Your Directors have pleasure in presenting their Report and the Accounts for the year ended March 31, Particulars V Lacs

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1 DIRECTORS REPORT Your s have pleasure in presenting their Report and the Accounts for the year ended March 31, I. FINANCIAL RESULTS The key financial parameters for the period ended March 31, 2013 are submitted below: SI. No Particulars Lacs Lacs 1 Income for the year 11, , Less: Expenditure (11,051.77) (5,726.52) 3 Profit Before Depreciation & Tax (PBDT) Less: Depreciation 5 Profit / (Loss) before tax (PBT) Less: Provision for tax Profit / (Loss) after tax (PAT) Balance brought forward from previous year Balance carried to Balance Sheet II. III. I. PERFORMANCE OF THE COMPANY Your Company, in line with its objectives, had acquired Seven Quarry leases, during the year. Quarrying operations were carried out in compliance with statutory requirements by engaging resourceful sub-contractors and supplies were made in line with clients requirements / satisfaction while meeting our business purpose. APPROPRIATION The s wish to inform that there were no appropriations to any kind of specific Reserves of the Company during the year. DIIDENDS The s of your Company express their inability to consider any dividend to be paid to the Shareholders of the Company for the year CAPITAL EXPENDITURE The Company does not carry any Fixed assets in the Books. I. AUDITORS REPORT The Auditors Report to the Shareholders does not contain any qualifications. II. DEPOSITS The Company has not accepted any deposits from the public. III. MATERIAL CHANGES, IF ANY BETWEEN DATE OF THE BALANCE SHEET AND DATE OF THE DIRECTORS REPORT There are no material changes that have taken place in the Company between the Date of the Balance Sheet and the Date of the s Report. IX. PARTICULARS OF EMPLOYEES There are no employees covered by the provisions of the Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, X. SUBSIDIARY COMPANIES Your Company does not have any subsidiary company. XI. DIRECTORS RESPONSIBILITY STATEMENT The Board of s of the Company confirms: 1. That in the preparation of the annual accounts, the applicable accounting standards have been followed and there has been no material departure; 2. That the selected accounting policies were applied consistently and the directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2013 and of the profit/loss of the Company for the year ended on that date; 3. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; S-261

2 4. That the annual accounts have been prepared on a going concern basis; and 5. That proper systems are in place to ensure compliance of all laws applicable to the Company XII. DIRECTORS Mr. B. Ramakrishnan, retiring by rotation at the forthcoming Annual General Meeting being eligible, offers himself for reappointment. Mr. Subbaiya Kanappan, retiring by rotation at the forthcoming Annual General Meeting being eligible, offers himself for reappointment. Mr. N. Bhaskar Raju retiring by rotation at the forthcoming Annual General Meeting being eligible, offers himself for reappointment. The Board of s as on is as follows: - Mr. B. Ramakrishnan - Mr. N. Bhaskar Raju - Mr. Subbaiya Kanappan XIII. COMPLIANCE WITH OLUNTARY CORPORATE GOERNANCE GUIDELINES, The Company has familiarized itself with the requirement of the Corporate Governance oluntary Guidelines 2009 issued by the Ministry of Corporate Affairs and it is in the process of implementing many of the suggestions. Our compliance with the said guidelines is given below A) separation of offices of Chairman & Chief Executive The Chairman is elected during each Board Meeting by the s from amongst those present. All the s are Non-Executive and the role of Chairman is confined to the proper conduct of the Board Meeting. B) Remuneration of s The s are not paid any remuneration by way of sitting fees, etc. C) Independent s None of the s is involved in the day to day affairs of the Company. Number of Companies in which an Individual may become a The Company has apprised its board members about the restriction on number of other directorships and the same is being complied with. D) Responsibilities of the Board Presentations to the Board in areas such as financial results, budgets, business prospects etc. give the s, an opportunity to interact with senior managers and other functional heads. s are also updated about their role, responsibilities and liabilities. The Company ensures necessary training to the s relating to its business through formal/ informal interactions. Systems, procedures and resources are available to ensure that every is supplied, in a timely manner, with precise and concise information in a form and of a quality appropriate to effectively enable/ discharge his duties. The s are given time to study the data and contribute effectively to Board discussions. The Non-Executive s through their interactions and deliberations give suggestions for improving overall effectiveness of the Board and its Committees. Their inputs are also utilized to determine the critical skills required for prospective candidates for election to the Board. The system of risk assessment and compliance with statutory requirements are in place. E) Statutory Auditors The Company has obtained a certificate from the auditors certifying its independence and arm s length relationship with the Company. The Company does not advocate rotation of Auditors as envisaged in these guidelines in view of the domain knowledge acquired by the Auditors over a period of time. However, the signing partners are rotated at regular frequency. F) Internal Auditors The Corporate Audit Services department of Larsen & Toubro Limited provides internal audit services to the Company. G) Internal Control The Board ensures the effectiveness of the Company s system of internal controls including financial, operational and compliance controls and risk management systems. H) Secretarial Audit The Secretarial Audit, at regular intervals, is conducted by the Corporate Secretarial department of Larsen & Toubro Limited, which has competent professionals to carry out the said audit. XI. AUDIT COMMITTEE The Company need not have an Audit Committee as the paid up capital of the Company is only 5 Lacs. X. AUDITORS The Auditors, M/s Sharp & Tannan, Chartered Accountants, statutory auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and are recommended for reappointment. S-262

3 Certificate from Auditors have been received to the effect that their appointment, if made, would be within the limits prescribed under Section 224(1B) of the Companies Act, XI. DISCLOSURE OF PARTICULARS RELATING TO CONSERATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO AS PER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988 Conservation of Energy Since the Company is engaged in quarrying and mining Operation, Conservation of energy, research and development, technology observation does not apply. Technology Absorption There was no Technology Absorption during the year. Foreign Exchange Earnings And Outgo There were no earnings or outgo in terms of Foreign Exchange during the year XII. ACKNOWLEDGEMENTS The s acknowledge the valuable support extended to the Company by the staff and management of the parent Company. For and on behalf of the Board S. KANAPPAN B. RAMAKRISHNAN S-263

4 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF HI-TECH ROCK PRODUCTS AND AGGREGATES LIMITED Report on the financial statements We have audited the accompanying financial statements of HI-TECH ROCK PRODUCTS AND AGGREGATES LIMITED ( the Company ) which comprise the Balance Sheet as at March 31, 2013 and also the Statement of Profit and Loss for the year ended on that date annexed thereto, and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ( the Act ). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013; and b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date. c) in the case of Cash flow statement, of the cash flows for the year ended on that date. Report on other legal and regulatory requirements 1. As required by the Companies (Auditor s Report) Order, 2003 ( the Order ), as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 as amended, of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by Section 227(3) of the Act, we report that: a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; c) the Balance Sheet, Statement of Profit and Loss dealt with by this report are in agreement with the books of account; d) in our opinion, the Balance Sheet, Statement of Profit and Loss, dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; e) on the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of s, none of the director is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, For SHARP & TANNAN Chartered Accountants (Firm s Registration No S). ISWANATHAN Partner Membership No S-264

5 ANNEXURE TO THE INDEPENDENT AUDITOR S REPORT With reference to the Annexure referred to in paragraph 1 under the heading Report on other legal and regulatory requirements of the independent auditor s report of Hi-tech Rock Products and Aggregates Limited on the financial statements for the year ended March 31, 2013, we report that: (i) (a) The Company does not carry any fixed assets in its books,accordingly reporting under clause 4(i)(a), (b) and (c) of the Order does not arise. (ii) The Company does not carry any inventory in its books, Accordingly, reporting under clause 4(ii)(a), (b) and (c) of the Order does not arise. (iii) (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly reporting under clause 4(iii) (b), (c) and (d) of the Order does not arise. (b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly reporting under clause 4(iii)(f) and (g) of the Order does not arise. (iv) In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for sale of goods. Further, on the basis of our examination of books and records of the Company and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in the aforesaid internal control system. (v) (a) In our opinion and according to the information and explanations given to us, there are no transactions that need to be entered into the register in pursuance of Section 301 of the Companies Act, 1956 and hence reporting under clause (v)(b) of the Order does not arise. (vi) The Company has not accepted any deposit from the public within the meaning of Sections 58A, 58AA or any other relevant provisions of the Act, and the rules framed thereunder. Hence reporting under clause 4(vi) of the Order does not arise. (vii) In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. However, no internal audit has been carried out during the year. (viii) We have broadly reviewed the books of accounts and records maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, We are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, the contents of these accounts and records have not been examined by us. (ix) (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company is regular in depositing undisputed statutory dues including income-tax, sales tax and other statutory dues as applicable with appropriate authorities. According to the information and explanation given to us, there were no arrears of outstanding statutory dues as at March 31, 2013 for a period more than six months from the date they become payable. (b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of income tax as at March 31, 2013 which have not been deposited on account of dispute pending are as under: Name of the statute Nature of disputed dues Period to which amount relates The Income Tax Act,1961 Disallowance under section 40(a)(ia) of the Act Forum where the disputeis pending 9,476, Commissioner of Income Tax (Appeals) (x) The Company does nothave accumulated losses at the end of the financial year. The Company has not incurred cash losses in the current financial year and in the immediately preceding financial year. (xi) In our opinion and according to the explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions or bank. The Company has not issued any debentures during the year. (xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund/ society and hence reporting under clause 4(xiii) of the Order does not arise. (xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer in or trader in shares, securities, debentures and other investments. Hence reporting under clause 4(xiv) of the Order does not arise. (xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions. (xvi) The Company has not availed any term loans during the year. Accordingly reporting under clause 4(xvi) of the Order does not arise. (xvii) According to the information and explanations given to us,the Company has not raised any funds on short-term basis and hence reporting under clause 4(xvii) of the Order does not arise. (xviii) The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under Section 301 of the Act and hence reporting under clause 4(xviii) of the Order does not arise. S-265

6 (xix) The Company has not issued any debentures during the year and hence reporting under clause 4(xix) of the Order does not arise. (xx) The Company has not raised any money by way of public issues during the year and hence reporting under clause 4(xx) of the Order does not arise. (xxi) During the course of our examination of the books and the records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instances of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such cases by management. For SHARP & TANNAN Chartered Accountants (Firm s Registration No S). ISWANATHAN Partner Membership No S-266

7 BALANCE SHEET AS AT MARCH 31, 2013 Note As at As at EQUITY AND LIABILITIES Shareholders Funds (a) Share capital 2 500, ,000 (b) Reserves and surplus 3 13,160,337 6,335,852 13,660,337 6,835,852 Current liabilities (a) Trade payables 4 144,623,093 55,355,180 (b) Other current liabilities 5 7,843,779 12,986,652 (c) Short-term provisions 6 3,051,760 1,104, ,518,632 69,446,271 TOTAL 169,178,969 76,282,123 ASSETS Current assets (a) Trade receivables 7 158,852,891 73,059,273 (b) Cash and cash equivalents 8 34,059 14,464 (c) Short term loans and advances 9 10,292,019 3,208, ,178,969 76,282,123 TOTAL 169,178,969 76,282,123 CONTINGENT LIABILITIES AND COMMITMENTS 10 SIGNIFICANT ACCOUNTING POLICIES 1 The accompanying notes form an integral part of the financial statements. As per our report of even date for SHARP & TANNAN Chartered Accountants (Firm s Registration No S). ISWANATHAN Partner Membership No For and on behalf of the Board S. KANAPPAN B. RAMAKRISHNAN S-267

8 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2013 Note REENUE Revenue from operations 11 1,115,053, ,226,523 TOTAL REENUE 1,115,053, ,226,523 EXPENSES Operating expenses 12 1,069,871, ,164,691 Administration and other expenses 13 35,305,434 24,487,596 TOTAL EXPENSES 1,105,177, ,652,287 Profit before tax 9,876,245 3,574,236 Tax expense Current tax 3,051,760 1,104,439 Profit after tax for the year 6,824,485 2,469,797 Earnings per share (Basic and Diluted) Face value of an equity Share SIGNIFICANT ACCOUNTING POLICIES 1 The accompanying notes form an integral part of the financial statements. As per our report of even date for SHARP & TANNAN Chartered Accountants (Firm s Registration No S). ISWANATHAN Partner Membership No For and on behalf of the Board S. KANAPPAN B. RAMAKRISHNAN S-268

9 CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, A) Cash flow from operating activities Net profit before tax 9,876,245 3,574,236 Adjustments for working capital changes (Increase)/ decrease in trade receivables (85,793,618) (56,604,162) (Increase)/ decrease in loans and advances (8,856,983) 15,413,657 Increase/ (decrease) in trade and other payables 83,020,601 37,854,153 Cash generated from / (used in) operations (1,753,755) 237,884 Direct taxes paid during the year 1,773,350 (1,703,962) Net cash from / (used in) operating activities (A) 19,595 (1,466,078) B) Cash flow from investing activities Net cash from / (used in) investing activities (B) C) Cash flow from financing activities Net cash from / (used in) financing activities (C) Net increase/(decrease) in cash and cash equivalents (A+B+C) 19,595 (1,466,078) Cash and cash equivalents as at the beginning of the year 14,464 1,480,542 Cash and cash equivalents as at the end of the year 34,059 14,464 Notes : 1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) 3: Cash Flow Statements as specified in Companies (Accounting Standards) Rules, 2006 (as amended). 2. Refer Note 8 for components of Cash and cash equivalents. 3. Previous year s figures have been regrouped/reclassified wherever applicable. As per our report of even date for SHARP & TANNAN Chartered Accountants (Firm s Registration No S). ISWANATHAN Partner Membership No For and on behalf of the Board S. KANAPPAN B. RAMAKRISHNAN S-269

10 NOTES ACCOMPANYING THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2013 NOTE 1: SIGNIFICANT ACCOUNTING POLICIES a) Basis of accounting The Company maintains its accounts on accrual basis following the historical cost convention, in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with the provisions of the Companies Act, 1956 and Accounting Standards specified in the Companies (Accounting Standards) Rules, 2006 (as amended). However, certain escalation and other claims are accounted for in terms of contracts with the customers / admitted by the appropriate authorities. b) Use of estimates The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful life of tangible and intangible fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans, etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known. c) Revenue recognition Revenue is recognized based on nature of activity when consideration can be reliably measured and there exists reasonable certainty of its recovery. (i) Revenue from sale of products is recognised when all the significant risks and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods and acceptance, when the amount of revenue and the costs incurred in respect of the transaction can be measured reliably and it is probable that the economic benefit associated with the transaction will flow to the enterprise. (ii) All other item of income are recognised as and when the right to receive arises. d) Accounting for taxes on income Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act Deferred tax is recognized on timing difference between the accounting income and the estimated taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. e) Leases Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the Statement of profit and loss on accrual basis. f) Provisions, contingent liabilities and contingent assets (i) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if 1) the Company has a present obligation as a result of a past event; 2) a probable outflow of resources is expected to settle the obligation ; and 3) The amount of the obligation can be reliably estimated. (ii) Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received. (iii) Contingent liability is disclosed in case of 1) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; 2) a present obligation arising from past events, when no reliable estimate is possible; 3) a possible obligation arising from past events, unless the probability of outflow of resources is remote. (iv) Contingent assets are neither recognized nor disclosed. (v) Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. S-270

11 NOTES ACCOMPANYING THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2013 (CONTD.) As at As at Numbers Numbers 2 SHARE CAPITAL Authorised capital : Equity shares of 10/- each 10,000, ,000,000 10,000, ,000,000 Issued, subscribed and paid up: Equity shares of 10/- each fully paid up 50, ,000 50, ,000 (Refer Note No. 25(a) in Schedule 2) 50, ,000 50, ,000 a) Reconciliation of equity shares outstanding at the beginning and at the end of the year There is no movement in share capital during the financial years and b) Terms / rights attached to equity shares (i) The Company has only one class of equity shares having a par value of 10/- each. Each holder of equity share is entitled to one vote per share. (ii) All shares issued carry equal rights for dividend declared by the Company. (iii) There are no restrictions attached for any specific shareholder. c) Equity shares held by holding Company As at As at Numbers Numbers Larsen & Toubro Limited, along with nomineees 50, ,000 50, ,000 d) Details of Shareholders holding more than 5% of equity shares in the Company As at As at Numbers Numbers % holding Larsen & Toubro Limited, along with nominees 50, % 50, % e) No shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment. No securities have been issued with a right/option to convert the same into equity shares at a later date. f) The Company has not bought back any shares or issued shares for consideration other than cash or issued bonus shares during the five years immediately preceding the date of Balance Sheet. As at As at RESERES AND SURPLUS Surplus As per last Balance Sheet 6,335,852 3,866,055 Add: Profit for the year 6,824,485 2,469,797 TOTAL 13,160,337 6,335,852 4 TRADE PAYABLES Due to - Micro and small enterprises [Refer Note (a) below] Other than micro and small enterprises 144,623,093 55,355,180 TOTAL 144,623,093 55,355,180 S-271

12 NOTES ACCOMPANYING THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2013 (CONTD.) (a) There have been no transactions during the year with Micro and small enterprises covered under the Micro, Small and Medium Enterprises Development (MSMED) Act, Hence, reporting details of overdue principal and interest thereon does not arise. As at As at OTHER CURRENT LIABILITIES Sales tax payable 5,233,050 11,583,072 Tax deducted at source payable 2,364,249 1,182,946 Liabilities for expenses 235, ,361 Due to holding Company 11,338 8,273 TOTAL 7,843,779 12,986,652 6 SHORT-TERM PROISIONS Income tax 3,051,760 1,104,439 TOTAL 3,051,760 1,104,439 7 TRADE RECEIABLES Unsecured, considered good Debts outstanding for more than six months Other debts 158,852,891 73,059,273 TOTAL 158,852,891 73,059,273 8 CASH AND CASH EQUIALENTS Balance with banks on current accounts 34,059 14,464 TOTAL 34,059 14,464 9 SHORT-TERM LOANS AND ADANCES Unsecured, considered good Security deposits 41,012 51,012 Advance taxes (net of provisions) 5,440,497 3,157,374 Advances to suppliers 4,810,510 - TOTAL 10,292,019 3,208, CONTINGENT LIABILITIES AND COMMITMENTS (a) Contingent liabilities Income tax liability in respect of matters which are 9,476,590 under appeal [Refer Notes below] TOTAL 9,476,590 Note : During the year, the Company has received an assessment order under Section 143(3) of the Income tax Act, 1961 dated March 18, 2013 pertaining to Assessment year The Company has filed an appeal against the order on April 16, 2013 with Commissioner of Income Tax (Appeals) and obtained a stay for the initial assessment order. The Company is confident of winning the case and hence no provision has been made in the books in this respect. (b) Commitments as at March 31, 2013 is Nil (Previous year Nil) S-272

13 NOTES ACCOMPANYING THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2013 (CONTD.) 11 REENUE FROM OPERATIONS Sale of products Gross Sales 1,115,053, ,226,523 Less : Excise duty Net Sales 1,115,053, ,226,523 Details of sale of products Aggregates 599,375, ,252,010 Boulders 515,677, ,974,513 TOTAL 1,115,053, ,226, OPERATING EXPENSES Contracting expenses 731,560, ,175,982 Power and fuel 93,653,746 70,297,165 Spares and consumables 31,832,182 41,218,357 Royalty 144,114, ,661,108 Hire of plant and machinery 65,729,075 34,136,015 Repairs and maintenance 2,981,945 1,676,064 TOTAL 1,069,871, ,164, ADMINISTRATION AND OTHER EXPENSES Rates and taxes 3,451,000 2,121,203 Cost of services 28,009,731 17,235,777 Professional fees (Refer note (b) below) 203, ,405 Printing and stationery expenses 19, ,116 Travelling and conveyance 3,475,521 4,486,847 Miscellaneous expenses 145, ,248 TOTAL 35,305,434 24,487,596 (a) The Company does not have any employees in its payroll. Accordingly, the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and the Payment of Gratuity Act, 1972 are not applicable to the Company for the year. (b) Professional fees includes Auditor s remuneration (excluding service tax) as below: Statutory audit fees 100, ,000 Tax audit fees 50,000 50,000 Certification fees 11,000 TOTAL 161, , SEGMENT REPORTING AS PER ACCOUNTING STANDARD (AS) 17 a) The Company operates in the single segment of mining and quarrying operations and accordingly no primary segment reporting has been made. b) The Company derives its entire income from India and accordingly, no geographical segment reporting has been made. S-273

14 NOTES ACCOMPANYING THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2013 (CONTD.) 15. DISCLOSURE OF RELATED PARTIES / RELATED PARTY TRANSACTIONS a) List of related parties Holding Company : Larsen & Toubro Limited b) Transaction with related parties Nature of transaction Sales of Boulders and Aggregates Hire charges paid Cost of services paid Re-imbursement of expenses Transaction 1,115,053,249 (576,226,523) 65,729,075 (34,136,015) 27,471,903 (16,125,063) 284,203,002 (260,494,846) Amount due to () Nil (Nil) 11,338 (8,273) Amount due from () 158,841,553 (73,059,273) (Figures in bracket indicate previous year) c) No amount due from or due to related parties has been written off or written back during the year. 16. The Company has not entered into any finance lease as specified in Accounting Standard (AS) - 19 Leases. The Company has, however taken various plant and machinery under cancellable operating lease. These agreements are normally renewed on expiry, when required. Lease rentals in respect of operating leases 65,729,075/- (previous year 34,136,015/-) Contingent rent recognised in the statement of profit and loss is Nil (Previous year Nil) 17. Earnings per share (EPS) computed in accordance with Accounting Standard (AS) 20 Particulars Unit Profit after tax for the year 6,824,485 2,469,797 Number of Equity Shares Number 50,000 50,000 Earnings per Share Basic and Diluted Face value of an equity share Figures for the previous year have been regrouped / reclassified, wherever necessary. As per our report of even date for SHARP & TANNAN Chartered Accountants (Firm s Registration No S). ISWANATHAN Partner Membership No For and on behalf of the Board S. KANAPPAN B. RAMAKRISHNAN S-274