I.  Nature of Operations
 
 Lanco Infratech Limited is an integrated infrastructure developing
 company. The company provides engineering, procurement, construction,
 commissioning and project management services on a turnkey basis to the
 power Sector for thermal (coal fired and gas fired) and hydro power
 plants as well and also construction of highways, power plants, water
 supply and irrigation projects including dam, tunnels etc.
 
 1.  (A) Secured Loans
 
 (Note No.  1 (A) of Schedule 20 (III) of Financial Statements)
 
 a) Rupee term loan from financial institution
 
 1.  of Rs. 10,714.29 Lakhs (Previous Year: Rs. 12,857.14 Lakhs) is secured
 by way of hypothecation of certain plant and machinery amounting to Rs.
 5,003.60 Lakhs on first charge basis and collateral security of land
 belonging to and some of its subsidiaries.
 
 2.  of Rs. 30,000 Lakhs (Previous Year: Rs. 30,000 Lakhs) is secured by way
 of pledge of shares of a subsidiary held by the Company and also by
 pledge of shares of the Company held by one of the promoters and
 another loan of Rs. Nil Lakhs (2010: Rs. 20,000 Lakhs) from a financial
 institution is secured by way of pledge of mutual fund units of
 equivalent amount.
 
 b) Rupee term loan from banks
 
 1.  of Rs. 1,816.08 Lakhs (Previous Year : Rs. 2,137.36 Lakhs) is secured
 by way of mortgage on the immovable assets pertaining to the wind
 turbine generator project and hypothecation of movable assets both
 present and future of the company on first charge basis.
 
 2.  of Rs. 3,066.47 Lakhs(Previous Year : Rs. Nil Lakhs) is secured by way
 of mortgage on immovable assets pertaining to solar projects and
 hypothecation of movable assets both present and future of the company
 on first charge basis.
 
 3.  of Rs. 50,516.82 Lakhs (Previous Year : Rs. 45,101.10 Lakhs) are
 secured by way of pledge of shares of a subsidiary held by the Company
 and also by pledge of shares of the Company held by the promoters.
 
 4.  of Rs. 10,000 Lakhs (Previous Year : Rs. 19,998.30 Lakhs) are secured
 by a first charge on entire current assets of the Company both present
 and future, on pari passu basis, with other working capital lenders,
 under multiple banking arrangements.
 
 c) Foreign currency loans (Buyers Credit) from banks of Rs. 47,266.54
 Lakhs (Previous Year : Rs. 806.36 Lakhs) are secured as part of working
 capital limits from banks by way of first charge of hypothecation of
 stock/work in progress and entire current assets of the company both
 present and future, on pari passu basis, with a term loan lender of Rs.
 10,000 Lakhs and other working capital lenders, under multiple banking
 arrangements
 
 d) Hypothecation Loans of Rs. 6,495.03 Lakhs (Previous Year : Rs. 7,116.43
 Lakhs) are secured by hypothecation of specific construction equipment/
 vehicles acquired out of such loans.
 
 e) Cash Credit and working capital loans from banks
 
 1.  of Rs. 1,54,885.79 Lakhs (Previous Year: Rs. 47,725.76 Lakhs) from
 Banks are secured by a first charge by way of hypothecation of stock /
 work-in-progress and entire current assets of the company both present
 and future, on pari passu basis with a term loan lender of Rs.10,000
 Lakhs and other working capital lenders under multiple banking
 arrangement.
 
 2.  of Rs. Nil Lakhs (Previous Year : Rs. 3,191.00 Lakhs) are secured by a
 second charge on entire current assets of the Company both present and
 future, on pari passu basis, with other working capital lenders, under
 multiple banking arrangements.
 
 (B) Unsecured Loans
 
 (Note No.  1 (B) of Schedule 20 (III) of Financial Statements)
 
 All the unsecured loans from banks are guaranteed by way of pledge of
 shares of the company held by the promoters.
 
 2.  Contingent Liabilities – Not provided for
 
 (Note No. 2 of Schedule 20 (III) of Financial Statements)
 
 a) Sales Tax/Entry Tax Demands disputed by the Company, under appeal Rs.
 434.03 Lakhs (Previous Year : Rs. 29.40 Lakhs).
 
 b) Income Tax Demands disputed by the Company relating to disallowances
 made in various assessment proceedings, under appeal Rs. 61.26 Lakhs
 (Previous Year : Rs. 422.20 Lakhs).
 
 c) Service Tax demands disputed by the Company relating to
 applicability of service tax to various services, under appeal works
 out to Rs. 5,116.09 Lakhs (Previous Year : Rs. 3,560.50 Lakhs )
 
 d) Corporate guarantees given to Financial Institutions, Banks on
 behalf of other group companies Rs. 10,29,530.86 Lakhs (Previous Year : Rs.
 3,87,578.20 Lakhs).
 
 4.  Capital Commitments
 
 (Note No. 4 of Schedule 20 (III) of Financial Statements)
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) is Rs. 6,349.31 Lakhs
 (Previous Year : Rs. 1,187.00 Lakhs)
 
 6.  (Note No. 6 of Schedule 20 (III) of Financial Statements)
 
 Amounts paid to subsidiaries, associates and other companies, towards
 share application money, to the extent not refunded/allotted, have been
 considered as advances, pending allotment and will be adjusted on
 allotment .
 
 7.  (Note No. 7 of Schedule 20 (III) of Financial Statements)
 
 The Company has entered into transactions with related parties
 including some of its associates namely UPCL,
 
 LAnPL, LBPL, LHHPL and LDHPL, whose details are shown in the summary of
 the transactions with the related parties, under note no. 18 of
 schedule 20(III) of financial statements.The Company along with Lanco
 Group Limited (one of its promoters) holds the remainder of shares in
 associates through various intermediate companies.  In case of UPCL,
 LAnPL and LBPL, the company holds cumulative compulsory convertible
 preference shares which when exercised for conversion as per the terms
 of these shares would result in these companies becoming subsidiaries
 of the company.
 
 10.  Employee Benefits
 
 (Note No. 12 of Schedule 20 (III) of Financial Statements)
 
 (i) Defined Benefit Plans
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 
 (ii) Defined Contribution Plans:
 
 In respect of the defined contribution plan (Provident Fund), an amount
 of Rs. 1,042.26 Lakhs (Previous Year : Rs. 691.90 lakhs) has been
 recognized as expenditure in the Profit and Loss Account.
 
 In respect of State Plans (Employee State Insurance) an amount of Rs.
 3.35 Lakhs (Previous Year : Rs. 3.20 Lakhs) has been recognized as
 expenditure in the Profit and Loss Account.
 
 In case of assets given on lease
 
 The company has leased out building, furniture & fixtures on operating
 lease. The lease term is for 11 months and thereafter renewable. There
 are no restrictions imposed by lease arrangements.
 
 Segment information under Accounting Standard-17 “Segment Reporting”
 has not been presented in the stand alone financials as the same has
 been presented in the Consolidated Financial Statements of the Company.
 
 16.  Employee Stock Option Scheme:
 
 (Note No. 20 of Schedule 20 (III) of Financial Statements)
 
 The Company has thus far allotted 1,11,18,096 (previous year
 1,11,18,096 ) 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 of six years from the date of first annual
 vesting.
 
 Each option granted under the above plans entitles the holder to one
 equity share of the company at an exercise price, which is approved by
 the compensation committee.
 
 The Plan is in accordance with the Securities and Exchange Board of
 India (Employee Stock Option Scheme and Stock Purchase Scheme)
 Guidelines, 1999.
 
 Consequent to the splitting of Equity Share of Rs. 10 each into 10 equity
 shares of Rs. 1 each in the previous year, the number of shares allotted
 to the trust and the options granted, forfeited, exercised are
 disclosed at Rs. 1 each.