Once the scheme is implemented, the company's equity base which currently stands at Rs 248.52 crore will increase by 5 per cent. The company will seek shareholders' approval for the same at its annual general meeting scheduled on August 26. Under the SOS scheme, employees will be given an option to acquire a certain number of shares at the grant price. Employees will pay Rs 10 per option at the time of the grant. Vesting to commence after one year and may extend up to four years from the date of grant.

Exercise period will start from the date of vesting and will end maximum after seven years. While exercising the optionthe employees will have to pay the balance grant price to obtain shares, says the company latest annual report.

In the case of SAS scheme, the employees are entitled to get the difference between the price computed for the purpose of exercise and the price computed for purpose of grant. The difference, which is the appreciation, would be paid in the form of shares. Both SOS and SAR are linked with employees' performance and other parameters as may be decided by the Compensation Committee. Similarly, terms of vesting will also be decided by this committee which may also look into performance of the employee. Vesting may occur in tranches, said the report.

The price for the purpose of grant will be worked out on the basis of an average high and low at the Bombay Stock Exchange quotations during the years for which performance is evaluated.

For finalising the appreciation, the price for the purpose of exercise will also be computed at the average of high and low of BSE quotes during one year ending on thedate of `exercise'. The annual report also outlines company's other plans.

It sees infrastructure development as a major area for growth. The company is executing various infrastructure projects on BOOT, BOT, BLO basis through special purpose vehicles (SPVs).

Some of the projects being undertaken by these SPVs include 118 mw power plant being set up by HPL Co-generation for Haldia Petrochemicals, 90 mw gas-based plant for IPCL being developed by India Infrastructure Developers, Hitec City project by L&T Infocity and Coimbatore bypass project by L&T Transportation Infrastructure.

L&T also has a number of subsidiaries, including LTM, L&T Finance and L&T Information Technology. Of these LTM made a net profit of Rs 9.59 crore compared to Rs 9.06 crore in the perious year. L&T Information Technology also registered a higher net profit of Rs 36.85 crore compared to Rs 17.53 crore in the previous year. However the L&T Finance reported a dip in the net profit of Rs 5.44 crore compared to Rs 8.93 crore in theperious year.Its associate companies include Audco India, EWAC Alloys, Tractor Engineers, L&T-Niro, L&T-Chiyoda, L&T-Sargent & Lundy, L&T-Komatsu, International Seaports, L&T-Ramboll Consulting Engineers and L&T-John Deere.

According to the company, incentives provided by the government for housing and infrastructure, will help enhancing the business.