Facor Steels

Facor Steels Ltd has informed that the Company has been discharged by the Board of
Industrial and Financial Reconstruction (BIFR) from the purview of Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA) as per Summary Record of Proceedings of
the Review Hearing held at BIFR on August 30, 2007.

Accordingly, the Company is no more a Sick Company and is having a positive net worth of Rs 21.56 crores as of March 31, 2007.

Further, with the said discharge from BIFR, the Facor Group of Companies are now moving ahead with the envisaged expansion plans involving investment of Rs 2500 Crores for setting up a Coal based 250 MW Independent Power Plant and 0.5 Million TPA Stainless Steel Plant.

As part of its forward integration the Company (i.e. Facor Steels Ltd) is also setting up a 2000 Tons hydraulic Forge Press for production of Forge Round Bars at its existing Steel Plant with a installed capacity of 12000 MTPA. The total cost of the project is estimated at Rs 25 Crores and the project is expected to be commissioned by April 2008.

Presently the Company has a facility of making 60000 MTPA of quality Alloy Steel & Stainless Steel with two rolling mills having capacity to roll 72000 MTPA and Bright Bar facility having capacity of 10000 MTPA. The turnover and net profit of the Company for the year 2006-07 was Rs 419.77 crores and Rs 5.39 crores respectively. With the commencement of commercial production of Forged Round Bars it is expected that the turnover of the Company would exceed Rs 500 crores and profitability would also improve substantially.