lt infrastructure engineering ltd Management discussions

L&T-RAMBOLL CONSULTING ENGINEERS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS YEAR IN RETROSPECT Year 2005 - 06 has been a very eventful year for your Company with bagging prestigious orders like Consultancy for Detailed Design : * Berths and Breakwater for ECC in Gangavaram Port Project * 62 kms Road project for ECC * Dry Bulk Berth for Mundra Port * Airside and Land side design of Bangalore and Hyderabad Airport Project * Elevated Corridor at Panipat Further the Company has rendered services in the areas of Transport planning, Traffic Studies, SEZ Planning to various private and public sector clients. We expect this upward trend to continue through next year for your company. The Income (including Other Income) for the financial year under review was Rs.112.98 Million registering a growth of 35%. FINANCE The Company has enhanced Cash Credit facilities by Rs 5.0 Million from Rs.12.5 Million to Rs 17.5 Million from its banker to accommodate increase in working capital requirements. The net profit (before taxes) for the year ended March 31, 2006 was Rs.12.36 Million. The Company has written off unrealisable receivables to an extent of Rs 6.1 Million. CAPITAL EXPENDITURE The Company has opted to lease high-end data processing equipment and Software. Hence Cash outflows on Capital outlay were minimum. As at 31st March 2006, the gross fixed assets stood at Rs. 34.1 million after net additions of Rs 2.2 million and the net fixed assets at Rs.15.0 million. OUTLOOK The Company is carving a niche for itself in the Marine, Roads and Bridges Sector in the Country, The company is poised for quantum jumps in its operations with the implementation of large Marine, Roads and Bridge Projects by the Public Sector and the Private Sector. The Company is expanding its Offices based on the enhanced requirements of new projects.