(Rs in Crs) Mar 07 Mar 08 Mar 09 Year SOURCES OF FUNDS : Share Capital 86.29 86.4 86.

51 Reserves Total 393.28 531.18 732.29 Equity Share Warrants 0 0 0 Equity Application Money 0 0 0 Total Shareholders Funds 479.57 617.58 818.8 Minority Interest 4.47 4.75 4.57 Secured Loans 120.38 97.56 98.05 Unsecured Loans 39.52 1.6 131.94 Total Debt 159.9 99.16 229.99 Total Liabilities 643.94 721.49 1,053.36 APPLICATION OF FUNDS : Gross Block 609.89 685.32 799.18 Less : Accumulated Depreciation 299.35 238.07 264.41 Less:Impairment of Assets0 0 0 Net Block 371.82 420.91 499.83 Lease Adjustment 0 0 0 Capital Work in Progress 44.35 7.34 59.33 Investments 0 0 0 Current Assets, Loans &203.72 Advances 346.97 80.7 Inventories 257.11 302.48 375.47 Sundry Debtors 141.97 172.32 177.88 Cash and Bank 0.67 6 76.57 148.43 Loans and Advances 222.53 180.71 249.02 Total Current Assets 640.46 773.9 950.8 Less : Current Liabilities and Provisions Current Liabilities 361.52 457.97 461.48 Provisions 90.23 274.1 343.78 Total Current Liabilities 451.75 732.07 805.26 Net Current 188.71 Assets 41.83 145.54 Miscellaneous Expenses 13.95 not written off 19.82 8.64 Deferred Tax Assets 1.45 24.01 23.54 Deferred Tax25.9 Liability 27.28 30.49 Net Deferred Tax -24.45 -3.27 -6.95 Total Assets643.94 721.49 1,053.36 Contingent Liabilities 204.17 90.86 142.1 ToatlAssets 4074.17 Total Liabilities 4585.01 EFR -510.83 Mar 10 86.9 848.49 0 0 935.39 3.76 70.23 109.07 179.3 1,118.45 985.71 339.07 0 646.64 0 30.09 0 264.11 426.22 119.84 192.31 367.39 1,105.76 466.93 453.29 920.22 185.54 2.74 26.33 37 -10.67 1,118.45 129.22 Mar 11 174.07 1,217.04 0 0 1,391.11 4.08 70.31 980.69 1,051.00 2,446.19 1,933.75 435.05 0 1,498.70 0 43.01 0 427.44 708.53 355.47 272.42 516.11 1,852.53 714.07 743.5 1,457.57 394.96 101.02 21.28 40.22 -18.94 2,446.19 142.5 Mar 12 174.07 1448.28

1622.35

1250.69 2873.04 2301.16 517.71 1783.45 86.21 0.00 843.15 423.01 324.18 614.17 2204.51 849.74 884.77 1734.51 470.00

0.2250

0.224977

-22.54

Total EFR for JSW steel is approx. Rs 11155.79cr. In forecasting the next year sales, the share capital is kept constant. As the total sales expectation for the year 2012 is resulting it to be negative, therefore, a growth of 20% is considered here. The company should go for the equity route as further debt would increase the companys liability and would need more cash in order to serve that debts interest. JSW Steel reputation is high in the market and can draw cash at low cost (ke). One of the reason that company should go for the equity route because the company have 16474.64cr of debt and further debt would increase the cost of raising it. If the company continues with its present debt with interest rate of 14.30%. As the company is already having high debt and raising the further debt

Total EFR for JSW steel is approx. Rs 11155.79cr. In forecasting the next year sales, the share capital is kept constant. As the total sales expectation for the year 2012 is resulting it to be negative, therefore, a growth of 20% is considered here. The company should go for the equity route as further debt would increase the companys liability and would need more cash in order to serve that debts interest. JSW Steel reputation is high in the market and can draw cash at low cost (ke). One of the reason that company should go for the equity route because the company have 16474.64cr of debt and further debt would increase the cost of raising it. If the company continues with its present debt with interest rate of 14.30%. As the company is already having high debt and raising the further debt would cost more i.e. kd would be high because investor loses confidence in the company.