Approved in principle, the proposal for merger of the Indian Iron & Steel Company Ltd (IISCO) with the Company. The necessary formalities in this regard are being initiated. Also approved signing of Memorandum of Understanding with Kudremukh Iron Ore Company Ltd (KIOCL) for development of Taldih, Barsua & Iron Ore Mines of SAIL. The Board has also approved signing of Memorandum of Understanding with BHPB, Australia for joint venture in coal and iron ore areas. These MOUs are planned to be signed on September 28, 2004. Steel Authority Of India Ltd. has informed the Exchange that the BoD's of the company in its meeting held on September 28, 2004 has approved, in principle, the proposal for merger of the Indian Iron & Steel Company Limited (IISCO) with Steel Authority of India Limited (SAIL). The necessary formalities in this regard are being initiated. The Company has also informed that the Board has approved signing of Memorandum of Understanding with Kudremukh Iron Ore Company Limited (KIOCL) for development of Taldih, Barsua & Iron Ore Mines of SAIL. The Board has also approved signing of Memorandum of Understanding with M/s BHPB, Australia for joint venture in coal and iron ore areas. These MOUs are planned to be signed on September 28, 2004. (As per NSE bulletin dated on 30/09/2004)) The company has informed with regards to in-principle approval by the Board of Directors of the Company for mergerof Indian Iron & Steel Company Ltd (IISCO) with the Company, the Ministry of Steel has now conveyed the approval of Government of India for the proposed merger after taking approval of BIFR (IISCO being a BIFR Company and Rehabilitation package approved by BIFR is under implementation). Further action in this regard is being taken byboth, the Company and IISCO. (As per BSE Bulletin dated on 27/06/2005) The company has informed about the salient features & the resultant advantages of the Scheme of Amalgamation between the Company, its creditors, shareholders & the Indian Iron & Steel Company Ltd (IISCO), which are as follows: SALIENT FEATURES 1. Vide the Scheme, IISCO shall be amalgamated with the Company, as a going concern, together with all its properties, assets, rights, benefits and interest therein, subject to existing charges thereon in favour of banks and financial institutions or otherwise, unless so modified. Further, all debts, liabilities, duties and obligations, secured or unsecured are to be treated as the debts, liabilities, duties and obligations of the Company. 2. Since no shares are being issued pursuant to the Scheme, the capital structure of the Company both pre and post the amalgamation shall remain the same. 3. Upon the Scheme becoming effective, as per its terms, IISCO shall stand dissolved without being wound up. RESULTANT ADVANTAGES 1. IISCO has made losses over the years due to technological obsolescence, ageing of plant and equipment and lack of necessary capital investments. Owing to the erosion of its net worth, the Company was referred to the BIFR in June 1994 and was declared a sick industrial company on August 17, 1994. A rehabilitation package was approved by the BIFR on November 20, 2003, which is under implementation by SAIL and IISCO with the Industrial Development Bank of India acting as the operating agency appointed under the Sick Industrial Companies (Special Provisions) Act 1985. 2. IISCO, has iron ore mines at Chiria in Jharkhand, which is the second largest in the world with an estimated reserve of over 1,000 million tonnes of iron ore with an iron content of over 62%. Its strategic location will be an advantageous iron ore source for the Company steel plants. Further, IISCO has collieries at Chasnalla, Jitpur and Ramnagore. Due to upsurge in the steel market, the prices of coking coal and iron ore have increased manifold and the Company will in the long run, benefit by securing high quality coal and iron ore from the IISCO mines. IISCO's raw material sources shall be further suitably exploited for optimal utilisation, to bring about synergy with the Company. The Company's financial and managerial capabalities and availability of vast natural resources like mines, collieries and large infrastructural facilities shall be available to the undertaking of IISCO and there would be greater synergy for exploiting the resources to the optimal level. 3. The proposed amalgamation is in line with the global trends to achieve size, scale, integration and greater financial strength. The Company is in need of fresh financing and strategic participation for a capital expansion programme to maintain its position in the industry and meet strategic objectives. The Company's financial and managerial capabilities and availability of vast natural resources like mines, collieries and large infrastructural facilities shall be available to the merged undertaking and there would be greater synergy for exploiting the resources to the optimal level. The resultant amalgamation would result in the merged entity being financially more viable, and in it's achieving a position of greater financial strength and flexibility and is in the interests of maximizing shareholder and stakeholder value. 4. The Scheme would result in consolidation of the business of manufacture of steel and allied products in one entity and would be a step in the direction to enable the Company to become one of the market leaders and would be in the best interests of IISCO, Company and their respective stakeholders. (As per BSE Bulletin dated on 18/07/2005) The company has informed that pursuant to the order of Hon'ble Ministry of Company Affairs, a meeting of the equity shareholders of the Company will be held on November 08, 2005, for the purpose of considering, and if thought fit, approving, with or without modification(s), the arrangement embodied in the Scheme of Amalgamation between Indian Iron and Steel Company Ltd (IISCO) and the Company. (As per BSE Bulletin dated on 18/10/2005) Authority Of India Ltd. has informed the Exchange that by an Order made on October 06, 2005, the Hon'ble Ministry of Company Affairs, has directed that a meeting of the Equity Shareholders of Steel Authority of India Limited ("Applicant Company"), be convened, for the purposes of considering, and if thought fit, approving, with or without modification(s), the arrangement embodied in the Scheme of Amalgamation between Indian Iron and Steel Company Limited and Steel Authority of India Limited, being the Transferor Company and the Transferee Company respectively. (As per NSE Bulletin dated on 19/10/2005) The company has informed that the equity shareholders of the Company at the Court Convened meeting held on November 08, 2005, inter alia, have accorded to the Scheme of Amalgamation between the Indian Iron & Steel Company Ltd and the Company. (As per BSE Bulletin dated on 18/11/2005) Steel Authority Of India Ltd. has informed the Exchange that the Government of India, Ministry of Company Affairs vide its Order dated February 15, 2006 have sanctioned the Scheme of amalgamation of the Indian Iron & Steel Company Limited (IISCO) with SAIL. The appointed date of amalgamation is April 01, 2005. With the filing of the Order of Ministry of Company Affairs with the Registrar of Companies at Delhi and Kolkata on February 16, 2006, the scheme of amalgamation has become effective. As provided in the Scheme of Amalgamation, w.e.f. the appointed date and upon the Scheme becoming effective, the IISCO has been transferred to and vested in and/or be deemed to has been transferred to and vested in and managed by SAIL, as a going concern, without any further act or deed, together with all its properties, assets, rights, benefits and interest therein. Upon the scheme of amalgamation becoming effective on February 16, 2006, the IISCO stand dissolved without being wound up. (As per NSE Bulletin dated on 16/02/2006) The Company has informed that the Government of India, Ministry of Company Affairs vide its Order dated February 15, 2006 have sanctioned the Scheme of Amalgamation of the Indian Iron & Steel Company Ltd (IISCO) with the Company. The appointed date of amalgamation is April 01, 2005. With the filing of the Order of Ministry of Company Affairs with the Registrar of Companies at Delhi and Kolkata on February 16, 2006, the Scheme of Amalgamation has become effective. As provided in the Scheme of Amalgamation, with effect from the appointed date and upon the Scheme becoming effective, the IISCO has been transferred to and vested in and / or be deemed to has been transferred to and vested in and managed by the Company, as a going concern, without any further act or deed, together with all its properties, assets, rights, benefits and interest therein. Upon the scheme of amalgamation becoming effective on February 16, 2006, the IISCO stand dissolved without being wound up. (As per BSE Bulletin dated on 16/02/2006)