CONTENTS Proxy Form 65

Essar Steel Trading FZEForeign currenciesTransactions in foreign currencies are accounted for at the exchangerates prevailing at the date of the transaction. Monetary assets andliabilities denominated in foreign currencies are retranslated at therate of exchange ruling at the balance sheet date. All differencesare taken to the income statement.3 OTHER INCOME1 April 14 June2007 to 2006 to31March 31 March2008 2007USDUSDCommission income 800,000 450,000Interest income 1,265 4844 FINANCE COSTS801,265 450,2841 April 14 June2007 to 2006 to31March 31 March2008 2007USDUSDArrangement fees 430,000 250,000Interest on term loans 2,946,394 342,1555 PROFIT (LOSS) FOR THE YEAR/PERIOD3,376,394 592,155The profit (loss) for the year / period is stated after charging1 April 14 June2007 to 2006 to31March 31 March2008 2007USDUSDStaff costs 55,834 -6 ACCOUNTS RECEIVABLE AND PREPAYMENTS2008 2007USDUSDTrade receivables 50,267,481 -Prepaid expenses 93,375 552Other receivables - 464,57850,360,856 465,130During the year the Establishment has not impaired tradereceivables.As at 31 March, the ageing of unimpaired trade receivables is asfollows:Neitherpast duenorTotal impairedUSDUSD2008 50,266,947 50,266,9472007 - -Unimpaired receivables are expected, on the basis of past experience, tobe fully recoverable. It is not the practice of the Establishment to obtaincollateral over receivables and they are therefore unsecured.7 CASH AND CASH EQUIVALENTS2008 2007USDUSDBank balances and cash 3,124,402 20,405Included in bank balances and cash are bank deposits amounting toUSD Nil (2007: USD 10,284) with Commercial banks in the United ArabEmirates. These are denominated in UAE Dirhams, short term in nature,with effective interest rates of Nil% (2007: 3.6% to 3.85% p.a.).8 SHARE CAPITAL2008 2007USDUSDAuthorised, issued and fully paid1 share of AED 3,000,000 816,727 816,727During the year the directors’ proposed to increased theEstablishment’s share capital from USD 816,727 to USD 1,816,727.The legal procedures to register the increase are in progress.9 TERM LOANS2008 2007USDUSDTotal owing 155,000,000 25,000,000Current portion transferred tocurrent liabilities (140,000,000) (5,000,000)15,000,000 20,000,000The Establishment has obtained term loans including advancepayment facilities of USD 155 million (2007: USD 25 million) fromvarious commercial bank to finance trading requirements whichincludes any advance payments made for the purchase of steelproducts.These comprise:- a medium term loan of USD 25 million was obtained during the 2007financial year from the Bank of India, London branch. The mediumterm loan is repayable in six successive semi-annual installmentscommencing six months after the date of the disbursement ofthe loan. Forty percent of the loan is repayable in the first fourinstallments and sixty percent of the loan is repayable in the lasttwo installments. Interest is charged at 6 months LIBOR plus 1.75% (2007: 6 months LIBOR plus 1.75%).- an advance payment facility of USD 45 million was obtained duringthe 2008 financial year from the Bank of Tokyo - Mitsubishi UFJ inorder to finance trading requirements. The facility is repayable inone bullet payment on maturity date which is 12 Months from thedate of the first draw down. Interest is charged at 6 months LIBORplus 0.72% (2007: Nil).- a trade advance facility of USD 25 million was obtained duringthe 2008 financial year from the Banco Bilbao Vizazya ArgentariaS.A. (BBVA) in order to finance trading requirements. The facilityis repayable in two installments. The first installment is payable12 months from the date of the first draw down and the secondinstallment is payable 6 months from the date of the second drawdown. Interest is charged at 6 months LIBOR plus 0.75% (2007:Nil).- a facility of USD 50 million was obtained during the 2008 financialyear from the Calyon Credit Agricole CIB, in order to finance trading62