The Directors have pleasure in presenting their Report and the Accounts for the year ending March 31, 2009.

DIRECTORS REPORT The Directors have pleasure in presenting their Report and the Accounts for the year ending March 31, 2009. FINANCIAL RESULTS Your Company has not commenced commercial operations and does not have taxable income under the provisions of the Income Tax Act, 1961.The key financial parameters for the year ended March 31, 2009 are Description 2008-2009 Rupees Gross Fixed Assets 1,21,23,361 Depreciation & Amortisation 8,19,741 Capital work-in-progress 451,79,68,188 Pre-operative expenses 95,42,56,735 DIVIDEND The Directors do not recommend dividend for the year 2008-2009. PERFORMANCE OF THE COMPANY The project is in the advanced stage of implementation. CAPITAL EXPENDITURE As at March 31, 2009, the gross fixed assets stood at Rs. 1,21,23,361 and the net fixed assets stood at Rs.1,13,03,620. Pre-operative expenses incurred and pending allocation to fixed assets as of March 31, 2009 is Rs. 95,42,56,735. DEPOSITS The Company has not accepted any deposits from the public. AUDITORS REPORT The Auditors Report to the Shareholders does not contain any qualifications. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Conservation of Energy The operations of your Company are not energy intensive as Company is not engaged in manufacturing activity and your Company is not under the list of industries which should furnish information in form A (Rule 2). Technology Absorption No technology has been developed and / or imported by way of foreign collaboration. Foreign Exchange Earnings and Outgo During the year the following transactions have occurred in foreign currency Travel Rs. 1,02,456 Interest on loan Rs. 14,46,29,148 CIF value of Import Rs. 35,16,234 DISCLOSURE OF PARTICULARS As the primary object of the Company is to develop, operate and maintain toll road there are no particulars to be disclosed as per the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988. There are no foreign exchange earnings or outgo during the period. 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, 1975. Mr. Manoj Singh has been appointed as Manager of the Company under the Companies Act, 1956. DIRECTORS RESPONSIBILITY STATEMENT The Board of Directors of the Company confirms i. that in the preparation of the annual accounts, the applicable Accounting Standards have been followed and there has been no material departure; ii. 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, 2009; S-732

iii. iv. 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; and that the annual accounts have been prepared on a going concern basis. DIRECTORS Mr. C. S. Damle, Director of the Company is liable to retire by rotation and being eligible offers himself for re-appointment. AUDIT COMMITTEE As per the provisions of Section 292A of the Companies Act, 1956 the Audit Committee has been constituted. The members of the Audit Committee are 1. Mr. M. H. Desai 2. Mr. C. S. Damle, and 3. Mr. R. Chandrasekaran The role, terms of reference, the authority and power of Chairman are in conformity with the requirements of the Companies Act, 1956. The Committee met periodically during the year and held discussions with the auditors on internal control systems and internal audit report. AUDITORS The Auditors, M/s M. K. Dandeker & Co., Chartered Accountants, being statutory auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment. Certificate from Auditors has been received to the effect that their appointment, if made, would be within the limits prescribed under Section 224(1B) of the Companies Act, 1956. ACKNOWLEDGEMENTS The Directors acknowledge the invaluable support extended to the Company by the financial institutions, bankers, employees of the Company, staff and management of the parent company. For and on behalf of the Board C. S. DAMLE R. CHANDRASEKARAN Director Director Place : Ahmedabad Date : April 22, 2009 S-733

AUDITORS REPORT TO THE MEMBERS OF L&T INTERSTATE ROAD CORRIDOR LIMITED We have audited the attached Balance Sheet of L&T INTERSTATE ROAD CORRIDOR LIMITED, as at March 31, 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In accordance with the provisions of Section 227 of the Companies Act, 1956, we report that 1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2. Further to our comments in the Annexure referred to above, 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 the audit; (b) in our opinion, proper books of accounts as required by law have been kept by the Company, so far as it appears from our examination of those books; (c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of account; (d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement 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 the written representations received from the Directors of the Company as on March 31, 2009, and taken on record by the Board of Directors, we report that none of the Directors is disqualified from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; and (f) in our opinion, and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India (i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2009; (ii) in the case of the Profit and Loss Account, of the loss for the year ended on that date; (iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. M. K. DANDEKER & CO Chartered Accountants S. NEELAKANTAN Place : Chennai Partner Date : April 22, 2009 Membership No. 18961 S-734

ANNEXURE TO THE AUDITORS REPORT With reference to the Annexure referred to in paragraph 1 of the report of the Auditors to the Members of L&T INTERSTATE ROAD CORRIDOR LIMITED, on the accounts for the year ended March 31, 2009, we report that (i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. (b) We are informed that the management of the Company has physically verified during the year all its fixed assets and no material discrepancies were noticed on such verification. (c) The Company has not disposed of any of its fixed assets so as to affect the going concern status. (ii) The Company is engaged in the business of infrastructure development and maintenance and hence the clauses 4(ii)(a), (b) & (c) of the Companies (Auditor s Report) Order, 2003 relating to inventory are not applicable. (iii) According to the information & explanations given to us, the Company has not granted or taken any loans, secured or unsecured, to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Hence reporting under clause 4(iii)(a) to (g) of the Companies (Auditor s Report) Order, 2003 does not arise. (iv) In our opinion, and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business, for the purchase of fixed assets. In our opinion, and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal control system. (v) 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 4(v)(b) of the Companies (Auditor s Report) Order, 2003 does not arise. (vi) The Company has not accepted deposits from the public within the meaning of Sections 58A, 58AA or any other relevant provisions of the Companies Act 1956. Hence Clause 4(vi) of the Companies (Auditor s Report) Order, 2003 is not applicable to the Company. (vii) In our Opinion, the Company has an internal audit system commensurate with its size and nature of its business. (viii) The Company is engaged in service activity and we are informed that maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 is not applicable to the Company. (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 has been generally regular in depositing undisputed statutory dues, Income Tax, and other statutory dues during the year with the appropriate authorities. As at March 31, 2009, there are no undisputed statutory dues payable for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, there are no dues which have not been deposited on account of any dispute of Income Tax and Cess. (x) The Company has not incurred cash loss during the financial year. The Company is registered for a period of less than five years and is yet to commence its commercial operations and hence reporting on the accumulated losses and cash loss incurred during the year and immediately preceding financial year under clause 4(x) of the Companies (Auditors Report) Order does not arise. (xi) The Company has not defaulted in repayment of dues to any banks or financial institutions. (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 / nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor s Report) Order, 2003 are not applicable to the Company. (xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. (xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions. (xvi) In our opinion and according to the information and explanations given to us, on an overall basis, the term loans have been applied for the purposes for which they were obtained. (xvii) According to the information and explanations given to us, the Company has not raised funds on short-term basis. Accordingly, the provisions of clause 4(xvii) of the Companies (Auditor s Report) Order, 2003 are not applicable to the Company. (xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956, during the year. (xix) The Company has not issued debentures during the year. Accordingly, no security or charge needs to be created. (xx) The Company has not raised any money by public issue during the year. (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 case by management. M. K. DANDEKER & CO. Chartered Accountants S. NEELAKANTAN Place : Chennai Partner Date : April 22, 2009 Membership No. 18961 S-735

BALANCE SHEET AS AT MARCH 31, 2009 As at 31.03.2009 As at 31.03.2008 Schedule Rupees Rupees Rupees Rupees SOURCES OF FUNDS Shareholders Funds Share Capital A 541,171,640 179,171,640 Loan Funds Secured Loan B 4,765,599,885 1,433,809,334 TOTAL 5,306,771,525 1,612,980,974 APPLICATION OF FUNDS Fixed Assets C Tangible assets Gross Block 11,848,361 3,675,152 Less: Depreciation 567,657 229,147 Net Block 11,280,704 3,446,005 Intangible assets Gross Block 275,000 275,000 Less: Depreciation 252,084 160,417 Net Block 22,916 114,583 Capital Work-in-Progress - Carriageway 4,517,968,188 2,153,586,664 4,517,991,104 2,153,701,247 Pre-Operative expenses pending allocation D 954,256,735 (80,504,478) 5,472,247,839 2,073,196,769 Current Assets, Loans & Advances E Current Assets Cash and Bank Balances 120,686,199 267,999,759 Loans and Advances 1,540,036,573 16,804,167 1,660,722,772 284,803,926 Less : Current Liabilities & Provisions F Current Liabilities 1,857,100,201 747,055,486 Provisions (18,379,044) 2,023,190 1,838,721,157 749,078,676 Net Current Assets (177,998,385) (464,274,750) Miscellaneous Expenditure (to the extent not written off or adjusted) Preliminary expenses 612,950 Profit & Loss Account 1,241,367 TOTAL 5,306,771,525 1,612,980,974 SIGNIFICANT ACCOUNTING POLICIES NOTES ON ACCOUNTS H I As per our report attached M. K. DANDEKER & CO. Chartered Accountants For and on behalf of the Board S. NEELAKANTAN R. SRIDHAR C. S. DAMLE R. CHANDRASEKARAN Partner Secretary Director Director Membership No. 18961 Place : Chennai Place : Ahmedabad Date : April 22, 2009 Date : April 22, 2009 S-736

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009 2008-2009 Schedule Rupees Rupees INCOME Other Income G 911,288 TOTAL 911,288 EXPENDITURE Profit / (Loss) before Taxes 911,288 Provision for Current Tax 281,588 Provision for Fringe Benefit Tax 1,258,117 1,539,705 Profit / (Loss) after Taxes (628,417) Prior period items - preliminary expenses 612,950 Balance Carried to Balance Sheet (1,241,367) Earnings per share Basic & Diluted (Face Value of Rs. 10/- each) (0.02) SIGNIFICANT ACCOUNTING POLICIES NOTES ON ACCOUNTS H I As per our report attached M. K. DANDEKER & CO. Chartered Accountants For and on behalf of the Board S. NEELAKANTAN R. SRIDHAR C. S. DAMLE R. CHANDRASEKARAN Partner Secretary Director Director Membership No. 18961 Place : Chennai Place : Ahmedabad Date : April 22, 2009 Date : April 22, 2009 S-737

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009 A. Cash Flow from Operating Activities 2008-2009 2007-2008 Rupees Rupees Net Profit / (Loss) before Tax & Extraordinary items 911,288 Adjustment for Interest received (911,288) Operating Profit before Working Capital changes (Increase) / Decrease in Loans and Advances (781,906) 18,761,077 Increase / (Decrease) in trade payables (364,566,567) 709,610,169 Cash generated from Operations (365,348,473) 728,371,246 Direct taxes paid (net of refund) (850,500) (19,665,782) Net Cash from Operating Activities (A) (366,198,973) 708,705,464 B. Cash Flow from Investing Activities Purchase of Fixed Assets (2,816,416,272) (1,945,242,266) (including interest capitalised Rs. 14,86,73,841 Previous year Rs. 3,31,73,929) Interest received 911,288 3,950,082 Net Cash (used in) / from Investing Activities (B) (2,815,504,984) (1,941,292,184) C. Cash Flow from Financing Activities Issue of Equity Shares and advance against share capital 362,000,000 31,000,000 (Repayment ) / Proceeds from other borrowings 2,672,390,397 1,440,485,483 Net Cash (used in) / from Financing Activities (C) 3,034,390,397 1,471,485,483 Net increase in Cash and Cash Equivalents (A+B+C) (147,313,560) 238,898,763 Cash and Cash Equivalents as at the beginning 267,999,759 29,100,996 Cash and Cash Equivalents as at the end 120,686,199 267,999,759 Notes 1. Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard 3 Cash Flow Statements as specified in the Companies (Accounting Standards) Rules, 2006. 2. Cash and Cash Equivalents represent Cash and Bank Balances. 3. Purchase of Fixed Assets includes movement of Capital work-in-progress and preoperative expenses during the year. 4. Previous year s figures have been regrouped / reclassified wherever applicable. As per our report attached M. K. DANDEKER & CO. Chartered Accountants For and on behalf of the Board S. NEELAKANTAN R. SRIDHAR C. S. DAMLE R. CHANDRASEKARAN Partner Secretary Director Director Membership No. 18961 Place : Chennai Place : Ahmedabad Date : April 22, 2009 Date : April 22, 2009 S-738

SCHEDULES FORMING PART OF BALANCE SHEET L&T INTERSTATE ROAD CORRIDOR LIMITED As at 31.03.2009 As at 31.03.2008 Rupees Rupees Rupees Rupees SCHEDULE - A SHARE CAPITAL Authorised 5,80,00,000 Equity Shares of Rs. 10/- each 580,000,000 580,000,000 Issued, Subscribed & Paid-up 5,41,17,164 Equity Shares of Rs. 10/- each fully paid-up 541,171,640 179,171,640 Of the above 36,20,000 shares of Rs. 10/- each issued during the year (All the shares are held by L&T Infrastructure Development Projects Limited, the Holding Company and its nominees) TOTAL 541,171,640 179,171,640 SCHEDULE - B SECURED LOANS Term Loans from Banks and Financial Institutions From Banks Citi bank 538,295,460 179,370,711 Bank of Baroda 890,482,222 289,677,459 ADCB 2,408,577,985 893,823,942 From Financial Institution IIFCL 928,244,218 70,937,222 (Secured by pari passu charge on all the movable & immovable assets of the Company, both present and future) TOTAL 4,765,599,885 1,433,809,334 SCHEDULE - C FIXED ASSETS COST DEPRECIATION / AMORTISATION BOOK VALUE PARTICULARS As at Additions As At Up to For the year Up to As at As at 01.04.2008 31.03.2009 01.04.2008 31.03.2009 31.03.2009 01.04.2008 Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees TANGIBLE ASSETS Buildings 2,473,000 2,473,000 47,028 151,623 198,651 2,274,349 2,425,972 Plant & Machinery 3,685,868 3,685,868 24,293 24,293 3,661,575 Office Equipment 276,156 249,462 525,618 22,113 17,256 39,369 486,249 254,043 Furniture 361,596 646,497 1,008,093 56,377 26,006 82,383 925,710 305,219 Computers 564,400 207,199 771,599 103,629 92,666 196,295 575,304 460,771 Motor Vehicle 3,384,183 3,384,183 26,666 26,666 3,357,517 INTANGIBLE ASSETS Specialised Software 275,000 275,000 160,417 91,667 252,084 22,916 114,583 TOTAL 3,950,152 8,173,209 12,123,361 389,564 430,177 819,741 11,303,620 Previous Year 379,590 3,950,152 249,125 389,564 3,560,588 Capital Work-in-Progress 4,517,968,188 2,153,586,664 Grand Total 4,529,271,808 2,157,147,252 Note: The Company is yet to receive the share certificate conveying its ownership of the undivided share of land from the co-operative housing society formed by the apartment holders. S-739

SCHEDULES FORMING PART OF BALANCE SHEET (Contd.) SCHEDULE - D PREOPERATIVE EXPENSES Opening balance For the Year Closing balance As at 01.04.2008 As at 31.03.2009 Rupees Rupees Rupees Salaries and Wages 6,244,932 4,196,817 10,441,749 Contributions to & Provision for Provident Fund 331,281 199,814 531,095 Gratuity 77,992 19,336 97,328 Leave Encashment 152,109 (110,988) 41,121 Staff welfare expenses 373,002 476,589 849,591 Rent 831,450 479,400 1,310,850 Rates and Taxes 3,510,174 166,132 3,676,306 Travelling and conveyance 8,174,008 5,624,803 13,798,811 Communication Expenses 481,988 216,892 698,880 Printing and Stationery 295,618 120,271 415,889 Insurance 1,423,182 333,010 1,756,192 Electricity Charges 198,977 186,062 385,039 Professional Fees 114,915,055 15,311,403 130,226,458 Interest on Term Loans 33,173,929 148,673,481 181,847,410 Repairs and Maintenance 181,881 112,999 294,880 Premium on forward contracts amortised 13,769,343 13,769,343 Miscellaneous Expenses 7,057,254 3,075,814 10,133,068 Depreciation / Amortisation 389,564 430,177 819,741 177,812,396 193,281,355 371,093,751 Less: Interest on Fixed Deposit 5,721,695 5,721,695 (Tax deducted at source: Rs. 2,06,331; Previous Year Rs. 8,99,382) Loss / (Gain) on account of foreign exchange transactions (275,243,021) 861,537,056 586,294,035 (103,152,320) 1,054,818,411 951,666,091 Add : Provision for Taxes Current Tax 21,874,098 (20,057,198) 1,816,900 Fringe Benefit Tax 773,744 773,744 Total Pre-operative expenses pending allocation to fixed assets (80,504,478) 1,034,761,213 954,256,735 S-740

SCHEDULES FORMING PART OF BALANCE SHEET (Contd.) L&T INTERSTATE ROAD CORRIDOR LIMITED As at 31.03.2009 As at 31.03.2008 Rupees Rupees Rupees Rupees SCHEDULE - E CURRENT ASSETS, LOANS AND ADVANCES Cash and Bank Balances Cash on hand 5,148 20,913 Balances with Scheduled banks on current account 20,669,226 267,978,846 on deposit account (including interest accrued thereon) 11,825 on margin money deposit account 100,000,000 120,686,199 267,999,759 Loans and Advances Unsecured Considered good Advances recoverable in cash or in kind or for value to be received 1,540,036,573 16,804,167 TOTAL 1,660,722,772 284,803,926 SCHEDULE - F CURRENT LIABILITIES & PROVISIONS Liabilities Sundry Creditors Due to Micro, Small & Medium Enterprises Due to Larsen & Toubro Limited (Ultimate Holding Company) 383,753,134 692,717,718 Due to L&T Infrastructure Development Projects Limited 19,985,700 (Holding Company) Others 1,473,347,067 34,352,068 1,857,100,201 747,055,486 Provisions for Income Tax (19,775,610) 1,220,575 Fringe Benefit Tax 1,258,117 569,014 Bonus 3,500 Gratuity 97,328 77,992 Leave Encashment 41,121 152,109 (18,379,044) 2,023,190 TOTAL 1,838,721,157 749,078,676 SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT 2008-2009 2007-2008 Rupees Rupees SCHEDULE - G OTHER INCOME Other Income Interest on Fixed Deposits 911,288 (Tax deducted at source Rs. 2,06,331) TOTAL 911,288 S-741

SCHEDULES FORMING PART OF ACCOUNTS (Contd.) SCHEDULE H SIGNIFICANT ACCOUNTING POLICIES 1. Basis of Accounting The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles ( GAAP ) and in compliance with the Accounting Standards referred to in Section 211(3C) and other provisions of the Companies Act, 1956. 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 year, 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 lives of fixed assets and intangible assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates and would be recognized in the period in which the results are known. 2. Fixed Assets Fixed Assets are stated at original cost less accumulated depreciation. Intangible Assets and Amortization Intangible assets are recognized as per the criteria specifies in Accounting Standard (AS) 26 Intangible Assets issued by the Institute of Chartered Accountants of India and are amortized as follows a. Specialized Software: over a period of three years. Pre-operative expenses incurred up to the date of commencement of commercial operations are capitalized. Carriageway representing toll collection rights are obtained in consideration for rendering construction, operation and maintenance services in relation to building and maintenance of the project on Build, Operate and Transfer basis. The cost of such Carriageway comprise of construction cost and other preoperative costs incurred during the construction phase. Such Carriageway on completion are capitalized as Intangible Asset and are amortised over the period of rights given under the Concession Agreement as they represent right to collect toll revenue during the concession period. 3. Depreciation Tangible Assets are depreciated on straight-line basis at the rates specified in Schedule XIV of the Companies Act, 1956. However, where the rate of depreciation provided in Schedule XIV of the Companies Act, 1956 does not depreciate the asset fully over the period of concession, such tangible assets are depreciated over the period of rights given under the Concession Agreement. Depreciation on additions / deductions is calculated pro rata from / to the month of additions / deductions. 4. Borrowing Costs Borrowing costs that are attributable to the acquisition, construction or production of qualifying asset are capitalized as part of the cost of such asset, till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred. 5. Foreign Currency Transactions and Derivatives a) The reporting currency of the Company is the Indian Rupee. b) Foreign Currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate on the date of the transaction. c) At each Balance Sheet date, foreign currency monetary items are reported using the closing rate. Exchange differences that arise on settlement of monetary items or on reporting at each Balance Sheet date of monetary items at the closing rate are adjusted in pre-operative expenses. 6. Employee Benefits Provisions for / contributions to retirement benefit schemes are made as follows (as per AS15) a) Provident Fund on actual liability basis. b) Gratuity based on actuarial valuation. c) Leave Encashment benefit on retirement on actuarial valuation basis. 7. Taxes Tax on income for the current year is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on the expected outcome of assessments / appeals. Fringe Benefit Tax is determined for the year as per the provisions of chapter XII-H of the Income Tax Act,1961. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and qualified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. S-742

SCHEDULES FORMING PART OF ACCOUNTS (Contd.) L&T INTERSTATE ROAD CORRIDOR LIMITED Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. 8. Lease Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. 9. Provisions and Contingent Liabilities and Contingent Assets Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if a) the Company has a present obligation as a result of a past event. b) a probable outflow of resources is expected to settle the obligation, and c) the amount of the obligation can be reliably estimated. 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. Contingent Liability is disclosed in the case of a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation. b) A possible obligation, unless the probability of outflow of resources is remote. Contingent Assets are neither recognized, nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date. SCHEDULE I NOTES FORMING PART OF ACCOUNTS 1. The Company has been awarded on Build, Operate and Transfer (BOT) Annuity basis, the widening of existing two-lane seventy six kilometer stretch from Km 340.00 to Km 264.00 on Palanpur Swaroopgunj Section of National Highway No.14 in the State of Gujarat and Rajasthan and operation and maintenance thereof, under the Concession Agreement dated March 28, 2006 with National Highways Authority of India (NHAI). The Concession Agreement is for a period of 17.5 years from September 24, 2006, being the Commencement Date stated in clause 1.1 of the said agreement. At the end of the concession period, the entire facility will be transferred to NHAI. 2. As per the provisions of the Concession Agreement, the scheduled commercial operations date of the project is March 24, 2009. However, the Company is yet to receive provisional completion certificate from NHAI certifying project completion and hence annuity income is not accrued in the accounts for the period March 24, 2009 to March 31, 2009. 3. Profit & Loss Account has been drawn to comply with the provisions of the Companies Act, 1956. However, the Company has not commenced commercial operations. Provision for Current Tax has been made in respect of interest income earned on bank fixed deposits. Provision for Fringe Benefit Tax has been made as per the provisions of the Income Tax Act, 1961. The Company does not have taxable wealth under the provisions of the Wealth Tax Act, 1957 4. There have been no transactions during the year with micro, small and medium enterprises covered under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Hence, reporting details of principal and interest does not arise. 5. The Company is a service company and accordingly information required under paragraph 4(C) of Part II of Schedule VI to the Companies Act, 1956 has not been furnished. 6. Estimated amount of contracts remaining to be executed on capital account (net of advances) is Rs. 10,61,41,897 (Previous Year: Rs. 246,99,79,363). 7. Managerial remuneration for the year has been charged to the accounts as below. For the period 01.04.2008 to 30.11.2008 2007-2008 Remuneration Rupees Rupees Salary 7,46,994 10,37,738 Contribution to Provident Fund 30,240 43,488 Total 7,77,234 10,81,226 8. Auditor s Remuneration (excluding service tax) Audit Fees 1,00,000 1,00,000 Certification Expenses 26,500 S-743

SCHEDULES FORMING PART OF ACCOUNTS (Contd.) 9. Employee Benefits (1) Provisions for Gratuity and Leave Encashment is made on actuarial basis as summarized below. (2) A Results of Actuarial Valuation- Gratuity 1. Valuation as on March 31, 2009 March 31, 2008 2. Retirement Age As per rule of the Company As per rule of the Company 3. No. of Employees 6 7 4. Notional Benefit Obligations (Accrued benefits) on Current Salary in Rupees 1,14,462 81,728 5. Present Value of Benefit Obligations in Rupees 97,328 77,992 B Principle Rules to Compute Benefit Obligations 1. Salary reckoned for calculating Benefit Obligations As per rule of the Company 2. Vesting Period 5 Years for Gratuity 3. Benefit formula for Gratuity for all exits except death B1 X Completed year of service X 15/26 subject to benefit having vested 4. Benefit formula for Gratuity on death Same as B3 but no vesting condition (3) Leave Salary Valuation A Summary of Staff data 1. No. of Employees 6 7 2. Notional benefit obligations on current salary in rupees 48,655 1,59,506 3. Projected actuarial value of benefit obligation in rupees 41,121 1,52,109 B Principle rules to compute benefit obligations 1. Salary reckoned for calculating Benefit Obligations As per rule of the Company 2. Benefit formula for all exits B1 x Leave Balance / 30 (4) Summary of Actuarial Assumptions A Mean Financial Assumptions 1. Discount Rate per unit per annum 6.50% 7.50% 2. Salary escalation rate per unit per annum 6% 6% 3. Expected rate of return on Plan Assets per unit per annum N.A N.A B Mean Demographic assumptions 1. Mortality rate LIC 94-96 Rates 2. Withdrawal / attrition rate 15% for all age 15% for all age 3. Disability / ill health retirement No Explicit Assumption No Explicit Assumption Expense to be recognized in Preoperative Expenses March 31, 2009 March 31, 2008 Current Service Cost 1,38,449 2,30,101 Interest on Defined Benefit Obligation Expected Return on Plan Assets Net Actuarial Losses / (Gains) recognised during the period Past Service Cost Losses / (Gains) on Curtailments & Settlements Total 1,38,449 2,30,101 Actual Return on Plan Assets (5) Contribution to Provident Fund is made to the Regional Provident Fund office. 10. The Company has taken office premises and guest house on cancellable operating lease. Lease rent amounting to Rs. 4,79,400 (Previous Year: Rs. 4,75,000) has been included in pre-operative expenses for the year. S-744

SCHEDULES FORMING PART OF ACCOUNTS (Contd.) L&T INTERSTATE ROAD CORRIDOR LIMITED 11. Disclosure of Related Parties / Related Party Transactions A. List of related parties Holding companies : L&T Infrastructure Development Projects Limited (Holding Company) Larsen & Toubro Limited (Ultimate Holding Company) Fellow subsidiaries : L&T Urban Infrastructure Limited B. Transactions with Related Parties and amounts due to / due from related parties Sl. Nature of transaction Amount of Amount Amount No. Transaction Due to Due From Rupees Rupees Rupees 1 Larsen & Toubro Limited (Ultimate Holding Company) i) Mobilization Advance NIL NIL NIL (3,60,00,000) (NIL) (NIL) ii) Purchase of Goods & Services 257,12,39,797 38,35,02,924 NIL (185,79,81,350) (69,27,01,865) (NIL) iii) Reimbursement of Expenses 2,50,210 2,50,210 NIL (35,704) (15,852) (NIL) iv) Advance for electrical items (Toll Plaza) 2,83,90,296 NIL NIL (85,24,749) (NIL) (NIL) 2 L&T Infrastructure Development Projects Limited (Holding Company) i) Purchase of Goods & Services 3,16,97,937 NIL NIL (2,25,93,416) (1,99,85,700) (NIL) ii) Reimbursement of Expenses 10,16,131 NIL NIL (17,07,881) (7,92,619) (NIL) iii) Subscription of Equity 36,20,00,000 NIL NIL (3,10,00,000) (NIL) (NIL) 3 L & T Urban Infrastructure Limited i) Reimbursement of Expenses NIL NIL NIL (100) (NIL) (NIL) Note: Figures in brackets relate to previous year C. No amount due to / due from has been written off or written back during the year. 12. (a) Expenditure in foreign currency 2008-2009 2007-2008 Particulars Rupees Rupees Travel expenses 1,02,456 43,157 Interest Expenses 14,46,29,148 3,31,48,106 (b) CIF Value of Imports 35,16,234 Nil 13. The estimated useful lives of the Buildings, Furniture & Fixtures, Plant & Machinery are revised during the year with effect from April 1, 2008 taking into consideration the balance concession period over which the asset would be available for use. Accordingly the balance unamortized cost of the Tangible Assets as on April 1, 2008 are depreciated over the remaining concession period. This change is accounted for prospectively as a change in accounting estimate as per Accounting Standard 6 on Depreciation as specified in the Companies (Accounting Standards) Rule, 2006 and as a result the depreciation charge for the year has increased by Rs. 1,14,072. 14. Pursuant to amendment of AS 11 Effects of Changes in Foreign Exchange Rates by the Central Government vide notification dated March 31, 2009, the Company has decided to adopt the option provided in the notification with respect to capitalisation of exchange differences as part of fixed assets and as a result the entire exchange difference has been added to preoperative expenses. Since the Company was hitherto following the same treatment for the year ending March 31, 2008, there is no impact of the amendment in the accounts vis-à-vis what was followed earlier. 15. Preliminary expenses incurred prior to commencement of commercial business operations were hitherto classified under the head Miscellaneous Expenditure and was to be written off in the year of commencement of commercial business operations. During the year though commercial business operations were not commenced, such preliminary expenses are charged to Profit & Loss Account. S-745

SCHEDULES FORMING PART OF ACCOUNTS (Contd.) 16. Basic and Diluted Earnings per share ( EPS ) computed in accordance with Accounting Standard 20 Earnings per Share is as under Particulars 2008-2009 Basic and Diluted EPS Profit after tax as per Accounts (Rs.) (6,28,417) Weighted average number of equity shares 4,15,47,301 Basic and Diluted EPS (Rs.) (0.02) 17. The provisions of the following Accounting Standards are not applicable since a. The Company is yet to commence commercial operations Segment Reporting AS 17 Deferred Tax AS 22 Impairment of Assets AS 28 b. The Company does not have transactions to which the provisions for the following Accounting Standards apply. Valuation of Inventories AS 2 18. Figures for the previous year have been regrouped / reclassified wherever necessary. As per our report attached M. K. DANDEKER & CO. Chartered Accountants For and on behalf of the Board S. NEELAKANTAN R. SRIDHAR C. S. DAMLE R. CHANDRASEKARAN Partner Secretary Director Director Membership No. 18961 Place : Chennai Place : Ahmedabad Date : April 22, 2009 Date : April 22, 2009 S-746

BALANCE SHEET ABSTRACT AND COMPANY S GENERAL BUSINESS PROFILE I. Registration Details: Registration No. U45203TN2006PLC058735 State Code 1 8 Balance Sheet Date 3 1 0 3 2 0 0 9 Date Month Year II. III. IV. Capital raised during the year (Amount in Rs. Thousands) Public Issue Rights Issue N I L N I L Bonus Issue Private Placement N I L 3 6 2 0 0 0 Position of Mobilisation and Deployment of funds (Amount in Rs. Thousands) Total Liabilities Total Assets 5 3 0 6 7 7 2 5 3 0 6 7 7 2 Sources of Funds Paid-up Capital Reserves & Surplus 5 4 1 1 7 2 N I L Secured Loans Unsecured Loans 4 7 6 5 6 0 0 N I L Application of Funds Net Fixed Assets (incl. pre-op. expenses) Investments 5 4 8 3 5 2 9 N I L + Net Current Assets / (Liabilities) Misc. Expenditure 1 7 7 9 9 8 N I L Accumulated Losses 1 2 4 1 Performance of Company (Amount in Rs. Thousands) Turnover (incl. other income) Total Expenditure 9 1 1 N I L + Profit / Loss Before Tax + Profit / Loss After Tax + 9 1 1 6 2 8 Earnings per share in Rs. Dividend Rate % 0. 0 2 N I L V. Generic Names of Three Principal Products / Services of the Company (as per monetary terms) Item Code: N. A. Product Description INFRASTRUCTURE PROJECT ON BOT ANNUITY BASIS For and on behalf of the Board Place : Ahmedabad R. SRIDHAR C. S. DAMLE R. CHANDRASEKARAN Date : April 22, 2009 Secretary Director Director S-747