MIRA INFORM REPORT

Report Date :

19.06.2014

IDENTIFICATION DETAILS

Name :	JSW STEEL LIMITED

Formerly Known As :	JINDAL VIJAYNAGAR STEEL LIMITED

Registered Office :	JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

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 and Seller of Iron and Steel Products.

No. of Employees :	Information Decline by the management

RATING & COMMENTS

MIRA’s Rating :

A (69)

RATING

STATUS

PROPOSED CREDIT LINE

56-70

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

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Exist

Comments :	Subject is a part of “JSW Group”, which inturn is part of the “O.P. Jindal Group” as a result of the merger of “JSW Ispat Steel Limited” with the subject, it is one of the largest steel producers in India. It is a well-established and a reputed company having excellent track. The company possesses a decent financial profile marked by healthy networth along with improvement in operational performance whereas, has witnessed a moderation in its capital structure during FY 13. The ratings also take into consideration the susceptibility of profit margins to volatility in input cost due to lack of raw material integration as well as exposure to foreign exchange risk which may be further mitigated by gradual improvement in availability of iron ore in Karnataka. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of experienced management with well-established track records brownfield projects and significant presence in the Indian steel sector, the subject 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.

ECGC Country Risk Classification List – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

India

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

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two. While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “AA”
Rating Explanation	High degree of safety and very low credit risk.
Date	10.04.2014

Rating Agency Name	CARE
Rating	Short term bank facilities: “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	10.04.2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DECLINED BY

Management non-cooperative (Tel. No.: 91-22-42861000)

LOCATIONS

Registered/ Regional Office:	JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India
Tel. No.:	91-22-42861000
Fax No.:	91-22-42863000
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 paresh.tewary@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. :	91-22-67838000
Fax No. :	91-22-24320740

Factory 1 :	Vijayanagar Works P.O. Vidyanagar, Toranagallu Village, Sandur Taluk, District Bellary - 583275, Karnataka, India
Tel. No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138 / 250665

Factory 2 :	Vasind Works Shahapur Taluk, District Thane - 421604, Maharashtra, India
Tel. No.:	91-2527-220022 to 025
Fax No.:	91-2527-220020 / 84 / 92

Factory 3 :	Tarapur Works MIDC Boisar, District Thane – 401506, 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 - 636453, 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

Branch Office :	123/124, BM Tower, NPII, New Palasia, Indore, Madhya Pradesh, India

Other Branch Offices :	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 31.03.2013

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 :	Mrs. Punita Kumar Sinha
Designation :	Director

Name :	Mr. Hiromu Oka
Designation :	Nominee Director of JFE Steel Corporation, Japan

Name :	Mr. P.B. Ramamurthy
Designation :	Nominee Director of KSIIDC

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

SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3983538	1.65
Central Government / State Government(s)	907952	0.38
Bodies Corporate	82332168	34.06
Sub Total	87223658	36.08
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	11099	0.00
Bodies Corporate	5704612	2.36
Sub Total	5715711	2.36
Total shareholding of Promoter and Promoter Group (A)	92939369	38.45
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2803115	1.16
Financial Institutions / Banks	5955046	2.46
Central Government / State Government(s)	1237500	0.51
Foreign Institutional Investors	46291278	19.15
Sub Total	56286939	23.29
(2) Non-Institutions
Bodies Corporate	15265751	6.32
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	15861599	6.56
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	9865079	4.08
Any Others (Specify)	51503307	21.31
Trusts	3670037	1.52
Overseas Corporate Bodies	38742	0.02
Non Resident Indians	3247072	1.34
Foreign Corporate Bodies	44547456	18.43
Sub Total	92495736	38.27
Total Public shareholding (B)	148782675	61.55
Total (A)+(B)	241722044	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)	241722044	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Iron and Steel Products.

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 31.03.2013)

Particulars	Unit	Installed Capacity	Actual Production
MS Slabs	Tonnes	8300000	6541921
Hot Rolled Coils/Steel Plates/Sheets	Tonnes	8200000	6202129
Hot Rolled Steel Plates	Tonnes	320000	79308
Cold Rolled Coils/Sheets	Tonnes	1825000	1658906
Galvanised/Galvalum Coils/Sheets	Tonnes	925000	996530
Colour Coating Coils / Sheets	Tonnes	426000	188569
Steel Billets and Bloom	Tonnes	2500000	1977543
Long Rolled Products	Tonnes	2450000	1798173

NOTES:

1) As certified by the management and accepted by auditors, being a technical matter.

2) Production of Cold Rolled Coils/Sheets includes 59,483 tonnes (previous year 53,438 tonnes) from a third party on a job work basis.

3) Production of Galvanized/Galvalum Coils/Sheets includes 61,107 tonnes (previous year 55,734 tonnes) from a third party on a job work basis.

GENERAL INFORMATION

No. of Employees :

Information Decline by the management

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 Mysore
State Bank of Patiala
Union Bank of India
Vijaya Bank

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long Term Borrowings
Debentures
10.34 % Non Convertible Debentures of Rs. 10 lacs each	10000.000	0.000
11 % Non Convertible Debentures of Rs. 10 lacs each	10000.000	10000.000
10.25 % Non Convertible Debentures of Rs. 10 lacs each	5000.000	5000.000
10.60 % Non Convertible Debentures of Rs. 10 lacs each	3500.000	3500.000
10.10 % Non Convertible Debentures of Rs. 10 lacs each	9687.500	10000.000
11.82 % Non Convertible Debentures of Rs. 10 lacs each	62.800	146.600
11.82 % Non Convertible Debentures of Rs. 10 lacs each	175.500	253.500
Term Loans
Rupee Term Loans from Banks	61725.300	50734.500
Foreign Currency Term Loans from Banks	6956.00	10617.200
Rupee Term Loans from Financial Institutions	142.300	254.500

Short Term Borrowings
Working Capital Loans from Banks	2666.100	1628.900
Foreign Currency Loan from Bank	0.000	1534.600

Total	109915.500	93669.800

NOTES:

Long Term Borrowings:

Details of Security:

(i) The 10.34% NCDs aggregating to Rs. 10000.000 Millions are secured / to be secured by way of first pari passu charge on fixed assets related to 2.8 mtpa expansion project located at Vijaynagar works and a flat at Vasind situated in the state of Maharashtra.

(ii) The 11% NCDs aggregating to Rs. 10000.000 Millions are secured by way of first pari passu charge on movable and immovable properties of 2.8 mtpa expansion project located at Vijayanagar works and a flat at Vasind situated in the state of Maharashtra.

(iii) The 10.25% NCDs aggregating to Rs. 5000.000 Millions are secured by way of mortgage in respect of all immovable and movable properties both present and future located at Tarapur Works and Vasind Works in the State of Maharashtra.

(iv) The 10.60% NCDs aggregating to Rs. 3500.000 Millions are secured by:

- pari passu first charge by way of legal mortgage on land situated in the State of Gujarat

- pari passu first charge by way of equitable mortgage on fixed assets of the new 5 mtpa Hot Strip Mill at Toranagallu village in the State of Karnataka.

(v) The 10.10 % NCDs aggregating to Rs. 10000.000 Millions are secured by:

- pari passu first charge by way of legal mortgage on all immovable properties both present and future located at Tarapur Works and Vasind Works in the State of Maharashtra.

- pari passu first charge on all immovable properties and movable assets both present and future located at Salem Works in the State of Tamil Nadu.

(vi) The 11.82% NCDs aggregating to Rs. 146.600 Millions are secured by:

- First charge on land situated in the state of Gujarat.

- First charge on Fixed Assets situated at Salem Works in the state of Tamilnadu.

(vii) The 11.82 % NCDs aggregating to Rs. 253.500 Millions are secured by

- Pari passu first charge by way of legal mortgage on a flat situated at Mumbai, in the State of Maharashtra.

- Pari passu first charge by way of equitable mortgage of the Company’s immovable properties relating to the 100MW and 130MW Power Plants at Toranagallu village in the State of Karnataka

(viii)Rupee Term Loans from Banks / Foreign Currency Term Loan from Bank are secured / to be secured as under :

- Rupee Term Loans aggregating to Rs. 67.600 Millions and Foreign Currency Term Loans aggregating to Rs. 813.900 Millions are secured by a first charge supported by an equitable/ registered Mortgage of movable and immovable properties and assets situated at Salem Works in the state of Tamilnadu and a second pari passu charge on the current assets at Salem Works.

- Foreign Currency Term Loans aggregating to Rs. 2209.600 Millions by exclusive first charge by way of equitable mortgage in respect of all movable and immovable properties of Cold Rolling Mill Complex at Toranagallu village in the State of Karnataka.

- Rupee Term Loans aggregating to Rs. 247.500 Millions and Foreign Currency Term Loans aggregating to Rs. 1594.200 Millions by exclusive first charge by way of equitable mortgage in respect of all movable and immovable properties both present and future of 2.8 mtpa expansion project at Toranagallu village, in the State of Karnataka.

- Foreign Currency Term Loans aggregating to Rs. 6662.700 Millions by exclusive first charge by way of equitable mortgage in respect of all movable and immovable properties of Hot Strips Mill at Toranagallu village in the State of Karnataka.

- Rupee Term Loans aggregating to Rs. 44590.900 Millions by pari passu first charge by way of mortgage in respect of all movable and immovable properties both present and future, first charge/Assignment of all the assets and first charge on all the Bank Accounts of 3.2 mtpa expansion project at Toranagallu village in the State of Karnataka.

- Rupee Term Loan aggregating to Rs. 4950.000 Millions by exclusive first mortgage and charge on all movable and immovable properties both present and future, and first charge on the Bank Accounts of the 300 MW Power Plant - CPP IV at Toranagallu village in the State of Karnataka.

- Rupee Term Loan aggregating to Rs. 8357.100 Millions by first mortgage and charge of all immovable properties both present and future, and a first charge by way of hypothecation of all movable properties both present and future of the Beneficiation Plant (6 x 500 tph) and Pellet Plant (4.2 mtpa) at Toranagallu village in the State of Karnataka.

- Rupee Term Loan aggregating to Rs. 10000.000 Millions by first pari passu charge on 3.8 mtpa upstream assets (other than assets specifically carved out) at Vijaynagar works, Toranagallu village in the State of Karnataka.

(ix) Rupee Term Loan from Financial Institution aggregating to Rs. 254.500 Millions are secured by exclusive first charge by way of hypothecation of Bombardier Challenger 300 aircraft.

Terms of Repayment/ Redemption/ Conversion:

Terms of Conversion/ Redemption of Bonds/ Non-Convertible Debentures (NCDs ):

(i) The 10.34% Secured NCDs of Rs. 1.000 Million each aggregating Rs.10000.000 Millions are redeemable in three tranches as under :

- Rs. 3300.000 Millions on 18.1.2022

- Rs. 3300.000 Millions on 18.1.2023

- Rs. 3400.000 Millions on 18.1.2024

(i) The 11% Secured NCDs of Rs. 1.000 Million each aggregating Rs. 10000.000 Millions are redeemable with call and put option excersiable on 16.03.17 and 16.03.19 as under:

- Rs. 3300.000 Millions each on 16.3.2021

- Rs. 3300.000 Millions each on 16.3.2022

- Rs. 3400.000 Millions each on 16.3.2023

(ii) The 10.25% Secured NCDs of Rs. 10 lacs each aggregating Rs. 5000.000 Millions are redeemable in 3 equal annual installments of Rs. 1666.700 Millions each from 17.02.2016 to 17.02.2018.

(iii) The 10.60% Secured NCDs of Rs. 10 lacs each aggregating Rs. 3500.000 Millions are redeemable in two tranches as under :

- 8 half yearly installments of Rs. 218.750 Millions each from 02.01.2016 to 02.07.2019

- 8 half yearly installments of Rs. 218.750 Millions each from 02.08.2016 to 02.02.2020.

(iv) The 10.10% Secured NCDs of Rs. 10 lacs each aggregating Rs. 10000.000 Millions are redeemable in two tranches as under :

- 16 quarterly installments of Rs. 312.500 Millions each from 04.02.2014 to 04.11.2017

- 16 quarterly installments of Rs. 312.500 Millions each from 15.06.2014 to 15.03.2018.

(v) The 11.82% Secured NCDs of Rs. 10 lacs each aggregating Rs. 146.600 Millions are redeemable in 7 quarterly installments of Rs. 20.900 Millions each from 01.07.2013 to 01.01.2015.

(vi) The 11.82% Secured NCDs of Rs. 10 lacs each aggregating Rs. 253.500 Millions is redeemable in 13 quarterly installments of Rs. 19.500 Millions each from 15.04.2013 to 15.04.2016.

Terms of Repayment of Secured Term Loans:

(A) Rupee Term Loan from Banks of :

(i) Rs. 247.500 Millions is repayable in 12 quarterly installments of Rs. 20.600 Millions each from 30.4.2013 to 31.1.2016.

(ii) Rs. 44.600 Millions is repayable in 3 quarterly installment of Rs. 10.900 Millions each from 30.6.2013 to 31.12.2013 and 1 quarterly installment of Rs. 11.700 Millions on 31.3.2014.

(iii) Rs. 23.000 Millions is repayable in 3 quarterly installments of Rs. 05.700 Millions each from 30.6.2013 to 31.12.2013 and 1 quarterly installment of Rs. 05.900 Millions on 31.3.2014.

(iv) Rs. 28604.600 Millions is repayable as under :

- 8 quarterly installments of Rs. 752.800 Millions from 30.6.2013 - 31.3.2015

- 8 quarterly installments of Rs. 1881.900 Millions from 30.6.2015 - 31.3.2017

- 2 quarterly installments of Rs. 2509.100 Millions from 30.6.2017 - 30.9.2017

- 1 quarterly installments of Rs. 2509.400 Millions on 31.12.2017

(v) Rs. 12187.500 Millions is repayable as under :

- 4 quarterly installments of Rs. 78.100 Millions each from 30.6.2013 - 31.3.2014

- 8 quarterly installments of Rs. 312.500 Millions each from 30.6.2014 - 31.3.2016

- 12 quarterly installments of Rs. 781.300 Millions each from 30.6.2016 - 31.3.2019.

(vi) Rs. 3798.800 Millions is repayable as under :

- 8 quarterly installments of Rs. 100.000 Millions each from 1.4.2013 - 1.1.2015

- 8 quarterly installments of Rs. 250.000 Millions each from 1.4.2015 - 1.1.2017

- 3 quarterly installments of Rs. 333.200 Millions each from 1.4.2017 - 1.10.2017.

(vii) Rs. 8357.100 Millions is repayable in 26 quarterly installments of Rs. 321.400 Millions each from 1.7.2013 to 1.10.2019.

(viii)Rs. 4950.000 Millions is repayable in 12 quarterly installments of Rs. 412.500 Millions each from 1.4.2013 to 1.1.2016.

(ix) Rs. 10000.000 Millions is repayable as under :

- 16 quarterly installments of Rs. 125.000 Millions each from 30.6.2014 - 31.3.2018

- 12 quarterly installments of Rs. 375.000 Millions each from 30.6.2018 - 31.3.2021

- 4 quarterly installments of Rs. 437.500 Millions each from 30.6.2021 - 31.3.2022

- 2 quarterly installments of Rs. 875.000 Millions each from 30.6.2022 - 30.9.2022

(B) Foreign Currency Term Loan from Banks of :

(i) Rs. 475.900 Millions is repayable in 5 half yearly installments of Rs. 95.200 Millions each from 16.6.2013 to 16.6.2015.

(ii) Rs. 1733.7000 Millions is repayable in 5 half yearly installments of Rs. 346.700 Millions each from 8.4.2013 to 7.4.2015.

(iii) Rs. 1529.700 Millions is repayable in 3 half yearly installments of Rs. 509.900 Millions each from 8.7.2013 to 6.7.2014.

(iv) Rs. 64.500 Millions is repayable on 23.9.2013.

(v) Rs. 6662.700 Millions is repayable in 2 half yearly installments of Rs. 951.800 Millions each from 28.5.2013 to 27.11.2013 and 1 half yearly installment of Rs. 4759.100 Millions on 27.5.2014

(vi) Rs. 271.900 Millions is repayable on 8.6.2013.

(vii) Rs. 542.000 Millions is repayable in 6 half yearly installments of Rs. 90.300 Millions each from 9.9.2013 to 9.3.2016.

(C) Rupee Term Loan from Financial Institutions of :

(i) Rs. 102.900 Millions is repayable in 27 monthly installments of Rs. 03.800 Millions each from 11.4.2013 to 11.6.2015.

(ii) Rs. 50.800 Millions is repayable in 27 monthly installments of Rs. 01.900 Millions each from 20.4.2013 to 20.6.2015.

(iii) Rs. 54.600 Millions is repayable in 28 monthly installments of Rs. 01.950 Millions each from 2.4.2013 to 02.7.2015.

(iv) Rs. 46.200 Millions is repayable in 27 monthly installments of Rs. 01.700 Millions each from 15.4.2013 to 15.7.2015.

Details of Security

Working capital loans of Rs. 2666.100 Millions are secured by :

- pari passu first charge by way of hypothecation of Stocks of Raw Materials, Finished Goods, Work-in-Process, Consumable Stores and Spares and Book Debts / Receivables of the Company, both present and future.

- pari passu second charge on movable properties and immovable properties forming part of the Fixed/Blocked assets of the company, both present and future except such properties as may be specifically excluded.

Banking Relations :	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants

Associates/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 Mali Resources SA (w.e.f. 18.02.2013) · JSW Steel Processing Centres Limited · JSW Bengal Steel Limited · JSW Natural Resources India Limited · Barbil Beneficiation Company Limited · JSW Jharkhand Steel Limited · JSW Building Systems Limited · JSW Steel East Africa Limited · Amba River Coke Limited · JSW Energy (Bengal) Limited · JSW Natural Resource Bengal Limited (w.e.f. 03.04.2012) · JSW Steel Coated Products Limited (w.e.f. 31.08.2012) · Jindal Praxair Oxygen Company Private Limited · JSW Ispat Steel Limited · JSW Energy (Bengal) Limited (upto 04.03.2012)

Joint Venture :	· Vijayanagar Minerals Private Limited · Rohne Coal Company Private Limited · JSW Severfield Structures Limited · Gourangdih Coal Limited · Toshiba JSW Turbine and Generator Private Limited · MJSJ Coal Limited · GEO Steel LLC · JSW Structural Metal Decking Limited · JSW MI Steel Service Center Private Limited

Other Related Parties :	· JSW Energy Limited · JSL Limited · JSW Realty and Infrastructure Private Limited · Jindal Saw Limited · Jindal Steel and Power Limited · JSOFT Solutions Limited · Jindal Industries Limited · Jindal Aluminum Limited · JSW Cement Limited · JSW Jaigarh Port Limited · Reynold Traders Private Limited · Raj West Power Limited · JSW Power Trading Company Limited · JSW Aluminim 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 · Jindal Technologies and Management Services Private Limited

CAPITAL STRUCTURE

After 30.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

9015000000	Equity Shares	Rs.10/- each	Rs. 90150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

1006171555	Equity Shares	Rs.10/- each	Rs. 10061.716 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

2000000000	Equity Shares	Rs.10/- each	Rs.20000.000 Millions
1000000000	Preferences 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
	Equity Shares Forfeited (Amount Originally Paid-Up)		Rs.610.300 Millions
279034907	10% Cumulative Redeemable Preferences Shares Full Paid Up	Rs.10/- each	Rs.2790.300 Millions
	TOTAL		Rs.5631.800 Millions

Notes:

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 that were represented by underlying GDR’s which did 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. Nil (previous year 26,00,938) equity shares represent the shares underlying outstanding Global Depository Receipts (GDRs). Each GDR represents 1 underlying equity share. The GDRs have been converted to equity shares during the year.

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 redemption. 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 are set out below:

Particular	No. of Shares	%
Equity (excluding shares represented by underlying GDRs)
JFE Steel International Europe B.V	36068518	16.17
JFE Steel Corporation	--	--
Jindal South West Holdings Limited	17284923	7.75
JSW Energy Investments Private Limited	13764364	6.17

Preference Shares
ICICI Bank Limited	12707730	45.05
IDBI Bank Limited	69734847	24.99
Life Insurance Corporation of India	36348783	13.03
IFCI Limited	21262362	7.62

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5631.800	5631.800	5631.800
(b) Reserves & Surplus	193741.900	179343.100	161327.100
(c) Money received against share warrants	0.000	0.000	5293.800

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	199373.700	184974.900	172252.700

(3) Non-Current Liabilities
(a) long-term borrowings	154342.600	115280.900	88679.000
(b) Deferred tax liabilities (Net)	34502.300	30120.900	23170.400
(c) Other long term liabilities	1940.600	827.200	4499.000
(d) long-term provisions	395.100	329.000	218.200
Total Non-current Liabilities (3)	191180.600	146558.000	116566.600

(4) Current Liabilities
(a) Short term borrowings	11095.300	7741.300	18794.300
(b) Trade payables	92743.600	91844.500	60098.200
(c) Other current liabilities	48739.800	71825.200	44284.200
(d) Short-term provisions	3020.500	2269.200	3587.800
Total Current Liabilities (4)	155599.200	173680.200	126764.500

TOTAL	546153.500	505213.100	415583.800

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	276044.700	270716.900	210891.100
(ii) Intangible Assets	343.200	188.900	130.400
(iii) Capital work-in-progress	50339.700	24767.700	56899.400
(iv) Intangible assets under development	405.700	270.400	181.200
(b) Non-current Investments	44956.100	42122.000	38318.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	30839.900	26514.400	19820.100
(e) Other Non-current assets	0.800	15.800	0.800
Total Non-Current Assets	402930.100	364596.100	326241.100

(2) Current assets
(a) Current investments	1404.500	2012.200	2670.000
(b) Inventories	47991.000	51790.800	41384.100
(c) Trade receivables	18622.000	12846.200	8386.500
(d) Cash and cash equivalents	14017.900	29560.200	18868.000
(e) Short-term loans and advances	61188.000	44407.600	18034.100
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	143223.400	140617.000	89342.700

TOTAL	546153.500	505213.100	415583.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	354918.100	321226.600	233671.100
		Other Income	2608.800	1793.000	2345.100
		TOTAL (A)	357526.900	323019.600	236016.200

Less	EXPENSES
		Cost of materials consumed	225903.700	209601.100	148030.900
		Purchases of traded goods	100.000	775.000	1822.300
		Employee benefits expense	6709.700	6258.700	5344.700
		Other expenses	60841.100	51261.900	37534.000
		Exceptional Items	3672.100	8209.600	0.000
		Changes in inventories of Finished goods, Work-in-progress and Stock-in-Trade	(1724.600)	(2978.100)	(6829.800)
		TOTAL (B)	295502.000	273128.200	185902.100

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		62024.900	49891.400	50114.100

Less	FINANCIAL EXPENSES (D)		17244.800	11864.100	8541.700

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		44780.100	38027.300	41572.400

Less/ Add	DEPRECIATION/ AMORTISATION (F)		19738.900	17081.700	13787.100

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		25041.200	20945.600	27785.300

Less	TAX (H)		7029.000	4687.000	7678.600

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		18012.200	16258.600	20106.700

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19873.000	27883.600	53277.800

Less	APPROPRIATIONS
		Transfer to General Reserve	1810.000	23250.000	42000.000
		Dividend on Preferences Shares	279.000	279.000	279.000
		Proposed Final Dividend on Equity Shares	2231.200	1673.400	2733.200
		Corporate Dividend Tax	426.600	316.800	488.700
		Transfer From/To Debenture Redemption Reserve	78.200	(1250.000)	0.000
	BALANCE CARRIED TO THE B/S		33060.200	19873.000	27883.600

	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	69693.500	53752.200	33282.500
		Sale of Carbon Credits	170.700	133.700	386.700
		Interest Income	1808.800	1078.300	457.600
	TOTAL EARNINGS		71673.000	54964.200	34126.800

	IMPORTS
		Raw Materials	104010.900	123970.500	87326.400
		Stores & Spares	4671.000	3723.900	2784.400
		Capital Goods	17213.900	9755.300	14829.900
	TOTAL IMPORTS		125895.800	137449.700	104940.700

	Earnings / (Loss) Per Share (Rs.)
	- Basic		79.28	71.42	97.17
	- Diluted		79.28	71.42	96.33

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.04	5.03	8.52

Net Profit Margin (PBT/Sales)	(%)	7.05	6.52	11.89

Return on Total Assets (PBT/Total Assets}	(%)	7.15	4.78	8.68

Return on Investment (ROI) (PBT/Networth)		0.13	0.11	0.16

Debt Equity Ratio (Total Debt/Networth)		0.83	0.67	0.62

Current Ratio (Current Asset/Current Liability)		0.92	0.81	0.70

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	5631.800	5631.800	5631.800
Reserves & Surplus	161327.100	179343.100	193741.900
Money received against share warrants	5293.800	0.000	0.000
Net worth	172252.700	184974.900	199373.700

long-term borrowings	88679.000	115280.900	154342.600
Short term borrowings	18794.300	7741.300	11095.300
Total borrowings	107473.300	123022.200	165437.900
Debt/Equity ratio	0.624	0.665	0.830

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	233671.100	321226.600	354918.100
		37.470	10.488

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	233671.100	321226.600	354918.100
Profit	20106.700	16258.600	18012.200
	8.60%	5.06%	5.08%

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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	No
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

LITIGATION DETAILS
Bench:- Bombay
Lodging No:-	ITXAL/533/2014	Failing Date:-		27/02/2014	Reg. No.:-		ITXA/751/2014	Reg. Date:-	04/04/2014

Petitioner:-	COMMISSIONER OF INCOME TAX – CENTRAL			Respondent:-	JSW STEEL LIMITED
Petn.Adv:-	TEJVEER SINGH MASTAN SINGH (0)			Resp. Adv.:	ATUL KARSANDAS JASANI (0)
District:-	MUMBAI

Bench:-	DIVISION
Status:-	Pre-Admission			Category:-	TAX APPEALS
Last Date:-	10/07/2014			Stage:-
Last Coram:-	ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST

Act:-	Income Tax Act, 1961		Under Section :-			260A

UNSECURED LOANS:

Particular	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee Term Loans from Banks	0.000	0.000
Foreign Currency Term Loans from Banks	45985.500	22373.300
Long Term Advance from a Customer	0.000	1284.800
Deferred Payment Liabilities
Deferred Sales Tax Loan	1107.700	1116.500
Short Term Borrowings
Foreign Currency Loan from Bank	8429.200	4577.800
TOTAL	55522.400	29352.400

Terms of Repayment of Unsecured Term Loans:

(A) Foreign Currency Term Loan from Banks of :

(i) Rs. 15229.000 Millions is repayable in 5 half yearly installments of Rs. 3045.800 Millions each from 28.8.2015 to 27.8.2017.

(ii) Rs. 7689.800 Millions is repayable in 17 half yearly installments of Rs. 452.300 Millions each from 30.5.2013 to 31.3.2021.

(iii) Rs. 4096.400 Millions is repayable as under :

- Rs. 582.500 Millions on 30.4.2014

- Rs. 3495.600 Millions is repayable in 12 half yearly installments of Rs. 291.300 Millions each from 30.10.2014 to 30.4.2020

- Rs. 18.300 Millions on 30.10.2020

(iv) Rs. 229.800 Millions is repayable in 4 half yearly installments of Rs. 48.600 Millions each from 3.1.2014 to 3.7.2015 and last installment of Rs. 35.400 Millions on 3.1.2016.

(v) Rs. 12237.600 Millions is repayable in on 26.6.2017.

(vi) Rs. 2385.500 Millions is repayable in 3 yearly installments of Rs. 795.200 Millions each from 26.7.2016 to 26.7.2018.

(vii) Rs. 863.100 Millions is repayable in 16 half yearly installments of Rs. 53.400 Millions each and final installment of Rs. 08.700 Millions falling due every 6 months after the actual commissioning date.

(viii) Rs. 2022.800 Millions is repayable in 11 half yearly installments of Rs. 173.300 Millions each from 19.7.2014 to 19.7.2019 and 1 half yearly installment of Rs. 116.500 Millions on 19.1.2020.

(ix) Rs.2184.700 Millions is repayable in 14 half yearly installments of Rs. 149.300 Millions each from 19.7.2014 to 19.1.2021 and 1 half yearly installment of Rs. 94.500 Millions on 19.7.2021.

Long Term Advance from a Customer of Rs. 1284.900 Millions is repayable as under :

- 5 monthly installments of Rs. 214.700 Millions each from 30.4.2013 to 31.8.2013.

- 1 monthly installment of Rs. 211.400 Millions on 1.9.2013.

- Deferred Sales tax of Rs. 1116.500 Millions is repayable in 101 varying monthly installments starting from 30.4.2013 to 31.8.2021.

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10428403	03/05/2013	10,000,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP - MUMBAI, NEVILLE HOUSE, 3RD FLOOR, J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	B75979476
2	10423803	12/04/2013	10,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	B74391319
3	10362658	20/07/2012 *	10,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	B44716967
4	10360372	26/02/2013 *	37,460,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	B70638770
5	10358176	31/05/2012 *	8,910,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	B41688649
6	10343108	13/03/2012	37,600,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	B35431519
7	10298721	31/05/2012 *	52,850,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	B41688144
8	10272434	23/12/2011 *	9,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	B28534402
9	10233825	30/06/2010	340,970,000.00	State Bank of India	15 KING STREET, EC2V 8EA, LONDON, - NA, UNITED K INGDOM	A91481903
10	10233501	25/06/2010	3,500,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, MAKER TOWER, 'E',CUFFE PRADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A91267377

* Date of Charge Modification

SCHEME OF AMALGAMATION:

The Directors in their meeting held on September 1, 2012, have considered and approved a ‘Composite Scheme of Arrangement and Amalgamation’ under Sections 391-394 of the Companies Act, 1956 (the “Scheme”) amongst the Company, JSW ISPAT Steel Limited (“JSW ISPAT”), JSW Building Systems Limited (“JSW Building”), JSW Steel Coated Products Limited (“JSW Steel Coated”) (formerly known as Maharashtra Sponge Iron Limited.) and their respective shareholders and creditors relating to the following matters (to be effected in the sequence set forth herein below), with 1 July 2012 being the appointed date:

(a) Transfer of the ‘Kalmeshwar’ undertaking of JSW ISPAT to JSW Steel Coated (an indirect wholly owned subsidiary of the Company).

(b) Transfer of the ‘Vasind’ and ‘Tarapur’ undertaking of the Company to JSW Steel Coated.

(d) Amalgamation of Residual JSW ISPAT with the Company, pursuant to which the shareholders of JSW ISPAT will be entitled to shares of the Company as under:

(i) The equity shareholders of JSW ISPAT will be entitled to 1 (One) fully paid-up equity share of face value Rs. 10/- (Rupees Ten Only) each of the Company for every 72 (Seventy Two) fully paid up equity shares of Rs. 10/- (Rupees Ten Only) each of JSW ISPAT held by them (“Share Exchange Ratio”); and

(ii) The preference shareholders of JSW ISPAT will be entitled to 1 (One) fully paid up non-convertible cumulative redeemable preference share of face value Rs. 10/- (Rupees Ten Only) each of the Company for every 1 (One) fully paid up non-convertible cumulative redeemable preference share of face value Rs. 10/- (Rupees Ten Only) each of JSW ISPAT held by them.

following implementation of the Scheme and the issue of shares as above, the Company’s aggregate equity capital would stand increased from Rs. 2231.172 Millions to Rs. 2417.220 Millions consisting of 241.722 Millions equity shares of Rs. 10 each, subject to minor changes, if any, upon rounding off of fractional entitlements. Besides, the Company’s aggregate preference capital would stand increased from Rs. 2790.349 Millions to Rs. 7644.495 Millions comprising of 279.034 Millions - 10% cumulative redeemable preference shares of Rs. 10/- each and 485.414 Millions - 0.01% non-convertible cumulative redeemable preference shares of Rs. 10/- each, subject to minor changes, if any, upon rounding off of fractional entitlements.

The Company’s shareholding in JSW ISPAT will stand cancelled under the Scheme. Upon allotment of the new shares, the shareholding of JFE Steel International Europe B.V, the affiliate of the Company’s Foreign Collaborator, JFE Steel Corporation, Japan will stand diluted to 14.92% of the equity share capital of the Company from 16.17%.

The said Scheme has been approved by the requisite majority of shareholders on January 30, 2013 and the Competition Commission of India (CCI) and has the No-objection of the National Stock Exchange of India Limited and that of BSE Limited. On May 3, 2013 the Bombay High Court sanctioned the said Scheme with effect from July 1, 2012, being the appointed date. The certified copy of the Court Order is awaited, on receipt of which the Company will initiate requisite formalities to give effect to the Scheme. Accordingly, the accounting treatment laid out in the Scheme and consequential adjustments that would arise will be dealt with by the Company in the financial statements, once the Scheme is implemented.

FINANCIAL HIGHLIGHTS:

STANDALONE RESULTS:

The Company produced 8.52 million tonnes of crude steel in FY 2012-13, up 15% over the previous year. Its steel sales grew to 8.87 million tonnes, increased by 14% year on year. The Company took several initiatives during the last financial year viz; 2nd phase of Beneficiation plant, augmented in-bound and out-bound logistics infrastructure to enhance flexibility in utilization of inputs and dispatch of finished products, commissioning of 4th Stove of BF 3 and enhanced product portfolio by completing 2nd phase of HSM II, increased capacities of Colour coated products at Vasind and Tarapur Works and also achieved increased sales volumes through its retail outlets ‘JSW Shoppe’. These initiatives helped in achieving impressive growth of volume production and sales.

The Gross Turnover and Net Turnover for the year was Rs. 387630.000 Millions and Rs. 353880.000 Millions respectively, showed a growth of 12% and 10% respectively. The Operating EBITDA was Rs. 63090.000 Millions, showed a growth of 12% with an improvement in EBIDTA margins to 17.8%. The net profit after tax was Rs. 18010.000 Millions showing a growth of 11%, after considering exceptional loss of Rs. 3670.000 Millions, due to the significant movement and volatility in the value of the rupee against US dollar. The net worth of the Company increased to Rs. 199370.000 Millions as on March 31, 2013, from Rs. 184970.000 Millions as on March 31, 2012. The Company’s net debt gearing was at 0.82 (compared to 0.69, as on March 31, 2012) and net debt to EBIDTA was at 2.59 (compared to 2.27, as on March 31, 2012).

PROSPECTS:

Indian economy witnessed one of its most challenging times during FY’13 with high inflation, elevated interest rates, low industrial production, depreciating Indian Rupee which adversely affected its external trade resulting in skewed trade and fiscal deficits and subdued economic growth estimated at 5%. Country’s under performance was partly due to the muted and uneven Global economic recovery in 2012 with World GDP slowing down to 3.2%.

Outlook for Global economy is expected to progressively improve with more accommodative monetary policies, improving fiscal stability and assuming absence of any adverse events resulting in a gradual restoration of confidence during 2013 through 2014. In accordance, IMF has projected World GDP to grow at 3.3% during 2013 and increasing to 4% in 2014. Positive influence of Global economy coupled with gaining prospects for proactive Reformatory Policy measures is expected to help Indian economy recover with an estimated growth of 6-6.5% during FY’14. Current account deficit is expected to witness a further reduction under a modest recovery of exports, improved inflows and remittances assuming stability in Oil / Gold import basket.

Global Steel sector witnessed a destocking during C.Y. 2012 influenced by growing economic uncertainties coupled with a soft lending for Chinese economy – resulting in a marginal growth of 1.2% each for Global steel production as well as demand. During FY’13, Indian crude steel capacity increased by production increased by 5.4% to 78 million tonnes while domestic demand saw a growth of 3.3% to 73 million tonne. The demand was majorly affected by underperforming investment growing @ 1.7%, depressed industrial growth at 1%, decelerating auto production growing at 2% and Rupee witnessing a sharp depreciation of 14% putting further pressure on margins.

World steel demand is projected to witness an increment of 41 million tonnes moderately up by 2.9% to 1454 million tonnes in C.Y. 2013 with China expected to grow by 3.5% to 669 million tonnes – contributing 46% to World steel demand. However, the large “Effective Surplus” capacity of approximately 350 million tonne coupled with almost stagnant domestic demand projected for major exporting economies including Japan, Korea, Russia and Ukraine remains a major challenge for a sustainable growth of Global steel industry.

In expectation of a normal monsoon, the growing income of farm sector is expected to translate into rising consumption. Further, accelerated approach to reformatory policy initiatives with reducing subsidies, expanding FDI limits in Multiple-brand retail, Insurance, Banking etc., proactive role of Cabinet Committee for Investment for timely clearances of projects coupled with improving industrial production and growing focus on Infrastructure development is expected to witness a more sustainable economic development and growth with a moderate inflation and declining deficits. At the back of a modest economic recovery Indian Steel industry remains optimistically cautious with demand expected to complement the country’s economic performance in FY’14. However, surging imports at incentivized duty rates under the Free Trade Agreements with Korea and Japan coupled with depreciating Indian Rupee remain major challenges for the Indian steel industry.

PROJECTS AND EXPANSION PLANS:

PROJECTS COMMISSIONED DURING FY 2012-13:

VIJAYANAGAR WORKS:

- Revamped Corex 2 with added feature of Aerial Gas Distribution system (AGD) to increase its capacity from 0.80 MTPA to 0.85 MTPA.

- Enhanced the hot metal capacity in Blast Furnace II from current 1.3 MTPA to 1.4 MTPA by distributing feed burden better and replacing top charging system with improved

design.

- Enhanced capacity of HSM II by 1.5 MTPA from 3.5 MTPA to 5 MTPA.

- Completed second phase of Beneficiation Plant, taking the capacity to 20 MTPA.

- Commenced dry quenching of coke from the CDQ project commissioned by JSW Projects Limited.

- Commissioned 60 tonnes per hour (tph) Blast Furnace gas-fired boiler to minimize flaring of gases from furnaces.

SALEM WORKS:

- Commissioned 75 tph coke drying unit to reduce coke moisture, leading to substantial savings.

VASIND/TARAPUR WORKS:

- Enhanced capacity of colour coating line at Tarapur from 0.232 MTPA to 0.276 MTPA.

- Commissioned state-of-the-art new colour coating line with capacity of 0.15 MTPA at Vasind.

- Commissioned a new 300 KL per day capacity effluent treatment plant.

The benefits on commissioning these projects during FY 2012-13 are expected to accrue during FY 2013-14.

PROJECTS UNDER IMPLEMENTATION:

1) CAPACITY ENHANCEMENT PROJECTS

Vijayanagar Works

a) Revamping and enhancing capacity of Corex-1 from 0.80 MTPA to 0.85 MTPA.

b) Augmenting casting capacity at steel melting shop No. 1 by adding 1,600 mm wide caster.

c) Augmenting secondary steel melting capacity by adding one ladle heating furnace.

d) Installing Nodulizer for better granulometry of low-grade iron ore in Sinter Plant No. 1, 2 and 3.

e) Increasing the capacity of Blast Furnace-I from 0.9 MTPA to 1.8 MTPA.

f) Expected commissioning 0.2 MTPA non-grain oriented electrical steel project in FY 2014-15.

Salem Works

a) Installation of Kocks block for reducing and sizing block capacity and quality of bar and rod mill.

b) Automatic inspection line for Blooming Mill, de-bundling, de-barring and second straightener.

Vasind/Tarapur Works

a) Appliance grade Colour Coating Line with a capacity of 0.075 MTPA at Vasind

b) New Galvanising Line with dual pot of Galvalume cum Galvanising line with capacity of 0.2 MTPA at Tarapur.

c) Upgradation of Cold Rolling Mill TM – I and II at Tarapur.

2) EFFICIENCY, PRODUCTIVITY IMPROVEMENT AND COST REDUCTION INITIATIVES

VIJAYNAGAR WORKS

a) Installed waste heat recovery system at Sinter Plant 2, 3 and 4.

b) Installed waste heat recovery system at Blast Furnace 4.

c) Utilized surplus gases within the plant to generate power and to achieve zero flaring of gases.

d) Used BOF sludge and fine dust fumes for micro pellet plant.

e) Used mill scale generated from various mills for mill scale briquetting.

f) Installed burner system in existing CPP 3 and 4 boiler for increasing the utilization of waste gas.

SALEM WORKS

a) Installed 32 tph waste heat recovery boiler.

b) Commissioned new wagon tippler to reduce demurrage and handling loss.

VASIND/TARAPUR WORKS

a) Converted LPG heating system to natural gas system.

b) Commissioned railway siding at Vasind

3) OTHER PROJECTS

VIJAYANAGAR WORKS

CRM II 1st phase, comprising 2.30 MTPA of pickling line, and Tandem Cold rolling Mill (PLTCM), Continuous Annealing Line (CAL) of 0.95 MTPA and Continuous Galvanizing Line (CGL) of 0.4 MTPA, is scheduled to be commissioned in the third quarter of 2013. Moreover, in Phase II, the second CAL line is expected to be commissioned by December 31, 2014. The Company is also setting up a new melting shop with 1.5 MTPA capacity, comprising Electric Arc Furnace with a 1.5 MTPA billet caster. This new melting shop, along with a new Bar Mill with a capacity of 1.2 MTPA, is scheduled to be commissioned in FY 2014- 15. This project will enable the Company to produce 10 MTPA finished steel at Vijayanagar works.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

· The world witnessed a major economic slowdown in 2012 due to the uncertainties of fiscal imbalance in the AME’s coupled with reduced trade and investments.

· Signs of improvement in USA on account of falling unemployment, growing savings and investments.

· The Chinese economy witnessed a gradual cooling of investments and industrial growth which were substituted by increasing consumer spending.

· Frequent Government stimulus and the depreciating yen along with the fiscal consolidation in the EU are positive signs for the global economy.

· Lower commodity prices, falling inflation and abundant liquidity are favourable for the EMEs.

· Global trade volumes are projected to increase from 2.5% in 2012 to 3.6% in 2013.

· Global GDP recovery is projected at 3.3% in 2013 as against 3.2% in 2012.

· Long term challenges – Fiscal Balancing for AME’s coupled with improved monetary measures in part of EMEs.

The global economy continues to face significant uncertainties. Anaemic rates of economic growth in the developed world, coupled with slowdown in developing countries, pose challenges to both policymakers and companies. Data from the International Monetary Fund (IMF) shows that global GDP expanded at 3.2% in 2012, with average growth rates of 1.3% and 5.1% in advanced and developing economies, respectively. Global inflation was 3.9% in 2012 [Source: The World Bank].

In 2012, European countries, such as France, Italy Portugal, Ireland, Greece and Spain, remained afflicted with high levels of public debt and rising youth unemployment. Political uncertainty surrounding the implementation of austerity measures, such as debt restructuring and budgetary tightening, was opposed severely by the citizens of these countries. Across the Atlantic, the US witnessed slow economic recovery and a gradual creation of more private sector jobs. Japan witnessed economic contraction for two consecutive quarters. The nation recovered gradually from the devastating tsunami in the previous year, which disrupted manufacturing supply-chains. However, the rising yen, a diplomatic row with China and subdued global demand affected exports, which are crucial for the nation’s economic stability. Major developing countries, the beacons of rising prosperity over the past few years, slowed down as well. Economic growth in China, India, Brazil and South Korea decelerated due to a combination of domestic policies, which hampered capital formation, and sluggish export demand. Despite the slowdown, emerging markets expanded at a rate significantly higher than the developed countries. This showed that the shift of economic power to emerging markets is well and truly underway.

INDIAN ECONOMY

· High inflation in addition to the global economic slowdown were the major factors resulting in the monetary and fiscal imbalance adversely impacting economic growth in FY 2012-13 estimated at 5%.

· Capital accumulated in projects as past investment has failed to yield commensurate output depressing economic growth.

· Declining inflation combined with improving liquidity and reducing benchmark rates are expected to gradually improve domestic economic activities providing impetus to industrial production, investments and consumer expenditure.

· The Prime Minister’s Economic Advisory Council has projected the GDP to grow at 6.4% during FY 2013-14. Fiscal deficit is expected to be maintained at 4.8%, Current Account Deficit (CAD) at 4.7% and inflation at 6%.

· Reformative measures in the form of reducing fuel subsidies with Direct Cash Transfer of subsidies, FDI in retail and growing rural income through MGNREGA will also aid economic growth.

· An improved monsoon with growing rural income could provide the necessary support to improve economic prospects.

Headwinds in developed nations and domestic supply bottlenecks affected India’s economic growth in FY 2012-13. Moreover, RBI’s monetary tightening, especially the successive hikes in repo rate, increased the cost of capital and lowered business investment. As a result, the Indian economic output growth was estimated at 5% in FY 2012-13, compared to 6.2% in the previous fiscal year.

OUTLOOK

GLOBAL ECONOMY

The global economic outlook continues to be weak with tight liquidity, contracting demand, declining trade and reducing investments. World witness bold and challenging fiscal measures in terms of monetary easing and stimulus measures to secure and stimulate economic recovery.

International Monetary Fund projects a modest economic recovery in 2013 with world GDP expected to grow at 3.3%, an increase from 3.2% in 2012. The US economy is expected to adopt a more moderate fiscal consolidation than envisaged and is projected to sustain its GDP growth at 1.9% in 2013 as against 2.2% estimated for 2012. European economic growth is projected to continue to contract by 0.3% in 2013 after witnessing an estimated economic deceleration of 0.6% in 2012. Japan is expected to overcome its recession stimulated by monetary-easing with GDP growth for 2013 projected with a downside risk at 1.6% visà-vis 2% estimated for 2012.

China’s economic growth softened in 2012 with GDP growth at 7.8%, impacted by the slowing down of Investment, industrial growth and exports on one hand and domestic consumption growing only moderately, on the other Nonetheless, China continues to remain the major global economic engine and is slated to retain economic growth momentum, projected to grow at 8.0% in 2013. Global steel outlook – growth amidst uncertainties Global steel demand is expected to witness a moderate improvement vis-à-vis 2012 led by low inventory levels duly supported by improving economic performance across geographies. Raw material prices are slated to remain less volatile as compared to FY 2012-13. In view of the above, the World Steel Association has projected a global steel demand growth at 2.9% with China at 3.5% for CY 2013.

However, the world is reeling under the pressure of large surplus capacity which will remain a serious cause of concern, especially in times of subdued global demand.

INDIAN ECONOMY

The Indian economy is expected to witness a moderate recovery in the medium term on account of ongoing reformatory measures, fiscal consolidation, improved prospects of liquidity which are envisaged to improve industrial and manufacturing growth duly supported by reducing inflation.

In accordance, economic growth is projected to increase by around 6.4% in FY 2013-14 as per the projection given by the Prime Minister’s Economic Advisory Council while the Hon’ble Finance Minister has projected the same at 6.1% to 6.7% in the Union Budget speech for FY 2013-14.

INDIAN STEEL OUTLOOK

Indian steel demand is expected to boost by Infrastructure & Construction development, sustained by industrial, manufacturing and capital goods and be stimulated by the automotive and consumer durable sectors. The USD 1 trillion investment in to infrastructure and construction planned during the 12th Five Year will drive demand. Direct demand for infrastructure and construction is pegged at approximately 40 MnT with per capita steel demand projected to increase from 60 kg in FY 2012-13 to 88 kg by FY 2016-17. The Indian Steel Industry is expected to achieve a growth of 5.9% during FY 2013-14 as per the projection given by World Steel Association.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF (AS ON 31.03.2013):

a) Bills Discounted Rs. 30129.200 Millions (Previous year Rs. 31171.300 Millions).

b) Guarantees provided to banks on behalf of subsidiaries Rs. 12239.500 Millions (Previous year Rs. 10962.700 Millions).

c) Disputed claims/levies (excluding interest, if any), in respect of:

(i) Excise Duty Rs. 1998.200 Millions (Previous year Rs. 2002.700 Millions);

(ii) Custom Duty Rs. 6327.600 Millions (Previous year Rs. 4774.400 Millions);

(iii) Income Tax Rs. 14.700 Millions (Previous year Rs. 14.700 Millions);

(iv) Sales Tax / Special Entry tax Rs. 2269.300 Millions (Previous year Rs. 1703.000 Millions);

(v) Service Tax Rs. 981.000 Millions (Previous year Rs. 700.800 Millions);

(vi) Miscellaneous Rs. 0.500 Millions (Previous year Rs. 0.500 Millions);

(vii) Levies by local authorities Rs. 30.400 Millions (Previous year Rs. 30.400 Millions); and

(viii) Claims etc. by suppliers and other parties (including for Forest Development Tax) Rs. 8727.900 Millions(Previous year Rs. 5090.000 Millions)

In 2008, the State of Karnataka levied a Forest Development Tax (FDT) treating iron ore as a forest produce. Writ

Petitions challenging the levy of FDT filed before Karnataka High Court by various stakeholders are pending for disposal. Accordingly, the Company has disclosed in the financial statements FDT paid under protest of Rs. 6507.500 Millions (Including under e auction) as an advance and Rs. 8660.300 Millions (above) as a contingent liability.

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture And Fixtures

· Vehicles and Aircrafts

Intangible Assets

· Software

STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER YEAR ENDED 31 MARCH 2014

Rs. in Millions

Sr. No.	Particular	Quarter Ended		Year ended
		31.03.2014	31.12.2013	31.03.2014
		Audited	Unaudited	Audited

1.	Income from Operations
	Sale of Products
	Domestic Turnover	1086.333	958.211	3954.177
	Export Turnover	246.705	306.925	898.541
	Total	1333.038	1265.136	4852.718
	Less: Excise Duty	107.561	91.992	399.771
	Net Sales	1225.477	1173.144	4452.947
	Other Operating Income	23.464	23.305	76.825
	Total Income From Operations (Net)	1248.941	1196.449	4529.772

2.	Expenditure
	Cost of materials consumed	711.544	729.880	2670.582
	Purchase of stock in trade	4.469	5.136	49.481
	Changes in inventories of finished goods, work in progress and stock in trade	23.929	(24.623)	(24.410)
	Employee benefits expenses	19.714	19.806	79.938
	Depreciation and amortization expenses	70.635	69.040	272.588
	Power and Fuel	79.895	81.191	331.364
	Other expenses	159.763	154.737	544.538
	Total Expenses	1069.949	1035.167	3924.101

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	178.992	161.282	605.671
4.	Other Income	7.732	6.066	33.105
5.	Profit Before Interest and Exceptional Items (3+4)	186.724	167.348	638.776
6.	Finance Costs	69.017	71.919	274.013
7.	Profit After Interest but before Exceptional Items (5-6)	117.707	95.429	364.763
8.	Exceptional Items	--	--	(169.230)
9.	Profit before Tax (7+8)	117.707	95.429	195.533
10.	Tax Expense	37.520	30.214	62.082
11.	Net Profit after Tax (9-10)	80.187	65.215	133.451
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	24.172	24.172	24.172
15.	Reserves Excluding Revaluation Reserve			2321.699
16.	Earning Per Share (EPS) (Rs.)-
	a) Basic	32.84	26.64	53.86
	b) Diluted	32.84	26.64	53.86

	Debt service coverage ration			1.37
	Interest service coverage ration			2.47

17.	Public Shareholding
	-Number of Shares	148782675	151523720	148782675
	- Percentage of Shareholding	61.55%	62.69%	61.55%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered	92939369	90198324	92939369
	- Number of Shares	42256336	40511636	42256336
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	45.47%	44.91%	45.47%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	17.48%	16.76%	17.48%
	b) Non Encumbered
	- Number of Shares	50683033	49686688	50683033
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	54.53%	55.09%	54.53%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	20.97%	20.55%	20.97%

Particulars	3 Months Ended 31.03.2014
Pending at the beginning of the quarter	--
Received during the quarter	107
Disposed of during the quarter	107
Remaining unresolved at the end of the quarter	--

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Rs. in Millions

Sl. No.	Particulars	Quarter Ended		Year Ended
		31.03.2014	31.12.2013	31.03.2014
		Audited	Unaudited	Audited
1	Revenue by business segment:
	Steel	1267.457	1231.612	4633.464
	Power	97.865	96.937	392.095
	TOTAL	1365.322	1328.549	5025.559
	Less : Inter Segment Revenue	121.053	132.100	500.459
	Unallocated Items Income	4.672	--	4.672
	TOTAL INCOME	1248.941	1196.449	4529.772

2	Segment Results before finance costs and tax
	Steel	142.753	125.985	466.088
	Power	37.105	35.297	140.449
	TOTAL	179.858	161.282	606.537
	Less: Unallocated Items Income
	Finance Cost	69.017	71.919	274.013
	Exceptional Item Exchange Loss/ (Gain) (net)	--	--	169.230
	Unallocated expenses net of unallocable income	(6.866)	(6.066)	(32.239)
	NET PROFIT (+) / LOSS(-) BEFORE TAX	117.707	95.429	195.533

3	CAPITAL EMPLOYED
	(Segment assets less segment liabilities
	Steel	4212.150	4076.662	4212.150
	Power	212.134	189.678	212.134
	Unallocated	(1995.866)	(1902.405)	(1995.866)
	TOTAL	2428.418	2363.935	2428.418

SOURCES OF FUNDS	31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	106.719
(b) Reserves & Surplus	2321.699
Total Shareholders’ Funds (1) + (2)	2428.418

(3) Non-Current Liabilities
(a) long-term borrowings	2105.432
(b) Deferred tax liabilities (Net)	190.851
(c) Other long term liabilities	46.640
(d) long-term provisions	4.067
Total Non-current Liabilities (3)	2346.990

(4) Current Liabilities
(a) Short term borrowings	392.066
(b) Trade payables	999.125
(c) Other current liabilities	641.597
(d) Short-term provisions	34.372
Total Current Liabilities (4)	2067.160

TOTAL	6842.568

II. ASSETS
(1) Non-current assets
(a) Fixed Assets	4415.255
(b) Non-current Investments	431.285
(c) Long-term Loan and Advances	496.147
(d) Other Non-current assets	--
Total Non-Current Assets	5342.687

(2) Current assets
(a) Current investments	6.770
(b) Inventories	619.657
(c) Trade receivables	221.874
(d) Cash and cash equivalents	16.572
(e) Short-term loans and advances	605.008
(f) Other current assets	0.000
Total Current Assets	1499.881

TOTAL	6842.568

Note:

In view of the losses from operations of, JSW Steel USA Inc, a subsidiary of the Company for last few years, the Company has considered valuations of its fixed assets carried out by an independent valuer and concluded that no provision is presently necessary against the carrying amounts of investments and loans aggregating to Rs. 20074.600 millions and with respect to financial guarantees of Rs. 27525.700 millions (considered as Contingent Liability) relating to the said subsidiary.

Exceptional items represents effect of significant movement and volatility in value of Indian rupee against US dollar

During the quarter ended March 31, 2014, the Company has made additional investments aggregating to Rs. 1184.100 millions in subsidiaries, associate and joint venture companies.

On May 03, 2013 the Bombay High Court sanctioned a Composite Scheme of Amalgamation and Arrangement under sections 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 and their respective shareholders and creditors with effect from July 01, 2012, being the appointed date. The certified copy of the scheme is filed with the Registrar of Companies (RoC) on June 01, 2013. Accordingly, effect of the scheme is considered in the results for the quarter and year ended March 31, 2014. Consequent to the merger, the results are not fully comparable with corresponding periods of the previous year.

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.

The Board of Directors have recommended dividend of Rs. l Per share on 10% Cumulative Redeemable Preference shares of Rs. 10 each and dividend of Rs. 11 Per equity share of Rs. 10 each for the year 2013-14, subject to the approval of members at the Annual General Meeting.

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

The figures of the quarter ended 31st March are the balancing figures between the audited figures in respect of the full financial year and published year to date figures upto third quarter of the relevant financial year.

The financial results of the Company and consolidated financial results for the year ended March 31, 2014 which have been extracted from the financial statement audited by the statutory auditors, have been reviewed by the Audit committee and taken on record by the Board of Directors at its meeting held on May 27, 2014.

AS PER WEBSITE DETAILS

PRESS RELEASE

JSW STEEL OCTOBER PRODUCTION UP 9% AT 10.62 LT

During the first seven months of the current fiscal, the company has achieved crude steel production of 6.94 MT, registering a growth of 4.69 percent over the corresponding period of last year.

LT of crude steel in the same month last year. The production numbers include steel production from Dolvi facility of erstwhile JSW Ispat Steel, which has now been merged into JSW. Its production of flat steel was up 36 percent at 8.67 LT, while production of long steel declined by 10 percent to 1.49 MT, JSW Steel said in a statement.

During the first seven months of the current fiscal, the company has achieved crude steel production of 6.94 MT, registering a growth of 4.69 percent over the corresponding period of last year. Flat steel is largely used by automobile and consumer durables sectors, while long steel is used in the construction and infrastructure sectors. In 2012-13, JSW had produced 8.52 million tonnes of crude steel despite continuation of the iron ore crisis in Karnataka. Shares of the company were trading at Rs 866 apiece on the BSE at 1400 hours, down 0.34 per cent in an overall weak market.

JSW STEEL TO RAISE $600 MN FROM OVERSEAS MARKET

As per the private steel firm, the average interest cost of the company stands at around 8.25 percent and post-fund raising, it will be reduced by around one percentage point.

"We plan to raise around USD 600 million through ECB route in order to align our rupee and dollar denominated debt at around 50:50 ratio. Part of this total amount is likely to be raised in the current quarter," JSW Steel Joint Managing Director and Group Chief Financial Officer Seshagiri Rao told reporters here.

It will also reduce the interest outgo of the firm through reduction in average interest cost, he added. As per the private steel firm, the average interest cost of the company stands at around 8.25 percent and post-fund raising, it will be reduced by around one percentage point.

By the end of September quarter, JSW Steel has a net debt of Rs.304350.000 Millions with a debt to equity ratio of 1.44. While 39 per cent of the debt book comprises foreign debt, the rest is in rupee terms.

Rao said the company intends the rupee debt to foreign currency debt at 50:50 ratio going ahead. Meanwhile, JSW Steel said most of its loans are long-term in nature and it doesn't have any repayment liability out of expiry of any short-term loan.

Referring to bidding for Stemcor assets, Rao said the company will submit its bid by November 18. JSW Steel, along with Tata Steel, Essar Steel, JSPL, Bhushan Steel and Aditya Birla Group firm Essel Mining, is in the fray to acquire assets of Stemcor, which is looking to hive off its Indian assets.

Talking about raw material pricing, Rao said, while iron ore rates are showing a downward bias, coking coal prices are likely to stabilise at the present level.

JSW STEEL Q2 STEEL PRODUCTION UP 5.67% AT 2.98 MT

The company, headed by Sajjan Jindal, had produced 2.82 MT of crude steel in July-September 2012. The production numbers include steel production from Dolvi facility of erstwhile JSW Ispat Steel, which has now been merged into JSW.

During the last quarter, JSW's production of flat steel was up 18 percent at 2.45 MT, while production of long steel increased by 3 per cent to 0.46 MT, the company said in a statement.

It further said that "the company took shutdown of one of its Corex furnaces for relining and capacity enhancement during the quarter and the same has recommenced production from September 12, 2013.

During the first half of the current fiscal, JSW achieved crude steel production of 5.84 MT, registering a growth of 3 per cent over the corresponding period of last year.

Flat steel is largely used by automobile and consumer durables sectors, while long steel is used in the construction and infrastructure sectors. In 2012-13, JSW had produced 8.51 million tonnes of crude steel despite continuation of the iron ore crisis in Karnataka.

Shares of the company were trading at Rs 785.85 apiece on the BSE during the afternoon trade, down 0.73 per cent in an overall weak market.

JSW STEEL TO HIKE PRICE BY 4-6% AS COAL GETS COSTLIER

Following a steep hike in raw material cost, (especially coal) JSW Steel has decided to raise steel price by 4-6 percent from September 1, reports CNBC-TV18. Imported coal price has moved up over 8 percent to USD 136/tonne and since the rupee depreciated around 9 percent during the June quarter, the firm reported forex loss of Rs 850 crore.

Meanwhile, brokerages don’t seem bullish on steel sector, as not only rupee, but weak demand from infrastructure segment will continue to haunt steel makers throughout FY14.

For instance, a recent report by Bank of America Merill Lynch stated that amid bleak economic environment, domestic steel outlook remains weak with lesser possibility of turnaround in the current financial year. The firm also pointed out that many delayed steel projects are likely to be commissioned during the year leading to overcapacity.

Ernst and Young had in its June report said that global steel demand is unlikely to improve significantly in 2013 and sluggish demand combined with factors such as excess steelmaking capacity will challenge the sustainability of high-cost manufacturers.

India Ratings and Research has revised its outlook on Indian steel producers to ‘negative’ from ‘stable’ for H2FY13. “The negative outlook is in view of the higher-than-expected deterioration in the financial and liquidity profiles of rated issuers. The continuous weak macro-economic environment in India has resulted in muted demand for steel products from the end-user industries,” the credit rating agency said.

Steel makers are going through rough whether as is evident from the 13-share metals index falling over 30 percent year-to-date, compared to only 3 percent fall in Sensex

NEW STEEL IMPORT NORMS TO DENT CAPACITY USAGE: EXPERTS

The recent government notification to ease steel import norms will not only increase inward shipment of the metal, but also add to woes of domestic firms battling demand slowdown, industry experts said today. The industry called for an review of the decision, saying the quality of domestic steel is of global standards.

"The government's latest move will further increase import of steel, resulting in idling of local production capacity, further adding to the woes of ballooning current account deficit," JSW Steel Joint MD, and Group Chief Financial Officer Seshagiri Rao told PTI in an email.

"The long-term implication is dangerous, as the domestic industry is facing demand slowdown and domestic surplus will further go up," he added. In its August 7 order, the government had exempted steel and steel products imported for mega industrial projects with investment over Rs 10000.000 Millions from the quality control regulation known as the 'Steel and steel products (quality control) second order of 2012'.

The government's move has caused consternation within domestic steel companies about import of a lot of inferior quality steel products into the country. "The main worry is that apart from plates, a lot of plain-vanilla low-grade structural steel like rebars and TMT bars will also get into the country. It will strike at the very heart of our steel industry where currently a lot of idle capacity exists. The industry needs a curb on imports to stop dumping," Rao added.

Essar Steel India Chief Commercial Officer H Shivramkrishnan said, "The steel industry is already hit from all sides, including high input cost, cheap FTA imports, proposed reduction in export duty on iron ore and the weakening domestic demand.

"The new rule has the potential to jeopardise the domestic steel industry due to threat of cheap imports from countries like Ukraine and China and would add to the woes of the already struggling industry besides adding to the high CAD". He also termed the government move as surprising and retrograde.

JSW, JFE SIGN AGREEMENT TO PRODUCE ELECTRICAL STEEL

JSW Steel today said it has inked an agreement with JFE Steel Corporation of Japan to produce electrical steel sheets used mainly in the power sector. The two companies already have an alliance for making steel meant for the auto sector.

JFE Steel Holdings, the parent company of JFE Steel Corporation, has 15 per cent stake in Sajjan Jindal-led JSW Steel, as on September-end 2012. "...a joint agreement (has been) signed where JFE will provide technology for production of non-oriented electrical steel sheets (CRNGO) at the JSW's Vijayanagar plant in Karnataka," the domestic steel maker said in a statement.

However, JSW Steel did not give details of the terms of the agreement. "By leveraging JFE Steel's well-established manufacturing technology for electrical steel, shall produce CRNGO grade electrical steel and supply to its customers, including local companies as well as Japanese, European and US-affiliated companies doing business in India," JSW Steel said.

India does not have the technology to produce electrical steel sheet products and entirely depend on imports, which according to an industry source, could be valued at around Rs 130000.000 Millionse each year. "JSW Steel plans to start up its new annealing and coating line for electrical steel sheets in latter half of 2014. The initial annual output is projected to be 200,000 tonnes, which will be increased to 0.6 million tonnes per year in phases," it said.

The company would also take sight on the production of Cold Rolled Grain Oriented (CRGO) grade in future, the release said, adding the company envisages becoming the largest electrical steel producer in the country. Shares of JSW Steel were last trading at Rs 766.9 apiece, up 2.95 per cent on the BSE.

CCI gives approval to proposed JSW Steel-JSW Ispat merger

JSW STEEL TO BUY 50% IN VALLABH TINPLATE FOR RS 460.000 MILLIONS

Announcing its entry into tinplate business, JSW Steel on Friday said it will acquire a 50 per cent stake in Punjab-based Vallabh Tinplate Private Limited (VTPL) for about Rs 460.000 millions.

The deal will be completed in two phases, JSW said in a filing to the BSE. Of this, the company will acquire a 26 per cent stake in VTPL immediately and shall increase its stake to 50 per cent in due course, it said.

"The total investment to acquire 50 per cent equity stake in VTPL is estimated to be a maximum of Rs. 460.000 millions depending upon financial performance of VTPL," the filing noted.

"Accordingly JSW Steel has executed a legally binding share purchase agreement and shareholders agreement with the shareholders of VTPL and VTPL."

VTPL, owned by Vardhaman Industries Ltd, has a 60,000 tonnes per annum tinplate manufacturing facility in Punjab's Patiala district.

The acquisition marks JSW Steel's entry into growing Tinplate business in India, the company said, adding, it will have representation in the Board of VTPL proportionate to its equity holding with a right to appoint certain key managerial personnel.

Tinning is the process of thinly coating sheets of wrought iron or steel with tin, and the resulting product is known as tinplate. It is most often used to prevent rust.

JSW Steel is a leading domestic steel manufacturer with an installed capacity of 14.3 million tonnes. It has a strategic goal to enhance its share of value added products segment in the overall product basket to about 40 per cent, the company said.

SESA, JSW ACCUSE EACH OTHER OF MANIPULATING IRON ORE PRICES

The war of words between steel and mining companies in Karnataka have escalated over prices of iron ore with two largest firms, Sesa Sterlite and JSW Steel, accusing each other of misusing market dominance and forming cartels.

Leading private iron ore producer Sesa Sterlite alleged that JSW Steel, the largest steel producer in Karnataka, is manipulating prices of iron ore by misusing its dominance in the local market.

Terming the allegation as false and baseless, JSW Steel said that Karnataka mining firms are promoting "greed" by unfairly fixing higher iron ore prices and propagating misleading and baseless information to divert attention.

"By virtue of having monopoly, they (JSW) are trying to affect and manipulate the base pricing scenario. They are trying to force their own price on the sellers," Sesa Sterlite's executive director (Iron Ore Business) P K Mukherjee told PTI.

JSW Steel alone has bought 63 per cent of the total 12 million tonnes (MT) of iron ore sold in Karnataka since April, 2013 (when the mining ban was lifted by the Supreme Court in the state) and "having monopoly in the market, they are trying to get the maximum advantage of this situation, he alleged.

Other two major buyers Kalyani Steel and BMM Ispat account for next 12 per cent of total sales, he said.

"First, they (JSW, Kalyani and BMM) allow smaller companies to buy in the auction. Once appetite of the smaller firms is over, Raja baitha hai khane ke liye (the bid daddy is here to manipulate)," he alleged.

When asked about the allegations, JSW deputy managing director Vinod Nowal said, "What is claimed is false, untrue and baseless. If price can be manipulated by few steel companies, as falsely alleged, the iron ore should have been sold at base price. But it did not happen."

Mr. Nowal said that the base price itself is unfairly fixed which is double of what NMDC is offering. "This unjust act is done only with an intention to promote their greed by taking advantage of distress the steel industry is undergoing due to severe shortage of iron ore."

Since the fixation of base price at Rs. 5,000 per tonne is the final nail in the coffin, the steel companies has no option but to make all the stake holders aware of these misdeeds of certain private mining companies, he said.

The charges levelled by the two companies have come against the backdrop of Sesa Sterlite fixing the base price of its iron ore fines, having 61 per cent Fe, at Rs. 5,000 per tonne in the last e-auctions, held on January 31.

This action led to steel producers in Karnataka alleging cartelisation last week by the mining firms. The miners had retorted by making counter allegation of cartelisation by steel firms.

INDIA'S IRON ORE EXPORT TAX PRESSURES STEMCOR'S ASSET SALE

A new Indian export tax on iron ore pellets is weighing on the sale of the local assets of indebted British steel trader Stemcor, with at least one bidder saying the deal was now less lucrative than they had initially expected.

India began implementing a five percent tax on exports of iron ore pellets on January 27, a week after the deadline for the submission of financial bids for Stemcor's India assets.

At least two major local firms - Jindal Steel and Power Limited (JNSP.NS) and JSW Steel Limited (JSTL.NS) - have confirmed they had bid for the assets, which include iron ore mines and a 4-million-tonne a year pellet plant in the eastern Odisha state, collectively valued by an industry source at about $700-$750 million.

"It does affect it because if you're willing to do exports you lose that much more money which is equal to the export tax," Ravi Uppal, chief executive of Jindal Steel and Power, told Reuters by telephone when asked about the impact of the tax on the valuation of Stemcor's assets.

Uppal declined to comment further, but a senior company official, who declined to be identified because he is not authorised to speak to the media, said Jindal was still interested in the deal, but only if the price was "low enough".

Stemcor, one of the world's largest independent steel traders, declined to comment on the tax but said the sale process was making progress.

"We continue to have discussions with a number of parties regarding the sale," Charles Armitstead, a Stemcor spokesman, told Reuters via email.

The five percent export tax equates to an additional 500 rupees, or $8, per tonne in cost for an exporter, said Dhruv Goel, managing partner at industry consultancy SteelMint.

The main attraction of Stemcor's assets for the steelmakers are its iron ore mines, especially as mining bans and restrictions in the key producing states of Goa and Karnataka have slashed domestic supplies.

The bidders are not as keen on Stemcor's pellet plant because of stiff competition as more companies set up new facilities. Domestic capacity for iron ore pellets is seen rising to around 80 million tonnes in a couple of years from 50-55 million tonnes now, said Steel Mint's Goel.

Stemcor, a private British firm controlled by members of the Oppenheimer family, is raising money after failing to repay an $850 million debt in May last year. It reached a deal with lenders to extend a standstill agreement to the end of February that allows it to restructure a $1.25 billion debt.

CCEA DEFERS ISSUE OF PRIVATE COS' COAL BLOCKS ALLOCATION

The Cabinet Committee on Economic Affairs today did not take up the issue of 61 coal blocks allotted to private companies such as Tata Steel, Jindal Steel and Power Limited and Hindalco which have been unable to develop the mines within the stipulated timeframe.

"It (the agenda for modification in directions of the CCEA taken on January 13 pertaining to 61 blocks) has not been taken up for discussion," Finance Minister P Chidambaram told reporters after the meeting. Another minister said the issue could not be taken up due to paucity of time.

The CCEA, as per sources, was to modify its directions on these blocks which have been issued notices for not starting production.

In its last meeting on January 13, CCEA had directed the Coal Ministry to "propose the criteria for dealing with the identified 61 cases of coal blocks allocated to private companies in pursuance of the recommendations of the screening committee for vetting by the Attorney General of India".

Also read: No criminality in coal block allocation: CBI sources

It has also asked the ministry to "issue notices to all concerned including the state governments, the Ministry of Environment and Forests and the project proponents to submit their views within three weeks" and "based on the response from them the Inter-Ministerial Group (IMG) will make its recommendations and the competent authority will take a final decision".

The details of modifications could not be obtained. Meanwhile, IMG on coal blocks will meet on February 7-8 to decide the fate of these 61 mines. The IMG under the Chairmanship of Additional Secretary, Coal, will consider replies along with documents furnished by those allocated coal blocks in response to the notice issued.

The cases of allocates, which are required to obtain forest clearance (stage II) will be taken up subsequently.

In the two-day meeting, IMG will consider replies of 29 coal blocks of companies like Tata Steel, JSW Steel and Bhushan Power and Steel on February 7. On February 8, the replies of the remaining 32 coal blocks allotted to firms like Monnet Ispat and Energy and JSPL will be considered.

The government had earlier decided to de-allocate all the captive coal blocks which have not obtained environment and in-principle forest clearances and had issued show-cause notice to allocatees of 61 such mines.

The development followed the Supreme Court's posing some tough queries on allocation process for coal blocks and questioning the Centre over the functioning of the screening committee that made allotment recommendations.

Coal blocks, which are unexplored or partially explored at the time of allocation and where prospecting licence (PL) has not been obtained, will also be cancelled, it had said.

The allocatees have been given time till February 5 to obtain the requisite clearances and produce proofs supporting approvals.

JSW STEEL PROMOTER HIKES STAKE IN CO TO 4.74%

JSW Investments, a promoter group firm of JSW Steel, has increased stake in the company by 0.13 percent to 4.74 percent for nearly Rs 320.000 millions through open market transactions. JSW Investments had 4.61 per cent stake or 11,14,55,761 shares in the steel maker before it started buying, the company said in a filing with BSE today.

On December 20, it bought 4,132 shares for Rs 1.335 millions, followed by another 12,000 shares for Rs 11.800 millions on December 23. It again bought 0.135 million shares for Rs 1.335 millions on December 24 and 0.169 million shares on December 26 for Rs 169.300 millions. Following the transactions, JSW Investments now holds 4.74 per cent stake or 0.113 million shares in JSW Steel.

As on September 30, JSW Steel's promoters held 36.25 per cent stake in the firm. Jindal South West Holdings and Jindal Energy Investments have more than five per cent stake in the company. Shares of the company closed at Rs 1,020 apiece, up 1.30 per cent on the BSE today.

JSW STEEL'S MAIN PLANT BATTLING IRON ORE SHORTAGE

JSW Steel Limited (JSTL.NS) said its 10 million-tonne-per-year plant in Karnataka will not operate at more than 80 percent capacity in the near future as mining restrictions have stifled the supply of iron ore, a key feedstock.

Difficulty in sourcing iron ore has forced the company to go slow on plans to nearly triple annual capacity to 40 million tonnes in the next decade, which, along with Arcelor Mittal SA (ISPA.AS) and Posco (005490.KS) recently pulling out of projects, could derail India's steel production ambitions.

"After having invested here there is no way you can plan to get iron ore from outside of Karnataka (on a long term basis)," Seshagiri Rao, joint managing director of country's largest private steel producer, told Reuters on Wednesday.

"Logistically it is not possible."

Restrictions aimed at curbing illegal mining and delays in obtaining various approvals have meant that Karnataka's iron ore output is expected to be 18 million tonnes this fiscal year compared with the state's requirement of 40 million tonnes.

JSW Steel, whose second biggest shareholder JFE Steel is the world's ninth largest steel company and a unit of Japan's JFE Holdings Inc (5411.T), will have to wait for supply in Karnataka to improve to raise the plant's capacity from 70-80 percent currently, Rao said.

He did not say if that would affect JSW Steel's plans to produce 9.25 million tonnes of steel this fiscal year, a forecast that assumed a sufficient quantity of iron ore would be available. Its other plants in Tamil Nadu and Maharashtra make up its 14.3 million tonne capacity.

Iron ore production in Karnataka is expected to rise to 22.18 million tonnes in the year ending March 2015, according to a Karnataka government petition with the Supreme Court seeking to relax an annual mining cap of 30 million tonnes.

Capacity utilisation at steel mills fell to a low of 81 percent last fiscal year, making India a net steel importer for at least the fourth straight year. The situation had been expected to improve this year after the Supreme Court in April conditionally lifted a mining ban in Karnataka, but very few mines have restarted.

India produced 77.6 million tonnes of steel last fiscal year, well below its capacity of 90 million tonnes. Asia's third-largest economy, the world's fourth largest producer of steel, is targeting a capacity of 142.3 million tonnes by 2017 and 300 million tonnes by 2025.

But delays in obtaining iron ore mining rights and opposition to land acquisitions forced South Korea's Posco and top steelmaker ArcelorMittal earlier this year to pull out of two projects with planned capacity of 18 million tonnes in total.

To ensure steady supply of iron ore, JSW Steel is looking to buy UK trader Stemcor's Indian assets that include an iron ore mine and processing facilities in eastern Odisha state, valued by an industry source at up to $750 million.

"We're doing due diligence but have not taken a call," Rao said, adding that the final date for submitting bids was January 6 and a deal should be in place in the first half of next year.

"We are keen of course," he added.

STEEL MAKERS MAY TO RAISE PRICES BY RS 1,000/TONNE NXT MTH

Steel makers are mulling to raise price by Rs 1,000 a tonne from the beginning of next month to counter the cost push arising out of costlier iron ore and higher freight charges.

The proposed hike is likely to take the price of hot rolled coil (HRC), the benchmark steel product, to Rs 38,500 a tonne from Rs 37,500 per tonne now, said an industry source, declining to be identified.

Steel makers had previously hiked the price in September by up to Rs 2,500 per tonne, but holding on to it since then despite the NMDC hiking iron ore price by Rs 100 a tonne and the Railways imposing peak session charge from October.

Subdued market conditions, due to poor demand from the end-use segments such as construction and white goods, also prevented them from jacking up the price. India's steel demand grew by just 0.4 per cent during April-November period of the current fiscal.

"Steel prices are set to go up again. This is primarily on account of increase in iron ore price and Railway freight increase. These together inflated the cost of steel production in the region of approximately Rs 700 per tonne," an official of a private steel maker said.

Barring Tata Steel and Steel Authority of India, domestic steel makers mainly source their iron ore requirements from NMDC. A further hike of Rs 200 a tonne in December by the state-owned iron ore producer has impacted private sector steel makers.

It generally takes 1.6 tonne iron ore to produce a tonne of steel. The cost push went up further by around Rs 200 per tonne with the Railways imposing its annual busy season charge on freights from October, he said.

"Steel makers have been rolling over prices since October this year. It has now started to pinch their bottomlines. Hence steel prices are expected go up by around Rs 1,000 pertonne," he added.

Steel makers have also found a new reason to pass-on the inflated costs to consumers as their share of exports are on the rise leading to overcapacity situation in the domestic market evening out. The price at the international level too is inching up and now holding at the level of USD 650 a tonne.

Also read: JSW Steel's main plant battling iron ore shortage

"Indian steel mills continue to increase their share of exports and hence, the oversupply situation in the domestic market is getting evened out. We are not in a position to absorb the cost anymore. We are confident the increase in prices will get acceptance with the customers," a steel maker said.

Most of the leading domestic producers including SAIL, Essar Steel, Jindal Steel and Power and JSW Steel had raised prices in August and September expecting a revival in demand.

Sharp increase in coking coal prices, on account of rupee depreciation, was also a major factor to effect hikes.

Financial Results for the Fourth Quarter ended March31, 2014

JSW Steel reports highest ever quarterly Turnover and EBIDTA

Mumbai, India: JSW Steel Limited (“JSW Steel” or the “Company”) reported its results for the Fourth Quarter ended March31, 2014(“4QFY14” or the “Quarter”).These results are reported after giving effect to the Scheme of Amalgamation and Arrangement (“the Scheme”) between the Company and JSW ISPAT Steel Limited and others, which became effective June 1, 2013 with appointed date of July 1, 2012. The figures for the corresponding period are not strictly comparable with that of the current quarter as the effect of implementation of the Scheme is included in the current quarter figures.

During the quarter, the Company achieved crude steel production (3.15milliontonnes, 49% growth YoY), the highest ever consolidated Gross Turnover of `15,242 crores, consolidated Exports of 0.87milliontonnesand the highest ever consolidated EBIDTA of `2,529 crores. Despitea challenging operating environment marked by muted domestic demand growth, the Company achieved 101% of its production and 103% of sales volume guidance for FY14.

Key highlights of the quarter:

Standalone Performance:

Crude Steel production: 3.15million tonnes, up by 49% YoY

Saleable Steel sales: 3.10 million tonnes, up by 28% YoY

Highest ever Gross Turnover: Rs. 1333.000 millions up by 32%

Highest ever Operating EBITDA: Rs. 249.600 millions up by 47%

Net debt to equity 1.10xand Net debt to EBIDTA 3.03x

Standalone Financial Performance:

JSW Steel recorded its highest ever quarterly Gross Turnover of Rs. 1333.000 crores for the quarter, postinga growth of 32% on YoY basis. The Company reported an Operating EBITDA of Rs. 249.600 millions and a Net profit after Tax of Rs. 80.200 millions for the quarter. The operating EBIDTA margin improved to 20 % vis-a-vis 18.3% marked by several productivity and cost improvement measures initiated by the company.

Gross Turnover and Net Sales for the financial year ended March 31, 2014stood at Rs. 4852.700 millions and Rs. 4452.900 millions respectively, registering a growth of 25% and 26% on YoY basis. The Operating EBITDA for the financial year was Rs. 878.300 millions, up by 39%on YoY basis. The company posted a Net profit of`1,335crores for the financial year.

The net gearing as on March31, 2014stood at 1.10x (as against 1.12x as on December 31, 2013) and Net debt to EBIDTA stood at 3.03x (as against 3.23x as on December 31, 2013).

Subsidiaries performance:

JSW Steel Coated Products:

During the quarter, JSW Steel Coated Products registered a production of Galvanised / Galvalu me products of 0.430 million tonnes and sales of 0.440 million tonnes. The Gross Turnover and Net Sales for the quarter stood at Rs. 273.500 millions and Rs. 258.900 millions, respectively. It recorded an Operating EBITDA of Rs. 9.400 millions for the quarter.

A new 6-hi Cold Rolling Mill of 0.22 MTPA capacity at Kalmeshwar was commissioned during 4QFY14.

Outlook:

World economy is projected to grow at 3.6% in CY 2014 up from 3% in CY 2013 majorly influenced by expansion in output to be led by Advanced Markets with a continued recovery in Europe from 0.2% to 1.6% and US from 1.9% to 2.8% in CY 2013 and CY 2014, respectively. Japan is expected to continue monetary easing to improve inflation and Industrial growth. Emerging Markets are projected to exhibit a moderate growth at 4.9% in CY 2014 vs. 4.7% in CY 2013. China’s increasing focus on “Quality” engineered growth is expected to moderate its investment-stimulated growth from 7.7% in CY 2013 to 7-7.5%. However, downside risks to growth trajectory arise from ongoing tapering of quantitative easing in the US posing a threat of interest rate hike and reversal of investment flow from Emerging Markets, diverging challenges of inflation between Advanced Markets and Emerging Markets along with rising corporate leverage and elevated debts in the Advanced Markets.

For India, FY 2014 has proven to be one of the toughest times especially with high inflation, elevated policy rates, depreciating Rupee with high volatility, rising NPAs, declining manufacturing, stagnant investments coupled with a near stall to policy-initiatives. All these have pushed the country into an economic slowdown for the second-year in succession with adverse downside risk to economic growth projected at 4.9% as against 4.5% in FY 2013. However, prudent and timely measures by the RBI and the Government successfully stabilised and reversed the decline in Rupee to some extent, replenished Foreign Exchange Reserves, significanlty improved Current Account Deficit and contained Fiscal Deficit.

A stable and new Government in the centre will have a sizeable task to over-ride the structural impediments, garner business confidence and restructure fiscal space to support investment for securing and sustaining economic growth recovery. Increasing risk to agriculture growth, due to drought from perceived threat of El Nino, remains an anonymous challenge. Moreover, administering a moderate economic growth projected between 5-6% during FY15 and simultaneously ensuring the momentum of disinflation remains the major challenge. However, global commodity prices, as estimated to remain moderate, could support the recovery process of Indian economy.

JSW Steel Limited., belonging to the 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, ports, and cement. JSW Steel Limited is engaged in manufacture of flat and long products viz. H R Coils, C R Coils, Galvanised products, Galvalume products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to about US$11 billion2 in less than two decades. JSW Steel Limited is one of the largest producers and exporters of coated flat products in the country with presence in over 100 countries across five continents.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Information Gathered by :	PRT

Analysis Done by :	SUB

Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--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	YES
--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		69

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

5.04

8.52

7.05

11.89

7.15

8.68

0.13

0.16

0.83

0.62

0.92

0.70

Unit