MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	JSW STEEL LIMITED	Principal Name 1	Mrs. Savitri Devi Jindal
Status	Excellent	Principal Name 2	Mr. Sajjan Jindal
		Registration #	11-152925
Street Address	Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai – 400 026, Maharashtra, India
Established Date	15.03.1994	SIC Code	--
Telephone#	91-22-23513000 / 23520980 / 43437199 / 43437262	Business Style 1	Manufacturer
Fax #	91-22-23526400 / 23522600	Business Style 2	Exporter
Homepage	http://www.jsw.in	Product Name 1	Steel Plates
# of employees	8925 (Approximately)	Product Name 2	--
Paid up capital	Rs. 5631,800,000 /-	Product Name 3	--
Shareholders	Promoter and Promoter Group - 38.05 % Public - 61.95 %	Banking	Allahabad Bank
Public Limited Corp.	Yes	Business Period	19 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	A (60)
Related Company
Relation	Country	Company Name	CEO
Joint Venture	--	Vijayanagar Minerals Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	114042,200,000	Current Liabilities	165194,900,000
Inventories	51790,800,000	Long-term Liabilities	123022,200,000
Fixed Assets	271176,200,000	Other Liabilities	32719,100,000
Deferred Assets	0,000	Total Liabilities	320936,200,000
Invest& other Assets	68901,900,000	Retained Earnings	179343,100,000
		Net Worth	184974,900,000
Total Assets	505911,100,000	Total Liab. & Equity	505911,100,000
Total Assets (Previous Year)	415583,800,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	321226,600,000	Net Profit	16258,600,000
Sales(Previous yr)	233671,100,000	Net Profit(Prev.yr)	20106,700,000

MIRA INFORM REPORT

Report Date :

07.03.2013

IDENTIFICATION DETAILS

Name :	JSW STEEL LIMITED (w.e.f. 16.06.2005)

Formerly Known As :	JINDAL VIJAYNAGAR STEEL LIMITED

Registered Office :	Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai – 400 026, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	15.03.1994

Com. Reg. No.:	11-152925

Capital Investment / Paid-up Capital :	Rs. 5631.800 Millions

CIN No.: [Company Identification No.]	L27102MH1994PLC152925

TAN No.: [Tax Deduction & Collection Account No.]	MUMJ05285A / PNEJ05353F

PAN No.: [Permanent Account No.]	AAACJ4323N / AACT4323N

Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges

Line of Business :	Manufacturer, Exporter and Importer of Steel Plates.

No. of Employees :	8925 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (60)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 740000000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a reputed company having a fine track record. The financial position of the company appears to be sound and healthy. Directors are reported as well-experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payment terms are reported as regular and as per commitment. The company can be considered good for business dealings 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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	Short Term Bank Facilities : A1+
Rating Explanation	Very strong degree of safety it carry lowest credit risk
Date	06.09.2012

Rating Agency Name	CARE
Rating	Long Term Bank Facilities : AA
Rating Explanation	High degree of safety it carry very low 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.

INFORMATION DECLINED

MANAGEMENT NON CO-OPERATIVE (Tel. No. : 91-22-23513000)

LOCATIONS

Registered/ Regional Office:	Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai – 400 026, Maharashtra, India
Tel. No.:	91-22-23513000 / 23520980 / 43437199 / 43437262
Fax No.:	91-22-23526400 / 23522600
E-Mail :	jvsl.blr@sm3.sprintrpg.ems.vsnl.net.in admin.vijayanagar@jvsl.com lancy.varghese@jsw.in jvsl@jvsl.com ketan.patel@jsw.in
Website :	http://www.jsw.in

Corporate Office 1:	Victoria House, 2^nd Floor, Pandurang Budhkar Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel No. :	91-22-24927000/ 43437800
Email :	natalie.barretto@jsw.in

Corporate Office 2:	The Enclave, Maratha Udhog Bhavan, New Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel No. :	91-22-6783 8000
Fax No. :	91-22-2432 0740

Factory 1 :	Vijayanagar Works P.O. Vidyanagar, Toranagallu Village, Sandur Taluk, District Bellary- 583 275, Karnataka, India
Tel. No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138 / 250665

Factory 2 :	Vasind Works Shahapur Taluk, District Thane- 421 604, Maharashtra, India
Tel. No.:	91-2527-220022 to 025
Fax No.:	91-2527-220020 / 84 / 92

Factory 3 :	Tarapur Works MIDC Boisar, District Thane– 401 506, Maharashtra, India
Tel. No.:	91-2525-270147 / 270149
Fax No.:	91-2525-270148

Factory 4 :	Salem Works Pottaneri, M. Kalipatti Village, Mecheri Post, Mettur Taluk, District Salem- 636 453, Tamilnadu, India
Tel. No.:	91-4298-278400 to 404
Fax No.:	91-4298-278618

Factory 5 :	PO Vidyanagar, Toranagallu, District Bellary – 583275, Karnataka, India
Tel No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138/250665

Branches :	Located at :- · Karnataka · Tamilnadu · Andhra Pradesh · Coimbatore · New Delhi · Madhya Pradesh

Additional Main Office :	Located at: · Mumbai · Bangalore · Rajasthan

Overseas Office :	JSW Steel (USA) Inc. 5200 East Mc Kinney Road, Baytown , TEXAS 77523, U.S.A. Office : 1 - 281 - 383 - 5100 Fax : 1 - 281 - 383 - 1803 Website : www.jswsteelusa.com JSW Steel Service Centre (UK) Limited Lake Road , Leeway Industrial Estate, Newport, NP19 4WN, United Kingdom Tel: 44 - 1633290260 Fax: 44 - 1633290911 Website: www.jswsteel.co.uk

DIRECTORS

(AS ON 31.03.2011)

Name :	Mrs. Savitri Devi Jindal
Designation :	Chairperson

Name :	Mr. Sajjan Jindal
Designation :	Vice Chairman and Managing Director

Name :	Mr. Seshagiri Rao M.V.S.
Designation :	Joint Managing Director and Group Chief Finance Officer
Date of Birth/Age :	15.01.1958
Qualification :	AICWA, LCS, CAIIB, Diploma in Business Finance.
Date of Appointment :	06.04.1999

Name :	Dr. Vinod Nowal
Designation :	Director and Chief Finance Officer

Name :	Mr. Jayant Acharya
Designation :	Director (Commercial and Marketing)
Date of Birth/Age :	25.01.1963
Qualification :	BE (Chemical), M. Sc (Physics), MBA (Marketing).
Date of Appointment :	07.05.2009

Name :	Dr. Rajneesh Goel
Designation :	Nominee Director of KSIIDC

Name :	Mr. Yasushi Kurokawa
Designation :	Nominee Director of JFE Steel Corporation, Japan

Name :	Mrs. Zarin Daruwala
Designation :	Nominee Director of ICICI Bank Limited

Name :	Dr. S K Gupta
Designation :	Director

Name :	Mr. Anthony Paul Pedder
Designation :	Director

Name :	Dr. Vijay Kelkar
Designation :	Director

Name :	Mr. Uday M Chitale
Designation :	Director

Name :	Mr. Sudipto Sarkar
Designation :	Director
Date of Birth/Age :	21.03.1946
Qualification :	B.Sc. (Maths - Hons), BA (Law Tripos), LLM (International Law), MA (Law) Barrister, Gray’s Inn. London.
Date of Appointment :	09.05.2005

Name :	Mr. Kannan Vijayaraghavan
Designation :	Director
Date of Birth/Age :	04.05.1959
Qualification :	Fellow Member of the Institute of Chartered Accountants of India, Certified Management Consultant and Fellow of the Institute of Management Consultants.
Date of Appointment :	16.06.2008

KEY EXECUTIVES

Name :	Lancy Varghese
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholders	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3995054	1.79
Central Government / State Government(s)	907952	0.41
Bodies Corporate	74285508	33.29
Sub Total	79188514	35.49
(2) Foreign
Bodies Corporate	5704612	2.56
Sub Total	5704612	2.56
Total shareholding of Promoter and Promoter Group (A)	84893126	38.05
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4261582	1.91
Financial Institutions / Banks	7494183	3.36
Central Government / State Government(s)	1237500	0.55
Foreign Institutional Investors	43014416	19.28
Sub Total	56007681	25.10
(2) Non-Institutions
Bodies Corporate	10672154	4.78
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	13831659	6.20
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	5555092	2.49
Any Others (Specify)	52157488	23.38
Trusts	5000481	2.24
Foreign Corporate Bodies	44287203	19.85
Overseas Corporate Bodies	37650	0.02
Non Resident Indians	2832154	1.27
Sub Total	82216393	36.85
Total Public shareholding (B)	138224074	61.95
Total (A)+(B)	223117200	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)	223117200	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Steel Plates.

Products :

Item Code No. (ITC Code)	Product Description
72.08	Hot Rolled Steel Strips/ Sheets/ Plates
72.09	MS Cold Rolled Coils/ Sheet
72.10	MS Galvanized Plain/ Corrugated/Colour coated Coils/ Sheet
720690	Steel Billet
721490	Bar And Rods

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production

Ms Slabs	Tonnes	8300000	5659244
Hot Rolled Coils/Steel Plated/Sheets	Tonnes	6700000	5268577
Hot Rolled Steel Plates	Tonnes	320000	96210
Cold Rolled Coils / Sheet	Tonnes	1825000	1624572
Galvanised/Galvalum Coils / Sheet	Tonnes	925000	917328
Colour Coating Coils/Sheets	Tonnes	232000	176850
Steel Billets And Bloom	Tonnes	2500000	1769758
Long Rolled Products	Tonnes	2450000	1521867

NOTE:

1. Licensed capacity is not applicable in view of the Company’s products having been delicensed as per the licensing policy of the Government of India.

2. Installed capacity is as certified by the management and accepted by auditors, being a technical matter.

3. Production of Galvanized/ Galvalume Coils/ Sheets includes 85381 tonnes from third parties on a job work basis.

GENERAL INFORMATION

No. of Employees :

8925 (Approximately)

Bankers :

· Allahabad Bank

· Bank of Baroda

· Bank of India

· ICICI Bank Limited

· IDBI Bank Limited

· Indian Bank

· Indian Overseas Bank

· Punjab National Bank

· State Bank of India

· State Bank of Indore

· State Bank of Mysore

· State Bank of Patiala

· Union Bank of India

· Vijaya Bank

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Debentures
11 % Non Convertible Debentures of Rs.1.000 Million each	10000.000	0.000
10.25 % Non Convertible Debentures of Rs.1.000 Million each	5000.000	5000.000
10.60 % Non Convertible Debentures of Rs.1.000 Million each	3500.000	3500.000
10.10 % Non Convertible Debentures of Rs.1.000 Million each	10000.000	10000.000
11.82 % (Previous Year 10.20%) Non Convertible Debentures of Rs.1.000 Million each	146.600	230.300
11.82 % (Previous Year 10.20%) Non Convertible Debentures of Rs.1.000 Million each	253.500	331.500
7.10 % Non Convertible Debentures of Rs.1.000 Million each	0.000	5000.000

Term Loan
Rupee Term Loans from Banks	50734.500	28330.000
Foreign currency Term loans from Banks	10617.200	13639.100
Rupee Term Loans from Financial Institution	254.500	376.100

Working Capital Loans from Banks	1628.900	3342.400
Foreign currency loan from Banks	1534.600	0.000
Total	93669.800	69749.400


Banking Relations :	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants

Subsidiaries:	· JSW Steel (Netherlands) B.V. · JSW Steel (UK) Limited · Argent Independent Steel (Holdings) Limited · JSW Steel Service Centre (UK) Limited · JSW Steel Holding (USA) Inc. · JSW Steel (USA) Inc. · Periama Holdings, LLC · Purest Energy, LLC · Meadow Creek Minerals, LLC · Hutchinson Minerals, LLC · R.C. Minerals, LLC · Keenan Minerals, LLC · Peace Leasing, LLC · Prime Coal, LLC · Planck Holdings, LLC · Rolling S Augering, LLC · Periama Handling, LLC · Lower Hutchinson Minerals, LLC · Caretta Minerals, LLC · JSW Panama Holdings Corporation · Inversiones Eroush Limitada · Santa Fe Mining · Santa Fe Puerto S.A. · JSW Natural Resources Limited · JSW Natural Resources Mozambique Limitada · JSW ADMS Carvo Lda · JSW East Africa Limited · JSW Steel Processing Centres Limited · JSW Bengal Steel Limited · JSW Natural Resources India Limited · Barbil Beneficiation Company Limited · JSW Energy (Bengal) Limited · JSW Jharkhand Steel Limited · JSW Building Systems Limited · Amba River Coke Limited

Joint Venture :	· Vijayanagar Minerals Private Limited · Rohne Coal Company Private Limited · Geo Steel LLC · JSW Severfield Structures Limited · JSW Structural Metal Decking Limited · Gourangdih Coal Limited · JSW MI Steel Service Center Private Limited

Associates:	· Jindal Praxair Oxygen Company Private Limited · JSW Ispat Steel Limited

Related Parties :	· JSW Energy Limited · JSL Limited · JSW Realty and Infrastructure Private Limited · Jindal Saw Limited · Jindal Steel and Power Limited · Jindal South West Holdings Limited · JSOFT Solutions Limited · Jindal Industries Limited · JSW Cement Limited · JSW Jaigarh Port Limited · JSW Investments Private Limited · Reynold Traders Private Limited · Raj West Power Limited · JSW Power Trading Company Limited · JSW Aluminium Limited · P Jindal Foundation JSW Infrastructure Limited · South West Port Limited · JSW Techno Projects Management Limited · South West Mining Limited · JSL Architecture Limited · JSW Projects Limited · Sapphire Technologies Limited

CAPITAL STRUCTURE

After 25.07.2011

Authorised Capital : Rs.30000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.5021.521 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

2000000000	Equity shares	Rs.10/- each	Rs. 20000.000 millions
1000000000	Preference Shares	Rs.10/- each	Rs. 10000.000 millions

	Total		Rs. 30000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

223117200	Equity shares	Rs.10/-each	Rs. 2231.200 millions
	Add: Equity shares Forfeited		Rs. 610.300 millions
279034907	10% Cumulative Redeemable Preference Shares	Rs.10/-each	Rs. 2790.300 millions
	Total		Rs. 5631.800 Millions

Reconciliation of number of shares outstanding at the beginning and end of the year:

Particulars	31.03.2012

Equity (including shares represented by underlying GDRs)	223117200
Outstanding at the beginning of the year
Preference:
Outstanding at the beginning and at the end of the year	279034907

Rights, preferences and restrictions attached to Equity shares

The company has a single class of equity shares. Each shareholder is eligible for one vote per share held (other than the shares represented by underlying GDR's which do not carry a voting right). The dividend proposed by the Board of Directors is subject to the approval of the shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

26,00,938 (previous year 30,85,814) equity shares represent the shares underlying outstanding Global Depository Receipts (GDRs). Each GDR represents 1 underlying equity share.

Rights, preferences and restrictions attached to Preference shares

The company has a single class of preference shares. They are redeemable at par in four equal 'quarterly installments commencing from 15 December 2017. The shares carry a right to receive 10% dividend every year till redempton. In the event of liquidation, the preference shareholders are eligible to receive the outstanding amount after distribution of all other preferential amounts, in proportion to their shareholding.

Shareholders holding more than 5% shares in the company is set out below:

Equity (excluding shares represented by underlying GDRs)

JFE Steel Corporation	No of Shares %	33,467,580 15.00%	32,982,704 14.78%
Jindal South West Holdings Limited	No of Shares %	17,284,923 7.75%	17,284,923 7.75%
JSW Energy Investments Private Limited	No of Shares %	13,764,364 6.17%	13,764.364 6.17%
Preference
ICICI Bank Limited	No of Shares %	125,707,730 45.05%	125,707,730 45.05%
IDBI Bank Limited	No of Shares %	69,734,847 24.99%	69,734,847 24.99%
Life Insurance Corporation of India	No of Shares %	36,348,783 13.03%	36,348,783 13.03%
IFCI Limited	No of Shares %	21,262.362 7.62%	21.262,362 7.62%

Equity shares alloted as fully paid-up pursuant to contracts without payment being received in cash during the period of five years immediate preceding the date of the Balance Sheet are as under:

1,50,35,712 equity shares to the shareholders of the erstwhile Southern Iron and Steel Company Limited pursuant to a scheme of Amalgamation.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5631.800	5631.800	5271.100
2] Share Application Money		0.000	0.000	0.000
3] Share Warrants		0.000	5293.800	0.000
4] Reserves & Surplus		179343.100	161327.100	91792.300
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		184974.900	172252.700	97063.400
LOAN FUNDS
1] Secured Loans		93669.800	69749.400	89875.100
2] Unsecured Loans		29352.400	37723.900	25975.900
TOTAL BORROWING		123022.200	107473.300	115851.000
DEFERRED TAX LIABILITIES		30120.900	23170.400	19649.500

TOTAL		338118.000	302896.400	232563.900

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		271176.200	211202.700	168661.400
Capital work-in-progress		24767.700	56899.400	66842.700

INVESTMENT		44134.200	40988.100	17683.500
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51790.800	41384.100	25857.700
	Sundry Debtors	13620.600	8386.500	5632.500
	Cash & Bank Balances	29560.200	18868.000	2871.100
	Other Current Assets	15.800	0.800	0.000
	Loans & Advances	70845.600	37854.200	21233.900
Total Current Assets		165833.000	106493.600	55595.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	92542.500	60098.200	15893.500
	Other Current Liabilities	72652.400	48783.200	57683.200
	Provisions	2598.200	3806.000	2642.200
Total Current Liabilities		167793.100	112687.400	76218.900
Net Current Assets		(1960.100)	(6193.800)	(20623.700)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		338118.000	302896.400	232563.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	321226.600	233671.100	182024.800
		Other Income	1793.000	2345.100	5290.800
		TOTAL (A)	323019.600	236016.200	187315.600

Less	EXPENSES
		Cost of Material consumed	209601.100	148030.900	139295.800
		Purchase of traded goods	775.000	1822.300
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(2978.100)	(6829.800)
		Employee benefits expenses	6258.700	5344.700
		Other Expenses	51261.900	37534.000
		Exceptional items	8209.600	0.000
		TOTAL (B)	273128.200	185902.100	139295.800

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49891.400	50114.100	48019.800

Less	NET FINANCE CHARGES (D)		11864.100	8541.700	8589.200

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		38027.300	41572.400	39430.600

Less/ Add	DEPRECIATION/ AMORTISATION (F)		17081.700	13787.100	11234.100

	PROFIT BEFORE TAX (E-F) (G)		20945.600	27785.300	28196.500

Less	TAX (H)		4687.000	7678.600	7969.100

	PROFIT AFTER TAX (G-H) (I)		16258.600	20106.700	20227.400

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		27883.600	53277.800	38831.500

Less	APPROPRIATIONS
		Transfer to Debenture Redemption Reserve	NA	0.000	1250.000
		Transfer to Capital Redemption reserve		0.000	99.000
		Dividend on Preference Shares		279.000	289.200
		Proposed Final Dividend on Equity Shares		2733.200	1777.000
		Corporate Dividend Tax		488.700	343.100
		Transfer to General Reserve		42000.000	2022.800
	BALANCE CARRIED TO THE B/S		NA	27883.600	53277.800

	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	53752.200	33282.500	26837.800
		Sale of Carbon Credits	133.700	386.700	602.100
		Interest Income	1078.300	457.600	280.300
	TOTAL EARNINGS		54964.200	34126.800	27720.200

	IMPORTS
		Capital Goods	9755.300	14829.900	19358.500
		Raw Materials	123970.500	87326.400	63337.200
		Stores and Spare Parts	3723.900	2784.400	1728.200
	TOTAL IMPORTS		137449.700	104940.700	84423.900

	Earnings Per Share (Rs.)
	Basic		71.42	97.17	106.34
	Diluted		71.42	96.33	105.94

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter	31.12.2012 3^rdQuarter

Net Sales	90376.000	88709.000	82924.500
Total Expenditure	72648.100	73457.500	69788.400
PBIDT (Excl OI)	17727.900	15251.500	13136.100
Other Income	722.700	5006.400	566.100
Operating Profit	18450.600	20257.900	13702.200
Interest	4066.600	4207.500	4545.700
Exceptional Items	-5920.500	0.000	(3274.100)
PBDT	8463.500	16050.400	5882.400
Depreciation	4677.800	4811.700	4975.100
Profit Before Tax	3785.700	11238.700	907.300
Tax	1095.700	3016.100	(460.000)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	2690.000	8222.600	1367.300
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	2690.000	8222.600	1367.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.03	8.52	10.80

Net Profit Margin (PBT/Sales)	(%)	6.52	11.89	15.49

Return on Total Assets (PBT/Total Assets}	(%)	4.79	8.75	12.57

Return on Investment (ROI) (PBT/Networth)		0.11	0.16	0.29

Debt Equity Ratio (Total Liability/Networth)		0.67	0.62	0.84

Current Ratio (Current Asset/Current Liability)		0.99	0.95	0.73

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	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	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

FINANCIAL RESULTS

Standalone Results

The year was challenging due to non-availability of Iron ore caused by imposition of ban on Iron ore mining by the Honourable Supreme Court of India in the State of Karnataka. Inspite of this constraint the Company achieved a volume growth over previous year of 16% in crude steel production during the current year. It had achieved crude steel production of 7.429 million tonnes and volume of sales of 7.815 million tonnes. The growth in volumes could be achieved due to commissioning of the 3.2 mtpa Crude Steel Expansion Project at Vijayanagar Works in Q2 of 2011-12 enhancing the Crude Steel manufacturing capacity to 10 mtpa. The overall steel manufacturing capacity of the Company Stood at 11 mtpa. With the completion of this expansion project, the Company has scaled new heights as a leading player in the steel industry in the country. The Expansion facilities stabilized quickly and achieved hot metal production of 1.135 million tonnes during the current year, which worked out to around 72% of the Installed capacity.

The Gross Turnover and Net Turnover for the year stood at Rs. 346580.000 Millions and Rs. 320600.000 Millions, respectively, showing a growth of 38% and 39% over the previous year mainly driven by growth in volumes.

The operating EBIDTA for the year was Rs. 56310.000 Millions and operating EBIDTA margin for the year was 17.53%. The Company posted PAT of Rs. 16260.000 Millions after considering exceptional item (Foreign exchange loss) of Rs. 8210.000 Millions. Due to the unusual depreciation in the value of the Rupee against US Dollar during the previous fiscal, the net loss of Rs. 8210.000 Millions on restatement of foreign currency monetary items at close of the year has been considered by the Company to be exceptional in nature.

In view of the rulings viz permitting National Mineral Development Corporation (NMDC) to mine 1 million tonne per month to be supplied to steel industry and sale of around 25 million tonnes of Iron ore stock pile through E-Auction, the Company could operate the plant at about 80% capacity in the year under review. Had the constraints of Iron ore supply not been there, the performance could have been much higher.

PROJECTS AND EXPANSION PLANS

The progress made on various projects were as follows:

Vijayanagar Works

(a) Projects commissioned during FY 2011-12

The 3.2 mtpa expansion project at Vijayanagar works was completed and commissioned during the last financial year.

Other projects completed during the year include:

- 4.2 mtpa - Pellet Plant 2.

- 300 MW - Captive Power Plant (CPP 4).

(b) Projects under progress

- 2.3 mtpa – Cold Rolling Mill Complex, being executed in two phases, the first phase is expected to be commissioned in FY 2013-14 and second phase in FY 2014-15.

- 2nd Phase (1.5 mtpa) of New Hot Strip Mill, taking the rolling capacity to 5 mtpa by September 2012.

- 2nd Phase of Beneficiation Plant 2, taking total capacity to 20 mtpa by FY 2012-13 in phased manner.

(c) Projects proposed

- The Company has assessed the existing facilities at Vijayanagar works and started working on increasing plant capacity from 10 mtpa to 12 mtpa. Total project cost is about Rs. 2,695 crores The project is expected to be commissioned in FY 2013-14.

Salem Works

(a) Projects commissioned during F.Y. 2011-12

- Blooming mill phase 2 commissioned in June 2011, taking the total capacity to 0.5 mtpa. Ramping up of production is under progress.

(b) Projects under progress

- Installation of reducing and sizing block for capacity and quality enhancement of bar and rod Mill. Expected to be commissioned in Mar 13.

- Automatic inspection for blooming mill products to cater to reputed customers. Expected to be commissioned in Feb 13.

Vasind Works

(a) Projects commissioned during FY 2011-12

- Natural Gas pipeline project (completed during Feb, 2012)

Gas pipe line of 7.6 km was laid down along the National Highway, replacing use of natural gas in lieu of LPG/Furnace oil.

(b) Projects under progress

- Colour Coating Line Project

Two colour coating line with an aggregate capacity of 0.225 mtpa are in progress and to be commissioned in FY 2012-13.

Tarapur Works

Upcoming Projects in 2012-13

- Upgradation of Cold Rolling Mill (TM1) to enhance production capacity from 0.05 mtpa to 0.225 mtpa.

- New Galvanizing Line (CSD5) with dual products of Galvanised and Galvalume Steel with an annual capacity of 0.2 mtpa.

- Upgradation of Cold Rolling Mill (TM2) to enhance production capacity from 0.06 mtpa to 0.1 mtpa.

- Upgradation of Colour Coating Lines (CCL-1 and CCL-2) to enhance production capacity from 0.180 mtpa to 0.276 mtpa.

SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANIES

Indian subsidiaries

1. JSW Bengal Steel Limited (JSW Bengal), its Subsidiaries Barbil Beneficiation Company Limited, JSW Natural Resources India Limited and JSW Energy (Bengal) Limited (JSWEBL)

JSW Bengal Steel Limited achieved good progress in connection with setting up an integrated steel plant in the State of West Bengal. While 33 Kms boundary wall work was completed over 4300 acres of land at Salboni, JSWBSL commenced construction of residential complex named "Ankur" for employees to be accommodated during plant construction and operation. All major survey work has already been completed at the site. Power as well as water for construction are available at the site. A reputed Canadian and Chinese joint venture company, M/s. HATCH-CISDI International is preparing basic design and plant layout for a 10 mtpa integrated steel plant along with a 1,620 mw power plant at Salboni. The Company already received 75 mgd water allocation letter for sourcing water from Rupnarayana river and the route for laying a water pipeline has also been fi nalised. The work of ROW for the proposed 68 Kms water pipeline is in progress.

The drilling as well as three dimensional High Resolution Seismic Survey (3 DHRSS) have been successfully completed at Kulti-Sitarampur coal block by JSW Natural Resources India Ltd. In line with the MoEF clearance that has already been received for the steel plant, it is proposed to implement the project in phases, subject to satisfactory tie up of iron ore, to enable financial closure and approval of MoEF for mining activities.

Target date for start of first phase of commercial production in Bengal projects is FY 2015-16.

2. JSW Jharkhand Steel Limited

JSW Jharkhand Steel Limited was incorporated to set up a steel plant in the State of Jharkhand. The Company is pursuing to obtain various approvals/clearances for raw material linkages, land acquisition, environmental clearances, among others, for this project.

3. JSW Steel Processing Centres Limited (JSWSPCL)

JSW Steel Processing Centres Limited (JSWSPCL) is a 100% subsidiary of the Company. JSWSPCL was set up as a Steel Service Centre comprising HR/CR Slitter and cut to length facility with an annual slitting capacity of 5,00,000 tonnes. The Company processed 4,99,218 tonnes of steel during the FY 2011-12, as compared to 4,97,112 tonnes in the previous year.

During the previous year, JSWSPCL purchased three Slitting Lines and one Multi Strand Blanking lines from its fellow subsidiary JSW Steel Service Centre (UK) Limited. Out of which, the Company is in the process of commissioning one slitting line and identifying a suitable location to commission the remaining equipment.

4. Amba River Coke Limited (ARCL)

The Company has acquired 100% holding in ARCL to set up a 1 mtpa Coke oven to be supplied to JSW Ispat Steel Ltd. (JISL) under long term take or pay contract with return on equity of 25% to the Company. These projects are expected to be commissioned by March 2014.

It is also proposed to set up a 4 mtpa pellet plant in ARCL at an estimated project cost of Rs. 835 crores on similar terms as that of coke oven project. These projects will be taken up for implementation on receipt of requisite clearance and commissioned in 30 months.

Overseas Subsidiaries

1. JSW Steel (Netherlands) B.V. (JSW Netherlands)

JSW Netherlands is a holding Company for USA, UK, Chile and Kanya based subsidiaries. It also has 49% equity holding of Georgia-based Geo Steel LLC, incorporated under the laws of Georgia. The Company also invested in the plate and pipe mill in the US, coal mining assets in the US, iron ore mining concessions in Chile and fixed assets at UK through the following step down subsidiaries.

(a) JSW Steel Holding (USA) Inc. and its subsidiaries viz. JSW Steel (USA) Inc – Plate and Pipe Mill Operation and Periama Holdings LLC and its subsidiaries – West Virginia, USA based Coal Mining Operation.

Plate and Pipe Mill operation

During FY 2011-12, the Plate and Pipe Mill performance in the US has improved significantly as compared to that during previous year, mainly due to improvement in economic scenario, resulting in better capacity utilisation. In 2011- 12, the 3,31,763 net tones of plates and 66,168 net tones of pipes were produced with capacity utilisation of 33% and 12% respectively.

The Subsidiary Company undertook various debottlenecking and corrective measures in the production process, due to which it is expected that US operations would show improved performance.

Coal mining operation

JSW Steel Holding (USA) Inc. has 100% equity interest in coal mining concessions and barge load out facility in USA.

While some of the mines are currently operational, statutory clearance/permits for other mines are in advanced stage of approval.

It is expected to produce around 0.50 million tonnes of coal in the next financial year subject to approvals.

(b) JSW Panama Holdings Corporation and Chilean subsidiaries namely Inversiones Eurosh Limitada (IEL), Santa Fe Mining (SFM) and Santa Fe Puerto S.A (SFP)

During FY 2011-12, contract mining activity with a capacity of 1mtpa through dry process route was undertaken. The Company shipped twelve shipments of iron ore concentrate aggregating to 0.6 million tonnes. It is expected to produce around 1 million tonnes of iron ore concentrate in the next financial year.

Work on establishing a wet beneficiation plant is currently being pursued and necessary statutory and environmental approvals are awaited.

SFP, a subsidiary of SFM received maritime concession in April 2011 to develop a cape size port in North Caldera. The environmental and other regulatory approvals have been applied for and are being pursued with Authorities Concerned.

(c) JSW Steel East Africa Limited (JSWSEAL)

JSWSEAL was formed with the object of exploring mineral resources (manganese, iron ore and coal) and developing them to export in value-added form.

JSW Steel Netherlands BV holds 99% stake in JSWSEAL and JSW Steel (UK)Ltd holds the balance stake of 1%.

JSWSEAL, signed MOU on January 11, 2012 for exploration of manganese ore with Government of Kenya. The agreement gives it the right to explore manganese ore in the Coastal Province of Kenya (around 22,000 sq. km.).

2. JSW Natural Resources Limited (JSWNRL) and its subsidiaries JSW Natural Resources Mozambique Lda (JSWNRML), JSW ADMS Carvao Lda

JSW Natural Resources Limited was incorporated in Mauritius to acquire coal assets/other assets relating to the steel business.

JSW Natural Resources Limited formed a wholly- owned subsidiary – JSW

Natural Resources Mozambique Lda in Mozambique to acquire coal assets and engage in prospecting and exploring coal, iron ore and manganese.

JSW Natural Resources Mozambique Lda incorporated JSW ADMS Carvão Lda on October 8, 2010 wherein 85% stake is owned by JSWNRML. It has a mining licence in Zumbo District Tete Province. The Company initiated drilling exploration activities in this area.

C. Joint Venture Companies

1. Geo Steel LLC

Georgia-based Joint Venture Geo Steel LLC, in which the Company holds 49% equity through JSW Steel (Netherlands) B.V. set up a steel rolling mill in Georgia with a production capacity of 175,000 tonnes in Georgia. Geo Steel produced 113453 tonnes of rebars and 117818 tonnes of billets during 2011-12. The net turnover was USD 79.43 million.

2. Rohne Coal Company Private Limited

The Company holds 49% equity in Rohne Coal Company Pvt. Ltd. (JSW Group holds 69.01%, including that of the Company), which is a joint venture with three other partners (two partners from outside the Group). Forest clearance and mining lease proposal are being pursued with government authorities.

3. MJSJ Coal Limited

In terms of the Joint Venture Agreement to develop Utkal – A Gopal Prasad (West) thermal coal block in Odisha, the Company agreed to participate in the 11% equity of MJSJ Coal Limited, Odisha along with four other partners. The Government of India has allotted 1,520 acres of Gopal Prasad west area to MJSJ Coal Limited. Mahanadi Coalfi elds Ltd, a public sector company holds 60% of the equity.

4. Gourangdih Coal Limited

Gourangdih Coal Ltd (GCL) is a 50:50 Joint venture between JSW Steel Limited and Himachal EMTA Power Corporation Ltd (HEPL) incorporated to develop and mine coal from Gourangdih, ABC thermal coal block in West Bengal. It is currently working on pre-mining activities. A mining plan was submitted to government authorities and is under consideration.

5. Toshiba JSW Turbine and Generator Private Limited

Toshiba JSW Turbine and Generator Pvt. Ltd is a Joint Venture with a shareholding of 75% by Toshiba Corporation Ltd., Japan, 21.33% by JSW Energy Ltd. and 3.67% by the Company, to design, manufacture, market and maintain services of mid to large-size supercritical steam turbines and generators of size 500 MW to 1000 MW.

The main plan was inaugurated for operation in February 2012.

6. Vijayanagar Minerals Private Limited (VMPL)

During 2011-12, VMPL supplied 0.66 million tonnes of iron ore from

Thimmappanagudi Iron Ore Mines (TIOM), vis-à-vis 2.2 million tonnes in the last FY 2010-11.

As per the Honourable Supreme Court''s directive to stop all iron ore mining operations in Karnataka, mining activity of TIOM mines operated by VMPL has been stopped since July 29, 2011. VMPL''s operations and financial results were affected due to the above reasons.

7. JSW Severfield Structures Limited and its subsidiary JSW Structural Metal Decking Limited

JSW Severfield Structures Ltd (JSSL) set up a Greenfield project to design, fabricate and erect structural steelwork and ancillaries, including decking for construction projects with a total plant capacity of 35,000 tpa at Bellary in Karnataka. The Company produced a total of 20,384 tonnes during the year. The Company''s order book stood at Rs. 178 crores (33,916 tonnes) as on March 31, 2012.

JSW Structural Metal Decking Limited (JSWSMD), a subsidiary company of JSSL is engaged in the business of designing, roll forming and installation of structural metal decking and ancillaries, including shear connectors, for construction projects with a total plant capacity of 10,000 tpa at Bellary in Karnataka. It started its commercial production in October 2010. The Company has orders of around 1,33,914 square meters.

8. JSW MI Steel Service Center Private Limited (MISI JV)

JSW Steel and Marubeni-Itochu Steel signed a Joint Venture Agreement on September 23, 2011 to set up Steel Service Centers in India.

The JV Company, JSW MI Steel Service Center Pvt Ltd, proposes to set-up its first Steel Service Center in North India (NCR) with an initial installed capacity of 180,000 tpa (Phase-I) which will subsequently be enhanced to 500,000 tpa. The estimated project cost for Phase-I is pegged at Rs. 122 crores and the estimated completion time is 12 months from date of completion of land acquisition.

The service centre will be equiped to process fl at products such as hot rolled and coated products with a view to offer just in time solutions to the automative, white goods, construction and other value added segments.

Associate Companies

1. Jindal Praxair Oxygen Company Private Limited (JPOCPL)

The oxygen plants of JPOCPL have been working satisfactorily primarily to meet the requirements of steel plant operations at Vijayanagar Works. During 2011-12, the combined production of the oxygen plant module #1 and module # 2 of JPOCPL was: gaseous oxygen – 836 million Nm3; gaseous nitrogen – 275 million Nm3; Liquid oxygen – 25 million Nm3; Liquid nitrogen – 23 million Nm3 and Argon – 10 million Nm3.

2. JSW Ispat Steel Limited (JISL)

As approved by its members, the name of the Company was changed from Ispat Industries Limited to ''JSW Ispat Steel Limited'' w.e.f. 28.06.2011.

During the year under review, the Company produced 2.39 million tones of HR coils and capacity utilisation achieved was 73%. The sales volume was 2.75 million tonnes with EBITDA of Rs. 1,126 crores. The Net Loss for the corresponding periods after considering Exceptional items was Rs. 1,930 crores.

The Board of Directors has taken note of the matters to which the Auditors of JISL has drawn attention in their report, regarding overdue trade receivables amounting to Rs. 255.61 crores. The Board of Directors have also taken note that the management of JISL is confident of recovery and relying on this, no provisioning has been considered necessary by the Board in respect of this item.

AWARDS AND ACCOLADES

The Company and its employees received the following awards during the year:

1. EEPC National Award for Export Excellence awarded by EEPC Kolkata: Gold Trophy for top Exporter for the year 2009-10, received on November 03, 2011.

2. EEPC National Award for Export Excellence awarded by EEPC Kolkata: Star Performer for the year 2010-11 received on March 24, 2012.

3. FKCCI Export Excellence Awards awarded by FKCCI Karnataka: Best District Exporter Award for the year 2010-11, awarded on June 15, 2011.

4. Visvesvaraya Industrial Trade Centre State Award awarded by VITC Karnataka for the year 2009-10 and 2010-11 Gold Trophy for Best Exporter, received on March 23, 2012.

5. SPJIMR Marketing Impact Awards (SMIA) 2012 awarded by SP Jain Institute of Management and Research: Second Prize for Best Practices and Current Thinking in Marketing, awarded on January 14, 2012.

6. Dun and Bradstreet Information Services: Best Company in Steel sector based on Total Income, Net Profit, Net Worth, Export, Market Capitalisation, Net Profit Margin, Return on Net Worth, received on April 26, 2011.

7. Ashok Leyland: Outstanding Performance Award for the year 2010-11 received on April 20, 2011.

8. Whirlpool: Certificate of Appreciation for the year 2010-11, received in November 2011.

9. Brakes India: Certificate of Performance for the year 2010-11 received on November 11, 2011.

10. Hyundai: Appreciation Award for the year 2011- 12 received on March 22, 2012.

11. National Sustainability Award awarded by Indian Institute of Metals: 2nd prize in Integrated Steel Plants category for the year 2010-11 received on November 14, 2011.

12. CII-EXIM award 2011 awarded by Confederation of Indian Industries (CII): Commendation certificate for significant achievement, received on December 01, 2011.

13. International Convention on Quality Circle Chapters (ICQCC): Distinguished Category Award to "Genius Quality Circle" from SMS-1 received on September 14, 2011.

14. Spot Light Awards (Global Communication Competition) awarded by League of American Communication Professionals for its 2010-11 Annual Report- Bronze Award for excellence within its Competition Class.

15. EXIM Achievement Awards in the Category of Top 3 Exporter awarded by the Tamil Chamber of Commerce.

Individual and Team Recognitions:

16. 1st Prize to Ms. Anita Dunga for Oral Presentation in ''Iron and Steel'' Category for ''Study on Ladle Nozzle Choking during Liquid Steel Pouring from Ladle to Tundish at Continuous Casting'' at 65th Annual Technical Meeting, on November 16, 2011, at Hyderabad.

17. 3rd Prize to Mr. Pranav Kumar Tripathi for Poster Presentation in ''Iron and Steel'' Category for ''Optimisation of Submerged Entry Nozzle Design through ''Mathematical Modelling'' at the 65th Annual Technical Meeting, on November 16, 2011 at Hyderabad.

MANAGEMENT DISCUSSION AND ANALYSIS

Global economy

Economic performance

From a positive beginning in 2011, the global environment turned adverse in the second half of 2011 owing to the turmoil in the euro zone and  monetary  imbalances in emerging economies caused mainly by surging commodity prices. Capital  flows  to  developing  nations declined by  almost  half  in  2011  compared to 2010.

Europe  seemed  to  enter  a recessionary phase.  The  Euro  Zone  severely  impacted  economic  performance of its trade partners.  Growth  in  several major  developing countries (Brazil, India, and to a lesser extent  Russia,

South  Africa  and  Turkey) slowed partly in reaction  to  domestic  policy tightening.

Despite questions being raised by rating agencies on the outlook of the  US  economy, it delivered a heartening performance with declining unemployment,  rising retail sales and growing new home sales, among others.

Notwithstanding the relatively strong activity in the US and Japan,  global  economic  trade  and growth slowed sharply. Global GDP grew 3.9%  in  2011,  lower than 5.3% in 2010.

Industrial production

Global  industrial  production was impacted due to series  of  adversities.  Industrial  output growth declined in early 2011 against a marginal  growth in  the  second half of 2010 due to adverse weather in Europe and  the  US.

Besides, uncertainty relating to the sovereign debt concerns in high-income countries affected consumer confidence, delaying purchases of durable goods and businesses, which hampered an industrial recovery. Despite  volatililty in  the  global economy, (global trade volume  (merchandise  and  services) expanded 6.4% in 2011, which was 100 bps higher than the ten-year average)

Outlook

As  per World Economic Outlook, global economic growth is expected to  slow to 3.5% in 2012, largely because the euro area economy is expected to  trip into a mild recession in 2012.

Growth in emerging and developing economies is expected to average 5.7% - a drop from the 6.2% growth in 2011. Despite a substantial downward revision, developing Asia is still projected to grow at 7.3% in 2012.

Inflation in the advanced economies is likely to ease to 1.9% in 2012 (2.7% in  2011)  and  to  6.2%  in 2012 in  emerging  economies  (7.1%  in  2011) reflecting tempering of commodity prices due to subdued economic growth.

However  latent  risks  of geo-political  tensions  affecting  oil  market, disruptions in global bond and currency market arising out of rising budget deficits  and weather extremeties can prove deterrents to improving  global

prospects.Indian economy

Managing   growth  and  price  stability  are  the  major   challenges   in macroeconomic policy making. In 2011-12, India found itself in the heart of these   conflicting  demands  without  corresponding  initiatives   towards economic growth.

As a result, the Indian economy grew at 6.5% in 2011-12, down from 8.4%  in 2010-11. The GDP growth in 2011-12 was the lowest in the past nine years.

Global  factors  such as euro zone crisis,  geopolitical  disturbances  and weather extremities contributed to the domestic economic slowdown. Domestic factors like monetary tightening and raising repo rate to control inflation slowed industrial investment and growth.

At the sectoral level, agriculture and allied sectors grew 2.8% in  2011-12 against  7%  in 2010-11; the services sector grew 8.9% in  2011-12  against 9.3%  in  2010-11; the industrial sector growth slowed to 3.4%  in  2011-12 against  7.2% in 2010-11 and was primarily responsible for the slowdown  of India`s economic progression. The economy`s resilience to shocks was  owing to  the  services  sector, which enjoyed the largest share  with  the  most consistent growth. Industrial growth which crumbled, is likely to pickup by government`s  National  Manufacturing  Policy to target  a  25%  share  for Manufacturing in GDP is implemented.

Industrial sector - the stumbling block

Headline  WPI  inflation  remained high at around 9% during  2011  for  the following reasons:

*  Higher prices of primary products (vegetables, eggs, meat and fish)  due to increasing demand from growing middle class population.

* Persistently high international crude petroleum prices.

* Increasing global commodity prices.

To counter inflation, RBI tightened the monetary policy by hiking  interest rates  13  times  between March 2010 and  October  2011,  making  borrowing expensive,  consequently  infrastructure projects become unviable  and  the manufacturing  sector  growth slowed during 2011-12. The  fixed  investment rate (Gross Domestic Fixed Capital Formation) declined to 29.5% in  2011-12 from 30.4% in 2010-11, impacting the steel demand.

Rupee depreciation

The  Indian  rupee  was  under stress as  overseas  investors  pared  their exposure  to  Asia`s  third-largest  economy,  resulting  in  net   inflows remaining under US$300 million in 2011. The rupee lost more than 14% of its value during the year, making it one of the worst performing currencies  in Asia,  eroding India Inc.`s profitability, widening India`s  trade  deficit and adversely impacting India`s Current Account Deficit.

Estimates for 2012-13

The  government estimates a 7.6% GDP growth in 2012-13. However,  inflation will  continue to be a significant challenge for the government  especially due  to  the  recent hikes in excise duty, service  tax,  fuel  prices  and railway freight.

PLANT OPERATIONS

JSW  Steel  is  India`s largest integrated steel  manufacturer  in  private  sector by capacity (11 mtpa) across four manufacturing locations:

*  Vijayanagar  Works  (10 mtpa integrated  steel  facility),  the  world`s largest landlocked integrated steel plant

*  Salem Works (1 mtpa integrated facility, rolling out long  products  for niche applications), the largest unit in India dedicated to special steels

*  Tarapur  and Vasind (value-added coated flat products), referred  to  as downstream facilities

The Company is among a few coveted integrated  steel  producers  with  a presence across the value chain of flats and longs.

2011-12 in retrospect

The government`s ban on iron-ore mining in Karnataka (July 2011) affected production at Vijayanagar and Salem units. Despite this constraint, the Company increased crude steel and rolled products (flats and longs) output.

The  operational  problem  in  the blast  furnaces  at  Vijayanagar  Works, primarily  due to an inferior quality of iron ore, impacted volume  growth. Crude steel production stood at 7.43 Million Tonnes against 6.43 Million Tonnes in 2010-11.

The Company, however, reported some remarkable achievements: a number of products received approvals from globally-respected customers, new high-value products were developed to substitute imported grades and the benefit of these is likely to reflect in 2012-13. Besides, a number of projects were commissioned to strengthen the Company`s operations.

(1) Vijayanagar Works - an aspiration

Vijayanagar Works is the Company`s flagship steel making facility with a 10 mtpa steel making capacity and unique related features.

* The first steel manufacturing unit with Corex technology in India.

* The only steel manufacturing unit to positively and responsibly alter the climatic condition of the neighbouring areas.

* Globally acknowledged as an innovation centre for the Indian steel sector

*  Comprises the best technologies in every manufacturing unit,  making  it one of the most efficient global steel plant (in terms of conversion cost)

This state-of-the-art facility is driven by JSW`s  corporate  philosophy: `Question every convention, replace the often quoted `why` with the  bolder `why not`.`

Preparatory section

Steel  making  has  undergone  a  shift  primarily  due  to  an  inadequate availability  of quality raw materials at a reasonable cost. As a  result, technologies and practices now utilise every ounce of resources.

The transformation is visible in a simple reality: the primary feed to  the hot metal making furnaces has changed from coke/coal and iron ore lumps  to prepared  burden  (precooked inputs). The primary role of  the  preparatory section is grouped under three critical heads:

*  Improve sub-standard raw material quality to make it usable  as  furnace feed.

* Utilise inputs which were earlier considered waste, namely coal and iron ore fines.

*  Utilise  process  waste  to ensure that  every  gram  of  metal  derives commercial value.

Beneficiation plant

JSW is the first steel company in India to develop a large-scale, low-grade iron ore beneficiation process. The unit processes low-grade ore with  high gangue  content.  It  ensures iron ore availability  for  steel  production despite  depleting reserves of high grade iron ore. The basic  and  process flow  of beneficiation plant 2 was completed in-house with support  of  the equipment manufacturer.

Key initiatives in 2011-12

*  Initiated  process changes for the beneficiation of low grade  iron  ore (Fe2O3 56-57%).

* Improved beneficiated ore (superior chemistry and consistent grain  size) which improved sinter and pellet quality.

Road map for 2012-13

Commission Beneficiation Plant phase 2, ensuring that more than 80% of  the ore used in steel manufacture is beneficiated using low grade fines.

Coke oven

Vijayanagar Works boasts of the single largest coke manufacturing unit in a single  facility with an annual capacity at 4.62 mtpa. In the  coke  making section,  the Company adopted the vibro-compacting technology at  its  coke oven units, for improved product quality and higher productivity.  Besides, the indigenously developed pilot coke oven plant - the first-of-its-kind in India  -  facilitated  coal  blending from diverse  sources  to  develop  a superior product and optimise production costs.

Achievements, 2011-12

* Commissioned two coke oven batteries, expanding coke production to 11,300 TPD.

* Increased coke production 51% over the 2010-11 level; coke purchase  from the open market declined substantially saving production costs.

*  Emerged as the first Indian steel producer to successfully produce  coke with Mozambique coals and Teck coals from Canada.

Key initiatives in 2011-12

* Developed a number of coal sources (4-Countries) to de-risk an  excessive dependence on a single source.

*  Coal blend changed in coke making, which reduced ash content in coke  by about  100  bps, reducing the fuel rate in the blast  furnace  during  iron making.

* Improved coal: coke ratio in coke making from 1.41 in 2010-11 to 1.37.

Road map for 2012-13

*  Optimise  the  coal  mix procurement  from  various  sources  to  reduce production costs.

Pellet plant

The  pellet  plant  was originally conceived as the  feeder  unit  for  the Company`s  iron making corex unit at Vijayanagar Works. Over time,  pellets emerged as an important constituent of the blast furnace burden,  improving productivity and output.

The  Company possesses the capacity to manufacture 9.2 mtpa pellets  across two  units.  This  infrastructure  comprises  India`s  first  dry   process pelletising plant, a technology ideally suited to soft iron in the Bellary-Hospet  region. The technological superiority of the unit is  reflected  in the following:

*  It is the only plant to use corex gas instead of costly furnace oil  and natural gas.

*  It  is only pellet plant worldwide which makes pellets out of  iron  ore with high alumina content.

Achievements, 2011-12

*  Commissioned  Pellet Plant 2 with a capacity of 4.2  mtpa  in  December, 2011.

Key initiatives in 2011-12

* Stabilised operations of Pellet Plant 2.

* Increased the use of beneficiated ore (consistent grain size and superior chemistry), improving pellet quality and blast furnace productivity,  while reducing fuel and slag rates.

*  Increased use of pellets in the blast furnace burden feed increased  the use of nut coke in the blast furnace.

Road map for 2012-13

* Achieve optimum capacity utilisation at pellet plants to increase  pellet utilisation in the feed for the iron making zone.

Sinter plant

The Company can cumulatively manufacture 12.95 mtpa sinter as feed for  its blast  furnaces. Its third sinter plant (5.75 mtpa) is the largest  of  its kind in India. The cumulative sinter production can provide an average  80% feed for all four blast furnaces.

Achievements, 2011-12

*  Increased  sinter composition in the blast furnace burden  from  67%  in 2010-11  to  about  80%, reducing the fuel rate in the  blast  furnace  and improving product quality.

* Commissioned Sinter Plant 4 (2.60 mtpa) in July 2011 .

*  Sinter  Plant  3 production peaked at 4.9 lac  tonnes  in  January  2012 (higher than the labeled monthly capacity).

Key initiatives in 2011-12

*  Stabilised  Sinter Plant 4 and ramped production to  76.5%  of  capacity utilisation; return fines from in-house customers decline.

*  Commissioned  a 1.4 mtpa lime plant to provide  consistent  and  quality

calcined lime input for improved sinter quality.

*  Rectified issues with the process fan and ESPs in Sinter Plants 1  and  2,  improving plant availability.

Road map for 2012-13

* Consolidate operations of all four units

*  Install  a  mixing unit for homogenous material mixing of  feed  to  the sinter plants.

*  Install a waste heat recovery mechanism in the sinter cooling  areas  of sinter  plants 1, 2 and 3, to generate steam for use in the  blast  furnace and other shop-floor processes.

Iron making zone

In  this zone, finite natural resources namely iron ore and coal are  burnt together to make iron also known as hot metal. The zone is the largest cost centre  for  any steel manufacturer. Hence, the focus here is  to  minimise resource  consumption, reduce costs and ensure maximum  plant  availability for highest output.

JSW  Steel  is credited to have walked the road less traveled.  When  steel companies globally adopted the tried and tested blast furnace route for hot metal,  JSW emerged as the first Indian company to use the  untested  Corex technology and only the third in the world. Today, it is the best-run Corex unit  globally, emerging as a learning institution for companies  ready  to adopt  this  green  technology.  For  successive  expansions,  the  Company deployed blast furnaces and is credited with commissioning India`s  largest blast furnaces.

Currently,  the  Vijayanagar works has a 9.80 mtpa hot  metal  capacity  of which  1.6  mtpa is through the Corex route, the balance  comes  from  four blast furnaces.

Achievements, 2011-12

* Increased hot metal production 16% from 6.19 million tonnes in 2010-11 to 7.21 million tonnes.

*  Achieved  highest  monthly production of 92,807  tonnes  (2.70  t/m3/day productivity) in BF-1.

* Achieved highest power generation from TRT: 12.28 MW (Nov 2011).

* Achieved highest monthly production of 254,869 tonnes at BF-4 in December  2011 with high PCI average rate 135 kg/thm.

Key initiatives in 2011-12

a) The 3.8 mtpa facilities (comprising the Corex units and BF-1and2)

* Altered the slag regime through an optimum mix of inputs to maintain the  optimum carbon rate.

*  Re-routed the water treatment plant underground pipelines to  above  the  ground level to eliminate underground water leakages.

*  Commissioned Tunnel Ventilation systems (Corex-1and2) for  easy  operation  and maintenance activities.

* Installed higher capacity (15 M3) softener plant at Corex-2.

* Used 44,000 tonnes under-size coke (Nut Coke) in hot metal manufacture in the Corex units.

* Introduced variable speed drives for ID fans at coal drying plant in the

Corex unit,saving energy.

*  Installed  the  copper  cooling plate in BF-1  to  enhance  cooling  and eliminate hot spot/ cracking of furnace shell.

* Commissioned the Boiler 1 and 2 common steam header.

*  Upgraded  the SCADA monitoring system from 250 screens to  an  unlimited version  for real-time monitoring of the progress of ongoing projects  like additional  de-dusting system and sinter fines transportation conveyors  at BF#2.

* Installed a hydraulically-operated tilting runner in Cast House #4 of BF-1 to enhance its availability.

* Introduced a standby hydraulic drive for furnace charging conveyor at BF-1; enhancing plant availability.

* Modified the air-cooling system in the main iron trough cooling system in BF-1 to enhance runner life.

*  Increased sinter ratio in BF-1 burden to 69% and in BF-2 burden to  78%, increasing furnace productivity.

*  Commissioned the U-seal for GCP network line to minimise shut  down  and start up time.

b) The 6.8 mtpa facilities (BF-3) - India`s largest blast furnace

* Used anthracite coal for PCI Injection, optimising production cost.

* Charged small sinter in the furnace, reducing return fines and production costs.

* Installed 5mm screens to improve net sinter availability.

*  Commissioned  and  stabilised operations of Mill for  coal  grinding  to improve PCI Coal availability for BF-3and4.

* Commissioned and stabilised operations of the Oxycoal Injection System.

c) The 10 mtpa facilities (BF-4)

* Installed diaphragm type instruments in BF-4 SGP, reducing breakdowns and

improving equipment availability.

* Converted the manual ON/OFF switching system for BF-4 lighting into  auto mode managed by PLC controls, optimising energy consumption.

* Reduced water consumption by regularly recirculating seepage water to the cooling tower.

*  Fine tuned the BF-4 Top Recovery Turbine to maintain steady furnace  top pressure; improved power generation of TRT by maintaining a steady load  on the generator.

* Provided emergency power supply to the common blower house from BF-3  and

BF-4,  ensuring  emergency  power to the blower  auxiliaries  during  power failure.

Road map for 2012-13

a) The 3.8 mtpa facilities

*  Install  the  Aerial Gas distribution system at  Corex  Reduction  Shaft Bustle;  upgrading  the DCS operating systems from  UNIX  to  Windows-based system in Corex-1and2.

*  Upgrade  WTP  MCC and DCS Remote I/O panels at Corex-2  for  better  plant availability

* Upgrade Corex-2 SGP PLC (MP200) to DCS (AC450) for better speed and plant availability

* Change the charge distribution system in BF-2 to Bell less top (BLT).

*  Upgrade the BF-1 Turbo Blower to BF-2 Turbo Blowers efficiency;  upgrade BF-1 boiler.

b) The 6.8 mtpa facilities (BF-3)

* Commission Stove-4 to increase hot blast temperature.

* Commission online granulated slag transport system.

c) The 10 mtpa facilities (BF-4)

* Achieve more than 95% slag granulation.

* Replace GB-03 in SGP (EAST) with belt conveyer.

Steelmaking section

Hot  metal  emerging from Corex and Blast Furnace can-not be  used  as  such. There are undesirable impurities which are present, needs to  be  removed.

Also for each application separate chemistry is required.

A steelmaking section has two units combined into one.

*  One,  where the hot metal is cleaned of impurities  -primarily  sulphur,

phosphorus  and  elements  of  air which  damage  the  strength  and  other qualities of steel.

*  Two,  where like a large chemistry work shop where  various  grades  are created  by  adding  alloys in a particular combination  to  produce  steel suited for specified applications.

The  steelmaking  section  at Vijayanagar Works is unique  for  its  volume management  capability. It is India`s only steel melting shop which  has  a capacity  to  produces  9.80  mtpa of steel with  a  combination  of  seven converters and seven casters (SMS infrastructure under Project Cheetah  and Project Falcon).

Achievements, 2011-12

* Commissioned Converters and Casters in April 2011 to enhance  steelmaking capacity at Vijayanagar to 10 mtpa.

* Non-conformity declined from 3.93% in 2010-11 to 1.50%.

* Successfully completed four heats of auto grade steel earlier imported.

*  Achieved  102  heats  on  January 19, 2012 in  SMS  2,  a  benchmark  in operational efficiency.

* Evolved the product mix in favour of value-added products.

*  Commissioned a 0.2 mtpa mill-scale briquetting facility, which  will  be used as a coolant in steelmaking. It is also an important waste  management and environment management initiative.

Key initiatives in 2011-12

*  Introduced 22 product grades - two for long products, seven API  grades, six IF grades and the rest being transport and export grades.

* Improved the life of the ID fan in SMS 1 from about 300400 heats to about

2,000 heats

* Altered the rollers being used in the SMS units, enhancing roller life.

* Stabilised operations of SMS 2 through intelligent equipment  management, facilitating  proper material flow between ladle furnaces and  casters  and ensured optimum plant utilisation.

*  Utilised  slurry  and  dust from the  SMS  equipment  along  with  flux; evaporated the mixture to generate feed for the micro-pelletisation unit.

*   Implemented  close  to  50  improvement  projects  suggested  by   JFE, strengthening production process and improving performance parameters.

Road map for 2012-13

*  Design  software  for automated  equipment  management  (matching  ladle furnaces with casters) to maximise steel output.

*  Introduce  a  ladle  furnace  and a caster in  SMS  1  to  increase  the steelmaking capacity of that unit.

*  Increase the weight per heat to 180 kgs from the current average of  165

kgs.

*  Install  a  sub-lance online temperature  and  quality  measurement  and correction system to improve productivity by 1.5 heats per day per caster.

*  Entered  into a partnership for an improved waste processing  system  to scientifically  separate  iron content from slag in the  SMS  facilities  - improving iron recovery.

*  Improve  the  desulphurisation process to eliminate LHF with  the  RH  -

resulting in superior steelmaking and cost saving.

Rolling section

These  facilities add value to basic steel forms namely slabs, billets  and blooms  (output  from  the steel making units)  to  create  user-convenient forms;  product  grades  (thickness  and  sizes)  are  customised  to  user applications;  mill productivity is of prime importance to product  quality and organisational profitability.

The uniqueness of the rolling mill at Vijaynagar Works is its capability to produce  the  widest  product range in the long  and  flats  segments.  For example:

* HSM 2 is the widest hot strip mill in India, capable of rolling  products more  than 2 metres wide and a thickness range between 1.2 mm to  25.4  mm, creating a huge product basket.

* The CRM complex is capable of rolling the widest product range,  catering to diverse and niche applications namely auto grade steel (the outer  body, IF steel, among others).

* The BRM/Rebar mill produces a wide TMT bars basket between 8 mm to 40 mm.

* The WRM produces a wide product range from 5.5mm to 22mm and highest coil weight of 2.5 tonnes.

Hot  strip mill: The Company possesses two hot strip mills with a  combined label capacity of 6.7 mtpa. The first unit (HSM 1) is capable of rolling up to  1350  mm width while the second unit (HSM 2) upto a width of  2,100  mm which  is  the widest mill in India, and technologically  superior  to  the first  mill, positioning it as the first mill-of-its-kind in  India.  These units  possess capabilities that create an unmatched product basket  -  the largest by any Indian steel manufacturer.

Achievements, 2011-12

* Rolled auto grade steel in the unit which was otherwise imported.

*  Optimised gas consumption from 305 Mcal per tonne of steel to  285  Mcal per tonne of steel largely due to better furnace operation and  maintenance practices in HSM 1

* Improved yield by 0.2%, cobbles.

* HSM-2 plant operated at higher than the labeled capacity in some months.

*  Achieved a prime yield of 98.55% against 94.94% in 2010-11; reduced  the cobble rate.

Key initiatives in 2011-12

*  Replaced  conventional rolls with HSS rolls in HSM 1  (superior  rolls), optimised  roll  consumption,  minimising  changeover  time  and  improving product and surface quality

*  Installed  a  fume exhaust system at the finishing stand  in  HSM  1  to capture dust generated, an environment management initiative.

*  Installed an IMS (Isotope Measuring System) gauge at HSM-1  to  minimise shape-related defects in the product.

*  Completed Level 2 automation in reheating furnace of HSM 2 in  September 2011and streamlined furnace operations which reduced heating losses.

*  Implemented 8-10 projects in HSM 2 where manual work was  replaced  with automation  and  additional  interlocks  were  added  to  streamline  plant operations.

* Implemented SPTS module (Level 3 automation) in HSM 2 - all modules  from order to dispatch - it captured realtime data on the system.

* Implemented the coil yard management IT solution at the HSM2 coil yard  - the  coil  yard is monitored on a realtime basis, every  finished  coil  is mapped,  coils stacked in the stock yard are remotely identified  based  on diverse  parameters  (product specification,  customer  name,  destination, among  others), these are populated on the dashboard of the crane  operator for accurate outward dispatch - eliminating incorrect material movement and improving operational safety by eliminating manual intervention.

Road map for 2012-13

* Install a 1 mtpa hot skin pass mill for rolling auto grades as  customers require products with close tolerance (shape and dimension tolerance).

*  Commission  a high-end grinding machine with an  online  inspection  and grinding facility

* Implement a crop-end optimisation project to improve prime yield.

* Implement the coil yard management solution in HSM 1 coil yard.

* Implement Phase II at HSM 2; add a reheating furnace, a roughing mill,  a

finishing mill and a coiler which will expand the unit`s operating capacity from 3.50 mtpa to 5 mtpa.

*  Install  an online surface inspection equipment in HSM 2  for  real-time material  inspection - essential for automotive customers who demand  close tolerance levels.

*  Create a slab tracking system similar to the coil tracking  solution  in HSM 2.

Cold  rolling  mill:  This  cold  rolling  mill  is  state-of-the-art  with contemporary  technology,  positioning  it as among the  few  of  its  kind globally.  It is the first-of-its-kind in India with  complete  automation. This  is the first global instance of a single-stand skin pass mill in  the electrolytic  line. The shape-metre in the tail end of the skin  pass  mill for superior flatness to the rolled products is a pioneering technology  in India and a rare feature in the global steel industry.

Achievements, 2011-12

* Rolled out four new grades successfully for the outer body of automobiles for global OEMs, a first time by JSW Steel.

* Commercialised five new grades for internal automobile components.

* Certified for ISO/TS 16949:2009 quality management system - mandatory for supply to the automotive industry.

* Improved prime yield from 90.19% in 2010-11 to 90.79%.

* Optimised roll and rolling oil consumption significantly, thus optimising production costs.

Key initiatives in 2011-12

* Underwent intensive process and technology training/ know-how from JFE to  produce  outer  body  steel grades (with extremely  stringent  surface  and  quality requirement).

*  Implemented  more  than 50 continual improvement  projects  focusing  on productivity, quality, cost, delivery and safety-related issues.

Road map for 2012-13

* Increase auto grade steel volumes for internal components.

* Commercialise auto grade steel for outer body panels.

Wire rod mill: The Company`s wire rod mill has a number of unique  features  which positions it as a new benchmark in manufacturing wire rods in India

*  It  is the fastest of its kind in India (rolling speed at 110m/  sec  in  5.5mm).

*  It develops the largest product range (5.5 mm - 22 mm) and provides  the  maximum yield.

*  It is also the only mill in India with retarded normal  and  accelerated  cooling setups air cooling conveyor, allowing it to roll high carbon  steel seamlessly.

* It is the only Indian unit which manufactures wire rods with a  tolerance level +/- 0.10 mm in diameter and +/-0.15mm ovality.

* It manufactures cold headed grade for the high-end bright bar industry  - making JSW the only company in India to offer this grade.

*  It produces 2.5T/coil, the heaviest in India, and can produce 22 mm  dia coil which is also the highest wire rod coil size in the country.

Achievements, 2011-12

* Increased average monthly production by 9%.

*  Improved  plant  utilisation from 72.71% to  78.49%;  power  consumption decline by 12 kwh/tonne and cobbles reduced by 0.27%.

*  Launched a new grade in the electrode steel segment which  received  BIS certification.

Key initiatives in 2011-12

Increased   the  production  of  thinner  sizes,   strengthening   business profitability.

* Increased production volumes for electrode grade steel.

* Adopted unique maintenance practices which significantly reduced cobbles, reduced   breakdowns, increased  mill  availability  and   reduced   power consumption.

* Increased roll hardness after collaborating with vendors, increasing roll life, reducing roll consumption and saving changeover time.

Road map for 2012-13

*  Increase  production  of value-added products with a  special  focus  on electrode grades and high-carbon grades.

*  Install a wire tying compactor which will consume in-house wire  against strapping  (purchased  from  vendors) to pack finished products  -  a  cost saving initiative.

* Install section gauges on the intermediate and finishing rolls, resulting in perfect sizes of the end product and lesser cobble generation.

Bar  rod mill: This is the highest speed and widest range bar rod  mill  in India, capable of manufacturing a wide product mix (TMT, angle,  engineered rounds, square round corners) and in multiple sizes (from 8mm to 40mm). The versatility extends to the product strength - the mill can develop products up to a maximum strength capability of 1150 mpa. Additionally, the mill  is equipped  with  slit technology which forms a horizontal 8, which  is  then slit  to make two re-bars at a time, doubling productivity of smaller  size TMT  bars (8 mm, 10 mm, 12mm and 16 mm). Through this mill,  JSW  pioneered this technology globally.

Achievements, 2011-12

* Grew average monthly production by 60%, gross and prime yields  increased 109 bps and 229 bps respectively.

*  Improved plant utilisation by 10%; power consumption declined    by   36

kwh/tonne,  and  cobbles reduced by 0.66%.

* Manufactured 500D grade TMT rods (earthquake-resistant).

* Commenced commercial supply of corrosion-resistant steel grade TMT bars.

Key initiatives in 2011-12

*  Added  a water box in the mill for small sizes,  increasing  mill  speed (from  25 mtrs per second to 30 mtrs per second) and  productivity  without generating cobbles (prevalent in manufacturing thinner sizes).

* Adopted a length optimisation practice, installed a software to calculate the  length of the entire rod and cut the length in a manner  than  reduced tail ends.

* Reduced shear length at the multiple rolling stands, optimising head  and tail end wastage and improving yield.

*  Optimised  process  parameters  in  maintaining  closer  yield  strength tolerances  -  this increased mill speed and ensured that  no  product  was rejected at the customers end.

*  Changed  the  roll  pass design and steel grade  used  for  the  roller, increasing its working life minimising roll changing time and reducing roll consumption.

* Adopted unique maintenance practices. Road map for 2012-13

*  Add  a  water box to the mill for thicker sizes (25  mm  and  above)  to increase mill productivity and product quality

*  Modify  the  single rolling process for thicker sized rods  (20  mm)  to accommodate  the  slitting  technique -  this  will  significantly  enhance production

*  Install a billet welder which will weld billets  together,  facilitating continuous rolling, eliminate tail ends and improve gross yield

* Expand furnace capacity to match the unit`s rolling capacity.

(2) Salem - India`s largest special steel unit (Rolled longs segment)

Salem   works  is  a  1  mtpa  integrated  steel  manufacturing   facility, specialising   in  manufacturing  high  value-added  steel   for   critical application in the automobile and power sectors. This unit focuses on value addition in the long steel segment.

Achievements, 2011-12

*  Increased bar and rod mill production by 1.5% from 0.341 million  tonnes in  2010-11  to 0.343 million tonnes; blooming and billet  mill  production increased  by  254% from 0.028 million tonnes in 2010-11 to  0.099  million tonnes.

*  Increased sinter productivity to 1.50 t/m2/hr (above designed  capacity) from  1.23 t/m2/hr by innovative methods, reducing lump ore consumption  in BF.

* Increased pulverised coal injection in blast furnace from 100 Kg/tonne of hot metal in 2010-11 to 125 kg/tonne of hot metal.

* Increased charge to bloom yield at steelmaking shops from 85% to 85.75%.

* Commissioned Phase II of the blooming mill facility in June 2011.

*  Reduced specific plant energy consumption from 8.5 Gcal/tonne  of  crude steel (April 2011) to 7.5 Gcal/tonne of steel (February 2012) (inclusive of Captive Power Plant and Air Separation Plant).

*  Generated 30MW of power (23MW in 2010-11) through the waste  heat  steam generation system by accurate process control, improved ID fans design  and modified battery - 3; at coke oven plant set a new benchmark for the unit.

*  Achieved a 99% availability of the CPP plant excluding planned  stoppage through improved operation and maintenance practices.

*  Received  approvals from Indian and overseas manufacturer and  from  the railways for spring steels.

Key initiatives in 2011-12

Preparatory section

*  Increased  usage of low cost coal up to 15% in the coal  blend  (earlier 10%) for coke-making, reducing coke cost.

*  Introduced anthracite coal as sinter feed to overcome the fuel  shortage (coke breeze) in the sinter plant.

*  Utilised  settling  pond dust of the coke  oven  (containing  about  35% carbon) in sinter making.

*  Used crushed EOF slag as hearth layer in a innovative technique  (patent applied  for) in December 2011, which was further increased by 30%  by  the end of the year.

*  Increased  the use of burnt lime in the sinter  feed,  improving  sinter quality  (permeability) and in turn increased blast furnace productivity  - burnt  lime powder addition stood at 40 kgs per tonne against the  industry average of 25 kgs per tonne.

*  Increased sinter usage in the blast furnace from 60% in 2010-11 to  70%, enhancing blast furnace productivity and product quality.

Iron and steelmaking sections

* Modified supersonic lance operations which improved oxygen efficiency and minimised  loss; minimised metal loss during flying-tundish  operations  in continuous  casting  by accurate process control - these  factors  improved steel productivity.

*  Vaccum  degassed  83% of heats to increase  alloy  steel  production  in response to the growing demands from the automotive and energy sectors.

*  Introduced  the 4-port nozzle to improve centre soundness of  `as  cast` structure  of continuous cast blooms; this reduced internal  rejections  of blooms at the blooming mill.

Rolling section

* Ramped up Bar and Rod Mill (BRM) production to an average of 1,050 TPD.

*  Modified  the  cooling bed at the BRM,  improving  surface  quality  and increasing  plant  availability;  overall  product  quality  increased   as rejections declined from 3% of production in 2010-11 to about 0.6%.

*  Introduced  tungsten  carbide rings in the finishing stand  of  the  BRM facility  for flats which increased roll life from 100 tonnes per  pass  to 400 tonnes per pass.

*  Minimised  head  end  material loss from 3.5  mtrs  to  about  150  cms, enhancing plant productivity.

*  Implemented suitable modifications in the reversible mill (part  of  the blooming and billet mill), strengthening its capability to generate a wider product basket.

*  Produced  10,908  tonnes  of spring steel flats  in  Jan  2012  -highest production volume by the unit in a single month for spring steel flats.

Product development in 2011-12

* Ultra low sulfur steel for sour gas pipelines.

* T 22 - alloy steel for boilers with IBR approval.

* Developed new grades like 2CrMo (for Ashok Leyland, Chennai), MHM+B  (for BEML,  Bangalore),  30MnB4 (for Blue stamping,  Faridabad),  40CrMo4H  (for Bharat  Forge),  10B35 wire rods (for Sundaram Fasteners) and  SMn443  (for Bharat Forge).

*  Developed  bearing  grade steel and supplied samples  to  customers  for approval; received approval for 2-3 grades of bearing steel from customers.

*  Developed  large  global  and  Indian  auto-component  manufacturers  as customers,  received product approvals from them; commercial production  to commence in 2012-13.

* Received approvals from Hyundai (through ILGIN) and Ford Motors  (through

Sundaram Fastners) for multiple special grades.

*  Developed  new sections like 101.6 x11.11mm;  76.2x26.95mm;  100x23mm  - Parabolic  springs  - 80x28, 80x30, 80x24mm, 75x10mm; 90x20mm -  for  Kamaz Vectra. 30mm wire rods through GC for fastener application and 56mm bars at BRM.

*  Established  RandD sub-centre with approvals from  the  Indian  government (three patent applications filed already).

Project implementation

*  Commissioned  a  120/40  T crane at the SMS  unit  to  improve  material handling of molten steel.

* Initiated trials of the new automatic inspection line in the BRM unit for bars <60 mm.

*  Initiated the commissioning of a waste heat recovery boiler at the  coke oven units which is expected to generate about 6-7 MW of power.

* Purchased a loco to facilitate hot metal transfer from the blast  furnace to the steel melting shop.

*  Extended the shed for lime storage, increasing material storage  at  the plant  site  and  eliminated  demurrage  charges  otherwise  paid  to  port authorities.

*  Commissioned a liquid nitrogen system in the air separation plant  as  a backup  system for the EOF and SMS units; minimised plant stoppages due  to the shutdown of the air separation unit.

Road map for 2012-13

*  Receive  approvals from OEMs in the automotive,  heavy  engineering  and other sectors.

*  Increase capacity utilisation of the blooming mill and increase  special steel production.

* Extend the two bays at the SMS unit.

*  Complete  the  shed extension at the  blooming  mill,  facilitating  the storage of increased finished products.

*  Complete online automated inspection system (Phase II) for the  blooming mill.

* Extend the material and finished goods storage shed.

*  Install the reducing and sizing block (Kocks Block) at the BRM  unit  to ensure  that size, dimensions and surface quality are within the  stringent tolerance levels specified by OEMs.

* Concrete all roads within the plant.

* Install a wagon tippler and railway siding inside the plant for  seamless

movement of incoming material.

*  Install a new boiler in the coke oven unit which will enhance  the  WHRB steam generation.

*  Utilise sensible heat from coke ovens to reduce the moisture content  in final coke.

*  Secure  product  approvals from large global  and  Indian  consumers  of special steels which are under different stages of evaluation

*  Enter  into  new special steel grades which cater  to  diverse  sectoral applications

(3) Downstream units - Special steel units (Rolled flats segment)

JSW`s Tarapur and Vasind facilities convert steel into branded steel. These plants source  steel  slabs  and  HR  Coil/  CR  Coil  from  the  flagship Vijayanagar  facility  and  offer a diverse product  basket  comprising  HR plates,  CRCA  products,  galvanised, plain  and  corrugated  products  and colour-coated  products  for  multi-sectoral applications  which  are  sold either through the Company`s retail network.

JSW  Steel possesses India`s one of the largest galvanised steel  capacity;it   is   the  only  Indian  facility  with   the   prestigious   Galvalume certification;  its colour-coated facility offers more than 200  shades  of

colour-coated  galvanised and galvalume products; it provides any  material shade on-demand within three weeks.

Achievements, 2011-12

Tarapur

*  Achieved the highest galvanising and Galvalume production at  4.66  lacs tonnes.  It includes 1.20 lac tonnes Galvalume products which was also  the highest ever.

* Produced the largest volume of galvanising export hard steel at 1.65 lacs tones.

*  Registered the highest production of colour coated product at 1.77  lacs tones.

Vasind

*  Grew  GI production by 6% from 4.03 lacs tonnes in 201011 to  4.29  lacs tonnes; yield improved by 0.6% over the previous year`s benchmark.

*  Converted the furnaces of CGL1, CGL2, HRM, ARP and other utilities  like alloy furnace, hot air drier to use natural gas (R-LNG) in February 2012  - a cleaner (free from CO2 and moisture) and cost-effective fuel.

Key initiatives in 2011-12

Tarapur

* Enhanced the capacity of CSD4 galvanising line which produces  galvanised hard steel for exports.

* Installed VVVF drives at TM2 in fume exhaust blower, coolant pump,  motor ventilation blower and fume exhaust blower in TM6; power consumption in the mills is reduced.

*  Optimise operational process and increased efficiency with  highest-ever average  line  speeds;  reduced  the  power  and  LPG  consumption  by  3.8 units/tonne and 1.6 Kgs/tonne respectively

* Achieved the highest-ever plant utilisation, installed VVVF drive in  the pump house and blowers; replaced some underloaded motors from delta to star

- as a result, power and LPG consumption reduced in the colour-coated  line by 2.3 units/tonne and 2.6 Kgs/tonne respectively.

* Installed VVVF drive in the condensate extraction pump; reduced auxiliary power consumption in the power plant.

Vasind

*  Converted the radiant tube furnace firing to pulse firing system in  the galvanising  lines  which  improved heating performance  and  reduced  fuel consumption.

*  Welded  together  the radiant tube flanges in the  RTF  section  of  the galvanising  lines (earlier bolted together) which eliminated leakages  and improved furnace health.

*  Installed  doctored scrappers to remove adhere zinc  on  briddle  rolls; reduced dent defects and increased yields.

* Initiated work on installing two colour coating lines for appliance grade products  (75,000 tpa capacity) and commercial grade products (150,000  tpa

capacity) to meet the expanding market demand.

*  Commissioned  the  pickling  steam  condensate  recovery  system   which optimised fuel consumption.

*  Implemented  numerous  energy conservation  initiatives  towards  energy conservation; such efforts were appreciated by the Confederation of  Indian Industry  during  its energy audit under the `Perform, Achieve  and  Trade` scheme.

Tarapur

* Upgrade Cold Rolling Mill -TM1 with annual capacity of 0.225 mtpa.

*  New  Galvanising  Line  - CSD5 with  dual  products  of  galvanised  and

Galvalume Steel with annual capacity of 0.2 mtpa.

*  Upgrade Cold Rolling Mill- TM2 from DC drives to AC drives  to  increase production from 0.06 mtap to 0.1 mtpa.

*  Upgrade  colour  coating  lines  - (CCL1 and  CCL2)  with  RT  to  enhance production capacity from 0.18 mtpa to 0.276 mtap.

Vasind

*  Commission  railway  siding to facilitate  seamless  and  cost-effective transportation of raw materials and finished goods.

* Commission of two new colour-coated lines by January 2013.

*  Implement the CGL1 modification to make DD, EDD and IF grade GI to  meet market  needs. Commission the inline Skin Pass Mill,  furnace  modification and inline oiler by September 2012.

UNSECURED LOAN

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Bonds
2,744 Zero Coupon Foreign Currency Convertible Bonds (FCCB) of USD 1,00,000 each	0.000	12252.000

Term Loan
Rupee Term Loans from Banks	0.000	9000.000
Foreign currency Term loans from Banks	22373.300	1339.500
Long Term Advance from a Customer	1284.800	3564.000

Deferred Payment Liabilities
Deferred Sales Tax Loan	1116.500	1116.500

Foreign currency loan from Banks	4577.800	10451.900
Total	29352.400	37723.900

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2012

(Rs. In Millions)

Particulars	Unaudited	Unaudited	Unaudited
Particulars	Quarter Ended	Quarter Ended	Half Year Ended
	31.12.2012	30.09.2012	31.12.2012
Income from operations
a) Sale of Products
- Domestic Turnover	76559.500	75377.900	235428.700
- Export Turnover	14649.400	21194.600	51450.300
Total	91208.900	96572.500	286879.000
Less: Excise Duly	8459.800	8235.200	25490.900
Net Sales	82749.100	88337.300	261388.100
b) Other Operating Income	175.400	371.700	621.400
Total Income from operations (net) {a+b}	82924.500	88709.000	262009.500
Expenses
a) Cost of materials consumed	53379.000	61895.800	173207.500
b) Changes in inventories of finished goods, work-in-progress and stock-in-trade	157.800	(5348.600)	(7064.700)
c) Employer benefits expense	1604.100	1758.500	5104.200
d) Depreciation and amortisation expense	4975.100	4811.700	14464.600
e) Power and Fuel	4926.200	4959.100	15005.300
f) Other Expenses	9721.300	10194.700	29641.700
Total Expenses	74763.500	78269.200	230358.600
Profit from Operations before Other income. Finance Costs and Exceptional item	8161.000	10439.800	31650.900
Other Income	566.100	782.600	2071.400
Profit before Finance Costs and Exceptional Items	8727.100	11222.400	33722.300
Finance Costs	4545.700	4207.500	12819.800
Profit after Finance Costs bat before Exceptional Items	4181.400	7014.900	20902.500
Exceptional Items	(3274.100)	4223.800	(4970.800)
Profit before Tax	907.300	11238.700	15931.700
Tax Expense	(460.000)	3016.100	3651.800
Net Profit after Tax	1367.300	8222.600	12279.900
Paid up Equity Share Capital (face value of Rs. 10 per share)	2231.200	2231.200	2231.200
Reserves excluding Revaluation Reserves
Earnings per share (EPS)
- Basic (Rs.)	5.76	36.49	53.95
- Diluted (Rs.)	5.76	36.49	53.95
Debt Service Coverage Ratio		--
Interest Service Coverage Ratio		--
Public shareholding
- Number of shares	138224074	138224074	138224074
- Percentage of shareholding	61.95%	61.95%	61.95%
- Promoters and Promoter Group Shareholding	84893126	84893126	84893126
a) Pledged/Encumbered
- Number of shares	42261673	42060673	42261673
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	49.78%	49.55	49.78%
- Percentage of shares (as a % of the total share capital of the company)	18.94%	18.85	18.94%
b) Non-encumbered
- Number of shares	42631453	42832453	42631453
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	50.22%	50.45	50.22%
- Percentage of shares (as a % of the total share capital of the company)	19.11%	19.20	19.11%

(B) INVESTOR COMPLAINTS	3 Months Ended 31.12.2012
Pending at the beginning of the quarter	-
Received during the quarter	88
Disposed of during the quarter	88
Remaining unresolved at the end of the quarter	-

Note :

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars		Unaudited	Unaudited	Unaudited
		Quarter Ended	Quarter Ended	Half Year Ended
		31.12.2012	30.09.2012	31.12.2012
1	Revenue by Business Segment: Steel Power	84205.000 9836.700	90887.800 10154.200	266890.200 30630.900
	Total	94041.700	101042.000	297521.100
	I ,ess: In tor segment revenue	11117.200	12333.000	35511.600
	l	82924.500	88709.000	262009.500
2	Segment results before Finance Costs and tax: Steel Power	3020.000 2466.400	12245.800 2418.300	19844.400 7435.700
	Total Less: Unallocable items Finance Costs Unallocable expense net of unallocable income	5486.400 4545.700 33.400	14664.100 4207.500 (782.100)	27280.100 12819.800 (1471.400)
	Profit before Tax	907.300	11238.700	15931.700
3	Segment Capital Employed : ( Segment assets less Segment liabilities ) Steel Power Unallocated	322974.500 20050.200 (146846.200)	302769.900 19468.100 (126679.800)	322974.500 20050.200 (146846.200)
	Total	196178.500	195558.200	196178.500

The Company is primarily engaged in the business of manufacture and sale of Iron and Steel Products. The Company has identified two primary business segments, namely, Steel and Power (used mainly for captive consumption), which in the ( ontext of Acc ounting Standard 17 on "Segment Reporting" constitute reportable segments.

2. Exceptional Items :

Due to the significant movement in the value of the rupee against US dollar, the net foreign exchange gain / (loss) has been considered by the Company as exceptional in nature- Q3: Rs.(2674.100 millions), Q2:Rs. 4223.800 millions, Q3 previous year: Rs. (5001.100 millions), YTD (43708 lacs), YTD previous year Rs. (10201.300 millions), Previous financial year (82096 lacs).

In respect of the Company's long term, strategic investment in one of its subsidiaries, JSW Steel (USA) Inc., the Company periodically reviews and assesses its business plans and expected future cash flows. The Company has also considered a recent independent valuation / internal preliminary assessments of a significant portion of its underlying tangible assets and is in the process of making a detailed assessment of the fair values of the net assets. However, since the subsidiary may have a longer gestation period than originally envisaged, the Company has concluded that it will be prudent at this stage to provide for at close an amount of Rs. 600.000 millions, considered as an exceptional item, against the carrying amounts of the investment and loans of Rs. 30794.700 millions.

3. The Company has commenced commercial production of Phase II of its new Hot Strip Mill at Vijaynagar Works with effect from 15 December 2012 adding 1.5 MTPA to the existing HR Coil production capacity.

4. During the quarter, the Company has made additional investments aggregating Rs. 692.000 millions in subsidiary, associate and joint venture companies.

5. The Board of Directors of the Company on 1 September 2012 approved a Composite Scheme of Amalgamation and Arrangement under section 391 to 394 of the Companies Act, 1956 amongst JSW Steel Limited, JSW Ispat Steel Limited, JSW Building Systems Limited, JSW Steel Coated Products Limited (formerly Maharashtra Sponge Iron Limited) and their respective shareholders and creditors with 1 July 2012 being the appointed date. No accounting impact of the same has been given in the results above as the scheme is pending for approvals from shareholders and Bombay High Court and is yet to be made effective.

6. Paid up equity share capital does not include an amount of Rs. 610.300 millions being the amount originally paid up on the equity shares forfeited in an earlier year.

7. Comparative financial information has been regrouped and reclassified, wherever necessary, to correspond to the figures of the current quarter / nine months.

8. The auditors of the Company have carried out a Limited Review of the Standalone Financial Results for the quarter and nine months ended 31 December 2012 in compliance with Clause 41 of the Listing Agreement. The Standalone financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 28 January 2013.

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture And Fixtures

· Vehicles and Aircrafts

· Software

PRESS RELEASE

JSW STEEL REPORTS CONSOLIDATED PROFIT OF RS.667 CRORES FOR 9 MONTHS ENDED DECEMBER 2012

13.02.2013

Consolidated Financial Performance:

JSW Steel reported a Net Sales of Rs. 88660.000 millions for Q3 FY 2012-13 showing a growth of 5% as compared to corresponding quarter of previous year. Net Sales during nine months ended 31^st Dec 2012 increased by 18% to Rs. 282430.000 millions relative to that of previous year.

Operating EBITDA for Q3 FY'13 and 9M FY'13 was Rs. 13310.000 millions and Rs. 47710.000 millions respectively showing growth of 1% and 13% compared to corresponding period of previous year. Net Loss for Q3 FY'13 was T 74 crores and Net profit for 9M FY'13 was Rs. 6670.000 millions. The consolidated loss of Rs. 740.000 millions for the Quarter was primarily due to losses reported by Associate company JSW Ispat Steel Limited.

The Company's consolidated net total debt gearing stood at 1.15 (as against 1.04 as on 30.09.2012).

Subsidiaries / Associates performance:

US Plate and Pipe Mill operation:

During Q3 FY'13, Capacity Utilization at US plate and pipe mill was 33% for plates and 16% for pipes. The Production in Q3 FY13 of Plates and Pipes were 0.08 million net tonnes and 0.02 million net tonnes respectively. As the realization for all steel products fell sharply in USA during the Quarter, the Company has incurred operating EBIDTA loss of US $ 0.76 Million for the Quarter. However the cumulative operating EBIDTA for 9 months ended December 2012 was positive at US S 8.52 Million.

Mining operation:

During Q3 FY'13, the Iron ore mining company in Chile made three shipments aggregating 0.22 million tonnes and the coal mining company in US made shipments of 0.008 million tonnes.

JSW Ispat Steel Ltd. (JSWISL):

HR Coils production during Oct'12 to Dec'12 quarter was 0.65 million tonnes with capacity utilization of 79%, Operating EBITDA was Rs. 2460.000 millions and Net loss was Rs. 1310.000 millions after considering Forex loss of t 83 crores on restatement of foreign currency monetary items which was considered by the Company as an exceptional item.

About JSW Steel Limited

JSW Steel Ltd., belonging to JSW group, part of the O P Jindal Group, is one of the lowest cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, port facilities, Aluminium, Cement and Information Technology. JSW Steel Limited is engaged in manufacture of flat and long products viz. H R Coils, C R Coils, Galvanised/Galvalume products, Colour Coated Products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to about US $ 10 billion in less than two decades. JSW Steel Limited is one of the largest galvanizing and colour coating production capacity in the country and is the largest exporter of galvanized products with presence in over 100 countries across five continents.

MORE DOWNSIDE IN JSW ENERGY: SUDARSHAN SUKHANI

FEB 26, 2013

More downside in JSW Energy, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "The last support levels for JSW Steel have cracked. The entire Jindal group - the charts are showing that the end of the decline is not over, almost all the stocks are promising lower levels."

He further added, "JSW Energy had big rally and then a decline that was a V-shaped decline, up one day and suddenly starts falling the next day and keeps on falling. The final support levels were broken yesterday that suggests that much more downside is coming."

At 09:48 hrs JSW Energy was quoting at Rs 57.85, down Rs 0.80, or 1.36%. It has touched an intraday high of Rs 58.40 and an intraday low of Rs 57.60.

The company's trailing 12-month (TTM) EPS was at Rs 5.40 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 10.71. The latest book value of the company is Rs 37.55 per share. At current value, the price-to-book value of the company was 1.54. The dividend yield of the company was 0.86%.

BUDGET 2013 LIVE: INTRODUCING DIRECT TAX CODE BILL IS GOOD, SAYS JSW STEEL

FEBRUARY 28 2013

Seshagiri Rao,Jt Managing Director, JSW Steel on Union Budget 2013-14

The budget, with the limited availability of fiscal space, attempted to bring fiscal consolidation with lower fiscal deficit of 4.8% and simultaneously made higher allocations to various schemes to spur investments.

Announcing 15 percent incentive for acquisition and installation of new plant and machinery by manufacturing companies during the period beginning from 1st April 2013 and ending 31st March 2015 is a welcome step to boost the investment.

Higher allocation of 29.4 percent towards plan expenditure and increased outlays for social infrastructure, education, rural development, health and urban development are also expected to stimulate economic activity.

As most of the projects are stalled due to regulatory and bureaucratic delays, the expectations from the budget to ease the process of clearances is not met since the effectiveness of Cabinet Committee on Investment is yet to be established.

It is a matter of concern that the total non-plan revenue expenditure particularly interest payment and subsidy remain at elevated levels. It is also challenging to achieve an increase of 19 percent in tax revenues when the economy is slowing down and there are no immediate signs of recovery.

However, lower fiscal deficit, announcement of introduction of DTC bill in this Steelbudget session and possible GST rollout are encouraging take outs from this budget.

AVOID JSW STEEL, TATA STEEL, SAIL: SP TULSIAN

FEBRUARY 18, 2013

SP Tulsian, sptulsian.com advises traders to avoid JSW Steel, Tata Steel and SAIL .

Tulsian told CNBC-TV18, “I am not firstly impressed by the Tata Steel numbers. If I place four shares in that category that is ferrous steel - SAIL, JSW Steel, Tata Steel all three are positive today and the fourth player that is Jindal Steel and Power is trading negative.”

He further added, “The sector, ferrous steel seems to have bottomed out definitely I will not advised buying Tata Steel at these level. This could be short covering because on the anticipation of the bad results, the kind of results the company has posted it was expected and because of that lot of shorts have seen build up. Same thing has happened in case of Steel Authority. There also similar pattern we are seeing now probably the stock is. So, upside we are seeing in Tata Steel by about 2 percent or so may not really last for very long time because of the negative perception continuous to remain on the sector so, definitely clear avoid for all the four stocks falling in this sector.”

WELCOME MOVE FROM RBI; NEED MORE CRR CUTS: JSW STEEL

JAN 29, 2013

Meeting expectations, the Reserve Bank of India slashed its key policy rate , the repo rate by 25 basis points to 7.75 percent in its third quarter monetary policy review. Along with this, the central bank cut cash reserve ratio (CRR) or the portion of deposits banks keep with RBI, by 25 bps to 4 percent. This reduction will inject Rs 18,000 crore additional liquidity into the system.

Seshagiri Rao, Joint MD & Group CFO of JSW Steel said that the rate cut was anticipated and it is a welcome move. However, he feels the need of the hour would be to inject more liquidity into the system through more CRR cuts.

Here is the edited transcript of the interview on CNBC-TV18.

Q: Mr. Krishna Kumar of State Bank of India (SBI) as well as Mr. Seshadri of Bank of India (BOI) just said that they are both expecting rates to fall, both deposit and lending rates and probably 25 basis points. What are your first thoughts? If this is the impact that the credit policy is likely to have on your money and my money are you a happy man?

A: The expectation before yesterday was that the rate cut would be to the extent of at least 0.5 percent, but after RBI’s yesterday’s policy release it was indicating that it can be in the range of 0.25 percent. But, it is welcome that they have at least cut 0.25 percent, even though the need of the hour today is to have more cuts in interest rates and more cuts in Cash Reserve Ratio (CRR).

When the liquidity shortfall in the market is over Rs 100,000 crore, as an industry we are seeing a huge liquidity constraint in the retail market and also small and medium enterprises (SMEs). It is quite evident and it is also decreasing the demand to a large extent. Therefore, injection of more liquidity is the need of the hour once again. So CRR cut of 0.25 percent even though is welcome, is not adequate in my view.

Q: Do you think life will become somewhat easier if the borrowing cost for you ancillary makers, SME makers, for any of your buyers and suppliers falls by 25 bps? Even companies like you and especially other infrastructure companies are ridden with debt. Will this somewhat make balance sheet management easier for you?

A: It is a feel good factor as far as this cut of 0.25 percent is concerned, but what is very important is how quickly and swiftly this will be transmitted to the borrowers by the banking system.

Banks have been reducing the deposit rates in the last few months. We are not seeing a huge amount of cut as far as the borrowing rates for the borrowers are concerned. When the RBI has already cut 0.25 percent, there can be more cuts in future, this transmission to the borrowers by way of lending at a lower rate is what is required right now.

Q: It is quite possible that in the run up to March, you are likely to get another cut from what the Governor is saying as of now. He has indicated a limited possibility of rate cuts, so another cut is certainly in the work. What do you think will be the bearing on your interest cost itself and will that spur you into spending a little more on capex?

A: Today as RBI has indicated in their policy document, there is an output gap. So there is a capacity in every sector, but there is not enough demand in the marketplace. These capacities can be used to the full extent only when the demand picks up.

How can demand pick up? Demand can pick up only by creating enough liquidity in the marketplace through monetary policy and also by reducing interest rates which can be affordable to the consumer. So these are very, very important steps. Capex is next one where investment cycle would come back and where fiscal policy also should support the monetary policy to achieve it.

As on date, in every sector, we are seeing capacities being created, there is no pricing power with the industry and at the same time demand is not there in the marketplace. So demand potentially is there, but that is getting reduced because monetary policy is not supporting, because liquidity is not adequate in the system and the interest rates are unaffordable.

Therefore, there is a need for RBI to look into these aspects and take more steps in pumping liquidity in the market and reducing interest rates is very, very important.

JSW ISPAT MERGER APPROVED BY JSW STEEL SHAREHOLDERS

JANUARY 31, 2013

JSW Steel today said its shareholders have approved merger of JSW Ispat Steel with itself, paving the way for the company to become second largest steel producer in the country.

In a filing to the BSE, the Sajjan Jindal-led company said that 99.99 percent shareholders voted in favour of merging JSW Ispat with the company in the meeting, held yesterday.

Now, a formal nod of the Bombay High Court is required to complete the merger process. Post merger, JSW Steel will have an annual production capacity of 14.3 million tonnes and become second largest domestic producer after SAIL.

According to the merger plan, shareholders of JSW Ispat will get one JSW Steel share for every 72 shares they hold. Moreover, JSW Ispat will transfer its Kalmeshwar undertaking and JSW Steel will transfer its downstream undertaking to JSW Steel Coated Products. Besides, JSW Building Systems will also be merged with JSW Steel.

Announcing the merger in September, JSW Steel chairman Sajjan Jindal had said that "this merger will give us a lot of synergy in operation and economies of scale. We can now go for brown-field expansion at Vijayanagar in Karnataka and Dolvi in Maharashtra."

Besides, it will also reduce the cost of borrowing for JSW Ispat and the merged entity is likely to get Rs 250 crore benefit from it. Moreover, the net debt level of the merged entity would be around Rs 25,200 crore with a debt to equity ratio of 1:1.15.

Post-merger, promoters of JSW Steel will hold 35.12 percent in the merged entity, while company's second largest shareholder JFE Steel holding will come down to 14.92 percent. JFE had 15 percent stake in JSW Steel till the time of merger announcement.

JSW Steel had acquired 41 percent stake in debt-ridden Ispat Industries from Pramod and Vinod Mittal, brothers of the steel czar L N Mittal, in December 2010 for about Rs 2,157 crore. Ispat Industries was subsequently named as JSW Ispat.

JSW Steel later increased its stake to 46.75 percent and remains the single-largest shareholder in JSW Ispat. The Mittal brothers will own around 3 percent stake in the merged entity. Before the merger announcement, the Mittal brothers had nearly 20 percent stake in JSW Ispat.

The trigger for the merger was JSW Ispat clocking a net profit of Rs 478.24 crore during the April-June quarter of 2012, which was its first one in last few years.

After returning to profit making, JSW Ispat would now be eligible to lay claim of deferred tax benefits of about Rs 2,088 crore, which would be a huge gain to JSW Steel.

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.54.54
UK Pound	1	Rs.88.05
Euro	1	Rs.72.29

INFORMATION DETAILS

Information Gathered by :	SVA

Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		60

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.

MIRA INFORM REPORT

51790.800

41384.100

25857.700

13620.600

8386.500

5632.500

29560.200

18868.000

2871.100

15.800

0.800

0.000

70845.600

37854.200

21233.900

165833.000

106493.600

55595.200

92542.500

60098.200

15893.500

72652.400

48783.200

57683.200

2598.200

3806.000

2642.200

167793.100

112687.400

76218.900

(1960.100)

(6193.800)

(20623.700)

5.03

8.52

10.80

6.52

11.89

15.49

4.79

8.75

12.57

0.11

0.16

0.29

0.67

0.62

0.84

0.99

0.95

0.73

Unit