CONTENTS Proxy Form 65

Cash Flow Statement for the period ended 31st March, 2008ABCCash Flow from operating activitiesYear Ended31st March, 2008In Rs.14th June 2006 to31st March, 2007Loss before Tax (5,656,354) (292,270)Operating Cash Loss before working capital changes (5,656,354) (292,270)Increase in Current Liabilities 5,656,354 292,270Net Cash Flow from Operating Activities - -Cash Flow from Investing ActivitiesPurchase of Fixed Assets (55,210,358) (72,449,897)Expenditure during construction period (including Capital Advance) (431,131,717) (85,089,159)Direct Taxes Paid (5,501,004) (215,353)Net Cash Flow from Investing Activities (491,843,079) (157,754,409)Cash Flow from Financing ActivitiesProceeds from Issue of Shares 847,476,210 500,000Proceeds Share Application Money 1,009,750,007 203,410,000Net Cash Flow from Financing Activities 1,857,226,217 203,910,000Net increase in Cash and Cash Equivalents (A+B+C) 1,365,383,138 46,155,591Cash and Cash Equivalents at the begining of the year 46,155,591 -Cash and Cash Equivalents at the closing of the year 1,411,538,729 46,155,591In Rs.Components of cash and cash equivalents As at31st March 2008As at31st March 2007Cash on Hand 4,366 115,337Balances with scheduled banks:On current accounts 467,031,463 1,740,254On deposit accounts 944,502,900 44,300,000Note:1,411,538,729 46,155,5911. The above cash flow statement has been prepared under the ‘Indirect Method’ as set out in the Accouting Standard-3 on Cash FlowStatements, issued by the Institute of Chartered Accountants of India.2. Previous period’s figures have been regrouped / reclassified wherever necessary.As per our report of even dateS.R. Batliboi & Co.Chartered AccountantsFor and on behalf of the Board of DirectorsEssar Steel Orissa Limitedper Hemal Shah V.G. Raghavan Manish KediaPartner Director DirectorMembership No. 42650Place: MumbaiPlace: MumbaiDate: August 27, 2008 Date : August 27, 200857