MIRA INFORM REPORT

Report Date :

08.05.2014

IDENTIFICATION DETAILS

Name :	LARSEN AND TOUBRO LIMITED

Registered Office :	L and T House, Ballard Estate, Mumbai – 400001, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	07.02.1946

Com. Reg. No.:	11-004768

Capital Investment / Paid-up Capital :	Rs. 1230.800 Millions

CIN No.: [Company Identification No.]	L99999MH1946PLC004768

PAN No.: [Permanent Account No.]	AAACL0140P

Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturer and Seller of Electrical and Electronics, Machinery and Industrial Products, and also provide Engineering and Construction Projects.

No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 1165000000

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Exist

Comments :	Subject is one of the leading players in the Engineering and Construction (E and C) sector in India. It is a well-established and reputed company having excellent track record. The rating reflects the long operating history, proven track record of sound project execution and engineering skills along with a strong financial profile. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	AAA (Non-Convertible Debenture)
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	June 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.

INFORMATION DENIED

MANAGEMENT NON-COOPERATIVE (91-22-67050505)

LOCATIONS

Registered/ Head Office :	L and T House, Ballard Estate, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22618181/ 22618182/ 22685656/ 67525656
Fax No.:	91-22-22620223/ 22617480/ 22685893/ 67525858/ 67525893/ 55525858
E-Mail :	sdk@lth.ltindia.com subhodh.shetty@larsentoubro.com nh-sec@lth.ltindia.com akshay.shah@hed.itindia.com ss-sec@lth.ltindia.com
Website :	http://www.larsentoubro.com

ECC Division:	B and FOC, Factories and Residential BU, TCTC Building, 1^st Floor, Mount Poonamallee Road, Manapakkam, P.B. No.979, Chennai – 600089, Tamilnadu, India

Corporate Office 1:	C Block, Gate No. 1, L and T Powai Campus, Saki Vihar Road, Powai, Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-67050505
Fax No.:	91-22-67051462
E-Mail :	dattaraj_kasar@LNTENC.com

Corporate Office 2:	Kiadb Industrial Area, Hebbal Hootagalli, Mysore – 570018, Andhra Pradesh, India
Tel No.:	91-821-6616161
Fax No.:	91-821-2402813

Headquarter/ Holck-Larsen Centre/ Engineering Design and Research Centre :	22 Mount Poonamallee Road, Manapakkam P.B.No.979, Chennai - 600089, Tamilnadu, India
Tel No.:	91-44-22526000
Fax No.:	91-44-22493317
E mail:	mayurak@lntecc.com

Headquarter/ Engineering, Design & Research Centres:	Kanak Building, 41, Jawaharlal Nehru Road, Kolkata - 700071, West Bengal, India
Tel. No.:	91-33-22882601
Fax No.:	91-33-22881225
E-Mail :	Indranil_r@LNTECC.com

ECC Division :	ECC Division, Mial Project Office – North Block II, 6th Floor, Gate No. 1, Powai, Mumbai – 400072, Maharashtra, India

Factory 1 :	TLT Works, Plot No. 158-B, Sector III, Pithampur, District Dhar - 454774, Madhya Pradesh, India
Tel. No.:	91-7292-256317/ 431
Fax No.:	91-7292-256316
E-Mail :	sg-pith@lntecc.com

Factory 2 :	TLT Works, Mailam Road, Sedarapet, Pondicherry 605111, India
Tel. No.:	91-413-2672500
Fax No.:	91-413-2677727
E-Mail :	asa@lntecc.com

Factory 3 :	167, Neervalur Village, Kancheepuram - 631502, Tamilnadu, India
Tel. No.:	91-4112-27248383/ 93/ 94
Fax No.:	91-4112-27248383/ 290
E-Mail :	kasokkumar@lntecc.com

Factory :	Also located at : Faridabad Kandla Vadodara Ankleshwar Hazira Jafrabad Kovayya Nashik Pune Ahmednagar Ratnagiri Tadipatri Bangalore Mysore Awarpur Jharsuguda Kansbahal Ranoli (Baroda) Visakhapatnam Haldia

Regional Offices :	NCL Bandra Premises, Plot No. C/6, Bandra – Kurla Complex, P. O. Box No. 8119, Bandra (East), Mumbai - 400051, Maharashtra, India 2, Saki Vihar Road, P. O. Box No. 8901, Mumbai – 400072, Maharashtra, India 1/FL, Laxminarayan Complex, 10/1, Palace Road, P. O. Box 122, Bangalore – 560002, Karnataka, India Also located at: New Delhi Lucknow Kolkata Vadodara Ahmedabad Arakkonam Pune Hyderabad Chennai Bangalore

Overseas Offices :	Located At: Japan Nepal Sultanate of Oman Bangladesh Malaysia Sweden Russia UK USA Dubai Abu Dhabi Sharjah Saudi Arabia Bahrain Qatar Oman Kuwait Kenya Bhutan West Indies Jordan Kazakhstan Sri Lanka

Area Offices :	Located At: Ahmedabad Bangalore Chandigarh Chennai New Delhi Kolkata Hyderabad Pune Nagpur

Branch Offices :	Located At : Jaipur Guwahati Bhopal Vadodara Lucknow Jamshedpur Guwahati Bhubaneswar Vishakhapatnam Coimbatore Kochi

Engineering / Marketing Office :	12/4, Delhi Mathura Road, Near Sarai Khawaja Chowk, Faridabad – 121003, Haryana, India
Tel No.:	91-129-4291000/ 4291651/ 4291766
Fax No.:	91-129-4291222
Email:	siddharth.gupta@lntpower.com

DIRECTORS

As on: 31.03.2013

Name :	Mr. A. M. Naik
Designation :	Chairman and Managing Director

Name :	Mr. K. Venkataramanan
Designation :	Chief Executive Officer and Managing Director

Name :	Mr. M. V. Kotwal
Designation :	Whole-time Director and President (Heavy Engineering)

Name :	Mr. S. N. Subrahmanyan
Designation :	Whole-time Director and Senior Executive Vice President (Infrastructure and Construction)

Name :	Mr. R. Shankar Raman
Designation :	Whole-time Director and Chief Financial Officer

Name :	Mr. Shailendra Roy
Designation :	Whole-time Director and Senior Executive Vice President (Power Development and Corporate Affairs)

Name :	Mr. S. Rajgopal
Designation :	Non-Executive Director

Name :	Mr. S. N. Talwar
Designation :	Non-Executive Director

Name :	Mr. M. M. Chitale
Designation :	Non-Executive Director

Name :	Mr. N. Mohan Raj
Designation :	Nominee — LIC

Name :	Mr. Subodh Bhargava
Designation :	Non-Executive Director

Name :	Mr. A. K. Jain
Designation :	Nominee – SUUTI

Name :	Mr. M. Damodaran
Designation :	Independent Director

Name :	Mr. Vikram Singh Sarker
Designation :	Independent Director

Name :	Mr. Sushobhan Sarker
Designation :	Nominee of LIC

KEY EXECUTIVES

Name :	Mr. N. Hariharan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	135161836	14.98
Financial Institutions / Banks	158517644	17.57
Central Government / State Government(s)	337656	0.04
Insurance Companies	45247201	5.02
Foreign Institutional Investors	171225959	18.98
Sub Total	510490296	56.59
(2) Non-Institutions
Bodies Corporate	66272899	7.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	187334827	20.77
Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions	14825906	1.64
Qualified Foreign Investor	99	0.00
Any Others (Specify)	123191835	13.66
Foreign Nationals	388332	0.04
Non Resident Indians	7750345	0.86
Trusts	111606174	12.37
Directors & their Relatives & Friends	3443552	0.38
Foreign Corporate Bodies	3432	0.00
Sub Total	391625566	43.41
Total Public shareholding (B)	902115862	100.00
Total (A)+(B)	902115862	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	24796796	0.00
Sub Total	24796796	0.00
Total (A)+(B)+(C)	926912658	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, New Delhi

b) Registration with the Directorate General of Technical Development

c) Approval obtained from the Government of India, Ministry of Industry, New Delhi

d) Agreement with Government of India, Ministry of Petroleum and Natural Gas.

@ 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 Divulged

Bankers :

· State Bank of India

· Bank of India

· Central Bank of India

Facilities :

Secured Loan	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Redeemable non-convertible fixed rate debentures	9000.000	9000.000

SHORT TERM BORROWINGS
Loans repayable on demand from banks	2092.600	1325.800
Short term loans and advances from banks	1247.500	4207.600

Total	12340.100	14533.400
Note: Loans repayable on demand from banks include fund based working capital facilities viz. cash credits and demand loans. The secured portion of loans repayable on demand from banks of Rs. 2092.600 millions (previous year Rs. 1325.800 millions), short term loans and advances from banks of Rs.1247.500 millions (previous year Rs. 4207.600 millions), working capital facilities and other non-fund based facilities viz. bank guarantees and letters of credit, are secured by hypothecation of inventories, book debts and receivables. Short term loans and advances from banks includes loans amounting to Rs. 102.100 millions (previous year Rs. 2548.800 millions) availed under bill discounting facility and are secured against specific receivables.

Banking Relations :	--

Auditors :
Name :	Sharp and Tannan Chartered Accountants

Solicitors:	Manilal Kher Ambalal and Company

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 Krishnagiri Thopur 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 Delhi

CAPITAL STRUCTURE

After 22.08.2013

Authorised Capital : Rs.3250.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.1850.513 Millions

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 India	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 1^st Quarter	30.09.2013 2^nd Quarter	31.12.2013 3^rd Quarter
Audited / Unaudited	Unaudited	Unaudited	Unaudited
Net Sales	125550.600	145095.100	143875.100
Total Expenditure	114835.800	131078.100	127126.800
PBIDT (Excl OI)	10714.800	14017.000	16748.300
Other Income	4726.000	4494.200	4467.800
Operating Profit	15440.800	18511.200	21216.100
Interest	2452.800	2427.600	2908.500
Exceptional Items	0.000	0.000	1043.900
PBDT	12988.000	16083.600	19351.500
Depreciation	2102.800	2163.600	1991.700
Profit Before Tax	10885.200	13920.000	17359.800
Tax	3324.900	4144.900	4952.800
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	7560.300	9775.100	12407.0
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	7560.300	9775.100	12407.000

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

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	1217.700	1224.800	1230.800
Reserves & Surplus	217244.900	251005.400	290196.400
Net worth	218,462.600	252,230.200	291,427.200

long-term borrowings	54254.100	53300.600	72710.300
Short term borrowings	9061.700	29367.200	7345.300
Total borrowings	63,315.800	82,667.800	80,055.600
Debt/Equity ratio	0.290	0.328	0.275

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (Net)	439058.700	531705.200	608732.600
		21.101	14.487

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (Net)	439058.700	531705.200	608732.600
Profit	39578.900	44565.000	49106.500
	9.01%	8.38%	8.07%

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

Case Details

Bench :- Bombay

Presentation Date :- 11.03.2014

Loading No.:- ITXAL/655/2014 Filing Date:- 11.03.2014 Reg. No.:- ITXA/886/2014 Reg. Date:- 06.05.2014

Petitioner:- COMMISIONER OF INCOME TAX-2

Petn. Adv.:- SURESH KUMAR (I2 100)

District:- MUMBAI

Respondent:- LARSEN AND TOUBRO LIMITED -

Bench:- DIVISION

Status:- Pre-Admission

Next Date:- 12.06.2014

Coram:- ACCORDING TO SITTING LIST

ACCORDING TO SITTING LIST

Category:- TAX APPEALS

Stages:-

Act :- Income Tax Act, 1961 Under Section 260A

UNSECURED LOAN

Particulars	31.03.2013 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90214183	27/06/1983 *	180,000,000.00	STATE BANK OF INDIA	NEW ADMINIETRATIVE BUILDING, MADAME CAMA ROAD, MUMBAI, Maharashtra - 400021, INDIA	-
2	10398963	04/12/2012	225,694,754.00	Chennai Metro Rail Limited	No.7, "Harini Towers", Conran Smith Road, Gopala puram, Chennai, Tamil Nadu - 600086, INDIA	B66434689
3	10148310	21/01/2011 *	4,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, MUMBAI, Maharashtra - 400001, INDIA	B04764122
4	90213928	15/02/2003	100,000,000.00	state ank od india	CAG BRANCH, NARIMNA POINT, MUMBAI, Maharashtra - 400021, INDIA	-
5	90214910	02/11/2002	1,150,000,000.00	UTI BANK LTD	OFFICE : MAKER TOWERS (F) 13 FLOOR CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
6	90213817	25/02/2002	100,000,000.00	THE INDDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA L	163 BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA	-
7	90214856	03/08/2001	5,000,000,000.00	UTI BANK LTD	TOWER (F) 13 FLOOR CUFFE PARADE, MUMBAI, MUMBAI, Maharashtra - 400005, INDIA	-
8	90213742	13/12/1998 *	104,000,000.00	ABN AMRO BNAK N V	41 VEER NAROMAN ROAD, MUMBAI, Maharashtra - 400023, INDIA	-
9	90213735	10/06/2002 *	10,000,000.00	UTI BANK LIMITED	MAKER TOWER (F) 13 FLOOR CUFFICE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
10	90213721	13/12/1998 *	40,000,000.00	EXPORT IMPORT BANK OF INDIA	CENTRA ONE FLOOR 21 TRADE CENTRE, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
11	90214851	15/10/2001 *	75,000,000.00	UTI BANK LTD	office MAKER TOWER 13 FLOOR CUFE PARADE, MUMBAI, MUMBAI, Maharashtra - 400005, INDIA	-
12	90214842	22/03/2001	400,000,000.00	UTI BANK LTD	OFFICE : MAKER TOWERS (F) 13 FLOOR CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
13	90214836	08/02/2001	500,000,000.00	UTI BANK LTD	OFFICE : MAKER TOWER (F0 13 FLOOR CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
14	90213610	28/11/2000 *	500,000.00	ICICI LIMITED	ICIVU TOWER, BADRA(E) MUMBAI, MUMBAI, Maharashtra - 400051, INDIA	-
15	90214807	27/06/2000	250,000,000.00	UTI BANK LTD	OFFICE : MAKER TOWERS (F) 13 FLOOR CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
16	90214796	28/03/2000	1,200,000,000.00	UTI BANK LTD	office MAKER TOWER 13 FLOOR CUFE PARADE, MUMBAI, MUMBAI, Maharashtra - 400005, INDIA	-
17	90213487	10/06/2002 *	500,000,000.00	UTI BANK LIMITED	MAKER TOWER (F) 13 FLOOR CUFFICE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
18	90214767	14/08/1999	12,500,000,000.00	UTI BANK LTD	TOWER (F) 13 FLOOR CUFFE PARADE, MUMBAI, MUMBAI, Maharashtra - 400005, INDIA	-
19	90214765	29/07/1999	250,000,000.00	UTI BANK LTD	OFFICE : MAKER TOWERS (F) 13 FLOOR CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
20	90214753	29/05/1998 *	200,000,000.00	UTI BANK LTD	office MAKER TOWER 13 FLOOR CUFE PARADE, MUMBAI, MUMBAI, Maharashtra - 400005, INDIA	-
21	90213320	28/11/2001 *	10,000,000.00	ICICI LIMITED	ICIVU TOWER, BADRA(E), MUMBAI, Maharashtra - 400051, INDIA	-
22	90213156	17/03/1998	11,300,000.00	GENERAAL INSURANCE COPORATINON OF INDIA	BHACAM INDUSSTRIAL ASSSURANCE, MUMBAI, Maharashtra - 400020, INDIA	-
23	90213141	28/11/2000 *	500,000,000.00	ICICI LIMITED	ICIVU TOWER, BADRA(E) MUMBAI, MUMBAI, Maharashtra - 400051, INDIA	-
24	90215582	24/11/1996 *	500,000,000.00	ICICI LTD.	163; BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA	-
25	90215575	31/12/1997	1,000,000,000.00	THE INDUSTRIAL AND INVESTMENT CORPORATION UF INDIA	163 BACLBAU RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA	-
26	90213119	18/12/1997	10,250,000.00	EXPORT IMPORT BANK OF INDIA	MAKER CHAMBERS IV, 222 NARIMAN POINT, BOMBAY, Maharashtra - 400021, INDIA	-
27	90215562	25/11/1997 *	1,500,000,000.00	THE INDUSTRIAL AND INVESTMENT CORPORATION UF INDIA	163 BACLBAU RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA	-
28	90215547	25/11/1984 *	50,000,000.00	LIFE UNSURANCE CORPORATION UF INDIA	YAGAKSEMA JEEVAN BIMA MAR, MUMBAI, Maharashtra - 400021, INDIA	-
29	90215520	24/09/1996	100,000,000.00	STATE BANK OF PATIALA	CORPORATE BRANCH, ARCADE 13 WORLD TRADE CENTRE CUFFEPARADE, BOMBAY, Maharashtra, INDIA	-
30	90212924	18/12/1996 *	83,333,333.00	BANK OF AMERICA	WXPRESS TOWER, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	-
31	90212910	11/08/1996	25,000,000.00	ANZ GRINDLAYAS BANK LI MITED	90 MAHATMA GANDHI ROAD, MUMBAI, Maharashtra - 400001, INDIA	-
32	90212908	18/12/1996 *	100,000,000.00	STATE ABNK OF INDORE	INDUSTRIAL FINANCE BRANSH, 10. NANDHAI LANE, MUMBAI, Maharashtra - 400020, INDIA	-
33	90212907	18/12/1996 *	350,000,000.00	PUNJAB NATIONAL BANK	INDUSTRIAL FINANCE BRANSH, MAKER TOWERS (E) CUFFE PAFADE, MUMBAI, Maharashtra - 400005, INDIA	-
34	90215498	24/11/1996 *	1,000,000,000.00	ICICI LTD.	163; BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA	-
35	90212824	19/02/1996	105,000,000.00	INDUSTRIAL FINANCE BRANCH	BHACAM MARG, 239 VIDHAN BHAVAM NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	-
36	90215482	24/11/1998 *	750,000,000.00	STATE BANK OF INDIA	20TH FLOOR; EXPRESS TOWERS, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	-
37	90212809	30/03/1998 *	500,000,000.00	INDUSTRIAL DEVELOPMENT BANK IF INDIA	IDBE TOWERS, CUFFE PRADAE, MUMBAI, Maharashtra - 400005, INDIA	-
38	90212803	23/01/1996	50,000,000.00	INDUSTRIAL DEVELOPMENT BA NK OF INDIA	IDBI TOWER VUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
39	90214579	23/11/1995	800,000,000.00	CANARA BANK	CALCOT HOUSE, TAMRND LAND, BOMBAY, Maharashtra - 400023, INDIA	-
40	90215464	29/09/1995	500,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRNACH, KILLICK HOUSE; CHARANJIT RAI MARG, BOMBAY, Maharashtra - 400001, I NDIA	-
41	90215980	25/04/1995	420,000,000.00	ANZ GRINDLAYS BANK	M.G. ROAD, BOMBAY, Maharashtra, INDIA	-
42	90215445	10/04/1995	300,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH;, JUSTICE G.N. VAIDAY MARG, BOMBAY, Maharashtra - 400023, INDIA	-
43	90212649	08/04/1995	380,000,000.00	STATE BANK OF INDIA	COMMERCEAL BTANCH JUSTICE B N VAEBY A MARG, MUMBAI, Maharashtra - 400023, INDIA	-
44	90212626	18/03/1995	143,000,000.00	BANK OF INDIA	N.M. ROAD, BALLARD STATE, BOMBAY, Maharashtra - 400058, INDIA	-
45	90212592	06/01/1995	16,700,000.00	BANK OF BARODA	BOMBAY MAIN OFFICE, BOMBAY SAMACHAR MARG, BOMBAY, Maharashtra - 400023, INDIA	-
46	90212571	18/11/1994	30,000,000.00	ICICI LIMITED	163; BACKBAY RECLAMTION, BOMBAY, Maharashtra - 400020, INDIA	-
47	90212492	31/03/1994	600,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE; COLOBA, BOMBAY, Maharashtra - 400005, INDIA	-
48	90212477	09/03/1994	20,932,325.00	ADB PROJECT	ENGINEER ADB PROJECT, S4; PACKAGE; ROURKELA, Orissa, INDIA	-
49	90212473	05/03/1994	6,767,490.00	ANB PROJECT	52 PACKAGE, SAMBALPUR, Orissa, INDIA	-
50	90212454	05/02/1994	1,750,000,000.00	STATE BNK OF INDIA	COMMERCIAL BRANCH, JUSTICE GN VAIDYA MARG, MUMBAI, Maharashtra - 400023, INDIA	-

*Date of Modification

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 advanced5 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 alm5ost 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 (aluminum, 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 DECEMBER, 2013

(Rs. in Millions)

		3 months ended		6 months ended
	Particulars	31.12.2013	30.09.2013	31.12.2013
1	Gross sales/revenue from operations	145340.600	124468.500	369344.700
	Less: Excise Duty	1465.500	1384.400	4146.400
	Net sales/revenue from operations	1438751	123084.100	365198.300
2	Expenses:
a)	i) Consumption of raw materials, components, and stores, spares and tools	19279.400	18580.400	57911.600
	ii) Sub-contracting charges	34100.600	29347.700	89235.400
	iii) Construction materials consumed	43863.300	31662.700	102809.900
	iv) Purchases of stock-in-trade	4641.100	4695.400	14106.000
	v) Changes in inventories of finished goods, work-in-progress and stock-in-trade	183.200	(4033.400)	(16853.700)
	vi) Other manufacturing, construction and operating expenses	9789.10	9941.400	29463.400
b)	Employee benefits expense	10681.500	13753.400	34326.600
c)	Sales, administration and other expenses	4588.600	7280.000	16677.100
d)	Depreciation, amortisation and obsolescence1991.700	1991.700	1925.700	5785.800
	Total expenses	129118.500	113153.300	333462.100
3	Profit from operations before other income, finance costs and exceptional items (1-2)	14756.600	9930.800	31736.200
4	Other income	4467.800	4655.900	13994.600
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	19224.400	14586.700	45730.800
6	Finance costs	2908.500	2378.800	7711.500
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)	16315.900	12207.900	38019.300
8	Exceptional items	1043.900	--	1043.900
9	Profit from ordinary activities before tax (7+8)	17359.800	12207.900	39063.200
10	Provision for taxes:
a)	Provision for current tax	4692.800	3514.500	11090.700
b)	Provision for deferred tax	260.000	47.000	276.00
	Total provision for taxes	4952.800	3561.500	11366.700
11	Net profit after tax from ordinary activities (9-10)	12407.000	8646.400	27696.500
12	Extraordinary items	--	--	--
13	Net profit after tax for the period (11+12)
14	Paid-up equity share capital (face value of share: Rs. 2 each)
15	Reserves excluding revaluation reserve Earnings per share (Not annualised):
16	Basic EPS before extraordinary items (Rs.)	13.40	9.35	29.94
17	Diluted EPS before extraordinary items (Rs.)	13.32	9.30	29.77
18	Basic EPS after extraordinary items (Rs.)	13.40	9.35	29.94
19	Diluted EPS after extraordinary items (Rs.)	13.32	9.30	29.77
20	Recurring Profit after tax from continuing operations (i.e. Profit after tax excluding exceptional, extraordinary items and discontinued operations)	11363.100	8646.400	26652.600

SELECT INFORMATION FOR THE QUARTER ENDED DECEMBER, 2013

	Particulars	3 months ended		9 months ended
		31.12.2013	30.09.2013	31.12.2013
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding:
	- Number of shares ('000s)	--	897877*	899673*
	- *post bonus [refer note (i)]
	- Percentage of shareholding		97.04%	97.15%
2	Promoters and promoter group shareholding	--	Nil	Nil

B	INVESTOR COMPLAINTS	3 months ended 31.12.2013
	Pending at the beginning of the quarter	Nil
	Received during the quarter	21
	Disposed of during the quarter	21
	Remaining unresolved at the end of the quarter	Nil

NOTES:

1. Pursuant to the Scheme of Arrangement (“the scheme”) between Larsen and Toubro Limited and L and T Hydrocarbon Engineering Limited (“LTHE”), a wholly owned subsidiary of the Company and their respective shareholders and creditors, the Hydrocarbon business undertaking along with related assets and liabilities has been transferred to LTHE upon sanction of the scheme by the Hon'ble Bombay High Court vide order dated December 20, 2013. The certified copy of the order sanctioning the scheme has been filed with the Registrar of Companies on January 16, 2014. Accordingly, the effect of the scheme has been given from April 1, 2013 as follows:

The financial results of the Company exclude the financial results of erstwhile Hydrocarbon business undertaking for the periods commencing on or after April 1, 2013. The transactions with the erstwhile Hydrocarbon business undertaking entered on or after April 1, 2013 have been considered as inter-company transactions.

The figures for the periods ending on or before March 31, 2013 have been restated as per the requirement of Accounting Standard (AS) 24 to exclude the financial results of erstwhile Hydrocarbon business undertaking to arrive at the financial results from continuing operations. The transactions with the erstwhile Hydrocarbon business undertaking entered in the periods ending on or before March 31, 2013 have been reclassified and presented under respective heads.

The net result of the erstwhile Hydrocarbon business undertaking has been disclosed separately under discontinued operations for the periods ending on or before March 31, 2013 as required by Accounting Standard (AS) 24 and Revised Schedule VI of the Companies Act 1956. Revenue from operations of the erstwhile Hydrocarbon business undertaking for quarter ended December 31, 2012, nine-months period ended December 31, 2012 and year ended March 31, 2013 is 261903 Lakh, 734881 Lakh and 961543 Lakh respectively

2. The Company, during the quarter ended December 31, 2013, has allotted equity shares equivalent to 8,12,615 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.

3. On July 15, 2013, the Company allotted bonus equity shares of 2 each, fully paid-up, in the ratio of 1:2, (one bonus equity share of 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 (AS) 20 on Earnings Per Share.

4. The basic and diluted EPS as disclosed under Sr. No. 20 to 23 in the aforesaid results do not include the results of Hydrocarbon business for the periods from April 1, 2013. However, the EPS figures for the corresponding periods of the previous year are based on results which include Hydrocarbon business. Accordingly, the basic and diluted EPS for the periods commencing on or after April 1, 2013 are not comparable with the figures of the corresponding periods of the previous year

SEGMENT-WISE REVENUE, RESULT AND CAPITAL EMPLOYED IN TERMS OF CLAUSE 41 OF THE LISTING AGREEMENT:

(Rs. in Millions)

	3 months ended		9 month ended
Particulars	31.12.2013	30.09.2013	31.12.2013
Gross segment revenue
1 Infrastructure	89084.600	72148.300	215758.400
2 Power	12116.400	11811.300	36677.400
3 Metallurgical and Material Handling	15556.400	11154.900	37580.500
4 Heavy Engineering	10494.700	10642.000	29644.700
5 Electrical and Automation	10028.000	9499.900	27471.800
6 Machinery and Industrial Products [refer note (ii) below]	4403.300	5068.500	14865.600
7 Others	5742.600	5276.700	14211.300
Total	14742.600	125601.600	376209.700
Less: Inter-segment revenue	2085.400	1133.100	6865.000

Segment result (Profit before interest and tax)
1 Infrastructure	9132.900	8588.400	23100.100
2 Power	658.200	1458.400	3101.800
3 Metallurgical and Material Handling	2201.100	1591.300	5173.900
4 Heavy Engineering	1563.600	1654.800	4117.200
5 Electrical and Automation	1163.000	828.300	2694.200
6 Machinery and Industrial Products [refer note (ii) below]	579.600	433.600	1646.200
7 Others	916.700	(731.600)	73.300
Total	16215.100	13823.200	39906.700
Less: Inter-segment margins on capital jobs	24.600	2.500	31.200
Less: Interest expenses	2908.500	2378.800	7711.500
Add: Unallocable corporate income net of expenditure	4177.800	766.000	6899.200
Profit before tax	17359.800	12207.900	39063.200

Capital employed (Segment assets less segment liabilities)

(Rs. in Millions)

Particulars	31.12.2013
1 Infrastructure	109396.300
2 Power	2288.700
3Metallurgical and Material Handling	29344.300
4 Heavy Engineering	22648.900
5 Electrical and Automation	13759.400
6 Machinery and Industrial Products [refer note (ii) below]	5859.000
7 Others	11596.700
Total capital employed in segments	194693.300
Unallocable corporate assets less corporate liabilities	252921.600
Total capital employed	447614.900

NOTES:

Segments have been identified in accordance with Accounting Standard (AS) 17 on Segment Reporting, considering the risk/return profiles of the businesses, their organisational structure and the internal reporting systems. 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.

Pursuant to the transfer of the Hydrocarbon business undertaking under the Scheme of Arrangement w.e.f. April 1, 2013, the capital employed of the erstwhile Hydrocarbon segment has been disclosed under discontinued operations. The revenue from operations of the Hydrocarbon business undertaking for the periods ending on or before March 31, 2013 has been disclosed vide Note (i) (c) to the financial results.

The Company has transferred at book value to its wholly owned subsidiaries, the business of manufacturing and marketing of industrial valves effective July 1, 2013 and Cutting Tools business effective July 15, 2013. Both these businesses were hitherto reported as part of the Machinery and Industrial Products segment.

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. 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 (upto the date of transfer), construction equipment and industrial products (upto the date of transfer). Others comprise integrated engineering services, shipbuilding and property development.

Segment revenue comprises sales and operational income allocable specifically to a segment. Unallocable income primarily includes interest income, dividends and profit on sale of investments. Unallocable expenditure mainly includes expenses incurred on common services provided to segments and other corporate expenses. Corporate assets mainly comprise investments.

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:

BHEL, LARSEN AND TOUBRO WOES MEAN LITTLE HOPE FOR ECONOMY

For an economy desperate for signs that the slowdown in growth has bottomed out, the worsening plight of Bharat Heavy Electricals Limited (BHEL) and Larsen and Toubro (L and T) — flag bearers of the crucial capital goods sector — spells bad news.

The country’s top two equipment manufacturers are facing strong headwinds, with BHEL struggling with a sharp drop in annual order inflows to Rs.320000.000 Millions from around Rs 60,0000.000 Millions just two years back. L&T has been forced to cut its order book by Rs.170000.000 Millions last quarter on concerns over potential cancellations as mounting industrial sector woes continue to take a toll on the broader investment outlook.

Analysts point out that orders booked now by the capital goods sector — considered a proxy for investment sentiment — would come on stream only over the next 5-7 years. A subdued outlook now, therefore, diminishes the possibility of a pick-up in the near future.

For BHEL, its a double blow of sorts, since the firm has worked hard to ramp up its mainstay power equipment manufacturing capacity from 6,000 MW five years back to a peak capacity of 20,000 MW now, even as order inflows have slumped to nearly half. Besides, there are payment problems, as customers refuse advances and fall back on final payments before taking delivery. At a recent deposition before the Parliamentary Standing Committee on Industry when the demand for grants was being discussed, the Department of Heavy Industries and the top brass of BHEL are learnt to have informed the panel that the power sector scenario presented “a bleak picture”, due to which Bushel’s order book “was expected to diminish in the next two to three years”.

Plus the problem with payments continue to fester, with BHEL being forced to write-off around Rs 2800.000 Millions last quarter for which it had done provisioning earlier. The company, officials said, kept pursuing with the customer and finally deemed the amount as “totally non-recoverable”.

“Three years back, the question put to BHEL was that even as the order book backlog was increasing, why are you not able to deliver? Now that the company can deliver more, the orders have vanished,” an official involved with the company said. The signs of stress are clearly showing up. BHEL has been forced to withhold despatches of finished equipment to a number of project developers during the last two quarters of the last fiscal in a desperate bid to pressure them to pay, a move that has dented the topline of the state-owned firm.

L&T was forced to write-off orders worth Rs 170000.000 Millions — over 10 per cent of its order book — last quarter as a “prudent practice” on concerns over delays or potential cancellations. Even as the firm added a disclaimer that these projects have not been canceled by customers and may be written back later, it is worried that orders worth another Rs 60000.000 Millions — around 4 per cent of the order book — may “move slowly”.

Going forward too, company officials have cited a “challenging environment in India and a highly competitive environment abroad”.

CITI DOWNGRADES CUMMINS INDIA TO 'SELL', PREFERS L AND T

October 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 and 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 11000.000 MILLIONS, SEES GULF AS THRUST AREA

October 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.

L and T Construction Secures Rs. 29350.000 Millions Order in Qatar Company's

Single Largest Electrical Contract

December 18, 2013

Mumbai, : The Power Transmission and Distribution Business of L and T Construction has secured a prestigious major international EPC (engineering, procurement, construction) order valued at Rs. 29350.000 millions (473 Mn USD /1723 Mn QAR) from Qatar General Electricity and Water Corporation (KAHRAMAA) for the supply, construction and commissioning of 18 EHV (Extra High Voltage) substations and 151 km of EHV cabling in Qatar.

This order is part of the Qatar Power Transmission System Expansion - Phase XI - Stage I and is the single largest order for the Company in the Power Transmission and Distribution business.

The scope includes supply, erection, testing and commissioning of Gas Insulated Switchgear of 220/132/66/22kV, power transformers, 220/132/66kV EHV cables, 11kV air insulated switchgear, protection and substation systems, DC system and auxiliaries. The contract encompasses design and construction of civil buildings with a complete set of utilities such as air conditioning, fire protection and lighting systems.

The project is scheduled to be completed in 22 months.

These substations are being built to augment the existing power system network to cater to growing infrastructure facilities. The project is spread across prominent locations in Qatar.

L and T is already executing similar EHV substations and EHV cables as part of Phase X for KAHRAMAA. The order affirms L and T's strong operational competencies and customer goodwill in GCC countries.

Commenting on the order, Mr. S.N. Subrahmanyan, Member of the Board and Senior Executive Vice President (Infrastructure and Construction), L and T said that "this order, won against stiff global competition reconfirms L and T's leadership position in this sector at GCC. It also aligns well with L and T's expansion plans in the international arena."

Background:

Larsen and Toubro is a USD 14 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. Its products and systems are marketed in over 30 countries worldwide. L and T is one of the largest and most respected companies in India's private sector. A strong, customer-focused approach and the constant quest for top-class quality have enabled L and T to attain and sustain leadership in its major lines of business over seven decades.

L and T Construction is a brand of Larsen and Toubro Limited.

L and T gets CCI nod to fully acquire L&T Komatsu

Apr 12, 2013

NEW DELHI: Fair trade regulator CCI today said it has approved engineering major L and T’s proposed buyout of 50 per cent stake held by Japanese giant Komatsu in their joint venture for manufacturing of hydraulic excavators.

Larsen and Toubro (L and T) and Komatsu hold 50 per cent stake each in their joint venture, L and T Komatsu Limited (LTK), and the Indian corporate giant has now proposed to buyout Komatsu's stake to take its holding to 100 per cent in this venture.

Komatsu holds this stake through its Singapore-based construction and mining equipment unit, Komatsu Asia Pacific.

After looking into the application seeking CCI approval for the deal, the fair trade regulator said in its order, dated April 9 and released today, that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".

"...the Commission hereby approves the proposed combination," it added.

Following the acquisition, L and T Komatsu -- which is engaged in the business of manufacturing hydraulic excavators, used in the construction and mining sectors -- would come under the sole control of L and T.

As per the details submitted to CCI, hydraulic excavators sold by L and T Komatsu constituted around 23 percent of the total hydraulic excavators sold in India in fiscal 2011-12.

It also said that following the buyout the technology licensed to L and T Komatsu would be given back to Komatsu.

CCI observed that L and T Komatsu manufactured most of the hydraulic excavators using the Komatsu technology and only a few using its own technology and that L and T was only providing marketing and after sales services for the products.

According to CCI, "L and T did not manufacture hydraulic excavators except through L and T Komatsu, the exit of Komatsu from L and T Komatsu, consequent to the proposed combination, is not likely to raise any competition concern".

L and T has submitted to CCI that to meet the Indian market requirements and till Komatsu sets its own manufacturing units in the country, both firms could also enter into certain transition arrangements, under which L and T Komatsu or its successor would provide contract manufacturing services to Komatsu India for 3-4 years.

Further, it is proposed that L and T would market and sell the products of Komatsu India and Komatsu and would also provide after sales support, among other things.

L and T had approached CCI for its approval on March 14 this year pursuant to the execution of its share purchase agreement with Komatsu Asia Pacific earlier that month.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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. 60.04
UK Pound	1	Rs. 101.96
Euro	1	Rs. 83.58

INFORMATION DETAILS

Information Gathered by :	SVA

Analysis Done by :	KAR

Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--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	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

Headquarter/ Engineering, Design & Research Centres:

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