MIRA INFORM REPORT
|
Report Date : |
12.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
LARSEN AND TOUBRO LIMITED |
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Registered
Office : |
L and T House,
Ballard Estate, Mumbai – 400001, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
07.02.1946 |
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Com. Reg. No.: |
11-004768 |
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Capital
Investment / Paid-up Capital : |
Rs. 1230.800 Millions |
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CIN No.: [Company Identification
No.] |
L99999MH1946PLC004768 |
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PAN No.: [Permanent Account No.] |
AAACL0140P |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Seller of Electrical and Electronics, Machinery and Industrial Products, and also provide Engineering and Construction Projects. |
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No. of Employees
: |
Not Available |
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 |
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Maximum Credit Limit : |
USD 1165000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well
established, diversified and a highly reputed company having an excellent track
record. Financial position of the company is good. Fundamentals are strong
and healthy. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can
be considered excellent for any 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the outbreak
of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood opportunities
for the millions living in poverty as also the large contingent of young people
joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Inflation - Linked capital indexed non convertible
debenture issue : AAA |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
May 20, 2013 |
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/ Head Office : |
L and T House, Ballard
Estate, Mumbai – 400001, Maharashtra, India |
|
Tel. No.: |
91-22-22618181/
22618182/ 22685656/ 67525656 |
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Fax No.: |
91-22-22620223/
22617480/ 22685893/ 67525858/ 67525893/ 55525858 |
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E-Mail : |
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Website : |
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Corporate Office
1: |
C Block, Gate No. 1, L and T Powai Campus, |
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Tel. No.: |
91-22-67050505 |
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Fax No.: |
91-22-67051462 |
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E-Mail : |
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Corporate Office
2: |
Kiadb Industrial Area, Hebbal Hootagalli, |
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Tel No.: |
91-821-6616161 |
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Fax No.: |
91-821-2402813 |
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Headquarter/
Holck-Larsen Centre/ Engineering Design and Research Centre : |
22 Mount Poonamallee Road, Manapakkam P.B.No.979, Chennai - 600089, Tamilnadu, India |
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Tel No.: |
91-44-22526000 |
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Fax No.: |
91-44-22493317 |
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E mail: |
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Headquarter/ Engineering,
Design & Research Centres :
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Kanak Building, 41, Jawaharlal Nehru Road, Kolkata - 700071, West
Bengal, India |
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Tel. No.: |
91-33-22882601 |
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Fax No.: |
91-33-22881225 |
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E-Mail : |
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ECC
Division : |
ECC Division, Mial Project Office – North Block II, 6th Floor, Gate
No. 1, Powai, Mumbai – 400072, Maharashtra, India |
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Factory 1 : |
TLT Works, Plot No. 158-B, Sector III, Pithampur, District Dhar -
454774, Madhya Pradesh, India |
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Tel. No.: |
91-7292-256317/ 431 |
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Fax No.: |
91-7292-256316 |
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E-Mail : |
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Factory 2 : |
TLT Works, Mailam Road, Sedarapet, Pondicherry 605111, India |
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Tel. No.: |
91-413-2672500 |
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Fax No.: |
91-413-2677727 |
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E-Mail : |
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Factory 3 : |
167, Neervalur Village, Kancheepuram - 631502, Tamilnadu, India |
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Tel. No.: |
91-4112-27248383/ 93/ 94 |
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Fax No.: |
91-4112-27248383/ 290 |
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E-Mail : |
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Factory : |
Also located at
: v Faridabad v Kandla v Vadodara v Ankleshwar v Hazira v Jafrabad v Kovayya v Nashik v Pune v Ahmednagar v Ratnagiri v Tadipatri v Bangalore v Mysore v Awarpur v Jharsuguda v Kansbahal v Ranoli (Baroda) v Visakhapatnam v Haldia |
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Regional Offices
: |
·
NCL Bandra Premises, Plot No. C/6, Bandra – Kurla
Complex, P. O. Box No. 8119, Bandra (East), Mumbai - 400051, Maharashtra,
India ·
2, Saki Vihar Road, P. O. Box No. 8901, Mumbai –
400072, Maharashtra, India ·
1/FL, Laxminarayan Complex, 10/1, Palace Road, P.
O. Box 122, Bangalore – 560002, Karnataka, India Also located at:
·
·
·
Kolkata ·
Vadodara ·
Ahmedabad ·
Arakkonam Pune ·
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Chennai ·
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Overseas Offices : |
Located at: ·
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Sultanate of ·
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Sharjah ·
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Area Offices : |
Located at: ·
Ahmedabad ·
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Chennai ·
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Kolkata ·
Hyderabad ·
Pune ·
Nagpur |
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Branch Offices : |
Located at : ·
Jaipur ·
Guwahati ·
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Vadodara ·
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Jamshedpur ·
Guwahati ·
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Kochi |
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Engineering/
Marketing Office : |
12/4, Delhi Mathura Road, Near Sarai Khawaja Chowk, Faridabad –
121003, Haryana, India |
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Tel No.: |
91-129-4291000/ 4291651/ 4291766 |
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Fax No.: |
91-129-4291222 |
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Email: |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. A. M. Naik |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. K. Venkataramanan |
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Designation : |
Chief Executive Officer and Managing
Director |
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Name : |
Mr. M. V. Kotwal |
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Designation : |
Whole-time Director and President (Heavy Engineering) |
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Name : |
Mr. S. N. Subrahmanyan |
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Designation : |
Whole-time Director and Senior Executive Vice President
(Infrastructure and Construction) |
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Name : |
Mr. R. Shankar Raman |
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Designation : |
Whole-time Director and Chief Financial
Officer |
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Name : |
Mr. Shailendra Roy |
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Designation : |
Whole-time Director and Senior Executive Vice President (Power
Development and Corporate Affairs) |
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Name : |
Mr. S. Rajgopal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. S. N. Talwar |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. M. Chitale |
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Designation : |
Non-Executive Director |
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Name : |
Mr. N. Mohan Raj |
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Designation : |
Nominee — LIC |
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Name : |
Mr. Subodh Bhargava |
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Designation : |
Non-Executive Director |
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Name : |
Mr. A. K. Jain |
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Designation : |
Nominee – SUUTI |
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Name : |
Mr. M. Damodaran |
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Designation : |
Independent Director |
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Name : |
Mr. Vikram Singh Sarker |
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Designation : |
Independent Director |
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Name : |
Mr. Sushobhan Sarker |
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Designation : |
Nominee of LIC |
KEY EXECUTIVES
|
Name : |
Mr.
N. Hariharan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 15.07.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
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(B) Public
Shareholding |
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|
142178989 |
15.87 |
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|
153025082 |
17.08 |
|
|
125245 |
0.01 |
|
|
46928064 |
5.24 |
|
|
148572349 |
16.59 |
|
|
9462 |
0.00 |
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|
9462 |
0.00 |
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|
490839191 |
54.80 |
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|
|
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|
66757232 |
7.45 |
|
|
|
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|
199118817 |
22.23 |
|
|
15283891 |
1.71 |
|
|
123764606 |
13.82 |
|
|
388662 |
0.04 |
|
|
7779731 |
0.87 |
|
|
111606174 |
12.46 |
|
|
3986607 |
0.45 |
|
|
3432 |
0.00 |
|
|
404924546 |
45.20 |
|
Total Public
shareholding (B) |
895763737 |
100.00 |
|
Total (A)+(B) |
895763737 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
29119990 |
0.00 |
|
|
29119990 |
0.00 |
|
Total (A)+(B)+(C) |
924883727 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Electrical and Electronics, Machinery and Industrial Products, and also provide Engineering and Construction Projects. |
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 : |
Not Available |
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Bankers : |
·
State
Bank of India ·
Bank
of India ·
Central
Bank of India |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Sharp and Tannan Chartered Accountants |
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Solicitors: |
Manilal Kher Ambalal and Company |
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Wholly owned
Subsidiary : |
·
Tractor Engineers Limited ·
Spectrum Infotech Private Limited ·
L and T-Valdel Engineering Limited ·
L and T Shipbuilding Limited ·
L and T Electricals and Automation Limited ·
HI Tech Rock Products and Aggregates Limited ·
L and T Seawoods Private Limited ·
L and T Natural Resources Limited ·
L and T Plastics Machinery Limited ·
L and T Technologies Limited ·
L and T Solar Limited ·
L and T PowerGen Limited ·
Ewac Alloys Limited ·
L and T Infra and Property Development Private
Limited $$ ·
L and T Realty Limited (formerly known as L and T
Realty Private Limited) ·
L and T General Insurance Company Limited ·
L and T Aviation Services Private Limited ·
Larsen and Toubro Infotech Limited ·
L and T Capital Company Limited ·
L and T Power Development Limited ·
Larsen and Toubro LLC ·
Larsen and Toubro International FZE |
|
|
|
|
Subsidiary of L
and T Infrastructure Development Projects Limited # : |
L and T Rajkot - Vadinar Tollway Limited |
|
|
|
|
Wholly owned Subsidiary
of L and T Power Development Limited : |
·
L and T Uttaranchal Hydropower Limited ·
L and T Arunachal Hydropower Limited ·
L and T Himachal Hydropower Limited ·
Nabha Power Limited |
|
|
|
|
Wholly owned
Subsidiary of L and T Capital Company Limited : |
·
L and T Trustee Company Private Limited ·
Peacock Investments Limited ·
Mango Investments Limited ·
Lotus Infrastructure Investments Limited ·
L and T Real Estate India Fund ·
L and T Asset Management Company Limited ·
L and T Realty FZE |
|
|
|
|
Subsidiary of L and
T Realty Limited : |
L and T Asian Realty Project LLP |
|
|
|
|
Wholly owned
Subsidiary of L and T Realty Limited : |
·
L and T Parel Project LLP ·
Chennai Vision Developers Private Limited ·
L and T Urban Infrastructure Limited |
|
|
|
|
Subsidiary of L and
T Urban Infrastructure Limited # : |
·
L and T South City Projects Limited ·
L and T Vision Ventures Limited ·
L and T Tech Park Limited ·
L and T Bangalore Airport Hotel Limited ·
CSJ Infrastructure Private Limited ·
L and T Arun Excello Commercial Projects Private
Limited ·
L and T Arun Excello IT SEZ Private Limited |
|
|
|
|
Subsidiary of L
and T South City Projects Limited : |
L and T Siruseri Property Developers Limited |
|
|
|
|
Subsidiary of L
and T Infocity Limited # : |
·
L and T Hitech City Limited ·
Hyderabad International Trade Expositions Limited |
|
|
|
|
Wholly owned
Subsidiary of GDA Technologies Inc : |
GDA Technologies Limited |
|
|
|
|
Subsidiary of L
and T Finance Holdings Limited # : |
L and T Finance Limited |
|
|
|
|
Subsidiary of L and
T Finance Limited # : |
·
L and T Investment Management Limited ·
L and T Mutual Fund Trustee Limited |
|
|
|
|
Wholly owned
Subsidiary of L and T Finance Holdings Limited # : |
·
L and T FinCorp Limited (formerly known as India Infrastructure
Developers Limited) ·
L and T Infrastructure Finance Company Limited ·
L and T Infra Investment Partners Advisory
Private Limited ·
L and T Unnati Finance Limited ·
L and T Access Financial Advisory Services
Private Limited |
|
|
|
|
Wholly owned Subsidiary
of L and T Infrastructure Finance Company Limited # : |
L and T Infra Investment Partners Trustee Private Limited |
|
|
|
|
Subsidiary of L
and T Transco Private Limited : |
L and T Chennai – Tada Tollway Limited |
|
|
|
|
Subsidiary of L and
T Infrastructure Development Projects Limited # : |
·
L and T BPP Tollway Limited (formerly known
as BPP Tollway Private Limited) ·
L and T Deccan Tollways Limited ·
L and T Infrastructure Development Projects Lanka
(Private) Limited |
|
|
|
|
Wholly owned Subsidiary
of L and T Transco Private Limited : |
·
Sutrapada SEZ Developers Limited @@ ·
Sutrapada Shipyard Limited @@ ·
L and T Samakhiali Gandhidham Tollway Limited
(formerly known as LandT Samakhiali Gandhidham Tollway Private Limited) |
|
|
|
|
Wholly owned
Subsidiary of L and T Infrastructure Development Projects Limited # : |
·
L and T Panipat Elevated Corridor Limited ·
Narmada Infrastructure Construction Enterprise
Limited ·
L and T KrishnagiriThopur Toll Road Limited ·
L and T Western Andhra Tollways Limited ·
L and T Vadodara Bharuch Tollway Limited ·
L and T Transportation Infrastructure Limited ·
L and T Western India Tollbridge Limited ·
L and T Interstate Road Corridor Limited ·
International Seaports (India) Private Limited ·
L and T Port Kachchigarh Limited ·
L and T Ahmedabad - Maliya Tollway Limited ·
L and T Halol - Shamlaji Tollway Limited ·
L and T Krishnagiri Walajahpet Tollway Limited ·
L and T Devihalli Hassan Tollway Limited ·
L and T Metro Rail (Hyderabad) Limited ·
L and T Transco Private Limited |
|
|
|
|
Wholly owned
Subsidiary of Larsen and Toubro Infotech Limited : |
·
Larsen and Toubro Infotech, GmbH ·
Larsen and Toubro Infotech Canada Limited ·
Larsen and Toubro Infotech LLC ·
LandT Infotech Financial Services Technologies
Inc ·
GDA Technologies Inc. |
|
|
|
|
Subsidiary of
Larsen and Toubro International FZE # : |
·
Larsen and Toubro (Oman) LLC ·
Larsen and Toubro Electromech LLC ·
LandT Modular Fabrication Yard LLC ·
Larsen and Toubro (East Asia) SDN.BHD ## ·
Larsen and Toubro Qatar LLC ## ·
LandT Electricals Saudi Arabia Company Limited,
LLC ·
Larsen and Toubro Kuwait Construction General
Contracting Company, WLL ## ·
Larsen and Toubro Readymix Concrete Industries
LLC ## ·
Larsen and Toubro ATCO Saudia Company LLC ## ·
Larsen and Toubro Heavy Engineering LLC ·
Offshore International FZC**** ·
Larsen and Toubro TandD SA Pty Limited |
|
|
|
|
Wholly owned
Subsidiary of Larsen and Toubro International FZE : |
·
L and T Overseas Projects Nigeria Limited ·
Larsen and Toubro (Qingdao) Rubber Machinery
Company Limited ·
Larsen and Toubro (Jiangsu) Valve Company Limited ·
Larsen and Toubro Saudi Arabia LLC ·
Larsen and Toubro (Wuxi) Electric Company Limited ·
TAMCO Switchgear (Malaysia) SDN. BHD ·
TAMCO Electrical Industries Pty Limited ·
PT TAMCO Indonesia ·
L and T Electrical and Automation FZE ·
Pathways FZE@@@ ·
Larsen and Toubro Consultoria E Projeto Ltda |
|
|
|
|
Wholly owned
Subsidiary of Larsen and Toubro (Qingdao) Rubber Machinery Company Limited
: |
Qingdao Larsen and Toubro Trading Company Limited |
|
|
|
|
Subsidiary* : |
·
Bhilai Power Supply Company Limited ·
L and T-Sargent and Lundy Limited ·
L and T-Gulf Private Limited ·
L and T - MHI Boilers Private Limited ·
L and T - MHI Turbine Generators Private Limited ·
Raykal Aluminium Company Private Limited ·
L and T Special Steels and Heavy Forgings Private
Limited ·
PNG Tollway Limited ·
Kesun Iron and Steel Company Private Limited ·
L and T Howden Private Limited ·
L and T Sapura Shipping Private Limited ·
L and T Sapura Offshore Private Limited ·
L and T Kobelco Machinery Private Limited ·
L and T Power Limited ·
L and T Cassidian Limited ·
L and T Infocity Limited ·
L and T Finance Holdings Limited ·
L and T Infrastructure Development Projects
Limited |
|
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 |
CAPITAL STRUCTURE
As on: 31.03.2013
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 |
|
|
|
|
|
|
615385981 |
Equity Shares |
Rs.2/- each |
Rs. 1230.800
Millions |
|
|
|
|
|
Reconciliation of the number of equity shares and share capital:
|
Particulars |
31.03.2013 |
|
|
|
Number of shares |
Rs. In Millions |
|
Issued, subscribed
and fully paid up equity shares outstanding at beginning of the year |
612398899 |
1224.800 |
|
Add: Shares
issued on exercise of employee stock options during the year |
2987082 |
6.000 |
|
Issued,
subscribed and fully paid up equity shares outstanding at the end of the year |
615385981 |
1230.800 |
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 |
31.03.2013 |
|
|
|
Number of shares |
Shareholding % |
|
Life Insurance Corporation of |
101252038 |
16.45% |
|
L and T Employees Welfare Foundation |
74404116 |
12.09% |
|
Administrator of
the Specified Undertaking of the Unit Trust of India |
506174308 |
8.23% |
Shares reserved for issue under options outstanding as at the end of the
year on un-issued share capital:
|
Particulars |
31.03.2013 |
|
|
|
Number of shares |
(At face value) |
|
Employee stock options granted and outstanding # |
8745451@ |
1.75* |
|
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 4919.600 millions (previous year: 6403.200 millions)
** The equity shares will be issued at a premium of 9354.200 millions (previous year: 9354.200 millions) on the exercise of options by the bond holders
# Note A(VIII) for terms of employee stock option schemes
## Note 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, 2013 are 29,25,92,054 (previous period of five years ended March 31, 2012: 29,25,92,054 shares)
The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding five years ended March 31, 2013 – Nil (previous period of five years ended March 31, 2012: Nil)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
1230.800 |
1224.800 |
1217.700 |
|
(b) Reserves & Surplus |
290196.400 |
251005.400 |
217244.900 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
291427.200 |
252230.200 |
218462.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term
borrowings |
72710.300 |
53300.600 |
54254.100 |
|
(b) Deferred tax liabilities (Net) |
2422.200 |
1330.100 |
2634.700 |
|
(c) Other long term
liabilities |
5020.300 |
3763.500 |
324.100 |
|
(d) long-term
provisions |
2859.200 |
2750.500 |
2420.800 |
|
Total Non-current
Liabilities (3) |
83012.000 |
61144.700 |
59633.700 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
7345.300 |
29367.200 |
9061.700 |
|
(b) Current maturities of long term borrowings |
8286.500 |
16289.900 |
8295.300 |
|
(c) Trade
payables |
167306.500 |
156077.600 |
128534.200 |
|
(d) Other
current liabilities |
143526.500 |
140094.000 |
127091.500 |
|
(e) Short-term
provisions |
20838.100 |
21120.400 |
20021.000 |
|
Total Current
Liabilities (4) |
347302.900 |
362949.100 |
293003.700 |
|
|
|
|
|
|
TOTAL |
721742.100 |
676324.000 |
571100.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
82190.000 |
75280.000 |
65690.600 |
|
(ii)
Intangible Assets |
861.400 |
769.800 |
751.300 |
|
(iii)
Capital work-in-progress |
4910.500 |
6975.300 |
7482.000 |
|
(iv) Intangible assets under development |
1057.900 |
611.500 |
231.400 |
|
(b) Non-current
Investments |
105227.000 |
90847.100 |
74008.400 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
Loan and Advances |
36641.700 |
40559.700 |
33170.600 |
|
(e) Cash and bank balances |
390.200 |
1271.400 |
8.000 |
|
(e) Other Non-current assets |
433.000 |
140.700 |
0.000 |
|
Total Non-Current
Assets |
231711.700 |
216455.500 |
181342.300 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
55806.900 |
67871.900 |
72839.800 |
|
(b)
Inventories |
20641.800 |
17766.200 |
15771.500 |
|
(c) Trade
receivables |
226130.100 |
187169.400 |
124276.100 |
|
(d) Cash
and cash equivalents |
14556.600 |
17781.200 |
17295.500 |
|
(e)
Short-term loans and advances |
54988.400 |
50056.200 |
49082.300 |
|
(f) Other
current assets |
117906.600 |
119223.600 |
110492.500 |
|
Total
Current Assets |
490030.400 |
459868.500 |
389757.700 |
|
|
|
|
|
|
TOTAL |
721742.100 |
676324.000 |
571100.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (net) |
608732.600 |
531705.200 |
439058.700 |
|
|
|
Other Income |
18509.000 |
13382.800 |
11474.600 |
|
|
|
TOTAL (A) |
627241.600 |
545088.000 |
450533.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material components consumed |
108922.900 |
101417.500 |
77376.700 |
|
|
|
Construction material consumed |
145811.200 |
124777.900 |
100697.600 |
|
|
|
Purchase of stock in trade |
20632.300 |
23694.000 |
22825.500 |
|
|
|
Stores spares and tools consumed |
22881.000 |
16228.300 |
11877.900 |
|
|
|
Sub contracting charges |
144720.600 |
106475.400 |
93959.700 |
|
|
|
Changes in inventories of finished goods and operating expense
|
(11320.300) |
(5397.700) |
(5326.400) |
|
|
|
Other manufacturing, construction and operating expenses |
47876.300 |
43006.400 |
33270.700 |
|
|
|
Employee benefit expense |
44363.200 |
36634.500 |
28300.800 |
|
|
|
Sales and administration and other expense |
20910.800 |
22230.300 |
19778.200 |
|
|
|
Extraordinary items |
(781.100) |
0.000 |
(708.400) |
|
|
|
Overheads charged to fixed assets |
136.000 |
(187.500) |
(97.700 |
|
|
|
Exceptional items |
(1759.500) |
(550.000) |
(2620.700) |
|
|
|
TOTAL (B) |
542121.400 |
468329.100 |
379333.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
85120.200 |
76758.900 |
71199.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
9824.000 |
6661.000 |
6192.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
75296.200 |
70097.900 |
65006.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
8184.700 |
6994.600 |
5992.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
67111.500 |
63103.300 |
59014.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
18005.000 |
18538.300 |
19435.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
49106.500 |
44565.000 |
39578.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1523.900 |
1056.800 |
1072.900 |
|
|
|
|
|
|
|
|
|
Less |
Dividend paid for previous year |
27.100 |
38.900 |
34.400 |
|
|
Less |
Transfer to Debenture redemption reserve |
0.000 |
0.000 |
5.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
35000.000 |
32500.000 |
29100.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
502.500 |
440.000 |
498.300 |
|
|
|
Proposed Dividend |
11384.700 |
10104.600 |
8828.400 |
|
|
|
Additional tax on dividend |
858.600 |
1014.400 |
1128.200 |
|
|
BALANCE CARRIED
TO THE B/S |
2857.500 |
1523.900 |
1056.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods |
10160.300 |
8529.700 |
|
|
|
|
Construction and project related activities |
106938.900 |
61734.300 |
|
|
|
|
Export of services |
13197.700 |
8844.900 |
|
|
|
|
Commission |
190.800 |
271.900 |
|
|
|
|
Interest received |
0.500 |
0.400 |
|
|
|
|
Other receipts |
748.700 |
999.300 |
|
|
|
TOTAL EARNINGS |
131236.900 |
80380.500 |
5553.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
19613.400 |
12731.000 |
10090.500 |
|
|
|
Components & Spare Pats |
30511.900 |
40272.400 |
35240.200 |
|
|
|
Spare Parts for Sale |
0.000 |
0.000 |
3605.200 |
|
|
|
Capital Goods |
3779.300 |
7146.100 |
6416.100 |
|
|
TOTAL IMPORTS |
53904.600 |
60149.500 |
55352.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
78.82 |
72.92 |
64.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 1st
Quarter |
|
Audited / Unaudited |
Unaudited |
|
Net Sales |
125550.600 |
|
Total Expenditure |
114835.800 |
|
PBIDT (Excl OI) |
10714.800 |
|
Other Income |
4726.000 |
|
Operating Profit |
15440.800 |
|
Interest |
2452.800 |
|
Exceptional Items |
0 |
|
PBDT |
12988.000 |
|
Depreciation |
2102.800 |
|
Profit Before Tax |
10885.200 |
|
Tax |
3324.900 |
|
Provisions and contingencies |
0 |
|
Profit After Tax |
7560.300 |
|
Extraordinary Items |
0 |
|
Prior Period Expenses |
0 |
|
Other Adjustments |
0 |
|
Net Profit |
7560.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total
Income |
(%) |
7.82 |
8.18 |
8.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.02 |
11.87 |
13.44 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.70 |
11.75 |
12.93 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23 |
0.26 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.28 |
0.32 |
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.41 |
1.27 |
1.33 |
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 |
No |
|
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 |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS
HIGH COURT OF
GUJARAT
|
CIVIL
APPLICATION No. 21 of 2013 In TAX APPEAL/
42/ 2013 ( PENDING ) |
|
Status : PENDING |
|
CCIN No :
001073201300021 |
|
|
|||
|
|
||
|
|
||
|
S.NO. |
Name of the Petitioner |
Advocate On Record |
|
1 |
COMMISSIONER |
MR YN RAVANI for: Applicant(s) |
|
S.NO. |
Name of the Respondant |
Advocate On Record |
|
1 |
LARSEN AND TOUBRO LIMITED |
|
|
|
|||
|
Presented On |
: 29/12/2012 |
Registered On |
: 10/01/2013 |
|
Bench Category |
: DIVISION BENCH |
District |
: VADODARA |
|
Case Originated From |
: THROUGH ADVOCATE |
Listed |
: 5 times |
|
Stage Name |
ADJOURNED MATTERS |
||
|
Classification |
DB - CIVIL APPLICATION - CODE OF CIVIL PROCEDURE,
1908 - STAY / INTERIM RELIEF - IN SPECIAL CIVIL APPLICATION |
|
Act |
CENTRAL EXCISES AND SALT ACT, 1944 |
Office Details
|
|
S. No. |
Filing Date |
Document Name |
Advocate Name |
Court Fee on
Document |
Document Details |
|
1 |
29/12/2012 |
MEMO OF APPEAL/PETITION/SUIT |
MR YN RAVANI ADVOCATE |
20 |
MR YN RAVANI:1 |
Court Proceedings
|
|||||
|
S. No. |
Notified Date |
Court Code |
Board Sr. No. |
Stage |
Action |
Coram |
|
1 |
17/01/2013 |
7 |
27 |
OFFICE OBJECTION REMOVED |
NEXT DATE |
·
HONOURABLE MR.JUSTICE AKIL KURESHI ·
HONOURABLE MS JUSTICE SONIA GOKANI |
|
2 |
10/04/2013 |
7 |
73 |
ADJOURNED MATTERS |
NEXT DATE |
·
HONOURABLE MR.JUSTICE AKIL KURESHI ·
HONOURABLE MS JUSTICE SONIA GOKANI |
|
3 |
01/05/2013 |
7 |
44 |
ADJOURNED MATTERS |
NEXT DATE |
·
HONOURABLE MR.JUSTICE AKIL KURESHI ·
HONOURABLE MS JUSTICE SONIA GOKANI |
|
4 |
19/06/2013 |
7 |
25 |
ADJOURNED MATTERS |
NEXT DATE |
·
HONOURABLE MR.JUSTICE M.R. SHAH ·
HONOURABLE MS JUSTICE SONIA GOKANI |
|
5 |
24/07/2013 |
7 |
25 |
ADJOURNED MATTERS |
undefined |
·
HONOURABLE MR.JUSTICE M.R. SHAH ·
HONOURABLE MS JUSTICE SONIA GOKANI |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Redeemable non-convertible fixed rate debentures |
10500.000 |
8000.000 |
|
3.50% Foreign currency convertible bonds |
10857.000 |
10175.000 |
|
Term loans from banks |
42270.800 |
25578.500 |
|
Sales tax deferment loan |
82.500 |
155.400 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Loans repayable on demand from banks |
89.400 |
89.400 |
|
Short term loans and advances from banks |
3915.800 |
20414.400 |
|
Loans from related parties |
0.000 |
3330.000 |
|
Long term maturities of finance lease obligations |
0.000 |
391.700 |
|
Total |
67715.500 |
68134.400 |
YEAR IN RETROSPECT
The gross sales and other income for the financial year were Rs.633220.000 millions as against Rs. 550760.000 millions for the previous financial year registering an increase of 15%. The Profit before tax excluding extraordinary and exceptional items was Rs.64570.000 millions and the Profit after tax excluding extraordinary and exceptional items of Rs.46950.000 millions for the financial year as against Rs.62550.000 millions and Rs.44130.000 millions respectively for the previous financial year, registering an increase of 3% and 6% respectively.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL ECONOMIC
CONDITION
In the year 2012-13, the global economy continued to be in the throes of challenges and uncertainties. There was a divergence in growth and prospects across geographies as both governments and central banks attempted to revive fledgling growth. To some extent growth was supported by aggressive monetary easing measures by the central banks of developed economies which also encouraged capital flows into emerging markets.
Not overlooking the old dangers and new turbulence in the global markets, the near-term risk picture however has improved as recent policy actions in Europe and US have addressed some of the serious short-term risks. Over the past six months, policymakers of advanced economies have successfully defused two of the biggest short-term threats to the global recovery viz. the threat of a Euro area breakup and a sharp fiscal contraction in the US caused by a plunge off the “fiscal cliff”.
The year also witnessed a noticeable slowdown in the emerging economies, a reflection of slack demand in the advanced economies, domestic policy tightening amidst inflationary conditions and end of investment boom in some of the major emerging economies.
Economic performance across the Middle East and North Africa (MENA) was mixed in 2012. Political uncertainty continued to weigh on the economies of the MENA region. Growth in 2012 however increased to above the 2010 levels largely driven by recovery in the oil exporting countries. In 2013, while slower growth is projected in oil and gas production due to lower global oil demand, healthy growth is expected in non-oil sectors.
The Omani economy continued to grow at a rapid pace The Government has entered into the second year of the Eighth Five-Year development plan (2011-2015) allocating USD 6.50 Billion a year for large public investment programs, particularly in infrastructure and social sectors. This is enabling the economy to sustain the domestic demand and strengthen the economic diversification program.
While the world economy is expected to grow at a better pace than the last few years with activity gradually accelerating in major advanced economies, with US in the lead, the overall global economic environment still remains fragile although the balance of risk is now less skewed to the downside than in the recent years. The short-term risks are lower as hard landing of the key emerging economies has receded. Nonetheless, medium term risk still abounds due to very low growth or stagnation in the Euro area; probability of fiscal trouble in the US or Japan; risks related to unconventional monetary policy; and lower potential output in key emerging market economies.
OVERVIEW OF INDIAN
ECONOMY
The Indian economy in 2012-13, witnessed a decadal low growth in GDP of 5.0%. The country has seen economic expansion drop since the start of the 2011 to levels even below the crisis years of 2008-09. The slowdown which started in the industrial sector also extended to services sector which has been the mainstay of India’s growth story.
The weakness in the economy is not only cyclical but also structural in nature. Domestic supply bottlenecks and policy obstacles have seen growth decelerate and investment and industrial output slump. Global uncertainties also adversely affected growth. The pipeline of new investment dried up and existing projects stalled due to bottlenecks and implementation gaps. Also, the country continued to face persistent challenges due to high inflation, tight monetary policy and the deteriorating external balance. Despite good capital inflows in 2012-13, the economy reported worrisome current account deficit.
A slowdown was witnessed in almost all the sectors of the economy in 2012-13. While the moderation in growth in agriculture (1.9%) was largely on account of the rainfall deficiency, the deceleration of industrial production growth to 1.2% in 2012-13 from 2.7% in 2011-12 was mainly due to contraction in mining and slowing growth in manufacturing and electricity sectors. Capital goods segment continued its dismal performance in 2012-13, indicating the lack of investment demand in the economy.
The services sector saw a further deceleration to a growth of 6.8% in 2012-13 as compared to 7.9% mainly on account of a slowdown in trade, transport, hospitality and financial services.
The spurt in the economic growth of the country in the past was led by the consumption story. However, along with investment slowdown, India now faces a challenge of a consumption led slowdown. Government expenditure growth decelerated from 8.6% in 2011-12 to 3.9% in 2012-13 due to the fiscal consolidation by the government to reduce the deficit. The impact on fiscal deficit hence was immediate as it fell to 4.8% of GDP compared to the target of 5.2%. The private final consumption expenditure which has the largest share in the GDP of 60% also slowed down to a growth of 4.0% in 2012-13 from 8.0% in the previous fiscal. The investments throughout the fiscal continued to remain in gloomy territory with growth in gross fixed capital formation being just at 1.7% in 2012-13 as against 4.4% in 2011-12.
HYDROCARBON BUSINESS
OVERVIEW
The Hydrocarbon business provides complete EPC solutions for the global Oil and Gas Industry. It possesses the capabilities to deliver end-to-end solutions for every phase of project – from front end design engineering through fabrication, project management, procurement, construction, installation right up to commissioning. Integrated strengths coupled with an experienced and highly skilled work force, are the key enablers in repeatedly delivering large, complex projects.
The capabilities of the Hydrocarbon business includes in-house engineering, R and D centre, engineering joint ventures with reputed international companies, offshore installation capabilities, world class modular fabrication facilities, an experienced and competent project execution team and a safe work culture. The key aspects of business philosophy are excellence in corporate governance, high quality standards, best in class HSE protocol, IT security practices, timely execution and cost competitiveness.
The business has major work centres in India at Powai (Mumbai), Vadodara, Chennai, Bengaluru, Faridabad, Hazira and Kattupalli. It has established its presence in Middle East and South East Asia. Internationally, it has a fabrication facility at Sohar (Oman), project execution capabilities in the UAE (Abu Dhabi and Sharjah), Muscat (Oman), Qatar (Doha), Al-Khobar (Kuwait and Saudi Arabia) and business development offices at Houston, London, Singapore, South Korea, Australia, Malaysia and Indonesia.
The Hydrocarbon business is structured into the following three Strategic Business Groups (SBGs) :
• Hydrocarbon Upstream
• Hydrocarbon Mid and Downstream (HMD)
• Hydrocarbon Construction and Pipelines (HCP)
HYDROCARBON UPSTREAM
The Hydrocarbon Upstream SBG provides turnkey solutions to the offshore Oil and Gas industry encompassing well-head platforms, process platforms and modules, subsea pipelines, brown field developments, floating systems and offshore drilling rigs. The SBG has successfully executed large offshore platforms and pipeline projects in east and west coast of India, Middle East, South East Asia and Africa for global companies such as ONGC, GSPC, Song as, Qatar Petroleum, Maersk Oil Qatar, PTTEP, Petron as and Bunduq. The SBG has also established experience in the Jack-up rig refurbishment and is qualified to build new Jack-up rigs, floating production storage and off-loading (FPSO) topsides and subsea projects.
The Upstream SBG has three state-of-the-art fabrication facilities at strategically important locations for modular structures, heavy jackets and oil rigs offering round-the year delivery. Hazira, near Surat in Gujarat, caters to business opportunities in the West Coast of India (Mumbai High). Kattupalli near Chennai in Tamil Nadu caters to opportunities from East Coast (KG Basin) and South East Asia. Sohar at Oman caters to opportunities in the MENA region. These yards have a total fabrication capacity of about 150,000 MT per year.
The SBG has business development offices at Abu Dhabi, Singapore, Houston and Perth to provide the necessary thrust for its international growth vision. Additionally, the SBG is exploring upcoming opportunities in the CIS region and East Africa.
The SBG through a joint venture (JV) with Sapura Crest Petroleum Bhd, Malaysia, owns and operates a Heavy Lift Pipe Lay vessel, LTS3000, enhancing its offshore installation capabilities. The three engineering centres at Bengaluru, Chennai and Faridabad housed in its wholly owned subsidiary, L and T Valdel, along with a centralized procurement capability centre at Mumbai enable the SBG to offer integrated EPC services to E and P companies.
During the year, the SBG bagged two projects from ONGC to be executed in the West Coast of India. It also got a second order from Myanmar, this time for Petronas Carigali, Yetagun North field.
The SBG recently completed installation for PTTEPI and GSPC-PLQP project and also sail-out of refurbished rig (Sagar Uday) for ONGC. The largest order from ONGC for Mumbai High North Complex of USD 1.2 Billion, was successfully commissioned during the year.
OUTLOOK
With oil prices expected to be steady, rising demand for oil and gas from the developing world, the business believes that there will be a revival in Oil and Gas capex in FY14, resulting in expected increase in award activities. Also, the business observes a trend of increasing brown field jobs due to ‘Enhanced Oil Recovery’ requirements of existing fields. Gradual depletion of shallow water prospects makes it imperative to be ready for deepwater offerings.
The business has established a good presence in the Jack-up rig refurbishment market and is now looking at new build Jack-ups and FPSO Topsides collaborating with leading players in the field. Focused emphasis is being laid on developing sub-sea business segment, possibly through alliances.
Government has cleared the Urea Investment Policy 2012, which augurs well for investments in this sector. Accordingly, sustained investments in this sector through Brownfield Urea expansion projects in lump-sum turnkey mode is expected.
Good opportunities are also visible in onshore gas processing projects especially in India and refinery expansion projects both in India and Overseas.
Large investments are also expected in cross-country pipeline projects over the next three to five years. The business is confident of capturing the market given its strength in in-house engineering, key strategic equipments and experienced workforce.
Pipelines prospects are increasing in KSA, Oman and Iraq while such prospects have reduced in UAE and Qatar. New gas finds in Oman coupled with Government’s keenness to develop more fields is an encouraging sign.
BUILDINGS AND
FACTORIES BUSINESS
OVERVIEW
Buildings and Factories (B and F) business undertakes engineering design and construction of Airports, IT Parks, office spaces, educational institutions, stadiums, convention centers, metro stations, hospitals, hotels, residential buildings, factories, cement plants and warehouses.
The thrust is on focused development in various building segments and expanding customer base by providing “Concept to Commissioning” solutions. This helps in maintaining the leadership position, retaining key customers, entering new markets and securing major orders. Construction excellence coupled with technology, experience and expertise gained over several decades has established B and F business as one of the premium contractors in the industry.
OUTLOOK
Some key decisions by the Government are expected to facilitate major prospects in the coming years. The Government has decided on increasing fund allocation to health sectors, setting up new educational institutions, allowing FDI in aviation and retail and relaxation in floor space index in high rise structures. All these decisions create favorable scenarios for sectors like IT space, hospitals, institutional space, aviation, mixed use development and residential space.
In the private sector, IT companies’ plans to expand into non-metros and expansion plans by auto, pharmaceutical and cement companies will add to business prospects.
In order to capitalise on the positive outlook for 2013-14, B and F business has taken steps to strengthen its presence in UAE and Oman and also establish its footprint in other countries such as Africa, Kuwait, Bahrain, Qatar and KSA by forming strategic tie-ups and targeting major orders.
TRANSPORTATION
INFRASTRUCTURE BUSINESS
OVERVIEW
Transportation Infrastructure business comprises of four business units namely, Roads, Runways and Elevated Corridors, International Infrastructure, Railway Construction and Railway Systems. It maintains leadership as premier construction major in both the transportation infrastructure sectors of Road and Rail in India. Transportation Infrastructure business has consolidated its presence and made considerable inroads in the Gulf in the year 2012-13.
OUTLOOK
The business sees good prospects in road, rail sector in the year 2013-14. A few large NHAI road projects and a major EPC package from DFCC are on anvil.
Further, the Cabinet Committee on Investment is set up, to resolve issues in infra projects greater than 1000 crore. This will expedite processes of granting environment and forest clearances for mega projects. NHAI has expressed willingness to compensate Developers/Contractors for delays in projects caused by the circumstances beyond their control, which will revive the BOT project space.
In addition, the 12th five year plan mentioned the formation of the master plan for expressways to be developed for both the passenger and freight movements in the high traffic density corridors. Also National Expressway Authority of India expected to be formed to take up initiatives for both the land acquisition and to get the work executed under the BOT mode.
In Rail Sector, there is a thrust on doubling and electrification by Indian Railways. Large opportunities are expected out of expansion of Delhi Metro Phase III and other new upcoming metro projects such as MEGA, Ahmedabad and Kochi Metro.
On the international front, thrust of the Governments in Gulf region on infrastructure projects both in Roadways and Railways is expected to open up more opportunities in UAE, Qatar, Oman and Kuwait. Several projects which have been tendered in the recent past in UAE and Oman and the thrust on infrastructure development is expected to continue at steady pace in these countries. Qatar projects are likely to kick start in later part of 2013-14.
With its top class engineering and execution the business is targeting growth in the order inflow and revenue in 2013-14.
HEAVY CIVIL
INFRASTRUCTURE BUSINESS
OVERVIEW
Heavy Civil Infrastructure business undertakes design, engineering and construction of projects in Metros, Ports, Tunnels, Special Bridges, Hydro Power, Nuclear Power and Defence infrastructure sectors.
OUTLOOK
Given the huge gap between infrastructure demand and supply in a growing economy like India, all businesses relating to heavy civil infrastructure are likely to witness good growth over a sustained period.
With the specific and continuous thrust on business development, the business is looking at new opportunities across various business segments in India as well as in the international markets. The healthy order book position of Heavy Civil Infrastructure business gives the confidence of registering a substantial growth in revenues during the year 2013-14.
METALLURGICAL AND
MATERIAL HANDLING (MMH) BUSINESS
OVERVIEW
Metallurgical and Material Handling (MMH) business 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 sector. It has a well-established Industrial Machinery and Foundry work shop at Kansbahal, Odisha and a fabrication shop at Kanchipuram, Tamil Nadu to cater to the specific requirements of the customer.
OUTLOOK
Land and mining reforms and renewed investments in the field of Ferrous, Non-Ferrous, Ports and Power sector will be key drivers for Metallurgical and Material Handling business.
In spite of the current slowdown, Steel industry has been performing well in India and is expected to witness increase in demand in the year 2013-14. Government’s initiatives to boost private investment in Power and Port sector likely to bring fresh inflow of capital. Investment allowance of 15%, coal block linkages, developing ports in PPP mode are precursor to revival of the sector.
The business has aligned itself towards providing solution on Value added/debottlenecking efforts of industry majors, focusing upon operation agility during this challenging scenario. With the opening order book and expected orders during the year, the business is confident of posting good performance in 2013-14.
POWER TRANSMISSION
AND DISTRIBUTION (PT AND D) BUSINESS
OVERVIEW
The PT and D business is a leading EPC player in the field of Power Transmission and Distribution business offering integrated solutions and end-to-end services ranging from design, manufacture, supply installation and commissioning of transmission lines, substations, distribution networks, electrical and instrumentation works for power, process and infrastructure projects, communication systems in both domestic and international markets.
Industrial Electrification Business Unit provides turnkey electrical, Instrumentation and Communication (E and IC) solutions for major power plants including Thermal and Nuclear plants, Process plants, Hydro carbon and Pipeline Projects, IT Parks, Airports, Sea Ports, Metros, Intra City Power Transmission Network etc.
Substation Business Unit focuses on providing turnkey solutions for Power Evacuation schemes from Power plants, Main Grid Substations for Utilities, Power Distribution and Power Quality Improvement works under Rural Electrification (R-APDRP, RGGVY schemes) Projects.
Transmission Line Business offers turnkey solutions in building Transmission lines for Power Evacuations Systems, boosted by its state-of-the-art tower manufacturing units at Puducherry and Pithampur with a total installed capacity of 0.100 million tpa and complemented by its tower testing facility at Kanchipuram.
PT and D’s International Business Units in Gulf Countries namely UAE, Qatar, Kuwait, Oman and Saudi Arabia offer complete solutions in the field of High Voltage Substations, Power Transmission Lines, EHV Cabling, E and IC Works for Infrastructure Projects such as Airports, Oil and Gas Industries etc.
OUTLOOK
In domestic market, good business prospects exist as Government policies lay stress on Power System Grid Strengthening Schemes through Central and Multilateral funding agencies. Central and State Utilities are likely to proceed with their Investment Plans. Debt Restructuring Plan of DISCOM’s/State Utilities and power tarif revisions will also pave way for financial health revival and faster project implementation. Power Distribution and Power Quality Improvement Projects under Rural Electrification Schemes will drive the business in MV and LV Distribution Segment.
Key drivers for growth are likely to emerge from the opportunities in Steel, Cement and Oil and Gas Sector by way of various Greenfield and Brownfield projects, telecom and EHV Power Cabling Networks, Metros etc.
GCC investment plans on Grid Strengthening and infrastructural development continues to be in line with economic development, offering substantial potential. Intensifying power demand in Africa and South East Asian countries unleashes significant potential and new opportunities.
WATER AND RENEWABLE
ENERGY BUSINESS
OVERVIEW
The Water and Renewable Energy business comprises Water and Effluent Treatment Strategic Business Group (SBG) and Renewable Energy Business Unit (BU). These two diverse lines of businesses provide services covering the entire value chain (Concept to Commissioning) and are playing important roles in creating a water-surplus, energy-secure and green future.
The Water and Effluent Treatment SBG caters to turnkey infrastructure projects in Water Supply and Distribution, Waste Water Collection, Treatment, Disposal, Re-Use and Industrial and Large Water Systems. Furthermore, the business also has presence in Gulf countries, where cutting-edge technologies are being deployed for Water and Waste Water Treatment projects.
The Renewable Energy BU provides turnkey EPC services for projects on Utility-scale Photovoltaic/Concentrated Solar Power Plants, Decentralized Solar PV Systems, Wind Power Plants, Micro-grids, Smart-grids and Integrated Security Solutions. The BU has plans to expand to Gulf nations where substantial investments are envisaged in Solar industry.
OUTLOOK
Rapid urbanisation and industrialization in India is providing impetus for creation of efficient and reliable Water infrastructure for supply of potable water and collection, treatment and re-use of waste water. Stringent pollution control norms and their enforcement is also a major driver for investment in effective effluent-treatment systems. Also substantial investments are envisaged in lift irrigation projects. It is encouraging to note that more than Rs.150000.000 millions have been earmarked for various water supply and sewerage projects in India in 2013-14.
The demand for clean and green sources of energy is on the rise. The National Action Plan on Climate Change (NAPCC) envisages a 15% mix of renewable energy in India by 2020. The 12th five year plan (2012-2017) has targeted a capacity addition of 15 GW in Wind sector. The Jawaharlal National Solar Mission has targeted a total installed capacity of 20 GW of grid-connected Solar plants by 2022. The year 2013-14 is going to see a large PV capacity of around 4000 MW being allocated in India. For Wind Power projects, the reinstatement of Generation based Incentives (GBIs) is expected to give impetus to investments. With expected thrust on Renewable Purchase Obligation (RPO) compliance, restructuring of financials of state distribution companies and augmentation of transmission and distribution infrastructure, the renewable energy sector looks all set for a period of accelerated growth. Also, the business environment for Integrated Security Solutions looks bright with tenders being floated by various government authorities for city surveillance systems, intelligent traffic monitoring systems and security systems for critical infrastructure setups like nuclear power plants and airports.
POWER BUSINESS
OVERVIEW
Power business is an integrated concept-to-commissioning solutions provider for thermal power plants engaged in setting up of coal and gas based power generation projects on a lump sum turnkey basis. With world class manufacturing facilities for supercritical boilers, steam turbines, generators, pressure piping, axial fans, air-pre heaters and electrostatic precipitators, and an unparalleled experience in project management, engineering and construction management, the business has the capability to cater to 85% (by value) of the power generation value chain.
The business has an organization structure dovetailed for performance with focused business units supported by competency-based capability centers and service functions.
Geographically, the business has a pan-India presence with multiple project sites and project management centers at Vadodara, Faridabad and Chennai. The manufacturing facilities for critical piping and electrostatic precipitators are located at Hazira. The facilities for boilers, turbines, generators, axial fans and air pre heaters (housed in joint venture companies) are also located at Hazira. The business has set up establishments in various locations in India to assist business development, with procurement being supported by a China office.
The Company is a significant domestic player in the power market, with substantial investments in manufacturing capacity for supercritical power equipment. Multinational companies have also taken steps to create India facilities by tying up with or acquiring a local company. With these, the domestic supercritical manufacturing capacity is slated to cross 25,000 MW by 2014-15.
OUTLOOK
While the year 2012-13 saw increased awareness and acknowledgement of problems plaguing the power sector with many announcements on reforms, it is important for these announcements to translate into action on the ground for the sector environment to improve. Government promises on fuel supply agreements, fuel price pooling are yet to fructify as also are the issues of standard bidding documents (SBD) and fuel pass-through for imported coal based plants. Though serious discussions are currently underway between industry and the government, it is likely that these deliberations will take 12 to 18 months to yield results. Thus the year 2013-14 is likely to remain subdued for the industry with continued pricing pressures as domestic players chase the few available opportunities.
With the IPP market having dried up, opportunities for the business during the year will come from PSUs like NTPC and State Electricity Boards. For gas-based opportunities in South East Asia and Middle East, we have made good progress on prequalification and significant efforts have been made to make a breakthrough in 2013-14.
Driven by its relentless focus on execution excellence, Power business is well placed to capitalize on the thermal power opportunities as they emerge and fortify its place as a credible integrated power EPC player in India.
HEAVY ENGINEERING
(HE) BUSINESS
OVERVIEW
The Heavy Engineering (HE) business manufactures and supplies custom designed, engineered critical equipment and systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil and Gas, Thermal and Nuclear Power, Aerospace and equipment and systems for Defence applications.
HE business has manufacturing and fabrication facilities at Mumbai in Maharashtra, at Vadodara and Hazira in Gujarat, at Visakhapatnam in Andhra Pradesh and at Sohar in Oman. 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 has been set up at Coimbatore in Tamil Nadu to manufacture precision machined components and assemblies. A Military Communications and Avionics facility is set up at Bangalore in Karnataka. This center is integrated with a development center and small scale production facility for Defence Electronics and Embedded software in these domains.
Project management teams at each location are supported by detailed design and engineering centres. Manufacturing teams are backed by production engineering and manufacturing process development centres at each location. The business has “Technology and Product Development Centres” in Mumbai – for new product development in process plant equipment and for equipment and systems (including electronic systems/subsystems) for strategic sector. Strategic Submarine Design Centre is also located in Mumbai.
OUTLOOK
In the hydrocarbon sector, business prospects are promising in the medium term to long term with expected investments in green field, up gradation and revamp projects in the USA, Middle East, CIS and South East Asian markets. Increased shale gas availability in USA and Australia could result in announcement of LNG and GTL projects. The new urea investment policy is expected to incentivize domestic investments in fertilizer plants. In the nuclear equipment business, the civil nuclear liability implementation rules have been tabled in Parliament but ambiguity in respect of the extent of liability remains. For domestic nuclear power plants procurement process for long lead items is expected to commence.
The Ministry of Defence has announced a decision to give impetus to indigenization as a thrust area. Under this new policy Defence procurement programs are expected to follow hierarchical categorization process by preference to Buy (Indian), Buy and Make (Indian), Make categories ahead of Buy and Make (Global) and Buy (Global) categories. This would benefit the Indian industry with proven track record over the medium to long term. The business is also leveraging its product portfolio of multiple engineering systems to tap overseas market opportunities in the defence segment.
With superior technology, a lot of it home grown, state of the art manufacturing facilities and a committed work force, the HE business is well poised to tap upcoming business opportunities.
ELECTRICAL AND
AUTOMATION (E AND A) BUSINESS
OVERVIEW
Electrical and Automation (E and A) is one of the core businesses of the Company. Its suite of offerings include low and medium voltage Switchgear, Electrical Systems, Marine Switchgear, Industrial and Building Automation Solutions, Surveillance Systems,Energy Meters and Relays. Its products and solutions cater to a variety of segments like industries, utilities, infrastructure, buildings and agriculture.
A major strength of the E and A business is its in-house design and development capability for its products and solutions. It also has state of the art high precision tool manufacturing facilities, a pre-requisite for high quality products. It runs four Switchgear Training Centres (STCs) across India that imparts training to engineers, consultants, technicians and electricians.
The manufacturing facilities are located at Mumbai (Powai), Navi Mumbai (Mahape and Rabale), Ahmednagar, Vadodara, Coimbatore and Mysore in India as well as in Saudi Arabia, UAE, Malaysia, Indonesia, Australia and the UK.
The E and A business comprises two Strategic Business Groups (SBGs) and designated subsidiaries. Further, there are business units that operate under each SBG. The Products SBG includes Electrical Standard Products (ESP) and Metering and Protection System (MPS) while Projects SBG has Electrical Systems and Equipment (ESE) and Control and Automation (C and A).
OUTLOOK
It is expected that business sentiments in 2013-14 will see an improvement over the current year and, therefore, will offer better opportunities. The Government’s focus on developing infrastructure sector holds promise and that the industry could see investments and good growth.
There are indications of good growth in certain sectors and the retail segment supported largely by Tier II/III cities and towns in India. The country will witness higher growth in energy efficient products as well as focus on development of alternate energy sources would gain ground. Water is another segment where investment is foreseen.
In projects business, EPC awards in major projects may pick-up during FY 2013-14. Local content /value addition/ presence is fast becoming a crucial factor in GCC countries such as Oman and Qatar and also CIS (especially Kazakhstan). Political uncertainty will still be a factor in some countries.
The C and A BU is optimistic about the Terminal Automation projects from oil refining companies which are coming up in a phased manner – 60 locations in next 2 years. The meter market is poised for healthy growth. MPS BU expects large procurements expected from state utilities like Rajasthan, West Bengal, Kerala, UP, Tamil Nadu and Andhra Pradesh.
MACHINERY AND
INDUSTRIAL PRODUCTS (MIP) BUSINESS
OVERVIEW
Machinery and Industrial Products (MIP) comprises two Strategic Business Groups (SBGs) – Machinery and Industrial Products.
OUTLOOK
The market demand for Hydraulic Excavators is expected to improve on account of the increase in spending in the urban infrastructure, roads, general construction sectors and spending by the Government on various infrastructure projects. Coal Sector will continue to be the main demand driver for the Mining Equipment Business. The projected Gap between domestic coal demand and supply of around 200 million tonnes during FY 2013-14 portends opportunity subject to political actions leading to investments. CMB is well placed to take advantage of these opportunities through supply of large size Mining Equipment both to the public and private coal producing companies. Environmental and land acquisition issues continue to be areas of concern and may cause near team difficulties in mining equipment demands translating to orders.
Escalating cost of conventional energy, continued dependence on fuel imports and envisaged regulations on commitment to proportional use of renewable energy, makes it attractive for the growth of core segment – Wind Turbine Generators. A 30% growth over FY 2012-13 in terms of MW installation is expected in FY 2013-14. This will help FBU position itself as the premium supplier to the major WTG players.
Major oil and gas sector investments are planned in Middle East, Australia and SE Asia. In India a large Petrochemical project is being set up offering good business prospects. NTPC’s expansion plans are on stream and offer a good opportunity for their power Valves. Similarly the proposed NPCIL expansion plans offer scope for specialty valves.
For INP, the growth is expected to resume from second half of 2013-14 due to anticipated recovery in automotive and exports by key business segments and also better liquidity coming from lower interest rates.
Overall, business outlook for 2013-14 continues to remain challenging for most businesses of MIP and performance improvement is expected with the turnaround in GDP, impetus in Infrastructure investments and increased government expenditure.
INTEGRATED
ENGINEERING SERVICES (IES)
OVERVIEW
Integrated Engineering Services (IES) is today acknowledged as one of the emerging leaders in the Indian Engineering Research and Development (ER and D) service segment.
The Zinnov 2012 Global Service Provider Ranking, (GSPR) has placed IES’s Industrial Products Domain in the Leadership Zone for the second time in a row. This is a true reflection of the commitment to be on the fast track of being the “BEST” in engineering outsourcing service industry.
IES is head-quartered at Vadodara, India with design centers located in cities of Vadodara, Bengaluru, Chennai, Mysore and Mumbai with global footprints and 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 also has alliances and partnerships with AUTOSAR (Automotive Open System Architecture), National Instruments, Intel, GENIVI and 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 organizations.
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. IES added 40 new clients during the year and has been serving 35 fortune 500 companies. With the initiatives taken in 2012-13, actions planned in the next year and addition of new geographies, IES is confident of achieving impressive growth in 2013-14.
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2013
(Rs. In Millions)
|
|
Particulars |
As on 30.06.2013 |
|
1 |
Gross sales/revenue from operations |
127043.000 |
|
|
Less: Excise duty |
1492.400 |
|
|
Net sales/revenue
from operations |
125550.600 |
|
2 |
Expenses: |
|
|
a) |
i) Consumption of raw materials, components. |
|
|
|
and stores, spares & tools |
28800.700 |
|
|
ii) Sub-contracting charges |
35561.600 |
|
|
iii) Construction materials consumed |
28630.000 |
|
|
iv) Purchases of stock-in-trade |
4769.500 |
|
|
v) Changes in inventories of finished goods. |
|
|
|
work-in-progress and stock-in-trade |
(12890.100) |
|
|
vi) Other manufacturing, construction |
|
|
|
and operating expenses |
12620.000 |
|
b) |
Employee benefits expense |
11687.600 |
|
c) |
Sales, administration and other expenses |
5656.500 |
|
d) |
Depreciation, amortisation and obsolescence |
2102.800 |
|
|
Total expenses |
116938.600 |
|
3 |
Profit from operations
before other income finance costs and exceptional items (1-2) |
8612.000 |
|
4 |
Other income |
4726.000 |
|
5 |
Profit from
ordinary activities before finance costs and exceptional items (3+4) |
13338.000 |
|
6 |
Finance costs |
2452.800 |
|
7 |
Profit from
ordinary activities after finance costs but before exceptional items (5-6) |
10885.200 |
|
8 |
Exceptional items |
- |
|
9 |
Profit from
ordinary activities before tax (7+8) |
10885.200 |
|
10 |
Provision for taxes: |
|
|
a) |
Provision for current tax |
3355.900 |
|
b) |
Provision for deferred tax |
(31.000) |
|
|
Total provision for
taxes |
3324.900 |
|
11 |
Net profit after
tax from ordinary activities (9-10) |
7560.300 |
|
12 |
Extraordinary items |
- |
|
13 |
Net profit after tax
for the period (11+12) |
7560.300 |
|
14 |
Paid-up equity share capital (face value of share: ? 2 each) |
1232.500 |
|
15 |
Reserves excluding revaluation reserve |
|
|
|
Earnings per share (Post-bonus) (Not annualised) |
|
|
|
[refer note (i)]: |
|
|
16 |
Basic EPS before extraordinary items (?) |
8.18 |
|
17 |
Diluted EPS before extraordinary items (?) |
8.13 |
|
18 |
Basic EPS after extraordinary items (?) |
8.18 |
|
19 |
Diluted EPS after extraordinary items (?) |
8.13 |
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
Public shareholding |
|
|
|
- Number of shares ('000s) |
596863 |
|
|
- Percentage of shareholding |
96.86% |
|
2 |
Promoters and promoter
group shareholding |
Nil |
|
|
[refer note (iv)] |
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the
beginning of the quarter |
Nil |
|
|
Received during the
quarter |
28 |
|
|
Disposed of during the
quarter |
26 |
|
|
Remaining unresolved
at the end of the quarter (*since resolved) |
2* |
Note:
- On July 15, 2013, the Company allotted bonus equity shares of Rs. 2 each, fully paid-up, in the ratio of 1:2, (one bonus equity share of Rs.2 each for every two equity shares of ? 2 each held) to all registered shareholders as on the record date. The earnings per share [" EPS"] data for all the periods disclosed above have been adjusted for the issue of bonus shares as per the Accounting Standard 20 on Earnings Per Share.
- The Company, during the quarter ended June 30, 2013, has allotted 8,41,559 equity shares of Rs.2 each (equivalent to 12,62,339 equity shares of Rs. 2 each post-bonus) fully paid-up, on exercise of stock options by employees, in accordance with the Company's stock option schemes.
- The Board of Directors of the Company at its meeting held on May 22, 2013 has approved a Scheme of Arrangement between Larsen & Toubro Limited and L and T Hydrocarbon Engineering Limited ("LTHE"), a wholly owned subsidiary of the Company and their respective shareholders and creditors which inter alia envisages transfer of the Hydrocarbon business undertaking along with related assets and liabilities into LTHE and other consequential matters under the provisions of Sections 391 to 394 of the Companies Act, 1956. The Appointed Date of the Scheme would be April 01, 2013. The Scheme of Arrangement has been filed with Hon'ble Bombay High Court. Pending approval of the said Scheme of Arrangement, no effect of the scheme has been given in the books of account. Consequently, the financial results of the Company include the financial results of Hydrocarbon business undertaking. In line with the Accounting Standard 24, the financial of Hydrocarbon business undertaking, which has also been identified as a separate reportable segment in the current financial year, are given below for information:
(Rs. In Millions)
|
1 Net sales/revenue from operations |
27568.100 |
|
(Including other income and inter-unit revenue) |
|
|
2 Profit from ordinary activities before tax |
1393.100 |
|
3 Net profit after tax from ordinary activities |
919.600 |
The promoters 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 results have been subjected to Limited Review by the Statutory Auditors, reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 22, 2013.
Segment-wise Revenue,
Result and Capital Employed in terms of clause 41 of the listing agreement:
(Rs. In Millions)
|
Particulars |
As on 30.06.2013 |
|
Gross segment
revenue: |
|
|
1 Infrastructure |
54608.100 |
|
2 Hydrocarbon |
27763.300 |
|
3 Power |
12749.400 |
|
4 Metallurgical and Material
Handling |
10869.200 |
|
5 Heavy Engineering |
8508.700 |
|
6 Electrical & Automation |
7943.600 |
|
7 Machinery & Industrial
Products |
5393.800 |
|
8 Others |
3191.100 |
|
Total |
131027.200 |
|
Less: Inter-segment revenue |
3984.200 |
|
Net segment
revenue |
127043.000 |
|
Segment result
(Profit before interest and tax): |
|
|
1 Infrastructure |
5378.800 |
|
2 Hydrocarbon |
1600.600 |
|
3 Power |
985.200 |
|
4 Metallurgical and Material
Handling |
1381.500 |
|
5 Heavy Engineering |
898.800 |
|
6 Electrical & Automation |
703.000 |
|
7 Machinery & Industrial
Products |
632.900 |
|
8 Others |
(111.800) |
|
Total |
11469.000 |
|
Less: Inter-segment margins on capital jobs |
7.500 |
|
Less: Interest expenses |
2452.800 |
|
Add: Unallocable corporate income net of expenditure |
1876.500 |
|
Profit before
tax |
10885.200 |
|
Capital employed
(Segment assets less segment liabilities): |
|
|
1 Infrastructure |
95039.800 |
|
2 Hydrocarbon |
17590.500 |
|
3 Power |
4433.900 |
|
4 Metallurgical and Material
Handling |
27218.100 |
|
5 Heavy Engineering |
21569.700 |
|
6 Electrical & Automation |
14286.500 |
|
7 Machinery & Industrial
Products |
4160.200 |
|
8 Others |
11012.300 |
|
Total capital
employed in segments |
195311.000 |
|
Unallocable corporate assets less corporate liabilities |
214661.500 |
|
Total capital
employed |
409972.500 |
Notes:
(I) 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. The operations of the Engineering and Construction which were hitherto reported as part of one single segment have now been reported into different segments based on internal restructuring and granular clarity of segment information.
(ii) Segment composition: Infrastructure comprises engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution and water and renewable energy projects. Hydrocarbon comprises complete EPC solutions for the global Oil and Gas Industry from front-end design through detailed engineering, modular fabrication, procurement, project management, construction, installation and commissioning. Power comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation equipment with associated systems and/or balance-of-plant packages. Metallurgical and Material Handling comprises turnkey solutions 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 sector including manufacture and sale of industrial machinery and equipment. Heavy Engineering comprises manufacture and supply of custom designed, engineered critical equipment and systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil and Gas, Thermal and Nuclear Power, Aerospace and Defence. Electrical and Automation comprises manufacture and sale of low and medium voltage switchgear components, custom built low and medium voltage switchboards, electronic energy meters/protection (relays) systems and control and automation products. Electrical and Automation also included medical equipment business in the previous year. Machinery and Industrial Products comprises manufacture and sale of rubber processing machinery and castings, manufacture and marketing of industrial valves, construction equipment and industrial products. Others comprise integrated engineering services, shipbuilding and property development.
(iii) Segment revenue comprises sales and operational income allocable specifically to a segment. Un allocable expenditure mainly includes expenses incurred on common services provided to segments and other corporate expenses. Un allocable income primarily includes interest income, dividends and profit on sale of investments. Corporate assets mainly comprise investments.
(iv) In respect of majority of the segments for the Company, sales and margins do not accrue uniformly during the year. Hence, the operational/financial performance of aforesaid segments can be discerned only on the basis of figures for the full year.
AS PER WEBSITE
DETAILS
PRESS
RELEASES:
CITI DOWNGRADES CUMMINS INDIA TO 'SELL', PREFERS L AND T
Oct 10, 2013
Citigroup has downgraded Cummins India to "sell" from
"neutral" and cut the price target to Rs 377 from Rs 410, noting that
its shares rallied in the last month despite a difficult operating environment.
Citigroup says power demand in India has eased since November 2012, while diesel prices have risen, posing a challenge for the diesel engine maker.
"Given the tougher operating environment, we would not be surprised if this guidance gets revised downwards," Citi said in a note to its clients.
Citi added that investors should switch to Larsen & Toubro instead. *At 0359 GMT, shares of Cummins were up 0.59 percent at Rs 404.
On October 11, 2013, Cummins India closed at Rs 403.25, up Rs 1.50, or 0.37 percent. The 52-week high of the share was Rs 550.00 and the 52-week low was Rs 365.05.
The company's trailing 12-month (TTM) EPS was at Rs 27.05 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 14.91. The latest book value of the company is Rs 86.10 per share. At current value, the price-to-book value of the company was 4.68.
L AND T BAGS ORDERS WORTH RS 1100CR,
SEES GULF AS THRUST AREA
Oct 07, 2013
Larsen and Toubro , on Monday, bagged two engineering,
procurement, and construction (EPC) orders worth Rs 1,100 crore in the
hydrocarbon segment for UAE and Qatar regions. K Venkataramanan, its MD and CEO
says that international orders are challenging given the new geography, but
Gulf will be a major driving force going forward. The company has received
order from UAE and Qatar, he elaborates on the orders to CNBC-TV18 in an
interview.
Below is an edited
transcript of his interview to CNBC-TV18.
Q: These orders are from Gulf countries.
Is it going to be the space which will bag you many orders as your past announcements
have been from there?
A: We are a strategic brand for the Gulf market. Our set up is divided into two headquarters, one in UAE and the other Saudi Arabia. These are two jobs in PDOShell Oman (Petroleum Development Oman). This particular job (order) is from UAE. The second one is add-on to job we had got in Qatar from Dolphin Energy. Going forward, other than the important Indian customers like Oil and Natural Gas Corporation ( ONGC ) and Reliance Industries Ltd ( RIL ), we certainly are looking at Gulf as a major thrust area.
Q: The market
perception is that a couple of these Gulf orders usually come in at lower
margins. What could be the margin profiles with these orders?
A: We quote them at similar margin as we don’t quote at lower margins. Definitely, these are more challenging jobs working in the new geography. Though we have to work hard to see that we don’t erode the margins, it takes one or two jobs with the customer to realise the quoted margin. On October 11, 2013, Larsen and Toubro closed at Rs 881.95, up Rs 36.00, or 4.26 percent. The 52-week high of the share was Rs 1152.07 and the 52-week low was Rs 678.10. The company's trailing 12-month (TTM) EPS was at Rs 51.93 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 16.98. The latest book value of the company is Rs 273.16 per share. At current value, the price-to-book value of the company was 3.23.
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 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. 61.16 |
|
|
1 |
Rs. 97.77 |
|
Euro |
1 |
Rs. 82.78 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
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 |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
71 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.