1. Summary Information
|
|
|
Country |
India |
|
Company Name |
LARSEN
AND TOUBRO LIMITED |
Principal Name 1 |
Mr. A. M. Naik |
|
Status |
Excellent |
Principal Name 2 |
Mr. K. Venkataramanan |
|
|
|
Registration # |
11-004768 |
|
Street Address |
L and T House, Ballard Estate, |
||
|
Established Date |
07.02.1946 |
SIC Code |
-- |
|
Telephone# |
91-22-22618181 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-22-22620223 |
Business Style 2 |
Sellers |
|
Homepage |
Product Name 1 |
Bulldozers |
|
|
# of employees |
22922 (Approximately) |
Product Name 2 |
Dumpers |
|
Paid up capital |
Rs.224,800,000/- |
Product Name 3 |
Scrappers |
|
Shareholders |
Public
Shareholding – 100 % |
Banking |
|
|
Public Limited Corp. |
YES |
Business Period |
66 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Aa
(71) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint
Venture |
-- |
Chennai Metro Rail Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
416,807,800,000 |
Current Liabilities |
300,540,700,000 |
|
Inventories |
17,766,200,000 |
Long-term Liabilities |
98,957,700,000 |
|
Fixed Assets |
76,661,300,000 |
Other Liabilities |
25,201,000,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
424,699,400,000 |
|
Invest& other Assets |
165,694,300,000 |
Retained Earnings |
251,005,400,000 |
|
|
|
Net Worth |
252,230,200,000 |
|
Total Assets |
676,929,600,000 |
Total Liab. & Equity |
676,929,600,000 |
|
Total Assets (Previous Year) |
571,100,000,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
531,705,200,000 |
Net Profit |
44,565,000,000 |
|
Sales(Previous yr) |
439,058,700,000 |
Net Profit(Prev.yr) |
39,578,900,000 |
MIRA
INFORM REPORT
|
Your Ref. No.: |
135-100610-14-020(20120903509) |
|
Report No. : |
192514 |
|
Report Date : |
04.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
LARSEN AND TOUBRO LIMITED |
|
|
|
|
Registered
Office : |
L and T House,
Ballard Estate, Mumbai – 400001, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
07.02.1946 |
|
|
|
|
Com. Reg. No.: |
11-004768 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1224.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1946PLC004768 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKL00699G |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturers and Sellers of Earthmoving Machinery including
Bulldozers, Dumpers, Scrappers, Loaders, Shovels, Vibratory Compactors and
Drag Lines. |
|
|
|
|
No. of Employees
: |
22922 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1000000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AAA (Long Term Rating) |
|
Rating Explanation |
Having highest degree of safety regarding timely servicing of
financial obligation it carry lowest credit risk. |
|
Date |
28.03.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
L and T House,
Ballard Estate, |
|
Tel. No.: |
91-22-22618181 /
22618182 / 22685656 / 67525656 |
|
Fax No.: |
91-22-22620223 / 22617480
/ 22685893 / 67525858 / 67525893/ 55525858 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office
1: |
C Block, Gate No. 1, L and T Powai Campus, |
|
Tel. No.: |
91-22-67052589 / 67052930 |
|
Fax No.: |
91-22-67051832 |
|
|
|
|
Corporate Office
2: |
Kiadb Industrial Area, Hebbal Hootagalli, |
|
Tel No.: |
91-821-2405331 |
|
|
|
|
Corporate Office
3: |
Off |
|
|
|
|
Headquarter/ Holck-Larsen and Engineering
Design and Research Centre- Chennai : |
Mount |
|
Tel No.: |
91-44-2232 6348 / 22526000 / 22528000 / 22528080 |
|
Fax No.: |
91-44-2234 2317/ 22493317 / 22526065 / 22493888 |
|
E mail: |
|
|
|
|
|
EDRC Centre : |
|
|
Tel No.: |
91-33-22882601 |
|
Fax No.: |
91-33-22881225 |
|
E mail: |
|
|
|
|
|
EDRC – Kolkata: |
DLF IT Park, Premises # 08, Block – AF, 2nd Floor, Tower-C, Newton,
Rajarhat, Kolkata-700156, West Bengal, India |
|
Tel No.: |
91-33-44008700 |
|
Fax No.: |
91-33-44005385 |
|
|
|
|
Division : |
ECC Division, Mial Project Office – North Block II, 6th Floor, Gate
No. 1, Powai – 400072, |
|
|
|
|
Factory 1 : |
TLT Works, Plot No. 158-B, Sector III, Pithampur, Dhar District,
Madhya Pradesh 454 774, |
|
Tel. No.: |
91-7292-256317/ 256431 |
|
Fax No.: |
91-7292-256316 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
TLT Works, |
|
Tel. No.: |
91-413-2672500 |
|
Fax No.: |
91-413-2677727 |
|
E-Mail : |
|
|
|
|
|
Factory 3 : |
167, |
|
Tel. No.: |
91-4112-27248383, 93 and 94 |
|
Fax No.: |
91-4112-27248383 and 290 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Also located at
: ·
·
Kandla ·
Vadodara ·
Ankleshwar ·
Hazira ·
Jafrabad ·
Kovayya ·
Nashik ·
Pune ·
Ahmednagar ·
Ratnagiri ·
Tadipatri ·
·
·
Awarpur ·
Jharsuguda ·
Kansbahal ·
Ranoli ( ·
·
Haldia |
|
|
|
|
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 ·
|
|
|
|
|
Overseas Offices : |
Located at: ·
·
·
Sultanate of ·
·
·
·
·
·
·
·
·
Sharjah ·
·
·
·
·
·
·
·
·
·
·
|
|
|
|
|
Area Offices : |
Located at: ·
Ahmedabad ·
·
·
Chennai ·
·
Kolkata ·
·
Pune ·
·
|
|
|
|
|
Branches : |
Located at : ·
Jaipur ·
·
Guwahati ·
·
Vadodara ·
·
·
·
·
Guwahati ·
·
·
·
·
·
|
|
|
|
|
Railway Business
Unit: |
12/4, |
|
Tel No.: |
91-129-4291000 / 4291651 / 4291766 |
|
Fax No.: |
91-129-4291650 / 4291303 |
|
Email: |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. A. M. Naik |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. K. Venkataramanan |
|
Designation : |
Chief Executive Officer and Managing
Director |
|
|
|
|
Name : |
Mr. V. K. Magapu |
|
Designation : |
Whole-time Director and President (IT,
Engineering Services and Corporate Initiatives) |
|
|
|
|
Name : |
Mr. M. V. Kotwal |
|
Designation : |
Whole-time Director and President (Heavy Engineering) |
|
|
|
|
Name : |
Mr. Ravi Uppal |
|
Designation : |
Whole-time Director and President (Power) |
|
|
|
|
Name : |
Mr. S. N. Subrahmanyan |
|
Designation : |
Whole-time Director and Senior Executive Vice President
(Infrastructure and Construction) |
|
|
|
|
Name : |
Mr. R. Shankar Raman |
|
Designation : |
Whole-time Director and Chief Financial
Officer |
|
|
|
|
Name : |
Mr. Shailendra Roy |
|
Designation : |
Whole-time Director and Senior Executive Vice President (Power
Development and Corporate Affairs) |
|
|
|
|
Name : |
Mr. S. Rajgopal |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. S. N. Talwar |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. M. M. Chitale |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Thomas Mathew T. |
|
Designation : |
Nominee — LIC |
|
|
|
|
Name : |
Mr. N. Mohan Raj |
|
Designation : |
Nominee — LIC |
|
|
|
|
Name : |
Mr. Subodh Bhargava |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. A. K. Jain |
|
Designation : |
Nominee – SUUTI |
|
|
|
|
Name : |
Mr. J. S. Bindra |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr.
N. Hariharan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholders
|
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
92,007,147 |
15.51 |
|
|
111,948,982 |
18.87 |
|
|
31,411,621 |
5.29 |
|
|
86,223,546 |
14.53 |
|
|
17,354 |
- |
|
|
17,354 |
- |
|
|
321,608,650 |
54.21 |
|
|
|
|
|
|
43,575,759 |
7.34 |
|
|
|
|
|
|
137,144,173 |
23.12 |
|
|
8,107,432 |
1.37 |
|
|
82,844,094 |
13.96 |
|
|
258,888 |
0.04 |
|
|
5,337,458 |
0.90 |
|
|
74,404,116 |
12.54 |
|
|
2,841,344 |
0.48 |
|
|
2,288 |
- |
|
|
271,671,458 |
45.79 |
|
Total Public shareholding (B) |
593,280,108 |
100.00 |
|
Total (A)+(B) |
593,280,108 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
19,499,353 |
- |
|
|
19,499,353 |
- |
|
Total (A)+(B)+(C) |
612,779,461 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Sellers of Earthmoving Machinery including
Bulldozers, Dumpers, Scrappers, Loaders, Shovels, Vibratory Compactors and
Drag Lines. |
||||||||||
|
|
|
||||||||||
|
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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|
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|
Bankers : |
·
State
Bank of ·
Bank
of ·
Central
Bank of India, Mumbai, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
Facilities : |
(Rs. in Millions)
|
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Auditors : |
|
|
Name : |
Sharp and Tannan Chartered
Accountants |
|
|
|
|
Solicitors: |
Manilal Kher Ambalal and Company |
|
|
|
|
Related Party: |
·
Tractor Engineers Limited - Wholly owned
Subsidiary ·
Bhilai Power Supply Company Limited - Subsidiary* ·
L and T-Sargent and Lundy Limited - Subsidiary* ·
Spectrum Infotech Private Limited - Wholly owned
Subsidiary ·
L and T-Valdel Engineering Limited - Wholly owned
Subsidiary ·
L and T Shipbuilding Limited - Wholly owned
Subsidiary ·
L and T Electricals and Automation Limited -
Wholly owned Subsidiary ·
HI Tech Rock Products and Aggregates Limited -
Wholly owned Subsidiary ·
L and T Seawoods Private Limited - Wholly owned
Subsidiary ·
L and T-Gulf Private Limited - Subsidiary* ·
L and T - MHI Boilers Private Limited –
Subsidiary* ·
L and T - MHI Turbine Generators Private Limited
- Subsidiary* ·
Raykal Aluminium Company Private Limited -
Subsidiary* ·
L and T Natural Resources Limited - Wholly owned
Subsidiary ·
L and T Plastics Machinery Limited - Wholly owned
Subsidiary ·
L and T Technologies Limited - Wholly owned
Subsidiary ·
L and T Special Steels and Heavy Forgings Private
Limited - Subsidiary* ·
PNG Tollway Limited - Subsidiary* ·
L and T Rajkot - Vadinar Tollway Limited -
Subsidiary of L and T Infrastructure Development Projects Limited # ·
Kesun Iron and Steel Company Private Limited -
Subsidiary* ·
L and T Howden Private Limited - Subsidiary* ·
L and T Solar Limited - Wholly owned Subsidiary ·
L and T Sapura Shipping Private Limited -
Subsidiary* ·
L and T Sapura Offshore Private Limited -
Subsidiary* ·
L and T PowerGen Limited - Wholly owned
Subsidiary ·
Ewac Alloys Limited - Wholly owned Subsidiary ·
L and T Kobelco Machinery Private Limited -
Subsidiary* ·
L and T Infra and Property Development Private
Limited $$ - Wholly owned Subsidiary ·
L and T Realty Limited (formerly known as LandT
Realty Private Limited) - Wholly owned Subsidiary ·
L and T Asian Realty Project LLP - Subsidiary of
L and T Realty Limited ·
L and T Parel Project LLP - Wholly owned
Subsidiary of L and T Realty Limited ·
Chennai Vision Developers Private Limited - Wholly
owned Subsidiary of L and T Realty Limited ·
L and T Urban Infrastructure Limited - Wholly owned Subsidiary of Land T Realty Limited ·
L and T South City Projects Limited - Subsidiary
of L and T Urban Infrastructure Limited # ·
L and T Siruseri Property Developers Limited -
Subsidiary of L and T South City Projects Limited ·
L and T Vision Ventures Limited - Subsidiary of L
and T Urban Infrastructure Limited # ·
L and T Tech Park Limited - Subsidiary of L and T
Urban Infrastructure Limited # ·
L and T Bangalore Airport Hotel Limited -
Subsidiary of L and T Urban Infrastructure Limited # ·
CSJ Infrastructure Private Limited - Subsidiary of L and T Urban
Infrastructure Limited # ·
L and T Arun Excello Commercial Projects Private
Limited - Subsidiary of L and T Urban Infrastructure Limited # ·
L and T Arun Excello IT SEZ Private Limited -
Subsidiary of LandT Urban Infrastructure Limited # ·
L and T Power Limited - Subsidiary* ·
L and T Cassidian Limited - Subsidiary* ·
L and T General Insurance Company Limited -
Wholly owned Subsidiary ·
L and T Aviation Services Private Limited -
Wholly owned Subsidiary ·
L and T Infocity Limited - Subsidiary* ·
L and T Hitech City Limited - Subsidiary of L and
T Infocity Limited # ·
Hyderabad International Trade Expositions Limited
- Subsidiary of L and T Infocity Limited # ·
Larsen and Toubro Infotech Limited - Wholly owned
Subsidiary ·
GDA Technologies Limited - Wholly owned
Subsidiary of GDA Technologies Inc ·
L and T Finance Holdings Limited - Subsidiary* ·
L and T Finance Limited - Subsidiary of L and T
Finance Holdings Limited # ·
L and T Investment Management Limited -
Subsidiary of L and T Finance Limited # ·
L and T Mutual Fund Trustee Limited - Subsidiary
of L and T Finance Limited # ·
L and T FinCorp Limited (formerly known as India
Infrastructure Developers Limited) - Wholly owned Subsidiary of L and T
Finance Holdings Limited # ·
L and T Infrastructure Finance Company Limited -
Wholly owned Subsidiary of L and T Finance Holdings Limited # ·
L and T Infra Investment Partners Advisory
Private Limited - Wholly owned Subsidiary of L and T Finance Holdings Limited
# ·
L and T Infra Investment Partners Trustee Private
Limited - Wholly owned Subsidiary of L and T Infrastructure Finance Company
Limited # ·
L and T Unnati Finance Limited - Wholly owned Subsidiary
of L and T Finance Holdings Limited # ·
L and T Access Financial Advisory Services
Private Limited - Wholly owned Subsidiary of L and T Finance Holdings Limited
# ·
L and T Capital Company Limited - Wholly owned
Subsidiary ·
L and T Trustee Company Private Limited - Wholly
owned Subsidiary of L and T Capital Company Limited ·
L and T Power Development Limited - Wholly owned
Subsidiary ·
L and T Uttaranchal Hydropower Limited - Wholly
owned Subsidiary of L and T Power Development Limited ·
L and T Arunachal Hydropower Limited - Wholly
owned Subsidiary of L and T Power Development Limited ·
L and T Himachal Hydropower Limited - Wholly
owned Subsidiary of L and T Power Development Limited ·
Nabha Power Limited - Wholly owned Subsidiary of
L and T Power Development Limited ·
L and T Infrastructure Development Projects
Limited - Subsidiary * ·
L and T Panipat Elevated Corridor Limited -
Wholly owned Subsidiary of L and T Infrastructure Development Projects
Limited # ·
Narmada Infrastructure Construction Enterprise
Limited - Wholly owned Subsidiary of L and T Infrastructure Development
Projects Limited # ·
L and T KrishnagiriThopur Toll Road Limited -
Wholly owned Subsidiary of L and T Infrastructure Development Projects
Limited # ·
L and T Western Andhra Tollways Limited - Wholly
owned Subsidiary of L and T Infrastructure ·
Development Projects Limited # ·
L and T Vadodara Bharuch Tollway Limited - Wholly
owned Subsidiary of L and T Infrastructure Development Projects Limited # ·
L and T Transportation Infrastructure Limited -
Wholly owned Subsidiary of L and T Infrastructure Development Projects
Limited # ·
L and T Western India Tollbridge Limited - Wholly
owned Subsidiary of L and T Infrastructure Development Projects Limited # ·
L and T Interstate Road Corridor Limited - Wholly
owned Subsidiary of L and T Infrastructure Development Projects Limited # ·
International Seaports (India) Private Limited -
Wholly owned Subsidiary of L and T Infrastructure Development Projects
Limited # ·
L and T Port Kachchigarh Limited - Wholly owned
Subsidiary of L and T Infrastructure Development Projects Limited # ·
L and T Ahmedabad - Maliya Tollway Limited -
Wholly owned Subsidiary of L and T Infrastructure Development Projects
Limited # ·
L and T Halol - Shamlaji Tollway Limited - Wholly
owned Subsidiary of L and T
Infrastructure Development Projects Limited # ·
L and T Krishnagiri Walajahpet Tollway Limited -
Wholly owned Subsidiary of L and T Infrastructure Development Projects
Limited # ·
L and T Devihalli Hassan Tollway Limited - Wholly owned Subsidiary of L and T
Infrastructure Development Projects Limited # ·
L and T Metro Rail (Hyderabad) Limited - Wholly
owned Subsidiary of L and T Infrastructure Development Projects Limited # ·
L and T Transco Private Limited - Wholly owned
Subsidiary of L and T Infrastructure Development Projects Limited # ·
L and T Chennai – Tada Tollway Limited -
Subsidiary of L and T Transco Private Limited ·
L and T BPP Tollway Limited (formerly known as
BPP Tollway Private Limited) - Subsidiary of L and T Infrastructure Development
Projects Limited # ·
L and T Deccan Tollways Limited - Subsidiary of L
and T Infrastructure Development Projects Limited # ·
Sutrapada SEZ Developers Limited @@ - Wholly
owned Subsidiary of L and T Transco Private Limited ·
Sutrapada Shipyard Limited @@ - Wholly owned
Subsidiary of L and T Transco Private Limited ·
L and T Samakhiali Gandhidham Tollway Limited
(formerly known as L and T Samakhiali Gandhidham ·
Tollway Private Limited) - Wholly owned Subsidiary of L and T
Transco Private Limited ·
Larsen and Toubro LLC - Wholly owned Subsidiary ·
Larsen and Toubro Infotech, GmbH - Wholly owned
Subsidiary of Larsen and Toubro Infotech Limited ·
Larsen and Toubro Infotech Canada Limited -
Wholly owned Subsidiary of Larsen and Toubro Infotech Limited ·
Larsen and Toubro Infotech LLC - Wholly owned
Subsidiary of Larsen and Toubro Infotech Limited ·
L and T Infotech Financial Services Technologies
Inc. - Wholly owned Subsidiary of Larsen and Toubro Infotech Limited ·
GDA Technologies Inc. - Wholly owned Subsidiary
of Larsen and Toubro Infotech Limited ·
L and T Infrastructure Development Projects Lanka
(Private) Limited - Subsidiary of L and T Infrastructure Development Projects
Limited # ·
Peacock Investments Limited - Wholly owned
Subsidiary of L and T Capital Company Limited ·
Mango Investments Limited - Wholly owned
Subsidiary of L and T Capital Company Limited ·
Lotus Infrastructure Investments Limited - Wholly
owned Subsidiary of L and T Capital Company Limited ·
L and T Real Estate India Fund - Wholly owned
Subsidiary of L and T Capital Company Limited ·
L and T Asset Management Company Limited - Wholly
owned Subsidiary of L and T Capital Company Limited ·
L and T Realty FZE - Wholly owned Subsidiary of L
and T Realty Limited ·
Larsen and Toubro International FZE - Wholly
owned Subsidiary ·
Larsen and Toubro (Oman) LLC - Subsidiary of
Larsen and Toubro International FZE # ·
Larsen and Toubro Electromech LLC - Subsidiary of
Larsen and Toubro International FZE # ·
L and T Modular Fabrication Yard LLC - Subsidiary of Larsen and Toubro International
FZE # ·
Larsen and Toubro (East Asia) SDN.BHD ## -
Subsidiary of Larsen and Toubro International FZE ## ·
Larsen and Toubro Qatar LLC ## - Subsidiary of
Larsen and Toubro International FZE ## ·
L and T Overseas Projects Nigeria Limited -
Wholly owned Subsidiary of Larsen and Toubro International FZE ·
L and T Electricals Saudi Arabia Company Limited,
LLC - Subsidiary of Larsen and Toubro International FZE # ·
Larsen and Toubro Kuwait Construction General Contracting
Company, WLL ## - Subsidiary of Larsen and Toubro International FZE ## ·
Larsen and Toubro Kuwait Construction General
Contracting Company, WLL ## - Subsidiary of Larsen and Toubro International
FZE ## ·
Larsen and Toubro Kuwait Construction General
Contracting Company, WLL ## - Subsidiary of Larsen and Toubro International
FZE ## ·
Larsen and Toubro (Qingdao) Rubber Machinery
Company Limited - Wholly owned Subsidiary of Larsen and Toubro International
FZE ·
Qingdao Larsen and Toubro Trading Company Limited
- Wholly owned Subsidiary of Larsen and Toubro (Qingdao) Rubber Machinery
Company Limited ·
Larsen and Toubro (Jiangsu) Valve Company Limited
- Wholly owned Subsidiary of Larsen and Toubro International FZE ·
Larsen and Toubro Readymix Concrete Industries
LLC ## - Subsidiary of Larsen and Toubro International FZE ## ·
Larsen and Toubro Saudi Arabia LLC - Wholly owned Subsidiary of Larsen and
Toubro International FZE ·
Larsen and Toubro (Wuxi) Electric Company Limited
- Wholly owned Subsidiary of Larsen and Toubro International FZE ·
Larsen and Toubro ATCO Saudia Company LLC ## -
Subsidiary of Larsen and Toubro International FZE ## ·
TAMCO Switchgear (Malaysia) SDN. BHD - Wholly
owned Subsidiary of Larsen and Toubro International FZE ·
TAMCO Electrical Industries Pty Limited - Wholly
owned Subsidiary of Larsen and Toubro International FZE ·
PT TAMCO Indonesia - Wholly owned Subsidiary of
Larsen and Toubro International FZE ·
Larsen and Toubro Heavy Engineering LLC -
Subsidiary of Larsen and Toubro International FZE # ·
Offshore International FZC**** - Subsidiary of
Larsen and Toubro International FZE # ·
L and T Electrical and Automation FZE – Wholly
owned Subsidiary of Larsen and Toubro International FZE ·
Pathways FZE@@@ - Wholly owned Subsidiary of
Larsen and Toubro International FZE ·
Larsen and Toubro Consultoria E Projeto Ltda -
Wholly owned Subsidiary of Larsen and Toubro International FZE ·
Larsen and Toubro T and D SA Pty Limited -
Subsidiary of Larsen and Toubro International FZE # Note: * The Company holds more than one-half in nominal value of the equity
share capital # The Company, together with its subsidiaries holds more than one-half
in nominal value of the equity share capital ## The Parent Company, together with its subsidiaries controls the
composition of the Board of Directors. $$ The Company is under liquidation and its name is struck off from
the register of ROC u/s 560(5) of the Companies Act, 1956 on April 16, 2011 @@ The Company is under liquidation and its name is struck off from
the register of ROC u/s 560(5) of the Companies Act, 1956 on October 14, 2011 @@@ The Company has been wound up w.e.f. November 9, 2011 **** The Company is under liquidation pursuant to shareholder’s
approval dated April 26, 2011 |
|
|
|
|
Associate Companies: |
·
Audco India Limited ·
Salzer Electronics Limited ·
L and T-Chiyoda Limited ·
L and T-Komatsu Limited ·
L and T-Ramboll Consulting Engineers Limited ·
Feedback Infrastructure Services Private Limited
(formerly known as Feedback Ventures Private Limited) ·
JSK Electricals Private Limited 8 Magtorq Private
Limited |
|
|
|
|
Joint ventures (other than associates): |
·
International Metro Civil Contractors Joint
Venture ·
Bauer-L and T Diaphragm Wall Joint Venture ·
Chennai Metro Rail 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- SUCG Joint Venture ·
L and T-AM Tapovan Joint Venture ·
HCC-L and T Purulia Joint Venture ·
The Dhamra Port Company Limited ·
Metro Tunnelling Delhi |
CAPITAL STRUCTURE
As on 26.08.2011
Authorised Capital : Rs.3250.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.1227.621
Millions
As on 31.03.2012
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 |
|
|
|
|
|
|
612398899 |
Equity Shares |
Rs.2/- each |
Rs.1224.800 |
|
|
|
|
|
Note:
Reconciliation of the number of equity shares and share capital:
|
Particulars |
As on 31.03.2012 |
|
|
|
Number of shares |
Rs. In Millions |
|
Issued,
subscribed and fully paid up equity shares outstanding at beginning of the year |
608852126 |
1217.700 |
|
Add: Shares
issued on exercise of employee stock options during the year |
3546773 |
7.100 |
|
|
|
|
|
Issued,
subscribed and fully paid up equity shares outstanding at the end of the year |
612398899 |
1224.800 |
Terms/rights attached
to equity shares:
The Company has
only one class of share capital, i.e. equity shares having face value of Rs.2
per share. Each holder of equity share is entitled to one vote per share.
Shareholders holding more than 5% of equity shares as at the end of the
year:
|
Particulars |
As on 31.03.2012 |
|
|
|
Number of shares |
Shareholding % |
|
Life Insurance Corporation of India |
110405734 |
18.03 |
|
L&T Employees Welfare Foundation |
74404116 |
12.15 |
|
Administrator of
the Specified Undertaking of the Unit Trust of India |
50572216 |
8.26 |
Shares reserved for issue under options outstanding as at the end of th
e year on un-issued share capital:
|
Particulars |
As on 31.03.2012 |
|
|
|
Number of shares |
Rs. In Millions (At face value) |
|
Employee stock options granted and outstanding # |
@ 11428854 |
2.29* |
|
3.5% 5 years
& 1 day US$ denominated foreign currency convertible bonds (FCCB) ## |
4907243 |
0.98** |
* The equity shares
will be issued at a premium of Rs.6403.200 Millions (previous year: Rs.7748.700
Millions)
** The equity
shares will be issued at a premium of Rs.9354.200 Millions (previous year:
Rs.9354.200 Millions) on the exercise of options by the bond holders
# Refer Note
no.A(VIII) for terms of employee stock option schemes
## Refer Note
no.C(I)(b) for terms of foreign currency convertible bonds
@ The number of options have been adjusted consequent to bonus issue
wherever applicable
The aggregate
number of equity shares allotted as fully paid up by way of bonus shares in
immediately preceding five years ended March 31, 2012 are 29,25,92,054
(previous period of five years ended March 31, 2011: 43,26,11,409 shares)
The aggregate
number of equity shares issued pursuant to contract, without payment being
received in cash in immediately preceding last five years ended on March 31,
2012 – Nil (previous period of five years ended March 31, 2011: 2 shares)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1224.800 |
1217.700 |
1204.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
250.900 |
|
|
3] Reserves & Surplus |
251005.400 |
217244.900 |
178822.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
252230.200 |
218462.600 |
180277.500P |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
14533.400 |
10630.400 |
9557.300 |
|
|
2] Unsecured Loans |
84424.300 |
60980.700 |
58451.000 |
|
|
TOTAL BORROWING |
98957.700 |
71611.100 |
68008.300 |
|
|
DEFERRED TAX LIABILITIES |
1330.100 |
2634.700 |
3892.700 |
|
|
Employee Stock options Outstanding |
0.000 |
0.000 |
2838.900 |
|
|
|
|
|
|
|
|
TOTAL |
352518.000 |
292708.400 |
255017.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
76661.300 |
66673.300 |
55081.000 |
|
|
Capital work-in-progress |
6975.300 |
7482.000 |
8576.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
158719.000 |
146848.200 |
137053.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
3118.800 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
17766.200
|
15771.500 |
14153.700
|
|
|
Sundry Debtors |
187298.400
|
124276.100 |
111583.500
|
|
|
Cash & Bank Balances |
19052.600
|
17303.500 |
14318.700
|
|
|
Other Current Assets |
119176.400
|
110492.500 |
63532.200
|
|
|
Loans & Advances |
91280.400
|
82252.900 |
60364.500
|
|
Total
Current Assets |
434574.000
|
350096.500 |
263952.600 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
157528.100
|
128534.200 |
95447.100
|
|
|
Other Current Liabilities |
143012.600
|
127415.600 |
95457.600
|
|
|
Provisions |
23870.900
|
22441.800 |
21860.400
|
|
Total
Current Liabilities |
324411.600
|
278391.600 |
212765.100 |
|
|
Net Current Assets |
110162.400
|
71704.900 |
51187.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
352518.000 |
292708.400 |
255017.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
531705.200 |
439058.700 |
366751.500 |
|
|
|
Other Operational Income |
0.000 |
0.000 |
3596.500 |
|
|
|
Other Income |
13382.800 |
11474.600 |
20249.600 |
|
|
|
TOTAL (A) |
545088.000 |
450533.300 |
390597.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material components consumed |
101417.500 |
77376.700 |
|
|
|
|
Construction material consumed |
124777.900 |
100697.600 |
|
|
|
|
Purchase of stock in trade |
23694.000 |
22825.500 |
|
|
|
|
Stores spares and tools consumed |
16228.300 |
11877.900 |
|
|
|
|
Sub contracting charges |
106475.400 |
93959.700 |
|
|
|
|
Other manufacturing, construction and operating expenses |
43006.400 |
33270.700 |
|
|
|
|
Employee benefit expense |
36634.500 |
28300.800 |
|
|
|
|
Sales and administration and other expense |
22230.300 |
19778.200 |
|
|
|
|
Extraordinary items |
0.000 |
(708.400) |
|
|
|
|
Overheads charged to fixed assets |
(187.500) |
(97.700 |
|
|
|
|
Exceptional items |
(550.000) |
(2620.700) |
|
|
|
|
Changes in inventories of finished goods and operating expense
|
(5397.700) |
(5326.400) |
|
|
|
|
TOTAL (B) |
468329.100 |
379333.900 |
321221.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
76758.900 |
71199.400 |
69376.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6661.000 |
6192.500 |
5053.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
70097.900 |
65006.900 |
64322.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6994.600 |
5992.200 |
4159.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
63103.300 |
59014.700 |
60163.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
18538.300 |
19435.800 |
16408.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
44565.000 |
39578.900 |
43755.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1056.800 |
1072.900 |
1005.000 |
|
|
|
|
|
|
|
|
|
Less |
Dividend paid for previous year |
NA |
34.400 |
20.400 |
|
|
Less |
Transfer to Debenture redemption reserve |
NA |
5.700 |
3.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
29100.000 |
34600.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
NA |
498.300 |
433.400 |
|
|
|
Proposed Dividend |
NA |
8828.400 |
7527.500 |
|
|
|
Additional tax on dividend |
NA |
1128.200 |
1102.500 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
1056.800 |
1072.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
8449.400 |
5553.400 |
5101.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12731.000 |
10090.500 |
10538.800 |
|
|
|
Components & Spare Pats |
40272.400 |
35240.200 |
31352.100 |
|
|
|
Spare Parts for |
0.000 |
3605.200 |
2291.500 |
|
|
|
Capital Goods |
7146.100 |
6416.100 |
4791.300 |
|
|
TOTAL IMPORTS |
60149.500 |
55352.000 |
48973.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
72.92 |
64.16 |
73.77 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
|
Type |
1st
Quarter |
|
Net Sales |
119553.500 |
|
Total Expenditure |
108683.600 |
|
PBIDT (Excl OI) |
10869.900 |
|
Other Income |
6058.400 |
|
Operating Profit |
16928.300 |
|
Interest |
2284.100 |
|
Exceptional Items |
(383.400) |
|
PBDT |
14260.800 |
|
Depreciation |
1919.400 |
|
Profit Before Tax |
12341.400 |
|
Tax |
3704.900 |
|
Profit After Tax |
8636.500 |
|
Extra ordinary items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
8636.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total
Income |
(%) |
8.18
|
8.78 |
11.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.87
|
13.44 |
16.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.34
|
14.16 |
18.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.27 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.68
|
1.60 |
1.56 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.34
|
1.26 |
1.24 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
32] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
YEAR IN RETROSPECT
The gross sales and other income for the financial year were
Rs.550760.000 Millions as against Rs.454440.000 Millions for the previous
financial year registering an increase of 21%. The Profit before tax excluding
extraordinary and exceptional items was Rs.62550.000 Millions and the Profit
after tax excluding extraordinary and exceptional items of Rs.44130.000
Millions for the financial year as against Rs.55690.000 Millions and
Rs.36760.000 Millions respectively for the previous financial year, registering
an increase of 12% and 20% respectively.
DEPOSITORY SYSTEM
As the members are aware, the Company’s shares are compulsorily tradable
in electronic form. As on March 31,2012, 97.19% of the Company’s total paid-up
Capital representing 59,52,14,789 shares is 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 35,46,773 equity shares upon
exercise of stock options by the eligible employees under the Employee Stock
Option Schemes. During the year,
Rs.5400.000 Millions were drawn by the Company under the partly-paid Non-Convertible
Debentures issued in 2010-2011. Further the Company tied up long term foreign
currency loans equivalent to approximately USD 145 million, half of which was
drawn during the year, the balance to be drawn in 2012-2013.
During the year, the Company repaid a part of the long term foreign
currency loans, equivalent to about Rs.6150.000 Millions and redeemed
Non-Convertible Debentures of Rs.2500.000 Millions.
CAPITAL
EXPENDITURE
As at March 31, 2012, the gross fixed and intangible assets, including
leased assets, stood at Rs.112950.000 Millions and the net fixed and intangible
assets, including leased assets, at Rs.83640.000 Millions. Additions during the
year amounted to Rs.17250.000 Millions.
Management
Discussion and Analysis 2011-2012
Global Economic
Condition
The world economy continues to face challenges on the road to sustained
recovery. Advanced Economies that seemed to be shaping well at the start of
2011 lost steam towards the fag-end of the year and this uncertainty is
clouding the prospects for global growth during 2012. The growth momentum was
impacted as the protracted debt crisis in the euro area and fiscal fragilities
dampened business and consumer confidence.
The economic crisis and its ramifications 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. The consequence has
been volatile and low growth which is likely to stay for sometime to come.
Near term, the growth prospects for 2012-2013 remain uncertain, with
growth petering out in the euro area and moderating in the emerging markets,
while a better-thanexpected recovery is shaping up in the US. The baseline
scenario suggests that global growth may continue to below in 2012, with a
recession in the euro area as the region makes the much needed fiscal
adjustment. Meanwhile, the resource rich Middle East and North Africa (MENA)
region has been facing significant internal challenges and geopolitical risks.
In addition, there is the risk of large potential spillovers to the region from
Europe.
The year 2011-2012 was abetted by the continuing global volatility and
challenges. These uncertainties led to widespread risk aversion and adversely
affected capital flows to new projects. The competition for limited
opportunities, led to socio-political tensions, increasing protectionism,
reassessment of regulation and more importantly, heightened competition for
scarce natural resources.
Overview of Indian
Economy
After a rebound in growth in 2010-2011, the Indian economy slowed down
to 6.5% in fiscal 2011-2012. This was the lowest annual growth in the last 9
years and was sub-par in comparison to not just the pre-crisis years up to 2008
but also compared to immediate post crisis period.
With increasing global integration, the Indian economy was impacted by
global uncertainties, while at the same time faced significant domestic
challenges of persistent and high inflation, tight monetary conditions, low
investment and delays in policy making.
The slowdown in 2011-12 was seen in all the major sectors of the economy
as compared with the previous year. The Services sector grew by 8.9%, Industry
by 3.4% and Agriculture by 2.8% as compared with 9.3%, 7.2% and
7% respectively in 2010-2011. Industrial growth remained subdued due to
supply-side bottlenecks, particularly in
the mining sector, and moderation in investment demand. The most dismal
picture has been presented by capital
goods segment which has been in a negative territory during the fiscal.
Significantly, slowdown was witnessed in capacity addition as defined by
capital formation which decelerated to 5.5% in 2011-2012 as against 7.5%
achieved in 2010-2011.
Business scenario:
Core sectors in the country which are of key importance to the
businesses of the Company, in particular, Power, Transportation Infrastructure,
Hydrocarbon, Fertiliser, Defence, faced multiple challenges due to policy
delays. Consequently the commitments on capital expenditure and fresh
investments were deferred, impacting the growth in the order inflow of the
Company during 2011-2012.
Delays in obtaining various clearances and approvals staggered progress
on a few ongoing projects in power,
power transmission, roads and railways segment. Product businesses of
the Company witnessed sluggish industrial demand and recorded moderate sales
during 2011-2012.
Despite the prevailing economic uncertainties, the year 2012-2013 holds
prospects of gradual build-up in the
growth momentum of the Indian economy. Infrastructure development
assumes prominence in the Government’s
budget proposals for the year 2012-2013. Apart from Power and
Transportation Infrastructure, the emphasis will be on strengthening certain other
sectors such as Fertiliser, Oil and Gas Pipelines, Irrigation, and Rural Market
Network with increase in the budgeted allocation of resources for funding
growth in these sectors.
In the long-term, India continues to offer considerable opportunities aided
by its favourable demographic profile.
Its large consumer market has attracted global companies, many of whom
have made India their manufacturing hub. However, in order to harness this
potential and achieve sustainable growth, the country needs to push forward
critical reforms and build innovative public-private partnerships to deliver
rapid and inclusive growth as also provide an enabling environment for
upgrading infrastructure.
Besides policy reforms, better governance, delivery systems and stronger
implementation, the leaders from the government, industry and society need to
collaborate to improve the education system, invest in much needed
infrastructure, increase the agricultural productivity and ensure an equitable
distribution of opportunities for achieving an inclusive and sustainable
growth.
With some signs of stability returning in the MENA region and crude
prices sustaining at remunerative levels, infrastructure development and
capacity expansion in Oil and Gas sector is expected to attract fresh
investments in the Middle East which augur well for the businesses of the
Company.
Business
Challenges:
Order prospects of the Company especially from Power, Infrastructure,
Defence, Fertiliser, Water and Railways in India largely depend upon the policy
direction and availability of resources to finance large projects.In spite of
large demand for power, projects for setting up of new power plants are not
gaining momentum due to fuel shortage, delays in obtaining environmental
clearances, issues associated with land acquisition and competition from
Chinese equipment manufacturers. Political stability, good governance and speedy decision making hold the key for achieving growth in
the order inflow.
The businesses of the Company are also focusing on harnessing
international prospects, mainly from the Middle
East region in 2012-2013. The forays into international
markets would mean dealing with many challenges such as stiff competition from
multinational players, regulatory requirements of local sourcing etc.
Margins would remain under pressure during 2012-2013 with
inflationary conditions and continuing competition from domestic and
international players. The volatility in commodity prices and foreign currency
exchange rates are expected to pose challenges to the operating margins.
Conditions of tight liquidity and elevated interest rates are expected to
prevail in 2012-2013. The working capital levels unless managed well are likely
to trend higher.
Growth
Strategies and Thrust Areas:
Improved execution efficiencies, cost competitiveness,
better supply chain management, control over working capital, efficient
utilization of resources, smart bidding strategies, better product and service
offerings will enable
the businesses to achieve the desired targets in the medium
term. The major growth strategies of the Company include:
• Thrust to International Business:
While strengthening its domestic presence, the Company is
accelerating forays into the international markets, particularly in the Middle
East. The prospects in the new geographies such as Australia, parts of Africa
and CIS countries are also being explored. Building an international
organisation for business development and execution is a major thrust area. The
businesses are focusing on tie-ups/pre-qualification alliances for securing
large value international orders.
• Strengthening Execution and Operational
efficiency:
The businesses have taken steps for focused cost reduction
and productivity improvement to enhance their competitive positioning. These
steps will also enable deployment of innovative pricing strategies for
achievement of targeted business inflow for both projects as well as product
businesses of the Company.
Efficient project monitoring and improved contract management
remain the key thrust areas for management of large sized, long cycle EPC jobs
under execution. The businesses are concentrating on superior execution and
enhanced delivery capability for achieving targeted sales and profitability in
2012-2013.
• Capacity augmentation and productivity
gains:
With an eye on capacity augmentation, the Company has
undertaken in 2011-2012 capital expenditure mainly to acquire various plant and
equipment for the businesses in Engineering and Construction segment and for
expansion of the Modular Fabrication Yard at Kattupalli, Tamilnadu. The
manufacturing facilities at Vadodara and
Ahmednagar for the Electrical and Electronics business
segment are being augmented to reap benefits of low cost locations.
The Company has made significant investments in the past few
years in expanding the fabrication and manufacturing facilities for its various
businesses. While these new capacities will enhance the competitive edge of the
Company, the returns on these investments are expected only over a longer term.
The businesses are focusing on increasing capacity utilization and enhancing
productivity in order to improve returns on these investments.
• New Business Structure and Strategic
Plan:
The Independent Companies (ICs) structure has been
institutionalized in LandT Group for empowering businesses for scaling up
performance. A mid-term review of the Strategic Plan 2015 was carried out and
requisite course corrections have been incorporated in the newly adopted
Lakshya 2016 plan. With improved organizational structure and strategic
direction, the businesses are enabled to harness opportunities and tackle
challenges. The Strategic Plan will aid the Company to take initiatives for
growing remunerative businesses. The Strategic Plan is also expected to
facilitate organizational and business portfolio restructuring for increased
value creation in the medium term.
• Human Resource Development:
Talent management, leadership development and succession planning
are the major focus areas for the Company. The individual business units have
been focusing on acquiring and retaining the talent with requisite
competencies. Specific high impact programmes are being conducted for
leadership development. The Company
has invested in setting up various in-house training and
development centers. LandT-Project Management Institute in Baroda is accredited
by PMI of USA. The Company runs Construction Skill Training Institutes (CSTI)
in association with the Ministry of Rural Development, GOI and some of the
State Governments at 7 locations across India for imparting vocational training
to rural youth on skills such as masonry, carpentry, plumbing etc.
With identified key strategic initiatives, large order book
and the proven track record, the Company is well positioned to chart out its
course on the growth trajectory and create value for all its stakeholders in
the medium term. It is in this background that the Company’s ICs, Subsidiary
and Associate Companies present their operations review for the year 2011-2012
as under:
Hydrocarbon IC
Overview
Hydrocarbon IC delivers design-to-build world class solutions in the
Engineering and Construction space for Oil and Gas sector. In-house expertise
and experience, synergized with strategic partnerships enable it to deliver a
singlepoint solution for every phase of project – from front end design through
engineering, fabrication, project management, procurement, construction and
installation right up to commissioning.
The key aspects of business philosophy are on-time delivery, cost
competitiveness, high quality standards with focus on best in class Healthy
Safety Environment and IT security practices. Integrated strengths coupled with
experienced and highly skilled work force, are the key enablers in delivering
critical and complex projects in India and in select overseas countries.
Major capabilities of the IC include in-house engineering, R and D
centers, engineering joint ventures with reputed international companies, offshore
installation capabilities, world class modular
fabrication facilities,experienced &
competent project execution team and safety oriented work
culture. Hydrocarbon IC constantly strives to enhance
health safety and environment parameters during project execution
through safety cultural transformation across
various disciplines. It has major work centres in India at
Powai [Mumbai], Vadodara, Chennai, Bengaluru, Faridabad, Hazira and Kattupalli.
The IC is a significant player in the Middle East and South East Asia.
Internationally it has a manufacturing facility in Sohar [Oman], project
execution capabilities in UAE [Abu Dhabi and Sharjah], Qatar [Doha] and
Al-Khobar [Saudi Arabia] and business development offices in Houston, London,
Singapore, Malaysia and Brazil.
Hydrocarbon IC is structured into the following three
Strategic Business Groups (SBGs):
·
Hydrocarbon Upstream
·
Hydrocarbon Mid and Downstream (HMD)
·
Hydrocarbon Construction and Pipelines
(HCP)
Hydrocarbon
Upstream
Hydrocarbon Upstream SBG provides a wide range of EPIC solutions
covering entire value chain of offshore Oil and Gas encompassing drilling rigs,
offshore platforms and subsea pipelines. Its wide business portfolio includes
well-head platforms, process platforms and modules, subsea pipelines,
brownfield developments, floating systems and deep water sub-sea.
The SBG has successfully executed large size projects in East and West
Coast of India, the Gulf and Africa and has an elite clientele comprising
global companies such as ONGC, GSPC, Songas, Qatar Petroleum, Maersk Oil Qatar,
Bunduq, PTTEPI, ADMA OPCO and also executed break through orders for major jack
up rig refurbishment.
Upstream SBG has three state-of-art fabrication facilities offering round
the year delivery, accessing strategically important regions – Hazira near
Surat on the west coast of India, Kattupalli near Chennai on the east coast of
India, and at Sohar on the Gulf of Oman, with a capacity of about 150,000 MT
per year catering to fabrication of large oil and gas modules and heavy
offshore and onshore structures. In addition, the deepwater yards at Sohar and
Kattupalli can execute construction / refurbishment of Jack-up Rigs and Semis,
FPSO’s and Integrated Decks. The SBG’s capabilities are further augmented with
the new Heavy Lift-cum-Pipelay installation Vessel, LTS3000.
The SBG recently completed installation of the country’s largest project
order bagged in 2009 – the US $ 1.2 Billion Mumbai High North complex, where it
achieved several firsts for Indian offshore such as largest jacket, heaviest
loadout, heaviest lift at offshore, largest offshore living quarter module and
largest process platform. The entire Engineering and Fabrication for this
project was done in-house, achieving an end-to-end delivery capability for such
mega projects. Installation vessel LTS 3000 owned by LandT’s JV LTSSPL was used
for installation of Jackets including heaviest MNP Jacket weighting 13,500 MT
for first time in India. A total of 80,000 MT of fabrication was involved in
this project.
During the year, Upstream SBG was successful in bagging
major well head platform orders from international clients like PTTEPI
and ADMA OPCO.
As a part of strategic initiatives, newer geographies are being explored
to maintain the growth momentum.
Hydrocarbon Mid
and Downstream (HMD)
Hydrocarbon Mid and Down Stream SBG offers turnkey solutions
encompassing engineering, procurement, construction and commissioning (EPCC) to
petroleum refining, petrochemicals, fertiliser and onshore gas processing
sectors.
The SBG has rich experience of project execution with diverse
technologies form process licensors like UOP, Axens, HaldorTopsoe, CB and I
Lummus, Black and Veatch, Ortloff, ExxonMobil, BOC Parsons, Du-Pont (Invista)
and Davy Process Technologies.
HMD has built the capabilities and has the resources to simultaneously
execute multiple large value complex projects meeting stringent delivery
schedules and safety norms. The multi-locational centres of engineering excellence
comprising L and T-Chiyoda and in-house design and engineering centres, have
over 1500 experienced engineers, equipped to address the complete spectrum of
process and detailed engineering. In India, the SBG mainly operates from Mumbai
and Vadodara. As a part of internationalization initiative, business
development and execution capabilities have been established in Sharjah and
Al-Khobar.
HMD has also been prequalified with major state owned oil and gas
producers in MENA and SEA such as ORPIC, ADCO, ADMA OPCO, KOC, KJO, Saudi
ARAMCO for large value upcoming projects.
During the year, SBG has bagged a green field gas processing project
from PDO Oman. HMD has actively participated in almost all the fertilizer
projects in India. Through strategic alliances with internationally renowned
companies, HMD has access to world-class technologies offering process for
manufacture of ammonia and urea.It has three Ammonia Plant modernisation
projects under execution at Bharuch for GNFC and at Panipat and Bhatinda for
NFL which are progressing as per schedule.
The SBG has excellent track record in executing hydrogen generation and
synthesis gas generation projects and has also executed several fast track
refinery projects including diesel hydrodesulphurisation and diesel
hydro-treating units. In the domestic Gas processing segment, two projects are
under execution for additional gas processing facilities from ONGC at Hazira
and Uran.
Major jobs completed during the year include commissioning of hydrogen
generation unit of GGSR at Bhatinda and mechanical completion of diesel
hydrotreating unit and hydrogen generation unit of MRPL at Mangalore. Reactor
regenerator package for IOCL-Paradip is also under advanced stage of execution.
Hydrocarbon
Construction and Pipelines (HCP)
Hydrocarbon Construction and Pipelines SBG undertakes turnkey
construction of refinery, petrochemicals, chemical plants, fertilizers, gas
gathering stations, crude oil and gas terminals, underground cavern storage
system for LPG covering civil, structural, piping, equipment and heavy lift
works. It also undertakes cross-country pipelines on lumpsum turnkey (LSTK)
basis.
Major capabilities include engineering design centers, heavy lift
competency and quality adherence. SBG has put
in focused efforts to set higher benchmarks in Health Safety Environment
Culture. The SBG has a joint venture with Gulf Interstate Engineering of USA to
provide world class engineering for cross-country pipelines. LandT’s capability
to meet the global standards in pipeline construction on EPC mode has been
proven in Cairn’s Barmer Salaya pipeline project which is the world’s longest
heated and PUF insulated waxy crude pipeline.
To cater to GCC opportunities, the SBG has well established at Sharjah
and Al Khobar supported by plant and machinery a fleet of key construction
equipment, including all-terrain cranes, entire range of pipeline spreads and
earthmoving equipment. In order to service the clients in the MENA region more
effectively, the SBG has entered into joint venture with reputed local partners
in Oman, Kuwait and Saudi Arabia. Hydrocarbon IC is targeting select
opportunities in other international geographies such as - South East Asia,
Australia, Africa and CIS countries and key regional business development
personnel have been appointed in those regions.
The SBG has executed various projects for key clients such as SABIC
(Saudi Arabia), KOC (Kuwait), KAFCO (Kuwait) ADNOC, ENOC, Qatar Petroleum,
Oiltanking Odfjell Terminals and Co. (Oman) and Saudi Aramco directly as well
as through other EPC contractors.
During the year, SBG achieved major milestone by bagging a 52” X 123 km
pipeline contract on EPC basis from
GASCO in UAE and breakthrough order in Saudi Arabia for CMIE
construction work of poly ethylene plant from Sadara Chemicals (a 50:50 JV of
Saudi Aramco and Dow Chemical Company).
Business
Environment
Domestic Market is becoming increasingly competitive with new players
trying to establish themselves through aggressive bidding as also established
international players quoting on marginal cost basis to utilize their idle
capacities.
In order to achieve sustainable growth going forward, IC has embarked on
cost reduction and value engineering initiatives and diversification into new
geographies. Hydrocarbon IC is also focusing on modular process plant
opportunities including onshore LNG modules for international markets.
During the year, a few orders, mainly domestic, got deferred due to lack
of clear policies on fertilisers, fuel pricing and weaker financial condition
of oil marketing PSUs.Internationally, select GCC countries saw some
sluggishness namely Qatar due to gas moratorium and Kuwait due to political
reasons. On the contrary, UAE and
Saudi are seen to be active on new project announcements.
Successful execution of jobs bagged during the year from some
prestigious international client like ADMA OPCO,
PDO, PTTEP, GASCO and SADARA Chemical, would lead to potential of
repetitive orders.
Outlook
Oil prices are steady at elevated level and have upward bias in near
term given the political tensions between USA and Iran. The IC foresees
business momentum building up particularly in Saudi Arabia and UAE markets in
2012-2013.
Major triggers in domestic markets would be clarity on gas pricing and
availability which will facilitate award of fertilizer projects and expected
impetus to cross country pipeline projects. Good business opportunities are
also seen in upcoming onshore gas processing projects.
On the international front, the IC is confident of securing a few large
size orders from Saudi Arabia, UAE, Oman, South East Asia region aided by
business development initiatives undertaken by the IC and good business
prospects in these select markets.
Buildings and
Factories IC
Overview
Buildings and Factories (B and F) IC undertakes engineering design and
construction of Airports, IT office spaces and institutional buildings,
hospitals, hotels, residential buildings, factories and cement plants. Our thrust
is on diversifying in various building segments and expanding customer base by
providing “Concept to Commissioning” solutions thus maintaining its leadership
position, retaining key customers and bagging major orders.
B and F IC, as a part of L and T’s Construction business has completed
many landmark projects in India as well as abroad. In a global setting, L and T
construction ranked 29th amongst the top 225 Global Contractors [source:
Engineering News Record (ENR) August 29, 2011] consistently improving its
ranking over last five years from 54th rank in ENR 2006.
Business
Environment
Despite a decline in overall GDP growth, the B and F IC maintained its
leadership in the market during 2011-2012.
Elite and luxury housing segment in the metro cities, commercial
complexes for Retail and IT industry provided good opportunities to B and F IC
during 2011-2012. The Order book of B and F IC recorded significant growth with
major orders bagged during 2011-2012. In Airports, B and F bagged the prestigious
project of Bangalore International Airport Limited Terminal 1 expansion at
Bengaluru on a design and build model. In IT Parks and offices, the IC received
orders from IT Giants like TCS, Cognizant and HCL at Kochi and Chennai
locations. B and F IC also received mixed use development orders from DLF and
RMZ at Noida and Bangalore respectively. The IC has put a strong foot into the
Hyper-mart construction by getting orders on Pan-India basis from Reliance
Industries Limited. The IC has strengthened its presence in residential segment
in Mumbai by bagging orders from Omkar, Oberoi Realty and Lodha Crown
Buildmart. In addition to the above, the IC has received residential projects
at Chennai, Mumbai, Bangalore and Mangalore from DLF, Prestige Estates Projects,
Essar and SKS Netgate to name a few. Factories segment has bagged orders from
Renault Nissan, Birla Suriya and Arshiya.
Repeat orders from Cognizant, TCS, Omkar and DLF, to name a few,
indicates the capability of the IC in project
deliveries to the satisfaction of their customers. B and F IC has
reported significant growth in the revenues during the year 2011-2012. Some of
the key notable projects completed by B and F IC include the Punjab War
Memorial and Mumbai International Airport Limited (MIAL) Airside. The
completion of these prestigious projects within stringent timeline,
demonstrates B and F IC’s superior project management / project execution
capabilities in handling large design build / turnkey projects.
Outlook
The opportunities in airports in domestic expansions and international
projects, IT campus development, government thrust on healthcare, retail,
demand for housing, factories and cement plant expansion plans by major players
will be the key drivers for B and F IC’s growth. Construction market is also
expected to remain attractive in MENA countries. Given the fact that the global
construction majors have been witnessing slowdown in their home markets, the
growth hubs of India and MENA countries will attract a number of players.
Nevertheless, B and F IC is poised to register a satisfactory growth in
the revenues during the year 2012-2013 on the back drop of a healthy order book
and proven track record.
Infrastructure IC
Overview
Infrastructure (Infra) IC undertakes design, engineering and
construction of projects in Roads and Runways, Elevated Corridors, Metros,
Tunnels, Ports, Special Bridges, Hydro Power, Nuclear Power, Defence and
Railway
infrastructure sectors.
Business Environment
The slowdown in economic growth adversely affected the investment in
various infrastructure projects in 2011-2012. Apart from deferment of ordering,
the IC also witnessed stiff competition on the available business prospects
during the year 2011-2012. Tight liquidity position, issues relating to land
acquisition slowed down the pace of execution of certain large scale projects.
The prices of key inputs remained volatile during 2011-2012.
Some of the major orders secured in during the year 2011-2012 include
Hosur-Krishnagiri, Bewar-Pindwara, Kishangarh-Ahmedabad and Shivpuri-Dewas
projects in road sector, various underground and elevated metro packages of
Delhi, Chennai and Kolkata, common service package for
Kakrapar and Rajasthan Atomic Power Projects. The IC has
also secured two orders for construction of roads in the Sultanate of Oman.
Some of the key projects completed by Infra IC include
Halol-Godhra-Shamlaji, Rajkot-Jamnagar-Vadinar, Kattupalli port, railway
electrification of Moradabad-Roza and Barauni – Chappra sections, gauge
conversion for Nagore – Karaikal section and port connectivity for Bharuch –
Dahej section.
Outlook
Given the huge gap between infrastructure demand and supply in a growing
economy like India, all business relating to urban infrastructure, power, roads
and water would witness attractive growth over a sustained period. The Union
Budget 2012-2013 also lays greater emphasis on infrastructure development. The
realisation of order prospects in infrastructure, power, defence and railways
sectors, however, largely depend upon the government’s
ability to implement the policy decision and finance large scale
projects.
Infra IC is clearly focussing in capitalising the current market trend.
With the specific and continuous thrust on business development, the IC is
looking at new opportunities across various business segments in India as well
as in the International fronts. The healthy Order book position of Infra IC
gives the confidence of registering good growth in revenues during the year
2012-2013.
Metallurgical and
Material Handling IC
Overview
Metallurgical and Material Handling (MMH) IC undertakes EPC
(Engineering, Procurement and Construction) projects for ferrous (iron and
steel making) and non-ferrous (Aluminium, copper, lead and
zinc) metal industries, bulk material
and ash handling systems in
power, port, steel and mining sectors. It has a well-established
fabrication unit at Kanchipuram, Tamil Nadu to meet the specific needs of its
customers.
Business
Environment
MMH IC retained its market leadership in its areas of operation during
the year 2011-2012. Greenfield project of Tata Steel at Kalinganagar picked up
momentum for which the IC is executing major packages.
MMH IC had won orders from Tata Steel for Blast Furnace, Coke Oven, Raw
Material Handling System, Civil and Structural works for SMS, HSM and PDS at
Kalinganagar and rebuild of Blast Furnace F and G at Jamshedpur. Other orders
won include Civil and Structural works for CDQ and DRI at Bellary from JSW,
Civil and Structural works for Alumina Refinery at Raigarh from Utkal Alumina,
Civil and Structural works for BOF and Slab Caster for Phase III at Angul from
Bhushan Steel, Civil and Structural works for Phase II at Amravati, Nashik from
India Bulls, Raw Material Handling System at Tuticorin from Sterlite, Coal
Handling Plant at Bara from Jaypee and supply and Erection of CHP at Parsa
Kente Mines for Adani Group.
MMH IC had successfully completed India’s largest pellet plant (6 MTPA),
LD-3 and
Thin Slab Caster Rolling Mill at
Jamshedpur, Bedding and Blending System for Iron Ore Fines at
Noamundi, Yard Machines at Joda Mines for Tata Steel, Blast Furnace-4 at
Bellary for JSW, Coal handling plant for stage II at Simhadri for NTPC, coal
handling plant at Kodermafor DVC and at Tiroda for Powergen Infrastructure.
MMH IC is currently executing projects involving various facilities at
steel plant at Kalinganagar for Tata steel, at Bhila for SAIL, at Angul for
Bhushan Steel, at Bellary for Jindal Steel, Alumina refinery at Raigarh for
Utkal Alumina and 13 Coal Handling Plants concurrently for various
customers,which is a landmark achievement.
MMH IC is also involved in fabrication of Coke Oven Battery equipment
including primary gas cooler for Tata steel and Bhushan steel, Blast furnace
shell, lower tower structures and hot stove shell including dome for SAIL-
Bhilai
Plant, surface condensers for power plants, N2 vessel for Bhushan steel
plant, wagon shifter for India Bulls and Pot shells for Hindalco.
Key success factor for the IC is high customer retention, operational
efficiency and consistent performance.
The deployment of Business development Head dedicatedly focusing on
International market has resulted in securing first order in Oman for MMH IC.
The IC intends to carry forward this initiative to tap the potential in the
Middle East market in ferrous and
non-ferrous segment.
Outlook
Growth in the field of Ferrous and Non-Ferrous, Power sector and
Government commitment towards infrastructure spending are going to be the key
drivers for the Metals and Minerals
business. Healthy order book gives MMH IC confidence of achieving the revenue
growth in 2012-2013.
Power Transmission
and Distribution IC
Overview
Power Transmission and distribution (PT and D) IC with its foot
prints in India and GCC Countries, is one of the major players in EPC space for
High Voltage Substations, Industrial Electrification and Power Transmission
Lines.
The Industrial Electrification Business provides turnkey Electrical and
Instrumentation and Communication solutions for major Power
plants including Thermal and Nuclear plants, Process plants and
Infrastructure projects.The Substation
and Transmission Line Businesses
cater to the needs of Power Transmission
and Distribution in Domestic and
International Market, boosted by its state of the art tower testing
facility at Kanchipuram and tower manufacturing units at Pondicherry and
Pithampur, with an installed capacity of 50,000 TPA in each location.
Over the last few years, IC has established strong presence in GCC
countries and is now set to expand to African countries.
Business
Environment
The business environment for PT and D business was challenging during 2011-2012.
Increased Competition from local and small players, volatility in currency and
commodity prices, entry of new players, delays in Power capacity additions and
Power density improvement projects imposed constraints for growth in PT and D
business.
Some of the major orders bagged by PT and D IC include transmission
lines projects from PGCIL for Varanasi to Kanpur, Raipur to Wardha, Wardha to
Aurangabad, Substation projects of Phagi from RVPN, E-BOP for 2X660
MW Thermal power plant for Abhijeeth Power in Bihar.
International orders include EHV Substations and Cabling projects from
Qatar General Electricity and Water Authority, Abu Dhabi Transmission and
dispatch Company, Substation for Abu Dhabi Port Company and EHV
substation from Ministry of Electricity
and Water, Kuwait.
PT and D IC had commissioned India’s First 765 kV Substation for Uttar
Pradesh Power Transmission Corporation Limited at Unnao, charged 1200 kV
transformer for PGCIL’s Bina test station which is a first of its kind. Other completed
projects include 400 KV GIS substation for PGCIL at Gurgaon, 15 EHV Substations
at various locations, synchronization of Unit-1 of 2 x 500MW Thermal Power
Plant for NTECL at Vellore, Electrical works of a 330MW power project for Adani
Power Limited, Mundra-Shandong electric power Construction Corporation.
PT and D IC also commissioned 400kV D/C Karcham Wangtoo- Abdullapur
Transmission line in the toughest terrain of Himachal Pradesh and 34 No’s of
Substations/Package Units and 89 KM of Overhead Transmission Line in overall
Gulf region.
Despite several challenges, IC has demonstrated an impressive growth of
about 60% in Order Intake this financial year, and is well positioned to
continue the momentum next year owing to the increased private player
participation, domestic demand for Power transmission and opportunities in
overseas. The IC is also ambitious about its GCC operations where T and D
investments in strengthening of Transmission Grids provide significant business
opportunities.
Outlook
Power shortage scenario in India is expected to intensify the focus by
the Government for improving power transmission and distribution. Utilities
like PGCIL, NTPC, etc and State Electricity Boards are likely to go-ahead with
their investments in the coming years in power transmission and distribution.
With high crude oil prices, GCC public finances will remain reassuringly
strong. The focus on infrastructure development and boost to tourism in most of
the countries in the Middle East region augur well for the business expansion
of PTandD IC.
Water and Solar
SBG
Overview
Water and Solar SBG brings under one umbrella the water and effluent
treatment (WET) business, the water technology business and Solar EPC business
to cater to the entire value chain of Water business and Solar EPC business.
The water and effluent treatment business caters waterintake,
transmission, treatment and distribution including industrial waste water
treatment and disposal and ordinary waste water treatment and reuse segments.
Water technology business by deploying advanced and complex water treatment
technologies caters to advance water and waste water treatment for very complex
treatment plants, concentrating mostly on the Middle East market.
Solar EPC business comprises Solar photovoltaic (PV), Concentrated solar
power (CSP) and Solar thermal which
are the three emerging segments of the solar business.
Business
Environment
Investments in water management systems are on the rise throughout the world.
The huge outlay envisaged in water supply, water treatment, waste water
management and desalination plants in India and International markets like
Middle East, opens up opportunities for SBG to leverage and expand the core
competencies in this area.
Some of the orders bagged in water business are Combined Water Supply
Scheme to Attur, Melur and Vellore Package I, II and III for Tamil Nadu Water
Supply and Sewerage Board, 60 Km MS Pipeline from Dhanki to Navada - NC – 34
Water Supply Project for Gujarat Water Infrastructure Limited, Development
Works of Kamal Vihar for Raipur Development Authority, Chhattisgarh and
development Works of Aerocity for Greater Mohali Area Development Authority,
Punjab.
The water business completed the projects of Water Supply Scheme to 392
villages for Ananthapur Phase III Water Supply Project, Andhra Pradesh, 50 MGD
Water Supply Scheme covering 172 KM of MS Pipeline from Narayanapura Dam to
Jindal Steel Plant at Bellary, Karnataka, Pumped Water Supply Scheme with 65 km
of MS Pipeline from Kadiyali to Kesaria for NC – 24 Water Supply Project,
Gujarat.
Solar Business Unit has set track record of putting up largest and
fastest solar power plants in India and emerged as no. 1 EPC player, providing
solutions for various solar technologies. The BU has highest rating - ‘SP1 A’
and has been certified as a highly rated RESCO (Renewable Energy Service
Company) and system integrator, enabling it to become one of the most reputed
channel partners of MNRE to execute off-grid solar power projects.
Some of the major orders executed in Solar business are are 40 MW solar
PV power plant for Reliance Power at Pokhran, Rajasthan, 10 MW solar PV tracker
based power plant for Millennium Synergy at Dhama, Surendranagar, Gujarat, 25
MW solar PV power plant for SunEdison at Charankha, Gujarat, 20 MW solar PV
power plant for Kiran Energy at Charankha, Gujarat.
Outlook
Indian Government’s consistent support to bridge the demand supply gap
in water segment coupled with the interest shown by water bodies towards water
management contracts, offer promising growth prospects for the water segment in
India. With increased pollution monitoring by regulators and almost 79% of
waste water generated not been collected, the highly inadequate waste water segment
will see large investments in the coming years.
Water Technology BU which will concentrate on the Middle East markets
predominantly has seen very favourable
prospects in Desalination and Reuse in Oman and KSA. Industries in these
countries are going for Reuse projects to meet water demand. The BU is building
up on its technology tie-ups, which is seen to be the main differentiator among
the competitors.
With further ease in external sources of financing, prices of solar
panels stabilizing, grid parity to be achieved by
2014-2015, the solar segment appears promising. With the Indian
government already having unveiled the National Solar Mission to target of
20,000 MW of solar generating capacity by the end of the 13th Five Year Plan,
there are many favourable growth prospects for solar EPC for 2012-2013.
Power IC
Overview
Power IC specializes in setting up of power generation projects for
utilities like electricity boards and independent
power producers on a lump sum turnkey basis.
Power IC undertakes coal based and gas-based projects and specialises in
the super critical technology equipments. Its in house manufacturing facilities
in the form of Boiler and Steam Turbine , pressure piping fabrication, Axial
fans and air-preheaters and Electrostatic Precipitators together with its
decades strength in the areas of project management, engineering and
construction management has made Power IC as en d to end solution provider
under one cloud in setting up the thermal based power plants, particularly of the
supercritical type.
During the year 2011-2012, the Power IC focused on timely execution of
its existing projects amid multiple challenges on the business prospects front.
The facility for manufacture of Electrostatic Precipitators was commissioned during
2011- 2012. The facilities of the joint venture with Howden UK for manufacture
of axial fans and air-preheaters were also commissioned during the year. Major
dispatches of machines and materials to the various project sites of customers
were made from the manufacturing facilities for Boiler and Steam Turbine, High
Pressure piping which were commissioned during 2010-2011. With this, the Power
IC is geared up to provide nearly 85% (by value) of equipment and services in
house.
During the year, most projects entered into the critical phase. The
Phase 2 of GMR Vemagiri gas based combined cycle power plant progressed
substantially during the year, with Unit 2 being commissioned in record time of
24 months and the mechanical completion of Unit 3 was also completed. A
significant milestone in power projects, ‘Ceiling Girder Final Jackup’ was
completed for 2 units of the JPVL Nigrie project (Madhya Pradesh) and 1 unit of
the Nabha Power project (Rajpura, Punjab).
The year 2011-2012 also saw dispatch of ODC consignments and critical
supplies for Boiler for the Koradi and Nigrie projects, notably the Generator
Stator and related assemblies. In case of APPDCL project, the 392MT Generator
Stator was successfully erected.
Currently, 3 BOP projects are under execution and will enter the
critical phase of completion in the year 2012-2013.
The Dhuvaran gas based project being constructed for Gujarat State
Electricity Corp. Ltd. saw the HRSG primary
structures executed in a record 14 days.
The challenging economic environment reflected on lower order inflow
during 2011-2012. The IC has, however,
registered substantial growth in sales and profitability.
Business
Environment
Recently, India’s installed power generation capacity exceeded the
milestone of 200,000 MW, still much lower than the installed capacity of
950,000 MW of China.India faces acute power shortages, slowing its economic
engine.
The planned capacity addition target of 76000 MW in the XII plan also
look increasingly difficult to achieve, considering the myriad problems
plaguing the power sector. Over the last 12 to 18 months, business
opportunities for players in thermal power space have shrunk dramatically,
despite high demand for power. The Power industry faced unexpected headwinds on
many fronts such as fuel shortages, difficulties in financial closure of new
projects, delayed environmental clearance, land acquisition issues and the
financial troubles of SEBs. The domestic coal and gas supply did not reach the
expected levels. The domestic market for gas-based projects
has, therefore, pretty much evaporated. The IC also faced intense
competition from BHEL, Chinese equipment suppliers as also from Korean and
European players, battling for shrinking opportunities with aggressive bidding
strategies.
The Union Budget 2012 also left the domestic power equipment industry
largely disappointed. The much sought after demand for levy of duties on import
of power equipment from China, was ignored, and the market continues to be
dominated by Chinese imports, further supported by financing from Chinese
banks.
Outlook
The Government has recently taken certain measures, which indicate its
seriousness about the problems plaguing the power sector. The recent directive
to Coal India to enter into long term Fuel Supply Agreements with power
developers provides assurance of coal supply to all plants expected to be
commissioned by March 2015. A few state electricity distribution companies have
raised their tariffs which is a big positive for their finances, and provides
the necessary impetus to both state power generation companies and IPP’s to
plan for new projects.
IC expects the first half of 2012-2013 to be challenging; the second
half, however, seems promising with some awards materializing especially from
state owned companies.
The focused initiatives taken by ICs in the overseas market will help
getting awards in Asia for gas based projects. The IC also expects orders for
civil packages in power plants from both private and public sector. With existing
order backlog and expected timely execution of all projects, the IC is
confident to sustain the growth in
sales and profitability in 2012-2013.
The IC with all its factories commissioned, offering of energy efficient
solutions, a robust technology and manpower base with relevant capabilities, is
poised to capitalize on the opportunities of the future.
Heavy Engineering
IC
Overview
Heavy Engineering (HE) IC manufactures and supplies customdesigned,
engineered critical equipment and systems to the core sector industries like
Fertiliser, Refinery, Petrochemical, Chemical, Oil and Gas, Thermal and Nuclear
Power, Aerospace and Equipment and Systems for Defence applications.
HE IC has manufacturing and fabrication facilities at Mumbai in
Maharashtra, at Baroda and Hazira in Gujarat and at Visakhapatnam in Andhra
Pradesh. At Talegaon in Maharashtra; it has a Strategic Systems Complex for
integration and testing of Weapons Systems, Sensors and Engineering Systems. A
Precision Manufacturing Facility at Coimbatore in Tamilnadu caters to the needs
of precisionmachined/ manufactured components and assemblies.
Dedicated production engineering and manufacturing process development
centres support manufacturing at each location. Detailed design and engineering
centers support Project Management teams at all locations. The IC has three
“Technology Development Centres” that operate from Powai – for new product
development in process plant equipment and for strategic equipment and systems,
as well as one focused on electronic systems/sub-systems. Defence Electronics
Systems’ design and engineering is supported through a dedicated Strategic
Electronics Centre including a new product development centre at Bengaluru in
Karnataka.
IC has warship Design Centre, which is well-equipped with latest
software tools and know-how and has developed in-house designs for surface
ships such as Fast Speed Boats, Attack Crafts, Offshore Patrol Vessels and
Corvettes.
A heavy fabrication facility, set up as a Joint Venture in Oman,
manufactures a range of equipment for the hydrocarbon and power sectors. The IC
has set up a Joint Venture Company for manufacture of heavy forgings for the
hydrocarbon and nuclear power sectors.
Business
Environment
The sluggish global economic scenario, the Fukushima nuclear incident in
Japan and lack of policy decisions on
the domestic front have adversely impacted the Order Inflow and Sales
during Financial Year 2011-2012 in most of the business segments of the IC.
Deferment/cancellation of planned projects across geographies has led to a
sharp drop in Export Orders.
Despite large scale induction programmes of the Armed Forces and the
Indian Coast Guard, not many orders were awarded to private players during the
year 2011-2012. For the Defence Marine business, competition from other Indian
Private Shipyards has intensified. The IC, however, managed to secure a
breakthrough order for the Strategic Communications Programme, which would open
up fresh avenues in this segment.
In the process plant equipment businesses, the margins are under
pressure due to aggressive pricing from competitors having idle capacities. The
localization policies of some of the countries and preference to local
suppliers by some of the EPC Companies due to socio-political compulsions, is
putting the IC at a disadvantage. International sanctions on Iran deprive us
from some good business opportunities.
Outlook
In the hydrocarbon sector, business is expected to look up in the medium
term with expected investments in refinery upgrade and revamp / modification
projects, new valueadded petrochemical products, grass root Refinery projects
in Middle-East, Turkey, Vietnam, Taiwan, Latin America, Russia and CIS
countries likely to come up in 2012-2013.
Major Oil and Gas investments including LNG are also slated in
Australia, Qatar and Russia. The Urea Investment policy cleared recently by the
Government of India and widely welcomed by Fertiliser sector is expected to
provide major impetus for investment in domestic market and some brown-field
projects are likely to be finalized in the near future. Fertiliser projects are
expected in gas-rich regions like Africa, Brazil, Middle East, Azerbaijan,
Argentina and China. Indian Fertilizer companies are also exploring
possibilities of setting up projects in some of these regions. The IC sees good
potential for EO/EG and Methanol plant equipment in China. In the backdrop of
rising coal prices vis-à-vis lower price of gas, the IC sees prospects in the
GTL market.
In the Nuclear Equipment business, post Fukushima, there is likely to be
a demand spurt for Spent Fuel storage equipment and increased opportunities for
decommissioning of Generation II plants.
The enhanced budget allocation for defence and the first wave of “Make”
programmes and “Buy and Make Indian” programmes in Defence, the IC sees major
opportunities in co-development to be followed by co-production over
medium to long term. The recent Government guidelines for establishing
joint ventures by Defence Public Sector
undertakings in the Public-Private Partnership mode usher in a range of
opportunities to the IC.
With superior technology, state of the art manufacturing facilities, HE
IC is well-poised to tap upcoming business opportunities.
Electrical and
Automation IC
Overview
Electrical and Automation (EA) IC includes low and medium voltage
switchgear products, electrical systems, energy meters, automation solutions
and a stand-alone strategic business unit - Medical Equipment and Systems.
A major strength of EAIC is its in-house design and development center
for switchgear as well as tooling facility that designs and manufactures a wide
range of high precision tools, a pre-requisite for high quality products.
The manufacturing operations of EAIC are located at Mumbai (Powai), Navi
Mumbai, Ahmednagar, Coimbatore, Vadodara and Mysore in India and its subsidiary
companies have facilities in Saudi Arabia, UAE (Jabel Ali, Dubai), Malaysia,
Indonesia and Australia outside India.
EA IC comprises of two Strategic Business Groups (SBGs) – Products SBG
and Projects SBG. Product SBG has two
Business Units (BUs) –namely, Electrical Standard Products (ESP) and
Metering and Protection System (MPS) while Projects SBG has Electrical Systems
and Equipment (ESE) and Control and Automation (CandA).
Business
Environment
The businesses of the IC witnessed subdued industrial demand in domestic
and international markets, volatile
commodity prices, tight liquidity conditions and stiff competition.
While certain stronghold sectors of ESP business such as textile,
telecom and sugar industries slowed down, agricultural, agro-based industry and
electrical sectors witnessed good growth. The demand from Tier 2-3 cities
and retail segment also showed improvements. The market for energy
meters grew with good demand for single phase and 3-phase meters.
In spite of these odds, EAIC managed to earn double-digit growth, and
worked around achieving excellence in many operational areas in order to
maintain its competitive capabilities.
Outlook
With Government’s focus on Agricultural sector, the growth momentum in
Agri segment is expected to continue. Some of the industry segments like Steel,
Cement, Sugar and other agro-based industries are likely to see enhanced growth
which will benefit ESP business. Some of their focused International markets
have also started showing signs of recovery. Retail segment is also expected to
continue the growth momentum. It is also expected that the energy consumption
for commercial and residential applications will grow that will trigger a
positive growth for ESP business.
Most electrical systems are expected to use automation – in industries,
buildings and homes for greater control, comfort and convenience. ESP is
well-positioned to capture these opportunities.
Meter market is expected to grow albeit at a lower rate than 2011-2012.
The market will witness a technology change with utilities more open to
obtaining data from remote. This will increase the requirement for meters with
built-in radio.
Machinery and
Industrial Products IC
Overview
Machinery and Industrial Products (MIP) IC comprises three Strategic
Business Groups (SBGs) – Construction and Mining Machinery, Industrial
Machinery and Industrial Products.
Construction and
Mining Machinery SBG C
onstruction and Mining Machinery SBG markets and renders support for
Construction and Mining Equipment. The SBG comprises Construction and Mining
Business Unit (CMB) which markets Equipment manufactured by LandT-Komatsu Limited,
India and the entire range of Equipment available from Komatsu worldwide. CMB
also represents Scania, Sweden for their Mining Tipper Trucks. L and T-Komatsu
Limited (LTK) is a 50:50 joint venture between the Company and Komatsu that
manufactures Hydraulic Excavators and Hydraulic Components, all of which are
distributed in India by CMB.
Industrial
Machinery SBG
Industrial Machinery SBG consists of Machinery for Paper and Pulp,
Crushing, Mining and Mineral processing industries, Steel, Rubber and Plastic
Processing Industries and also castings for Wind power and other engineering
sectors. Industrial Machinery SBG comprises of Rourkela Campus Kansbahal plant,
Foundry business unit, Rubber Processing Machinery Unit.
Rourkela Campus, which includes Kansbahal Plant, undertakes Design,
Manufacturing and Marketing of Mineral Crushing Solutions (Limestone, Coal and
other minerals), Surface Miners, Specialised Equipment for Steel Plants (such
as Torpedo Ladle Cars) and Machinery for Paper and Pulp. Foundry Business Unit
comprises two foundries, one at Coimbatore and the other at Kansbahal in
Rourkela Campus.
The state-of-the-art Casting Manufacturing Unit at Coimbatore has an
annual capacity of 30,000 T to manufacture large sized SG Iron and special Iron
castings for Wind power and other Engineering sectors. The Foundry can produce
castings in the weight range of 3T to 28T each.
The other Foundry operates at Kansbahal Works, Orissa (Rourkela Campus)
manufacturing Steel, Alloy Iron, SG
Iron and Grey Iron castings and also addresses requirement of large Wear
and Abrasion resistant castings for Power and Cement sectors.
Industrial Machinery SBG also includes LTM Business Unit (LTMBU) which
manufactures and markets Rubber Processing Machinery for the tyre industry
across the globe. Currently, the Unit has manufacturing facilities at
Manapakkam, Chennai and Kancheepuram near Chennai.
The IC has set up through the subsidiary companies manufacturing
facilities for various businesses such as Rubber Processing Machinery, Internal
Mixes and Twin Screw Roller Head Extruders for Tyre Industry and Plastic
Injection Moulding Machines.
Industrial
Products SBG
Industrial Products (IP) SBG consists of businesses related to
Industrial Valves, Welding Equipment and Products and Cutting tools. The IP SBG
comprises Valves business and Industrial Cutting Tool business.
Valves Business Unit (VBU) markets valves and allied products
manufactured by Audco India Limited (AIL), a JV Company and Larsen and Toubro
(Jiangsu) Valve Company Limited (LTJVCL), China, a Subsidiary Company and a few
Indian and Overseas manufacturers. VBU is one of the few select suppliers of
valves for global oil majors.
The IC has also set up Valves Manufacturing Unit (VMU) in Coimbatore is
responsible for manufacturing of Valves for Power Sector through its
Manufacturing Plant at Coimbatore as well as Contract Manufacturing of Valves
in ranges not fully supported by AIL; besides providing the technology support
for new product development of Valves.
MIP IC has under its fold the business of welding products housed in
EWAC Alloys Limited (EWAC), a wholly owned subsidiary of LandT. It has
manufacturing facilities at Powai and Ankleshwar. The principal products and
services comprise Maintenance and Repair (MandR) consumables, specification
grade electrodes, flux-cored welding wires, wear plates/parts, welding and
cutting equipment, Terro Cote Lab services etc.
Industrial Cutting Tools (INP) Business of MIP IC provides metal cutting
solutions to the Indian manufacturing industry covering automobile, engineering
and machine tool segments through marketing of Industrial Cutting tools
manufactured by ISCAR Limited, Israel.
Product Development Center (PDC) of MIP IC based at Coimbatore renders
Engineering and Product Development support across all the businesses of the
IC.
Business
Environment
The Construction Equipment Industry has sustained the performance
largely on account of the road sector and
general construction activities. IC’s foray into large size Mining
Equipment has been successfully received by
the market and the business is strengthening its position in this
market.
Capacity additions in Indian Cement and Power Sector during 2011-2012 helped
realise revenue growth for Kansbahal’s Industrial Machinery business through
supply of Limestone and Coal Crushing Plants. Adoption of more energy-efficient
processes in Indian Steel industry also saw continued demand for Torpedo Ladle
Cars. Renewed focus by the State Governments on non-conventional energy has
favoured investment in wind turbines. Automotive and Engineering Sectors fared
better and showed good growth during 2011-2012 resulting in better performance
in both their EWAC and Cutting tools business.
The year 2011-2012 saw slowing down of the domestic market due to
over-capacity in the conventional Car and Truck tyre market. However, the
domestic market experienced green field investment in Off-the Road tyre. Rubber
Machinery Business secured a large order for OTR tyre curing presses against
tough Chinese competition for this project. Rubber Machinery Business has been
successful in getting project orders from some of the Japanese and European
tyre companies for supplies to their sites in Brazil and Russia. LTM BU moved
to 8th Rank in the Global Rubber Machinery business in 2011-2012 from 13th Rank
a year ago. LTM BU continues to enjoy a majority market share in the domestic
market and over 10% share in the Global market for the Tyre Curing Presses.
Sustained oil and gas project activity in the Middle East, North Africa
and Australia provided good opportunity for Valves Business. Long-term
relationships with key end-users and EPCs in the Middle East and Far East were
leveraged to enhance their market presence. However project investments in
North America and Europe continued to be sluggish. Though activity in domestic
mid and downstream oil and gas segments were low, fertilizer and power sectors
offered potential for the valves business. The renewed thrust in the projects
has helped the IC achieve the projected order booking by closely working with
EPCs. With rationalized product portfolio, IC has been able to address the
Power segment requirements in India and get breakthrough order for Ultra High
Pressure valves (above #2500 rating) for the supercritical power plant in
India. Valves business also expanded into new segment of defence.
Despite the slow down in the mining activity in India during the year
2011-2012, CMB managed to maintain its leadership position in the Construction
and Mining Equipment Market. During the year 2011-2012, CMB increased its
presence in large size mining machinery arena by supplying more than 100 dump
trucks of various sizes.
Outlook
With renewed focus on infrastructure development in India, the demand
for Hydraulic Excavators is expected to improve. 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. Resolution of environmental concerns and land acquisition issues by
the government hold the key for business prospects from the mining sector. CMB
is well placed to take advantage of the available opportunities through supply
of large size Mining Equipment both to the public and private coal producing
companies.
Demand for Industrial Machinery from Mineral Processing and
Infrastructure segments continue to show an upward trend. This should give us
good business opportunities for KBL in their Crushing and Screening segment as
well as Wheel Loaders.
In the year 2012-2013, it is expected that the Domestic Tyre Companies
would reach full utilization of installed capacity and may look for further
expansion opportunities.
Augmentation in power generation and distribution capacity in India is
expected to provide promising prospects to the Valves business.
Overall, moderate improvement in the Industrial growth indices in the
coming year are expected to enable their businesses to register better growth
trends.
Integrated
Engineering Services
Overview
Integrated Engineering Services (IES) has registered a three year CAGR
of 51% and is today acknowledged as one of the emerging leaders in the Indian
Engineering Research and Development (ERandD) service segment. Recent analyst
studies on Global Service Provider Ranking for 2011 have positioned IES as
highest amongst the pure play Engineering Services companies. For Industrial
Products Domain, IES has been ranked in the Leadership Zone. This is a true
reflection of their commitment to be on the fast track of being the “BEST” in
engineering outsourcing service industry.
IES head office is at Vadodara, India with design centers located in
cities of Vadodara, Bengaluru, Chennai, Mysore and Mumbai. IES has a global
footprint with offices in the US, Europe, Middle East and Asia Pacific.
IES’s service offerings include product design, analysis, prototyping, testing,
embedded system design, manufacturing engineering, plant engineering and
construction management and asset information management using cutting-edge
Computer Aided Design / Computer Aided Manufacturing / Computer Aided
Engineering technology in various domains. IES has supported innovation through
co-authoring of over 70 patents.
IES has alliances and partnerships with AUTOSAR (Automotive Open System
Architecture), National Instruments, Intel, GENIVI. IES maintains high quality
and data security standards. IES was the first in the world which received
ISO/IEC 27001:2005 certification for IT Security Management Systems. IES is an
ISO 9001:2008 and a CMMI level 5 certified organization.
IES has marquee clientele in automotive, aerospace, industrial products,
medical devices, consumer electronics,
consumer packed goods, oil and gas, etc. and over 30 of its clients are
Fortune 500 companies.
Business
Environment
Analysts are highly optimistic on the prospects of outsourcing business
to India. With the economic slowdown, there is a pressure on American and
European companies to leverage outsourcing for getting the benefits of value
added services and cost arbitrage.
Engineering Research and Development (ERandD) outsourcing to India has
shown remarkable growth from $8.3 Bn in 2009 to $11.3 Bn in 2011. The
Engineering Outsourcing market to India is expected to grow to $ 40-$ 45
billion by the year 2020 with a CAGR of 16%. (Source: Nasscom) Engineering
Service Industry is on the cusp of a significant change, shifting to
knowledge-intensive and value-added services that call for a new way of
functioning. Besides cost arbitrage, the need to scale rapidly, greater focus
on core competencies, enhanced productivity, competition and reduced time to
market are driving the business.
Revenue from North America contributes 70% of the total revenues, the
visa policies of North America especially USA, therefore, have maximum impact
on IES’s business. To minimize this effect and to meet the business
requirements, IES is also recruiting local talent.
IES being in an export oriented service business, any fluctuation in the
foreign currency exchange rate has a considerable impact on its performance.
IES has undertaken a range of measures like hedging to minimize these exchange
fluctuation impact.
ER and D outsourcing sector is predominantly a project based business.
IES is actively working to increase its annuity business portfolio and some of
the significant long term contracts won during the year are a testimony to that.
A significant growth in ER andD market will be in the industry sectors of
Transportation, Industrial Products and Plant Engineering. These sectors
together will account for more than 70% of ER D market. IES is uniquely
positioned to have strong presence in each of these industry sectors as
compared to their domestic and international competitors.
Outlook
Global trends in the economy today motivate the people in general to
invest in businesses which have been growing significantly over the years.
Engineering Services is one such industry. During the current fiscal year, IES
has been able to achieve a revenue growth of 60%. To cater to this growth, IES
has added more than 1200 employees in the year and more than 50 clients
including 15 fortune 500 companies.
With the initiatives taken in 2011-2012, actions planned in the next
year and addition of new geographies, IES is confident of achieving impressive
growth in the 2012-2013.
Revenue from
Operations
Gross Revenue from Operations for the year at Rs.537380.000 Millions
registered a growth of 21% over 2010-2011 on the back of healthy Order Book at
the start of the year. Most of the projects progressed well as scheduled, in
particular, EPC Power, Buildings and Factories and Hydrocarbon businesses
contributed significantly to the Company’s Revenue growth. The product
businesses, however, recorded a modest revenue increase with sluggish
industrial off-take during the year 2011-2012. International Revenue grew by
38% constituting 12% of the total Revenue, mostly contributed by various
projects under execution in Power Transmission and Distribution, Infrastructure
and Oil and Gas sectors in GCC countries and sales by Integrated Engineering
Services business.
CONTINGENT LIABILITIES
(Rs. In Millions)
|
|
31.03.2012 |
|
(a) Claims against the Company not acknowledged as debts |
1981.500 |
|
(b) Sales-tax liability that may arise in respect of matters in appeal |
1070.400 |
|
(c) Excise
duty/service tax liability that may arise in respect of matters in appeal/challenged by the Company in WRIT |
285.900 |
|
(d) Income-tax
liability (including penalty) that may arise in respect of which the Company is in appeal |
1983.800 |
|
(e) Corporate guarantees given on behalf of Subsidiary Companies |
15704.700 |
UNAUDITED STANDALONE FINANCIAL RESULT FOR QUARTER ENDED JUNE 30, 2012
(Rs. In Millions)
|
|
Particulars |
30.06.2012 |
|
|
|
|
|
1 |
Gross Sales / Revenue from operations |
120783.300 |
|
|
Less: Excise duty |
1229.800 |
|
|
|
119553.500 |
|
2 |
Expenses: |
|
|
a) |
i) Consumption of raw materials,
components, and stores, spares and tools |
37200.500 |
|
|
ii) Sub-contracting charges |
24905.000 |
|
|
iii) Construction materials consumed |
20891.400 |
|
|
iv) Purchases of stock-in-trade |
5016.600 |
|
|
v) Changes in inventories of finished
goods, work-in-progress and stock-in-trade |
(5115.100) |
|
|
vi) Other manufacturing, construction and
operating expenses |
10624.200 |
|
b) |
Employee benefits expense |
9474.300 |
|
c) |
Sales, administration and other expenses |
5686.700 |
|
d) |
Depreciation, amortisation and obsolescence |
1919.400 |
|
|
|
110603.000 |
|
|
|
|
|
3 |
Profit from operations before other income,
finance costs and exceptional items (1-2) |
8950.500 |
|
4 |
Other income |
6058.400 |
|
5 |
Profit from ordinary activities before
finance costs and exceptional items (3+4) |
15008.900 |
|
6 |
Finance costs |
2284.100 |
|
7 |
Profit from ordinary activities after
finance costs but before exceptional items (5-6) |
12724.800 |
|
8 |
Exceptional items [refer note (i)] |
(383.400) |
|
9 |
Profit from ordinary activities before tax
(7+8) |
12341.400 |
|
10 |
Provision for taxes: |
|
|
a) |
Provision for current tax |
3759.500 |
|
b) |
Provision for deferred tax |
(54.600) |
|
|
|
3704.900 |
|
11 |
Net profit after tax from ordinary
activities (9-10) |
8636.500 |
|
12 |
Extraordinary items |
- |
|
13 |
|
8636.500 |
|
14 |
Paid-up equity share capital (face value of
share: ? 2 each) |
1225.600 |
|
15 |
Reserves excluding revaluation reserve |
|
|
|
Earnings per share (Not annualised): |
|
|
16 |
Basic EPS before extraordinary items (?) |
14.10 |
|
17 |
Diluted EPS before extraordinary items (?) |
14.00 |
|
18 |
Basic EPS after extraordinary items (?) |
14.10 |
|
19 |
Diluted EPS after extraordinary items (?) |
14.00 |
|
20 |
Profit
after tax from normal operations Q.e.excluding exceptional and extraordinary
items) |
88955 |
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
1 |
Public shareholding: |
|
|
|
- Number of shares ('000s) |
593280 |
|
|
- Percentage of shareholding |
96.82% |
|
2 |
Promoters and promoter group shareholding
[refer note (iii) ] |
Nil |
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
3 months ended |
|
|
|
June 30, 2012 |
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
13 |
|
|
Disposed of during the quarter |
13 |
|
|
Remaining unresolved at the end of the
quarter |
Nil |
|
Notes : |
|
|
Notes:
Exceptional item during the
quarter ended June 30, 2012 represents compensation to employees pursuant to
Voluntary Retirement Scheme.
The Company, during the
quarter ended June 30, 2012, has allotted 3,80,562 equity shares of Rs.2 each, fully paid up, on exercise of stock
options by employees, in accordance with the Company's stock option schemes.
The promoter and promoter
group shareholding is nil and accordingly the information on shares pledged /
encumbered is not applicable.
Figures for the previous
periods have been re-grouped / re-classified to conform to the figures of the
current periods.
The above result have been
subjected to limited Review by the statutory Auditor, reviewed by the Audit
Committee and approved y the Board of Director at its meeting held on July 23,
2012.
SEGMENT-WISE REVENUE, RESULT AND CAPITAL
EMPLOYED IN TERMS OF CLAUSE 41 OF THE LISTING AGREEMENT:
(Rs. In Millions)
|
Particulars |
30.06.20121 |
|
|
|
|
Gross segment revenue |
|
|
1
Engineering and Construction |
104897.600 |
|
2
Electrical and Electronics |
7602.700 |
|
3
Machinery and Industrial Products |
5752.900 |
|
4 Others |
3630.200 |
|
Total |
121883.400 |
|
Less: Inter-segment revenue |
1100.100 |
|
Net
Segment Revenue |
120783.300 |
|
|
|
|
Segment result (Profit before interest and
tax) |
|
|
1
Engineering and Construction |
9882.900 |
|
2
Electrical and Electronics |
403.600 |
|
3
Machinery and Industrial Products |
731.300 |
|
4 Others |
1043.600 |
|
Total |
12061.400 |
|
Less: Inter-segment margins on capital jobs |
77.200 |
|
Less: Interest expenses |
2284.100 |
|
Add: Unallocable
corporate income net of expenditure |
2641.300 |
|
Profit before tax |
12341.400 |
|
|
|
|
|
|
|
(Segment assets less segment liabilities) |
|
|
1
Engineering and Construction |
132536.700 |
|
2
Electrical and Electronics |
13354.600 |
|
3
Machinery and Industrial Products |
6700.900 |
|
4 Others |
6447.600 |
|
Total capital employed in segments |
159039.800 |
|
Unallocable corporate assets less corporate liabilities |
215332.700 |
|
Total capital employed |
374372.500 |
Notes:
Segments have been identified in accordance with Accounting Standard (AS) 17 on Segment Reporting, considering the risk/return profiles of the businesses, their organisational structure and the internal reporting systems.
Segment composition: Engineering and
Construction comprises execution
of engineering and construction projects in India / abroad to provide solutions
in civil, mechanical, electrical and instrumentation engineering (on turnkey
basis or otherwise) to core/infrastructure sectors including railways,
shipbuilding and supply of complex plant and equipment to core sectors. Electrical and Electronics comprises manufacture and sale of low and
medium voltage switchgear components, custom built low and medium voltage
switchboards, electronic energy meters/protection (relays) systems, control and
automation products and medical equipment. Machinery and Industrial
Products comprises
manufacture and sale of industrial machinery and equipment, manufacture and
marketing of industrial valves, construction equipment and industrial products.
Machinery and Industrial Products also includes marketing of welding products
in the previous year. Others comprise property development and integrated engineering services.
Segment revenue comprises sales and
operational income allocable specifically to a segment. Unallocable expenditure
mainly includes expenses incurred on common services provided to segments and
other corporate expenses. Unallocable income primarily includes interest
income, dividends and profit on sale of investments. Corporate assets mainly
comprise investments
In the Engineering and Construction segment,
sales and margins do not accrue uniformly during the year. Hence the
operational / financial performance of aforesaid segment can be discerned only on
the basis of figures for the full year.
PRESS RELEASES
L and T Construction Secures Orders Valued Rs.20080.000 Millions
Mumbai, August 13, 2012: L and T Construction has won new orders valued over Rs.20080.000 Millions across various business segments in July and Aug 2012.
The Power Transmission and Distribution IC has secured new orders worth Rs.6070.000 Millions in both domestic and international markets. On the domestic front, a new order has been bagged from Chamundeshwari Electricity Supply Corporation Limited (CESC) for linking of Nirantara Jyoti Yojana feeders to rural DTC's of Villages for providing continuous power supply to Domestic/Commercial/Power Installations at Hassan, HN Pura and CR Patna Divisions. Another order has been received from an esteemed customer for construction of 220kV and 765 kV switchyard in Uttar Pradesh.
On the international front a major order has been secured from a reputed customer in UAE for Supply and Installation of new 220/33 kV Grid Station.
The Buildings and Factories IC has secured new orders worth Rs.6740.000 Millions which include orders from Airport Authority of India for the construction of a new integrated terminal building and allied works at Chandigarh Airport. The other order is for the construction of an IT campus at Hyderabad.
In the Water and Effluent Treatment business unit, L and T Construction has secured a turnkey order worth Rs.1550.000 Millions from Greater Mohali Area Development Authority, Mohali for construction of Roads, PH services (Water Supply, Sewerage, STP, Storm drainage) electrical services (HT, LT, Street Lighting works) including development of parks and horticulture works.
In yet another development the Infrastructure IC has bagged order worth Rs.2750.000 Millions from Kolkata Metropolitan Development Authority for design and construction of four lane flyover, rail overbridges and viaduct at various locations in Kolkata.
L and T Construction has also secured additional orders worth Rs.970.000 Millionse from various ongoing projects across business units.
Background:
Larsen and Toubro is a USD 12.8 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. It is one of the largest and most respected companies in India’s private sector. A strong, customer–focused approach and the constant quest for top-class quality have enabled L and T to attain and sustain leadership in its major lines of business over seven decades.
Performance for the quarter ended June 30, 2012
Order inflow grows
21%
Revenue up 26%
Recurring PAT
increases by 19%
Mumbai, July 23, 2012: Larsen and
Toubro reported Gross Revenue of Rs.120780.000 Millions
for the quarter ended June 30, 2012, registering 26 % y-o-y growth, on the back
of a healthy order book and good progress in execution of various jobs.
International Sales constituted 17 % of the total revenue.
Order inflow at Rs.195940.000 Millions recorded an impressive y-o-y growth of 21%, despite the
weak investment sentiment and prevailing global uncertainties. The major orders
came from Infrastructure, Building and Factories and Power Transmission and
Distribution sectors.
Order Book stood at Rs.1530950.000
Millions as at June 30, 2012.
Recurring Profit after Tax (PAT)
for the quarter stood at Rs.8900.000 Millions
recording an increase of 19% over the corresponding quarter of the previous
year amidst volatile market conditions. After considering certain exceptional
item of expenditure, the overall PAT for the quarter stood at Rs.8640.000 Millions.
Engineering and Construction (E and C) Segment
The EandC Segment achieved Net
Segment Revenue of Rs.104410.000 Millions for the
quarter ended June 30, 2012 registering a y-o-y growth of 30%. Execution of
most of the projects progressed well as scheduled. Higher level of activity in
Power, Hydrocarbon and Minerals and Metals jobs, in particular, contributed
significantly to the sales growth of the segment during the quarter.
Notwithstanding the subdued
economic environment leading to deferment of capital expenditure and expansion
decisions, the businesses of the E and C Segment garnered fresh orders of
Rs.178040.000 Millions during the quarter,
registering a smart y-o-y growth of 24%.
The Order Book of the Segment
stood at Rs.1506560.000 Millions as at
June 30, 2012. The Segment recorded Operating Margin of 10.9% reflecting the
relative job mix during the quarter.
Electrical and Electronics (E and E) Segment
E and E Segment recorded Net
Segment Revenue of Rs.7230.000 Millions for the
quarter ended June 30, 2012, recording a moderate y-o-y growth as a result of
sluggish industrial off-take.
Excluding the impact of
exceptional item, the Segment recorded an improved Operating Margin at 11.9%
during the quarter, despite intense competitive pressures.
Machinery and Industrial Products (MIP) Segment
During the quarter ended June 30,
2012, MIP Segment recorded Net Segment Revenue of Rs.5560.000 Millions. International sales constituted 18% of the total revenue.
The Operating Margin of the segment was 15.5% during the quarter mainly
contributed by Construction Machinery and Valves businesses.
“Others” Segment
This segment includes Integrated
Engineering Services which recorded Revenue of Rs.2950.000 Millions, registering a growth of 69% over the corresponding
quarter of the previous year. The Operating Margin of the business improved to
32.3% vis-à-vis 19.6% recorded in the corresponding quarter of the previous
year due to operating leverage and favourable movement in foreign exchange
rates.
Outlook
Delayed policy measures, slow-down
in industrial production, elevated interest rates and liquidity concerns have
moderated the growth prospects in the domestic economy. This together with the
uncertainties in the global markets, have impacted the investment sentiment,
restricting thereby the business opportunities for capital goods industry.
Going forward, the ensuing months
could witness renewed focus on economic reforms for improving the investment
momentum and attracting capital inflows. On the international front, select
markets in the Middle East, South East Asia and CIS countries hold promising
prospects, where the Company is strengthening its presence.
With its enhanced capacities and presence in the diverse sectors, the Company is in a good position to harness the opportunities as they emerge. The superio r execution capabilities and growing order book provide visibility to sustained revenue growth in the medium term.
L and T Expands Capacity with New Electrical and Automation Facility in
Vadodara
Mumbai, July 12, 2012: Larsen and Toubro today inaugurated its manufacturing facility for switchgear products at Vadodara, on an 18-acre plot adjacent to L and T Knowledge City. This is a capacity expansion initiative for the business of L and T’s Electrical and Automation (E and A), leaders in low voltage switchgear in India. E and A will manufacture Air Circuit Breakers (ACBs) and Moulded Case Circuit Breakers (MCCBs) at this facility.
In an area of close to 27,000 sq metres under a single roof, the facility houses modules for the assembly lines for circuit breakers - ACBs and MCCBs - along with the shops for press working, moulding and tooling. A development centre to provide research, development and engineering for circuit breakers will also be located here.
Speaking on the occasion, Mr. A. M. Naik, Chairman and Managing Director, L and T said: “The new Vadodara switchgear facility is an investment for the future. It forms part of the wide ranging initiatives we are taking forward in the run-up to our Platinum Jubilee. The facility at Vadodara will enable us to elevate switchgear manufacturing technology to the next level, and advance further in our goal to upgrade India’s manufacturing capabilities.”
A smart mix of labour and automation has been deployed that would enhance productivity by 2.5 times. All critical-to-quality steps have error-free assembly. The lines are equipped to produce circuit breakers of different frames and several ratings from 16A to 6300A.
Speaking at the inauguration, Senior Vice President and Head of Electrical and Automation, Mr. S. C. Bhargava, said: “This facility is an expansion of capacity that will augment E and A’s competitive strengths. We intend to extend our manufacturing expertise to suppliers and support the development of a high quality manufacturing environment in and around Vadodara.”
The manufacturing facility has
applied for ‘Green Factory’ certification in line with the Indian Green
Building Council (IGBC) norms and audited for the ISO 9001 certification. All
material used in the construction are green-certified and eco-friendly.
Environment management measures include tree plantation, rain water harvesting
and zero discharge of water. The new facility makes optimum utilization of
natural resources of energy with sun light being effectively used to avoid any
electric lighting on the shop floor during the day. Wet FDVS system has been
installed to maintain a friendly temperature inside the factory.
About L and T Electrical and Automation:
L and T Electrical and
Automation is India’s leading manufacturer of low and medium voltage
switchgear, with an established reputation for product quality, innovation and
strong customer support. With a wide range of electrical products and
automation solutions, it meets the power distribution and control needs on
industries, utilities, infrastructure, building and agriculture segments. It
has five manufacturing facilities in India and six overseas facilities located
in the Gulf region, South – East Asia and Asia Pacific.
L and T Background:
Larsen and Toubro is a USD 12.8 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. It is one of the largest and most respected companies in India’s private sector. A strong, customer–focused approach and the constant quest for top-class quality have enabled L and T to attain and sustain leadership in its major lines of business over seven decades.
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.55.45 |
|
|
1 |
Rs.87.98 |
|
Euro |
1 |
Rs.69.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
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 |
NO |
|
--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 |
- |
PRIVATE
& CONFIDENTIAL : This information is provided to you at your
request, you having employed MIPL for such purpose. You will use the
information as aid only in determining the propriety of