MIRA
INFORM REPORT
|
Report Date : |
05.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
LARSEN AND TOUBRO LIMITED |
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Registered Office : |
L and T House,
Ballard Estate, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
07.02.1946 |
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Com. Reg. No.: |
11-004768 |
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Capital
Investment / Paid-up Capital : |
Rs.1204.400 millions |
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CIN No.: [Company
Identification No.] |
L99999MH1946PLC004768 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKL00699G |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturers and Sellers of Earthmoving Machinery including
Bulldozers, Dumpers, Scrappers, Loaders, Shovels, Vibratory Compactors and
Drag Lines. |
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No. of Employees
: |
22922 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (71) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 860000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established diversified and a highly respectable company. Financial position
of the company is good. Fundamentals are strong and healthy. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
L and T House,
Ballard Estate, |
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Tel. No.: |
91-22-22618181 /
22618182 / 22685656 / 67525656 |
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Fax No.: |
91-22-22620223 /
22617480 / 22685893 / 67525858 / 67525893/ 55525858 |
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E-Mail : |
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Website : |
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Corporate Office
1: |
C Block, Gate No. 1, L and T Powai Campus, |
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Tel. No.: |
91-22-67052589 / 67052930 |
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Fax No.: |
91-22-67051832 |
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Corporate Office
2: |
Kiadb Industrial Area, Hebbal Hootagalli, |
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Tel No.: |
91-821-2405331 |
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Corporate Office
3: |
Off |
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Headquarter/ Holck-Larsen and Engineering
Design and Research Centre- Chennai : |
Mount |
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Tel No.: |
91-44-2232 6348 / 22526000 / 22528000 / 22528080 |
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Fax No.: |
91-44-2234 2317/ 22493317 / 22526065 / 22493888 |
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E mail: |
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EDRC Centre : |
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Tel No.: |
91-33-22882601 |
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Fax No.: |
91-33-22881225 |
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E mail: |
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EDRC – Kolkata: |
DLF IT Park, Premises # 08, Block – AF, 2nd Floor, Tower-C, Newton,
Rajarhat, Kolkata-700156, West Bengal, India |
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Tel No.: |
91-33-44008700 |
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Fax No.: |
91-33-44005385 |
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Division : |
ECC Division, Mial Project Office – North Block II, 6th Floor, Gate
No. 1, Powai – 400072, |
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Factory 1 : |
TLT Works, Plot No. 158-B, Sector III, Pithampur, Dhar District, Madhya
Pradesh 454 774, |
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Tel. No.: |
91-7292-256317/ 256431 |
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Fax No.: |
91-7292-256316 |
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E-Mail : |
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Factory 2 : |
TLT Works, |
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Tel. No.: |
91-413-2672500 |
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Fax No.: |
91-413-2677727 |
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E-Mail : |
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Factory 3 : |
167, |
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Tel. No.: |
91-4112-27248383, 93 and 94 |
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Fax No.: |
91-4112-27248383 and 290 |
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E-Mail : |
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Factory : |
Also located at
: ·
·
Kandla ·
Vadodara ·
Ankleshwar ·
Hazira ·
Jafrabad ·
Kovayya ·
Nashik ·
Pune ·
Ahmednagar ·
Ratnagiri ·
Tadipatri ·
·
·
Awarpur ·
Jharsuguda ·
Kansbahal ·
Ranoli ( ·
·
Haldia |
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Regional Offices
: |
·
NCL Bandra Premises, Plot No. C/6, Bandra – Kurla
Complex, P. O. Box No. 8119, Bandra (East), Mumbai - 400051, Maharashtra, India
·
2, Saki Vihar Road, P. O. Box No. 8901, Mumbai –
400072, Maharashtra, India ·
1/FL, Laxminarayan Complex, 10/1, Palace Road, P.
O. Box 122, Bangalore – 560002, Karnataka, India Also located at:
·
·
·
Kolkata ·
Vadodara ·
Ahmedabad ·
Arakkonam Pune ·
·
Chennai ·
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Overseas Offices : |
Located at: ·
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Sultanate of ·
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·
·
·
·
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Sharjah ·
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·
·
·
·
·
·
·
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Area Offices : |
Located at: ·
Ahmedabad ·
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Chennai ·
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Kolkata ·
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Pune ·
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Branches : |
Located at : ·
Jaipur ·
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Guwahati ·
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Vadodara ·
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Guwahati ·
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Railway Business
Unit: |
12/4, |
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Tel No.: |
91-129-4291000 / 4291651 / 4291766 |
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Fax No.: |
91-129-4291650 / 4291303 |
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Email: |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. A. M. Naik |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Y. M. Deosthalee |
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Designation : |
Whole-time Director and Chief Financial Officer |
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Name : |
Mr. K. Venkataramanan |
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Designation : |
Whole-time Director and President (Engineering and Construction
Projects) |
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Name : |
Mr. K. V. Rangaswami |
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Designation : |
Whole-time Director and President (Construction) |
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Name : |
Mr. V. K. Magapu |
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Designation : |
Whole-time Director and Senior Executive Vice President (IT and
Technology Services) |
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Name : |
Mr. M. V. Kotwal |
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Designation : |
Whole-time Director and Senior Executive Vice President (Heavy
Engineering) |
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Name : |
Mr. Ravil Uppal |
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Designation : |
Whole- Time Director and President (Power) |
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Name : |
Mr.
S. Rajgopal |
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Designation : |
Non Executive Director |
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Name : |
Mr.
S. N. Talwar |
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Designation : |
Non Executive Director |
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Name : |
Mr.
M. M. Chitale |
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Designation : |
Non Executive Director |
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Name : |
Mr.
Thomas Mathew T. |
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Designation : |
Nominee (LIC) |
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Name : |
Mr.
N. Mohan Raj |
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Designation : |
Nominee (LIC) |
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Name : |
Mr.
Subhodh Bhargava |
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Designation : |
Non Executive Director |
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Name : |
Mrs.
Bhagyam Ramani |
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Designation : |
Nominee (GIC) |
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Name : |
Mr.
A. K. Jain |
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Designation : |
Nominee (SUUTI) |
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Name : |
Mr. J. S. Bindra |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
|
Name : |
Mr.
N. Hariharan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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(B) Public Shareholding |
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73,667,221 |
12.58 |
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118,879,483 |
20.30 |
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30,854,540 |
5.27 |
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100,272,936 |
17.12 |
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|
17,241 |
- |
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|
17,241 |
- |
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323,691,421 |
55.28 |
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38,667,084 |
6.60 |
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132,355,568 |
22.60 |
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7,304,813 |
1.25 |
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83,523,078 |
14.26 |
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258,888 |
0.04 |
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4,901,094 |
0.84 |
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74,404,116 |
12.71 |
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3,955,662 |
0.68 |
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|
3,318 |
- |
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261,850,543 |
44.72 |
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Total Public shareholding (B) |
585,541,964 |
100.00 |
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Total (A)+(B) |
585,541,964 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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24,481,254 |
- |
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|
24,481,254 |
- |
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Total (A)+(B)+(C) |
610,023,218 |
- |
(1) Indian
Mutual Funds / UTI
Foreign BankBUSINESS DETAILS
|
Line of Business : |
Manufacturers and Sellers of Earthmoving Machinery including
Bulldozers, Dumpers, Scrappers, Loaders, Shovels, Vibratory Compactors and
Drag Lines. |
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Products : |
·
Chemicals
·
Petrochemical
·
Refinery
·
Fertilizer
|
PRODUCTION
STATUS
(As on
31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Scrapper,
bulldozer, ripper and loader attachments |
Nos. |
250 |
250 |
35 |
|
Road Rollers, hot
mix plants and other road construction and bridge construction machinery |
Nos. |
150 |
150 |
-- |
|
Chemical plant and
machinery including pharmaceutical, dyestuff, distillery, brewery and solvent
extraction plants, evaporator and crystalliser plants and pollution control
equipment in aggregate |
Tonnes |
6067 |
6067 |
21140 |
|
Equipment for
food processing industry |
Tonnes |
65 |
65 |
-- |
|
Complete cement
making machinery including rotary kilns and fluxo packers in aggregate |
Nos. |
2 |
2 |
Parts for 3 plants |
|
Sugarcane and
beet diffusion, beet preparation and beet pulp dehydration plants |
Nos. |
2 |
2 |
-- |
|
Nuclear purpose
equipment, de-aerators, ultra high pressure vessels including multiwall
vessels, high pressure heat exchangers and high pressure heaters in aggregate
|
Tonnes |
5000 |
3950 |
74 |
|
Plant and
equipment and modules for nuclear power projects, heavy water projects,
nuclear and space research and allied projects including items for chemical,
oil and gas, etc., industries |
Tonnes |
10000 |
10000 |
38680# |
|
Complete high
speed bottling plants |
Nos. |
6 |
6 |
-- |
|
Pulp and paper
making plants |
Tonnes |
2000 |
800 |
-- |
|
Suspended
particles drying plants |
Nos. |
6 |
6 |
-- |
|
Containers for
liquefied gases and chemicals |
Nos. |
Not Applicable * |
1000 tones carrying capacity |
-- |
|
Steel plant
valves |
Nos. |
40 |
40 |
-- |
|
Ship auxiliaries
and components of mechanised sailing vessels |
Tones |
1000 |
1000 |
44 |
|
Rubber Processing
Machinery |
Nos. |
109 |
600 |
276 |
|
Switchgear, all
types |
Nos. |
4952750 $ |
4952750 |
9940276 |
|
Miscellaneous
electrical items |
Nos. |
1049100 |
1039100 |
-- |
|
Petrol dispensing
and metering pumps |
Nos. |
-- |
-- |
-- |
|
Press tools,
jigs, fixtures, dies for pressure, castings, moulds for plastic injection and
bakelite |
Rs. Millions/ Nos. |
73.000 millions |
73.000 millions |
484 nos. |
|
Industrial
Machinery |
Tonnes |
42000 |
42000 |
25305 |
|
Industrial
Electronic Control Panels |
Nos. |
2500 |
2500 |
1100 |
|
Electro surgical
unit and accessories |
Nos. |
Not Applicable * |
2500 |
479 |
|
Ultrasound
equipment and accessories |
Nos. |
Not Applicable * |
1000 |
118 |
|
Patient
monitoring system and accessories |
Nos. |
Not Applicable * |
10000 |
9782 |
|
Relays |
Nos. |
Not Applicable * |
45000 |
43558 |
|
Electricity
meters |
Nos. |
Not Applicable * |
3264000 |
2947840 |
|
Transmission line
tower |
Tonnes |
95000 |
95000 |
91016 |
|
Steel structural
fabrication |
Metric Tonnes |
12000 |
12000 |
41898 |
|
Steel re-rolling |
Tonnes |
40000 |
40000 |
34885 |
|
Defence
equipment, all types |
Nos. |
3871 |
3871 |
1495 parts thereof |
|
Parts for
aircraft and other metal products |
Nos. |
100000 |
100000 |
-- |
|
Parts and
accessories for prime movers, boilers, steam generating plants and nuclear
reactor |
Nos. |
25000 |
35000 |
-- |
|
Design, development
and manufacture of airborne assemblies, system and equipment for aircrafts,
helicopters and uninhabitated arial vehicles and equipments for the aviation
sector |
Nos. |
-- |
-- |
1130 |
|
Commercial Ships |
Nos. |
-- |
2 |
-- |
Notes
* Licensing not applicable. Installed capacity
is based on one of the following:
a)
Entrepreneur’s memoranda
filed with Government of India, Ministry of Industry,
b)
Registration with the Directorate
General of Technical Development
c)
Approval obtained from
the Government of India, Ministry of Industry,
d)
Agreement with Government
of
@ excludes Rs.20.000 millions in respect of
memoranda Nos.924/SUA/IMP/92 dated 27.03.1992 of which capacity of Rs. 7.500
millions was been installed.
$ Excludes 696250 nos. in respect of memoranda
nos. 924/SIA/IMO/91 and 922/SIA/IMO/91 dated 11.9.1991 of which capacity of
496250 nos. has been installed.
# includes production from external sources.
## Ready mix concrete business is divested
during the previous year.
GENERAL INFORMATION
|
No. of Employees : |
22922 (Approximately) |
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Bankers : |
·
State
Bank of ·
Bank
of ·
Central
Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Sharp and Tannan Chartered
Accountants |
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Solicitors: |
Manilal Kher Ambalal and Company |
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Memberships : |
Confederation of
Indian Industry |
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Subsidiaries : |
·
·
Larsen and Toubro ( ·
L and T Capital Company Limited ·
L and T Finance Limited ·
L and T Infrastructure Development Projects
Limited ·
L and T Krishnagiri Thopur Toll Road Limited ·
L and T Panipat Elevated Corridor Limited ·
L and T Tech Park Limited ·
L and T T Urban Infrastructure Limited ·
L and T Western Andhra Tollways Limited ·
Larsen and Toubro ( ·
Larsen and Toubra Information Technology Canada
Limited ·
Larsen and Toubro Infotech Limited ·
Narmada Infrastructure Construction Enterprise
Limited ·
Larsen and Toubro ·
L and T Modular Fabrication Yard LLC, ·
L and T Electrical Saudi Arabia Company Limited,
LLC ·
L and T Uttaranchal Hydropower Limited ·
Larsen and Toubro ( ·
India Infrastructure Developers Limited ·
L and T -Sargent and Lundy Limited ·
L and T Engserve Private Limited ·
L and T Infocity Limited ·
L and T Interstate Road Corridor Limited ·
L and T Awn Excello Commercial Projects Private
Limited ·
L and T Chennai-Tada Tollway Limited ·
L and T Vadodara Bharuch raIlway Limited ·
L and T Western India Tolibridge Limited ·
Larsen and Toubro Infotech GmbH ·
Larsen and Toubro International FZE ·
RaykalAluminum Company Private Limited ·
Tractor Engineers Limited ·
L and T Southcity Projects Limited ·
L and T ( ·
L and T Infrastructure Finance Company Limited ·
L and T Power Limited ·
Nabria Power Limited ·
L and T Bangalore Airport Hotel Limited ·
Spectrum Infotech Private Limited ·
Larsen and Toubro ·
Larsen and Toubro LLC ·
L and T -Valdel Engineering Limited ·
Offshore International FZC ·
L and T Infrastructure Development Projects
(Lanka) ·
Private Limited ·
·
L and T Hitech City Limited ·
L and T Vision Ventures Limited ·
L and T Rajkot-Vadinar To[lway Private Limited ·
Tamco Switch gear ( ·
L and T Realty Private Limited ·
L and T Transco Private Limited ·
L and T Halol-Shamlaji Tollway Private Limited ·
Larsen and Toubro Kuwait Construction General
Contracting ·
Company WLL ·
L and T Arun Excello IT SEZ Private Limited ·
L and T Electrical and Automation FZE ·
L and T Transportation Infrastructure Limited ·
L and T Overseas Projects Nigeria Limited ·
L and T Infra and Property Development Private Limited ·
L and T Strategic Management Limited ·
L and T Capital Holdings Limited ·
Chennai Vision Developers Limited ·
Larsen and Toubro lnfotech LLC ·
International Seaports Pte. Limited ·
L and T Technologies Limited ·
Larsen and Toubro Electromech LLC ·
L and T Seawoods Private Limited ·
Hyderabad International Trade Expositions Limited ·
L and T -MHI Boilers Private Limited ·
Larsen and Toubro Readymix Concrete Industries
LLC ·
Larsen and Toubro ( ·
CSJ Infrastructure Private Limited ·
L and T Trustee Company Private Limited ·
L and T Gulf Private Limited ·
L and T Natural Resources Limited ·
L and T Power Development Limited ·
L and T Shipbuilding Limited ·
L and T Ahmedabad-Maliya Tollway Private Limited ·
GDA Technologies Limited ·
Larsen and Taubro ATCO Saudia LLC ·
L and T Heavy Engineering LLC ·
L and T -Plastics Machinery Limited ·
PNG Taliway Private Limited ·
L and T -MH1 Turbine Generators Private Limited ·
L and T Concrete Private Limited ·
Hitech Rock Products and Aggregates Limited ·
L and T Aviation Services Private Limited ·
L and T Special Steels and Heavy Forgings Private
Limited ·
L and T General Insurance Company Limited ·
International Seaports ( ·
L and T EmSyS Private Limited |
|
|
|
|
Associates : |
·
Audco India Limited ·
EWAC Alloys Limited ·
L and T-Chiyoda Limited ·
L and T-Komatsu Limited ·
L and T Ramboll Consulting Engineers Limited ·
L and T-Case Equipment Private Limited ·
Voith Paper Technology ( ·
Salzer Electronics Limited ·
International Seaport (Haldia) Private Limited ·
Feedback Ventures Limited ·
L and T Arun Excello Realty Private Limited ·
International Seaport Dredging Limited* |
|
|
|
|
Joint Ventures : |
·
International Metro Civil Contractors Joint
Venture ·
Bauer- L and T Diaphragm Wall Joint Venture ·
The Dhamra Port Company Limited ·
L and T -Eastern Joint Venture ·
Metro Tunneling Group ·
L and T Hochtief Seabird Joint Venture ·
Desbuild- L and T Joint Venture ·
L and T -Shanghai Urban Corporation Group Joint
Venture ·
L and T -AM Tapovan Joint Venture ·
HCC-L and T Purulia Joint Venture |
NOTE
# Investment sold during the year.
·
Associate company w.e.f.
May 21, 2009
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,625,000,000 |
Equity Shares |
Rs.2/- Each |
Rs.3250.000 millions |
|
|
|
|
|
Issued , Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
608852126 |
Equity Shares |
Rs.2/- Each |
Rs. 1217.700
Millions |
|
|
|
|
|
After 26.08.2010
Authorised Capital :
Rs.3250.000 Millions
Issued , Subscribed & Paid-up Capital :
Rs.1222.322 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1217.700 |
1204.400 |
1171.400 |
|
|
2] Share Application Money |
0.000 |
250.900 |
0.000 |
|
|
3] Reserves & Surplus |
213561.800 |
178822.200 |
121068.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
214779.500 |
180277.500 |
122240.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10630.400 |
9557.300 |
11023.800 |
|
|
2] Unsecured Loans |
60980.700 |
58451.000 |
54536.500 |
|
|
TOTAL BORROWING |
71611.100 |
68008.300 |
65560.300 |
|
|
DEFERRED TAX LIABILITIES |
5497.400 |
3892.700 |
4351.600 |
|
|
Employee Stock options Outstanding |
3683.100 |
2838.900 |
2356.600 |
|
|
|
|
|
|
|
|
TOTAL |
295571.100 |
255017.400 |
194508.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
64519.800 |
53654.200 |
40127.900 |
|
|
Capital work-in-progress |
7850.000 |
8576.600 |
10409.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
146848.200 |
137053.500 |
82637.200 |
|
|
DEFERREX TAX ASSETS |
2862.700 |
3118.800 |
3866.900 |
|
|
INTANGIBLE ASSETS |
2211.500 |
1426.800 |
1408.200 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
15771.500
|
14153.700
|
14705.100 |
|
|
Sundry Debtors |
124276.100
|
111637.000
|
99031.300 |
|
|
Cash & Bank Balances |
17303.500
|
14318.700
|
7752.900 |
|
|
Other Current Assets |
110273.400
|
63532.200
|
43561.000 |
|
|
Loans & Advances |
81886.900
|
59974.500
|
58193.600 |
|
Total
Current Assets |
349511.400
|
263616.100
|
223243.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
135326.600
|
95080.300
|
68277.400 |
|
|
Other Current Liabilities |
120571.600
|
95464.700
|
79484.100 |
|
|
Provisions |
22334.300
|
21883.600
|
19426.300 |
|
Total
Current Liabilities |
278232.500
|
212428.600
|
167187.800 |
|
|
Net Current Assets |
71278.900
|
51187.500
|
56056.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
2.600 |
|
|
|
|
|
|
|
|
TOTAL |
295571.100 |
255017.400 |
194508.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
434959.300 |
366751.500 |
336465.700 |
|
|
|
Other
Operational Income |
4089.800 |
3596.500 |
2919.700 |
|
|
|
Other Income |
14431.300 |
20249.600 |
7397.800 |
|
|
|
TOTAL (A) |
453480.400 |
390597.600 |
346783.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing construction and operating expenses |
334316.200 |
284535.500 |
262716.200 |
|
|
|
Staff expenses |
28845.300 |
23791.400 |
19744.600 |
|
|
|
|
19902.600 |
14627.400 |
17947.600 |
|
|
|
Overheads charged to fixed assets |
(378.700) |
(362.500) |
(244.800) |
|
|
|
Transfer from revaluation reserve |
(10.600) |
(13.000) |
(13.100) |
|
|
|
Extraordinary Item |
(708.400) |
(1357.200) |
(7724.600) |
|
|
|
TOTAL (B) |
381966.400 |
321221.600 |
292425.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
71514.000 |
69376.000 |
54357.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6473.700 |
5053.100 |
4155.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
65040.300 |
64322.900 |
50201.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6002.800 |
4159.000 |
3073.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
59037.500 |
60163.900 |
47128.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
19458.600 |
16408.700 |
12312.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (I) |
39578.900 |
43755.200 |
34816.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1072.900 |
1005.000 |
1043.100 |
|
|
|
|
|
|
|
|
|
Less |
Dividend paid for previous year |
34.400 |
20.400 |
|
|
|
Less |
Transfer to Debenture redemption reserve |
5.700 |
3.500 |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
29100.000 |
34600.000 |
27250.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
498.300 |
433.400 |
433.400 |
|
|
BALANCE CARRIED
TO THE B/S |
11013.400 |
9702.900 |
1005.000 |
|
|
Less |
Proposed Dividend |
8828.400 |
7527.500 |
--- |
|
|
Less |
Additional tax on dividend |
1128.200 |
1102.500 |
--- |
|
|
|
|
1056.800 |
1072.900 |
1005.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
5553.400 |
5101.400 |
16513.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
10090.500 |
10538.800 |
12088.000 |
|
|
|
Components & Spare Pats |
35240.200 |
31352.100 |
21456.500 |
|
|
|
Spare Parts for |
3605.200 |
2291.500 |
3981.300 |
|
|
|
Capital Goods |
6416.100 |
4791.300 |
6172.300 |
|
|
TOTAL IMPORTS |
55352.000 |
48973.700 |
43698.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
65.33 |
73.77 |
59.50 |
|
QUARTERLY RESULTS
Rs.
In Millions
|
PARTICULARS |
31.12.2010 |
31.03.2011 |
31.06.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
114130.800 |
153842.100 |
94826.100 |
|
Total Expenditure |
101751.900 |
130433.500 |
83561.400 |
|
PBIDT (Excl OI) |
12378.900 |
23408.600 |
11264.700 |
|
Other Income |
2471.800 |
3698.200 |
2961.800 |
|
Operating Profit |
14850.700 |
27106.800 |
14226.500 |
|
Interest |
1757.100 |
1361.700 |
1612.600 |
|
Exceptional Items |
353.000 |
2267.700 |
0.000 |
|
PBDT |
13446.600 |
28012.800 |
12613.900 |
|
Depreciation |
1280.900 |
2357.700 |
1678.500 |
|
Profit Before Tax |
12165.700 |
25655.100 |
10935.400 |
|
Tax |
3760.400 |
8793.000 |
3473.900 |
|
Profit After Tax |
8405.300 |
16862.100 |
7461.500 |
|
Net Profit |
8405.300 |
16862.100 |
7461.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.73 |
11.20 |
10.04 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.57 |
16.40 |
14.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.26 |
18.96 |
17.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27 |
0.33 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.63 |
1.56 |
1.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26 |
1.24 |
1.34 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY The birth of subject was happened in the year of 1946 as a private Limited company. Earlier it was a partnership firm founded by Mr. Henning Holk Larsen with Mr. Soren Kristian Toubro. Subject turned on to a public limited company in the year of 1950. Company focused in the areas of Engineering and Construction, Electrical and Electronics, Machinery and Industrial Products and in IT and Technological Services. Subject came across in Shipping and Cement industry also. During the year 1981-82 company acquired 2 bulk shipping carriers from Japan and in the year 1983-84 started one cement plant with capacity of 1 MTPA at Maharashtra . In the year 1997 a joint venture company was formed with Deere Private Limited to manufacture agricultural tractors namely L and T-John Deere Private Limited. In April 1st 2003 company transferred its Cement business to Ultra Tech Cement company. Subject received a host of awards, medals and trophies for its continuous efforts. Environmental Excellence Gold award from Greentech Foundation in 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports. During the financial year of 2004-05 Business world's survey on India Asia 's "Most Admired Companies" and ranked the company No.1 for quality of products and for overall reputation during the year 2006-07. In April 2007 subject and its associate Audco India Limited (AIL) invested Rs.350 millions in the Coimbatore (TN) switchboard and valve unit and plans to investment Rs.600 millions over the coming few years. Subject joining hands with Japan India
YEAR IN RETROSPECT
The gross sales
and other income for the financial year were Rs. 457380.000 Millions as against
Rs. 393810.000 Millions for the previous financial year registering an increase
of 16%. The Profit before tax excluding extraordinary and exceptional items was
Rs. 55710.000 Millions and the Profit after tax excluding extraordinary and
exceptional items of Rs. 36760.000 Millions for the financial year as against
Rs. 48060.000 Millions and Rs. 31850.000 Millions respectively for the previous
financial year, registering an increase of 16% and 15% respectively.
DEPOSITORY SYSTEM
As the members are
aware, the Company's shares are compulsorily tradable in electronic form. As on
March 31, 2011, 96.95% of the Company's total paid-up Capital representing
59,02,88,225 shares are in dematerialized form. In view of the numerous
advantages offered by the Depository system, members holding shares in physical
mode are advised to avail of the facility of dematerialization from either of
the Depositories.
.
CAPITAL and FINANCE
During the year,
the Company allotted 66,56,718 equity shares upon exercise of stock options by
the eligible employees under the Employee Stock Option Schemes.
During the year,
the Company tied up Rs. 8000.000 Millions of debt, through multiple issuances
of Non-Convertible Debentures, which have maturity of 10 years and are
unsecured. Of this, Rs. 2600.000 Millions have been drawn in 2010-11, the
balance Rs. 5400.000 Millions to be drawn in 2011-12. In 2011-12, for one of
the issuances, the Company has an option to not draw Rs. 2700.000 Millions and
prepay Rs. 300.000 Millions.
The debentures
were issued for general corporate purposes. During the year, the Company repaid
a part of the long term foreign currency loans, equivalent to about Rs.
4300.000 Millions
SUBSIDIARY COMPANIES
During the year,
the Company subscribed to/acquired equity shares in various subsidiary
companies. These subsidiaries are either SPVs executing projects secured
through Build Operate Transfer (BOT) route, or holding companies making
investments in companies such as power and financial services. The details of
investments in subsidiary companies made during the year are as under:
- 1 1,22,51,000
equity shares of Rs. 10 each in L AND T-MHI Boilers Private Limited.
- 12,75,51,000
equity shares of Rs. 10 each in L AND T-MHI Turbine Generators Private
Limited.
- 6,34,32,835
equity shares of Rs. 10 each in L AND T Finance Holdings Limited (formerly
L AND T Capital Holdings Limited).
- 50,000 equity
shares of Rs. 10 each in L AND T Solar Limited.
- 3,24,00,000
equity shares of Rs. 10 each of L AND T Infrastructure Development
Projects Limited.
- 114,90,00,000
equity shares of Rs. 10 each in L AND T Power Development Limited.
- 15,00,006
equity shares of Rs. 10 each in L AND T-Gulf Private Limited.
- 17,10,00,000
equity shares of Rs. 10 each in L AND T General Insurance Company Limited.
- 2,600 equity
shares of Rs. 10 each in L AND T Krishnagiri Walajahpet Tollway Private
Limited.
- 100 equity
shares of Rs. 10 each in L AND T Devihalli Hassan Tollway Private Limited.
- 2,40,00,000
equity shares of Rs. 10 each in L AND T Aviation Services Private Limited.
- 50,10,000
equity shares of Rs. 10 each in L AND T Howden Private Limited.
- 34,40,000
equity shares of Rs. 10 each in L AND T Metro Rail (
- 9,51,38,939
equity shares of Rs. 10 each in L AND T Sapura Shipping Private Limited.
- 6,000 equity
shares of Rs. 10 each in L AND T Sapura Offshore Private Limited.
- 50,000 equity
shares of Rs. 10 each in L AND T Power Gen Limited.
- 4,14,720
equity shares of Rs. 100 each representing 50% stake of EWAC Alloys
Limited.
- 10,400 equity
shares of Rs. 10 each in L AND T Samakhiali Gandhidham Tollway Private
Limited.
- 1,53,00,000
equity shares of Rs. 10 each in L AND T Kobelco Machinery Private Limited.
- 11,10,00,000 equity
shares of Rs. 10 each in L AND T Special Steels and Heavy Forgings Private
Limited.
- Further
contribution in 67,69,518 partly paid-up equity shares in L AND T
Infrastructure Development Projects Limited. With this contribution, these
shares have become fully paid-up.
- During the
year, L AND T-Sargent and Lundy Limited issued to the Company 13,76,065
equity shares of Rs. 10 each as bonus shares.
- The Company
transferred 6,52,65,000 equity shares of Rs. 10 each in L AND T
Halol-Shamlaji Tollway Limited to L AND T Infrastructure Development
Projects Limited.
- The Company
transferred 6,30,15,000 equity shares of Rs. 10 each in L AND T
Ahmedabad-Maliya Tollway Limited to L AND T Infrastructure Development
Projects Limited.
- The Company
transferred 10,000 equity shares of Rs. 10 each in L AND T Transco Private
Limited to L AND T Infrastructure Development Projects Limited.
- The Company
sold 500 equity shares of Rs. 10 each in Kesun Iron and Steel Company
Private Limited.
Three subsidiary
companies had applied for strike off under the Easy Exit Scheme, 2010 (EES
2010). They have received communication from ROC that these companies have been
struck off the register under Section 560(5) of the Companies Act, 1956 and
they stand dissolved.
MCA, vide it's
Circular No. 2/2011 dated February 8, 2011, has granted general exemption under
Section 212(8) of the Companies Act, 1956, for not attaching annual reports of
subsidiary companies subject to certain conditions being fulfilled by the
Company. As required under the circular, the Board of Directors has, at its
meeting held on April 6, 2011, passed a resolution giving consent for not
attaching the Balance Sheet of the subsidiary companies. They have also given
the required information on subsidiary companies in this Annual Report.
Shareholders who wish to have a copy of the full report and accounts of the
subsidiaries will be provided the same on receipt of a written request from
them.
.
MANAGEMENT DISCUSSION and ANALYSIS 2010-2011
GLOBAL ECONOMIC CONDITION
The 21st century
is seeing a fundamental reshaping of the way business, society and governments
operate. In recent times, the economic crisis and its repercussions have
accelerated the shift of economic power from the developed to the emerging
nations and exposed a fragile world with limited capacity to respond to
systemic risks.
As a consequence,
the global economic growth has stymied and likely to traverse in an uncertain
zone for some years to come. The major challenges besetting the world economy
are managing the shift in balance of power from the developed to emerging
economies, increasing competition for securing natural resources, improving
productivity in the wake of growing skill mismatches, non-inclusive growth in
the emerging economies and above
all, a looming
economic uncertainty and socio-political fragility. Today the global economy is
awaiting a movement where governments define new ways of relating to each
other, operate in new frameworks and business models, while coping with the
ever-evolving challenges.
A more thoughtful
analysis reveals that global rebalancing needs to be a long-term, collaborative
process. It must encompass those excluded from the fruits of global prosperity
and encourage those who have prospered to continue doing so in a sustainable
manner. The recent economic crisis and socio-political tensions demonstrated
that systemic risks can no longer be tidily contained and addressed in a single
ecosystem but require a multi-disciplinary, multi-stakeholder effort to improve
the global economic system’s overall resilience.
Investments from
developed economies have typically flown into emerging markets, which offer
more dramatic growth and strong returns. However, some of these markets are
associated with high volatility and socio-political tensions, giving rise to
new set of investment risks. In addition, growing consumption demand in
emerging markets is driving up commodity prices, both crude oil and other raw
materials which is expected to impede the global economic recovery in the medium
term.
OVERVIEW OF INDIAN ECONOMY
The Indian economy
witnessed a higher growth in GDP of 8.5% for the year 2010-2011 over a growth
of 8% in 2009-2010. A strong rebound in agriculture and continued momentum in
some sectors of manufacturing and construction enabled the economy to achieve a
higher growth in 2010-2011.
Economic growth
was supported on the demand side, by private consumption during the year, and
accelerated investment in the first three quarters of 2010-2011. Consumer
durables, Automobile sector and engineering goods shored up the overall
industrial sector performance. In 2011-2012, the projected growth rate is in
the range
of 8% to 8.5%.
Aided by its young
demographic profile,
It is encouraging
that Infrastructure has been the focal point of the government’s budget
proposals for 2011-2012, accounting for a record 49% of total plan allocation.
In order to strengthen public-private partnerships it has proposed additional
avenues for financing infrastructure projects. However, the resilience of the
economy would continue to get tested in the medium term by the challenges
thrown up by a struggling world economy and domestic pressures of inflation and
increasing interest rates.
Construction and
turnkey projects business scenario industry registered a higher growth of 8.1%
for the year 2010-2011 led by an increased level of activity of industrial and
infrastructure construction segments. The growth trend is likely to sustain
through the next year on the back of renewed thrust on infrastructure. The real
estate and ITeS facility construction has gained traction, despite stringent
regulations and financing issues. Increasing award of public-private projects
in Airports and Ports sectors, besides the conventional Roads and Bridges
sector have also triggered the growth.
The gross capital
formation for 2010-2011 is lower at 7.6% as against 13.8% achieved in
2009-2010. The Core Industries registered a lower growth of 5.8% in 2010-2011,
largely due to supply side constraints.The sluggish growth for the past 2-3
years in the Core Sector is dampening the fresh investment decisions. Similarly
the industrial sectors saw an erratic growth trend during the year, thereby
delaying new capex decisions. It is expected that with supply side constraints
easing, the confi dence will re-emerge for undertaking fresh capacity addition
projects.
In the Hydrocarbon
sector, many
Investments in
Power sector are expected to be good over the next 5 years. While there is some
slippage in achieving the targeted capacity additions during the 11th Plan,
major capacity additions in the thermal power segment have been planned during
12th Five-year Plan, with special thrust to super critical technology. The
sector, however, needs to tackle environmental and social issues expeditiously,
besides tying up fuel sources so as to achieve the targeted growth in capacity.
BUSINESS CHALLENGES
Sustained economic
growth in
Order prospects
for infrastructure, power, fertilizer, defence and aerospace, water and
railways sectors largely depend upon the government’s ability to implement
policy decisions and finance large scale projects. Power projects and new
projects in minerals and metals sector face hurdles due to issues such as land
acquisition, coal linkages and environmental clearances.
With increasing
proportion of large sized Engineering, Procurment and Construction (EPC) orders
under execution, meeting stiff delivery schedules set by demanding customers
will require smart contract management and close project monitoring to achieve
sales targets.
The year 2010-2011
saw sustained increase in the prices of major inputs and raw materials.
Considering the huge need for domestic infrastructure, there could be some
imbalance in the demand and supply scenario leading
to increasing
costs and pressures on margins.
GROWTH STRATEGIES and THRUST AREAS
Ensuring cost
competitiveness, timely execution of projects within cost estimates, managing
volatility, control over working capital, achieving operational efficiency,
improved supply chain management will be the key success factors for the
projects and product businesses to achieve the desired growth in the medium
term. The major strategies for growth are enumerated below:
• New business
structure rollout: The Company has embarked upon implementation of Lakshya
Perspective Plan for the period 2010-2015. The first year of the Plan has
successfully commenced with completion of most of the changes in policies and
processes pursuant to formation of Independent Companies (ICs) and the new
structure is effective April 1, 2011. The new IC structure is expected to
facilitate scalable, high impact organisational structure
in the near
future. The formation of ICs would empower businesses to harness sectoral
opportunities, enhance competitiveness, attract talent, create leadership
bandwidth, increase accountability and strengthen performance culture.
• Capacity
Expansion: Kattupalli, Hazira, Talegaon,
The Company has
strengthened its position as a major EPC player in Hydrocarbon upstream sector
with the commissioning of the modular fabrication yard at Kattupalli, Tamil
Nadu and successful launch of the state-of-the-art heavy-lift-cumpipe- lay
vessel - LTS 3000 in 2010-2011.
INTERNATIONAL BUSINESS:
On the
international front, the Company’s modular fabrication facility in
The Electrical and
Automation IC has targeted increase in the output from its overseas production
facilities in
• Presence in Gulf
Cooperation Council (GCC) countries will be strengthened considering the
upcoming potential in infrastructure and hydrocarbon sectors. Opportunities
will be explored with right partners for forays into
• New geographies
like
• The subsidiary
companies in
• Thrust Areas of
Project Businesses:
The ICs in project
business will focus on expanding customer base, strengthening business
development efforts, better key account management, cost leadership, improved
capacity utilization, technological tie ups to acquire capability to bid for
high-end projects and forays into new business segments and geographies.
• EandC (Projects)
Division has plans to acquire new capabilities in areas of EPC for Coal Gassifi
er Plants, Poly Propelene Plants, Ammonia Plants, Rig Refurbishments and
Sub-sea Systems. Business development initiatives will be strengthened to
establish the IC as EPC player in Floating Systems.
• Building and
Factories IC and Infrastructure IC will enhance engineering and design band
width to increase the proportion of high-end Design and Build jobs. Tie-ups are
envisaged with leading international players for high rise construction
technology and formwork. “
• Defence and
Aerospace business has plans to form joint ventures with well-established
international players in its strategic areas of interest.
• Thrust Areas of
Product
BUSINESSES:
Product businesses
will work on enhancement of operational efficiencies, cost competitiveness and
better supply chain management.
• Various
initiatives are underway to strengthen product range in Electrical and
Automation IC. The IC will promote integrated solutions to gain competitive
advantage.
• The Industrial
Machinery business will strengthen the product range in Apron Feeders, Mobile
Crushers and Tyre Handling systems. Initiatives are planned for improving the
capacity utilization and vendor development.
• Human Resource
Development: Attracting and retaining talent with requisite competencies,
especially for the emerging businesses and focus on training and development to
improve productivity are key thrust areas for businesses to strengthen
competitive advantage. Various initiatives have been planned for career
planning, employee engagement, competency building and succession planning. The
Company ended the year with a healthy Order Inflow of Rs. 797690.000 Millions
taking its Order Book position to Rs.1302170.000 Millions, giving good revenue
visibility in the medium term.
Accordingly, the
Company is setting its vision on a long term growth trajectory to achieve
higher levels of valuel creation to its stakeholders. In this backdrop, the
Company’s business divisions and the Subsidiary and Associate Companies present
their operations review for the year 2010-2011.
ENGINEERING, CONSTRUCTION and CONTRACTS DIVISION
OVERVIEW
Engineering,
Construction and Contracts Division (ECCD) undertakes engineering, design and
construction of infrastructure, buildings, factories, water supply and
metallurgical and material handling projects covering civil, mechanical,
electrical and instrumentation engineering disciplines.
Supported by a
proven track record of over sixty-seven years, covering all types of buildings,
industrial sectors and infrastructure development, the Division undertakes
lumpsum turnkey construction with singlesource responsibility. The Division has
to its credit many prestigious landmark constructions in the country.
The Division has
secured the 34th rank amongst the top 225 Global Contractors
[source: Engineering News Record (ENR) August 30, 2010], improving its ranking
over the last 5 years from 54th rank in ENR 2006.
OUTLOOK
The Independent
Companies have completed their strategic plans for the next 5 years with a
strategic growth orientation. The thrust areas include increasing the market
share, improving the competitiveness and expanding the geographical reach
beyond current boundaries. However, in view of the uncertainty in some of the
countries of interest, the businesses are carefully monitoring the developments
in the new countries and will pitch in at an
opportune time.
Overall, the
outlook for the construction businesses remain strong given the macro economic
indicators in general
and a healthy
construction order book at the year end in particular.
ENGINEERING and CONSTRUCTION (PROJECTS) DIVISION
OVERVIEW
Engineering and
Construction Division designs, engineers and executes worldclass projects for
the hydrocarbon sector with single-point responsibility from front-end design
through detailed engineering, modular fabrication, procurement, project
management, construction and installation, to commissioning. Strategic
alliances with world leaders enable the Division to access advanced know-how
and deliver projects that meet stringent Health, Safety and Environment,
quality requirements and time schedules.
The Division has a
good track record of executing large size and complex projects on turnkey basis
in Oil and Gas,
Petroleum Refi
ning, Petrochemicals, Fertilisers and Water Technology sectors.
Division’s major
capabilities include in-house engineering, R and D centers, engineering joint
ventures with reputed
international
companies, offshore installation capabilities, world class fabrication
facilities, experienced and competent project execution team and safe work
culture.
Engineering and
Construction Division is organised into three Strategic Business Groups (SBGs):
• Hydrocarbon
Upstream
• Hydrocarbon Mid
and Downstream
• Hydrocarbon
Construction and Pipelines
During the year
Division registered a good growth in Sales and PBIT.
OUTLOOK
The world economy
is seeing a turnaround. However, the recovery is uneven and vulnerable to
downside risks. Political uncertainties in
While developed
economies are showing some sluggishness resulting in rise in unemployment
levels, emerging
economies have
come back on growth track.
High crude oil
price scenario is expected to continue in the near term. The induction of
stimulus packages into the economy has created liquidity and thereby leading to
inflationary pressures and higher commodity prices.
Worldwide Oil and
Gas Capex plans are expected to remain high and are expected to provide good
prospects to the business of the Division in 2011-2012. Some of the key factors
which will support growth in near future are:
• Increasing
brownfi eld prospects especially in Middle East and
• Market for new
built Jack-up Rigs and FPSOs looking up in addition to the refurbishment market
• Refi ning units
in
• Good prospects
are seen in new lines of businesses such as Gas Processing, Poly Propylene (PP)
and Coal Gasifi cation
• “Infrastructure”
status given to fertilizer industry has created conducive environment for
revamping and modifi cation of fertilizer plants.
• With increased
thrust on gas production and transportation, boost in investments in cross
country gas pipeline projects is expected On the back of healthy order book and
good prospects during 2011-2012, the Division is expected to achieve healthy
growth in the coming year.
EPC POWER DIVISION
OVERVIEW
The 2010-2011 has
seen the emergence of EPC Power Division as a credible player in the power
sector. This is gratifying as the success of EPC Power is critical to the
Company’s performance. Definative steps have been taken by the Division,
whereby, the Company will be providing equipment and services encompassing
nearly 75% to 85% in value terms of a thermal power plant.
On January 11,
2011, the Company dedicated its Boiler and Steam Turbine Generator
manufacturing facilities at
Hazira,
The year also saw
substantial progress in setting up the facilities for manufacture of Power
Auxiliaries at Hazira. The high pressure piping fabrication facility was
commissioned and production has commenced in March 2011.
The facility for
manufacture of Electrostatic Precipitators in Hazira,
plant.
OUTLOOK
The year 2010-2011
saw slew of power project prospects being delayed due to various reasons. With
more clarity emerging on policy fronts, the Division expects several projects
to be tendered this year both by IPP’s and state owned entities. The policy
regime now favors establishing power plants based on super critical technology
and sourced from indigenous facilities.
The Ultra-Super
Critical Technology which is yet to be introduced in
HEAVY ENGINEERING DIVISION
OVERVIEW
Heavy Engineering
Division is organized into two Independent Companies (IC) namely Heavy
Engineering Independent Company and Ship Building Independent Company
OUTLOOK
The HE IC sees
some of the international grassroot refineries, gas and fertilizer projects
heading towards financial
closure, in the
near future. Major domestic upgrade and expansion projects are also expected to
be decided shortly.
South America,
Europe, Middle East and
The Japanese nuclear
crisis is leading to a thorough review of Safety Standards in their ability to
handle multiple
natural disasters
simultaneously. The Nuclear Sector Regulator is likely to be accorded autonomy
for overseeing
Safety of Nuclear
Plants. As a result of these structural changes, slowdown of 1-2 years is
expected in Nuclear
Renaissance. Site
selection criteria are likely to undergo change and will be more rigorous as
compared to past. The HE IC is exploring new opportunities to reduce the
impact.
The SB IC
envisions itself to consolidate its position as an established platforms
builder for the Indian Navy and Coast Guard and also enter into repairs and
refits. Additional focus is being given on the Marine Equipment segment. With
the opening up of the Defence sector and the thrust on indigenous product
development and system integration capability, the share of private suppliers
is expected to increase. The opening of the sector and indigenisation thrust by
the Government is driving new private players to enter in the Defence sector.
These would, in times to come, add to the competition in this segment. The
upcoming shipyard at Katupalli as a deep water yard however, is expected to
give the SB IC an added advantage.
It is also working
on formation of Joint Ventures in key technology areas for Defence
applications, with leading technology/system providers, which would lay the
foundation for growth in the years to come. With the economic recessionary
trend yet far from over, the coming year is likely to be challenging.
However, the SB IC
is well poised to harness the good market opportunities in the medium to long
term. The increasing oil prices are showing a revival in the Oil Exploration
sector.
Thereby, the
business prospects for offshore supply vessels and other support vessels have
shown an upswing, especially from the
The other sector
which shows promise is Coal, with a large number of Thermal Power plants due to
come on line in the next five years. The dependence on imported coal is due to
increase which will require coastal vessels to transship from large ocean
carriers. The IC also expects a growth in medium sized container vessels to
carry between 2000-2500 TEU’s from main line ports to feeder ports.
Overall, the
Division’s both ICs envisage good market opportunities in the medium to long
term.
ELECTRICAL and ELECTRONICS DIVISION
OVERVIEW
The Division
comprises Electrical and Automation Independent Company and Medical Equipment
and Systems
business.
OUTLOOK
The electrical
sector in
On international
business front, Gulf markets are expected to be the major contributors. Various
Oil and Gas projects in Gulf region are showing revival and Utility industries
are coming up with new projects. The business envisages a major opportunity in
Financial year
2011-2012 looks upbeat with increased Government spending in Healthcare, likely
increase in number of new medical colleges and large hospitals expanding their
operations. Increasing presence in the low cost segment and strengthening
presence the mid to high-end segment with further skill building of sales and
service workforce will remain key initiatives of this business in current
financial year. Overall, EAIC and Medical business will focus on expanding its
products and services offering in domestic market, increasing international
business and reducing overall level of working capital.
MACHINERY and INDUSTRIAL PRODUCTS DIVISION
OVERVIEW
Machinery and
Industrial Products Division (MIPD) comprises three Strategic Business Groups –
Construction and
Mining Machinery,
Industrial Machinery and Industrial Products.
OUTLOOK
The market demand
for Hydraulic Excavators is expected to improve in 2011-2012 on account of the
increase
in spending in the
urban infrastructure, roads, general construction sectors and spending by the
Government on
various
infrastructure projects.
It is expected
that the Mining Equipment business will continue to see a growth on account of
investments being made both in the public and private sectors to augment coal
production. The demand for metals like iron ore, zinc
etc. is also
expected to help growth of this business segment. Gap between coal demand and
supply, continues to provide a growing opportunity for Mining Equipment. CMB is
well placed to take advantage of these opportunities through supply of large
size Mining Equipment both to the public and private coal producing companies.
However, environmental and land acquisition issues may present impediments in
the near term for expansion in mining equipment demand.
The Valves
business saw a return of order booking, both from the Hydrocarbon and Power sectors, during the
year and this augurs well for the ensuing years.
With the
implementation of the private sector projects in many states and the NTPC’s
plan for new units there is a good scope for Valves business in the coming
year. It is also pursuing opportunities with the Chinese contractors who have
secured a large number of these projects in
With a view of
consolidating and enhancing the Welding Products business, the Company bought
out the stake of its partner in EWAC Alloys Limited which has now become a
wholly-owned subsidiary. The prospects for this business continue to look good.
New investments in machine tools by customers continued in 2010- 2011 adding to
growth in market size and the Cutting Tool business of the Division is expected
to register good growth in 2011-2012 as well. Overall, the Division envisages a
moderate improvement in the Industrial growth indices in the coming year and
its businesses are better equipped to harness the market potential.
INTEGRATED ENGINEERING SERVICES
Integrated
Engineering Services (IES) provides leading-edge engineering solutions to
multiple industry sectors covering automotive, aerospace, consumer electronics,
consumer packaged goods, marine, medical devices, off-highway equipment,
railways, pharmaceuticals, oil and gas, utilities and industrial products.
It has global
headquarter at Vadodara, Gujarat and operates from dedicated off-shore
engineering centers at Vadodara, Mysore, Mumbai, Chennai and Bangalore in
tandem with onsite teams to cater to engineering requirements of global
clients, many of them are Fortune 500 Companies. It has more than 4,000
dedicated associates to deliver high-quality engineering and design solutions.
OUTLOOK
Slow global
economic recovery along with the tightening of outsourcing norms, dented the
growth of all sectors in the year 2010-2011. However, even in such a
challenging environment, IES has managed to hold its market share and expects
the momentum to continue in the year 2011-2012.
The investment in
emerging verticals of Aerospace and Medical Devices is expected to yield
substantial results in
terms of
incremental revenues from these two verticals. Besides this, the addition of
new services and European
focused sales are
also expected to be the main drivers of growth envisaged for the coming year.
A. LARSEN and TOUBRO INFOTECH LIMITED (L AND T
Infotech): Subsidiary Company
OVERVIEW
L AND T Infotech,
a wholly owned subsidiary of L AND T, is one of the fastest growing IT Services
company. Being a full services IT firm with a blue-chip client roster, it
offers comprehensive, end-to-end software solutions and services in the
industry verticals such as Manufacturing (Auto, Industrial Products, CPG,
Chemical, Hi-tech, Aero, Construction Equipment and Engineering and
Construction), Energy and Petrochemicals, Banking, Financial Services and
Insurance.
L AND T Infotech
delivers business solutions to its clients, leveraging its substantial domain
experience and depth in technologies like SAP, Oracle (including PeopleSoft/ JD
Edwards/Siebel), Microsoft, EAI and DW/BI. In addition to application
development and maintenance services (ADM), the Company offers strong
capabilities in infrastructure management (IMS), and independent verification
and validation testing (IVandV) services. The Company provides a winning edge
to clients in its areas of focus, through domain-specific solutions, sharp
technical skills, proven frameworks and pre-tested solutions, that leverage its
business-to-IT connect. L AND T Infotech has its presence globally in
OUTLOOK
The new
opportunities unfolding in the IT sector require the industry to focus more on
innovation and newer models of growth. The future will be centered on the
ecosystem created by the confluence of technologies such as virtualisation,
tele-presence and machineto- machine communication. Technologies like cloud
computing and Software as a Service (SaaS) model will drive the largest amount
of spending in the software industry over the next few years.
L AND T Infotech
has taken several initiatives to be ready for these new opportunities:
• Focus on
technology footprint expansion into Analytics, Mobile BI and DW appliances and
additional COEs for Data Architecture and DW Appliances
• Capitalise on
the stimulus package provided for IT in health insurance sector and tap the
general insurance and reinsurance market in
• Offerings for
migration and set up of enterprise cloud infrastructure, cloud based
integration services and SaaS enablement and package implementation
• Sustained
efforts to reduce dependency on
Given the improved
market conditions for IT sector and its preparedness to harness the newer
opportunities, L AND T Infotech is reasonably confident of sustaining the
growth momentum in the medium term.
B. LARSEN and TOUBRO INFOTECH GMBH (L AND T
INFOTECH GMBH): SUBSIDIARY COMPANY
L AND T Infotech
GmbH, a wholly owned subsidiary of L AND T Infotech, provides software services
in Banking Financial Services and Insurance, Manufacturing and Product
Engineering Services in
C. LARSEN and TOUBRO INFOTECH CANADA LIMITED (L AND
T INFOTECH
L AND T Infotech
D. GDA TECHNOLOGIES INC. (GDA TECH): SUBSIDIARY
COMPANY
GDA Tech, a wholly
owned subsidiary of L AND T Infotech, was acquired in 2007 to strengthen IT
outsourcing business in
During 2010-2011,
the total income of GDA Tech amounted to Rs. 300.000 Millions as against Rs.
660.000 Millions for the previous year. After considering the restructuring of
business carried out in 2010-2011, on like to like basis, the total income of
IP and CDMS at Rs. 300.000 Millions in 2010-2011 compares favourably with
revenues of Rs. 210.000 Millions from these business segments in the previous
year. Profit after tax was for 2010-2011 at Rs. 21.700 Millions as compared to
Rs. 24.900 Millions recorded in 2009-2010.
E. LARSEN and TOUBRO INFOTECH LLC (L AND T INFOTECH
LLC): SUBSIDIARY COMPANY
L AND T Infotech
LLC, a wholly owned subsidiary of L AND T Infotech, operates in the
F. L AND T INFOTECH FINANCIAL SERVICES TECHNOLOGIES
INC. (L AND T INFOTECH FS): SUBSIDIARY COMPANY
L AND T Infotech
FS was formed during 2010-2011 as a wholly owned subsidiary of L AND T
Infotech, for acquisition of transfer agency business unit from Citigroup Fund
Services in
II. FINANCIAL SERVICES
A. L AND T FINANCE HOLDINGS LIMITED (L AND T FH):
SUBSIDIARY COMPANY
OVERVIEW
L AND T FH, a
wholly owned subsidiary of L AND T, was incorporated in 2008, with a view to
consolidate L AND T’s investments in the financial services business and give a
distinct identity to the business segment. It is registered
with the Reserve
Bank of
OUTLOOK
In the coming
year, credit off-take is expected to be robust with increase in GDP and
continued focus of the Government on infrastructure development. However,
continued inflationary pressures may lead to monetary tightening, resulting in
higher interest rates and pressure on net interest margin.
C. L AND T INFRASTRUCTURE FINANCE COMPANY LIMITED
(LTIFCL): Subsidiary Company
OVERVIEW
LTIFCL, a wholly
owned subsidiary of L AND T Finance Holdings Limited, is a non-banking
financial company focused on financing of infrastructure projects, across
various sectors. LTIFCL leverages L AND T’s domain knowledge in the engineering
and construction fi elds to provide infrastructure financing solutions through
a mix of debt, sub-debt, quasi-equity and equity participation. It also offers
project advisory and loan syndication services.
OUTLOOK
The increased
focus on infrastructure investment through the public private partnership model
on the back of strong economic fundamentals would provide the required growth
impetus to LTIFCL. Notwithstanding the growing competition, LTIFCL, with its
ability to offer timely and appropriate solutions to the customer, is positive
about its growth outlook. While inflationary trends may lead to tightening of
credit and money supply, it is expected that the demand for infrastructure and
Government’s focus on the sector would provide the required drivers for
continued growth.
D. L AND T CAPITAL COMPANY LIMITED (LTCCL):
SUBSIDIARY COMPANY
OVERVIEW
LTCCL, a wholly
owned subsidiary of L AND T, is a portfolio manager registered with the
Securities and Exchange Board of India, with funds over RS. 19000.000 Millions
under its management. It is also a mutual fund distributor / advisor. LTCCL
holds and monitors a significant portion of the L AND T Group’s strategic
investments.
OUTLOOK
The Indian General
Insurance Industry has displayed an impressive performance in terms of premium
income in the year 2010-2011. Health and Motor have been the fastest growing
lines of business.
Going forward, the
growth momentum in the General Insurance Industry is expected to continue. The
Company is well positioned to exploit the growth opportunities.
III. ENGINEERING and CONSTRUCTION SERVICES DOMESTIC COMPANIES
A. L AND T-SARGENT and LUNDY LIMITED (LTSL):
SUBSIDIARY COMPANY
OVERVIEW
LTSL, a company
where L AND T has 50% stake, renders power plant engineering services to its
customers in
OUTLOOK
LTSL will leverage
the increased demand for power in the country supported by the 11th and the
12th plan capacity addition planned for
B. L AND T-CHIYODA LIMITED (LTC): ASSOCIATE COMPANY
OVERVIEW
LTC, a company
where L AND T has 50% stake, is an internationally reputed design and
engineering consultancy company for hydrocarbon industry. LTC was set up in the
year 1994 as a joint venture (JV) between Chiyoda Corporation of
C. L AND T-VALDEL ENGINEERING LIMITED (LTV):
SUBSIDIARY COMPANY
OVERVIEW
LTV, a wholly
owned subsidiary of L AND T, provides complete engineering solutions for
upstream oil and gas sector and offers design engineering services as well as
project management services globally.
D. L AND T-RAMBØLL CONSULTING ENGINEERS LIMITED
(LTR CE): ASSOCIATE COMPANY
OVERVIEW
LTR CE, a
consultancy firm where L AND T has 50% stake, was established in 1998 by L AND
T and RAMBØLL A/S of
E. SPECTRUM INFOTECH PRIVATE LIMITED (SIPL):
SUBSIDIARY COMPANY
OVERVIEW
SIPL, a wholly
owned subsidiary of L AND T, provides capabilities in defence electronics and
systems. SIPL concentrates largely on product development in embedded
solutions, control and signal processing for defence sector. It has grown from
designing and development of sub-systems to a full-fl edged production
organisation delivering sub-systems.
F. L AND T SHIPBUILDING LIMITED (LTSB):
SUBSIDIARYCOMPANY
OVERVIEW
L AND T has
identified shipbuilding as a major thrust area in the heavy engineering sector.
LTSB, a wholly owned subsidiary of L AND T, has been formed for development and
operation of a
G. L AND T SPECIAL STEEL AND HEAVY FORGINGS PRIVATE
LIMITED (LTSHF): SUBSIDIARY COMPANY
OVERVIEW
LTSHF is a joint
venture between L AND T and Nuclear Power Corporation of India Limited (NPCIL)
with L AND T holding majority equity stake of 74%. The JV, formed in July 2009,
is in the process of setting up a fully integrated special steel and heavy
forgings manufacturing facility at Hazira,
H. L AND T SAPURA OFFSHORE PRIVATE LIMITED (LTSOPL)
AND L AND T SAPURA SHIPPING PRIVATE LIMITED (LTSSPL): SUBSIDIARY COMPANIES
OVERVIEW
LTSOPL and LTSSPL
are joint ventures between L AND T and Nautical Power Pte Limited, Singapore, a
wholly owned subsidiary of Sapura Crest Petroleum Bhd, Malaysia for operation
of a Heavy Lift cum Pipe Lay Vessel (HLPV) and installation of offshore platforms
and laying of pipes and cables under the sea for the Hydrocarbon Upstream
Industry. The JV companies were formed in September 2010 with L AND T holding
majority of 60% equity stake in both the companies. Heavy Lift-cum-Pipe Lay
Vessel was commissioned during the year 2010-2011.
INTERNATIONAL COMPANIES
I. LARSEN and TOUBRO ELECTROMECH LLC (L AND T
Electromech): Subsidiary Company
OVERVIEW
L AND T
Electromech is a joint venture between L AND T and The Zubair Corporation, Oman
(TZC). L AND T, through its wholly owned subsidiary L AND T International FZE
holds 65% and TZC holds 35% in the Company. The Company is a leading Civil,
Mechanical and Electrical and Instrumentation Construction Company in
OUTLOOK
The Company has
established itself as one of the major construction companies providing
composite construction services in Civil, Mechanical, Electrical and
Instrumentation (CMEI) works in
J. L AND T MODULAR FABRICATION YARD
OVERVIEW
LTMFYL is a joint
venture company between Zubair Corporation and L AND T International FZE
established in Sultanate of Oman. L AND T, through its wholly owned subsidiary
L AND T International FZE, holds 65% in the Company. The Company has developed
core competencies in manufacture of high end equipment like Jack-up Drill Rigs,
Floating Production Storage and Offloading (FPSO) Vessels, Integrated Decks,
Skid Mounted Equipment, Onshore Process Modules, in addition to fabrication of
large size offshore platforms.
K. LARSEN and TOUBRO ATCO SAUDI COMPANY LLC (L AND
T ATCO): SUBSIDIARY COMPANY
OVERVIEW
L AND T ATCO is a
strategic joint venture of L AND T International FZE and Abdulrahman Ali Al
-Turki Group of Companies (ATCO) Dammam, a renowned Saudi conglomerate. L AND T
ATCO was incorporated as an In - Kingdom Company in 2007 to take advantage of
the electro-mechanical construction opportunities arising in the areas of Oil
and Gas, Petrochemicals, Power and Water related projects in Saudi Arabia. L
AND T, through its wholly owned subsidiary L AND T International FZE, holds 49%
in the Company.
OUTLOOK
Specific tie-ups
with prominent EPC players in the Refinery and Petrochemical sector and
demonstration of on-ground resources would open up opportunities for the
Company. The recent pre-qualification with large and most prestigious customer
in the Kingdom and pre bid alliance with certain leading EPC players will
benefit the Company to gain competitive strength and obtain new project orders.
L. LARSEN and TOUBRO (
OVERVIEW
LTO, a joint
venture with Zubair Corporation LLC, provides engineering, construction and
contracting services for the last 15 years in Sultanate of Oman. Its track
record in civil projects has been excellent and continues to enjoy customer
preference in the country. L AND T, through its wholly owned subsidiary L AND T
International FZE, holds 65% in the Company.
OUTLOOK
The economy of
M. LARSEN and TOUBRO KUWAIT CONSTRUCTION GENERAL
CONTRACTING COMPANY WLL (LTKC): SUBSIDIARY COMPANY
OVERVIEW
LTKC is a
strategic joint venture between M/s Bader Almulla and Brothers Company WLL, a
company in
IV. POWER EQUIPMENT MANUFACTURING A. L AND T-MHI
TURBINE GENERATORS PRIVATE LIMITED: SUBSIDIARY COMPANY
OVERVIEW
L AND T-MHI
Turbine Generators Private Limited is a joint venture with Mitsubishi Heavy
Industries, Japan (MHI) to manufacture super critical steam turbines and
generators (STG package). L AND T holds majority share of 51% of the equity in
the Company to leverage on its EPC capabilities in the emerging mega power
sector. The manufacturing facility at Hazira,
Outlook for Power
Equipment Manufacturing The Government’s focus on setting up substantial power
generation capacity in the country is the primary growth driver for L AND T’s
Power Equipment Manufacturing subsidiaries viz. L AND T-MHI Boiler and L AND
TMHI Turbine which manufactures super-critical energy efficient and environment
friendly high-end power equipment. While super-critical technology offers
distinct advantage to these subsidiaries, achieving cost competitiveness
presents major challenges in the wake of competition from Chinese equipment
manufacturers. The Companies are confident of meeting the market requirements
and become more cost competitive in the coming years.
V. POWER DEVELOPMENT PROJECTS L AND T POWER
DEVELOPMENT LIMITED (L AND T PDL): SUBSIDIARY COMPANY
OVERVIEW
L AND T PDL,
incorporated in September 2007, is a wholly owned subsidiary of L AND T. The
Company has been formed as a power development arm of L AND T with the
objective of developing, operating and maintaining power generation projects of
all types namely thermal, hydel, nuclear and other renewable form of energy
including captive and co-generation power plants.
OUTLOOK
Government’s policy
to encourage substantial capacity addition provides significant opportunities
for private power developers. Several large projects (including Ultra Mega
Power Projects and Case-2 Bids) are in the pipeline and shall soon come up for
development by private players. Apart from this, private players are also
developing merchant power plants considering the continuing peak deficit
scenario in the Power sector in
VI. INFRASTRUCTURE AND PROPERTY DEVELOPMENT
PROJECTS
A. L AND T INFRASTRUCTURE DEVELOPMENT PROJECTS
LIMITED (L AND TIDPL): SUBSIDIARY COMPANY
OVERVIEW
L AND TIDPL has
been set up as an infrastructure development arm of the Group, where L AND T
has 97.65% stake. L AND TIDPL has over a period of time, built up capabilities
in identifying and developing infrastructure projects, operation and
maintenance of these projects and providing advisory services relating to
financing and engineering of the projects.
L AND TIDPL
portfolio is well diversified with a mix of projects under development across
various sectors such as roads and bridges, ports and urban infrastructure.
The Company has
during the year incorporated a special purpose vehicle L AND T Metro Rail (
The total length
of the three elevated corridors is 71.16 KM with 66 stations. The total
concession period is 35 years including a construction period of 5 years with a
provision to extend for a further period of 25 years. The financial closure for
Hyderabad Metro project has been achieved in March 2011 in a record time of 6
months from the award of the project. It is the largest fund tie-up in
During the year in
roads and bridges space, the Company also achieved fi nancial closure for two
road projects viz., L AND T Devihalli Hassan Tollway Limited and L AND T
Krishnagiri Walajahpet Tollway Limited. Going forward, the Company is poised
for quantum growth and aims to attain a position of leadership in creating safe
and sustainable infrastructure.
VII. ELECTRICAL and ELECTRONICS
A. TAMCO GROUP OF COMPANIES: SUBSIDIARY COMPANIES
OVERVIEW
TAMCO Group
companies operating from
TAMCO Malaysia has
strengthened its brand equity for Medium Voltage (MV) switchgear both in
domestic and overseas market. It has a wide market share in
OUTLOOK
Malaysian economy
shows signs of recovery and the GDP is expected to grow at 6%. The market is
also expanding in
TAMCO products
have been introduced in the Indian market. Localisation of its product range
coupled with L AND T’s low voltage range would provide ample market potential.
B. L AND T ELECTRICALS SAUDI ARABIA COMPANY
LIMITED, LLC (LTESA): SUBSIDIARY COMPANY
OVERVIEW
LTESA is a joint
venture between L AND T and Yusuf Bin Ahmed Kanoo Group, KSA with its
headquarters at Dammam in the Eastern
OUTLOOK
The Oil and Gas,
Utility and Infrastructure segments are showing signs of revival in
D. LARSEN and TOUBRO (
OVERVIEW
LTW is a wholly
owned subsidiary of L AND T International FZE. It is located at
OUTLOOK
VIII. MACHINERY and INDUSTRIAL PRODUCTS
DOMESTIC COMPANIES
A. TRACTOR ENGINEERS LIMITED (TENGL) : SUBSIDIARY
COMPANY
OVERVIEW
TENGL is a wholly
owned subsidiary of L AND T principally engaged in manufacture of undercarriage
systems for excavators, crawler tractors, bull dozers etc.
OUTLOOK
Indian Hydraulic
Excavator (HEX) market is showing remarkable improvements. In the year
2010-2011, total number of Hydraulic Excavators sold was approx. 12,355 nos. as
against 9,882 in 2009-2010. In the year 2011-2012 the Company expects to
maintain its market share so as to achieve healthy growth in the years to come.
B. L AND T PLASTICS MACHINERY LIMITED (LTPML):
SUBSIDIARY COMPANY
OVERVIEW
LTPML is a wholly
owned subsidiary of L AND T. The Company is in the business of manufacture of
Injection Moulding Machines (IMMs) for the plastics industry. The Company’s
products find applications in diverse industries like automobiles, electrical
goods, packaging, personal care products, writing instruments and white goods.
OUTLOOK
The Company is
expected to continue its growth momentum during the year 2011-2012. The demand
for plastic products is also expected to grow in the near future leading to
better prospects for the Company’s machines in the domestic market.
C. EWAC ALLOYS LIMITED (EWAC): Subsidiary Company
OVERVIEW
EWAC was a 50:50
joint venture with L AND T and Messer Eutectic + Castolin Group of
OUTLOOK
With the positive
outlook on the industry and Indian economy, EWAC expects to continue its good
performance in the year 2011-2012.
D. L AND T KOMATSU LIMITED (LTK): ASSOCIATE COMPANY
OVERVIEW
LTK is a 50:50
joint venture between L AND T and Komatsu Asia Pacific Pte. Limited,
OUTLOOK
With the Indian
economy on growth path, the outlook for Hydraulic Excavator market is very
positive. Based on current economic activity, the market is expected to grow
significantly on the back of infrastructure projects taking off in 2011-2012.
E. AUDCO INDIA LIMITED (AIL): ASSOCIATE COMPANY
OVERVIEW
AIL is a joint
venture with equal equity holding by L AND T and Flowserve Corporation,
AIL Valves are
approved by international Oil majors such as Shell, Chevron, EXXON, Aramco,
PDO, ADCO, which helps in participating in their worldwide projects. Apart from
Indian Oil majors and various other industrial segment approvals, AIL also has
a unique advantage of Indian Nuclear Industry approval.
OUTLOOK
With a healthy
Order Book position as on March 31, 2011, AIL expects a satisfactory
performance in the year ahead.
F. L AND T KOBELCO MACHINERY PRIVATE
LIMITED:SUBSIDIARY COMPANY
OVERVIEW
The Company has
been incorporated as a 51:49 joint venture between L AND T and Kobe Steel,
Limited of
OUTLOOK
The demand for the
rubber processing machines is dependent on the fortunes of the Tyre Industry,
which in turn, is dependent on automotive and mobile equipment markets. Both
these markets are currently growing at over 20% per annum and most tyre
manufacturers are setting up new tyre manufacturing facilities, thus
facilitating demand for mixers and TSRs.
With limited
players in the market producing these machines, the growth opportunities for
the Company are good.
INTERNATIONAL COMPANIES
G. LARSEN and TOUBRO (
OVERVIEW
LT QINGDAO is a
wholly owned subsidiary of L AND T International FZE, set up in Jiaonan,
Qingdao, People‘s Republic of China. LT QINGDAO develops and supplies Tyre
Curing Presses and other Rubber Processing Machinery on par with the quality of
products being supplied by L AND T to its global clients.
OUTLOOK
The Company has a
healthy order book at the end of the year and has plans to further enhance
volumes in the year 2011.
H. LARSEN and TOUBRO (
OVERVIEW
LTJVCL is a wholly
owned subsidiary of L AND T International FZE, set up in Yancheng City,
People‘s Republic of China. LTJVCL manufactures a range of Valves for global
markets.
OUTLOOK
With the
accreditation in the prospects of refining sector, backed by healthy order book
of over Rs. 500.000 Millions, the outlook for the Company is positive.
I. LARSEN and TOUBRO LLC,
OVERVIEW
L AND T LLC, a
wholly owned subsidiary of L AND T, is based in
IX. INVESTMENTS IN OVERSEAS SandA COMPANIES LARSEN
and TOUBRO INTERNATIONAL FZE (LTIFZE):
SUBSIDIARY COMPANY
OVERVIEW
LTIFZE, a wholly
owned subsidiary of L AND T, has been incorporated in the Hamriyah Free Zone,
Sharjah as a Free Zone Establishment (FZE). LTIFZE is a holding company of most
of L AND T‘s investments in overseas companies. The Company is also providing support
to L AND T and its group companies in the Middle and
CONTINGENT
LIABILITIES
(Rs.
In millions)
|
Particulars |
As on 31.03.2011 |
As on 31.03.2010 |
|
a)
Claims against the
company not acknowledged as debts |
2634.700 |
1582.100 |
|
b)
Sales tax liabilities that
may arise in respect of matters in
appeal |
1943.100 |
1587.800 |
|
b)
Excise duty / service
tax liability that may arise in respect of matters in appeal / challenged by
the company in writ |
119.500 |
102.800 |
|
c)
Income tax liability (including
penalty) that may arise in respect of which the company is in appeal |
19.500 |
84.500 |
|
c)
Corporate guarantees
given on behalf of subsidiary companies. |
7756.600 |
8053.800 |
Notes
- The company does not expect any reimbursement in respect of the
above contingent liabilities.
- It is not practicable to estimate the timing of cash outflows, if
any, in respect of matters at (a) to (d) above pending resolution of the
arbitration / appellate proceedings.
- In respect of matters at (e), the cash outflow, if any, could
generally occur during occur during the next three years, being the period
over which the validity of the guarantees extends except in a few cases
where the cash flows, if any, could occur any time during the subsistence
of the borrowing to which the guarantee relate.
FIXED ASSETS
·
Land – freehold
·
Ships
·
Buildings
·
Railway Sidings
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Aircraft
PRESS RELEASE:
L&T
Construction bags New Orders
Worth Rs. 797 crore
Mumbai, August 25, 2011: L&T Construction has secured yet
another order worth Rs. 797 crore in the Building & Factories segment
during the second quarter of FY2012.
A major order worth Rs. 797 crore
has been secured from a leading developer for the mixed use construction
comprising predominantly of residential, including retail and commercial
developments at Mumbai.
The above order further enhance the
order book of the company which has already secured major design & build
contracts in Airports, IT Parks, commercial and residential space.
Back ground:
Larsen & Toubro is a USD 11.7
billion technology, engineering and construction group, with global operations.
It is one of the largest and most respected companies in
L AND T bags Rs 1210 crore
single largest electrical order in
(Published
Date :Wed 20 Jul 2011)
Larsen
and Toubro’s (L AND T) Power Transmission and Distribution IC has bagged a
major international EPC order valued at Rs 1210 crore (269 Mn USD / 978 Mn QAR)
from Qatar General Electricity and Water Corporation (KAHRAMAA) for Supply and
Construction of thirteen extra high voltage (EHV) Substations in Qatar.
This order, part of Qatar Power Transmission System Expansion – Phase 10 (Stage
I), is the single largest order for L AND T’s power transmission and
distribution (PTandD) operations in GCC Countries and the job was secured
against stiff international competition. The project will be completed in a
span of 18-26 months.
The scope includes gas insulated switchgear of 220kV, 132kV and 66kV,
associated cabling including external EHV cable diversion works, power
transformers, 11kV air insulated switchgear, protection and substation
automation system including DC system and auxiliaries. The contract encompasses
design and construction of civil buildings with a complete set of utilities
such as air conditioning, fire protection, lighting systems and much more.
L AND T successfully completed six 66kV Substations for KAHRAMAA recently and
this order reinforces L AND T’s operational competency and customer goodwill
garnered in
MR. S. N. SUBRAHMANYAN TO BE ELEVATED TO L
AND T BOARD
Mumbai, April 11, 2011: The Board of
Directors of Larsen and Toubro (L AND T) approved the elevation of Mr. S.N.
Subrahmanyan as a Whole-time Director, with effect from July 1, 2011. Mr.
Subrahmanyan is currently Sr. Vice President and Head – Buildings and Factories
and Infrastructure Independent Companies. This induction is a part of L AND T’s
succession plan.
The construction
businesses of L AND T are currently being headed by Mr. K.V. Rangaswami,
Whole-time Director and President (Construction), who will retire from the
Board of the Company in June 2011. Mr. S.N. Subrahmanyan, 51, is a civil
engineer with post graduate qualifications in business management. He joined L
AND T in 1984 starting off as project planning engineer, and was soon
handpicked for senior responsibilities. Mr. Subrahmanyan’s notable achievements
include playing a pivotal role in securing and managing EPC contracts for
construction of four major international airports in
L AND T METRO RAIL (
A consortium of banks led by State Bank of
A total of ten banks have participated in
the funding for this prestigious project. Leading banks which will be
associated with the project, in addition to State Bank of
Project Background
The Hyderabad Metro Project was announced by
the Government of Andhra Pradesh (GoAP) on PPP mode under the Design, Build,
Finance, Operate and Transfer (DBFOT) basis and the bidding process was as per
the guidelines specified by the Government of India (Ministry of Urban
Development, Planning Commission and Ministry of Finance). L AND T emerged the
lowest bidder in the face of stiff competition (the bid winning criteria was
Minimum Grant quoted by the bidder) and signed the Concession Agreement through
its SPV, L AND T Metro Rail (Hyderabad) Limited, with the Government of Andhra
Pradesh on September 4, 2010.
L AND T Metro Rail (
Project Details
Hyderabad Metro Project is one of the most
prestigious and the biggest PPP contract in the Metro Sector in the world
involving the construction of 71.16 km of elevated metro rail in three
corridors criss-crossing the city of
This project will use state-of-the-art
technology which includes the latest metro cars, signaling and communication
system leading to automatic train operations. The automatic fare collection
system will provide a user-friendly facility to use and share the ticketing
system with the other modes of transport over a period.
The project allows the right to develop 18.5
million sq.ft. of Transit Oriented Development. Once implemented,
Project Benefits
With the ever increasing population
(population increased from 4.48 million in 1991 to 6.38 million in 2001 and is
currently estimated to be around 9 million in the city) and the number of
registered private vehicles (22.8 lakh in 2007 which increased to 28 lakh at
present showing a growth of 7% per annum), commuting is becoming increasingly
unsafe and time consuming. The metro system being planned for the city can
carry the same amount of traffic as 7 lanes of bus traffic or 25 lanes of
private motor cars and is more reliable, comfortable and safer than road-based
systems. It will reduce journey time by anything between 50% to 75%. Since this
project will help in reducing carbon emitting cars and public transport buses
along the metro corridor by running electric trains, it will be environmentally
friendly and provide the citizens with a world class commuting experience.
The project is also expected to trigger
mammoth economic activity in and around the city and provide employment to
about 50,000 people including 1200 to 1500 technical professionals during
construction.
Current Status of Project
Pre-construction works for the project has
already commenced. Soil testing and topographical surveys have been completed
in most locations along the alignment and conceptual engineering is nearing
completion. Conceptual engineering is being undertaken by AECOM-Feedback
Venture consortium. AECOM, the lead member of the consortium, is the industry
leader in design of Mass Rapid Transit Systems and is ranked as the No. 1
design firm in ‘The Top 500 Design Firms as per ENR (Engineering Review) 2010’.
The alignment of the corridors of the
project is being finalised in a manner that the heritage structures of the city
are least affected.
Louis Berger Consulting Private Limited, a
major US-based consultancy company with wide experience in the metro rail
sector, has been appointed by GoAP through Hyderabad Metro Rail Limited as the
Independent Engineer for the project after a rigorous competitive bidding
process. The Independent Engineer shall oversee design and execution of the
project so that it meets the technical specifications, key performance
indicators and safety standards as laid down by the concession agreement.
About the Developer
L AND T Metro Rail (Hyderabad) Limited is a
subsidiary of L AND T Infrastructure Development Projects, an Infrastructure
Development arm of L AND T. L AND T is a USD9.8 billion technology, engineering
and construction company with global operations. It is one of the largest and
most respected companies in the private sector, known for its project
management and execution capabilities of large infrastructure projects in the
domestic and international arena.
A strong
customer-focused approach, the constant quest for top-class technology and
quality, backed with a commitment to nation building have enabled L AND T to
attain and sustain a leadership position in its major lines of business over
the past seven decades and become a premier institution in engineering and
construction.
L AND T DIVESTS STAKE IN L AND
T-CASE JV
Mumbai, March 31, 2011: Larsen
and Toubro (L AND T) has sold its stake in L AND T-CASE Equipment Private
Limited to it’s JV partner CNH
The company, which employs more
than 600 people, operates a production facility in Pithampur in Madhya Pradesh
and a distribution network of 56 dealers and 144 outlets. The Pithampur
facility currently builds backhoe loaders and vibratory compactors; the complex
is spread over 40 acres and occupies over 28,000 sq.m. of covered area.
Commenting on the development,
Mr. J P Nayak, Member of L AND T Board and President, said, “The decision to
exit the JV is part of the ongoing portfolio review and streamlining process.
They have an excellent relationship with the partner, and wish them all success
in
Mr. Harold Boyanovsky, President
and CEO CNH Global NV said, “This is an important step in the long term
commitment to consolidate the construction equipment business in
Back ground:
Larsen and Toubro is a USD
9.8 billion technology, engineering and construction group, with global
operations. It is one of the largest and most respected companies in
L AND T BECOMES FIRST INDIAN
VALVE MANUFACTURER TO SECURE ASME ‘N’ AND ‘NPT’ CERTIFICATION
Mumbai, February 23, 2011: Larsen
and Toubro (L AND T) became the first Indian manufacturer of industrial valves
to receive the coveted ‘N’ and ‘NPT’ stamp from American Society of Mechanical
Engineers (ASME). The valves facility in
L AND T, a key supplier of
industrial valves to the global majors in oil and gas and power, has a strong
presence in the Indian nuclear power industry. Valves supplied by L AND T are
in operation in nuclear installations across the country as well as major thermal
power plants.
The state-of-the-art valves
plant is a part of L AND T’s high-tech manufacturing hub in
The product range includes
high-pressure valves in ASME class up to 4500. The plant boasts the latest in
manufacturing technology and has in-house capability to carry out high-pressure
high-temperature endurance tests.
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist
to suggest that subject is or was the subject of any formal or informal
allegations, prosecutions or other official proceeding for making any
prohibited payments or other improper payments to government officials for
engaging in prohibited transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
Our market survey revealed that the amount
of compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as
part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not
known to have contravened any existing local laws, regulations or policies that
prohibit, restrict or otherwise affect the terms and conditions that could be
included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.22 |
|
|
1 |
Rs.76.06 |
|
Euro |
1 |
Rs.65.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.