ISLA JINDAL STAINLESS "November 17,2015, BSE Limited ational Stock Exshangeof nia Limited PY Towers, Daal toe, Exchange Plz, Bandm- Kora Complex, ‘Mobi 400 008 Banda (E), Musa 400051 ‘Suh: Sammnaty on Composite Scheme of Arrangement Dear Sir/Madam, Please find elosed a bef nate onthe Composite Scheme of Arangerent (the “Scheme"”) ‘and the simmary ofthe e-asted financial statements of Jindal Stainless Limited existing fd company) ad Find Stainkss Hsu) Limited (proposed o be listed on stock exchanges tinder Rate 19(2Xb) of Sees Contract (Relation) Rules, 1957) “This communication i foreae of understanding he Scheme fo the avestorsandits impact on ‘he finial statements of Jindal Staines Limited (before giving fet to Section Il &-1V of the Scheme) and Jindal Sainles (His) Limited (fer giving effet to Seotion I&II ofthe Scheme). For any farther cafes, iavetos are advised refer tote Selene o fo cons theirstock Iker or investment constant ‘Thanking you, ‘Yours sincerely, For inal Snilss Lie ie « Company Seeretary Enel: aa a onaFHighights of the Composite Scheme of Arrangement “The Composite Scheme of Arrangement (the “Schere”) between JndlStanlss Limited (SU) JndlStanlss (sar Ue ("ISHL', Jindal United Stel Limite (US"] and Jindal Coke Limited ('ICL") and thee respective shareholders and reitorshas been approved by the Hr’be High Courtof Punjab and Haryana at Candige ("High Coun”) vide thee oréer dated September 2, 2015 (as modifieé on October 32, 20:5) The certfed true Copy ofthe order ofthe High Court war flag with the Register of Companies, CT of Delhi and Haryana on November O, 2035. The Scheme comprises of four Sections 2s under Seetion | Demeraer/Slume Consideration i Sa Record Date sale Teclon | Dererger of he Ferro | The boards of racors of BHLand IS, especlvaly have delermined |The efiecive date of | November loys svsion ang the | the share antiverent ratio 35: Section | ofthe Severe | 21,2018, Mining Dison | November 01, 2015 [rDemerged For every £ (One) equity share Raving face value of Rs. 2 (Rupees | Section lof the Scheme Undertakings") of JSL| Two] each hed in SL az on the Record Date, the equly sharehlders have become effective ‘and. vestng of the | of St shal be lsved 1 (One) equty share having face value of@s.2| fom the Appointed same in SH (Rupees wo) each, credited a8 fly peidup,nsSHL Date 1 ie Close of business hours before midnight of March 31, 200435 perthe terms of the Scheme. Teaionil | Wansiar_of business | Lump sum consideration of Rs 7808,79 51800 founded off Rupees |The effective date of | November Undertaking relating | Two Thoustnd Eight Hundred Nine Crore Seventy Nine Lakh Fifty One | Section I ofthe Scheme | 22, 2015| te the Hisar Unit! of | Thousand Eght Hundred and Eighty. tobe discharged asunder: | is November 02, 2015, Section ff the Scheme as (Gusiness Undertaking 2") and |(e) An amount of Rs. 2600,00,00,000 (Rupees Two Thousand Si| have become effective vesting ofthe same in| Hundred Crore shall be pain cash to Stand from the Appotrted ISH. by way of sump Date tLe, Coes of sale (2) Thebalance amount of As. 208,795,880 (Rupees Two Hundred | business hours before Nine Crore Seventy Nine Lakh Fifty One Thousand Eight | midnight of Sst March, | Hundred and Eighty) shal be set off agalnst an equilent | 2014s per the terms of amount out of Re. 575.9818 450 (Rupees Five Hundred Severty | the Scheme, g Five Crore Ninety Eight Lakh Eighteen Thousand Four Hundred s/ mB e‘Seton Demerger /Skime ‘ale ‘oniaeration| sat Record bate ‘and Fy) being the amount due and payable by SL to SAL as Feceivables dus to JSHL ‘ror ISL as of Appointed ate 1 252 Fesultof the implementation of Secon ofthe Scheme, ‘an tmeunt of Rs $75,988,450 (Rupees Five Hundred and Seventy ve Crores Ninety Eight Laks Eighteen Thousand Four Hundred and Fy) willbe cue and payable by ISL to JSHL as recelvables due as 2 result of the implementation of Section | of the Scheme. The same Shall stan sischrged by JS. tothe extent of Rs. 203,79 51,580| (Rupees Two Hundred Nise Crore Seventy Nine Lakh Fifty One Shousand fight Hundred and Sight) pusuant to clause (b) 26 forse, andthe balance oustanding amount of RS 365,18,65,570| [Rupees Three Hundred ana Shy Si Crore Eighteen Lakh Sicy Si ‘Thousand Fve Hundred and Seventy) shall sind dlscheged by SL by way f issue and alozment of equity shares having face vale of | FS 2 (Rupees two) each of JSL to JS, on the record cate jointly ‘cides bythe boarde of directors of Sand SHL Section Transfer of ‘business undertaking related to HSM Plant (Business Undenaking 2") and verting ofthe same in USL By way of slump le ‘arn sum eonsieraion offs, 2012 6735 00 rounded oF) [Rupees Two Thousand Four Hundred and Twelve Crore Soty Seven Lath ‘Thiry Three Thowsané One Hundred and Ten) to be discharged as ner: (8) An amount of Rs. 2350,0000,00 (Rupees Two Thousand One ‘Hundred nd Fy Cove) shall be pai in cash tot; and (6) Just shal, without ary furtner at or dee, sue and alo, to 151 37,50,00,000 (Seventeen Crore Fity Lakh) nor-cumulative Compulsory converte preference shares having face valve of | fe 40 (Rupees Ten) each having a coupon cate of 0.03% (zero point zara one percent) er anaum and having such others terms as may be agreed between the boards of dretos of SL apg JUS, respectively 2nd set out inthe terms of sue of such Sealers of the | WA Scheme wil become | ‘effective upon receipt of Spproval from Orssa Industrial nfastractare Development Corporatio,Seaton ‘Dererger lamp ‘ale Consideration Record ose ‘omcumulatve compulsory conventble preference shares) ‘and o) 876,73 311 [Eght Crore Seventy Six ath Seventy Three ‘Thousand Three Hundred and Eleven) nor-cumulatve non- converible redeemable preference shares having face value of x 20 Rupees Ten) each and coupon rat of 10% (Ten percent) per annum and having such others terms as may be agreed between the boards of clrectors of JSL and JUSL, respectively, ‘and sot out the tems of tue of sueh non-cumultve nan= ‘convertible redeematie preference shares, by way of dscharge af the remainder of the lump-sum consideration payable by JUSL to ISL ar adjusment of the amount paid to St in cordance with (above. eaion “ranaer of ‘business undertaking _‘telatng tothe coke. Plant” (Business Undortaking 2°) ane vesting of the same In SCL by way of slump sale Tum sm consideration of fs. 4S2,6,70,730 (rounded oF (Rupees Four Hundred Ninety Two Crore Siy Four Lakh Seventy Thousand Seven Hundred and Try) tobe discharged as under (a) An amount of Rs. 375,00,00,000 (Rupees Three Hundred and Seventy Five Crore shal ae pain cash fe 1S. and () cL shat wthovt any further actor dee, sue and alt, 1051, 21500000 [Two Crore and. Sty Laks) nomcumulatie ‘ompuleoly converte preference shares having face vale of Rs. 10 (Rupees Ten) each having a coupon rate of 0.02% (ero point zero one percent per annum and taving such others terms as may be agreed between the boards of directors of SL and JL, respectively, and set out inthe terms of sue of such oncumulative eampulsory convertible preference shares; 3rd (i) 9,1647,073 (Nine Croce Shean Lath Fory Seven ‘Tousand and Seventy Tree) noncumuative non-convertble redeemable preference shares having face value of AS. 10 {Rupees Ten} each and coupon rate of 20% (Ten percent) and having uch ers terms a may be agrees between the boarts Sealers W of he sevens wil become effective upon recelpt of ‘approval fom Ons Indusval Infastrucure Development Corporation. WESection | Demerger/siamp Consideration Sate Record Dae of dirctors OF SL and IL, espectvey, and set out inthe Ts of isue of such non-cumulatve nor-convertbe receernable preference shares, by way of eschage of the reminder ofthe lump-sum conseraton payabe by IC 10 JS after adlusiment ofthe amount paid to Stin acrordonce with (above * stsor Unit” means (el the manufectringfocites ofS located a OP. Jind! Mar, Hisar 125 005, Horyana, india, including, without ftation, te stainless see! manufacturing face, the speciolsteeflity and he coin blank fect ofl ond the operations therec; ond the investments (fiSLin the domestic subsidies iste in Port 8 of Schedule 2 hereto and ner corprate loans and advances made by SL the compenies referred {fo Part bof Schedule 2 hereto. Al references to Scheaies mentioned heren refer tothe respective Schedules ofthe Scheme. Pasta plone” eons the he trp mil late fishing fit, ball annealing facity and other eed folities oft located et Kalinga Noger industrial Complex, Duburi 755026, strict nur, Osh, Ici, ond the operotions therect. Coe bint” means the coke oven plant and ether ali feels ofS. loccted at Kalinga Nogor Industrial Complex, Dubur 755 025, District loeur, ‘ets, inc, an the opertions thereat. Ceptalized terms not defined herein shall have the same metring as aired to them in the Composite Scheme of Arrangement. For complete detels of the Scheme, shareholders are advised to refer to te Composte Scheme of Jvrengement avalable on the website of the Company st ).‘Summary ofthe financial statements of pre & ost implementation of Section 1& Section ofthe Scheme A. Statement of Assets and Unblties (standalone) (asin crores) Parties ‘Simanths ended] Fnancalyear ended March 34, 2105, September 30, 2015 (Unaudited) aoaeay (aoaied (PostSeneme) | (Pose Scheme) | (re Scheme) EqUIT€ WABTITIES Shareholders fonds share capital 4528 4528 e526 Share capitl suspense account aes9 366.9 = Reserves and Surlus (607.00) (23823) (383.87) | Hisreoiders tunes (a T (39457) 39471 (e263) Nonscurrent labios = Long term borrowings 8278.05 soro3 397023 2 Deferred taxis net) 2 s © other longterm iabities 3785 209.07 20807 |_+_ tong term provisions 455 521 107 Non-arrentiaites (6) ware east eas007 Curren abies Shoct erm borrowings 182335 23358 3.8626 “rade poyetles| is197t 131573 28410 Other erent abies 283720 13997 4157059 Short term provisions 434 230 670 Garren abies (C) 325.20 575098 7025 Equity & Unbiites (ABC) 33507.77 7.528.656 35568 ASSES Ner-errent sats / Fees Assets 148757 753152 927650 © Non-crrent investments ‘0273 103.33 15376 = tong erm loans and advances 18181 asi ass ~_ other non-current assets 023 020 90 Ton-curent Assets (0) a3 77667 osePanels ‘amore ended | Financial yeor ended March 31,2005 ‘September 30,2015 (Unaveited) ues aoaied) (Posesehere) | (ese Scheme) | (Preschome) arene sets current investments 030 031 031 * ventores| ayes amos7 301877 2 Trade recehables ‘oon ‘35678 428020 © Cashand cash equivalents Bae ante 4322 © Shor termigars and advances 297355 soizas 2556 2 other currant assets 2.08 233 42 Curren Asset ©) 55.43 57298 Sos assets (DE) 33507.77 3525.66) 35.558 8. Summary of tatamentaf profit and os[Standslone) (sn crores) Paria ‘Sicmonths ended] Financial year ended March 31, 2105, September 30, 2015 (Unaudited) aaa Taaated) ore scheme) | _(Post scheme) | (Pre Sehero) Tous neome from operations mas SDs TRA, Total expenses 3100.88 5,039.48, 32267.00, Profi from operations belore other income, finance cost and exceptional mus (a8.58) 535.47 ‘Ade: Ota Income ia Ea 7a Profi from operations belgre nance oat and eceptlonal Rens sat (35.75) 307.87, ess Finance Cost 9822 15.81 7368.06 (ese exceptional tems (25.48) E7319 2895, (Profits) fom Ordinary activites before tx 1358.58) 22.68 2620) Provion for tax = a5) (5) Net Prof es] from Ordinary artes aero eas) 223.08 T2073) era ordinary emt 5 5 ato ‘Net Profit os) forthe period BBS) 3.08 Tae)Summary ofthe financial statement of ISL pre & poet implementation of Section | & Seton I af the Scheme [A Statement of Asets and sites (Rs. in roves Parton | Sriontis ended] Financial year ended March 33,2305 ‘Sepeember 30, 2015, (Unauelted) Taased auaieay (Post scheme) | (Post Scheme) _| (re Scheme) quia UABIETIES Shareholders fonds Share capital / share capa suspense acount 4620 4626 095 = Reserves and Surplus 595.18 ssi {oct) Shareholders’ funds (A) 60.38 597.36 0.04 Non-urrent abies wT Lone term borrowings : ° F *Deferred taxable (net) : z : |= cher tong term bes E a = Long term provsons 536 537 _ ‘No-curent abies (5) 636 357 3 ‘cure ities Shoe tern borrowings 13324 85372 : + Tae poyabies rans. 131837 : = Other eurent biti 297323 2.99757 02 L__1_Shor tem sroisons 731 551 c ([Eirentiapiioes (2) 24020 Sais27 | a2 [Eeuty& Usbiies (A782) 580085 5.778201 006 I ASE kes vets 249632 2.61300 E ‘non-core nvesimente ‘as77 3677 4 tong term loans and advances 7336 73.08 (Other nan-current assets 1198 883 Ten-crrent assets (0) asa BaieParielans ‘Su monthe ended] Finacial year ended Marchi, 2105 September 30,2015 (Unavdited) Caused) Traded) (Pose scheme) | (Post Scheme) _|_(Pre Scheme) [Cinema Coreen investments z 5 3 © inventories szr708 123623, E 2 Trae recenabies 333.28 paves 4 Cosh end cash equivalents 02 2 006 Short term loans and advances 746.08 aan Z 2 other current assets 310 310 Career Assets () 39.73 26658 36, Assets (D+) 5547.55 577820 006 Summary of tatement of profit and ss (is. in crores) Pariclare ‘Sumanthe ended_| Finacial oor ended Warch 31, 2105 September 30,2015 (Unsualted) aad Taaaied (@oseserere) | (post Scheme) | (Presehere) “ata income Fem operons as Tae 2 Total expenses 37675 6.98047 oor, ‘rofit rom operations before other income, Snance cost end exceptional 259.07 ‘2087 ‘o0) items ‘se: ther come Be Fr 2 Profit fom operations before finance oa and exceptional Rams 3a. 5.58 ea Les: Finsnce Cost 255.55 aa7a6 “i Les: Seeptonal ems 276) 3597, - fit / (is) from Ordinary ates before tx 4.08 3232 a Prowsion fr tax 2 " Net Prof os) rom Ordinary aelivites aftr tx a0 az a arinary tems = Net roft/ (ss forte period ae maz