CONTENTS Proxy Form 65

(ii)Details of loans and advances given to companies under the same management within the meaning of section 370(1B)Rs. CroresSr. No. PartiesAs at31st March, 2008MaximumAmountoutstandingduring2007-2008As at31st March, 2007MaximumAmountoutstandingduring2006-20071 Hazira Plate Limited 4.41 14.08 11.34 14.082 Essar Steel (Chhattisgarh) Limited 1.91 1.91 0.96 0.963 Essar Oil Limited* — — 42.82 42.824 Essar Shipping Limited* — — 0.61 12.135 Essar Logistics Limited* — — 0.02 0.036 Essar Steel (Hazira) Limited 0.14 21.18 — —7 Essar Projects Limited 4.08 6.05 6.05 9.91* During the financial year 2007-08 the parties are not covered within the meaning of Section 370(1B)29. Margin and term deposits have been pledged with banks as a security for opening Letters of Credit Rs. 131.84 Crores (Previous yearRs. 182.37 Crores) and Buyers Credit Rs. 34.84 Crores (Previous year Rs. 114.58 Crores).30. Provisions Rs. CroresIndirect Tax Matter Other MattersBalance as at 31st March, 2007 19.73 –Additions during the year – 11.40Balance as at 31st March, 2008 19.73 11.40(i)Provision for Indirect Tax MatterEssar SEZ Hazira Limited applied for setting up a Special Economic Zone (SEZ) on 3rd December 2005 and the Zone was notified forsetting up in Hazira on 28th September 2006. Subsequently, Essar Steel Limited ( “the Company”) submitted a Letter of Approval (LOA)for setting up a SEZ Unit (“the Unit”) to manufacture Hot Briquetted Iron (HBI) and Directly Reduced Iron (DRI) to the DevelopmentCommissioner – Kandla on 3rd October 2006. While such application was pending, the said HBI/DRI facility commenced operationson 27th October 2006. The production was used for captive consumption and the said facility was treated as normal domestic tariffarea production, and was subjected to applicable Central Excise regime. The HBI/DRI Unit was approved on 11th January 2007subject to fulfilment of certain conditions. Such conditions were fulfilled on 21st March, 2007. The Unit commenced operating as SEZUnit from this date onwards. The Directorate General of Central Excise Intelligence (DGCEI), Ahmedabad Zonal Unit conductedinvestigations in the matter and has issued a show cause notice dated 7th April, 2008. The Company is in the process of replying tothe show cause notice. The notice states -(a) customs duties to the tune of Rs. 189.93 Crores is payable on clearances by the unit from 27th October 2006 to 11th April 2007(b) cenvat credit availed on capital goods, inputs and input services used in the unit is not available and requires to be reversed bythe Company.The Company had subsequent to 31st March, 2007, paid the applicable customs duty of Rs. 180.73 Crores on clearances upto 11thApril 2007, as if it was a SEZ Unit, though the matter was under discussion with the appropriate Authorities.However, during the year ended on 31st March, 2007 the management ,on its own volition as a matter of abundant caution madea provision of Rs. 19.73 Crores being non cenvatable portion of customs duty paid for the period after the grant of LOA i.e., 11thJanuary 2007 to 20th March 2007.The Company is of the view, based on legal advise, that entire amount paid as above, is refundable and/or cenvatable.35