1. During the quarter ended March 31,2008, the Company had made an exceptional gain of Rs.8723 lakh from the sale of its Investment in a Subsidiary Company which translated into an exceptional gain of Rs 7352 lakh net of Tax in the stand-alone financial. Excluding this exceptional gain, profit after tax for the quarter and year ended March 31, 2008 stood at Rs 89324 lakh and Rs 209990 lakh respectively in the stand-atone financial.

2. Extraordinary items for the quarter ended March 31, 2009 comprise the following:

(a) Gain of Rs 4241 lakh (net of tax of Rs 1939 lakh) on sale of the balance assets of the Company´s Ready Mix Concrete business, In terms of the relevant covenant for sale. This business was disposed of by the Company during the quarter ended December 31, 2008 when the initial profit on sale, amounting to Rs 91633 lakh (net of tax of Rs. 26268 lakh) was duly accounted.

(b) Provision of Rs 18628 lakh in respect of investment in Satyam Computer Services Ltd (SCSL.) held by the Company as well as by Its wholly owned subsidiary, L&T Capital Company Ltd (LTCCL).This provision has been made by the Company as a measure of abundant caution and In consonance with its commitment to acquire the investment from LTCCL at book value, as and when such transfer is permitted / takes place. Considering the extraordinary circumstances under which the price of SCSL shares fell in the market, the aforesaid provision has been created based on the principle of prudence.

3. The Company has consistently adopted Accounting Standard (AS) 11 for recognizing the effects of changes in foreign exchange rates. Further, in 2007-08, the Company has implemented the principles of hedge accounting as per AS 30 in respect of those derivative transactions which are not covered by AS 11, pursuant to ICAI´s announcement dated March 29, 2003.The Company has continued to follow the aforesaid accounting policies in FY 2008-09, The option provided under the Central Government Notification dated March 31, 2009, to defer recognition of certain categories of exchange differences to the Profit and Loss Account In future years, has not been exercised.

4. On October 8, 2008, the Company allotted bonus equity shares of Rs 2 each, fully paid up, in the ratio of 1:1, to all registered shareholders as on the record date. The earnings per share data for all the periods disclosed above have been adjusted for the issue of bonus shares as per the AS 20 on Earnings Per Share.

5. The Company, during the quarter ended March 31, 2009, allotted 349982 equity shares of Rs 2 each, fully paid up, on exercise of stock options by employees, in accordance with the Company´s stock option schemes.

6. The Board of Directors has recommended a dividend of Rs 10.50 per equity share of the face value of Rs 2 per share.

7. Figures for the previous periods have been re-grouped / re-classified to conform to the figures of the current periods.

8. The promoter and promoter group shareholding is nil and accordingly the information on shares pledged / encumbered is not applicable.

9. The above results have been reviewed by the Audit Committee, and approved by the Board of Directors at its meeting on May 26, 2009.

A M Naik
Chairman & Managing Director