by end March’10 in accordance with the plan and restart the pipeline system immediately thereafter on a continuous basis. Unfortunately, damage to Pumping Station (PS)-2 in Mar’10 forced the Company to halt all further activities at PS-2, while work at other locations continued and were completed as planned. However, the non-availability of PS-2, rendered the entire pipeline system non-operational.

The Company completed the repair and restoration activity at PS-2 and started slurry pumping in a phased manner from 25th November’10. The slurry pumping throughput reached its normal operating capacity on 9th December’10. Since then the Pelletization Complex starting from Beneficiation Plant at Kirandul to the Pellet Plant at Vizag are operating under normal operating conditions. The production levels have picked up again to planned levels in the last quarter.

The company has an Insurance Policy which covers Material Damage loss and Loss of Profit due to Business interruptions including Terrorism Cover. The company has filed an insurance claim of Rs.97.900 Millions for Material Damage loss and Rs.8810.000 Millions for loss of profit (for the indemnity period till 30th September 2010) with the New India Assurance Company. Pending settlement of the claim with the Insurance Company, the amount of the claims has not been recognized in the accounts.

Following were the achievement in major cost parameters and steps taken to achieve cost reduction:

• HBI finished with NG consumption of 290 sm 3 /t in FY 2010-11 against 297 sm 3 /t achieved in FY 2009-10.

• HSM ended with YTD yield of 98.2% for FY 2010-11 as against 97.84% previous year.

• Hot Metal usage started at Plant A to increase productivity and reduce power consumption.

• Consumption of various wastes/by products like Sludge Pond Fines, Mills Scale, flue dust, under size line stone etc. in sinter plant.

Sales and Marketing

• The financial year 2010-11 saw the global economy recover from the economic crisis which had stymied growth in the previous year. The Indian economy recovered to register a GDP growth of 8.5%.

• There had been loss of momentum in industrial growth and this had affected the performance of the mining and manufacturing sectors.

• The successful commissioning of the CSP facility enables Essar to produce hot-rolled coils up to 0.8 mm thickness, which will find wide applications in the automotive market. This will enable them to cater to a wider range of customer segments and product applications.

• The year 2010-11 was an eventful one and some performance parameters need to be seen in the right perspective. Overall sales of flat steel products improved marginally 3% y-o-y to 3.34 million tones. Export volumes, at 0.55 million tonnes, increased 77% on account of the improved steel demand globally while domestic sales at 2.8 million tonnes dropped marginally by 4.6% y-o-y.

• Revenues were up 18% to Rs.12,827.59 Cr. and net sales realization per tonne increased 18% y-o-y mainly on account of increase in price globally and more focus on value-added sales.

• As much as 70% of sales were made in the value-added segments and this was largely due to continued emphasis on value-added products, like Electrical, Auto Hi-strength grade, PEB, API, etc.

• Essar Hypermart sales in 2010-11 grossed 0.8 million tonnes with revenues of Rs.30050.000 millions. It extended its footprint across the length and breadth of the country by adding 23 more outlets from 87 to 110, while their market penetration and reach was further strengthened by the expansion of the Expressmarts network from 387 to 500.

• With the addition of Bhuj Service Centre, their current steel processing and distribution installed capacity in India has gone up to 3.5 mtpa and two more Service Centers at Indore and Kolkata are under various stages of commissioning.

• Essar Steel’s focus on innovation was underlined by the following achievements:

o API certification for plate and pipe products

o Essar Steel became the first Indian steel producer to bag an order to supply steel for Volkswagen’s passenger vehicles.

o Essar Steel became the first Indian private steel producer to be approved by the Indian Navy for steel supplies to Mazagaon dockyard for production of naval ships.

o Nissan, Japan has approved Essar Steel for HR and CR supplies to its Indian and overseas facilities.

o Essar Steel entered into an agreement with Kobe Steel, Japan for development of skin panels for automotive applications.

o Caterpillar has approved Essar Steel’s indigenously developed quenched and tempered (QT) steel for its applications.

o Essar Steel became the only Indian steel company to supply steel for the Tata ‘Nano’.

• One of the strengths of Essar Steel is its unique, diversified global business model. This means that they are ideally positioned to benefit when market demand fully recovers. They strongly believe that the year 2011-12 will be an inflexion point for Essar Steel and will catapult it to the next level.

FINANCE:

The amalgamation of the Essar Steel Business in India was successfully concluded in the financial year 2010-11 (w.e.f. April 1, 2009) based on the orders of the Honourable High Court of Bombay Judicature and the Honourable High Court of Gujarat. This, along with the commissioning of the various plant facilities as outlined in the “Operations” Section above, has brought the Company closer to achieving the plan to be a 10 million metric ton per annum Steel producer; and thus poised to become one of the leading steel producers in the country.

During the financial year, the Company successfully consolidated its Rupee Term Debt facilities under a single loan agreement, thereby simplifying the administration of debt by the Company and the lenders.

Similarly the Company also initiated the process of consolidation and enhancement of its working capital limits under single loan agreement with common terms and conditions. In order to meet the increased business needs, the enhanced working capital limits for FY 11-12 has been assessed by the lead bank, State Bank of India (SBI).

During FY 11, post amalgamation, the Company has been assigned a rating of ‘CARE A-’ for the long term debt facilities and a rating of PR2+ for the short term debt facilities by Credit Analysis and Research Limited (CARE); The rating of ‘CARE A-’ indicates that the long term debt facilities offer adequate safety for timely servicing of debt obligations and carry low credit risk. The rating of ‘CARE PR2+’ indicates that the short term debt facilities have adequate capacity for timely payment of debt obligations.

During the year, the Company was successful in progressing with its capital expenditure programme, and meeting its payment obligations.

The company witnessed several challenges during FY 11 viz. high inflation in the Indian economy leading to frequent interest rate hikes, debt crisis in European economies, steep increases in price of metallic inputs, non-operation of slurry pipeline for major part of the year. With the re-start of the slurry pipeline in Q3 of FY 11 and successful completion and commissioning of the various on-going projects on a progressive basis, the Company is well positioned to realise the benefits from the substantial capital investments made in the last 3 years by increasing its scale of operations and market presence.

CHANGE IN CAPITAL STRUCTURE

During the year the paid up equity capital of the Company increased from Rs.11840.800 millions to Rs.25710.000 millions due to allotment of shares made on preferential basis to Essar Steel Limited, Mauritius, holding company of the Company in accordance with approval granted by the members under Section 81 of the Companies Act, 1956 at the last annual general meeting.

AMALGAMATION

During the year, Essar Steel (Hazira) Limited, Hazira Plate Limited, Hazira Pipe Mill Limited and Essar Steel Orissa Limited have been amalgamated with the Company pursuant to the order passed by the Hon’ble High Courts at Mumbai and Ahmedabad sanctioning the Scheme of Amalgamation. The merger will provide a much wider product portfolio to customers ranging from pellets to Slabs, HRC, CRC, Galvanised and Annealed Products, Pipes and Plates and also leading to greater economies of scale and operational synergies.

All the formalities with respect to Amalgamation have been complied with.

CONTINGENT LIABILITIES

Contingent Liabilities not provided for	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
(i) (a) Bills discounted	640.800	202.500
(b) Claims against the Company not acknowledged as debt in respect of: Disputed sales tax matters in respect of which the Company has gone in appeal [including amount already paid Rs.1473.400 millions (Previous year Rs.1473.400 millions)]	3303.200	3306.600
Disputed Excise duty matters in respect of which the Company has gone in appeal	13.000	10.900
Disputed Custom duty matters in respect of which the Company has gone in appeal	1654.900	1654.900
- Tax of sale of electricity demanded by sales tax authorities on Essar Power limited	459.100	459.100
- Electricity duty demanded by the Collector of Electricity Duty, Gandhinagar"	6090.100	5868.500
- Wheeling Charges demanded by Gujarat Electricity Board [including amount already paid Rs,272.300 millions (Previous year Rs.272.300 millions)]	3930.100	2980.100
Others	0.000	46.900
Future cash outflows in respect of above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities. ** "A Show Cause Notice (SON) dated 10^th March 2010 has been issued by the Collector of Electricity Duty, Gandhinagar, demanding Electricity Duty Rs.5853.100 millions and Interest Rs.5284.800 millions for the period April 2000 to February 2010. The company has claimed that it is exempt from paying the Electricity Duty for a period of 15 years from the date of commission of the captive power project i.e. from 8th August 1995 to 7^th August 2010. The company has filed an appeal to the Division Bench of Gujarat High Court against the order which has been admitted by the court and granted stay order dated 5th April 2010. The conditions of stay were: (i) Company to deposit Rs.500.000 millions. by 30,04,2010. (ii) Company to further pay Rs.150.000 millions every month commencing from 15th May, 2010 towards the arrears of the principal amount of electricity duty, As per the management view and based on the legal opinion from a reputed counsel, the Company is eligible for exemption of Electricity Duty for the period of 15 years i.e. from 8th August 1995 to 7th August 2010 and accordingly no provision is required to be made in the books as at 31st March, 2010 with respect to the afore said demand. However the Company has disclosed Rs. 5868.500 millions (Previous Year Rs. 5096.300 millions) on account of above matter as contingent liability as at 31^st March 2010.
(c) Guarantees given to various banks, financial institutions, finance companies, etc. on behalf of others [Balance outstanding as on 31.03.2011 is Rs.29102.200 millions (Previous Year Rs.7673.500 millions) The Company and Essar Power Limited (EPOL) have provided corporate guarantee of Rs.1,2120.000 millions (Previous Year Rs.1,2120.000 millions), on behalf of Loop Telecom Private Limited (LOOP), favouring State Bank of India (SBI) against (a) Term loan of Rs.4000.000 millions (Previous Year Rs.7250.00 millions) and (b) Bank guarantee of Rs.8120.000 millions (Previous Year Rs.8120.00 millions), availed by LOOP. Of the said guarantee, LOOP has utilised guarantee of Rs.4000.000 millions (Previous Year Rs.7250.000 millions) against the term loan availed from State Bank of India. As the Company and EPOL, issued the corporate guarantees simultaneously, the Company has considered Rs.2000.000 millions (Previous Year Rs.3625.000 millions) being 50 % of Rs.4000.000 millions (Previous Year Rs.7250.000 millions) as its contingent liability. The bank guarantee will be utilized against the license fees payable by LOOP, after It starts operation. Further, the Company has also recei0076ed counter guarantee for the same from Loop Mobile Holdings India Limited (formerly known as BPL Communications Limited).	36023.900	8693.700
(ii) Arrears of fixed dividend on Cumulative Redeemable Preference Shares	0.000	44.500

Bankers Charges Report as per Registry

Corporate identity number of the company	U27100GJ1976FLC013787
Name of the company	ESSAR STEEL INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	27Km., Surat Hazira Road, Hazira, Surat – 394 270, Gujarat , India Email: rakesh.darji@essar.com
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Syndicate Bank, 3^rd Floor, 10 Homji Street, Fort, Mumbai – 400 023, Maharashtra, India Email: mh.5088mumlcb@syndicatebank.co.in
Nature of instrument creating charge	Composite Hypothecation Agreement dated February 23, 2012
Date of instrument Creating the charge	23.02.2012
Amount secured by the charge	Rs.2500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Bank rate + 3 % presently at 13% pa Terms of Repayment Interim facility of Rs.2500.000 millions to be converted into Long Term loan post financial closure. Long Term facility to be repaid on 16 quarterly installments starting from 31.03.2013 and ending on 31.12.2016. Margin Nil Extent and Operation of the charge Subservient Charge on Movable Fixed Assets and Current Assets of the Company located at various factories in India.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Subservient Charge on Movable Fixed Assets and Current Assets of the Company located at Hazira, Dabuna, Paradeep, Vizag. Kirandul and other places in India.

FIXED ASSETS:

Tangible Assets

v Freehold Land

v Leasehold Land

v Buildings

v Plant and Machinery

v Furniture and Fixtures

v Office Equipment

v Computers

v Vehicles

v Ships and Vessels

v Railway Sidings and Wagons

v Aircraft

Intangible Assets

v Software

WEBSITE DETAILS:

PRESS RELEASES

ESSAR STEEL INDIA COMMISSIONS 19 MW POWER PLANT AT HAZIRA

June 05, 2012

• Zero waste discharge plant: Uses waste heat as fuel in order to generate electricity
• Decreasing carbon footprint
• 19 MW of power: Equivalent power requirement for almost 10,000 urban homes
• Captive plant will reduce cost of power for the company

Hazira / Ahemdabad, India: Essar Steel India is committed to being a zero-waste company. In this endeavor it has commissioned a 19 MW Heat Recovery Power Plant at Hazira. The plant will use heat generated during the manufacturing process (Hot Briquetted Iron Waste Heat Recovery Boiler (HBI-WHR) and surplus steam from Blast Furnace Boilers) for electricity generation. The power generated by the plant will be used for internal consumption, thus making the Hazira Complex energy efficient and reducing the power cost for the company.

Mr. Dilip Oommen, MD and CEO, Essar Steel India, said, “We are a responsible steel producer, our focus is to have facilities which are both cost-efficient and environmentally friendly. It is a matter of pride for us that the entire process for this project from concept to commissioning, was carried out by Essar team.”

He further added that, the new plant is helping save the cost of generating 19 MW of power – enough power for almost 10,000 homes – which at today’s electricity prices provides extensive savings. This allows the company to help address the national power deficit by not drawing this power from the grid or using scarce natural resources.

The company would also benefit with the availability of carbon credits due to the reduction in emission of green house gases. Also, the company can utilize the power more effectively without any transmission losses or leakages of power due to the proximity of the plant in Hazira.

Essar Group has already created a similar facility at its Canadian operations at Essar Steel Algoma, where the company has a co-gen facility. With the skills learnt in Canada, Essar is replicating this success in India.

With our reduction of thermal emissions, generating power at a lower cost, better utilization of waste heat through production of electricity we are not only helping the environment but lowering our position on the cost curve. A true win-win situation.

About Essar Steel

Essar Steel, a 14 MTPA global producer of steel, is a fully integrated flat carbon steel manufacturer — with presence in Canada, USA, India and Indonesia. It is the most versatile flat steel producer with integrated facilities. It makes pipes and extra wide plates, as well as hot rolled, cold rolled, galvanized, color coated steel and pipe. It has an integrated distribution business with Service Centers and Steel Hypermarts. It operates seven Service Centers in India, with additional servicenter in international locations (Indonesia, UAE and United Kingdom) with an aggregate capacity of 5 million tonnes. Essar has the largest retail distribution network. Its products find wide acceptance in highly discerning consumer sectors such as automotive, white goods, construction, engineering and shipbuilding.

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 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 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.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.