CONTENTS Proxy Form 65

4. (a) Estimated amount of contracts remaining to be executed on capital account and notprovidedAs at31st March, 2008As at31st March, 2007(Rs. Crores)(Rs. Crores)587.93 457.35(b) Custom duty on pending export obligation under EPCG scheme 141.89 337.075. Segment InformationPrimary Business SegmentThe Company is primarily engaged in a single business segment of manufacture and sale of steel, and accordingly, this is the only primaryreportable segment.Geographical SegmentsSecondary segmental reporting is based on the geographical location of customers. The geographical segments have been disclosed basedon revenues within India (sales to customers within India) and revenues outside India (sales to customers located outside India). Secondarysegment assets and liabilities are based on the location of such asset/liability.Information about Secondary Geographical SegmentsRs. in CroresSegment information Year Ended 31st March, 2008 Year Ended 31st March, 2007India Outside India Total India Outside India TotalRevenue (Income from operation) 8,769.01 3,141.65 11,910.66 6,012.38 2,988.08 9,000.46Carrying amount of segment assets 14,140.85 158.57 14,299.42 14,889.92 176.52 15,066.44Carrying amount of segment liabilities 6,943.42 2,724.67 9,668.09 8,003.53 2,594.96 10,598.49Additions to fixed assets 1,169.97 – 1,169.97 3,122.65 – 3,122.656. LeasesFinance leaseAircraft is obtained on finance lease. The lease term is for 5 years and renewable for further period after which the legal title is passed tothe lessee. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are nosubleases.Operating leaseResidential Houses for staff accommodation and offices are obtained on operating lease. Lease rent is payable as per the lease term. Thelease term is generally for 11 months and renewable for a further period at the option of the Company. There is no escalation clause in thelease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.(i) Assets taken on finance lease on or after 01.04.2001Year Ended31st March, 2008Rs. CroresFinance Operatinglease leaseYear Ended31st March, 2007Rs. CroresFinance Operatinglease leaseTotal minimum lease payments at the year end 7.18 – 9.54 –Less: amount representing finance charges 0.96 – 1.43 –Present value of minimum lease payments (Rate of interest:9.50% p.a.) 6.21 – 8.11 –Lease payments for the year 3.07 30.35 2.86 11.99Contingent rent recognised in Profit and Loss Account – – – –Minimum Lease Payments :Not later than one year [For finance lease: Present value Rs. 2.82Crores as on 31.03.2008] 3.08 5.37 2.86 –Later than one year but not later than five years [For finance lease:Present value Rs. 3.77 Crores as on 31.03.2008] 4.10 21.47 6.68 –Later than five years [For finance lease: Present value Rs. Nil as on31.03.2008] – 63.95 – –(ii) Future lease obligation for Assets taken on finance leases prior to01.04.2001 9.66 – 8.51 –7. Disclosure of related party transactions as required by Accounting Standard - 18 Related Party Disclosures:(a) Holding Company1 Essar Steel Holdings Limited, Mauritius2 Essar Global Limited, Cayman – Holding Company of Essar Steel Holdings Limited(b) Subsidiary1 Essar Steel (Jharkhand) Limited (ESJL)2 Essar Steel (Orissa) Limited (ESOL)3 Essar Steel Trading FZE, Dubai (Essar FZE)(c) Fellow Subsidiary1 Essar Steel (Chattisgarh) Limited (ESCL)2 Hazira Plate Limited (HPLT)3 Essar Telecom Infrastructure Private Limited25