Lanco is a Leading EPC Player in India

7/30/2019 Lanco is a Leading EPC Player in India

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AnnuAl RepoRtlAnCo Ifrach limid 2011-12

Towards

consolidation


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Contents

ConsolidatedFinancialStatements

104Auditors Report

106Balance Sheet

107Statement of Profit and Loss

108Cash Flow Statement

110Notes

StatutoryReports

01Corporate Information

03Year at a Glance

04Directors Report

12Management Discussion

and Analysis

38Report on Corporate

Governance

StandaloneFinancialStatements

53Auditors Report

58Balance Sheet

59Statement of Profit and Loss

60Cash Flow Statement

62Notes


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Laco is a leadig EPC playe i Idia ow with

global ootpits. 25 yeas ago, we stated as a

small costctio compay. Mch has chagedsice the. Today, we have tasomed oselves

ad emeged as a lage, itegated iastcte

etepise. We have otifed o ogaisatio to

meet the most datig challeges, ad leveage

oppotities that peset themselves i the

yeas to come.

Howeve, a ew thigs emai exactly how they

wee whe we bega. O passio o pogess

ad zest o evoltio, o istace.

Also, o ability to imbibe sophisticated

pocesses, opeatioal abilities ad skills.

O dametal appoach emais simple.

Combiig the best techology ad the geatest

hma talet to ceate wold-class cocept to

commissioig soltios that empowe lives.

2011-12 epeseted aothe step towads

o visio ad ability to adapt i a dyamiceviomet ad ealig oselves. We bagged

o fst iteatioal EPC ode i the Middle

East. We commeced the costctio o the

meto ail pojects i Cheai ad Delhi. We wee

awaded thee pojects to bild tasmissio

lies o Powe Gid Copoatio o Idia Limited

PGCIL. O themal powe plats peomed

well. Ad, we commissioed 94 MW o capacity i

the Sola Powe segmet.

An eventul year.A momentous journey.A frm step towardsconsolidation.


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A passionatestart, aprogressive

transormation


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InrASTruCTurE

nATurALrESOurCES

SOLAr

POWEr

EnGInEErInGPrOCurEMEnT AnDCOnSTruCTIOn (EPC)

Business Verticals


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Progress

Post the completio o Amakatak I ad II pojects, Lacos

fst sccessl EPC poject, the Compay became the

sccessl bidde i may pojects ad exected may o them.

EPC-thermal

Strengths

ast-tack exectio

Timely ad qality deliveables i a cost-eective mae

Stog i-hose egieeig team capable o codctig

pe-awad ad eview egieeig with completesystems itegatio

Best pactices ad pocess bechmakig, as pe

iteatioal stadads

Excellet elatioships with vedos & eqipmet

spplies / agecies

Project Portolio

Projects already executed

366 MW

Combied cycle gas based powe plat Kodapalli

600 MWImpoted coal based themal powe plat udpi

1200 MW

Coal based themal powe plat Apaa

Projects under execution

1320 MW

Coal based themal powe plat Amakatak

1320 MW

Coal based themal powe plat Babadh

1320 MW

Coal based themal powe plat Vidabha

1980 MW

Themal powe plat Koadi1200 MW

Themal powe plat Mosebae

600 MW

Impoted coal based themal powe plat udpi

732 MW

Gas based powe plat Kodapalli

250 MW

Gas based powe plat Akaz, Iaq


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EPC-hydro

Progress

Laco oayed ito the vast ad tapped potetial o the hydo

powe secto. We emeged as a hydo-electic poject compay

thogh the costctio o small hydo pojects. Gadally, we

also moved ito the costctio o lage hydo-electic powe

pojects. Sccesslly completed o 5 MW hydo pojects ad

oe 70 MW Bdhil hydo poject.

Projects under execution

76 MWHydo powe plat Phata

500 MWHydo powe plat Teesta

Strengths

Expetise i desig ad eectio o lage-sized adial

gates, stop logs ad othe Hydo-Mechaical HM

compoets o hydo pojects

Ability to execte hydo-powe pojects o ay size ad

complexity acoss geogaphies

Itegated team o Desiges, Hydologists, Geologists,

Costctio Maages, Poject Maages, Bsiess

Developmet Maages, O&M expets, Iovatio

expets, Hr & iace expets

4 X 5 MWSmall Hydo

70 MWHydo Powe Plat Bdhil

Project Portolio



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EPC-inrastructure

Progress

Costctio pojects beig its base, iastcte

developmet emeged as a atal pogessio o Laco. This

ivolved the exectio o lage civil ad ba iastcte

pojects. roads, highways, pots, aipots, ailway lies,

istittioal ad commecial bildigs ae some o the pojects

allig de this domai. Laco sccesslly completed two

oad pojects ea Begal.

Project Portolio


82 kmneelamagla Jctio Bagaloe Devihalli nH-48

81 kmBagaloe Hoskote Mlbagal nH-4

Projects under implementation

238 kmToll oad betwee Kap ad Aligah nH 91

Milestone projectsCheai Meto

Delhi Meto

Powe Gid Copoatio o Idia Limited 345 KM o 765

KV ad 85 KM o 400 KV tasmissio lie

Toyo Egieeig / Idia Oil Copoatio Limited

refey woks

IL&S Wate Limited 100 KM wate pipelie alog with

wate teatmet system

StrengthsDedicated egieeig desig sppot teams acoss bsiess

veticals o vale egieeig ad costctio methodsExtesive expeiece i civil ad costctio wok sig

the latest techology i civil costctio

Techology tie-ps/joit vete elatioships with

iteatioal majos acoss bsiesses

Shotlisted ad bid o lage pojects sch as Dedicated

eight Coido Copoatio, DMrC, Italcemeti, SAIL etc.

SolarLaco has eteed the sise idsty o sola powe

geeatio. Laco set p a itegated model i sola powe

geeatio statig om poly silico maactig to sola

powe plat establishmet. It sccesslly exected sola PV

powe pojects o 94 MW as a Develope ad a EPC cotactoad is also i the pocess o exectig 300 MW sola themal

ad sola PV pojects as a Develope ad a EPC cotacto.


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Aiming higher!Opportunities in sight

Govemet o Idia evisaged

$1 tillio ivestmet ithe iastcte secto o the 12th ive Yea Pla

Idias expected eegy demad o

1392 Teawatt hosby 2016-17, with a peak demad o 218 GW, eqies a

additioal capacity o 135 GW to satiate the pojected

demad.

35,000 km hge highwaydevelopmet oppotity o pivate secto


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Board o Directors

Mr. L. Madhusudhan Rao

Exective Chaima

Mr. G. Bhaskara Rao

Exective Vice - Chaima

Mr. L. Sridhar

Vice - Chaima

Mr. G. Venkatesh Babu

Maagig Diecto

Mr. S. C. Manocha

Depty Maagig Diecto

Dr. Pamidi Kotaiah

Diecto

Dr. B. Vasanthan

Diecto

Mr. P. Abraham

Diecto

Mr. R. Krishnamoorthy

Diecto

Dr. Uddesh Kumar Kohli

Diecto


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11

C Ii

Board o dIreCtors Mr. L. Madhusudhan Rao - Executive Chairman

Mr. G. Bhaskara Rao - Executive Vice - Chairman

Mr. L. Sridhar - Vice - Chairman

Mr. G. Venkatesh Babu - Managing Director

Mr. S. C. Manocha - Deputy Managing Director

Dr. Pamidi Kotaiah - Director

Mr. P. Abraham - Director

Dr. Uddesh Kumar Kohli - Director

Dr. B. Vasanthan - Director

Mr. R. Krishnamoorthy - Director

ChIe operatIng oICer InanCe Mr. T. Adi Babu

exeCutIve dIreCtor & Mr. C. Krishnakumar

Company seCretary

audItors s. r. Bibi & aci

Chartered Accountants

Golf View Corporate Tower-B

Sector-42, Sector Road

Gurgaon- 122 002Haryana, India

B & C.

Chartered Accountants

48, Masilamani Road

Balaji Nagar, Royapettah

Chennai 600 014

Tamil Nadu, India

regIstered oICe Plot No.4, Software Units Layout, HITEC City,Madhapur, Hyderabad 500 081, Andhra Pradesh, India

Phone: +91-40-4009 0400, Fax: +91-40-23116109

E-mail: [email protected]

Website: www.lancogroup.com

Corporate oICe Lanco House, Plot No. 397, Udyog Vihar, Phase-3,

Gurgaon-122 016, Haryana, India.

Phone: +91-124-474 1000, Fax: +91-124-474 1878


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LANCO Inrach Lii ANNuAL RepORt 2011-12

222

Bankers and InanCIal Allahabad Bank

InstItutIons o the Company Andhra BankAxis Bank Limited

Bank of BarodaBank of China

Bank of IndiaBank of Maharashtra

Canara BankCentral Bank of India

Corporation Bank

DBS BankDena Bank

Deutsche BankHDFC Bank Limited

HSBCICICI Bank Limited

IDBI Bank Limited

Industrial & Commercial Bank of ChinaIndian Bank

Indian Overseas BankIndusInd Bank Limited

Infrastructure Development Finance Company LimitedING Vysya Bank Limited

Kotak Mahindra Bank Limited

Lakshmi Vilas BankLife Insurance Corporation of India

National Bank of IraqOriental Bank of Commerce

Punjab & Sind BankPunjab National Bank

Srei Infrastructure Finance Limited

Standard Chartered BankState Bank of Bikaner & Jaipur

State Bank of HyderabadState Bank of India

State Bank of MysoreState Bank of Patiala

Syndicate Bank

Tamilnad Mercantile Bank Limited

Tata Capital LimitedThe Catholic Syrian Bank LimitedThe Jammu & Kashmir Bank

UCO Bank

Union Bank of IndiaUnited Bank of India

Vijaya BankYes Bank Limited

regIstrars & share li Ii Ii pi lii

transers agent (Unit: Lanco Infratech Limited)

C-13, Pannalal Silk Mills Compound, L.B.S. Marg,Bhandup (West), Mumbai 400 078, Maharashtra, India

Phone: +91-22-25946970, Fax: +91-22-25946969Email: [email protected]

Website: www.linkintime.co.in


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333

y gc - Ci

` Lakhs

pic 2011-2012 2010-2011 C (%)

pf l acc

Gross Revenue 15,39,808 11,30,490 36

Less: Elimination of Inter Segment Revenue 5,11,151 3,26,078 57

Net Revenue 10,28,657 8,04,412 28

Profit Before Depreciation, Interest and Taxation (PBITDA) 1,84,860 2,15,199 (14)

Depreciation and Amortisation 56,280 35,373 59

Profit Before Interest and Taxation 1,28,580 1,79,826 (28)

Eliminated Profit on transactions with Subsidiaries 75,862 45,811 66

Profit Before Interest and Taxation Plus Elimination 2,04,442 2,25,637 (9)

Interest and Finance Charges 1,05,385 75,767 39

Profit Before Taxation, Exceptional Item Plus Elimination 99,057 1,49,870 (34)

Exceptional Item 11,643 - 100

Profit Before Taxation Plus Elimination 1,10,700 1,49,870 (26)

Provision for Taxation (Including Deferred Tax and MAT Credit

Entitlement)

22,462 38,496 (42)

Profit After Tax (Before Minority Interest and Share of Profits from

Associates)

88,238 1,11,374 (21)

Share of Minority Interest 13,428 17,033 (21)

Share of Profits / (Loss) from Associates (6,022) 261 (2,406)

Profit After Tax (After Minority Interest and Share of Profits from

Associates) Plus Elimination

68,788 94,602 (27)

Prior Period Items 360 111 226Elimination of Profit on Transactions with Subsidiaries and Associates 79,631 49,884 60

Profit After Tax (After Minority Interest and Share of Profits from

Associates)

(11,203) 44,607 (125)

Cash Profit 1,37,802 1,21,768 13

Bc s

Share Capital 23,896 23,872 -

Reserves & Surplus 4,46,709 4,38,441 2

Minority Interest 95,188 84,533 13

Net Worth Plus Minority Interest 5,65,793 5,46,845 3

Eliminated Profit on Transactions with Subsidiaries and Associates

(Cumulative)

1,51,292 84,195 80

Net Worth Plus Minority & Elimination 7,17,085 6,31,040 14

Non Current Liabilities 26,96,692 15,59,249 73

Current Liabilities 15,78,885 8,13,580 94

Non Current Assets 37,48,421 21,49,698 74

Current Assets 10,92,950 7,69,977 42

C s

Cash from Operating Activities before Elimination 4,18,467 3,26,145 28

k iic

Earning Per Share (in `)

Basic (0.48) 1.92 (125)

Diluted (0.48) 1.90 (125)No. of Employees 7,914 6,761 17


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4

dicr


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5

StAtutORy RepORtS StANdALONe fINANCIAL StAtemeNtS CONSOLIdAted fINANCIAL StAtemeNtS

To

The Members

Your Directors have pleasure in presenting the Nineteenth Annual Report on the Business and Operations of the Company

together with the Audited Accounts for the year ended March 31, 2012.

InanCIal results ` Lakhs

ConsolIdated

y e mc 31

standalone

y e mc 31

2012 2011 2012 2011

InCome

Revenue from operations and other income 10,28,657.33 8,04,411.55 8,66,924.77 5,91,514.71

Profit Before Taxation 34,838.31 1,04,058.43 10,626.40 42,031.59

Provision for Taxation 22,462.24 38,495.90 (940.84) 14,200.00

Net Profit after Taxation 12,376.07 65,562.53 11,567.24 27,831.59

Less: Prior period items 360.34 110.67

Add: Share of Profit/(Loss) of Associates (6,021.81) 261.16

Less: Elimination of Unrealised Profit onTransactions with Associate Companies 3,768.96 4,073.48

Less: Share of Minority Interest 13,428.43 17,032.65

n pf/ (l) ti, mii I

s pf/ (l) aci (Bc

Ci Bc s) (11,203.47) 44,606.89 11,567.24 27,831.59

Surplus brought forward 1,61,417.24 1,19,810.35 1,35,007.92 1,07,176.33pf aib aii 1,50,213.77 1,64,417.24 1,46,575.16 1,35,007.92

Transfer (from)/to Capital Redemption Reserve 1,677.32 0.00

Transfer to General Reserve 2,803.75 3,000.00

Premium paid on buy back of shares by a subsidiary 179.28 0.00

Proposed Dividend and Dividend Distribution Tax 1.86 0.00

Bc Ci Bc s 1,45,551.56 1,61,417.24 1,46,575.16 1,35,007.92

dIvIdend

As a measure of prudence and with a view to conserveresources for funding the business plans of the Company,

no dividend on the Equity Shares for the year ended

March 31, 2012 was recommended.

operatIons revIew

On a Consolidated basis your Company has reported

Gross Revenues of ` 10,28,657.33 Lakhs as against

` 8,04,411.55 Lakhs of Revenues registered in the Previous

Year. Total Expenditure for the Year was ` 10,05,462.19

Lakhs as against ` 7,00,353.12 Lakhs in the Previous

Year. The Earnings Before Interest, Tax, Depreciation andAmortisation (EBITDA) amounted to ` 1,84,859.78 Lakhs

while the same was ` 2,15,198.62 Lakhs for the Previous

Year i.e. a decrease of 14%. The Profit Before Taxation stoodat ` 34,838.31 Lakhs, a decrease of 66% as compared to

` 1,04,058.43 Lakhs in the Previous Year.

The Net Profit/(Loss) after Tax after adjustment of

Minority Interest and Share of Profits of Associates was

` (11,203.47) Lakhs as against ` 44,606.89 Lakhs for the

Previous Year.

Gross Interest and Finance charges on consolidated

basis amounted to ` 1,05,385.10 Lakhs in comparison to

` 75,766.78 Lakhs due to increase in loans and Working

Capital Requirements for Project Execution.


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6

A detailed discussion on the results of the operations and

the financial condition is included in the Management

Discussion and Analysis section placed at Annexure-IV to

this report.

BusIness revIew

A detailed business review is being given in the Management

Discussion and Analysis Section of the Annual Report placed

atAnnexure-IV to this report.

suBsIdIary CompanIes

The following Companies have become Subsidiaries of the

Company:

Emerald Orchids Private Limited, Helene Power Private

Limited, Lanco Solar Power Projects Private Limited,

Mahatamil Mining and Thermal Energy Limited, Nix

Properties Private Limited, Omega Solar Projects

Private Limited, Orion Solar Projects Private Limited,

Pasiphae Power Private Limited, Sabitha Solar Projects

Private Limited, Lanco Anpara Power Limited, Udupi

Power Corporation Limited, Approve Choice Investments

(Proprietary) Limited, Bar Mount Trading (Proprietary)

Limited, Barrelake Investments (Proprietary) Limited,

Belara Trading (Proprietary) Limited, Caelamen (Proprietary)

Limited, Dupondius (Proprietary) Limited, Filten Trading(Proprietary) Limited, Gamblegreat Trading (Proprietary)

Limited, K2011103835 (South Africa) (Proprietary) Limited,

Lanco Infratech Nepal Private Limited, Lanco Solar Canada

Limited, Lanco Solar International GmbH, Lexton Trading

(Proprietary) Limited, Solar Fi SP 06, Solar Fi SP 07, Tiper

Solaire SAS.

The names of the following Subsidiaries have been changed:

Diwakar Solar Projects Limited (earlier Diwakar Solar

Projects Private Limited), Lanco Amarkantak Power Limited

(earlier Lanco Power Limited), Lanco Power Limited (earlier

Lanco Power Private Limited), Lanco Solar Power Projects

Private Limited (Earlier Caliban Trading Private Limited),

Mahatamil Mining and Thermal Energy Limited (Earlier

Lanco Mining and Thermal Energy Limited), Lanco Thermal

Power Limited (Earlier Vamshi Industrial Power Limited),

Lanco Hydro Power Limited, (Earlier Lanco Hydro PowerPrivate Limited), Lanco IT P.V. Investments B.V. (Earlier

Lanco Italy PV1 Investment B.V.), Lanco Solar Holdings LLC

(Earlier Lanco North Park Land Holding Two LLC), Lanco

solar US EPC Branch LLC (Earlier Lanco North Park Land

One LLC), Lanco SP P.V. Investments B.V. (Earlier Lanco

Spain PV1 Investment B.V.), Lanco US P.V. Investments B.V.

(Earlier Lanco Italy PV2 Investment B.V.).

note on partICulars reQuIred as per seCtIon 212

o the CompanIes aCt, 1956

In terms of the provisions of Section 212 of the CompaniesAct, 1956, the Company was required to attach the Annual

Reports of the Subsidiary Companies and the related

detailed information to the Balance Sheet of the Holding


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7


Company. However, the Ministry of Corporate Affairs vide

their General Circular No. 2/2011 dated February 8, 2011

granted general exemption to the Companies under Section

212(8) from the requirement to attach detailed financial

statements of each Subsidiary. Accordingly, the Annual

Report does not contain the financial statements of the

subsidiaries. The detailed financial statements and audit

reports of each Subsidiary are available for inspection at the

Registered Office of the Company and upon written request

from a Shareholder, your Company will arrange to send the

financial statements of Subsidiary Companies to the said

Shareholder.

health, saety and envIronment

Our Groups journey in the perspective of Health, Safety

& Environment (HSE) has been encouraging and on right

path. Corporate HSE has been driving various initiatives

like HSE Audit Management, Contractor HSE Management

and Train the Trainer Programme to propel awareness on

HSE at sites. Apart from this, initiatives were taken to assist

our contractors to partner with us to enhance our HSE

performance. Towards these objectives separate workshops

were conducted with Contractors and Site Directors to give

a feel of our expectations.

The group has started its process of innovation to HSE

processes through share and learn programme. Site

personnel share the best HSE processes among themselves,

which are of significant value to enhance HSE performance

and give a new image to the organisation.

Our HSE performance is realised with recognition of ourefforts in HSE and towards their sustenance. The true

reflection of our HSE culture is more evident at our Tanjore

and Kondapalli sites, which have participated in various HSE

awards and won them to make us proud. A brief description

is below:

si a

Lanco Tanjore

Power Company

Limited

Golden Peacock Award for Climate

Security during the year 2011;

Greentech Award for Environment

Protection during the year 2011.Lanco Kondapalli

Power Limited

EHS Excellence Award 2011 from CII

on best HSE practices.

dIreCtors

In accordance with the provisions of the Companies Act,

1956 and the Articles of Association of the Company,

Mr. L. Sridhar, Dr. Uddesh Kumar Kohli and

Dr. B. Vasanthan, Directors retire by rotation and being

eligible, offer themselves for re-appointment.

We report with grief the demise of Mr. P. Narasimharamulu,

Independent Director who passed away on April 13, 2012.

The Board of Directors places on record its appreciation


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8

towards the significant contribution and valuable services

rendered by Late Mr. P. Narasimharamulu during his tenure

as Independent Director.

The Board of Directors appointed Mr. R. Krishnamoorthy as

an Additional Director with effect from May 29, 2012. In terms

of Section 260 of the Companies Act, 1956 he shall hold

office upto the date of the ensuing Annual General Meeting

of the Company. The Company has received requisite Notice

in writing from a Member proposing his candidature for the

office of Director liable to retire by rotation.

deposItsYour Company has not accepted deposits falling within the

provisions of Section 58A of the Companies Act, 1956 read

with the Companies (Acceptance of Deposits) Rules, 1975

during the year under review.

audItors

S.R. Batliboi & Associates, Chartered Accountants and

Brahmayya & Co., Chartered Accountants, Auditors of the

Company, will retire at the conclusion of the Annual General

Meeting. S.R. Batliboi & Associates, Chartered Accountants

conveyed their inability to be considered for re-appointment

as Auditors.

Special Notice under Section 225 read with Section 190

of the Companies Act, 1956 was received, proposing an

Ordinary Resolution to appoint Brahmayya & Co., Chartered

Accountants, as Auditors from the conclusion of the Annual

General Meeting to the conclusion of the next Annual

General Meeting, in place of the retiring Auditors.

Brahmayya & Co., Chartered Accountants, have conveyed

their willingness to accept appointment and confirmed

their eligibility under Section 224 (1B) of the CompaniesAct, 1956.

Cost audItors

Pursuant to Order from the Ministry of Corporate Affairs,

DZR & Co., Cost Accountants have been appointed as Cost

Auditors for the year 2011-12. They are required to submit

the report to the Central Government within 180 days from

the end of the accounting year.

dIsClosure o partICulars wIth respeCt to

ConservatIon o energy, teChnology aBsorptIon

and oreIgn exChange earnIngs and outgoInformation pursuant to Section 217(1)(e) of the Companies

Act, 1956, read with Companies (Disclosure of particulars in

the Report of Board of Directors) Rules, 1988, is enclosed

as Annexure-I.

dIsClosure on Companys employees stoCk

optIon plans

The Employees Stock Option Plan - 2006 and the Employees

Stock Option Plan 2010 were approved by Shareholders

by passing Special Resolutions in the Extraordinary General

Meeting held on June 7, 2006 and Annual General Meeting

held on July 31, 2010, respectively.

The required information relating to the said schemes

pursuant to Clause 12 of the SEBI (ESOS/ESOP) Guidelines,1999, are enclosed as Annexure-II.

partICulars o employees

The information required to be published under the

provisions of Section 217(2A) of the Companies Act, 1956

read with Companies (Particulars of Employees) Rules,

1975 as amended is enclosed as Annexure-III.

management dIsCussIon and analysIs

The Management Discussion and Analysis as required

under Clause 49(IV)(f) of the Listing Agreement is enclosed

as Annexure-IV.

Corporate governanCe

The Report on Corporate Governance is given separately in

this Annual Report. The Certificate of Practising Company

Secretary certifying compliance in this regard is annexed to

the said Report.

dIreCtors responsIBIlIty statement

As required by Section 217(2AA) of the Companies Act, 1956,

your Directors hereby confirm that:

i) in the preparation of the annual accounts, the

applicable accounting standards have been followed

and that no material departures are made from the

same;

ii) we have selected such accounting policies and applied

them consistently and made judgements and estimates

that are reasonable and prudent so as to give true

and fair view of the state of affairs of the Company at

the end of the financial year and of the profits of the

Company for the period;

iii) we have taken proper and sufficient care for themaintenance of adequate accounting records in

accordance with the provisions of the Companies Act,


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9


1956, for safeguarding the assets of the Company

and for preventing and detecting fraud and other

irregularities; and

iv) we have prepared the annual accounts on a going

concern basis.

InormatIon on audItors oBservatIons

The observations of the Auditors in Paragraphs 4 & 5(v) in

their Report on Standalone Financial Statements read with

Note no. 38 of the Standalone Financial Statements provide

fullest information and explanation and hence are not

required to be reiterated.

Further, the observations of the Auditors in Paragraphs 4

and 5 in their Report on Consolidated Financial Statements

read with Note Nos. 52 D (VI), 65, 42, 63, 64, 37, 54, 59, 38,

39 of the Consolidated Financial Statements provide fullest

information and explanation and hence are not required to

be reiterated.

aCknowledgement and appreCIatIon

Your Directors take this opportunity to thank all the

stakeholders including Shareholders, Financial Institutions,

Banks, Customers, Suppliers and Regulatory and

Governmental Authorities for their continued support to

the Company. Directors also wish to place on record their

sincere appreciation of the hard work, dedication and

commitment of Employees at all levels.

b B

l. m rExecutive Chairman

g. v BbManaging Director

DIN-00074790 DIN-00075079

Place: Gurgaon,

Date: August 13, 2012.


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LANCO Infrach Limid ANNuAL RepORt 2011-12

10

FORMING PART OF THE DIRECTORS REPORT

Technology Absorption and Adaptation and Innovation

Lanco Infratech Limited is focused on both coal as well as gas based power projects. In coal based segment, the major thrust

is on super critical plants with unit size configuration of 660 MW / 800 MW (which have better plant performance). Also, the

Company is offering boilers based on Circulating fluidised bed combustion (CFBC) technology, as it can fire low-grade fuel or

fuel with highly fluctuating fuel quality and also controls sulphur and NOx emission. In the gas based segment the Company

is offering open as well as combined cycle power plants of varied capacities which ranges from 200 MW to 1200 MW.

Innovations and Technological Adaptation carried out

ChemicalVaporDeposition(CVD)Design-One of the most critical processes in Poly silicon manufacturing is Chemical

Vapor Deposition (CVD) reactors where the operating temperature is around 900-1100 degree Centigrade. In order

to avoid any mechanical distortion or damages to the reactors, this temperature needs to be brought down and

continuously maintained below 140 degree Centigrade. The Company, with the guidance of its consultant, designed a

system with 9 independent drives to provide a non-interrupted flow of cooling fluid. In an effort to optimise cost, the

system was redesigned by using 6 drives with Rotary UPS and thus drastically reduced the cost.

ForsaferandfastexecutionoftheprojectstheCompanyusestheConstructionEngineeringmethodologyandhas

Developed Method Statement for all the construction activities.

Withkeyobjectivesofretainingorganisationalknowledge,avoidingreinventionandfacilitatinginnovation,theCompany

haslaunchedknowledgemanagementprogramwithfocusonpeople,processes,technologiesandknowledgesharing

culture. One of the examples is preparation of Commissioning manual by leveraging our experience in commissioning

of power plants and to incorporate world class best practices into our commissioning activities.

Foreign Exchange Earnings and Outgo:

(`Lakhs)

Year Ended

March 31, 2012

ForeignExchangeEarnings 3,646.26

ForeignExchangeoutgo(includingCapitalimports) 3,11,724.09

Annexure - I


21/200

11


ormIng part o the dIreCtors report

dic i cic i C 12 seBI (e sc oi sc) (e sc pc

sc) gii, 1999

s. n. dcii e sc oi p 2006

1 Total Number of Options under the plan 111,180,960

2 Options granted during the year NIL

3 Pricing Formula The options issued by the ESOP Trust

shall be at Par Value subject to the

adjustments for corporate actions

such as Bonus, Consolidation and

Split.

4 Options vested as of March 31, 2012 53,673,122

5 Options Exercised during the year 7,106,557

6 The total number of shares arising as a result of exercise of option ( As of

March 31, 2012) 38,590,979

7 Options lapsed during the year 5,270,325

8 Variation of Terms of options upto March 31, 2012 Nil

9 Money realised by exercise of Options during the year (in `) 1,726,893

10 Total Number of options in force as on March 31, 2012 70,247,485

11 Employee wise details of options granted to

(i) Senior Management during the Year NIL

(ii) Employees holding 5% or more of the total number of options granted

during the year NIL

(iii) Identified employees who were granted option during any one year,

equal to or exceeding 1% of the issued capital (excluding warrants and

conversions) of the Company at the time of grant. NIL

12 Diluted Earnings Per Share pursuant to issue of shares on exercise of

option calculated in accordance with Accounting Standard (AS) 20 ` 0.50

13 Where the Company has calculated the employee compensation cost using

the intrinsic value of the stock options, the difference between the employee

compensation cost so computed and the employee compensation cost that

shall have been recognised if it had used the fair value of the options. The

impact of the difference on profits and on EPS of the Company.

Since these options were granted at a

nominal exercise price, intrinsic value

on the date of grant approximates

the fair value of options.

14 Weighted average exercise prices and weighted average fair values of

options seperately for options whose exercise price either equals or

exceeds or is less than the market price of the stock.

Exercise Price ` 0.243 Per Option.No

new options were granted during the

year.15 A description of the method and significant assumptions used during the

year to estimate the fair values of options, including the following weighted

average information:

NA

(a) risk free interest rate

(b) expected life

(c) expected volatility

(d) Expected dividends, and

(e) the price of the underlying share in

market at the time of option grant.

a - II


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12

LANCO Inrach Lii ANNuAL RepORt 201112

ManagementDiscussion andAnalysis

Annexure IV


23/200

13

StAtutORy RepORtS StANdALONe INANCIAL StAtemeNtS CONSOLIdAted INANCIAL StAtemeNtS

ECONOMIC REVIEW

Global: th ar nr rviw was winss o nrcnchallngs across h glob. Worl conoic growh was

svrl iac b a nbr o vns. th vasaing

tsnai in Jaan, incrasing nlon in u.S.,

erozon sovrign b crisis an h oliical roil in

mil eas an Norh Arica, o na a w.

th vloing naions or a ra o ho o h ohrwis

ailing global conoic siaion. B h conoic growh

o vloing naions, oo, hasn bn qi ncoraging

ring y 2011-12.

ain signs o a rvival in h uS cono rg a h

bginning o 2012. Howvr, a rsh s o challngs havnow srck h erozon in h or o robabl Grk xi

an h worsning banking crisis in Sain. ac wih a

nw an icl siaions, h worls conoic olook

aars challnging ovr h nx 2-3 ars.

Global GDP growth %

Country 2010 2011 2012E

uSA 3.0 1.7 2.1

uK 2.1 0.7 0.8

China 10.4 9.2 8.2

Jaan 4.4 -0.7 2.0eroan union 2.0 1.6 0.0

Worl 4.2 2.8 2.7

(Sourcs: World econoic Outlook, Aril 2012)

India: th global conoic roil, col wih svral

osic isss, avrsl iac Inias conoic

growh. dring h ar, h naion was conron wih

an challngs, sch as high inrs ras, inrasrcr

consrains an liqii crnch. A o his, slow insrial

growh, wakning r, rising l rics an lack

o olic rors, an conoic growh soo svrl

sn. th naions Gdp, ring y 2011-12, sl oa 9-ar low o 6.5%.

manacring scor grw 2.5%, coar wih 7.6%

growh in h rvios ar. Srvics scor grw 8.9% vis-

a-vis 9.3%. th agriclral growh was h os ac. I

rgisr a agr 2.8% growh ring y 2011-12, ch

lowr han 7% clock ring y 2010-11.

Annual GDP growth %

Country 200910 201011 201112

uSA 8.4 8.4 6.5

Going orwar, h Inian Govrnn xcs h cono

o clock a las 6.5%-7% growh ring y 2012-13.

Iroving agriclral o owing o goo onsoons

an a anacring scor rbon hav rovi hch-n connc. Inias anacring scor is

nvisag o winss a rn-aron on accon o incrasing

invsn an ocs on rviving k scors lik ining

an nrg. ehasis is lai on incrasing/iroving l

an slis.

COMPANY REVIEW

Lanco Inrach Lii (Lanco), on o Inias laing

bsinss niis, is aong h largs riva innn

owr rocrs. W ossss a 25-ar xrinc in h

ls o enginring, procrn an Consrcion (epC),

powr, Solar, Naral Rsorcs an Inrasrcr.W bliv in h conc o coissioning epC xcion

ol. this nabls s o livr qali rojcs wihin

h bg cos an ira, nsring csor

saisacion. W hav consrc varios rojcs

classiing in h sall, i, larg an ga cagor.

ths rojcs ar across scors lik owr, roa an or

inrasrcr. W hav also carri o brownl as wll

as Grnl rojcs.

Or oraions ar sra across Inia an in varios ohr

conris. W carr o hs oraions hrogh scial

ros vhicls (SpV) cra or vloing varios

inrasrcr vlon rojcs.

3330 MWpowr Caaciis nr Oraion

6048 MWpowr Caaciis nr Consrcion

7113 MWpowr Caaciis nr dvlon


24/200

14


INDUSTRY REVIEW DEVELOPMENTS AND

OUTLOOKPower

powr is ssnial or nabling conoic growh, or

iroving h qali o li an or incrasing h

oorniis or vlon. I las a k rol in

acclraing Inias socio-conoic rogrss. Inia ranks

h globall in rs o caaci or nrg gnraion

an consion. Howvr, h r caia nrg

consion in Inia is ch low, whn coar wih

high-growh vloing conois, sch as China, Brazil

an Rssia.

Electricity consumption per capita

Howvr, h an or owr is xc o winss a norhwar ovn in Inia. this is owing o acors lik incrasing

insrialisaion, rbanisaion, ornisaion an high-growh roscs o h cono.

Ovr h as 20 ars, Inias annal owr gnraion caaci has or han rbl o aron 199.63 GW in 2012-n.

this was 66 Giga Wa (GW) in 1991. th 11h iv yar plan has winss a caaci aiion o aron 67 GW, h highs

coar o arlir plans. mor ncoragingl, 27% o h caaci aiion was conrib b h riva scor. dsi

h aiion, Inia conins o sr a ak hor ci o aron 11% annall, inicaing h hg an onial.

Installed Power Generation Capacities as on March 31, 2012

Thermal Nuclear Hydro Others TOTALCoal Gas Oil

Caaciis (GW) 112.02 18.15 1.19 4.78 38.99 24.50 199.63

% 56.0 9.2 0.6 2.4 19.5 12.3 100

(Sourc: CeA)

On accon o h incrasing an, h lcrici gnra ring h ar srass h arg lvl o 855 billion

nis (b).

Electricity Generation as on March 31, 2012

Hydro Thermal Nuclear Bhutan imports TOTAL

targ(b) 113 712 25 5 855

Achiv (b) 131 709 32 5 877

Achivn ra (%) 103

(Sourc: CeA)

16,000

14,000

12,000

10,000

8,000

Inia China Brazil Worl Rssia Jaan uS

6,000

4,000

2,000

0

kwhpercaptia

(Sourc: IeA, macquari Rsarch)

1990A 2005A 2015 2030


25/200

15


Howvr, xcion o lann args gs svrl

iac o svral challngs h owr scor acs.K isss acing h owr scor ar coal availabili,

slow ac o rors an las in ioran clarancs

(nvironn, lan an war). Aggrga chnical an

corcial losss (At&C) as wll as oor ari srcring

also conrib o h slowr growh in h owr scor.

y 2011-12 winss h Govrnn aking svral

iniiaivs o arss h scors concrns on an rgn

basis. A nbr o rors hav bn roos o sh

growh. Onc iln, hs rors will osiivl

iac h ovrall siaion o h scor. ollowing ar h

highlighs o hs rors:

Tari Fixing Process

Ss akn b h lcrici alla ribnal owars h

ari-xing rocss:

Ahoris h sa lcrici rglaor coissions

(SeRC) o rais aris on a so-oo basis, i discos

o no an ari rvision.

l ric-rla hiks can b ass hrogh on a

qarrl basis.

ollowing his, svral sas hav ao rvisions in

owr aris.

Shunglu Committee Recommendations

In dcbr 2011, h Shngl Coi rcon

svral asrs. ths wr ai a iroving

h nancial halh o sa-own owr isribion

coanis. So o hs rconaions incl:

Incras in acconabili o SeRCs hrogh

innn cision-aking

eliinaion o oliical infnc on ari-xing

Inrocion o ranchis ol in owr isribion

Charg on agriclral consion o incras

acconabili

transr o risks, o SpVs, which will rchas

isrss loans o discos ro banks, onc h ar

rsrcr

Coal Supply Improvement

prsa Coal Inia Lii o nr ino nw l

sl agrns (SAs)

Incras ini sl qani o 65%-70% (ro

crrn 50%) o nsr highr coal availabili

A nw coal linkags an roosing a ica coal

block allocaion or owr lans

Environmental Norms

Acclraing nvironnal claranc nors or asrxcion

oring sara gilins an ilins or issing

clarancs

Allowing 25% xra ining ro sa in wiho

aiional claranc

Shit to Case II Bidding

Inica a roos shi o Cas II biing

ocsing on l scalaion clas an changing

biing nors o bas biing onl on caaci chargs

an sanar ha ra (SHR)

Sector Outlook

Howvr, si h innrabl challngs, h olook

or h scor aars xrl ncoraging. th ri

rason bing ha h roos rors ar sn ging

iln. Accoring o h 17h elcric powr Srv o

Inia, h lcrical nrg an is sn rising. dan

is xc o och 1392 tra Wa hors b 2016-17, wih

a ak an o 218 GW. this ncssias an aiional

caaci o 135 GW o saia h rojc an.

th 12h plan (2012-17) rooss o a aron 76 GW o

owr caaci. th n o h hor is ovrall oraionalcinc an biling a long-r ssainabili or h

insr. An h riva scor is xc o la an

ioran rol owars achiving his.

Solar

Ovr h as svn ars, h global solar insr has

xrinc an nrcn growh. th k rasons

bing incrasing concrns ovr cliaic chang an h

n or grn an clan nrg. rhr, solar-pV ol

rics hav signicanl clin. prics hav alln ro

or han $4 r W in 2008 o js nr $1 r W

b Janar 2012, ncoraging h n or incrasinginvsns in h scor.

toa, h global owr gnraion caaci sans a 65

GW. An his is xc o grow 3.3-4.8 is b 2015,

accoring o a ma 2012 mcKins Ror on Ssainabili

& Rsorc procivi.

th Govrnn is kn o incras h shar o rnwabl

nrg in h oal gnraion caaci o owr in h

conr. I has annonc h Naional Acion plan or

Clia Chang (NApCC) o achiv h objciv. th plan

xcs ha b 2010, rnwabl nrg will conrib 5%

o h oal nrg rocrn across h conr. An is

shar will incras 1% ar-on-ar or h nx 10 ars.


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16


ths, rnwabl nrg is sn conribing 10% o h

oal nrg rocrn b 2015, an 15% b 2020. thminisr o Nw an Rnwabl enrg (mNRe) lanch

h Jawaharlal Nhr Naional Solar mission (JNNSm).

I rovis rrnial -in-aris o owr roc

ro solar nrg. Svral sas lik Gjara, Rajashan

an Karnaaka hav ollow h JNNSm an iln

hir own olicis.

rhr, h elcrici Ac, 2003 has assign h

rsonsibili o rooion o rnwabl nrg o rsciv

sa lcrici coissions (SeRCs). ths, SeRCs ar

owr o nsr a crain r-x rcnag o

rnwabl nrg in h lcrici ix in rsciv sas.

this is known as h rnwabl rchas obligaion (RpO).Inias solar RpO rqirn crrnl rangs ro nil

o 0.5% o h oal lcrici cons. An his is sn

rising o 3% b 2022.

th mNRe has roos h insallaion o 970 mW o owr

caaciis across h wo hass. Sas sch as Gjara

th scor has winss an incrasing nnc on high-cos iors o consion ns. Howvr, h

navorabl olic changs on coal iors ro Asralia an Inonsia hav os svral challngs. this, in rn,

has iac h asibili o varios rojcs. I has ariclarl ac rojcs ha hav nr ino owr o-ak

agrns a low rics wiho consiring h l ass-hrogh class. th rciaing Inian r agains h

u.S. dollar has rhr incras Inias coal ior bill. th siaion has iac h lan oraions an l o lowr

lcrici gnraion.

Coal Demand and Supply Scenario in India Million Tonnes

FY07 FY08 FY09 FY10 FY11 FY12E

Coal rocion 431 457 493 532 533 534

dosic an 464 504 549 582 612 686Shorall in osic sl hrogh

iors

33 47 56 50 79 152

Iors as % o an 7% 9% 10% 9% 13% 22%

(Sourc: India ministry of Coal)

an Rajashan hav alra bn xcing rojcs o 365

mW an 200 mW, rscivl.

Inias oal insall caaci in owr is 158.5 mW.

Howvr, hr is incrasing coal sl shorag as wll

as growing ioranc o rnwabl nrg. Owing o his,

Inias insall owr caaci is xc o incras o 6

GW in 2016; an will srass 25 GW b 2022.

Resources

Coal is an ssnial sorc o l acconing or alos 83%

o h oal nrg gnra. thr is an incrasing growh

in Inias owr gnraion caaciis. d o his, h

an or osic coal has bn growing 6% annall.

Coal Inia is h hir-largs rocr o coal, globall. I isalso h riar coal slir. Howvr, is oal rocion

has ail o k ac wih h rising coal an. An his

has l o a ris in coal rics.

(Sourc: ministry of Coal)

(Sourc: CRISIL analysis)

dosic Coal (mt): CAGR: 6%Ior Coal (mt): CAGR: 24%

Indian coal scenario

500 235

8 6 8 5 11 19 27 30

243 251 265 304 312 336 362 397 419 440 442

400

300

200

100

0

80462821

Shar o Ior Coal in oal coal consionShar o Ior Coal in Incrnal coal consion

Share o imported coal %

100

80

60

40

20

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

3 2

0 0 0

1319

50

2143

95

3 2

6 67 6

7 9 15

4 97


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17


Inrastructure

th Inian Govrnn has lai o svral iniiaivs ogra an srnghn Naional Highwas. pri aong

h is h Naional Highwas dvlon projc

(NHdp).

Inrs ro h riva scor owars h vlon

o hs highwa rojcs is on h ris. Naional Highwa

Ahori o Inia (NHAI) has ill a awar aron

~18,000 k o roas o riva lars. A las 70% o hs

or 12,500 k wr awar in h as hr ars.

th rcn rors iln b NHAI hav rhr l

o a visibl s- in conrac awars. Svral sas, oo,

hav acclra hir highwa vlon rogras.Going aha, h riva scor oorni or onial

highwa vlon is a whoing 35,000 k.

BUSINESS REVIEW

EPC*

Order book Revenues EBIDTA EBIDTA

margin

` 265,543 mn ` 99,236 mn ` 13,847 mn 14%

* Including Solar

W ar an ingra inrasrcr lar. Or epC

bsinss is h backbon or caring o owr an non-

owr inrasrcr rojcs. Or nginring caabiliis

hav bn bnchark wih naional an inrnaional

sanars. An h all h saor an rglaor

rqirns. Or coninos ocs is on caabili

nhancn in h aras o rojc anagn,

chnolog, lanning, qali, sa, halh an nvironn.

An his is, rcisl, wha nabls s o xc rojcs o

varing challngs.

Competitive Factors enginring xris across hral, hro an

consrcion rojcs, sch as highwas, airors,

insrial srcrs, ransission an isribion,

chins, cooling owrs, war inrasrcr an

hav civil srcrs

excion o ovr 4,334 mW o owr rojcs

plan signing abili, incling chanical sign,

lcrical sign, conrol an insrnaion an civil

works sign

Rlvan chnolog an roc ix

ta o ovr 4,500 qali an xrinc

rossionals

Key Developments in FY 201112

Acqir ain inrnaional epC orr in Iraq worh` 3,653 n or AKAZ powr plan o caaci 2 x 125

mW in Al-Anbar provinc

enr ino ro rail consrcion or Chnnai an

dlhi mro

Bagg hr rojcs o ~350 ks o 765 KV S/C

ransission lin or powr Gri Cororaion o Inia

Lii (pGCIL)

Col consrcion o 1200 mW Anara rojc

an 600 mW o uni 1 ui powr projc

MAJOR PROJECTS UNDER EXECUTION

External

2x660 mW or thral powr projc or mosr Bar

3x660 mW Korai thral powr projc or

mahagnco

2x125 mW Akaz Gas powr projc or Gov o Iraq

Internal

2x660 mW Aarkanak thral powr projc

2x660 mW Viarbha thral powr projc

2x660 mW Babanh thral powr projc

600 mW uni II o ui thral powr projc

732 mW uni III o Konaalli Gas powr projc

500 mW o tsa Hro powr projc

Power*

Operating

capacities

Revenues EBIDTA EBIDTA

margin

3,330 mW ` 46,126 mn ` 14,040 mn 30%

* Including Solar

Lanco Inrach lvrags is rovn xris in vloing

owr gnraing caaciis. this is achiv hrogh

convnional an non-convnional sorcs o nrg,

sch as coal, gas, hro, solar an win. th Coan

has oraional caaciis o 3,330 mW an 6,048 mW o

caaciis nr varios sags o consrcion. Aron

74% o hs caaciis ar bas on coal, 17% on gas,

whil ohr rnwabl sorcs accon or h rs.

Competitive Factors

procinc in coal ining, rojc vlon, epC

(nginring, rocrn an consrcion), O&m

(oraion an ainnanc), an raing


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18


Sragicall loca owr lans aciliaing

availabili o crcial rsorcs or rglar oraions

ecin rsorc oiisaion rsling in highr

plan Loa acor (pLs)


powr raing ivision ra 4991 illion nis

Snchronis uni II (1 x 600 mW) o Anara C anuni I (1 x 35 mW)o Bhil

COd (Corcial Oraion da) o uni I an uni II

(2 x 600 mW) o Anara C

Aarkanak powr plan uni II (1 x 300 mW) conin

owr sl o Harana an Chhaisgarh, as r h

Alla tribnal orr

Rciv moe clarancs or Aarkanak uni V an

VI (2x660 mW ach) an or h ransission lins a

ui powr plan uni II (1x600 mW)

il iion wih CeRC or ari rinaion orowr gnraion ro ui powr plan uni I & II

(2x600 mW)

Konaalli uni 1 (1x366 mW) rciv ll x charg

nr h ppA wih Aptransco

Anara powr plan (2X600 mW) nr ino a l

sl agrn wih Norhrn Coalls Lii

or coal linkag; Rciv uppCL aroval or coal

ior

Lanco tanjor cra a rcor o 133 as o

ninrr oraions

NetS, h owr raing ar o Lanco, sign a

owr raing conrac wih tail Na Gnraion

an disribion Cororaion Lii (tANGedCO).

th conrac is ai a sorcing owr ro 100 mW

Anara powr Lii or a rio o 5 ars

Perormance o the Projects under Operation

Plant Fuel Capacity

MW

PLF

%

Units

generated

MUs

Konaalli

I & II

Gas 734 67 4235

Aarkanak

I &II

Coal 600 76 4013

tanjor Gas 120 76 803

ui Ior

Coal

600 60 3161

Anara Coal 1,200 37 973

Sall Hro Hro 20 39 67

Win Win 13 21 25

Solar Solar 43 12 17

TOTAL 3,330 13,294


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19


Progress o the Projects under Construction

Plant Capacity MW Fuel Progress

Aarkanak III & IV 1,320 Coal Swichar rcion Col

Conrol roo Col

Connsr rcion Naring colion

Boilr ars rcion In rogrss

Viarbha 1,320 Coal tG ck or uni 1 Col

6h ir boilr srcral In rogrss

Babanh 1,320 Coal tG ck casing Col

Boilr#1 srcral rcionNaring colion

Chin In rogrss

ui 600 Ior Coal Snchronis an ra or oraion

Konaalli III 742 Gas 480 mW sil ccl nis snchronis

Cobin ccl unr coissioning

Gas allocaion Awai

Bhil 70 Hro uni II - unr sing or snchronisaion

tsa 500 Hro Concring in barrag workNaring colion

phaa 76 Hro da concring Naring colion

powr hos xcavaion Naring colion

HRt xcavaion col In rogrss

diwakar 100 Solar In rogrss

Solar*

Operating

capacities

Revenues EBIDTA EBIDTA

margin

43 mW ` 12,220 mn ` 3,005 mn 25%

* Including Solar powr Gnration and epC

Lanco Inrach has rg as Inias rs coan o

hav a is rsnc l across h solar val chain.

W hav alra insall 50 mW o ols rocioncaaciis. An 1,800 mt ol silicon an 100 mW war

lan is crrnl nr consrcion. Or ocs is on

rojc vlon, epC an O&m srvics as wll.

till a, w hav xc ovr 90 mW o solar rojcs.

Crrnl, w ar xcing ovr 290 mW solar epC

conracs (pV an Solar thral).

Competitive Factors

Ingra aroach

Lvraging epC xris

Key Developments in FY 201112 Coission 38 mW gnraing caaciis

Coission 80 kw solar hoovolaic rooo

owr lan a parlian Hos colx

Col consrcion o 56 mW solar hoovolaic

owr lans in Gjara

Coission or rooo rojcs:

1 mW solar ar or pnjab enrg dvlon

Agnc a Baina, pnjab

100 kW roo o ss a psha Gjral Scinc

Ci, Karhala, pnjab

40 kW rooo across 16 riar halh cnrs

an ribal hosls in Chaisgarh

25 kW rooo ss on RIteS Biling, Grgaon

Resources

Lanco Inrach is ll coi owars srnghning

is rsorcs bsinss. this is ai owars nsring l

slis an consanl xloring h oorniis in h

coal raing ark. I has acqir wo k asss ha

nabl xcion o h nion objcivs:

1. Mahatamil Project

Gar pala Scor II Coal Block, joinl alloca

o tNeB an mSmC awar ins vlon

an oraions conrac o Lanco. this is along wihvlon o n-s hral owr lan. th

onial sis or owr lan hav bn ini an


30/200

20


ilignc is in rogrss an varios arovals or

h vlon o h rojc ar nr rocss.

2. Grin Coal Mine

Loca in Wsrn Asralia, Grin Coal min is h

largs oraional hral coal in. Is hral coal

rsorcs ar in h rang o 1.1 billion onns. Coal

is roc an sli o h osic Asralian

ark an also xor. W ar crrnl lanning

a caaci nhancn rogra wih caaci bing

rais ro 4 mtpA o 18 mtpA.


proc 3.16 o coal ring h ar. O his, 0.59

was xor an 2.57 was sol in h osic ark.

Inrastructure

W hav vlo an xris in consrcing larg civilan rban roa inrasrcr rojcs. W hav sign a

Concssion Agrn wih h Naional Highwa Ahori

o Inia (NHAI) or vloing 440 k o naional highwas.

Road Inrastructure Portolio:

Project Status

82 k Nlaangla Jncion

(Bangalor) dvihalli (NH-48)

Col

81 K o Bangalor Hosko

mlbagal (NH-4)

Col

283 k - Aligarh- Kanr (NH-91) Achiv nancial

closr

FINANCIAL REVIEW

Segment Review

Revenues ` illion

Particulars FY 201112 Contribution to total

revenues in FY 201112

FY 201011 Contribution to total

revenues in FY 201011

YoY growth %

epC * 99,236 65 59,617 53 66

powr * 46,126 30 49,474 44 (7)

Rsorcs 6,903 4 1,337 1 416pror

vlon

753 0 1,673 1 (55)

Ohrs 814 1 573 1 42

TOTAL 1,53,832 100 1,12,674 100 37

Lss: Inr-

sgn rvn

51,115 32,608 57

N sals 1,02,717 80,066 28

* Including Solar


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Lanco Inrachs oal sgnal rvn (os liinaion

o inr-sgn rvn) incras 28% ring y 2011-12. Inr-sgn liinaion incras 57% owing o epC

ivisions incrasing rvn ro is sbsiiaris. prior

o liinaion, h rvn o h crrn ar shows an

incras o 37%.

Consolia ro bor inrs an axs (pBIt)cras b 3% an 21%, rscivl, his was bor anar liinaion o inr-sgn ro on ransacion wih

sbsiiaris. th cras in pBIt is ainl on accono h loss in rsorcs sgn. this was on accon ovarios inrrions o h back log o ainnancaciviis & availabili o chanical qin iacrocion. th rason or h back log was ha hbsinss was in ainisraion or abo 14 onhs. thiswas rior o h acqisiion o Grin Coal min.

Principles o Consolidation

th nancial sans o h Coan an is sbsiiarishav bn consolia on a lin b lin basis. this is onb aing oghr h book vals o lik is o asss,liabiliis, inco an xnss. An ar liinaing inra-

gro balancs, ransacions an h nralis ros/losss on inra-gro ransacions. unralis losssrsling ro inragro ransacions ar liina o hxn ha cos can b rcovr.

th consolia nancial sans ar rawn bsing nior acconing olicis or lik ransacionsan ohr vns in siilar circsancs. ths ar hnrsn o h xn ossibl in h sa annr, as hCoans inivial nancial sans.

th nancial sans o h sbsiiaris ar consolia

ro h a on which civ conrol is ransrr o h

Coan, ill h a sch conrol xiss. th irnc

bwn h cos o invsns in sbsiiaris ovr hCoans shar o book val o sbsiiaris n asss

on h a o acqisiion is rcognis as goowill or

this growh can b arib o h vlon in epC

an Rsorcs bsinss. epC rvn grw riaril onaccon o Babanh, Viarbha, Anara, Aarkanak (uni III

& IV) an Konaalli (uni III) owr rojcs. On h ohr

han, h rsorc bsinss winss a rs ll ar o

oraion a Grin ar is acqisiion.

Segment Prots ` illion

Segment FY 201112 FY 201011 YoY growth %

epC * 12,952 8,084 60

powr * 11,112 14,209 (22)

Rsorcs (2,218) 349 (735)

pror vlon (46) (30) (53)Ohrs (340) (424) 20

TOTAL 21,460 22,188 3

Lss: Inr-sgn ro on ransacions wih

sbsiiaris

7,586 4,581 66

pros bor inrs an axs 13,874 17,607 (21)

* Including Solar

caial rsrv in h consolia nancial sans.

eqi ho o acconing is ollow or invsns in

Associas in accoranc wih Acconing Sanar (AS) 23

Acconing or Invsns in Associas in Consolia

inancial Sans. In his cas, goowill / caial rsrv

arising a h i o acqisiion an shar o ro or losss

ar h a o acqisiion ar incl in carring aon

o invsn in associas.

unralis ros an losss rsling ro ransacions

bwn h Coan an is associas ar liina o

h xn o coans inrs. unralis losss rsling

ro ransacions bwn h Coan an is associas

ar also liina, nlss h cos canno b rcovr.

Invsns in associas, a or orar ross,

ar no consir or consoliaion an ar accon or

as invsns.

ping i sil, whil consoliaing h sbsiiar

coan, h liinaion aks lac a h o lin whr

h nir aon o rvn an xnir is liina.

In h cas o associa consoliaion, h nir rvn is

rcognis. B h ro or loss arn ro h associa

is liina roorional o h holing in h associa.

this ajsn is or h ro an loss accon. or

ajsn o h balanc sh in cas o sbsiiaris,

h aon qal o ro or loss liina will b n o

agains x asss. In h cas o associas, i will b n

o agains invsns.priaril, i is an ajsn which os no iac h

cash fow.


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Analysis o Prot and Loss Account ` illion

Particulars FY 201112 % o total

Income

FY 201011 % o total

Income

YoY growth

%

1 Income

2 Rvn ro Oraions 1,01,690 99 77,020 96 32

3 Ohr Inco 1,176 1 3,421 4 (66)

4 Total 2+3 1,02,866 100 80,441 100 28

5 Expenditure

6 Cos o marials Cons 50,125 48 29,844 36 68

7 prchas o tra Goos 10,044 10 16,171 20 (38)

8 Sbconrac Cos 5,243 5 6,242 8 (16)

9 Consrcion, transission, Si an mining

exnss

10,295 10 4,381 6 135

10 (Incras) / dcras in invnoris

o inish Goos an Consrcion /

dvlon Work in progrss

(3,450) (3) (4,901) (6) 30

11 elo Bns exnss 7,117 7 4,868 6 46

12 Ohr exnss 5,006 5 2,316 3 116

13 Total 6+7+8+9+10+11+12 84,380 82 58,921 73 43

14 EBITDA 413 18,486 18 21,520 27 14

15 A: eliina ro on ransacion wih

Sbsiiaris

7,586 7 4,581 5 66

16 EBITDA beore elimination 14+15 26,072 25 26,101 32

17 inanc Cos 10,538 10 7,577 9 39

18 drciaion / Aorisaion 5,628 5 3,537 4 5919 Prot beore Exceptional, Prior Period

Items, Minority Interest, Share o Prot o

Associates and Tax 161718

9,906 10 14,987 19 34

20 excional Is 1,164 1 - - 100

21 Prot beore Prior Period Items, Minority

Interest, Share o Prot o Associates and

Tax 19+20

11,070 11 14,987 19 26

22 provision or taxaion 2,246 2 3,850 5 (42)

23 Prot ater Taxation but beore Prior

Period Items, Minority Interest and Share

o Prot o Associates 2122

8,824 9 11,137 14 21

24 prior prio Is 36 0 11 0 22625 Net Prot ater Taxation, beore Minority

Interest and Share o Prots o Associates

2324

8,788 9 11,126 14 21

26 A : Shar o pro / (Loss) o Associas (602) (1) 26 0

27 Lss: Shar o minori Inrs 1,343 1 1,703 2 (21)

28 Net Prot ater Taxation, Minority Interest

and Share o Prots o Associates

25+2627

6,843 7 9,449 12 28

29 Lss: eliinaion o pro on transacions

wih Sbsiiaris an Associa Coanis

7,963 8 4,988 6 60

30 Prot ater Tax 2829 1,120 1 4,461 6 125


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Revenues From Operations

th consolia rvn ro or oraions incras 32% ring y 2011-12. this was riaril on accon o an in-cras in inco ro conrac oraions an h sal o coal. this was h rs ll ar o oraion o Grin Coal min

ar is acqisiion.

Inco ro sal o lcrical nrg clin o lowr availabili o coal an gas. Whil ha ro ror vlo-

n clin o an ongoing lgal ar. this is rgaring h lan il whrin LHtppL was rsric ro alinaing

h ror. Howvr, h Sr Cor has ass an orr an givn a go-aha o LHtppL o alina h ror.

Hnc, now h inco ro ror vlon shol b noral.

` illion

Particulars FY 201112 FY 201011 YoY growth %

Conrac Oraions 50,541 26,894 88

pror dvlon 749 1,676 (55)Sal o elcrical enrg 42,557 47,105 (10)

Sal o Coal 7,313 785 832

Sal o Ohr Goos 258 130 99

managn Conslanc Inco 135 56 141

Oraions an mainnanc Inco 1 - 100

Inco ro Las Rnals 1 - 100

Sal o eission Rcions (Cdm) - 219 (100)

Ohr Oraing Inco 135 155 (13)

TOTAL 1,01,690 77,020 32

Other Income

dring h rvios scal ar o 2010-11, Konaalli an Aarkanak chang hir rciaion olic. this was wih

rrosciv c ro h a o caialisaion. th iac o rciaion (raining o rvios ar) was shown as a

ar o ohr inco. dring h rvios ar, ohr inco incls h gain on orign xchang.

` illion


drciaion Wrin Back - 1,415 (100)

Inrs an divin Inco 720 586 23

Liabiliis an provisions no Longr Rqir Wrin

Back

16 206 (92)

Insranc Clais Rciv / Rcivabl 6 180 (97)

Rnal Inco 2 2 13

N Gain on orign exchang lcaions - 843 (100)

miscllanos Inco 375 100 275

pro on sal o Invsns 55 89 (37)

TOTAL 1,174 3,421 66


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Expenditure ` illion


expense in

FY 201112

FY 201011 % o total

expense in

FY 201011

YoY growth

%

Cos o marials Cons 50,125 60 29,844 51 68

prchas o tra Goos 10,044 12 16,171 27 (38)

Sb Conrac Cos 5,243 6 6,242 11 (16)

Consrcion, transission, Si an

mining exnss

10,295 12 4,381 7 135

(Incras) in invnoris o inish

Goos an Consrcion / dvlon

Work in progrss

(3,450) (4) (4,901) (8) 30

elo Bns exnss 7,117 8 4,868 8 46

Ohr exnss 5,006 6 2,316 4 116

TOTAL 84,380 100 58,921 100 43

Cost O Material Consumed

th oal cos o arial incras b 68% ring y 2011-12. this was o incras oraions an incras cos o

consrcion arial. Raw arial or coal also incras, as his was h rs ll ar o oraion ar h Grin Coal

min acqisiion.

` illion

Particulars FY 201112 % o totalexpense in

FY 201112

FY 201011 % o totalexpense in

FY 201011

YoY growth%

Consrcion marial Cons 30,023 60 14,501 49 107

pror dvlon Cos 1,823 4 2,439 8 (25)

marial or powr Gnraion 14,223 28 12,762 43 11

marials or Coal mining 1,825 4 142 - 1,185

marials or Solar mols 2,231 4 - - 100

TOTAL 50,125 100 29,844 100 68

Purchase o Traded Goods

prchas o ra goos is ainl on accon o owr raing. dring h ar, rchas o owr rc on accon o

h rcion in raing acivi b NetS.

SubContract Cost

Sb-conrac cos rrsns h consrcion work sb-conrac o ohr aris.

Construction, Transmission, Site And Mining Expenses

exnss on consrcion, ransission, si an ining incras b 135% ovr h rvios ar. this was owing o an

incras in ining cos an achinr hir chargs. Grin Coal min was acqir ring h rvios ar an his was is

rs ll ar o oraion. Ohr xnss also rgisr an incras o h growh in bsinss aciviis.


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` illion


expense in

FY 201112

FY 201011 % o total

expense in

FY 201011

YoY growth

%

eqin / machinr Hir chargs 1,934 19 683 16 183

transission Chargs 1,462 14 1,336 31 9

Rairs, Oraions an mainnanc 1,225 12 997 23 23

Consion o Sors an Sars 406 4 336 8 21

Si exnss 1,514 15 635 13 139

Coal mining & transoraion Cos 3,754 36 394 9 856

TOTAL 10,295 100 4,381 100 135

Employee Benets Expenses

dring y 2011-12, xnss on elo Bns incras b 46% ovr h rvios ar. th incras was on accon

o nw rcris (osic an orign) o car o h incras epC, Solar an Grin oraions.

` illion


expense in

FY 201112

FY 201011 % o total

expense in

FY 201011

YoY growth

%

Salaris, Allowancs an Bns o

elos

5,860 79 3,903 76 50

Conribion o provin n an ohr

ns

217 3 191 4 14

elo Sock Oion Charg 346 5 407 8 (15)

managrial Rnraion 384 5 247 5 56

Rcrin an training 193 3 124 2 56

Sa Wlar exnss 363 5 234 5 54

7,363 100 5,106 100 44

Lss: transrr o dvlon Cos 229 226 1

Lss: transrr o CWIp (Ohr dirc

Cos)

17 12 53

TOTAL 7,117 4,868 46

Other Expenses

Ohr xnss incras b 116% coar wih h rvios ar. d o rciaion o Inian R agains u.S. dollar,

hr was orign xchang loss ring h ar. thr was a orign xchang gain ror in h rvios ar. Ohr

xnss also incras wih h growh o bsinss aciviis.

` illion


Income

FY 201011 % o total

Income

YoY growth

%

N Loss on orign exchang lcaions 1,084 21 - - 100

Conslanc & prossional Chargs 775 15 280 10 177

provision or Wri o Avancs / Clais / dbs 242 5 76 3 218

travlling an Convanc 917 18 604 22 52Bsinss prooion an Avrisn 197 4 301 11 (35)

Rairs & mainnanc 81 2 49 2 65

Oc mainnanc 265 5 160 6 66


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` illion


Income

FY 201011 % o total

Income

YoY growth

%

Rn, Ras & taxs 855 17 697 26 23

miscllanos exnss 751 15 553 20 36

5,167 100 2,720 100 90

Lss: Rcovr o Coon exnss 57 47 21

Lss: transrr o dvlon Cos 42 28 50

Lss: transrr o CWIp (Ohr dirc Cos) 3 1 200

Lss: eliinaion o Cos on Inrcoan

managn Conslanc Inco

60 328 (82)

TOTAL 5,005 2,316 116

Finance Cost

inanc coss incras b 39% ring h ar on accon o an incras in inrs ras an loans.

Depreciation / Amortisation

th rciaion / aorisaion cos incras b 59% ovr h rvios ar. th ris was ainl on accon o rciaionon asss o Grin Coal min acqir ring h ar.

Exceptional Items

two o h sbsiiaris Lanco Viharba thral powr Lii (LVtpL) an Hiava powr priva Lii (HppL) bca associas. As a rsl, h Coan rcor a gain o ` 489 illion.

rhr, consqn o srcring o owr holing coanis, on o h associa Lanco Babanh powr Lii sol isqi shars o Rgls powr priva Lii. this was an associa o h thral Holing Coan (Lanco thralpowr Lii). d o his, Lanco Babanh powr Lii bca an associa o an associa an rcor ` 675 illiongain.

Provision For Taxation

th rovision or axaion cras 42% ring h ar. th crrn ax an rr ax clin 38% an 59%, rscivl.

this was ainl on accon o a cras in ro bor ax o Aarkanak an LItL an o highr rciaion.

` illion


Crrn tax 2,013 3,810 (47)

Lss: mini Alrna tax Cri eniln 49 628 (92)

Net Current Tax 1,964 3,182 38

Rlaing o prvios yars 8 6 33

drr tax 274 662 (59)

Total Tax Expense 2,246 3,850 42

Prior Period Item

thr was a sbsqn rviw o h rvios ars consolia anagn accons o LRIpL. uon his, soxnss hav bn charg o o San o pro & Loss an so hav bn caialis in x asss.

Share o Prot / Loss O Associates

th shar o loss o associas soo a ` 602 illion, as agains a ro o ` 26 illion in h rvios ar. dring h ar,on o h associa Lanco Anara powr Lii conc corcial oraions an is nr h sabilisaionhas. rhr, h shar o loss o associas has incras. this can b arib o low lan loa acor (pL) an orign

xchang loss ror in anohr associa ui powr Cororaion Lii.


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Share O Minority Interest

Shar o inori inrs rrsns h inrs o inori sharholrs in varios coanis. Shar o inori inrscras b 21% ring h ar. this was riaril o a cras in h roabili o Konaalli an tanjor.

Prot Ater Tax

pro ar tax (pAt) bor an ar liinaion o inr-sgn ro on ransacion wih sbsiiaris an associas

clin. I clin b 28% an 125%, rscivl, ovr h rvios ar.

Cash Prot

Cash ro rlas o h ros h Coan has arn ar cing non-cash xnirs. ths can b rciaion,

orx loss, rr ax, ro liinaion an mAt cri niln. Cash ro incras b 13% ring h ar. Cash

epS incras o ` 5.9 r shar, as agains ` 5.2 r shar in h rvios ar. this rsl in a growh o 13% in cash

epS ovr h rvios ar.

` illion


Ror pAt (1,120) 4,461 (125)

A: drciaion 5,628 3,537 59

A: drr tax 275 662 (58)

Lss: mAt Cri (49) (628) (92)

A: orx Loss / (Gain) 1,084 (843) (229)

A: pro eliina 7,963 4,988 60

Cash Prot 13,781 12,177 13

Cash epS (`

) 5.9 5.2 13

Analysis o Balance Sheet

Sources o Fund ` illion


Shareholders' Funds 47,061 46,231 2

Minority Interest 9,519 8,453 13

Noncurrent Liabilities

Long tr Borrowings 221,522 114,071 94

drr tax Liabiliis (N) 7,172 5,482 31Ohr Long tr Liabiliis 37,729 34,787 8

Long tr provisions 3,245 1,585 105

Subtotal 269,668 155,925 73

Current Liabilities

Shor tr Borrowings 58,841 32,721 80

tra paabls 37,547 15,766 138

Ohr Crrn Liabiliis 57,279 32,179 78

Shor tr provisions 4,222 692 510

Subtotal 157,889 81,358 94

TOTAL 484,137 291,967 66


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Shareholders Fund

th sharholrs n incras 2% a ` 47,061 illion ring y 2011-12. In h rvios ar, his was ` 46,231 illion.th ris was ainl on accon o an incras in orign crrnc ranslaion rsrvs.

Minority Interest

th inori inrs incras b 13% ring h ar. this was ainl on accon o is shar in crrn ars ros o

Konaalli & tanjor an bback o shars in tanjor.

Net Worth

th n worh o h Coan, as a march 31, 2012 an as a march 30, 2011, is as nr:

` illion

Particulars FY 201112 FY 201011

1 Shar Caial 2,390 2,387

2 Rsrvs & Srls 44,671 43,844

3 Sharholrs' n (1+2) 47,061 46,231

4 eliina pro on transacions wih Sbsiiaris an Associas 15,129 8,420

5 Sharholrs' n ls eliinaion (3+4) 62,190 54,651

6 minori Inrs 9,519 8,453

7 Nworh ls eliinaion (5+6) 71,709 63,104

Borrowings

Borrowings il Long tr, Shor tr an Crrn mariis o Long tr Borrowings. ths incras b 88% ringh ar owing o wo acors:

Aiion o ` 56,857 illion o ui an ` 35,992 illion o Anara, on bcoing sbsiiaris

N rawal o aiional / nw loans o ` 52,920 in ohr gro coanis

dring h ar, rojc consrcion work a varios sis incras:

` illion


Long tr Borrowings 2,21,522 1,14,071 94

Crrn mariis o Long tr Borrowings 31,936 19,738 62

Shor tr Borrowings 58,841 32,721 80TOTAL 3,12,299 1,66,530 88

CompanyWise BreakUp O The Loan Funds: ` illion

FY 201112 FY 201011

Aarkanak 64,327 36,309

ui 56,857 -

Lanco Rsorcs - Grin 43,408 39,219

LItL 38,273 37,971

Anara 35,992 -Konaalli 27,916 17,849

tsa 14,152 10,042

Hills 12,342 11,747


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Fixed Assets

th oal x asss o h Coan incras b 109%. this was riaril on accon o h convrsion o ui anAnara ro associas ino sbsiiaris. th caial work-in-rogrss, incl in x asss, also incras. this was

snchronis wih an incras in aciviis a varios rojcs crrnl in vlon has.

Investments

toal invsns (crrn an non-crrn) cras b 13% ring h ar. this was ainl o h convrsion o

ui an Anara ino sbsiiaris ro associas.

` illion


Non-Crrn Invsns 27,269 30,928 (12)

Crrn Invsn 374 1,022 (63)

TOTAL 27,643 31,950 13

Investments BreakUp ` illion

Particulars FY 201112 FY 201011

prrnc Shars 26,069 29,907

eqi Shars 1,192 1,019

mal ns 382 1,024

TOTAL 27,643 31,950

Current Assets Excluding Investments ` illion


Invnoris 27,889 21,430 30

tra Rcivabls 37,642 14,585 158

Cash an Bank Balancs 14,121 12,665 11

Shor tr Loans an Avancs 27,397 26,689 3

Ohr Crrn Asss 1,872 607 208

TOTAL 1,08,921 75,976 43

Crrn asss (xcling crrn invsns) incras b 43% ring h ar. Invnoris incras b 30% ainl on

accon o:

Convrsion o ui an Anara ino sbsiiaris ro associas

Incras in consrcion work in rogrss in LItL

dvlon work in rogrss in Hills

tra rcivabls incras b 158% ring h ar. th ris is arib o h convrsion o ui an Anara ino

sbsiiaris ro associas. this was also o la an ro varios sa lcrici boars.

As on march 30, 2012 h gro has rcivabls ro varios Sa elcrici Boars an ohr csors. th rcivabls

ar agains h sal o owr, aggrgaing o ` 23,693 mn. Bas on inrnal assssn an varios iscssions wih

csors, h anagn is ll conn o rcovring h sa ring h ar.

Cash an bank balancs incras b 11% ainl on accon o convrsion o ui an Anara ino sbsiiaris ro

associas. Cash balancs a so o h ajor gro coanis ar:


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` illion

Project/ Company name Cash and bank balance % o TOTAL

ui powr 3,034 21

Lanco Konaalli 2,155 15

Aarkanak 2,070 15

LIpL - Singaor 1,358 10

Anara 1,273 9

Lanco Inrach 1,215 9

Ohrs 3,016 21

TOTAL 14,121 100

Loans And Advances ` illion


Long tr 16,824 21,749 (23)

Shor tr 27,397 26,689 3

TOTAL 44,221 48,438 9

Loans an avancs cras b 9% ring h ar. this was ainl o h allon o shars agains avanc or

invsns. this was also o a cras in Cnva cri rcivabls.

Net Current Assets ` illion


Crrn Asss (xcling invsns) 108,921 75,976 43

Crrn Liabiliis (xcling borrowings) 67,111 28,899 132

N Crrn Asss 41,810 47,077 (11)

Analysis o Cash Flow Statement ` illion

Cash Flow FY 201112 FY 201011

N Cash low ro Oraing Aciviis 41,846 32,614

N Cash low ro inancing Aciviis 41,165 71,890

N Cash low (s in) Invsing Aciviis (rliinar x asss) (81,701) (102,450)

Net increase in Cash and Cash Equivalents 1,310 2,054


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Cash Flow From Operating Activities

N cash gnra ro oraing aciviis (borliinaion) was ` 41,846 illion ring y 2011-12. Cash

gnraion ro oraions soo a ` 27,027 illion. this

was rior o working caial ajsn o ` 17,934 illion

an irc ax ajsn o ` 3,114 illion.

Cash Flow From Financing Activities

N cash aiion ro nancing aciviis soo a ` 41,165

illion ring y 2011-12. Infows on n rocs ro

long-r an shor-r borrowings (` 69,988 illion an

` 10,095 illion, rscivl) l o his. this cash aiion

was ariall os b ran o long-r loans o` 18,223 illion an inrs ans o ` 20,117 illion.

Cash Flow Used In Investing Activities

N cash s in invsing aciviis was o h n o

` 81,701 illion ring y 2011-12. this was o

an aiion o x asss worh ` 74,549 illion an

invsn in non-crrn invsns val a ` 9,290

illion.

Key Financial Data O Major Operating Companies ` illion

Particulars LITL Amarkantak Kondapalli Tanjore Grin Hills NETS

Income

Inco 86,050 13,272 16,088 2,449 6,805 751 19,481

Ohr Inco 642 16 200 226 154 2 38

TOTAL 86,692 13,288 16,288 2,675 6,958 753 19,519

Expenditure

Consrcion/ dvlon/

Gnraion exnss

71,082 5,950 9,564 1,497 6,885 690 19,282

Ainisraiv an Ohr

exnss

8,482 771 520 144 545 71 132

EBITDA 7,128 6,567 6,204 1,034 471 8 105

EBITDA to Total Income % 8 49 38 39 7 1 1Inrs an inanc Chargs 5,051 2,619 1,501 214 581 1 75

drciaion 1,014 1,451 968 185 1,777 26 8

Prot beore Tax 1,063 2,497 3,735 635 2,829 35 22

provision or taxaion

- Crrn tax 212 500 747 127 - - 12

- Rlaing o rior ars - - - 2 - - (1)

- mini Alrna tax

Cri eniln

(212) 157 - 5 - - -

- drr tax (N) (94) 295 135 - - - (3)

- ring Bn tax - - - - - - -

Net Prot 1,157 1,545 2,853 501 2,829 35 14

Total Income

Inco ro LItL winss a 47% growh ring har. th ajor rvn infows ca ro epC conracso Aarkanak III & IV, Konaalli III, Babanh, Viarbha.Rvns also fow in ro xrnal csors, ainlmosrbar an mahagnco (Korai) powr projcs.

Inco ro Aarkanak incras b 5%. this j ro` 12,696 illion in y 2010-11 o ` 13,272 illion in y 2011-12. th ris was a rsl o an incras in lan loa acor o

boh h nis. toal gnraion soo a 4,013 illion nis, asagains 3,706 illion nis in h rvios ar.

Inco ro Konaalli incras b 5%. I wn ro` 15,291 illion in y 2010-11 o ` 16,088 illion in

y 2011-12. this was o an incras in lan loa acor,gnraing 4,234 illion nis, as agains 4,196 illion nis.

Inco ro tanjor cras b 6%, ro ` 2,600 illionin rvios ar o ` 2,449 illion in y 2011-12. th langnra 803 illion nis, as agains 865 illion nis inh rvios ar. th inco also incls a CeR sal o` Nil in y 2011-12, as agains ` 219 illion in y 2010-11.

Inco ro NetS cras 23%, own ro ` 25,198illion las ar o ` 19,481 illion in y 2011-12. I ra4,991 illion nis as agains 6,043 illion nis in h lasscal ar.

dring h rvios ar, LItL acqir Asralia-bascoal ining coan, Grin Coal min, hrogh is


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s-own sbsiiar. pos acqisiion, i consolia is accons onl or on onh. this was h rs ll ar o oraion

ar h acqisiion.

PAT Prot Ater Tax ` illion

Company Name FY 201112 FY 201011 YoY growth %

LItL 1,157 2,783 (58)

Aarkanak 1,545 3,751 (59)

Konaalli 2,853 3,221 (11)

tanjor 501 730 (31)

Grin (2,830) 283 (1,100)

NetS 14 145 (90)

Hills (35) (61) 43

th clin in pAt is ainl o an incras in inrscos, lo cos an orign xchang losss. dcrasin Grins pAt is owing o a nbr o inrrions o isoraions. th inrrions wr riaril o lack oh availabili o chanical qin. this was owing oh back log o ainnanc aciviis whn h in wasnr ainisraion.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Lanco Inrach blivs in h growh o ol hroghconinos larning. th Coans pol Agna isocss on wo ajor aras. this is ai a ransoringh Coan ino a larning organisaion an vloingh larshi caabili o h Gro.

Lanco LEO

Lancos LeO rawork is cnral o h ol rocsssan is nanal o h growh o all Lanconians. th LeOrawork coriss o hr insions:

Larshi: h pol dinsion

enrrnrshi: h Bsinss dinsion

Ownrshi: h Inivial dinsionth rawork has volv ro a rocss o hinking an is bing ilis in all ol rocsss.ths rocsss can b - Rcrin an Slcion,Inrnal prooions, proranc Araisal, Larning andvlon Inrvnions, Inicaion an dvlono High ponial elos, Sccssion planning anCarr planning.

In orr o accolish h goals, h Coan hasbark on a ajor iniiaiv or ssainabl larshivlon. this was a niq iniiaiv an a rs-o-is-kin in h Consrcion an epC sac.

Lanco Leadership Program LLP

Lanco Larshi progra (LLp) is h Coansiniiaiv o ini High ponial Growh Lars acrossh Gro. th rogra ais o ini los who

can b vlo ovr a rio o i. this will b achivhrogh a sris o rigoros an srcr rocss oinicaion.

th rocss involvs classroo as wll as on-h-jobraining o nsr vloing Growh Lars who canak largr rsonsibiliis wihin h Coan. thnir rocss, righ ro conc o xcion, has bnsor b erns & yong.

th rocss o slcion an inicaion incl anai s, gro iscssions, cas s analsis,bar o ss, conc assssn bas on LeO anrsonal inrviws. this was on b h slcion corcoi corising h to managn. elos inh car o exciv o Snior Vic prsins wr aligibl o aricia in h slcion rocss.

In h rs bach, aron 1,300 los aricia acrosscars, righ ro exciv o Snior Vic prsins. Aach sag o slcion, canias who lll h cririaov o h nx sag. th rocss nall concl wihh inicaion o 29 onial canias. th nx bacho h rogra is s o conc in Janar 2013.

Lanco Academy

th Lanco Aca was s o ll h ol agnahrogh h abov nion iniiaivs. Anohr rason os h aca was also o ak charg o h larningan vlon ns o h Gro.

th Lanco Aca has a sa-o-h-ar inrasrcran a i- wih h bs acl an insis or connvlon. univrsi o michigan, Ross School oBsinss, uSA, is on sch allianc h Aca hasngag isl wih. th Aca navors o ransorisl ino a worl class larning cnr which Lanconiansan ohr sakholrs will b xrl ro o.

Loca a Grgaon, h Lanco Aca is sra ovra srawling 30,000 sqar . S in Jl 2011, hAca looks owars vlon o an InrnalLarshi pilin, Biling Bsinss Caabiliis annrring a ni clr.


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In aiion o his, hr is an inrnalisaion o h

Coans ission, vision an vals so as o Lancos global asiraions. th acili will hos h bs-in-class larning inrasrcr. I will b sor bAcaicians, thogh Lars, Bsinss Lars ana nwork o sragic alliancs wih laing insisacross h glob. th Aca has a oal o 6 snicahalls an 6 six brak-awa roos, sign o nhanc hcivnss o h nir larning rocss.

th Acas librar rovis a corhnsiv rosioro rrnc books, chnical an rossional rioicals.ths ar boh gnral as wll as scic o h ncionalaras. th librar also hoss svral onlin jornals anblicaions.

th Aca concs varios rogras on Larshi

an Clr, Bsinss Caabili progras as wll asmanagrial & Bhavioral progras.

W ar xrl ro o hav inrnal aln which bna ri conribor o or sccss. th Aca ais oqi sch naic rossionals o ak a ransiionro ncional Scialiss o bing Bsinss Lars.

th oal lo srngh o h Gro, as on march31, 2012, sans a 7,914. this is across all cars angograhic locaions, incling h inrnaional los.

th los ar h k o h Sccss & Growh oLanco Inrach. th organisaion acs varios challngsa an rons. In sch siaions, i is h qali o aln

which hls s wihsan hs rssr.

RISKS AND MITIGATION

Lanco Inrach ollows a sringn risk anagn ol o nsr h Coans bsinss oraions ar no ac.

th ollowing ar h robabl risks an h iigaion lan or ach risk:

S. No. Risk Description Mitigation Plan

1. Losss o inaccra sias whil nring,

on accon o lack o knowlg o si coniions

1.

2.

3.

Concing ilignc

Hiring o xrs an nginrs

manaor wll-ocn & Srcr Si Srv

2. Si coiion ro nw an sall siz lars 1. to lvrag Bran Lanco

2. to xc rojcs wihin ilins o nsrcsor rrrals

3. Lan acqisiion, rsln an rhabiliaion Holing rglar ings wih locals an aking

Govrnns hl, i n. Aoing connc

biling asrs hrogh CSR.

4. dlas in obaining Righ o Wa (Roas) ollow- wih NHAI an Local Ahoriis or gran o

Righ o Wa.

5. dla in inancial Closr 1. ollow- wih nancial insiions

2. exloring alrna sorc o ns (brig loans,

brs cri, c) or inri ning

3. ning hrogh inrnal accrals

6. Ovrshooing ilins an coss 1. Orrs o rack rovn vnors

2. Sringn rviw chaniss3. Aoining scialis agncis / conslans or

sias

4. Organising raining on nancial olling or

accra sias

5. Singl winow or oshor rocrn

7. Lack o accra raiaion an ark aa 1. Srnghning h aabas o collc accra

raiaion aa

2. Srnghning ark inllignc

8. uncrain o slling / lasing o ror 1. Organising si visis or csors o ssain

connc an aih

2. Wir choics/oions o b rovi o csors

3. using channl arnrs or arking


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S. No. Risk Description Mitigation Plan

9. No ing wih oraing arars 1. Schl ainnanc

2. training o rsonnl o hanl qin

10. Non-availabili/ allocaion o l (coal/gas) 1. prsing wih mopNG / GAIL/CIL/Gov. o Inia orallocaion/ sl o conrac qani

2. procrn o coal in -acion

3. procrn o coal ro on ark

4. Ior o coal

11. transission / evacaion 1. ollow- wih moe or ncssar clarancs.

2. ollow- wih pGICL or sing ooling saionswihin h sila i.

3. exloiaion o xising aciliis an ransissionlins or owr vacaion ill ica i-lins arin lac.

12. Lowr tari/uni Caaciis 1. Working on ror ix o ppA, shor r ppA anrchans

13. Highr inancial Cos 1. Availing char sorc o ns, incling brsan slirs cri

2. monioring cash fows an argins

14. Loss on accon o orign xchang fcaion 1. Rviw o orx xosr on a rglar basis

2. Hging as r 'Lanco Gro orx Risk managnolic

15. Lowr ralisaion (risk o having highr book bs) 1. Rglar ollow- wih SeBs

2. Charging inrs or h la rio

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Lanco onaion is h CSR ar o h Lanco Gro. thonaion is crrnl oraing in 13 locaions across12 sas in Inia. Is rogras rang across variosscions o h soci. So o hs ar: ecaion,Halh, drinking War, disabili, Coni dvlonan environn.

Aron 250,000 ol ar clar bnciaris o hsrvics o h onaion. ths ol rsi in ovr 220villags aron Lancos rojc aras an in ohr narb

sis. th onaion rns wih h hl o ovr 130 ll-i sa brs an ovr 100 lo volnrs.ths oghr conrib o h sccss o all iniiaivsnrakn b h onaion.

th nar-8,000-srong workorc o Lanco Inrach acrossall is locaions is ll ngag an coi owarsvolnring o h CSR aciviis. Varios sssions arorganis a h corora oc an lan sis. ths arai a nhancing h lo awarnss on halh ansocial isss.

Some fagship programmes o this Foundation are:

1. Education

Schools in an aron h Lanco lan si arcovr b wa o basic an roin halh chckor all chilrn o riar caion lvl

yarl ri scholarshis o shorlis an

slc sns hrogh a sringn slcionrocss. this incls scholarshis grano sns a h school lvl o rossionalcorss, sch as ical an nginring.

A

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Lanco is a Leading EPC Player in India