History of Usha Ispat Ltd.

YEAR EVENTS 1988 - The Comp. was originally incorporated as a Private Limited Comp. under the name & style of 'Rai Coated Steels Private Limited' on May 17, & became a deemed Public limited company with effect from June 6, u/s 43A of Act.

- The Comp. has been promoted by Usha [Indias] limited [UILs], the flagship Comp. of Group Usha.

1989 - The name of Comp. was changed to Usha Ispat Ltd & a Fresh Certificate of Incorporation obtained from the Registrar of Companies, Delhi and Haryana on March 13.

- The Comp. has setup a Pig Iron plant at Redi, Distt. Sindhudurg in the State of Maharashtra. The plant, at present, has three blast furnaces of 157 Cu. Mtr each having a capacity of 3.00 Lac tonnes p.a. of Pig Iron.

- The Comp. has established a new productivity standard for blast furnaces in India.

1993 - The Comp. has made many innovations in production techniques which have resulted in reduced cost of production.

- The Comp. has stabilised its production & is now looking at expanding its capacity to make full use of economies of scale. It also plans to reduce the overall cost of production by using the latest technologies of Oxygen Enrichment, Coal Injection and sing sinter material.

- During the year, the Comp. issued to the Public Equity worth Rs.10.72 crores. The Public Issue was oversubscribed by 2.16 times.

1994 - Its achievement of productivity level of 1.86 tonnes of hot metal per cubic meter per day during the year is the highest achieved in the country.

- The Comp. is also working over the details for settingup the 4th Blast Furnace of 250 cubic meter capacity to increase total production to 600,000 TPA by end of 1995.

- Usha Ispat made a record production of 194000 tonnes, emerging as India largest merchant Pig Iron producer.

1995 - The Comp. had capacity of 2,11,000 MT of hot metal with two blast furnaces till the end of last financial year ended 30th April. The Capacity is presently increased to 3,16,000 MT of hot metal after addition of third blast furnace during the year.

- The Comp. entered into agreements with China Metallurgical Import & Export Corporation [CMIECs] for design of two additional blast furnaces & for design of two basic oxygen furnaces.

- The Comp. has proposed to install the required equipments for treating the effluents & controlling the pollutants for the proposed expansion programme.

- Group Usha Electronics Division is the largest semi-conductor producer in India with strategic alliance with Samsung Electronic Corporation, South Korea. Group Usha is making rapid expansion plans to emerge as an Asian Tiger in the global scenario.

- During the year the Comp. further issued 20,00,000 equity shares of Rs. 10/- each at a premium of Rs. 20/- per share to its holding company. Besides this, 3,10,00,000 equity shares of Rs. 10/- each were allotted to it on Acc. of conversion of Zero percent Fully Convertible Debentures.

- To finance expansion programme for setting up third Blast furnace, the Comp. made Rights Offer of 5083000 17% secured Non-convertible Redeemable Debentures of Rs. 100/- each for cash at par to the shareholders of Comp. in the ratict of one NCD for every ten equity shares.

- During the year the Comp. issued 20,00,000 16.5 % Secured Redeemable Non-convertible Debentures of Rs. 100/- each, Rs. 10/- paid up to its holding Comp. Usha [Indias] Limited on private placement basis. However, the said debentures were redeemed on 21-4-1995.

- The Comp. is considering issuing of 1,67,66,000 Non-convertible Debentures of Rs. 100 each with detachable warrants & GDRs amounting to US $ 40 million in near future to finance its fourth & fifth blast furnace.

1996 - It will be one of lowest cost producers of steel in the world.

- Usha Ispat has established a new productivity standard for blast furnace in India.

- The Company performance is the best in the Pig Iron Industry.

- During the year, the Comp. further issued 1,25,74,500 Equity Shares of Rs. 10/- each for cash of premium of Rs. 60/- per share to the existing shareholders of Comp. which have been allotted on 1.5.1996.

- The Comp. has allotted 2,00,000-20.5% Secured Redeemable Non-convertible Debentures of Rs. 100/- each on private placement. 1997 - India per capita steel consumption is one of lowest in the world. Usha Ispat has established a new productivity standard for blast furnace in India.

- In the year under report the Comp. has acquired ISO-9002 accredition.

- It is also proposed to place NCDs/Term Loans with the domestic Banks & replace the GDR issue with the domestic issue.

- The Comp. also allotted 31,62,558 Equity Shares of Rs.10/- each for cash at a premium of Rs.25/- per share to the warrantholders who exercised the option for conversion of their warrants into Equity Shares during the year.

- During the year the Comp. has expanded 10435 MT of Pig Iron to Italy.

- UIL is set to commission its H R steel coils projects at Satarda in Sindhudurg [Maharashtras], with an installed capacity of 6,00,000 tonnes per annum.

1998 - Usha Ispat, a pig iron manufacturer, has suffered considerably on Acc. of slowdown in demand from the automobile sector, soft domestic prices for pig iron & soaring input costs.

- On the other hand, the Comp. had also issued 50,83,000 warrants along with its rights issue of 50,83,000 - 17 per cent secured redeemable non-convertible debentures of Rs 100 each in October 1994 entitling the existing warrant holders to seek allotment of four equity shares for every warrant held at a price of Rs 35 per share. The option had to be exercised by September 30, 1998.

1999 - The Comp. is setting up a six lakh tonne per annum-capacity long products plant & a two lakh tonne per annum-capacity pig iron plant at Redi in Maharashtra.

- Usha Ferro Metals Holdings Ltd, a subsidiary of holding Comp. of Usha Ispat Ltd has further acquired 3,05,51,100 equity shares of company, which represent 21.94 per cent of the issued share capital of company.

2000 - The board of directors has approved, subject to necessary approvals, the employees stock option scheme for company.