MIRA INFORM REPORT

Report Date :

09.05.2013

IDENTIFICATION DETAILS

Name :	ESSAR POWER LIMITED
Registered Office :	27^th KM, Surat Hazira Road, Hazira, Surat - 394270, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.10.1991
Com. Reg. No.:	04-064824
Capital Investment / Paid-up Capital :	Rs.52956.100 Millions
CIN No.: [Company Identification No.]	U40100GJ1991PLC064824
TAN No.: [Tax Deduction & Collection Account No.]	SRTE00047F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of Generaters and Suppliers of Gas, Coal and Liquid Fuel Based Power.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 322660000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Essar Group. It is well established and reputed company having a good track record. Financially company appears to be strong. Trade relations are reported to be strong. Trade relations are reported to be decent. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A+ (Long Term Bond)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	October 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 (91-22-67335000)

LOCATIONS

Registered Office/ Factory:	27^th KM, Surat Hazira Road, Hazira, Surat - 394270, Gujarat, India
Tel. No.:	91-261-2872400
Fax No.:	91-261-2872747
E-Mail :	essarpower@essar.com powersec@essar.com
Website :	www.essarsteel.com www.essar.com
Area :	10000 sq. ft
Location:	Owned
Corporate Office/ Head Office :	11, Kesavarao Khadye Marg, Mahalaxmi Essar House, 14^th Floor, Mumbai – 400034, Maharashtra, India
Tel. No.:	91-22-24395066/ 66601100/ 24950606/ 40011100
Fax No.:	91-22-24954331/ 24954787/ 66604787/ 23544787
E-Mail :	essarpower@essar.com sanjyot.rangnekar@essar.com powersec@essar.com
Area :	Owned
Branch Office :	Located at: Mumbai Ahmedabad Chennai Hazira New Delhi Vadinar Visakhapatnam
Overseas Office:	Located at: Indonesia China United Kingdom United Arab Emirates – Dubai Canada USA – New York Kenya

DIRECTORS

AS ON 06.08.2011

Name :	Mr. Kalakota Vijaya Bhaskara Reddy
Designation :	Whole Time Director
Address :	61, Marble Arch, 5^th Road, Santacruz (East), Mumbai – 400055, Maharashtra, India
Date of Birth/Age :	01.07.1961
Date of Appointment :	01.04.2009
DIN No.:	01683467
Name :	Mr. Naresh Kumar Yoginder Nayyar
Designation :	Additional Director
Address :	S-320, First Floor, Greater Kailash, Part II, New Delhi – 110048, Delhi, India
Date of Birth/Age :	26.03.1952
Date of Appointment :	30.03.2010
DIN No.:	00045395
Name :	Mr. Manmohan Agrawal
Designation :	Additional director
Address :	Flat No. 1205, Tower I “C” Wing, Ashoka Garden, Next to Dosti Flamingo, Sewree, Mumbai - 400015, Maharashtra, India
Date of Birth/Age :	04.08.1950
Date of Appointment :	29.10.2010
DIN No.:	00681433
Name :	Mr. Haseeb Ahmad Drabu
Designation :	Additional Director
Address :	Flat No. 1101, 11^th Floor, Hicon Residency, 26^th Road, Bandra (West), Mumbai-400050, Maharashtra, India
Date of Birth/Age :	10.04.1961
Date of Appointment :	05.08.2011
DIN No.:	00489888
Name :	Mr. Stanislaus Dominic Coelho
Designation :	Director
Address :	65 IV B Cross Hig Colony, RMV Extension, II Stage, Bangalore - 560094, Karnataka, India
Date of Birth/Age :	11.03.1933
Date of Appointment :	28.08.2000
DIN No.:	00176467

KEY EXECUTIVES

Name :	Mr. Sanjyot Nilesh Rangnekar
Designation :	Secretary
Address :	D 604, Magnolia Enclave, Nahar’s Amrit Shakti, Near Chandivali Studios, Powai, Mumbai - 400072, Maharashtra, India
Date of Birth/Age :	06.07.1970
Date of Appointment :	19.05.2007
PAN No.:	AANPR5686C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 06.08.2011

Names of Equity Shareholders	No. of Shares
Essar Investments Limited, India	3
Essar Investments Limited Jointly with N B Vyas	1
Essar Investments Limited Jointly with Girish Sathe	2
Essar Investments Limited Jointly with Suresh Sundarai	1
Essar Steel Limited, India	217000000
Essar Power Holdings Limited (Formerly Prime Hazira Limited), Mauritius	308842112
Essar Power Hazira Holdings Limited (Formerly Known as Hazira Power 2), Mauritius	308842113
TOTAL	834684232

Names of Preference Shareholders	No. of Shares
Essar Power Holdings Limited (Formerly Prime Hazira Limited), Mauritius	1074243205
Essar Power Hazira Holdings Limited (Formerly Known as Hazira Power 2), Mauritius	1074243206
IDFC Trustee Company Limited A/C India Infrastructure Fund, India	350000000
TOTAL	2498486411

AS ON 30.03.2012

Names of Equity Shareholders (Allottees)	No. of Shares
Essar Power Holdings Limited, Mauritius	550000
Essat Power Hazira Holdings Limited, Mauritius	550000
Essar Steel India Limited, India	400000
TOTAL	1500000

Names of Preference Shareholders (Allottees)	No. of Shares
Essar Power Holdings Limited, Mauritius	44309056
Essat Power Hazira Holdings Limited, Mauritius	38927294
Essar Steel India Limited, India	400000
TOTAL	83636350

AS ON 08.10.2012

Names of Preference Shareholders (Allottees)	No. of Shares
Essar Power Holdings Limited, Mauritius	18537967
Essat Power Hazira Holdings Limited, Mauritius	24035177
TOTAL	42573144

AS ON 06.08.2011

Equity Shares Break Up	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	74.00
Bodies corporate	26.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Generaters and Suppliers of Gas, Coal and Liquid Fuel Based Power.

Products :

Products Description	Item Code No.:
Electrical Energy	271600

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Unit	Licensed Capacity*	Installed Capacity	Actual Production
Generation of Electricity	MW	NA	515	2752 Million Units

Note: * The Licensed capacity is not given as licensing has been abolished vide Press Note No. 9 dated 02.08.1991 and Notification No. S.O. 477(3E) Dated 25.07.1991 Issued by Government of India, Ministry of Industry, Department of Industrial Development.

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

• Bank of India
• Central Bank of India
• State Bank of India
• Yes Bank Limited
• State Bank of Mysore

Facilities :

(Rs. In Millions)

Secured Loan	31.03.2012	31.03.2011
Long Term Borrowings
10.25% Non Convertible Debentures	2800.000	3150.000
11.35% Non Convertible Debentures	1600.000	1800.000
Short Term Borrowings
Working Capital Facility
From Banks – Cash Credit Facilities	538.100	133.200
TOTAL	4938.100	5083.200

Banking Relations :	--
Financial Institution:	Axis Trustee Services Limited, Axis House, 2^nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India
Auditors :
Name :	Deloitte Haskins And Sells Chartered Accountant
Address :	"Heritage", 3rd Floor, Near Gujarat Vidyapith, Off Ashram Road, Ahmedabad-380014, Gujarat, India
PAN No.:	AABFD7919A
Holding Company :	Essar Power Holdings (Mauritius)
Ultimate Holding Company:	Essar Global Limited, Cayman, Islands
Joint Ventures :	Mahan Coal Limited (MCL)
Fellow Subsidiaries:	Essar Wind Power Private Limited, (EWPL) (From 15.03.2010)
Subsidiaries :	Bhander Power Limited CIN No.: U31101GJ1995PLC065146 Vadinar Power Company Limited CIN No.: U40100GJ1997PLC033108 Essar Power M P Limited CIN No.: U40100DL2005PLC201961 Essar Power Gujarat Limited CIN No.: U74900GJ2007PLC066273 Essar Power (Jharkhand ) Limited CIN No.: U31101DL2005PLC211274 Essar Power Transmission Company Limited CIN No.: U99999DL2005PLC208864 Essar Power (Orissa) Limited CIN No.: U31101DL2005PLC208862 Essar Power Hazira Limited CIN No.: U40300GJ2006PLC063146 Essar Power Salaya Limited CIN No.: U40300GJ2009PLC062729 Essar Electric Power Development Corporation Limited CIN No.: U40100MH1997PLC110104 Essar Wind Power Private Limited CIN No.: U31101MH2006PTC164542 Navabharat Power Private Limited CIN No.: U40109DL2005PTC231302
Other Related Parties :	Essar Investments Limited ( EIL ) Essar Oil Limited ( EOL ) Essar House Limited ( EHL) Arkay Holdings Limited (AHL) Aegis Limited (Aegis) (formerly known as Aegis BPO Services Limited) Essar Information Technology Limited (EITL) Kroner Investments (India) Limited (KINL) Essar Logistics Limited (ELL) The Mobile Store Limited (TMSL) Essar Minerals Resources Limited (EMRL) Essar Infrastructure Services Limited (EISL) (formerly known as Essar House Services Limited) Essar Projects (India) Limited (EPIL) (formerly known as Essar Construction (India) Limited) Essar Steel (Hazira) Limited (ESHL)

CAPITAL STRUCTURE

After 29.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000000	Equity Shares	Rs.4/- each	Rs. 100000.000 Millions
4750000000	Preference Shares	Rs.20/- each	Rs. 95000.000 Millions
500000000	Preference Shares	Rs.10/- each	Rs. 5000.000 Millions
	TOTAL		Rs. 200000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
834684232	Equity Shares	Rs.4/- each	Rs. 3338.737 Millions
2148486411	0.01% Compulsorily Convertible Cumulative Preference Shares	Rs.20/- each	Rs. 42969.728 Millions
350000000	Optional Convertible Redeemable Preference Shares	Rs.10/- each	Rs. 3500.000 Millions
	TOTAL		Rs. 49808.465 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000000	Equity Shares	Rs.4/- each	Rs. 100000.000 Millions
4750000000	Preference Shares	Rs.20/- each	Rs. 95000.000 Millions
500000000	Preference Shares	Rs.10/- each	Rs. 5000.000 Millions
	TOTAL		Rs. 200000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
842164232	Equity Shares	Rs.4/- each	Rs. 3368.700 Millions
2304369549	0.01% Compulsorily Convertible Cumulative Preference Shares	Rs.20/- each	Rs. 46087.400 Millions
350000000	Optional Convertible Redeemable Preference Shares	Rs.10/- each	Rs. 3500.000 Millions
	TOTAL		Rs. 52956.100 Millions

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		52956.100	49808.400	21926.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27709.900	25192.200	10947.200
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		80666.000	75000.600	32873.700
LOAN FUNDS
1] Secured Loans		4938.100	5083.200	7278.300
2] Unsecured Loans		765.000	282.800	3000.000
TOTAL BORROWING		5703.100	5366.000	10278.300
DEFERRED TAX LIABILITIES		1804.500	2333.700	2110.900
TOTAL		88173.600	82700.300	45262.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6347.400	7471.700	8756.500
Capital work-in-progress		199.700	213.000	50.600
INVESTMENT		62.000	0.000	20730.200
NONCURRENT INVESTMENTS		69385.200	55712.100	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	813.400	805.200	750.800
	Sundry Debtors	11309.800	9092.200	7633.700
	Cash & Bank Balances	135.900	9276.300	258.000
	Other Current Assets	52.500	34.900	0.000
	Loans & Advances	1990.00	1803.300	8435.900
Total Current Assets		14301.600	21011.900	17078.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	634.200	891.800	900.500
	Other Current Liabilities	990.900	731.900	421.400
	Provisions	497.200	84.700	30.900
Total Current Liabilities		2122.300	1708.400	1352.800
Net Current Assets		12179.300	19303.500	15725.600
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		88173.600	82700.300	45262.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	7503.000	8192.300	7408.900
		Other Income	365.900	526.900	679.800
		TOTAL (A)	7868.900	8719.200	8088.700
Less	EXPENSES
		Cost of Fuel	3530.500	4130.600	3652.500
		Expenditure for Construction Contract	9.700	345.600	0.000
		EMPLOYEES Benefits Expenses	329.900	310.200	0.000
		Operation, Maintenance and other expenses	516.100	556.000	825.200
		Exceptional item	0.000	0.000	366.300
		TOTAL (B)	4386.200	5342.400	4844.000
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3482.700	3376.600	3244.700
Less	FINANCIAL EXPENSES (D)		1078.600	1411.800	1659.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2404.100	1965.000	1585.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1288.700	1287.700	1287.800
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1115.400	677.300	297.200
Less	TAX (H)		(164.400)	224.400	119.900
	PROFIT FOR THE YEAR AFTER TAX EXCLUDING TAX ADJUSTMENT PERTAINING TO EARLIER YEARS		1279.800	452.900	177.300
Less	DEFERRED / CURRENT TAX PERTAINING TO EARLIER YEARS		0.000	0.000	2321.300
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1279.800	452.900	(2144.000)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	4721.400
Less	APPROPRIATIONS
		Preference dividend including dividend distribution tax	NA	NA	4.100
		Transferred to capital redemption reserve	NA	NA	0.000
		Transferred to preference redemption reserve	NA	NA	500.000
	BALANCE CARRIED TO THE B/S		NA	NA	2073.300
	IMPORTS
		Raw Materials	NA	213.600	42.100
		Stores & Spares	NA	54.200	117.900
		Capital Goods	NA	0.000	1.000
	TOTAL IMPORTS		NA	267.800	161.000
	Earnings Per Share (Rs.)		1.14	0.52	(3.35)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	16.26	5.19	(26.51)
Net Profit Margin (PBT/Sales)	(%)	14.87	8.27	4.01
Return on Total Assets (PBT/Total Assets}	(%)	5.40	2.38	1.15
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.01
Debt Equity Ratio (Total Debt/Networth)		0.07	0.07	0.31
Current Ratio (Current Asset/Current Liability)		6.74	12.30	12.62

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	Yes
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)	Yes
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

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
Acceptable	397.500	260.800	95.400
Sundry Creditors	236.700	631.000	805.100
TOTAL	634.200	891.800	900.500

UNSECURED LOAN

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
From Related Party	500.900	0.000
Buyers Credit	264.100	282.800
TOTAL	765.000	282.800

NOTE

The registered office of the company has been shifted from Essar House, 11-Keshavrao Khade Marg, Mahalaxmi, Mumbai - 400034, Maharashtra, India to the present address w.e.f. 08.03.2011.

FINANCIAL HIGHLIGHTS

STANDALONE RESULTS

During the year the Company reported a profit after tax of Rs. 1280.000 Millions as against Rs. 450.000 for the previous year. this was higher due to higher treasury income earned during current year and lower operations and maintenance expenditure. The operating revenue was lower at Rs. 7550.000 millions as against Rs. 8580.000 Millions, a decline of 12% mainly due to lower fuel charges incurred during the current year due to lower off take by GUVNL, lower income from UI and lower revenue earned from Pallivasal project.

Earrings per share (basic) were at Rs. 1.14 as against Rs. 0.52 during the previous year.

OPERATIONAL HIGHLIGHTS

The Power business generated 4926 MUs of power during FY 2011-12 as against 5842 MUs during the previous financial year, a decline of nearly 16%. The PLF was affected due to lower off take by the customers during the financial year due to high gas prices and other industry factors.

Company	Generation (MUs)		Plant Availability (%)		Plant Load Factor (%)
	2011-12	2010-11	2011-12	2010-11	2011-12	2010-11
Essar Power	1977	2752	98%	97%	44%	61%
Bhander Power	2376	2612	98%	99%	54%	80%
Vadlnar Power Base Expansion*	673	478	98%	97%	30%	66%
Essar Power Gujarat*	--	--	--	--	--	--
TOTAL	4926	5842

FIXED ASSETS

• Land – Freehold
• Building
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Aircraft
• Intangible Assets – Software

AS PER WEBSITE DETAILS

Press Release

AEGIS LAUNCHES DELIVERY CENTER IN SIVAGANGA

Sivaganga and Mumbai, India: Aegis Limited, a global outsourcing and technology services company and part of the $27 billion conglomerate Essar, today laid the foundation stone and ground breaking ceremony for its new center in Sivaganga in Tamil Nadu. The foundation stone was laid by Union Finance Minister Mr. P. Chidambaram, in the presence of district officials.

"I am very happy to welcome Aegis to Sivaganga, which has a large educated population and good infrastructure. I am pleased that Aegis has taken the lead in coming to smaller towns and such initiatives will not only provide jobs to locals but also invigorate the economy. I offer them all the support and wish them all the best for this center," said Mr. Chidambaram, who is also the elected Member of Parliament of Sivaganga.

This is Aegis' 21st delivery center in India and 57th globally. The Sivaganga center will serve local, regional and well as national clients.

"Aegis has always been a front runner in exploring the benefits of having delivery centers in tier 2 and tier 3 locations of our country. These centers offer tangible and intangible benefits around the availability of skilled resources, local infrastructure and cultural affinity—delivering our motto of citizens-serving-citizens. Our newest center in Sivaganga will reinforce this strategy of not only providing opportunity for local talent but also provide our clients the flexibility to choose from a diversity of locations, skills, costs and capabilities," said Mr. Sandip Sen, Global CEO, Aegis Limited.

Aegis Sivaganga is spread across one acre of land will have modern and world-class facilities such as air-conditioned work environment with cafeteria, recreation, and training center. The center will have an initial capacity of 250 seats, which translates into 500 direct white collared jobs and is expected to additionally generate three to four times indirect employment. This expansion marks the second center in Tamil Nadu after Chennai and 21st location in India.

"We are thankful to the honorable minister and local administration for the support we have received for setting up the center. Sivaganga's business friendly environment, local infrastructure and talent pool make it an ideal location for our business operations. In collaboration with Aegis Chennai, this delivery location would work along in a Hub and Spoke model to support Aegis' continued expansion in Southern India," said Mr. Sudhir Agarwal, Director, Essar Services India Limited.

Aegis is planning to set up many such customer contact centers in tier 2/3 towns and therefore is in conversation with several state government and local bodies. The company has significant expertise in launching and scaling-up operations in locations such Hazira, Srinagar, Lucknow, Jamshedpur, Chhindwada, Vijaywada and Bhopal.

As part of its Aegis Elite initiative, Aegis launched its delivery center in Chhindwada, Madhya Pradesh, and has scaled up operations to over 100 people in less than one year. Similarly in Srinagar, it has scaled up to 500 people. Jamshedpur center, which was launched in 2008, today is about 3,000 people strong. These centers are expected to stem migration and also encourage reverse migration, as talented local people who may have moved to other cities for jobs, will now have an opportunity to fulfill their career aspiration in their own hometown.

About Aegis

Aegis is a global outsourcing and technology company committed to impacting clients' business outcomes by focusing on enhancing customer experience across all touch points and channels. Aegis was founded 30 years ago in the US and now has operations in 56 locations across 13 countries with more than 55,000 employees. Aegis services over 300 clients from verticals such as Banking and Financial Services, Insurance, Technology, Telecom, Healthcare, Travel and Hospitality, Consumer Goods, Retail, and Energy and Utilities. The company is wholly owned by Essar, a USD27 billion conglomerate. For more information write to us at info@aegisglobal.com or visit www.aegisglobal.com

About Essar

Essar is a multinational conglomerate and a leading player in the sectors of Steel, Energy, Infrastructure and Services. With operations in more than 25 countries across five continents, the Group employs 75,000 people, with revenues of $27 billion.

Essar Energy joins United Nations corporate responsibility initiative

April 17, 2013

Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that it has become a signatory to the United Nations Global Compact (UNGC). In doing so Essar Energy has joined the largest voluntary corporate responsibility initiative in the world with over 10,000 corporate participants and other stakeholders from over 130 countries.

Essar Energy commits to adopting an established and globally recognised policy framework for the development, implementation and disclosure of environmental, social and governance policies and practices.

The company will integrate in its annual sustainability report a description of the ways in which it implements the UNGC principles and supports broader development objectives such as the UN’s Millenium Development Goals.

Mr. Naresh Nayyar, Essar Energy Chief Executive, said, “The UNGC endorsement is a huge step forward in demonstrating to our stakeholders Essar Energy’s growing commitment in sustainability. As a respected and responsible global energy major, Essar Energy will continue to contribute to a more sustainable and inclusive global economy”.

Notes to editors:

The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. With over 10,000 corporate participants and other stakeholders from over 130 countries, it is the largest voluntary corporate responsibility initiative in the world.

About Essar Energy

Essar Energy (LSE:ESSR) is a world class, low-cost, integrated energy company with an established track record.

Essar Energy, through its subsidiaries, owns one of India's largest private power producers with 3,910MW of installed capacity and projects under construction to expand its capacity to 6,700MW.

Essar Energy, through its subsidiaries, owns one of India's fastest growing private sector oil and gas companies with a diverse portfolio of exploration and production assets. The Vadinar refinery, located in Gujarat, is India's second largest private sector oil refinery with throughput capacity of 20 million metric tonnes per annum, or 405,000 barrels per day. The Stanlow refinery is the UK's second largest refinery with throughput capacity of 296,000 barrels per day, or 14.6 million metric tonnes per annum.

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. 54.16
UK Pound	1	Rs. 83.88
Euro	1	Rs. 71.00

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.