CONTENTS Proxy Form 65

Essar Steel Trading FZECredit riskThe Establishment’s 5 largest customers account for 70% ofoutstanding accounts receivable at 31 March 2008 (2007: 99%).With respect to credit risk arising from the other financial assetsof the Establishment, including cash and cash equivalents, theEstablishment’s exposure to credit risk arises from default of thecounterparty, with a maximum exposure equal to the carryingamount of these instruments.Currency riskThe Establishment is not exposed to any significant currencyrisk.The table below indicates the Establishment’s foreign currencyexposure at 31 March, as a result of its monetary assets andliabilities. The analysis calculates the effect of a reasonably possiblemovement of the USD currency rate against the Euro, with all othervariables held constant, on the income statement (due to the fairvalue of currency sensitive monetary assets and liabilities).Increase/decreaseEffect onin Euro rateprofitto the USD before tax2008 +5% 446,257- 5% (446,257)2007 +5% Nil- 5% NilCapital managementThe primary objective of the Establishment’s capital management isto ensure that it maintains healthy capital ratios in order to supportits business and maximise shareholders value.The Establishment manages its capital structure and makesadjustments to it in light of changes in business conditions. Tomaintain or adjust the capital structure, the Establishment mayadjust the dividend payment to the shareholder, return capital tothe shareholder or issue new shares. No changes were made inthe objectives, policies or processes during the year/period ended31 March 2008 and 31 March 2007. Capital comprises sharecapital, proposed increase in share capital, and retained earnings/accumulated losses and is measured at USD 3,509,988 as at 31March 2008 (2007: USD 658,791).13 FAIR VALUES OF FINANCIAL INSTRUMENTSFinancial instruments comprise financial assets and financialliabilities.Financial assets consist of cash and bank balances and receivables.Financial liabilities consist of the term loans and payables.The fair values of financial instruments are not materially differentfrom their carrying values.14 COMPARATIVE INFORMATIONCertain reclassifications were made to the comparative informationto conform to the presentation made in the current year. This has notresulted in any change in reported profit for the previous year.64