L&T Finance Holdings Limited Cumulative Compulsorily Redeemable

Preference Share offered @ 8.45% yield

Credit Rating: L&T Finance Holding Ltd have a credit rating of CARE AA+(RPS) [Double A Plus
(Redeemable Preference Shares)] by CARE

Major Terms & Condition of the CRPS:

Issuer
Security Name

Type of Instrument
Seniority

Rating of the instrument

Dividend Rate
Dividend Payment Frequency
Tenure
Face Amount
Dividend Payment Date

L&T Finance Holding Ltd

Listed 9% cumulative compulsorily redeemable preference shares of
a face value of Rs 100 each being issued by L&T Finance Holdings
Limited on a private placement basis
Listed, Cumulative, Compulsorily Redeemable Preference Shares
Claims of the CRPS Holder shall rank senior to claims by any holder
of equity shares of the Company and shall rank paripassu with all
other preference shares issued by the Company. Claims of the CRPS
Holder shall be subordinate to the both secured and unsecured
creditors of the Company.
CARE AA+(RPS) [Double A Plus (Redeemable Preference Shares)] by
CARE
9%
Annually payable
5 years from the deemed date of allotment (15-oct-2018)
Rs.100
Date of Dividend## Dividend Amount** For the Year
March 26, 2014
4.14
FY2013-14(pro-rata)
March 26, 2015
9.00
FY2014-15
March 25, 2016
9.00
FY2015-16
March 24, 2017
9.00
FY2016-17
March 26, 2018
9.00
FY2017-18
October 14, 2018
104.86
FY2018-19 (pro-rata)
** Dividend amount has been calculated @ 9.00% p.a. rounded off to
two decimals per share
## Please note that the dividend amount and date mentioned above
may change based on the actual Deemed Date of Allotment, being
calculated at the rate of dividend being 9.00% p.a.
In the event that there is any change in applicable tax laws on
account of which the dividend received by the CRPS holders
becomes subject to any tax to the account of the CRPS holders, the
Company shall declare and pay such additional amounts as dividend
such that the total amount received by the CRPS Holders as dividend
in relation to the CRPS less the tax payable on account of the change
in Applicable Law is equivalent to the Rate of Dividend (as stated
above).

For complete details please read the "Product Brochure". The risk factors are mentioned on pages 7
to 13 of the product brochure (Information Memorandum).

Background of the company:

L&TFHL is promoted by L&T and was incorporated as L&T Capital Holdings Limited on May 01, 2008,
under the Companies Act, 1956, to carry on the business of investment/finance and received the
certificate of commencement of business on May 15, 2008. Subsequently, the company changed the
name to L&T Finance Holdings Limited from September 01, 2010, and received fresh certificate of
incorporation from the Registrar of Companies on September 06, 2010. Prior to March 31, 2009,
L&TFH had minimal operations with passive investments. It acquired 100% stake in L&T Finance
Limited (LTF) and L&T Infrastructure Finance Limited (L&T Infra) on March 31, 2009. The company
came up with an Initial Public Offer (IPO) during FY12 (refers to the period April to March),
consequent to which, the stake of L&T diluted to 82.64%. However, L&T continues to hold controlling
stake in the company and the management of L&TFHL is mainly drawn from the senior management
of L&T.
Financial Background:
L&TFHL reported consolidated Profit After Tax (PAT) of Rs.730 crore on total income of Rs.4,006 crore
during FY13 as compared with PAT of Rs.455 crore on total income of Rs.3,007 crore during FY12. It
reported consolidated PAT of Rs.171 crore during Q1FY14.
Rating Rationale by CARE
The rating factors in the strategic importance of L&T Finance Holdings Ltd (L&TFHL) to the L&T group
as the flagship holding company of its financial services business, brand value of L&T, experienced
management, L&TFHs strong consolidated financial position, and strong resource-raising ability. The
rating further factors in L&TFHs well-diversified business profile in the financial sector through its
direct and indirect subsidiaries that have good presence and track record in segments like retail
finance, corporate finance, infrastructure finance and asset management services as well as the
profitability track record of its subsidiaries. Continued support from L&T, profitability and the asset
quality of loan portfolio of its subsidiaries are the key rating sensitivities.
Source: CARE credit rating.