PERFORMANCE BANK GUARANTEE

Bank Guarantee No Date

To

LARSEN & TOUBRO LIMITED,

L&T CONSTRUCTION
SHARED SERVICES CENTRE
TCTC BUILDING, 2ND FLOOR,
PO BOX.979, MOUNT POONAMALLEE RD,
MANAPAKKAM, CHENNAI – 600 089

Preamble:
WHEREAS we have been informed that you, M/s. Larsen & Toubro Limited,
L&T Construction ____________________(address) (hereinafter referred to as the
“Company”) have awarded a Purchase Order/ Work Order No_______
dated___________( hereinafter referred to as the “Contract”) to
M/s.____________, having its office at _________, represented by its
_______________ Mr. __________ (hereinafter referred to as the “Contractor”) for
______________________ (brief description of the Order) and in terms of the said
Contract, the Contractor is required to furnish to you with a guarantee for due
performance of the Works under the said Contract till ___________________ (to
mention the period of validity – either a specific end date or it may be up to the end
of the warranty / defects liability period under the Main Contract ), in the manner
hereinafter contained. We _________________ (Name of the Bank), having its
registered office at __________ and having a Branch office among other places at
__________ (hereinafter referred to as the “Bank”), do hereby covenant and agree
with you as follows:

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 1.0 We hereby irrevocably and unconditionally guarantee and undertake to pay the
Company immediately on demand any or all monies claimed by the Company
to the extent of and up to the sum of Rs._________/- (Rupees ______________
only) without any demur, reservation, contest, recourse or protest and/or
without any reference to the Contractor including without disputing whether
any sums are payable under the Contract or not. We agree that the Company
may make multiple demands under this Bank Guarantee provided the aggregate
of all sums paid under this Bank Guarantee does not exceed Rs……………….

2.0 Notwithstanding anything to the contrary, your decision as to whether the

Contractor has made any default or committed breach of the obligations and the
amount or amounts to which you are entitled by reason thereof will be binding
on us and we shall not be entitled to ask you to establish your claims under this
guarantee but will pay the same merely on written demand, unconditionally,
without any demur or protest.

3.0 All payments made or to be made by us to you under this guarantee shall be
made in full without any set-off, restriction or condition and without deduction
for or on account of any counterclaim. However, our liability under this
Guarantee shall be restricted to Rs. _____________ (value of BG).

4.0 We agree that the Company shall be entitled to enforce this guarantee against us
as a principal debtor in the first instance without proceeding against the
Contractor and notwithstanding any security or other guarantee that the
Company may have from the Contractor.

5.0 This guarantee shall be valid from the date hereof and continue to be valid until
________________ . Provided always this guarantee shall in no event remain
in force after the day of _______ without prejudice to your claim or claims
arisen and demanded from or otherwise notified to us in writing on or before the
said date which will be enforceable against us notwithstanding that the same is
or are enforced after the said date. We have been informed that Company may

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 require the Contractor to keep the validity of this guarantee extended till such
time as may be required and the Company may invoke the bank guarantee if the
validity of the guarantee is not extended.

6.0 You will have fullest liberty without affecting this guarantee from time to time
to vary any of the terms and conditions of the said Contract or extend time of
performance of the works there under or to postpone for any time or from time
to time any of your rights or powers against the Contractor and either to
enforce or forbear to enforce any of the terms and conditions of the said
Contract and we shall not be released from our liability under this guarantee by
the exercise of your indulgence with reference to matters aforesaid or by reason
of any time being given to the Contractor or any other forbearance, act or
omission on the your part or any indulgence by you to the Contractor or by any
variation or modification of the said Contract or any other act, matter or thing
whatsoever. We shall not be released from our obligation hereunder by any
exercise by you of your rights with reference to the matters aforesaid which
under law would, but for this provision, have the effect of relieving us. Provided
always nothing herein contained will enlarge our liability hereunder beyond the
limit of Rs. _______/- (Rupees ___________ only) as aforesaid.

7.0 Your right to recover the aforesaid amount from us in the manner aforesaid will
not be affected or suspended by reason of the fact that the Contractor has raised
any dispute or disputes, and/or any dispute or disputes are pending before any
officer, tribunal or court or arbitrator(s).

8.0 This guarantee shall not be affected by any change in the constitution of the
Contractor or us nor shall it be affected by any amalgamation or absorption
thereof or therewith by will be available to and enforceable against the
absorbing or amalgamated Company or Concern.

9.0 This guarantee shall not be revoked by us at any time during its currency
without your prior consent in writing.

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 10.0 Our obligation under this guarantee shall be continuing obligations and shall
not be satisfied, discharged or affected by any arrangement, agreement
between the Company and the Contractor nor will our obligations be
affected by any intermediate payment or settlement of account between the
Company and the Contractor.

11.0 Without prejudice to any other mode of service, a demand or claim or other
communication may be transmitted by you to the bank either by post / Speed
post / Courier / Hand Delivery or by e-mail.

12.0 We have necessary powers as per MOA / AOA / POA in our favour to issue
this Guarantee in your favour.

13.0 This Bank Guarantee shall be governed by and interpreted under the laws of
India.

14.0 NOTWITHSTANDING anything contained herein:

(a) Our liability under the Bank Guarantee shall not exceed Rs. ___________ /-
(Rupees ________________________________ only).

(b) This Bank Guarantee shall be valid up to _____________ (Date of Validity

to be mentioned) and , unless a Demand is made on the bank in writing on
or before _____________ (Date of Validity including one month claim
period to be mentioned) all your rights under this guarantee shall be
forfeited and we shall be relieved and discharged from all our liabilities
there under.

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 “The confirmation for issue of this Bank Guarantee has been transmitted by us
through SFMS in IFN 760 format to ICICI Bank Limited, 110, 1st Floor,
Nungambakkam High Road, Nungambakkam, Chennai – 600034; IFSC code:
ICIC0000009.”

Dated at ___________ this ______________ of 20__.

Bank E-mail ID for Extension/claim:

Bank Phone.No for Extension/claim:

Witness: 1 ………………………..
(Signature)
Signature
Name
Official address ………………………...
(Name)

Witness: 2
Designation with Bank
Stamp
Signature
Name
Official address

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 LARSEN & TOUBRO LIMITED
GUIDELINES FOR EXECUTION OF BANK GUARANTEE

1. Bank Guarantee is to be executed on non-judicial stamp paper of Rs.100/- minimum.

2. The date of sale of non-judicial stamp paper used for executing the BG should not be
more than six months old.

3. Bank Guarantee should match verbatim with our standard format.

4. Name, Designation & Power of Attorney No. / Signing Power Number / Specimen
Signature No. of the executing officer/(s) should be mentioned on the BG.

5. Each page of the BG should be signed / initiated by the executant / (s), and the last
page should be signed with full particulars as required in our standard proforma of BG
and under the seal of the Bank.

6. The last page of the BG should carry the names & signatures of two witnesses
alongside the signature / (s) of the executing Officer / (s)

7. The factual details such as Purchase Order reference & date, Works Order Reference &
date, BG value (both in numeric & words) should invariably be specified in the Bank
Guarantee.

8. The amount and validity of the BG should be in line with the Purchase / Work order
conditions.

9. List of bank guarantee accepted by us is provided in the last page of this guidelines.

10. BG confirmation is transmitted by your bank only in IFN 760 format through SFMS
(Structured Financial Messaging system) to facilitate faster processing of the BG’s /
Invoices at SSC. We give below the procedure / requirements for your ready reference:

a) While making the BG application, Vendors to inform their Bank to send BG

confirmation only through IFN 760 (Guarantee) vide SFMS to our Bank.

b) IFN 760 (Guarantee) should contain the following details: BG No, BG Amount,
BG Type, date of issuance, Expiry date, Name of BG Applicant & Beneficiary’s
name and address.

c) In the field 7037 in IFN 760 Form, Vendor’s bank should mention our
unique identifier reference LNTSSC523257178 in all SFMS
confirmation.

d) Vendors should obtain a copy of IFN 760 sent through SFMS by their bank
and attach the same with the Original hardcopy of BG and submit the same
to Shared Services Centre, L&T Construction, TCTC Building 2nd
floor, Mount Ponamalle Road, Manapakkam, Chennai 600089.

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 The details of our bank details to which SFMS confirmation must be sent is as under:
Name of Beneficiary – Larsen &Toubro Limited
Bank Name: ICICI BANK LIMITED
IFSC Code: ICIC0000009, Bank Address: 110, First Floor, Nungambakkam High
Road, Nungambakkam, Chennai – 600034

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