Lanco Infratech

1.  Initial Public Offer
 
 The Company had made an Initial Public Offer (IPO) of its equity shares
 during the financial year ended March 31, 2007. The issue was
 oversubscribed by 10.66 times. The details of funds
 
 2.  Secured/Unsecured Loans
 
 a) Rupee Terms Loans from Banks Rs.291.95 Millions (2007: Rs.373.09
 Millions) are secured by a first charge by way of mortgage on the
 immovable assets, hypothecation of movable assets of the Company
 subject to prior charge stated in the note (c) below, present and
 future, pertaining to the wind turbine generator project and personal
 guarantees of certain Directors.
 
 Rupee term loans amounting to Rs.79.98 Millions (2007: Rs.609.11
 Millions) are secured by a second charge on other fixed assets and
 current assets of the Company and also guaranteed by certain Directors
 of the Company in their personal capacities.
 
 b) Cash Credit and Working Capital Loans from Banks Rs.1,085.25
 Millions (2007: Rs.221.29 Millions) are secured by hypothecation of
 stock/work in progress and other current assets of the Company both
 present and future on paripassu basis and Rs.1.27 Million from a bank
 is also secured by guarantees of certain Directors of the Company in
 their personal capacity.
 
 c) Hypothecation Loans are secured by hypothecation of specific
 construction equipment/vehicles acquired out of such loans.
 
 d) Unsecured loans from banks are guaranteed by some of the directors
 of the Company in their personal capacity.
 
 3.  Contingent Liabilities
 
 a) Sales Tax/Entry Tax Demands disputed by the Company, under appeal
 Rs.2.14 Millions (2007: Rs 2.46 Millions).
 
 b) Income Tax Demands disputed by the Company relating to disallowances
 made in various assessment proceedings, under appeal Rs. 25.97 Millions
 (2007: Rs 25.97 Millions).
 
 c) Corporate guarantees given to Financial Institutions, Banks and
 other group companies Rs. 40,093.29 Millions (2007: Rs. 47,563.00
 Millions).
 
 4.  The Company has been awarded arbitration by a Tribunal for a sum of
 Rs.18.71 Millions to be paid by ONGC for a contract work executed by
 the Company. Subsequently ONGC has appealed against the award in a
 District Court. The management is of the opinion that the said amount
 included in Sundry Debtors is recoverable; no provision is required at
 this stage.
 
 5.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) is Rs. 435.35 Millions
 (2007: Rs.34.66 Millions).
 
 6.  The long-term unquoted investments in equity shares of subsidiary
 companies and associates as given hereunder and included in Schedule 6
 are pledged with banks and financial institutions who have extended
 loan facilities to the respective investee companies.
 
 7.  Amounts paid to subsidiary companies and others, towards share
 application money, to the extent not refunded, have been considered as
 advances, pending allotment and will be adjusted on allotment. Share
 application money paid and pending allotment out of issue proceeds as
 given in note 2 has been shown under investment schedule.
 
 8.  Prince Stone Investments Limited holds 108,816,673 (2007:
 111,748,230) fully paid up equity shares of the Company.  During the
 year, due to change in the shareholding pattern of the Company, Prince
 Stone Investments ceased to be the holding Company.
 
 9.  Duty Drawback claims recognized during the year Rs. 992.40
 Millions (2007: Rs. Nil).
 
 10. The Company has not received intimation from many suppliers
 regarding their status under Micro Small and Medium Enterprises
 Development Act, 2006. Further, there are no Micro and Small
 Enterprises, to whom the Company owes dues, which are outstanding for
 more than 45 days as at March 31, 2008. This information as required to
 be disclosed under the said Act, has been determined to the extent such
 parties have been identified on the basis of information available with
 the Company.
 
 11.  Employee Stock Option Scheme
 
 The Company has thus far allotted 11,118,096 equity shares of Rs. 10
 each to LCL Foundation (ESOP - Trust) towards the Employee Stock option
 plan 2006 (The Plan) which was formulated by the Company. The plan
 provides for grant of stock options of equity shares of the Company to
 employees of the Company and its subsidiaries subject to continued
 employment with the Company or Group. Each option comprises of one
 equity share which will vest on annual basis at 20% each over five
 years and shall be capable of being exercised within a period six years
 from the date of first annual vesting.
 
 The Plan is in accordance with the Securities and Exchange Board of
 India (Employee Stock Option Scheme and Stock Purchase Scheme)
 Guidelines, 1999.
 
 12.  Information pursuant to paragraphs 3, 4, 4A, 4B, 4C and 4D of Part
 II of Schedule VI to the Companies Act, 1956 to the extent either Nil
 or Not Applicable has not been furnished.
 
 13.  Previous year figures have been re-grouped and reclassified,
 wherever necessary, to conform to those of the current year.